Is bitcoin legal or not? This question is the most frequently asked one. Well, for the government, understanding the process of bitcoin and how it works was very difficult. It is a decentralized global digital asst that no one owns. The method of mining and regulating bitcoin was also very different from the other currencies. The government was having a hard time figuring out that how they could gain profit from them. They had to find a way to regulate taxes on these profits.
Moreover, cryptocurrency is not functional only in a specific part of the world. Anyone from any part of the world can use this platform and earn from it. Different countries tried to regulate their state’s cryptocurrency platforms in their ways.
Legality Of Bitcoins In the US
We can say that after the launch of bitcoin or cryptocurrency, the government didn’t know anything about it. Such a platform did not inform them, neither they care. But during the investigation of the investment in the dark web, the FBI released a report stating that the dark web accepted the investment only in bitcoins. This news was a bit appalling and concerning for the government, and they started to do their research o the working of this currency.
The US government never declared Bitcoin illegal in the US. The state works very hard to develop the same policy for the taxation and regulation of this currency.
Moreover, SEC is constantly warning the citizens about the risks that are involved in bitcoin mining. It requires peer-to-peer interaction—no benefiting party s being the investors. There were a lot of chances of fraud in the early times of fraud. It was a precarious platform. But now, due to the introduction of the blockchain system, that risk has en reduced to a considerable extent.
The Internal Revenue Service of the US regarded the bitcoin currency as property. It means that the users would pay tax every time they perform any transaction.
In 2021v, china banned cryptocurrency. The government notified all the companies not to take any payment involving bitcoins. However, the people who already have a stock of bitcoin can keep it with them. Similar to the united states, the government of China did not care about cryptocurrency till 2017. Once this matter caught the attention of the state administrators, they immediately banned the cryptocurrency in the whole country. This platform is risky, and that was their biggest concern. They ordered all the banks not to accept any payment in ICO.
Nowadays, china is more interested in establishing its blockchain system. It is working on launching its virtual currency. The value of that currency will be equal to one Chinese yen.
In Russia, the citizens’ are allowed to use cryptocurrency, but they cannot buy the goods and services from it. Moreover, the government prohibits federal employees and their families from using the bitcoin currency.
Bitcoin was declared legal in japan in 2016. But afterward, due to hacking, japan has started working on the security and protection of these transactions. Moreover, soon it will launch its cryptocurrency