“To Jail for Bitcoin” or a List of Countries Where You Should Not Mention Cryptocurrency

Bitcoin jail

Governments of leading countries around the world are still discussing the technological phenomenon of cryptocurrency and deciding what to do with it. There are no single international rules for the regulation of digital currencies, as long as this issue is solved individually within each individual state. In this article we will consider which countries recognized Bitcoin, where it was banned and what all of this will lead to for market participants.

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  1. Importance of cryptocurrency on the global scale
  2. Countries which recognized cryptocurrencies
  3. Countries which banned cryptocurrencies
  4. Conclusion

1. Importance of cryptocurrency on the global scale

We live in an era of active development of digital technologies that can change the world beyond recognition in a very short period of time. Cryptocurrencies have gained such popularity due to the fact that they are based on innovative blockchain technology. Now the market has a huge number of different coins and tokens. It is worth noting that the vast majority of them have no chance of a bright future. There are no guarantees that even Bitcoin itself will be the leader of the industry in 5 to 10 years. But what we can be sure of almost 100% right now, is that blockchain projects will be able to change the real sectors of the economy in the next decade.

The current situation is very similar to the boom and collapse of “dotcoms” at the beginning of 2000s. At that time, a huge number of search engines and other Internet resources were being developed, but only a few ones that have become real whales in this industry survived to this day

2. Countries which recognized cryptocurrencies

Saying the word “cryptocurrencies”, we mean, first and foremost, Bitcoin, as it is a reference point for the digital coin industry. It should be noted that most people, who are not very experienced in this topic, are convinced that Bitcoin is very popular among criminals, because you can make absolutely anonymous transactions with it. But this is only half true, since in fact Bitcoin’s transactions are not hidden, and in order to keep them secret, it is necessary to use special mixers, which, by the way, are constantly closed. To cut the long story short, achieving complete anonymity in the Bitcoin network is a rather complicated procedure. Other coins are better able to cope with this task, for example, Monero. Let’s go through the list of countries that have recognized Bitcoin as a means of payment or are on the way to legalizing cryptocurrency:

The US occupies one of the most tolerant positions as for cryptocurrencies. Given that this state has a key role in the global economy, this gives optimism to all market participants in the global perspective. Treasury classified Bitcoin 5 years ago as a company that provides financial services. Coins must be declared, they are regarded as property, thus, it is necessary to pay taxes if you own them.

Canada is also characterized by loyalty to cryptocurrencies. Regulatory authorities of the state are watching to ensure that coins are not used for money laundering. Cryptocurrency in Canada is regarded as a commodity, and transfers are considered barter. The tax code takes into account whether the transaction was an investment or a trade transaction.

Australia allows to carry out various operations with cryptocurrency. Tax Inspectorate classifies coins as a financial asset. They need to be declared, and the owners must pay taxes.

The European Union introduced mandatory verification of users this April. This should solve the problem of money laundering. According to the representative of the EU, in only a year about 5.5 billion dollars in cryptocurrency were laundered in the territory of member countries.

There is also a number of countries besides the abovementioned world giants, where Bitcoin is officially recognized. Today, we will not write about each of them, since at the moment they do not affect the world economy significantly.

3. Countries which banned cryptocurrencies

There are also states that perceive cryptocurrencies as a threat for various reasons, and protect their citizens from them in every way possible. So, let’s review the main ones:

China is the largest manufacturing center of the planet, China has a great influence on the world economy. In the Celestial Empire cryptocurrencies are prohibited for all financial institutions. However, they are completely legalized for individuals. Despite this, China is one of the key cryptocurrency markets of the planet.

Vietnam was opposed to implementation of cryptocurrencies at the dawn of their emergence. In this country, cryptocurrencies are completely prohibited for both individuals and legal entities.

Bolivia regards cryptocurrencies as financial pyramids. In this country you can go to jail for any type of cryptocurrency advertising.

Ecuador has banned all existing cryptocurrencies, but the authorities plan to create their own coins.

Also, there are countries where cryptocurrencies have not been determined with a legal status. For example, in the Russian Federation, the draft law on the regulation of cryptocurrencies was published only in January of this year, which does not prohibit their use, but specifically regulates their movement. In fact, this bill still has to be substantially finalized and reviewed by the State Duma. There is no clear time frame on this issue.

4. Conclusion

In fact, the countries where cryptocurrencies are legalized and controlled by the regulatory authorities are quite numerous. It is also worth noting that these states are the first-class states which control the entire civilized world. Decisions of states that totally prohibit the use of digital coins do not affect the world economy at the moment.

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