Bitcoin is the word nowadays. However is Bitcoin legal or illegal? Today, we decided to go over the top countries where Bitcoin is legal. You can also learn about the top countries where Bitcoin is illegal.
AtoZForex – The digital currency Bitcoin is now at the peak of its popularity. Millions of users enjoy a variety of advantages provided by this cryptocurrency. Despite the fact that there are more than 500 existent digital currencies, Bitcoin is the most known and trusted one. As a matter of fact, Bitcoin is the leader among the top 10 cryptocurrencies in 2017.
Bitcoin in modern world
Where this currency is present in the market for quite some time right now, people are still exploring the technology. This phenomenon appeared in the market back in 2009. Bitcoin is a great mean of the cross-border transaction. Moreover, you can exchange this digital currency for real currencies online.
Bitcoin is an independent cryptocurrency that is not linked to any government. As a matter of fact, Bitcoin is not issued and regulated by any of the central banks. The creation process of this digital currency involves mining.
However, one question is always on the lips of the traders – what is the legal status of Bitcoin? Well, it depends on your location. Some countries allow transactions in Bitcoin and some don’t. Let’s sort this issue out together. In this article, we will go over the top countries where Bitcoin is legal.
Top countries where Bitcoin is legal
So, let's outline the top countries where bitcoin is legal.
Bitcoin is legal in the United States, partially
The US has adopted a positive stance in regards to Bitcoin. Meanwhile, it also has ordered several government bodies to assure that transactions in Bitcoin are carried out only in legal terms.
In fact, the US Department of Treasury’s Financial Crimes Enforcement Network (FinCEN) has been issued special guidance on the digital currency since 2013. It has classified the Bitcoin as a money services business (MSB). Moreover, the Bitcoin has made it to the US derivatives markets.
Bitcoin is legal in Canada
Canada’s relationship with Bitcoin is similar to that of the US. The country’s Canada Revenue Agency (CRA) has classified this digital currency as a commodity. This implies that transactions in Bitcoin are perceived as barter transactions. The income generates by these transactions is considered to be the business income. The taxation of Bitcoin is depending on its nature.
Bitcoin exchanges in Canada are also subject to the anti-money laundering (AML) laws. Moreover, the exchanges are obliged to register with Financial Transactions and Reports Analysis Centre (FINTRAC).
Australia calls Bitcoin a non-harmful mean of the transaction
Australia continues our list of top countries where Bitcoin is legal. Australian authorities perceive Bitcoin as a non-harmful mean of the transaction, thus allowing trading, mining and buying Bitcoin across the country. The Australian Taxation Office (ATO) is classifying Bitcoin transactions as a barter ones. Therefore, they are subject to related taxation law.
Bitcoin in Europe
Europe and the EU have been following the developments in the Bitcoin market for a long time. However, they still did not issue any specific united framework for the bitcoin and cryptocurrency regulation. Thus, every EU nation has developed its own vision in relation to the digital currency. Some of the countries are favoring Bitcoin presence, where others are indifferent or issuing warnings.
- Bitcoin in Belguim: The Federal Public Service Finance has also given Bitcoin a value-added tax exempt status.
- Bitcoin in Cyprus: Authorities adopted a neutral stance in relation to Bitcoin. The island legislature does not have any regulations or controls related to the digital currency.
- Bitcoin in the UK: The UK Financial Conduct Authority is favoring the cryptocurrency and plans to advance its regulatory framework to make it more Bitcoin-friendly.
- Bitcoin in Switzerland: The Swiss are now moving towards regulation of Bitcoin slowly and steadily. The government has classified the digital currency as a foreign currency.
- Bitcoin in Italy: Italian government believes that certain regulations and oversight is necessary in relation to Bitcoin transactions. This is done in order to prevent the use of digital currencies in illegal activities.
- Bitcoin in the Netherlands: The Dutch have granted Bitcoin transaction a status of barter transactions. This implies that it does not need to follow specific licensing or compliance rules. The Dutch Finance Minister has stated: “Bitcoin is not a financial product as defined by law, purchase or sale of bitcoins is not a financial service either, so the financial services act does not apply”.
- Bitcoin in France: The French have set onerous regulation and a form of Green listing on the Bitcoin sector. This implies that the French government is claiming that it is necessary that any exchange or wallet must hold data about the user, which is not a feature of Bitcoin.
Bitcoin in Singapore
The government of Singapore has declared Bitcoin as a good to buy another, thus determining the taxation need. The Monetary Authority of Singapore also obliged exchanges and ATM provides to Green list, similar to the French Bitcoin law.
Bitcoin in Japan
Bitcoin in Japan is a big trend. Japanese government has a positive stance in relation to the Digital currency, in spite of the Mt. Gox Bitcoin's $460 Million Disaster. Back in March 2014, Japanese authorities ruled out that Bitcoin must be self-regulated. Presently, the country is striving to ensure the safest transactions in Bitcoin.
Bitcoin in Israel
Bitcoin in Israel is also gaining momentum. At the moment, the Israeli government is seeking introduction of the tax on Bitcoin.
Do you know any other countries that would fit in our list of Top countries where Bitcoin is legal? Think we missed something? Let us know in the comments section below.