Thinking of buying, selling, or spending Bitcoin? Make sure it is legal in your country. Despite its increasing popularity in cryptocurrency news around the world, not all countries are open to its trade. Some places ban Bitcoin ownership, while others have yet to implement regulations involving it. Be informed of the cryptocurrency’s state in your current country before entering any ventures.
Countries That Acknowledge Cryptocurrency
Bitcoin currently operates independently from any central bank. Transactions made with the currency are verified through cryptography and recorded in a decentralised public ledger system.
Bitcoin adoption can simplify international transactions, decrease fraud risks for consumers, removes mediators from deals, and enable quick payments, among other innovative benefits. Unfortunately, not all countries are ready to welcome such a revolutionary currency.
When using, buying, or selling the cryptocurrency, it is best to stick to these Bitcoin-friendly countries:
In 2013, Bitcoin was accepted by the US treasury as a virtual currency that can be used legally for business transactions. Today, many merchants and businesses take the currency as transaction tenders. Mining Bitcoin is legal in the US. However, since the cryptocurrency is considered a commodity, its consequent capital gains must be indicated for tax purposes.
As one of the most technologically advanced countries in the world, it is no wonder that Japan features the most progressive regulatory climate for crypto-based trade. The country considers Bitcoin and other cryptocurrencies as legal property starting from April 2017.
Japan’s link to Bitcoin dates back to the cryptocurrency’s beginning. The identity of the individual or group that created Bitcoin remains a mystery today. The only information established in cryptocurrency news about them is that they are identified as Satoshi Nakamoto from Japan.
Switzerland has an incredibly progressive position regarding cryptocurrency regulations. Bitcoin and other cryptocurrencies are considered as assets, which means they must be stated in annual tax returns. They are also affected by the Swiss wealth tax. The country also gave Bitcoin banks the go signal, provided that they comply with several conditions.
There are no restrictions when it comes to Bitcoin trade or exchanges on Slovenia. Most of the regulations regarding the cryptocurrency apply to its mining and spending, which are subject to taxation. Capital gains tax do not apply to Bitcoin in Slovenia since the country does not identify it as a financial instrument or legal tender.
Given Slovenia’s progressive regulations regarding cryptocurrencies, it is fast becoming one of the top destinations for global blockchain technology companies in Central Europe.
Bitcoin use is legal in Canada, but companies dealing with it must register with the designated authorities on cryptocurrencies. It is considered a commodity by the government, which treats trades made with the cryptocurrency as barter transactions. This means Bitcoin is subjected to income tax.
Be Informed of the Latest Crypto Developments
The legality of Bitcoin differs from country to country. If you travel a lot, be aware of your current destination’s view on the cryptocurrency. Most of the places that consider Bitcoin illegal often do so due to their cultural, religious, and political laws. Meanwhile, some of the countries that accept Bitcoin, often consider it an asset, not a currency.
Stay on top of the latest trends and developments about Bitcoin with a digital asset management company. Discover the most strategic ways to integrate cryptocurrency into your ventures and business!