Where are Bitcoin and other Cryptocurrencies Legal?

Cryptocurrencies have gained immense popularity over the years. The number of countries that have shown an inclination towards this form of digital currency is increasing with every passing day. Out of all the Cryptocurrencies, no wonder, Bitcoin tops the list in terms of popularity. Bitcoin holds the potential of attracting investors from all across the globe. However, many are still unsure when it comes to where are Bitcoin and other Cryptocurrencies legal. Despite being legal, there are many issues that pop up, especially pertaining to legal compliances. As far as Bitcoin is concerned, since it is widely used, how legal it is, draws attention from everyone across.

When Cryptocurrencies are studied in-depth, what comes into the limelight is the fact that there are still many countries that have outlawed this as a result of strong opposition. On the other hand, there are some who firmly believe that Bitcoin and other Cryptocurrencies when regulated would benefit to a larger extent. Cryptocurrencies have different rules to follow, be it in the area of mining, or being used as legal tender, or as property.

Here is how Cryptocurrencies (especially Bitcoin) are regulated in different parts of the world.

USA

As known to many, Bitcoin is legal in the USA. It was listed as a convertible decentralized cryptocurrency in the year 2013 by the US treasury. Later, in the year 2015, the Commodity Futures Trading Commission (CFTC) identified Bitcoin as a commodity. Here, the cryptocurrency exchanges are regulated in a similar manner as that of the financial firms, conventional AML or CFT facilitators, etc. They are subject to the same rules as applied there and this is inclusive of the Bank Secrecy Act amendments of 2021.

Japan

In Japan, the story is a little different when compared to the USA. Here, cryptocurrency is defined as a property value under the Payment Services Act. In other words, the Payment Services Act acknowledges Bitcoin and other digital currencies as legal property in Japan.

India

India has never made Bitcoin legal. Since the evolution of cryptocurrency, India never made a revelation that Cryptocurrencies would be made legal. However, the lawmakers and authorities, over the years, seem to have recognized the opportunity to adopt this new technology early. All this wasn't a cakewalk for the authorities. They had to face their own set of challenges. Also, the fact that India's climate around Cryptocurrencies is becoming progressively stringent cannot be overlooked upon. Since there isn't any clear regulation, a lot of cryptocurrency services and revolutionary technologies are facing a tough time to run. The good news is that the Indian government has announced that it is willing to investigate the use of blockchain technology to improve the country's financial services sector. This ultimately throws light on the fact that the country is most likely going to give a green signal to the usage of Cryptocurrencies.

China

Just like India, China has also not given a green signal to Cryptocurrencies. In short, here Cryptocurrencies are not considered legal not just that. The banking firms here do not acknowledge these currencies and hence do not provide any kind of services regarding the same. Taking investor security to a different level altogether, the Chinese government has come up with a number of initiatives and measures with the objective of clamping all those activities that revolve around Cryptocurrencies.

Despite many countries showing an inclination towards Cryptocurrencies, what needs to be understood here is that the regulation pertaining to these currencies has a long way to go. Also, with Bitcoin just being in its early phase, what the future holds – only time will tell.