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Bitcoin Quiz 1
Is Bitcoin Legal?
When it comes to the topic of regulation, Bitcoin is seen as both legal and illegal in many places.
At the same time, Bitcoin is attracting a lot of attention across the globe. Since it is borderless, anonymous and a type of currency which has no central authority, a lot of regulators have put their hands on Bitcoin.
Knowing that it is hard to avoid the topic of Bitcoin and using it legally, it is worth noting that it decentralized nature ensures that no one can actually stop you from using it. In other words, thanks to its decentralized nature, Bitcoin can be used anywhere.
Is Bitcoin Legal Everywhere In The World?
However, countries have been stopping people from using Bitcoin and have been restricting the use of Bitcoin within their borders. Some countries have made Bitcoin entirely illegal – India, Bolivia, and Ecuador are one of them. At the same time, some of the countries have also issued their own digital currencies too.
Countries like China have shifted their view towards Bitcoin, banning and unbanning the currency many times. China has restricted digital currencies for private use only in 2018 – prohibiting them from handling any cryptocurrency transactions at all.
Countries like the US and the UK show a great interest in this new technology. Other countries are at least taking into consideration the possibilities Bitcoin offers. But, some are just refusing to even research and find ways to be implemented in their system. These governments believe that cryptocurrencies are a threat to their national currencies. There are countries that find it easier to make cryptocurrencies illegal in general, bitcoin in particular so let’s find out where those places are.
The central bank of Bolivia made a statement that it is illegal to use any other currency that is not controlled and issued by a government. There is no need to discuss further, the statement says it all.
Ecuador may be the only country with a reasonable explanation of its ban on Bitcoin. They are trying to create a nationwide e-cash system so they are trying to protect their national currency. Cryptocurrencies can clearly interfere with this plan, so it’s better to just make them illegal.
At the end of the day, it is safe to say that a lot of countries still do not have explicit systems to restrict, regulate or ban Bitcoin as a cryptocurrency.
Because it is decentralized and anonymous, trading and using Bitcoin puts the users in advantage – in the same way as it puts the governments at disadvantage of being able to control the use of the cryptocurrency.
The reality is that most countries are still analyzing ways to properly regulate this digital currency. Anyways, it is legal to send, receive, mine, and generally use Bitcoin in most countries around the world. Here is a full list of the legality of Bitcoin by country or territory.