4 July 2020

Gavel and cryptocurrency. Government regulation concept.

Bitcoin: Legal or Illegal? 

We all know that dealing with money has its pros and cons, and we definitely want to always be on the safe side. You might be wondering if cryptocurrencies work in the same way as fiat (government regulated) currency. Are they legal or not? Are they shady? Can it be trusted? We are here to answer these questions for you.

Bitcoin: The Beginning

Bitcoin was created in 2009, but it had its highest peak in price and popularity in 2017. Not only had the prices risen to a peak during 2017, but people were getting more and more interested in the cryptocurrency world. However, this sudden interest in cryptocurrency sparked some fears amongst governments. Some countries have already banned the use of Bitcoin. Some others are still deciding what to do.

Bitcoin’s legality depends on the country and its regulatory laws. But why is it that Bitcoin is legal in some countries but not in others? To understand this, we need to know the reasons why Bitcoin could be considered illegal and legal.

Is Bitcoin Illegal?

Some countries state that Bitcoin can be used in illegal activities. One of the primary illegal activities that they reference is money laundering. This makes sense, as Bitcoin’s anonymity can be an attractive tool for criminals. Many Governments fear that criminals can exploit the decentralized nature of this digital currency.

Many others cite that Bitcoin and other cryptocurrencies may have been used in cyber-terrorism and financed cyber-crimes. Furthermore, there are several suspicious and unreliable platforms that look to swindle users and investors.

For these reasons, a completely uncontrolled currency, like many cryptocurrencies, may be a concern to many governments. Many authorities around the world continue to struggle to establish a regulatory framework for Bitcoin. However, once they do, Bitcoin could become even more legitimized in the global financial space. 

Is Bitcoin Legal?

But, as mentioned above, Bitcoin can also be considered legal. It may sound contradictory, but it does make sense. Bitcoin allows you to own your money, and spend it with anyone, anywhere, and anytime. Bitcoin is a decentralized currency, separate from the global economy. Therefore, its value is not necessarily tied to the economy of the country that each individual lives in. Everyone around the world can transfer Bitcoin, with minimal transaction fees. 

Bitcoin is legal to use to buy goods and services from online retailers that will accept it. Bitcoin has also been used for donations and fundraisers. It is also legal to make money through Bitcoin or other related cryptocurrencies as long as it is traded or exchanged without the influence of illegal activity.

As a result, it is vital to know in which countries Bitcoin is considered legal and in which it is not. For example, Bitcoin usage is legal in the United States and Canada. It is also legal in some European countries such as France, Germany, Russia, among others. However, it still is illegal in countries like Bolivia, Ecuador, Vietnam, and Pakistan. 

Conclusion

In summary, you are not the only one who is wondering or who has wondered if Bitcoin is legal. If you use Bitcoin for the right purposes, you are not engaging in illegal activities. We are sure that Bitcoin will continue to grow alongside with blockchain technologies, as they are continuing to gain notoriety and legitimacy in the mainstream of society.

This will enable the world to create a wide variety of new and exciting innovative products. It will also help to write a better framework for the laws and regulations around Bitcoin. Nonetheless, it is important to be aware that as new technologies emerge, new ways to try to scam people will appear as well. So, if you are a new user in the cryptocurrency world, it is best to learn the best practices for keeping your money safe. 

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Edmund McCormack
Tech industry veteran and blockchain technology investor. Simplifying cryptocurrency for almost a decade.

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