Countries Where Crypto Is Legal (and Illegal)

Interest in cryptocurrencies has exploded in recent years. The Pew Research Center estimates that nine out of ten Americans have heard of cryptocurrencies. From Matt Damon’s infamous Super Bowl ad to President Joe Biden’s March executive order calling on governments to investigate the risks posed by digital currencies, crypto is hotter than ever. It is

We have spent dozens of hours compiling the most relevant and useful information about cryptocurrencies and their legal status around the world. Gender is also hotly debated. With more and more countries accepting cryptocurrencies, albeit to varying degrees, a greater understanding of the legal status of cryptocurrencies where you live will help you understand if this asset is for you. It helps you make the right decisions when considering whether it is right for you. Before we look at the legal status of cryptocurrencies around the world, let’s start from the beginning.

A brief history of cryptocurrencies

To better understand where we are going, we need to know where we have been. The following timeline provides some context and shows that cryptocurrencies (or at least the concept of digital money) have been around longer than some of us have been alive.

• The concept of electronic money was proposed by computer scientist David Chaum in 1983.
• In 1989, Chaum sought to realize his vision by founding DigiCash, the first company to electronically complete transactions using cryptographic protocols such as public and private keys. Unable to grow its user base, DigiCash declared bankruptcy in 1998 and sold its assets in 2002.
• Bitcoin, in use since 2009, is the oldest decentralized cryptocurrency and has set the standard for crypto as we know it.
• In August 2014, the UK commissioned a study into cryptocurrencies and what role they could play in the economy, with a focus on regulation and consumer protection.
• In June 2021, El Salvador became the first country to adopt Bitcoin as legal tender, but de facto adoption by the people remains a challenge for the Salvadoran government.
• In September 2021, China declared all cryptocurrencies illegal.
• In March 2022, Biden signed an executive order calling for measures to ensure consumer and investor protection and to explore the potential of U.S. Central Bank digital currencies.

Legal status by country

It’s easiest to name countries where cryptocurrencies are completely illegal. A total of nine countries have banned cryptocurrencies outright as of November 2021, according to the Library of Congress. These countries are Algeria, Bangladesh, China, Egypt, Iraq, Morocco, Nepal, Qatar and Tunisia. Another 42 countries implicitly ban assets, usually by means of not allowing financial institutions in certain countries to accept cryptocurrency companies as clients.

In general, if a crypto is legal, the following conditions apply:

• Anti-money laundering (AML) regulation: This allows governments to monitor cryptocurrency transactions to prevent illegal financial activity.
• Taxation: Cryptocurrency taxes vary by country. For example, in the United States, the IRS taxes cryptocurrencies as property, not income. However, in some European Union countries, value added tax (VAT) does not apply and is taxed as income. VAT is a tax on goods and services, so it is in contrast to how it is treated in the United States.

Crypto as a currency of everyday use

Daily purchases with Bitcoin are becoming a more common sight than ever before. There are many ways to do this, including:

• Coinmap is a website that allows you to find nearby places that directly accept cryptocurrencies as payment.
• A crypto debit card allows you to pay using crypto anywhere Visa or Mastercard is accepted by converting the crypto in your wallet to dollars at the time of purchase.
• Sites like Bitrefill and CoinGate that let you buy gift cards with virtual currency

These are all convenient ways to use cryptocurrencies as cash, but if what you’re looking for is an easy way to buy cryptocurrencies with cash, there are over 38,000 cryptocurrencies worldwide according to Coin ATM Radar. cryptocurrency ATMs.

final thoughts

All emerging technologies inevitably experience some growing pains. Adopting a new system involves the same risk-reward relationship as any investment. Using cryptocurrencies doubles that relationship as it is both a relatively new technology and an investment. Like any new technology, education is the foundation of sound decision-making.

I hope the facts in this post have helped you learn a little bit more about cryptocurrency as a whole and pave the way for you to decide if crypto is right for you. And if you’ve read this far, I hope you do, but please consider sharing this with your friends and family.