The legal status of bitcoin (and related crypto instruments) varies substantially from state to state and is still undefined or changing in many of them. Whereas the majority of countries do not make the usage of bitcoin itself illegal, its status as money (or a commodity) varies, with differing regulatory implications. Aug 18, · is banned by governments around the world. For one thing, Bitcoin is often cited as being a threat to traditional monetary systems, with the potential to undermine the control of central banks over the money supply. The knee-jerk reaction to the possibility of a bitcoin ban is “yeah, just try it.” Many believe that a ban would be unconstitutional. Most insist that, even if passed, it would have no impact.
Btc markets bannedFive Reasons Why Governments Won't Ban Bitcoin And Can't Stop Crypto - 24crypto.de
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Help Learn to edit Community portal Recent changes Upload file. Download as PDF Printable version. European Union. Illegal On 20 November the exchange office issued a public statement in which it declared, "The Office des Changes wishes to inform the general public that the transactions via virtual currencies constitute an infringement of the exchange regulations, liable to penalties and fines provided for by [existing laws] in force.
Legal As of 17 January , The Central Bank of Nigeria CBN has passed a circular to inform all Nigerian banks that bank transactions in bitcoin and other virtual currencies have been banned in Nigeria. Legal The Financial Services Commission of Mauritius considers cryptocurrencies to be regulated as a Digital Asset under the Financial Services Act , and while it cautions investors they are not protected by any statutory compensation agreements, they are legal.
Legal While government officials have advised against the use of Bitcoin, there is no legislation against it and it remains fully legal. South Africa. Legal In September the Bank of Namibia issued a position paper on virtual currencies entitled  wherein it declared cryptocurrency exchanges are not allowed and cryptocurrency cannot be accepted as payment for goods and services. Legal The Reserve Bank Of Zimbabwe is sceptical about bitcoin and has not officially permitted its use. United States.
Legal The U. Legal Bitcoin is legal in Mexico as of Legal News reports indicate that bitcoins are being used in the country. Costa Rica. Legal The Costa Rican Central Bank announced that bitcoin and cryptocurrencies are not considered currencies, and are not backed by the government nor laws. Legal The Bank of Jamaica BoJ , the national Central Bank, has publicly declared that it must create opportunities for the exploitation of technologies including cryptocurrencies. Trinidad and Tobago.
Legal Legal. Legal Bitcoins may be considered money, but not legal currency. Illegal Absolute ban. Legal Not regulated, according to a statement by the Central Bank of Brazil concerning cryptocurrencies, but is discouraged because of operational risks. Legal There is no regulation on the use of bitcoins.
Illegal The Ecuadorian government has issued a ban on bitcoin and other digital currencies. Legal Bitcoin is considered a commodity,  not a security or currency under the laws of the Kyrgyz Republic and may be legally mined, bought, sold and traded on a local commodity exchange. Legal On 2 September , a decree legalizing crypto trading — also making it tax-free — and mining in the country came into force, making Uzbekistan a crypto-friendly state. Legal The use of bitcoins is not regulated in Cyprus.
United Arab Emirates. Contradictory information Absolute ban. Legal As of , the Israel Tax Authorities issued a statement saying that bitcoin and other cryptocurrencies would not fall under the legal definition of currency, and neither of that of a financial security, but of a taxable asset.
Saudi Arabia. Legal The government of Lebanon has issued a warning discouraging the use of bitcoin and other similar systems. Legal Bitcoin is not regulated as it is not considered to be electronic money according to the law. Legal Finance minister Arun Jaitley, in his budget speech on 1 February , stated that the government will do everything to discontinue the use of bitcoin and other virtual currencies in India for criminal uses.
China PRC. Hong Kong. Legal On 8 January , the Secretary for Financial Services and the Treasury addressed bitcoin in the Legislative Council stating that "Hong Kong at present has no legislation directly regulating bitcoins and other virtual currencies of [a] similar kind. Legal On 7 March , the Japanese government, in response to a series of questions asked in the National Diet , made a cabinet decision on the legal treatment of bitcoins in the form of answers to the questions.
South Korea. Legal Minors and all foreigners are prohibited from trading cryptocurrencies. Trading or mining in bitcoin is not illegal for common citizens.
The ban by Ecuador makes the most sense of any ban, as they are building a national electronic cash system, so they feel the need to protect their new currency from something clearly superior.
A decentralized currency of finite production that cannot be manipulated by governments or banks might dim the lights on their new program in the eyes of the public, which offers none of those benefits. As of March 19, , the Central Bank of Iceland issued a statement explaining the legal status of digital currency in Iceland.
Purchasing them may violate the Icelandic Foreign Exchange Act, which specifies that Icelandic currency cannot leave the country. A nebulous designation, but it sounds like it is banned, in effect. The reasons are unknown, whether it is based on a perceived risk or just a simple ban by management, but the issue is widespread in India.
Even with the recent legal victory in Ural recently, setting a legal precedent to lift the banning of websites related to bitcoin and other digital currencies, bitcoin is banned in practice, if not officially legal yet.
This sets a bad precedent of government interference for the future, but so far the ban is restricted to this industry by all accounts. According to news reports, the Bank of Thailand ruled bitcoin illegal on July 29, Unless the government exerts strict control over the Internet, individuals will almost certainly be able to download Bitcoin wallet software, run a node, and complete transactions with little effort.
This is evidenced by the fact that there are still a significant number of Bitcoin users in most countries that have already banned it. Likewise, even in countries with strict Internet controls, a variety of tools used to bypass these restrictions could render the effort pointless. After all, it is incredibly difficult to enforce a ban on Bitcoin when practically anybody can access the Bitcoin blockchain via the Blockstream satellite using a relatively inexpensive software-defined radio SDR dongle and an antenna.
There's also the question of whether introducing a ban on Bitcoin would simply incentivize people to obtain it, an argument put forward by economist Saifedean Ammous , author of The Bitcoin Standard. His line of reasoning is that a government clampdown on Bitcoin would illustrate that the government in question is seeking to restrict people's financial freedoms, and would serve to highlight the cryptocurrency's usefulness. Instead, he argued, governments could attempt to undermine the demand for Bitcoin by reducing the economic incentive to use it—by creating a better alternative.
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