Nations where Bitcoin is accepted
On a positive note, research shows there are at least 111 states where Bitcoin and cryptocurrencies are recognized by law and are legal.
For instance, major countries like the United States and Canada hold a generally crypto-friendly attitude towards cryptocurrencies while also trying to enforce anti-money laundering laws and prevent fraud. Meanwhile, in the European Union, the member states are not allowed to launch their own cryptocurrency, but crypto exchanges are encouraged to be legalized and comply with the regulations.
Nations where Bitcoin is accepted
As of January 2022, 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 own digital currency, DCash, that has been active in 2022.
Belgium. Cryptocurrencies are a â€˜miscellaneous income taxâ€™. Crypto is not considered legal tender, even though it is recognized as a possible â€˜alternative to moneyâ€™.
Bulgaria. Licenses are not required to engage in crypto businesses and they are treated as income from sale of financial assets.
Cayman Islands. New laws have been passed regulating cryptocurrencies. They have favorable tax laws for businesses, including cryptocurrency businesses.
Chile. Cryptocurrencies are under the countryâ€™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, crypto outlook is positive in the country. There was a project to hand out Bitcoin to the population but had been canceled.
Estonia. Crypto is considered virtual currency and have digital value as a payment method, although it is not considered legal tender.
Finland. Crypto is legal and regarded as virtual currency. The Financial Supervisory Authority is the authority on virtual currencies.
Germany. Crypto assets are allowed to be bought, sold and held as long as they are from a licensed institution.
Indonesia. Cryptocurrencies have been legal in Indonesia since 2019. It is regarded as a commodity when trading and not as a payment method.
Italy. Regarded as a virtual currency, cryptocurrencies are subject to corporate and personal income tax.
Ireland. Crypto is regarded as virtual currency and is taxed differently based on several scenarios.
Japan. Crypto assets are under the â€˜miscellaneous incomeâ€™ category.
Lithuania. Lithuania became one of the first countries to have a framework regarding cryptocurrencies and taxation, with earnings up to 2500 euro considered tax free.
Malta. Malta is known for being the home to some of the biggest cryptocurrency exchanges like Binance and OKEx because of their open stance when it comes to crypto.
Mauritius. Their regulations are under the category of Digital Asset.
Marshall Islands. The SOV, or sovereign, is the legal currency of the Marshall Islands and itâ€™s powered by blockchain.
New Zealand. Cryptocurrencies are compared to gold and subject to taxes.
Norway. Cryptocurrencies are considered assets and taxed.
Philippines. Cryptocurrencies are in the security and investment contract categories and are subject to regulations by the SEC. Any financial services that are related to cryptocurrencies, like exchanges, are subject to the guidelines of the Philippines Central Bank.
Serbia. Crypto is regarded as a digital asset for taxes. Crypto services need a license.
South Korea. Crypto is legal and subject to anti-money laundering laws while being closely regulated by the government. Financial institutions are required to report cryptocurrency transactions.
Sweden. Trade in Bitcoin is regarded as a financial service. Gains are taxed as business income.
Switzerland. As early as 2017, crypto was being accepted as payment by the Commercial Register Office. Institutions need licenses in order to operate cryptocurrencies. There are extensive regulations implemented with a very positive outlook on crypto as a whole.
Ukraine. Crypto is classified as property in the country. It is the growing destination to several crypto businesses.
United Kingdom. Exchanges need to fit certain FCA requirements. Bitcoin is â€˜private money.â€™
United Arab Emirates. Considered a crypto-friendly country, UAE has its own Emirates Blockchain Strategy 2022, to move a majority of their transactions to blockchain and becoming a government powered by blockchain.
United States. Crypto is subject to tax laws in the United States. It is regulated if the sale of securities involves cryptocurrencies.
Uzbekistan. Crypto is now legal in the country. Income gained from cryptocurrencies is not taxed and exchanges need specific requirements and licensing to be in operation.
Venezuela. Having created its own petroleum-backed cryptocurrency in 2017, Venezuela seemed like a prime candidate for widespread crypto adoption. It was declared illegal in 2018 and efforts to make it legal again came about in January 2020. Mining, which had been illegal and those who did it were charged, have had their charges dismissed. Cryptocurrency activities are now legal in Venezuela.
Countries Where Bitcoin is Official Legal Tender
El Salvador. This is the only country so far that recognizes Bitcoin as legal tender. Before this action, it was recognized as the risk of the investor. Bitcoin investors should rejoice. Bitcoin as legal tender in any country is a huge event, one that deserves all the press it has been getting. El Salvadorâ€™s move could be a notable precedent in history if more and more countries begin to adopt Bitcoin in the future.