Countries Where Bitcoin Is Legal and Illegal
Countries Where Bitcoin Is Legal and Illegal
By Prableen Bajpai Updated December 14, 2021 Reviewed By Erika Rasure Fact Checked By Vikki Velasquez
The peer-to-peer digital currency Bitcoin debuted in 2009, introducing the concept of decentralized finance to the world. While tax authorities, enforcement agencies, and regulators globally are still debating how to control it, many consumers wonder if they can use Bitcoin legally.
Whether or not you can use Bitcoin depends on which country you're in. Learn more about Bitcoin's legal status and how it is—or isn't—regulated by authorities worldwide.
KEY TAKEAWAYS
The cryptocurrency Bitcoin has raised financial concerns for governments worldwide.
Despite its use for buying goods and services, there are still no uniform international laws that regulate Bitcoin.
Many developed countries allow Bitcoin to be used, such as the U.S., Canada, and the U.K.
Several countries have made it illegal to use Bitcoin, including China and Egypt.
Countries Where Bitcoin Is Legal
Bitcoin can be used anonymously to conduct transactions between any account holders worldwide. This has introduced some currency concerns for governments. While some legislators and officials may not support its use because of the lack of control and illicit ties, many have introduced regulations under their country's anti-money laundering and counter-financing of terrorism laws (AML/CFT) in attempts to reduce its use for these purposes.
The Library of Congress (LOC) conducts periodic reviews of countries' stances on Bitcoin and cryptocurrencies. In November 2021, it identified 103 countries whose governments directed their financial regulatory agencies to develop regulations and priorities for financial institutions regarding cryptocurrencies and their use in AML/CFT.
The LOC also identified many countries that allow cryptocurrencies to be used. Here are a few of them.
The United StatesThe U.S. Department of Treasury's Financial Crimes Enforcement Network (FinCEN) has been issuing guidance on Bitcoin since 2013. The Treasury has defined Bitcoin as a convertible currency with an equivalent value in real currency or one that can act as a substitute for real currency.1
The Internal Revenue Service has categorized Bitcoin as property for taxation purposes.2
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