The Countries That Will Either Legalize or Prohibit Bitcoin By 2024
The Countries That Will Either Legalize or Prohibit Bitcoin By 2024. You should research the legality of Bitcoin in your jurisdiction before buying, selling, or spending it. Cryptocurrency legislation varies across several countries. You can use Bitcoin like money, pay taxes with it, buy something with it, or even exchange it like a commodity in some of these places. Having Bitcoin in your possession is enough to get you in jail in several nations. Cryptos like Bitcoin are now in a legal grey area since no one has bothered to regulate them.
Here is a global map showing the various countries where Bitcoin is legal:
Bitcoin may have been around for a while, but it is still relatively young compared to other forms of currency. Before Bitcoin can completely supplant the world’s money supply, it might take a decade or even decades. The once-fanciful notion of Bitcoin as the world’s money is getting closer to being a reality with its increasing usage and becoming legal tender.
This article will cover where Bitcoin and cryptocurrencies are
Countries where Bitcoin is banned
The vast majority of people around the world are on board with Bitcoin and other cryptocurrencies. However, they are illegal in some countries and their use is even more restricted. At least nine nations have banned Bitcoin, mostly because of its decentralized structure, which poses a danger to their existing financial system, or simply because appropriate legislation has not been adopted. Here they are:
- Algeria. Arguing that they are not backed by anything physical, Algeria has banned cryptocurrencies.
- Bolivia. The Central Bank has prohibited the use of cryptocurrencies because of their unregulated nature.
- Bangladesh. Citing possibilities for money laundering and being unauthorized by the Bangladesh bank, Bitcoin and other cryptocurrencies are illegal.
- Dominican Republic. Citing that they are not legal tender, cryptocurrencies are illegal in the Dominican Republic.
- Ghana. Although cryptocurrencies are regarded as illegal in Ghana, the Bank of Ghana sees blockchain’s potential and is assessing how to fit it into its financial structure.
- Nepal. Nepal’s central bank has banned Bitcoin because it is not a legal currency.
- The Republic of Macedonia. Citizens are warned that they cannot have crypto securities abroad. Crypto is still illegal.
- Quatar. Citing price volatility, the possibility of financial crimes and lack of central government support, cryptocurrency activity is banned.
- Vanuatu. Several news outlets broke the story that Vanuatu accepted Bitcoin in exchange for citizenship. The country’s Citizenship Office, however, denied this. The country claims to accept only USD in exchange for citizenship. ‘Prohibit Bitcoin’
Countries where the use of Bitcoin is legally restricted
Some nations have tight regulations that make it difficult, if not impossible, to buy, sell, or use Bitcoin. Financial institutions in these jurisdictions are forbidden from doing business with cryptocurrency exchanges and organizations; in the most severe instances, the countries have outright outlawed cryptocurrency exchanges (e.g., China).
- Bahrain. You need a license to use crypto-asset services in Bahrain.
- China. China’s digital Yuan has issued on-chain wages, a first for the country. Although having researched cryptocurrencies for many years, China is treading cautiously in the market, listing a whole gamut of rules in terms of restricting Initial Coin Offerings (ICOs). China had the resources to operate 70% of Bitcoin mining facilities, but that has been regulated by officials for environmental reasons.
- Hong Kong. A law may be enacted that might restrict crypto trading to individuals who have over $1 million in their investment portfolio. Other than this, Hong Kong emphasizes certain regulations when it comes to ICOs. Exchanges also need regulations to be enacted.
- Iran. Financial institutions are not permitted to handle cryptocurrencies.
- Kazakhstan. There are heavy cryptocurrency restrictions by the National Bank with exchanges and mining banned. A complete ban on cryptocurrency has been contemplated.
- Russia. Crypto is legal in Russia but is restricted. Banks and exchanges have to be registered by the Central Bank and crypto cannot be used as a payment method.
Despite bans and restrictions, Bitcoin and other cryptocurrency exchanges and use continue. Nobody can ban decentralized cryptocurrencies because of their nature. Numerous individuals in these nations still trade Bitcoins on sites like Local Bitcoins, Paxful, or Bisq, as evidenced by their trading volumes. ‘Prohibit Bitcoin’
This proves that no government can ban Bitcoin until they ban the internet nationwide.
Countries where Bitcoin is legal
Upbeat news: Bitcoin and other cryptocurrencies are officially recognized and lawful in at least 111 states, according to research.
As an example, big nations such as Canada and the US often support cryptocurrency while simultaneously attempting to combat fraud and anti-money laundering. At the same time, EU member states cannot issue their cryptocurrency, although the bloc does support the legalization and regulation of crypto exchanges.
As of 2024, the most Bitcoin-friendly countries where BTC is legal are:
- Antigua and Barbuda: A bill was passed to protect exchanges and crypto users. Bitcoin could become legal tender soon in the country as you can use Bitcoin to pay for citizenship.
- Australia: Bitcoin and other cryptocurrencies have been legal in the country since 2017 and are subject to Capital Gains Tax
- Barbados: Cryptocurrencies operate legally in Barbados. Barbados has its digital currency, DCash, that has been active since 2022
- Belgium: Cryptocurrencies are subject to a miscellaneous income tax. Crypto is not considered legal tender, even though it is recognized as a possible alternative to money
- Bulgaria: Licenses are not required to engage in crypto businesses, and they are as income from the sale of financial assets
- Cayman Islands: New laws have been passes regulating cryptocurrencies. They have favourable tax laws for businesses, including cryptocurrency businesses.
- Chile: Cryptocurrencies are under the country’s money policies. There are protections for cryptocurrency exchanges in Chile.
- Croatia: There is a tax-free threshold of 3800 HRK and a capital gains tax of 12%-18%. The government warns of the high-risk nature of crypto.
- Dominica: Planning to test out a cryptocurrency, DCash, the crypto outlook is positive in the country. There was a project to hand out Bitcoin to the population, but it had been cancelled. ‘Prohibit Bitcoin’
Countries Where Bitcoin is an Official Legal Tender
Only El Salvador has officially acknowledged Bitcoin as legal money. It was known to be the investor’s risk before this. Investors in bitcoin should be ecstatic. The recognition of Bitcoin as legal money in any nation is a monumental development that justifiably merits the extensive coverage it has received. If more nations follow El Salvador’s lead and embrace Bitcoin, it might set a significant historical precedent.
Countries where Bitcoin is neither legal nor illegal
The fate of Bitcoin is still up in the air in several nations. In these situations, Bitcoin’s ownership and use are both perfectly lawful, but the cryptocurrency’s status is unclear and unprotected. Some nations have already begun to legislate Bitcoin and other crypto while others are waiting to see what happens. ‘Prohibit Bitcoin ‘
These undecided countries include:
- Albania: Warns citizens to use crypto responsibly.
- Afghanistan: The Ministry of Health plans to use blockchain to identify fraud in medicine. Still, crypto’s legal status is unclear.
- Angola: There is no legislation on it.
- Anguilla: They have policies regulating ICOs but make no mention of banning cryptocurrencies outright.
- Argentina: Specified that their Central Bank is the only one that can issue legal currency and emphasizes that citizens treat crypto
- responsibly.
- India: Although there was a fear of a ban earlier in 2021, the government is going to create a board that will decide how to handle crypto.
- Honduras: Bitcoin and other crypto are not by the country’s Central Bank. The individual is solely responsible for the risks.
- Kenya: The government has issued warnings of crypto’s volatile nature, lack of and susceptibility to criminal activity and urges caution to the citizens who want to engage in it. ‘Prohibit Bitcoin ‘
Crypto crackdown fears have long plagued Bitcoin. That’s why many individuals still prefer traditional banks to trustless platforms. Regardless, more governments are entering the digital innovation sector. Governments that oppose the emerging sector may fall behind. Ironically, these countries are among the poorest, and Bitcoin and crypto crackdowns aren’t helping. Instead, encouraging crypto firms with supportive policies would bring innovation, capital, tax money, and more, raising everyone’s standard of living.
