Interest in cryptocurrency has increased in the past few years. Pew Research Center Estimates 9 out of 10 Americans have heard of cryptocurrency. Who is the notorious Matt Damon? Super Bowl ad According to President Joe Biden’s March executive order asking the government to consider the risks posed by digital currencies, crypto is a hotter topic now than ever.
We have spent dozens of hours compiling the most relevant and useful information regarding cryptocurrency and its legal status around the world. The feasibility, legality, and even the practicality of cryptocurrencies are still hotly debated. As an increasing number of countries are becoming more and more accepting of cryptocurrencies, albeit to varying degrees, a deeper understanding of the legal status of cryptocurrencies where you live will help you make the right decisions when considering whether this asset is right for you. Before we take a look at the legal status of cryptocurrencies around the world, let’s start with their beginnings.
A Brief History of Cryptocurrency
In order to better understand where we are going, we need to know where we have been. The following timeline will give you some context and show you how cryptocurrency (or at least the concept of digital money) has been around for longer than some of us have been alive.
- The concept of electronic money dates back to 1983, when it was proposed by computer scientist David Chum.
- In 1989 Chaum attempted to make his vision a reality by founding DigiCash, the first company to use cryptographic protocols, such as public and private keys, to complete transactions electronically. DigiCash has never been able to grow its user base, and in 1998 it declared bankruptcy, being sold for assets in 2002.
- Bitcoin has been in use since 2009 and is the oldest decentralized cryptocurrency, setting the standard for cryptocurrencies as we know them.
- In August 2014, the UK commissioned a study on cryptocurrency and the role it could play in its economy, focusing on regulation and consumer protection.
- In June 2021, El Salvador became The first country to adopt Bitcoin as a legal currencyalthough its de facto adoption by the people was a challenge to the Salvadoran government.
- In September 2021, China declared all cryptocurrencies illegal.
- In March 2022, Biden signed an executive order calling for measures to ensure the protection of consumers and investors, as well as exploring the possibility of a US central bank digital currency.
Legal status by country
It is easiest to name the countries where crypto is completely illegal. according to US Library of CongressAs of November 2021, nine countries have completely banned cryptocurrency. These countries are Algeria, Bangladesh, China, Egypt, Iraq, Morocco, Nepal, Qatar and Tunisia. Another 42 countries have an implicit ban on the asset, generally by not allowing financial institutions in the particular country to deal with crypto companies as clients.
In general, wherever encryption is legal, it is subject to the following:
- Anti-Money Laundering (AML) Regulations: This allows the government to monitor cryptocurrency trading operations to prevent illicit financial activity.
- Taxes: Cryptocurrency taxes vary from country to country. For example, in the United States, the IRS charges cryptocurrencies as property, not income. However, many countries in the European Union tax it as income, with no value-added tax (VAT) applied. VAT is a tax on goods and services, hence the contrast to how it is treated in the United States
|Jurisdiction||Official ban?||Implicit ban?||Applying tax laws?||Do anti-money laundering and terrorist financing laws apply?|
|the two seas||number||yes||Unavailable||yes|
|Bangladesh||yes||number||There is no information||yes|
|Boys||number||yes||There is no information||There is no information|
|Burkina Faso||number||yes||There is no information||There is no information|
|Burundi||number||yes||There is no information||There is no information|
|Cameroon||number||yes||There is no information||There is no information|
|Central African Republic||number||yes||There is no information||There is no information|
|Chad||number||yes||There is no information||There is no information|
|Côte d’Ivoire||number||yes||There is no information||There is no information|
|Democratic Republic of the Congo||number||yes||There is no information||There is no information|
|Gabon||number||yes||There is no information||There is no information|
|the moldive Islands||number||yes||There is no information||There is no information|
|Financial||number||yes||There is no information||There is no information|
|Nepal||yes||number||There is no information||There is no information|
|Niger||number||yes||There is no information||There is no information|
|Sultanate of Oman||number||yes||Unavailable||yes|
|Pakistan||number||yes||There is no information||number|
|Republic of the Congo||number||yes||There is no information||There is no information|
|Kingdom Saudi Arabia||number||yes||Unavailable||yes|
|Senegal||number||yes||There is no information||There is no information|
|Togo||number||yes||There is no information||There is no information|
Other Tax Laws: Yes
|The United Arab Emirates||number||yes||yes||yes|
Crypto as a daily currency
Daily purchases with Bitcoin are more popular than ever. Several methods facilitate this, including:
- Currency Mapa website that allows you to find sites near you that accept crypto directly as payment
- Crypto debit cards, which allow you to use cyrpto to pay anywhere a Visa or Mastercard is accepted, done by converting the cryptocurrency in your wallet into dollars upon purchase
- sites like Petreville And the CoinGatewhich allows you to buy gift cards using your crypto
All of these offer convenient ways to use cryptocurrencies as cash, but if what you’re looking for is a quick way to buy cryptocurrencies with your money, you’ll be glad to know, according to ATM Radar for CoinsThere are over 38,000 crypto ATMs around the world.
All emerging technologies inevitably go through some growing pains. The adoption of any new system carries the same relationship between risk and reward that applies to investments. With cryptocurrency, you get this relationship twice as much, as it is a relatively new technology and investment. As with new technology, education is the cornerstone of making sound decisions.
We hope that the facts in this post will help you learn more about cryptocurrency as a whole and put you on the path to deciding whether or not cryptocurrency is right for you. If you enjoyed what you read here – and I hope so, if you made it this far – please consider sharing this with your friends and family.