Countries where crypto is legal (and illegal)

Countries where crypto is legal (and illegal)

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Interest in cryptocurrency has increased in the past few years. Pew Research Center Estimates 9 out of 10 Americans have heard of cryptocurrency. Who is the notorious Matt Damon? Super Bowl ad According to President Joe Biden’s March executive order asking the government to consider the risks posed by digital currencies, crypto is a hotter topic now than ever.

We have spent dozens of hours compiling the most relevant and useful information regarding cryptocurrency and its legal status around the world. The feasibility, legality, and even the practicality of cryptocurrencies are still hotly debated. As an increasing number of countries are becoming more and more accepting of cryptocurrencies, albeit to varying degrees, a deeper understanding of the legal status of cryptocurrencies where you live will help you make the right decisions when considering whether this asset is right for you. Before we take a look at the legal status of cryptocurrencies around the world, let’s start with their beginnings.

A Brief History of Cryptocurrency

In order to better understand where we are going, we need to know where we have been. The following timeline will give you some context and show you how cryptocurrency (or at least the concept of digital money) has been around for longer than some of us have been alive.

  • The concept of electronic money dates back to 1983, when it was proposed by computer scientist David Chum.
  • In 1989 Chaum attempted to make his vision a reality by founding DigiCash, the first company to use cryptographic protocols, such as public and private keys, to complete transactions electronically. DigiCash has never been able to grow its user base, and in 1998 it declared bankruptcy, being sold for assets in 2002.
  • Bitcoin has been in use since 2009 and is the oldest decentralized cryptocurrency, setting the standard for cryptocurrencies as we know them.
  • In August 2014, the UK commissioned a study on cryptocurrency and the role it could play in its economy, focusing on regulation and consumer protection.
  • In June 2021, El Salvador became The first country to adopt Bitcoin as a legal currencyalthough its de facto adoption by the people was a challenge to the Salvadoran government.
  • In September 2021, China declared all cryptocurrencies illegal.
  • In March 2022, Biden signed an executive order calling for measures to ensure the protection of consumers and investors, as well as exploring the possibility of a US central bank digital currency.

Legal status by country

It is easiest to name the countries where crypto is completely illegal. according to US Library of CongressAs of November 2021, nine countries have completely banned cryptocurrency. These countries are Algeria, Bangladesh, China, Egypt, Iraq, Morocco, Nepal, Qatar and Tunisia. Another 42 countries have an implicit ban on the asset, generally by not allowing financial institutions in the particular country to deal with crypto companies as clients.

In general, wherever encryption is legal, it is subject to the following:

  • Anti-Money Laundering (AML) Regulations: This allows the government to monitor cryptocurrency trading operations to prevent illicit financial activity.
  • Taxes: Cryptocurrency taxes vary from country to country. For example, in the United States, the IRS charges cryptocurrencies as property, not income. However, many countries in the European Union tax it as income, with no value-added tax (VAT) applied. VAT is a tax on goods and services, hence the contrast to how it is treated in the United States
Jurisdiction Official ban? Implicit ban? Applying tax laws? Do anti-money laundering and terrorist financing laws apply?
Algeria yes number number yes
the two seas number yes Unavailable yes
Bangladesh yes number There is no information yes
Boys number yes There is no information There is no information
Bolivia number yes number number
Burkina Faso number yes There is no information There is no information
Burundi number yes There is no information There is no information
Cameroon number yes There is no information There is no information
Central African Republic number yes There is no information There is no information
Chad number yes There is no information There is no information
China yes number unclear unclear
Côte d’Ivoire number yes There is no information There is no information
Democratic Republic of the Congo number yes There is no information There is no information
Ecuador number yes number number
Egypt yes number number yes
Gabon number yes There is no information There is no information
Georgia number yes yes number
Guyana number yes number number
Indonesia number yes number number
Iraq yes number number yes
Jordan number yes number number
Kazakhstan number yes number number
Kuwait number yes Unavailable yes
Lebanon number yes number yes
Lesotho number yes number yes
Libya number yes number yes
Macau number yes unclear unclear
the moldive Islands number yes There is no information There is no information
Financial number yes There is no information There is no information
Moldova number yes number number
Morocco yes number number yes
Namibia number yes number yes
Nepal yes number There is no information There is no information
Niger number yes There is no information There is no information
Nigeria number yes number number
Sultanate of Oman number yes Unavailable yes
Pakistan number yes There is no information number
Palau number yes number number
Qatar yes number number yes
Republic of the Congo number yes There is no information There is no information
Kingdom Saudi Arabia number yes Unavailable yes
Senegal number yes There is no information There is no information
Tajikistan number yes number number
Tanzania number yes number number
Togo number yes There is no information There is no information
Tunisia yes number number yes
turkey number yes VAT No
Other Tax Laws: Yes
yes
Turkmenistan number yes number number
The United Arab Emirates number yes yes yes

Crypto as a daily currency

Daily purchases with Bitcoin are more popular than ever. Several methods facilitate this, including:

  • Currency Mapa website that allows you to find sites near you that accept crypto directly as payment
  • Crypto debit cards, which allow you to use cyrpto to pay anywhere a Visa or Mastercard is accepted, done by converting the cryptocurrency in your wallet into dollars upon purchase
  • sites like Petreville And the CoinGatewhich allows you to buy gift cards using your crypto

All of these offer convenient ways to use cryptocurrencies as cash, but if what you’re looking for is a quick way to buy cryptocurrencies with your money, you’ll be glad to know, according to ATM Radar for CoinsThere are over 38,000 crypto ATMs around the world.

last thoughts

All emerging technologies inevitably go through some growing pains. The adoption of any new system carries the same relationship between risk and reward that applies to investments. With cryptocurrency, you get this relationship twice as much, as it is a relatively new technology and investment. As with new technology, education is the cornerstone of making sound decisions.

We hope that the facts in this post will help you learn more about cryptocurrency as a whole and put you on the path to deciding whether or not cryptocurrency is right for you. If you enjoyed what you read here – and I hope so, if you made it this far – please consider sharing this with your friends and family.

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