Where is Crypto Legal
The digital currency named Bitcoin, with its peer to peer technology, made its debut in the market in the year 2009. But even after more than 10 years (almost 13 years) after its legitimacy is a hot topic of debate between enforcement agencies, regulators and tax authorities. Is trading or investing in Bitcoins or cryptocurrency legal or illegal? The answer to this question depends on the location and venture of the user.
Any kind of central bank, state, institution or country does not issue, endorse or regulate bitcoins or any kind of cryptocurrency. Crypto coins are instead created by a computer-generated process called ‘crypto mining’; it is also a peer-to-peer system and does not have any physical form. Therefore, it offers an expedient way to conduct cross border transactions without any transaction fees or extra charges.
Countries that have made Crypto Coins exchange legal
Bitcoin or any other variant of cryptocurrency can be used to conduct transactions between two or more account holders from anywhere, anytime in the world. So it makes an attractive payment system to conduct illegal activities at the same time. But, bitcoins can be tracked because of the blockchain technology it uses, therefore conducting illegal activities have become a risky venture.
Most of the countries in the world have taken the wait and see approach instead of legalising the buying and selling or using as the payment method of Bitcoins or any other cryptocurrencies. But in June 2021, El Salvador became the first and only country that has recognized Bitcoin (the top leading cryptocurrency in the world) as a legal tender.
United States
The United States is overall optimistic about cryptocurrency. Different government agencies are tasked with finding, reducing and eliminating illegal activities regarding Bitcoins and other crypto coins. Also, different companies and businesses like Microsoft, Dish Network, Subway, etc., are welcoming payments using bitcoins. Also, according to the United States’ Financial Crime Enforcement Network possessing or dealing with Bitcoins comes under the Bank Secrecy Act. And the IRS has stated that Bitcoins will be considered as an asset.
Canada
Similar to its neighbour, the United States, Canada government also kept a Bitcoin-friendly environment, and at the same time, they are keeping cryptocurrency-related crimes in check. Canada Revenue Agency (CRA) has uplifted the status of Bitcoins and made them a commodity. Therefore Bitcoin transactions will be treated as barter transactions.
Except for these two countries, Australia, European Union, and El Salvador are treating Bitcoins and other cryptocurrencies as a commodity or digital currency.
Although the majority of countries are gradually becoming positive on Bitcoins and other crypto coins, countries like Russia, China, South Korea, Qatar, and some Latin American countries are clearly saying no to Bitcoins. Therefore using Bitcoin and other cryptocurrencies still remains in the grey area.
