First of all, this peer-to-peer cryptocurrency Bitcoin first appeared in 2009, introducing the world to the concept of decentralized money. Many customers question if they can use Bitcoin legally as tax authorities, enforcement agencies, and regulators throughout the world debate how to regulate it.

This article reveals in which country you can use your Bitcoins legally and in which country you cannot and should not try to use your Bitcoins.

Bitcoin is Legal in these Countries

Bitcoin can be used to execute anonymous transactions between any account holders throughout the world. For governments, this has resulted in some currency concerns. While some lawmakers and officials may oppose its usage due to the lack of control and illicit linkages, many have enacted legislation under their country's anti-money laundering and counter-financing of terrorism laws (AML/CFT) to limit its use for these purposes.

The Library of Congress (LOC) listed 103 nations in November 2021 whose governments asked their financial regulatory bodies to draft policies and goals for financial institutions addressing cryptocurrencies and their usage in anti-money laundering and counter-terrorist financing.

The list of countries where Bitcoin is legal starts with the United States of America

1. United States Of America

Bitcoin is described by the U.S. Department of Treasury as a convertible currency having a real-world equivalent or one that may be used as a substitute for actual money.

2. European Union

Bitcoin and other cryptocurrencies are classified as cryptoassets by the European Union. Although it is not illegal to use Bitcoin in the EU, the European Banking Authority, the union's currency regulatory body, has warned that crypto-asset activities are beyond its control and continues to caution the public and companies about the dangers of cryptocurrencies.

3. Canada

Canada, like its southern neighbor, the United States, maintains a largely pro-bitcoin posture. For income tax reasons, the Canada Revenue Agency (CRA) considers bitcoin to be a commodity. This implies that any profit made from a Bitcoin transaction is considered commercial profit or a capital gain, and must be recorded as such.

4. Australia

The Australian Taxation Office, like the Canadian Taxation Office, views Bitcoin as a financial asset having value that can be taxed when certain circumstances occur. A capital gains tax is triggered if you trade, swap, sell, give, convert to fiat cash, or use Bitcoin for purchases. For tax purposes, you'll also need to keep track of any Bitcoin transactions you make.

5. El Salvador

El Salvador is the only country in the world where bitcoin has been designated legal money. The country's Congress supported President Nayib Bukele's proposal to legally use bitcoin as a mode of payment in June 2021.

6. Denmark

7. France

8. Germany

9. Iceland

10. Japan

11. Mexico

12. Spain

13. United Kingdom

14. Ukraine

Bitcoin is Illegal in following Countries

While Bitcoin is popular in many areas of the world, its volatility and decentralized nature have caused concern in other nations. Some see it as a danger to their present monetary systems, while others fear it will be used to fund illegal activities such as drug trafficking, money laundering, and terrorism. Several countries have openly prohibited the use of digital currency, while others have attempted to eliminate any banking and financial system support required for its trade and use.

In this countries where Bitcoin or other cryptocurrencies are illegal/banned to be used, there are two categories such us countries with implicit bans and countries with absolute bans.

Countries with implicit bans includes 13 nations which are : Bahrain, Burundi, Cameroon, Central African Republic, Gabon, Georgia, Guyana, Kuwait, Lesotho, Libya, Macao, Maldives, Vietnam, Zimbabwe

Countries with absolute bans where the use of any cryptocurrency can get you in troubles includes 9 nations which are: Algeria, Bangladesh, China, Egypt, Iraq, Morocco, Nepal, Qatar, Tunisia

CONCLUSION

Be aware that the use of bitcoin or other cryptocurrency may vary from the country in which you are in. Make sure to ask from relevant government offices before getting involved in any Bitcoin or cryptocurrency activity.