The legal status of cryptocurrencies varies by country, and the landscape is constantly evolving as nations decide how to approach this new form of currency and the technologies behind it. Here you find out In which country are cryptocurrencies Legal or Illegal.
Are cryptocurrencies legal in European Union?
The European Union has not enacted specific legislation regarding the status of bitcoin as a currency, but it has clarified that VAT/GST does not apply to conversions between traditional (fiat) currency and bitcoin.
However, VAT/GST and other taxes, such as income tax, still apply to transactions involving the use of bitcoins for goods and services.
In October 2015, the Court of Justice of the European Union ruled that exchanging traditional currencies for units of the ‘bitcoin’ virtual currency is exempt from VAT. The ruling stated that member states must exempt transactions related to ‘currency, bank notes, and coins used as legal tender,’ thus recognizing bitcoin as a currency rather than a commodity.
The European Central Bank considers bitcoin a convertible decentralized virtual currency. While traditional financial sector regulations do not directly apply to bitcoin due to its decentralized nature, some in the EU have suggested extending existing rules to cover bitcoin and bitcoin-related companies.
In 2016, the European Parliament proposed the establishment of a taskforce to monitor virtual currencies to combat money laundering and terrorism, a proposal that was sent to the European Commission for consideration.
In January 2022, Erik Thedéen, vice-chair of the European Securities and Markets Authority, called for an EU ban on proof-of-work crypto-mining in favor of the proof-of-stake model to address climate change concerns.
Are cryptocurrencies legal in Africa
Are Cryptocurrencies Legal in Algeria?
Based on the official record (28 December 2017): Art. 117. — Transactions involving virtual currencies—including their purchase, sale, use, and possession—are forbidden. Virtual currencies refer to digital assets used online and lack tangible forms like coins or notes, and are not transacted through cheques or credit cards. Violations of this article will be subject to the applicable laws and penalties.
Are Cryptocurrencies Legal in Egypt?
– No, It’s Illegal.
Egypt’s Dar al-Ifta, the foremost Islamic legal authority in Egypt, has declared that trading in bitcoin is haram (forbidden according to Islamic law).
Are Cryptocurrencies Legal in Morocco?
On November 20, 2017, the exchange office released a statement proclaiming, “The Office des Changes advises the public that virtual currency transactions violate exchange rules, subjecting violators to potential penalties under the current laws.”
The subsequent day, a joint statement was issued by the Ministry of Economy and Finance, Bank Al-Maghrib, and the Moroccan Capital Market Authority (AMMC). This statement cautioned the public about the risks associated with bitcoin, citing its potential use “in illegal or criminal activities, such as money laundering and financing of terrorism.”
On December 19, 2017, during the final quarterly meeting of Bank Al-Maghrib for that year, Abdellatif Jouahri, the bank’s governor, commented in a press conference in Rabat. He highlighted that bitcoin should not be viewed as a currency but rather a “financial asset”. Furthermore, he expressed concerns about its potential risks and emphasized the need for measures to ensure consumer safety.
Are Cryptocurrencies Legal in Nigeria?
On January 17, 2017, the Central Bank of Nigeria (CBN) issued a circular notifying all Nigerian banks of the prohibition of transactions involving bitcoin and other digital currencies in Nigeria.
Subsequently, a joint committee formed by the CBN and the Nigeria Deposit Insurance Corporation (NDIC) was tasked with examining the potential adoption of the underlying technology of bitcoin and other digital currencies, known as blockchain. While the committee has presented its findings, several sub-committees continue to explore the subject, as noted by Mr. ‘Dipo Fatokun, the Director of the Banking & Payments System Department at CBN.
Further emphasizing its stance, on February 5, 2021, the CBN released another circular. This reminded financial institutions in Nigeria that in line with their 2017 notice, any dealings in or facilitating payments for cryptocurrencies are still forbidden and would lead to significant penalties.
Are Cryptocurrencies Legal in Tanzania?
The Bank of Tanzania hasn’t formally prohibited the use of cryptocurrency, but it strongly recommends against its use, emphasizing that the Tanzanian shilling remains the sole recognized legal tender.
Are Cryptocurrencies Legal in Central African Republic?
On April 22, 2022, the Central African Republic’s parliament approved a cryptocurrency law, and by April 27, Bitcoin was formally recognized as a legal tender in the nation. However, in April 2023, the CAR decided to rescind its decision, revoking Bitcoin’s status as legal tender.
Are Cryptocurrencies Legal in Mauritius?
The Financial Services Commission in Mauritius classifies cryptocurrencies as Digital Assets under the Financial Services Act of 2007. While it alerts investors that they aren’t covered by any statutory compensation schemes, cryptocurrencies remain lawful in the country.
Are Cryptocurrencies Legal in Angola?
Although government authorities have cautioned against using bitcoin, there are no laws prohibiting its use, and it remains entirely legal.
Are Cryptocurrencies Legal in South Africa?
In December 2014, the Reserve Bank of South Africa released a position paper on virtual currencies, stating that they possess “no legal status or regulatory framework.” Additionally, the South African Revenue Service categorized bitcoin as an intangible asset.
Are Cryptocurrencies Legal in Namibia?
In September 2017, the Bank of Namibia published a position paper on virtual currencies. In this document, it specified that cryptocurrency exchanges are prohibited, and cryptocurrencies cannot be used as payment for goods or services.
Are Cryptocurrencies Legal in Zimbabwe?
The Reserve Bank of Zimbabwe prohibited the use of cryptocurrency within banking. Yet, this ban was overturned by a High Court Order. Following this, the Reserve Bank submitted an objection notice to the Court. As of now, there is no available information indicating a final decision on the issue.
Are Cryptocurrencies Legal in North America
Are Cryptocurrencies Legal in Canada?
Companies involved in virtual currencies are required to register with Canada’s financial intelligence unit, the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC). They must also set up compliance programs, maintain necessary records, report any suspicious or terrorist-linked activities, and ascertain if their clientele includes “politically exposed persons.” This legislation also impacts non-Canadian virtual currency platforms that cater to Canadian clients. Banks are prohibited from opening or maintaining accounts, or having correspondent banking relationships with virtual currency entities that aren’t registered with FINTRAC. Digital currency dealers are overseen as money services businesses. In Quebec, the Autorité des marchés financiers (AMF), the province’s financial watchdog, stated that certain bitcoin-related operations, like exchanges and ATMs, fall under its existing MSB Act regulations. By April 2018, the Bank of Montreal (BMO) declared a prohibition for its credit and debit cardholders on cryptocurrency transactions. This move mirrors a similar decision made earlier by the Toronto-Dominion Bank (TD) in Canada.
Are Cryptocurrencies Legal in United States?
In 2013, the U.S. Treasury identified bitcoin as a decentralized convertible virtual currency. By September 2015, the Commodity Futures Trading Commission (CFTC) labeled bitcoin a commodity, while the Internal Revenue Service (IRS) considers it taxable as property.
The notion of bitcoin was referenced in a U.S. Supreme Court opinion during the Wisconsin Central Ltd. v. United States case on 21 June 2018. Within this opinion, the Supreme Court highlighted the evolving nature of money, speculating that future compensations might be in Bitcoin or another cryptocurrency.
Financial Crimes Enforcement Network (FinCEN) Director Kenneth Blanco stated in 2018 that money services entities, encompassing cryptocurrency exchanges, money transmitters, and anonymization services (often called “mixers” or “tumblers”), if conducting significant business in the U.S., must:
1. Register with U.S. FinCEN as a money services enterprise.
2. Implement and uphold an anti-money laundering (AML) program.
3. Maintain suitable records and submit required reports to FinCEN, including Suspicious Activity Reports (SARs) and Currency Transaction Reports (CTRs).
By August 2018, FinCEN was receiving over 1,500 cryptocurrency-related SARs monthly. Moreover, 17 other nations have instituted analogous AML regulations.
In a 2016 legal case concerning an individual managing an unauthorized money transmitting operation, the U.S. District Court for the Southern District of New York determined that “Bitcoins are, in essence, money. They can be accepted as payment for goods or services, or purchased directly from exchanges using a bank account, serving as both a medium of exchange and a payment method.”
Are Cryptocurrencies Legal in Mexico?
As of 2017, Bitcoin was permitted in Mexico, and there were intentions to classify it as a virtual asset under the FinTech Law.
Are Cryptocurrencies Legal in Costa Rica?
In October 2017, the Central Bank of Costa Rica declared that Bitcoin and other cryptocurrencies aren’t recognized as currencies, lack legal backing, and can’t be integrated into Costa Rica’s national payment infrastructure. The Bank underscored that individuals opting to use cryptocurrencies do so at their discretion and risk.
Are Cryptocurrencies Legal in El Salvador?
The Bitcoin Law was enacted on 8 June 2021, establishing Bitcoin as legal tender in the country. This law came into effect on 7 September 2021.
A month after its implementation, more Salvadorans possessed bitcoin wallets compared to conventional bank accounts. The leading bitcoin wallet, the government-endorsed Chivo wallet, was downloaded by around three million individuals, nearly 46% of the nation’s populace. Yet, a mere 12% of Salvadoran consumers have transacted using the cryptocurrency, and a significant 93% of businesses indicated they hadn’t received any bitcoin payments in the initial month.
Are Cryptocurrencies Legal in Nicaragua?
Up until 2014, the government hadn’t established any regulations concerning Bitcoin, and the central bank had not provided any directives or guidelines. In January 2014, El Nuevo Diario highlighted an incident where an American banker utilized bitcoin to acquire property in the nation.
Are Cryptocurrencies Legal in Jamaica?
In 2017, the Bank of Jamaica (BoJ) expressed its intent to pave the way for harnessing cryptocurrency technology. The BoJ announced plans for an initiative aimed at raising awareness about cryptocurrencies, as a step towards enhancing overall financial literacy.
Are Cryptocurrencies Legal in Trinidad and Tobago?
In 2018, the Central Bank of Trinidad and Tobago conveyed its openness to collaborate with Fintech and virtual currency providers. However, it also warned of the risks associated with virtual currencies, including their potential use in illegal activities and the absence of insurance and regulatory remedies in the event of issues.
Are Cryptocurrencies Legal in South America
Are Cryptocurrencies Legal in Argentina?
While bitcoins might be viewed as money in Argentina, they aren’t recognized as legal tender. Under Argentina’s Civil Code, a bitcoin can be categorized as either a good or an item, and its transactions might fall under the goods sale regulations of the Civil Code. On May 5, 2022, the Central Bank of Argentina prohibited financial institutions from aiding any transactions related to cryptocurrency.
Are Cryptocurrencies Legal in Bolivia?
In 2014, the Central Bank of Bolivia implemented a complete prohibition on bitcoin and any other currency that isn’t overseen by a nation or economic region.
Are Cryptocurrencies Legal in Brazil?
In December 2022, Brazil introduced a licensing system for virtual asset service providers, aiming to legitimize cryptocurrency as a means of payment. While there was a regulatory framework based on the Central Bank of Brazil’s 2014 statement, the use of cryptocurrencies had been advised against due to operational risks. The Central Bank of Brazil reaffirmed this unregulated and cautionary stance in November 2017. On 7 May 2019, the Special Department of Federal Revenue of Brazil released guidelines on the taxation of cryptocurrencies in the nation.
Are Cryptocurrencies Legal in Chile?
There is no regulation on the use of bitcoins
Are Cryptocurrencies Legal in Colombia?
Superintendencia Financiera instructed financial institutions that they are prohibited from handling bitcoin transactions and cannot “safeguard, invest, act as intermediaries, or oversee virtual money operations.
Are Cryptocurrencies Legal in Ecuador?
Article 98 of the Organic Code on Monetary and Financial Matters prohibits the use of any cryptocurrency as a method of payment, with penalties that encompass the confiscation of cryptocurrencies and any goods procured with them. As of December 25, 2021, no individual has faced criminal charges for these reasons. The Ecuadorian financial framework rigorously obstructs any transactions related to cryptocurrency. A statement from the Central Bank of Ecuador on January 8, 2018, clarified that buying and selling bitcoins is permitted.
Are Cryptocurrencies Legal in Venezuela?
In January 2018, Carlos Vargas, the government’s cryptocurrency superintendent, stated, “The activity is now entirely lawful. We’ve liaised with the Supreme Court to ensure individuals who faced confiscations and arrests in past years will have their charges dropped.” In March 2023, due to concerns related to corruption and misappropriation, regulatory bodies imposed a provisional prohibition on all cryptocurrency mining. As of June, this restriction was still active.
Are Cryptocurrencies Legal in Asia
Are Cryptocurrencies Legal in Afghanistan?
In August 2022 Taliban banned trading in cryptocurrencies.
Are Cryptocurrencies Legal in Kyrgyzstan?
In the Kyrgyz Republic, Bitcoin is classified as a commodity rather than a security or currency. It can be legally mined, purchased, sold, and exchanged on local commodity markets. However, its usage as a medium of exchange for domestic transactions is limited.
Are Cryptocurrencies Legal in Uzbekistan?
On 2 September 2018, Uzbekistan enacted a decree that legalized and rendered tax-free crypto trading and mining, positioning the country as a favorable environment for cryptocurrencies.
Are Cryptocurrencies Legal in United Arab Emirates?
The Central Bank has yet to recognize cryptocurrencies as an acceptable payment method, as stated by the Library of Congress. However, they are developing regulations for retail payment services that introduce the concept of tokens usable for transactions.
In a landmark move on 13 February 2018, Regal RA DMCC, a Dubai-based gold trader, became the Middle East’s first company licensed to trade cryptocurrencies, as announced by the Dubai Multi Commodities Centre (DMCC). The DMCC website highlights its crypto “cold storage” capabilities, noting that the license is solely for proprietary trading in crypto commodities, without permitting any initial coin offerings or the establishment of any exchanges.
By November 2020, the Securities and Commodities Authority introduced “The Chairman of the Authority’s Board of Directors’ Decision No. (23/Chairman) of 2020 Concerning Crypto Assets Activities Regulation.” This decree set forth a regulatory landscape for offering, issuing, listing, and trading crypto assets. It mandates that crypto asset providers operate onshore within the UAE.
Are Cryptocurrencies Legal in Israel?
In 2017, the Israel Tax Authorities declared that bitcoin and other cryptocurrencies do not qualify as currencies or financial securities, but are considered taxable assets. Sellers are subject to a 25% capital gains tax upon selling a bitcoin. Additionally, those involved in mining or trading bitcoins are categorized as businesses, making them liable for corporate income tax and a 17% VAT.
Are Cryptocurrencies Legal in Saudi Arabia?
Financial institutions are cautioned against using bitcoin. The Saudi Central Bank (SAMA) has emphasized the high risks associated with bitcoin, noting that users and dealers will not receive any protections or rights.
Are Cryptocurrencies Legal in Jordan?
The Jordanian government has cautioned against the use of bitcoin and comparable systems. The Central Bank of Jordan has forbidden banks, currency exchange platforms, financial institutions, and payment services from engaging in bitcoin or other digital currency transactions. Despite these warnings and the fact that bitcoins aren’t considered legal tender, they are still accepted by some small businesses and vendors.
Are Cryptocurrencies Legal in Lebanon?
The Lebanese government has cautioned against the use of bitcoin and comparable digital systems.
Are Cryptocurrencies Legal in Turkey?
On 16 April 2021, the Central Bank of the Republic of Turkey introduced a rule prohibiting the use of cryptocurrencies, including bitcoin and other digital assets utilizing distributed ledger technology, for direct or indirect payment for goods and services. This decision, effective from 30 April 2021, was made due to potential irreversible harm and transaction risks.
Are Cryptocurrencies Legal in Qatar?
Banks in Qatar are prohibited from trading in bitcoin because of concerns related to financial misconduct and security breaches. Furthermore, cryptocurrencies are not permitted within the Qatar Financial Centre.
Are Cryptocurrencies Legal in Iran?
The Central Bank of the Islamic Republic of Iran prohibited financial institutions from processing bitcoin transactions in April 2018. This decision was based on concerns about money laundering and the potential financing of terrorism, barring the nation’s banks and financial entities from engaging with cryptocurrencies.
Are Cryptocurrencies Legal in Bangladesh?
Bangladesh Bank declared that financial institutions are prohibited from handling bitcoin transactions in September 2014. The bank further warned that anyone found using the digital currency could face imprisonment under the nation’s stringent anti-money laundering regulations. By 2021, the bank reinforced its stance, stating that any cryptocurrency activities linked to money laundering or terrorism financing would be considered illegal.
Are Cryptocurrencies Legal in India?
On 1 February 2018, Finance Minister Arun Jaitley expressed the government’s stance on bitcoin and other cryptocurrencies during his budget speech. He emphasized that the government would take steps to prevent their usage for illicit activities and highlighted that these digital assets are not recognized as legal currency in India. However, he acknowledged the potential of blockchain technology in improving payment systems.
Jaitley stated, “Cryptocurrencies are not recognized by the government as legal or coin currency. We will implement measures to eliminate their use for illegitimate financing or in our payment systems.”
In early 2018, the Reserve Bank of India (RBI) imposed a ban on the buying and selling of cryptocurrencies for entities it regulates.
By 2019, the Internet and Mobile Association of India petitioned the Supreme Court to reconsider the legal status of cryptocurrencies and sought directions to restrict their transactions. In March 2020, the Supreme Court revoked the RBI’s cryptocurrency ban.
In 2021, discussions emerged about the possibility of introducing a digital currency endorsed by the Reserve Bank of India, while potentially prohibiting private digital currencies such as bitcoin.
Currently, India maintains a neutral stance on cryptocurrency investments. The 2020 Supreme Court decision lifted the earlier RBI ban, legitimizing cryptocurrency investments. However, uncertainties remain regarding taxation and the regulatory framework for these digital assets. It is anticipated that the Indian Parliament may soon legislate specifically on this matter.
Hemant Batra, a prominent public policy lawyer and Vice President of SAARCLAW, shared his insights on the subject. He noted that given the vastness of the cryptocurrency market, an outright ban would be challenging. He recommended a regulatory approach, in line with guidelines from the IMF and FATF, instead of a complete prohibition.
Are Cryptocurrencies Legal in Nepal?
The use of cryptocurrencies is strictly prohibited in Nepal.
Are Cryptocurrencies Legal in Pakistan?
In Pakistan cryptocurrencies like Bitcoin are neither officially sanctioned nor prohibited. As of 16 January 2021, the State Bank of Pakistan hasn’t granted permission to any individual or entity to engage in cryptocurrency transactions such as buying, selling, or investing. Despite this stance, numerous arrests have been made by the Federal Investigation Agency’s Cyber Crime Wing, citing money laundering related to cryptocurrency mining.
Yet, several influential Pakistani bloggers and social media personalities actively trade in bitcoin and advocate for its regulation through their platforms. In a significant move, the Khyber Pakhtunkhwa government passed a resolution in December 2020, becoming the first province to endorse the legalization of cryptocurrency within Pakistan.
Are Cryptocurrencies Legal in China?
Financial institutions in China are prohibited from conducting bitcoin transactions. Regulatory measures prevent financial companies from holding or trading in cryptocurrencies. On 5 December 2013, the People’s Bank of China (PBOC) initiated its regulatory approach to bitcoin by forbidding financial establishments from managing bitcoin dealings.
By 1 April 2014, the PBOC mandated that commercial banks and payment providers close bitcoin trading accounts within a fortnight.
Regulation in September 2017 effectively outlawed cryptocurrency exchanges, leading to the shutdown of 173 platforms by July 2018.
In 2018, the People’s Bank of China, in collaboration with the State Administration of Foreign Exchange headed by Pan Gongsheng, announced a crackdown on bitcoin mining. As a result, many bitcoin mining ventures in China ceased operations by January 2018. A comprehensive ban on both cryptocurrency trading and mining was enforced on 24 September 2021.
In February 2022, the prohibition of cryptocurrency transactions was underscored. Reports indicated that individuals involved in these transactions risked a prison sentence of up to 10 years and fines reaching as much as RMB 500,000 ($79,000).
Are Cryptocurrencies Legal in Hong Kong?
On January 8, 2014, the Financial Services and Treasury Secretary addressed the Legislative Council about bitcoin, noting that while there’s no specific legislation in Hong Kong targeting bitcoins and other similar virtual currencies, existing regulations, like the Organised and Serious Crimes Ordinance, can penalize illegal activities involving them, such as fraud or money laundering.
On November 16, 2013, the Chief Executive of the Hong Kong Monetary Authority (HKMA), Norman Chan, stated that bitcoin should be viewed as merely a virtual commodity. He clarified that HKMA would not regulate bitcoin, but would keep a vigilant eye on its local use and international developments.
Are Cryptocurrencies Legal in Japan?
On March 7, 2014, in response to inquiries in the National Diet, the Japanese government provided clarification on the legal status of bitcoins. This cabinet decision stated that bitcoins are neither recognized as a currency nor as a bond under the prevailing Banking Act and Financial Instruments and Exchange Law. As a result, banks and securities firms are barred from transacting in bitcoins. However, the decision recognized that there aren’t any explicit laws preventing individuals or entities from accepting bitcoins for goods or services. It was also noted that bitcoin transactions might be subject to taxation.
By April 2017, Japan had introduced regulations for cryptocurrency exchange businesses under the Payment Services Act. Such businesses are now mandated to register, maintain records, implement security protocols, and adopt measures to safeguard their customers. In addition to abiding by the cryptocurrency-specific regulations, these businesses must also adhere to anti-money laundering laws and ensure protective measures for their users and investors. The Payment Services Act categorizes “cryptocurrency” as a form of property value, emphasizing that it’s an electronic value stored on devices and isn’t recognized as legal tender.
Are Cryptocurrencies Legal in South Korea?
Cryptocurrency trading is restricted to adult South Koreans who use real-name accounts on registered exchanges that are linked to banks. Both exchanges and banks must ensure customer identity verification and comply with other anti-money laundering measures. Trading is not allowed for minors and foreign nationals.
Are Cryptocurrencies Legal in Taiwan?
Bitcoin transactions are not permitted to be facilitated by financial institutions. Regulatory bodies have alerted the public that bitcoin lacks legal safeguards since it isn’t backed by any official monetary body and thus lacks entitlement to legal conversion guarantees.
Regulatory warnings have been issued to financial institutions in Taiwan, emphasizing potential regulatory actions if they engage with bitcoin.
On December 31, 2013, the Financial Supervisory Commission (FSC) of the Republic of China, in collaboration with the CBC, released a statement cautioning against the use of bitcoin. The statement emphasized bitcoin’s volatility, speculative nature, and its lack of legal conversion guarantees.
Subsequently, on January 5, 2014, Chairman Tseng Ming-chung of the FSC declared that bitcoin ATMs would not be allowed in Taiwan. He reasoned that bitcoin isn’t a recognized currency and shouldn’t be used as payment by individuals or banks.
Are Cryptocurrencies Legal in Cambodia?
The National Bank of Cambodia (NBC) has advised banks within the country to prevent transactions involving cryptocurrencies.
Are Cryptocurrencies Legal in Indonesia?
On December 7, 2017, Bank Indonesia, the nation’s central bank, issued a regulation prohibiting the use of cryptocurrencies, including bitcoin, as payment instruments, effective from January 1, 2018.
Subsequently, on November 11, 2021, the Indonesian Ulema Council issued a fatwa declaring the use of cryptocurrencies, including Bitcoin, as haram, citing Islamic laws and Indonesian banking and monetary regulations. The fatwa also prohibited cryptocurrency trading and holding, except if these cryptocurrencies adhered to Islamic sil’ah standards for tradable and ownable goods, such as having a physical form, clear value, a known quantity, genuine ownership, transferability, and avoiding excessive speculation.
With the enactment of the Law on Financial Sector Development and Strengthening on December 15, 2022, all cryptocurrencies, including Bitcoin, were categorized as “monitored financial technologies.” This made all matters related to the development, use, and other activities involving cryptocurrencies subject to the oversight and monitoring of Bank Indonesia and the Financial Services Authority.
Are Cryptocurrencies Legal in Malaysia?
On November 4, 2013, Bank Negara Malaysia (BNM) held discussions with local bitcoin advocates to gain a better understanding of the digital currency. However, no official comments were made at that time.
Subsequently, on January 6, 2014, BNM released a statement officially stating that bitcoin is not recognized as legal tender in Malaysia. The central bank declared that it would not currently regulate bitcoin activities and cautioned users to be aware of the associated risks when using bitcoin.
Are Cryptocurrencies Legal in Philippines?
On March 6, 2014, the Bangko Sentral ng Pilipinas (BSP) released a statement outlining the risks linked to bitcoin trading and its usage.
More recently, virtual currencies have been legalized, and cryptocurrency exchanges are now subject to regulation by the Central Bank of the Philippines (Bangko Sentral ng Pilipinas) as per Circular 944. However, it’s important to note that bitcoin and other “virtual currencies” are not acknowledged by the BSP as legitimate currency since they are neither issued nor guaranteed by a central bank, nor are they backed by any tangible commodity.
Are Cryptocurrencies Legal in Singapore?
In December 2013, the Monetary Authority of Singapore was reported to have indicated that “whether or not businesses choose to accept bitcoins in exchange for their goods and services is a business decision, and MAS does not interfere in such matters.”
On September 22, 2013, the Monetary Authority of Singapore (MAS) cautioned users about the risks associated with using bitcoin, stating that “If bitcoin were to cease operations, there might not be a clear party responsible for refunding users’ funds or providing them with recourse.” In December 2013, MAS reiterated that the decision of whether or not businesses accept bitcoins as payment for their products and services is a commercial matter in which MAS does not intervene.
In January 2014, the Inland Revenue Authority of Singapore issued a set of tax guidelines, suggesting that bitcoin transactions could be treated as a barter exchange if used as a payment method for tangible goods and services. Businesses engaged in bitcoin currency exchanges would be subject to taxation based on their bitcoin sales.
In April 2019, MAS classified bitcoin as a digital payment token for the purposes of the Payment Services Act.
Are Cryptocurrencies Legal in Thailand?
Thai-based bitcoin exchanges are exclusively authorized to facilitate the exchange of Digital Currencies for Thai Baht and are mandated to possess an e-commerce license from the Thailand Business Development Department. Additionally, they must implement Know Your Customer (KYC) and Customer Due Diligence (CDD) policies and procedures, as stipulated by the Ministerial Regulation Prescribing Rules and Procedures for Customer Due Diligence, detailed in Reference Page 8, Volume 129, Part 44 of the Government Gazette dated May 23, 2555 (2012).
Any suspicious activities detected must be promptly reported to the Anti-Money Laundering Office.
Effective April 1, 2022, the Thai government has prohibited the use of cryptocurrencies as a means of payment for goods and services. However, it’s important to note that this regulation does not forbid the ownership or trading of cryptocurrencies, though commercial banks have been advised to exercise caution when dealing directly with digital assets.
Are Cryptocurrencies Legal in Vietnam?
The State Bank of Vietnam has stated that the creation, distribution, and utilization of bitcoin and similar virtual currencies as a form of payment are prohibited and can result in penalties ranging from 150 million to 200 million VND. However, it’s important to note that the government has not banned the trading of bitcoin as virtual goods or assets.
Are Cryptocurrencies Legal in Brunei?
In Brunei Darussalam, it’s important to note that Bitcoin and cryptocurrencies do not hold the status of legal tender and are not subject to regulation by AMBD (Brunei Monetary Authority). These digital assets also do not benefit from legal protection as governed by AMBD’s laws.
However, AMBD has issued guidance urging the public to exercise caution when encountering investment or financial activity advertisements, emphasizing the need for thorough due diligence and a proper understanding of financial products before engaging in them. Importantly, there is no law that explicitly declares the holding or trading of Bitcoin as illegal in the country.
Are Cryptocurrencies Legal in Europe?
Are Cryptocurrencies Legal in Austria?
While not recognized as an official currency, earnings from cryptocurrencies are subject to taxation under prevailing tax laws.
The Financial Market Authority (FMA) has issued a cautionary advisory to investors, highlighting the inherent risks associated with cryptocurrencies. The FMA explicitly states that it does not oversee or regulate virtual currencies, including bitcoin, or the platforms used for cryptocurrency trading.
Are Cryptocurrencies Legal in Croatia?
On December 18, 2017, Croatia’s Financial Stability Council issued a warning to investors regarding the potential risks associated with virtual currencies, including concerns about digital wallet theft and fraudulent activities. The National Bank of Croatia had previously issued a similar caution on September 22, 2017.
Are Cryptocurrencies Legal in Czech Republic?
Entities and individuals engaged in activities related to the acquisition, sale, storage, management, or facilitation of virtual currencies, as well as offering similar services, are obligated to adhere to anti-money laundering regulations.
For accounting and tax purposes, Bitcoin is categorized as an intangible asset and not as electronic money.
Are Cryptocurrencies Legal in Germany?
On August 19, 2013, the German Finance Ministry declared that bitcoin was officially recognized as a “unit of account” and could be employed for tax and trading purposes within the country. This designation meant that transactions made with bitcoin were subject to Value Added Tax (VAT) in the same manner as euro transactions. Importantly, bitcoin was not classified as a foreign currency or electronic money but was rather considered “private money” suitable for use in “multilateral clearing circles,” as per the ministry’s definition.
Contrary to regarding bitcoin as a virtual currency or digital money, the Bundesbank, Germany’s central bank, suggests the use of the term “crypto token.”
In November 2019, the German parliament passed legislation enabling banks to engage in the sale and storage of cryptocurrencies, effective from January 1, 2020.
Are Cryptocurrencies Legal in Hungary?
The Hungarian Central Bank, known as the Magyar Nemzeti Bank (MNB), has issued multiple cautionary statements regarding cryptocurrencies, emphasizing that they pose a significantly higher level of risk compared to other electronic payment methods, such as credit cards.
Are Cryptocurrencies Legal in Gibraltar?
In 2018, Gibraltar achieved the distinction of being the world’s first nation to establish a specialized regulatory framework tailored for enterprises utilizing distributed ledger technology. The implementation of the travel rule occurred through the Proceeds of Crime Act 2015 (Transfer of Virtual Assets) Regulations 2021, which has been in effect since March 22, 2021.
Are Cryptocurrencies Legal in Poland?
Currently, in Poland, there is no specific legal framework regulating the use of bitcoin.
Szymon Woźniak, a representative of the Ministry of Finance, made an official announcement on the status of bitcoin on December 18, 2013, during a conference at the Warsaw School of Economics. He stated that the Ministry of Finance does not consider bitcoin to be illegal and does not aim to impede its development. However, he clarified that while bitcoin is not illegal, it cannot be considered legal tender, and in accordance with European Union directives, it is not classified as electronic money either.
As of January 27, 2015, several banks in Poland closed the accounts of clients involved in bitcoin trading, citing a “presumption of criminal offense” as the reason, presumably related to cryptocurrency trading.
On July 7, 2017, the National Bank of Poland (NBP) and the Financial Supervision Authority (KNF) issued a statement regarding virtual “currencies.” They emphasized that virtual currencies, including bitcoin:
1. Are not issued or guaranteed by the central bank.
2. Are not considered money or legal tender.
3. Cannot be used to settle tax liabilities.
4. Do not meet the criteria for universal acceptance in retail and service establishments.
5. Are not electronic money.
6. Are not classified as payment services.
7. Are not financial instruments in the legal sense.
NBP and KNF further warned about the numerous risks associated with owning virtual currencies, including the risk of theft, lack of guarantees, limited acceptance, potential for fraud, and high price volatility. Due to these risks, they cautioned against purchasing and investing in virtual currencies. Additionally, they advised financial institutions to exercise caution when dealing with entities involved in virtual currency “trading.”
Are Cryptocurrencies Legal in Romania?
As of March 2015, an official statement from the Romanian National Bank noted that “the use of digital currencies for payment carries certain risks for the financial system.”
In October 2017, the National Fiscal Administration Agency (ANAF) acknowledged the absence of a legislative framework for bitcoin, which prevented the establishment of a taxation regulation for it. This implied that there was no taxation specifically applied to bitcoin.
In January 2019, Law nr. 30/2019 provided clarity by categorizing income from trading “virtual currency” under “income from other sources” starting in 2019. Furthermore, a new provision, Article 116(2)(c), stipulated that a 10% income tax would be levied only on the “positive difference between the selling price and acquisition price” and not on the entire amount received from a sale. Additionally, profits under 200 RON per transaction, totaling less than 600 RON during a fiscal year, were exempt from taxation.
Are Cryptocurrencies Legal in Slovakia?
The National Bank of Slovakia (NBS) has explicitly stated that bitcoin lacks the essential legal characteristics of a currency, and as a result, it cannot be classified as a currency. It’s worth noting that both European legislation, including Slovak law, do not provide a definition for activities related to virtual currency. These activities remain unregulated and are not subject to supervision by either the National Bank of Slovakia or the European Central Bank.
Simultaneously, the NBS emphasizes that within the Slovak Republic, no legal entity or individual is permitted to issue banknotes or coins. Engaging in the unlawful production and circulation of banknotes and coins is subject to legal penalties. In this context, the NBS underscores that virtual currencies do not possess a physical equivalent in the form of legal tender, and participation in such a system (virtual currency) carries inherent risks. The exchange or acquisition of virtual currencies represents a business risk for investors, and the funds invested by investors are not safeguarded. Consequently, there is no legal entitlement to seek compensation for losses incurred through such exchanges or purchases.
Are Cryptocurrencies Legal in Slovenia?
On December 23, 2013, the Slovenian Ministry of Finance issued a statement clarifying that bitcoin is not classified as either a currency or an asset. Capital gains tax does not apply to bitcoin, but there are taxation regulations for bitcoin mining activities, and businesses that conduct transactions involving the sale of goods or services using bitcoin are also subject to taxation.
Are Cryptocurrencies Legal in Switzerland?
Bitcoin businesses operating in Switzerland are subject to anti-money laundering regulations and may, in certain cases, need to acquire a banking license.
On December 5, 2013, 45 members of the Swiss Parliament proposed a plan for digital sustainability (Pardigli), urging the Swiss government to assess the potential use of bitcoin within the country’s financial sector. This proposal also sought clarification regarding bitcoin’s legal status in relation to VAT, securities, and anti-money laundering laws.
In response to these parliamentary proposals, the Swiss Federal Council issued a report on virtual currencies in June 2014. The report noted that since virtual currencies were not operating in a legal vacuum, the Federal Council deemed it unnecessary to enact legislative measures at that time.
In 2016, the city of Zug introduced bitcoin as a payment option for municipal fees, demonstrating its commitment to embracing cutting-edge technologies. Additionally, the Swiss Federal Railways, a government-owned railway company, began selling bitcoins at its ticket machines.
In 2018, the Swiss Financial Market Supervisory Authority (FINMA) indicated its intention to adopt a “balanced approach” toward the cryptocurrency industry, allowing “legitimate innovators to navigate the regulatory landscape.” By June 2021, the SIX Swiss Exchange boasted a record-breaking 100 Exchange Traded Products (ETP) and crypto structured products, with a cumulative trading value of CHF 4.6 billion.
Are Cryptocurrencies Legal in Albania?
On May 21, 2020, Albania enacted fresh legislation aimed at regulating cryptocurrency operations.
Are Cryptocurrencies Legal in Belarus?
The Decree on the Advancement of the Digital Economy, signed by Alexander Lukashenko, the President of the Republic of Belarus, encompasses measures aimed at enhancing the conditions for conducting business in the high-tech sector.
This decree establishes a legal framework for the circulation of digital currencies and tokens based on blockchain technology. Resident companies within the High-Tech Park are granted the capability to offer cryptocurrency-related services, operate as cryptocurrency exchanges, and raise funds through Initial Coin Offerings (ICOs). For legal entities, the decree grants the rights to create and issue their own tokens, engage in transactions through stock markets and exchange platforms. Individuals are also given the right to partake in cryptocurrency mining, own tokens, buy and convert them into Belarusian rubles, foreign currency, and electronic money, as well as include them in their inheritance. Until January 1, 2023, the decree excludes revenue and profits derived from token operations from the taxable income. In the context of individuals, buying and selling tokens is not considered entrepreneurial activity, and both tokens and the income generated from token transactions are not subject to declaration. Importantly, all these operations must be conducted through resident companies within the High-Tech Park.
Moreover, the decree encompasses:
1. Extending the validity period of the special legal framework of the High-Tech Park until January 1, 2049, and broadening the range of activities for resident companies. Under the new regulations, companies engaged in developing blockchain-based solutions, creating machine learning systems using artificial neural networks, firms in the medical and biotechnological sectors, unmanned vehicle developers, as well as software developers and publishers can become residents. The list of promising sectors is unlimited and can be expanded by the High-Tech Park supervisory board.
2. Preserving existing benefits for High-Tech Park resident companies, including the elimination of profit tax (replaced by a 1% contribution of gross revenues directed to park administration), a reduced 9% personal income tax rate for employees, and the option to contribute to the Social Protection Fund based on national average figures rather than actual salaries.
3. Exempting foreign companies providing marketing, advertising, consulting, and other services to High-Tech Park residents from value-added tax and income tax payments, facilitating the promotion of Belarusian IT products in foreign markets. To encourage investments, the decree also waives taxes on income from the sale of shares, stakes in authorized capital, and property shares in High-Tech Park residents (provided ownership is held for at least 365 days).
4. Introducing specific English law provisions for High-Tech Park residents, enabling the use of option contracts, convertible loan agreements, non-competition agreements with employees, agreements regarding employee recruitment, irrevocable powers of attorney, and other documents commonly used in international transactions. This measure simplifies the structuring of deals involving foreign capital.
5. Streamlining currency transaction procedures for High-Tech Park residents, including the introduction of a notification system for currency transactions, removal of mandatory written form requirements for foreign trade transactions, and acceptance of unilateral primary documents as proof of transactions. Additionally, the decree eliminates restrictions on resident companies for transactions involving electronic money and allows them to open accounts with foreign banks and financial institutions without requiring approval from the National Bank of the Republic of Belarus.
6. Simplifying the process for recruiting highly skilled foreign specialists by High-Tech Park resident companies, which includes the elimination of recruitment permits, a streamlined work permit application process, and a visa-free regime for founders and employees of resident companies with a continuous stay of up to 180 days.
Are Cryptocurrencies Legal in Georgia?
As per the official declaration made by the Ministry of Finance of Georgia in 2019, cryptocurrencies, due to their inherent nature, do not originate from any specific geographical location, and thus, they are not classified as “Georgian sourced.” Consequently, this type of income falls under the 0% tax rate on capital gains resulting from cryptocurrency trading, in accordance with prevailing laws.
In Georgia, the ownership and trading of cryptocurrencies are legally permissible. The absence of government regulations, coupled with the availability of affordable hydroelectric power, has positioned Georgia as a hub for cryptocurrency mining.
It’s important to note that cryptocurrencies do not hold the status of legal tender in Georgia. However, there is presently no regulation by The National Bank of Georgia that prohibits their use in the form of a barter exchange.
Are Cryptocurrencies Legal in Kosovo?
In January 2022, amid an energy crisis, Kosovo enacted a ban on all cryptocurrency mining activities. According to BBC News, cryptocurrency mining is especially prevalent in the northern regions of Kosovo, where ethnic Serbs do not acknowledge the state’s independence and, consequently, refuse to settle their electricity bills.
Are Cryptocurrencies Legal in Russia?
On December 11, 2020, Vladimir Putin issued an order mandating that public officials disclose their cryptocurrency holdings and digital assets, effective January 1, 2021.
In 2021, Putin expressed Russia’s willingness to embrace the role of cryptocurrencies and acknowledged their potential for use as a means of payment.
As of November 2016, the Federal Tax Service of Russia deemed bitcoins as “not illegal.” However, in September 2017, Deputy Finance Minister Alexei Moiseev stated that it was “probably illegal” to accept cryptocurrency payments. Despite this, bitcoin market websites have been blocked, and legal decisions have characterized bitcoin as a currency surrogate, which is prohibited within the Russian Federation’s territory.
Under the current Russian legislation, cryptocurrency is categorized as a monetary substitute. This classification is based on Article 27 of the Federal Law “On the Central Bank of the Russian Federation (Bank of Russia),” which prohibits the issuance of monetary surrogates within Russia.
Both the Central Bank of Russia and Rosfinmonitoring have repeatedly cautioned Russian citizens that cryptocurrency operations are speculative and carry a high risk of value loss. The Central Bank has emphasized that “most cryptocurrency operations occur outside the legal framework of both Russia and most other countries” and that cryptocurrencies are not backed or guaranteed by the Bank of Russia.
A bill pertaining to digital financial assets was introduced in the State Duma on March 20, 2018. This bill defines cryptocurrency mining as “activities aimed at generating cryptocurrency in exchange for compensation in cryptocurrency” and subjects it to taxation if miners exceed government-established energy consumption limits for three consecutive months.
The bill classifies bitcoins as property and not legal tender. The exchange of cryptocurrency for rubles and foreign currency is allowed but only through licensed operators. Additionally, the bill provides a definition of a smart contract.
In January 2022, the Central Bank of Russia proposed a ban on “all cryptocurrency issuance and operations, restrictions on banks investing in cryptocurrencies, the prohibition of cryptocurrency-to-fiat exchanges, and the introduction of legal penalties for cryptocurrency use in transactions,” citing systemic financial risks. This proposal was influenced by the Federal Security Service, which argued that cryptocurrencies were being used to finance opposition groups and independent media.
However, in February 2022, the Russian government announced its intention to support, legalize, and regulate cryptocurrencies, opting not to impose a ban.
Are Cryptocurrencies Legal in Ukraine?
On March 16, 2022, the President of Ukraine approved the Virtual Asset Bill, enacting it into law. Subsequently, on April 22, the Central Bank imposed a ban on the acquisition of cryptocurrencies using the national currency and implemented a monthly limit of $3300 for cryptocurrency purchases made with foreign currencies.
Are Cryptocurrencies Legal in Denmark?
Denmark’s Financial Supervisory Authority (FSA) issued a statement clarifying that bitcoin is not recognized as a currency and emphasized that it would not oversee or regulate its usage.
On December 17, 2013, the FSA reiterated its stance, aligning with the warning issued by the European Banking Authority (EBA). As of 2017, the FSA affirmed that conducting transactions involving bitcoin did not fall within its regulatory jurisdiction, and it did not prohibit individuals from establishing businesses related to cryptocurrency. The FSA’s chief legal advisor suggested that Denmark might contemplate revising existing financial regulations to encompass virtual currencies in the future.
Are Cryptocurrencies Legal in Estonia?
In Estonia, the utilization of bitcoins is not subject to government regulation or control.
The Estonian Ministry of Finance has determined that there are no legal barriers to employing bitcoin-like cryptocurrencies as a method of payment. Consequently, traders are required to verify the identity of the buyer when initiating a business relationship or if the buyer accumulates more than 1,000 euros’ worth of the currency in a month.
Are Cryptocurrencies Legal in Finland?
The Finnish Tax Administration has provided guidelines for the taxation of virtual currencies, including bitcoin. Rather than being classified as a currency or security, a bitcoin transaction is regarded as a private contract, similar to a contract for difference, for tax purposes. When goods are purchased with bitcoin or when bitcoin is converted into legal currency, the value is considered “realized,” and any increase in value becomes subject to taxation. However, losses incurred in these transactions are not eligible for tax deductions. Bitcoin obtained through mining is treated as earned income.
A ruling issued by the Finnish Central Board of Taxes (CBT) in 2014, known as Ruling 034/2014, determined that commission fees levied by an exchange market for bitcoin purchases were categorized as banking services and, therefore, exempt from VAT under the EU VAT Directive. This decision was made because the court classified bitcoins as payment instruments, in contrast to many countries that view their use as an unregulated means of exchanging goods or, in some cases, as a legal offense.
Are Cryptocurrencies Legal in Iceland?
In 2014, the Central Bank of Iceland issued an opinion stating that there was no authorization for acquiring foreign currency from financial institutions within Iceland or for transferring foreign currency across borders through transactions involving virtual currency. As a result, transactions involving virtual currency were subject to restrictions in Iceland. Despite this, businesses in Iceland continued to engage in bitcoin mining activities. The Icelandic Central Bank explicitly affirmed that engaging in foreign exchange trading with the electronic currency bitcoin was prohibited, in accordance with the Icelandic Foreign Exchange Act.
However, on March 12, 2017, the Central Bank introduced amendments to its regulations, which included providing broad and general exemptions from the restrictions outlined in the Foreign Exchange Act No. 87/1992.
Are Cryptocurrencies Legal in Lithuania?
On January 31, 2014, the Bank of Lithuania issued a cautionary statement, clarifying that bitcoin does not hold the status of legal tender in Lithuania. Additionally, the Bank of Lithuania emphasized the significant risks associated with the usage of bitcoin and urged users to exercise caution.
Are Cryptocurrencies Legal in Norway?
In December 2013, the Norwegian Tax Administration made it clear that they do not categorize bitcoin as a form of currency; instead, they consider it an asset. Any profits generated from bitcoin holdings are subject to wealth tax. In business transactions, the use of bitcoin is governed by sales tax regulations.
Furthermore, in February 2017, the Norwegian government announced that they would not impose value-added tax (VAT) on the buying or selling of bitcoin.
Are Cryptocurrencies Legal in Sweden?
The Swedish Tax Agency has issued a preliminary ruling concerning the Value Added Tax (VAT) on bitcoins. They have stated that the trading of bitcoins is not subject to Swedish VAT but is rather governed by the regulations of the Finansinspektionen (Financial Supervisory Authority) and treated as a form of currency. However, this decision has been challenged by the Swedish Tax Authority.
In general, Sweden’s regulatory environment is relatively favorable for bitcoin businesses and users when compared to other countries within the EU and globally. The Swedish Financial Supervisory Authority (Finansinspektionen), the governmental regulatory and supervisory body, has officially recognized bitcoin and other digital currencies as a valid means of payment. For certain businesses that interact with fiat currency, such as exchanges, the current regulations stipulate that they must apply for approval or a license. They are also required to adhere to Anti-Money Laundering (AML), Counter-Terrorism Financing (CTF), and Know Your Customer (KYC) regulations, which are applicable to more traditional financial service providers.
Are Cryptocurrencies Legal in Bosnia and Herzegovina?
No regulation on the use of bitcoins.
Are Cryptocurrencies Legal in Bulgaria?
Bulgarian laws do not contain any specific provisions regarding bitcoin. Individuals are liable for a 10% tax on any profits they earn from trading it.
Are Cryptocurrencies Legal in Cyprus?
The use of bitcoin is not regulated in Cyprus.
Are Cryptocurrencies Legal in Greece?
Greece does not have dedicated legislation addressing bitcoins.
Are Cryptocurrencies Legal in Italy?
Italy does not have regulations governing the use of bitcoin by private individuals.
Are Cryptocurrencies Legal in Malta?
In 2017, Malta did not have any specific regulations in place for bitcoins. During that year, the Prime Minister of the country, Joseph Muscat, unveiled the adoption of a national strategy aimed at promoting bitcoin and blockchain technology. Muscat highlighted the bitcoin blockchain’s capacity to manage, store, and process sensitive information within an immutable and decentralized framework.
Are Cryptocurrencies Legal in North Macedonia?
North Macedonia does not have any particular legislation pertaining to bitcoins or cryptocurrencies. In 2016, the National Bank of the Republic of North Macedonia released a press statement regarding its investigation into ONECOIN and advised citizens against investing in it, suspecting it to be a potential scam. In the same press release, the NBRM referenced the law on Foreign Exchange Operations. However, cryptocurrencies, not being classified as foreign currencies under this law, remain unregulated.
Are Cryptocurrencies Legal in Portugal?
In 2013, the Bank of Portugal declared that Bitcoin was not a secure currency due to its lack of oversight and prudential requirements in issuance. As of 2014, Portugal did not possess a dedicated legal framework for Bitcoin.
Are Cryptocurrencies Legal in Spain?
Bitcoin transactions are governed by the same regulations as barter transactions.
Are Cryptocurrencies Legal in Belgium?
In July 2013, the Minister of Finance raised concerns about the potential use of Bitcoin for money laundering but noted that government intervention did not seem immediately necessary.
Are Cryptocurrencies Legal in France?
On July 11, 2014, the French Ministry of Finance released regulations regarding the conduct of virtual currency professionals, exchanges, and taxation.
Are Cryptocurrencies Legal in Ireland?
In December 2013, the Central Bank of Ireland was cited in Dáil Éireann (Irish Parliament) as stating that it does not oversee bitcoin and that bitcoin does not hold legal tender status within the European Union.
Are Cryptocurrencies Legal in Luxembourg?
In February 2014, the Commission de Surveillance du Secteur Financier issued a communication recognizing the status of bitcoin and other cryptocurrencies as currency. The first BitLicence was granted in October 2015.
Are Cryptocurrencies Legal in Netherlands?
As of 2013, “alternative virtual currencies” like bitcoin are not considered legal tender and are not subject to the regulations outlined in the Act on Financial Supervision of the Netherlands. When conducting transactions with cryptocurrencies, individuals are required to report them and fulfill their tax obligations to the Dutch Tax and Customs Administration.
Are Cryptocurrencies Legal in United Kingdom?
As of 2013, the United Kingdom government has officially stated that bitcoin is not subject to regulation and is categorized as a ‘foreign currency’ for most purposes, including VAT/GST.
Bitcoin is treated as ‘private money’ in the UK. When bitcoin is exchanged for British pounds or other foreign currencies, such as euros or dollars, there is no VAT payable on the value of the bitcoins themselves. However, in all cases, VAT is applicable in the usual manner when goods or services are exchanged for bitcoin or similar cryptocurrencies. Profits and losses derived from cryptocurrencies are subject to capital gains tax.
In March 2022, the Financial Conduct Authority (FCA) declared that all cryptocurrency ATMs in the country were operating unlawfully, as none of the ATM operators had successfully registered with the agency. The FCA cited non-compliance with know your customer regulations and highlighted the high risks to customers due to the lack of regulation and protection.
Are Cryptocurrencies Legal in Oceania?
Are Cryptocurrencies Legal in Australia?
In December 2013, the governor of the Reserve Bank of Australia (RBA) discussed the legality of bitcoin in an interview, stating, “There would be nothing to prevent individuals in this country from choosing to conduct transactions in some other currency at a store if they wished. There’s no legal prohibition against it, so we do have alternative currencies.” Starting in April 2018, digital currency exchanges in Australia are required to register with the Australian Transaction Reports and Analysis Centre (AUSTRAC) and establish “know your customer” policies to adhere to new anti-money laundering legislation.
Are Cryptocurrencies Legal in New Zealand?
The Reserve Bank of New Zealand specifies that non-banks do not require their approval for systems involving the storage and/or transfer of value, such as ‘bitcoin,’ as long as these systems do not involve the issuance of physical circulating currency in the form of notes and coins.
Are Cryptocurrencies Legal in Fiji?
Prime Minister Sitiveni Rabuka is a supporter of cryptocurrencies and has proposed the idea of making bitcoin a legal tender as early as 2023.
Are Cryptocurrencies Legal in Tuvalu?
The government provides official support for the adoption of blockchain technologies, including cryptocurrencies.
Are Cryptocurrencies Legal in Vanuatu?
Legalised in 2021
Are Cryptocurrencies Legal in Marshall Islands?
Decentralized autonomous organizations (DAOs), which operate on blockchain technology, are recognized as legal entities in the Marshall Islands.
Are Cryptocurrencies Legal in Palau?
The government officially endorses the use of cryptocurrencies.
Are Cryptocurrencies Legal in Samoa?
Cryptocurrency usage in Samoa is permitted by law, although the Central Bank of Samoa advises against it.
Are Cryptocurrencies Legal in Tonga?
Tonga intends to establish bitcoin as legal tender by the conclusion of 2023, a plan that has been in development since late 2021.
As you have read, in a large part of the world, cryptocurrencies are completely legal, but there are also countries where they are Illegal.
I am a crypto journalist and blockchain expert. I like technology and started reading about bitcoin in 2013. Crypto is my passion and I like to write about cryptocurrencies.
P.S.
When I wrote the article “Are Cryptocurrencies Legal?” I analyzed statistics from various reliable sources. Always verified information from the Genesis code.
