Bitcoin is the new buzzword. But, as the investment in bitcoins is growing, few people and countries worldwide are still skeptical about the legality aspect of bitcoins. You can check the list of states that have legalized the use of bitcoins at bitcoin union.
Different countries present different views about bitcoins, and thus, people worldwide get confused about whether bitcoins are legal or not. This article will help you understand the legal aspect of bitcoins to make a wise decision whether you want to make an investment in bitcoins.
Although few countries have declared bitcoin to be legal currency, it does not still mean that bitcoin is a legal tender. Till today, Japan is the only country that has given the designation of legal tender to bitcoins. Even if bitcoin is not given legal tender status in a few states, it does not mean that it can’t be used as currency in different countries. Those countries that have not given the legal status to bitcoins represent that they won’t provide protection to consumers or merchants in case of bitcoin fraud.
Even though bitcoin is not acknowledged as the legal tender, it is still used for different transactions in different countries. The universal applicability and zero conversion cost of bitcoin make it one of the best digital currencies at present.
Different countries and organizations find ways to get to know about bitcoins and give it the legality it deserves. As businesses all around the world are using bitcoins, and they are looking at the legalization aspect of bitcoin.
Other jurisdictions are also mulling steps for the legalization of bitcoins. Smallest countries like Zimbabwe are finding it challenging to pronounce bitcoin as legal currency. The largest institutions and organizations like the European Commission believe that bitcoins are not mature enough to get legal status yet.
Many countries do not give legal status to bitcoins, as their central banks are the watchdo when it comes to any type of currency. Although bitcoin’s use and transaction do not need any kind of regulatory watchdog, countries around the world are not sure to accept this decentralized process and approach of bitcoins.
Another major issue surrounding bitcoins is whether each and every country should check and regulate the legality of bitcoins or should it be left to an international body. Thus, no consensus has been reached when it comes to the legal aspect of bitcoins.
Let’s look at the legal status of bitcoins in different countries around the globe:
The government in Australia is supportive of bitcoin. In the year 2017, they have declared bitcoins and the blockchain technology to be legal in Australia. In addition to this, bitcoins in Australia are treated as assets subjected to Capital Gains Tax.
In Argentina, bitcoins are not considered legal as their central government does not issue them.
Bangladesh has not legalized the use of bitcoin. In fact, the use of bitcoin in Bangladesh is a punishable offense.
Canada was one of the first few nations that claimed that bitcoins could be legalized. As per a bill in 2014, the Canadian government said that virtual currencies could be designated as money service businesses. The law has yet not confirmed whether bitcoins are legal or not.
China has not entirely banned bitcoins, but it has cracked done some major bitcoin exchanges working in China.
India has officially declared specific official warnings on the use of bitcoins. In the year 2017, the finance ministry announced that bitcoin is not a legal tender in India.
Japan was one of the first few nations that declared that bitcoins were legal, and businesses can use bitcoins for different transactions.
The US is plagued by different fragmented regulatory systems. Some states in the USA are overlooking bitcoin more harshly than others. But, bitcoins are not declared to be illegal in the US.
When it comes to the use of bitcoins it is not entirely illegal. Instead, different countries have different versions when it comes to the legality aspect of bitcoin. Thus, before you plan to invest bitcoins, try to get the legal part before making an investment.