What Countries are using Bitcoin?
Since, Bitcoins are anonymously transacted there are many chances of fraud and other criminal activities. Transaction of Bitcoin can be done anytime and from anywhere globally. If Bitcoin is used to purchase good things, it can also be used to purchase illegal things. However, there are some countries that have banned legal and then some term it as illegal. But, there is no single country that has accepted Bitcoin as a substitute to its legal currency.
Countries that legalized Bitcoin
There are some countries that have legalised the usage of bitcoins for doing business. But some regulatory laws were enacted by these companies before completely legalising the usage of bitcoins. Though they have agreed to legalize it, but they refuse to identify it as the country’s currency, so it can be said that bitcoin is limited till business purpose only. Mentioned below are the countries that have legalized the transaction for Bitcoin:
The United States
The US has expressed a very positive approach towards Bitcoin and has legalized its usage. There are several government bodies that work towards reducing the illegal usage of Bitcoin. Bitcoin is therefore not considered as a currency but as a money service business. It is placed under Bank secrecy act. Internal revenue service has categorised Bitcoin simply for taxation purposes and not others.
Canada
Similar to the United States, Canada also considered Bitcoin exchange only for money services business. Bitcoin transactions are simply viewed as barter transaction. The income gained is simply business income. As per the Canadian government Bitcoin need to be registered under Financial Transactions and Reports Analysis Centre (FINTRAC). Bitcoin is viewed as commodity by the Canada revenue agency (CRA).
Australia
Australia has also allowed Bitcoins. It considered Bitcoin for better transactions. It also allows mining of Bitcoin.
The European Union
Most of the countries of Europe considered usage of Bitcoin as legal and has also provide the licence. Finland, Belgium, United Kingdom, Germany and Bulgaria also allow exchange of Bitcoins. In Finland and Belgium Bitcoins are provided the exempt status of Value Added Tax (VAT). United Kingdom and Germany or also open to Bitcoins but taxes are charged up on them accordingly. National revenue agency, Bulgaria also brought Bitcoin within its existing laws.
Countries that didn’t approve of Bitcoin
A section of the world legalized the usage of bitcoin, but another section didn’t because of its transparent nature. Countries that didn’t legalize bitcoin stated that since no entity has the control over it, the chances of criminal activities are pretty high. Its decentralized nature would pose threat to the currency of the country. Illicit activities like drug dealing and money laundering would become prevalent due to the usage of bitcoins. Therefore, mentioned below are the countries that did not approve of Bitcoin:
Iceland
The capital control part of the monetary policy prevents the flow of any foreign currency in Iceland. Foreign exchange with bitcoin is completely banned in Iceland. It is so because trading through cryptocurrencies is strictly against the Foreign Exchange Act of the country.
Vietnam
Since the very beginning Vietnam had been against the usage of bitcoin for trade business. It linked the usage of bitcoins to illegal activities like money laundering. After several discussions, the state bank and Vietnamese government declared the usage of bitcoin illegal for both financial institutions and citizens who would hold the bitcoin and trade with it.
Bolivia
The usage of bitcoin and other cryptocurrencies is strictly banned in El Banco Central de Bolivia.
Kyrgyzstan
Exchange of bitcoins as a form of trade is also considered as illegal in Kyrgyzstan.
Ecuador
By a majority of vote, bitcoin and other cryptocurrencies were banned in Ecuador. However, the government is now planning to come up with its own form of cryptocurrency that would help in trade business.
Russia
There is still a doubt regarding the legality of bitcoin in Russia. It is a matter of dispute. The Ministry of finance is planning to pass a law very soon that would put a ban to the usage of bitcoin in Russia.
China
China is the world’s largest bitcoin market. Financial institutions are banned from using bitcoins. However, the individual citizens are allowed to deal with bitcoins. The Bitcoin culture is one most thriving cultures of China.
