Although the fashion for investment in Bitcoin has slightly faded recently, mainly due to significant drops last year, everything indicates that the boom in this crypto currency has not yet completely ended and we are currently recording the next phase of growth. Until now, those interested in buying tokens could do it without limitations in most countries of the world, but it is slowly changing. A large number of countries, under pressure from the interest groups of the world of finance, introduce restrictions or even a complete ban on trading in cryptocurrencies, including BTC. This is allegedly in our own interest to protect us from possible losses. Let’s see where bitcoin is illegal, where bitcoin is legal and what its legal situation is like in UK.
Countries where bitcoin is legal – fully and partially
Japan is the first country to be mentioned. Which should not surprise anyone, because until recently, the country of the cherry blossom came from the most individual customers, willing to invest their money in BTC. As if that wasn’t enough in 2015, the Japanese government recognized the role of bitcoin as adequate to the money. However, this is not the end – in 2017, bitcoin was officially legalised in this country, giving it the status of a fully-fledged means of payment. Since then, the country has been at the forefront of regulations favouring this currency. Another example of a country quite favourable to bitcoin in its politics is Israel, which has recently grown into a technological power. They have officially allowed it to be used for both investment and purchase. One disadvantage for potential investors is the 25% tax on profits. This is a little big price, but it seems reasonable to legalize profits.
What about the situation in the world’s largest economy? The situation in the United States is quite ambiguous. On the one hand, banks and card issuers are fighting very hard against cryptovolutes, with the possibility of buying them with their credit cards suspended from 2018. Banks sabotaging BTC include JPMorgan, Bank of America and Citigroup. Earlier, Capital One and Discover Financial Services, i.e. two large credit card issuers, withdrew from servicing their purchases with cryptowalut. On the other hand, in September 2018 the American court admitted that cryptovalutes meet the definition of a commodity and fall under the jurisdiction of the American counterpart of the UK Financial Supervision Authority – CFTC. In this way, the legality of the cryptocurrencies and its subordination to the national regulator were somehow accepted..
Countries where bitcoin is not restricted include Brazil, the Czech Republic, Finland and Slovakia. In Switzerland we can even pay taxes using it (in some cities).
Countries where bitcoin is illegal
It is worth describing the second economy in the world – China. Since last year all Chinese exchanges selling BTC have been closed. It is still possible to bypass the blockade of Chinese Internet users, but the government is working on sealing the system. Similar steps are being taken by India, whose government states that BTC is not a legal currency. The first country in the world to ban bitcoin trading is Thailand. A similar situation is taking place in Venezuela.