Is Bitcoin Legal?

Is Bitcoin legal? The short answer is most likely yes — but it depends on where you are and what you do with it.

The debate surrounding the legality of Bitcoin and cryptocurrencies is picking up. More lawmakers talk about it now, with the spread of digital currencies. Usually, people are allowed to trade with the legal tender in their country, but not create money themselves.

Bitcoin, with its miners and verification system, introduces a problem for lawmakers. Given that Bitcoin is a currency separate from the national money, Bitcoin mining is technically not counterfeiting.

Bitcoin isn’t counterfeit, as it’s not trying to pass off as another currency. Still, lack of proper regulation still makes Bitcoin somewhat of a grey area. Trying to fit Bitcoin trading into the box of currency legislation has not always been successful.

Given that Bitcoin is still in its infancy, relatively speaking, the laws are bound to change. We do know some of the rules and regulations, however, and will continue to update this article as different countries progress in their legislation.

Is using Bitcoin illegal?

Whether or not Bitcoin is legal depends on what it is being used for. The Silk Road was a marketplace on the Dark Web where people could purchase illegal goods for Bitcoin while remaining completely anonymous. However, this could be done and is done, using fiat currency. Spending your Bitcoins on legal products and services is perfectly legal in the US. At least for now, according to U.S. Treasury Department’s Financial Crimes Enforcement Network.

Is mining Bitcoin legal?

It’s legal to own and run a Bitcoin mining rig in most places. However, consider if it’s financially viable where you live). Certain countries have laws that may restrict your ability to trade. You might have to check what you can do with the yields on exchanges for fiat money. Furthermore, Bitcoin mining might be a problem if you’re sharing your energy bill with other people. If they aren’t aware of your mining activities, then they might be surprised when the bill arrives.

Is Bitcoin taxable?

The IRS in the US sees Bitcoin and other tokens as taxable property like bonds and stocks. The laws differ from country to country. A good rule of thumb is always to pay taxes on your profits. If you’re earning money from trading or mining, then it is considered a taxable income or capital gains in most countries.

Countries where Bitcoin is illegal

Algeria

Bangladesh

Bolivia

Cambodia

China

Colombia

Ecuador

Egypt

Indonesia

Iran

Morocco

Nepal

Pakistan

Saudi Arabia

Taiwan

Countries where Bitcoin is legal

Argentina

Australia New Zealand

Austria

Belarus

Belgium

Bosnia and Herzegovina

Brazil

Bulgaria

Chile

Costa Rica

Croatia

Cyprus

Czech Republic

Denmark

Estonia

Finland

France

Germany

Greece

Hong Kong

Hungary

Iceland

Ireland

Israel

Italy

Jamaica

Japan

Kyrgyzstan

Lebanon

Lithuania

Luxembourg

Macedonia

Malaysia

Malta

Mexico

Namibia

Netherlands

Nicaragua

Nigeria

Norway

Philippines

Poland

Portugal

Romania

Russia

Singapore

Slovakia

Slovenia

South Africa

South Korea

Spain

Sweden

Switzerland

Trinidad and Tobago

Turkey

Ukraine

United Kingdom

United States of America

Uzbekistan

Venezuela

Zimbabwe

Countries where Bitcoin is restricted

Canada (banking ban)

India (banking ban)

Jordan (banking ban)

Thailand (banking ban)

United Arab Emirates (contradictory information)

Vietnam (legal to hold but illegal as payment)