Is Bitcoin Legal?
When dealing with money, you always want to be on the safe side. Is a global peer-to-peer (P2P) currency like Bitcoin is legal? If not, then how can bitcoins be safe if they’re not even legal? Learning about regulators’ opinions, licenses and tax laws can help you put your concerns about Bitcoin to rest.
Is Bitcoin legal?
Bitcoin is the first apolitical form of money in history, which makes it borderless, impossible to control and regulate. Everyone can use bitcoin for P2P transactions, which makes it the most inclusive form of money there is. However, since nothing as decentralized as bitcoin existed before, it is a true headache both to regulators and tyrannical governments.
As such, there is no single answer to the question, “Is Bitcoin legal?” It all depends on where you live - check with your local regulators or legal advisors.
While some governments have outright banned cryptocurrencies, others urge their citizens not to invest in them, as their central banks deem it unsafe. Nevertheless, most countries remain crypto-friendly and strive to adopt an adequate regulatory framework that embraces innovation instead of stifling it.
The problem with banning decentralized cryptocurrency like bitcoin from a geographic region is that it is very difficult to enforce such ban. No one can stop people from accessing the internet and managing digital currency transactions, so institutions can only work to dissuade people from using it applying fear and threats. Essentially, Bitcoins decentralized protocol makes it a truly global currency regardless of geographic restrictions and regulations.
Even so, that is the case tyrannical governments. It is entirely legal to send, receive, mine, and use bitcoin is most countries in the world.
See a complete list of countries where bitcoin is legal or banned here.
Is Bitcoin a legal tender?
However, free usage of bitcoin doesn’t mean it is legal tender. So far, no country has gone as far as proclaiming bitcoin a national currency, even though the situation looks promising in countries like Japan and Switzerland.
So how can it be legal to use bitcoin if it is not a legal tender?
Well, even though cryptocurrencies are not legal tender does not mean it can’t be used for payments. Bitcoin’s use as a payment tool is completely discretionary.
Bitcoin taxation is another issue you might want to look into. Again, there is no definitive answer to how is Bitcoin taxed, but many countries have already proposed their own taxation laws in regards to crypto.
Check your local laws and follow our articles on crypto regulation to say informed about the most recent developments.