If you want to buy, sell or spend Bitcoin, you should check if it is legal in your country.
In fact, there are many countries with different cryptocurrency regulations. Some of them even call Bitcoin so it can be used as money, pay taxes, buy goods or act like a commodity.
In other countries, even the mere possession of Bitcoin can put you in jail. Others have not even bothered to regulate it, so Bitcoin and other cryptocurrencies are in legal limbo.
The legality of Bitcoin around the world can be seen in this map:
Countries where Bitcoin is banned
Bitcoin and cryptocurrencies are generally welcome in most parts of the world. However, some countries have actually banned them or their use. Whether prohibited by the decentralization of bitcoins, the threat to the current financial system, or simply because no such rules have been issued, there are at least nine countries that have opted for it by May 2019. These are:
Afghanistan, Pakistan, Algeria, Bolivia, Bangladesh, The Republic of Macedonia, Saudi Arabia, Vanuatu, Vietnam
In addition to the countries where BTC is banned, there are also countries where Bitcoin is somewhat limited and can not be traded or used for payments. In such states, banks and other financial service providers are prohibited from trading in crypto currency exchanges and corporations, and in extreme cases, countries have even banned crypto exchanges.
China, India, Ecuador, Indonesia, Morocco, Zambia, Nepal, Egypt, American Samoa, Qatar
Please note that despite the prohibitions and restrictions, these laws have not eliminated Bitcoin or other crypto-currency businesses and their use. Due to the nature of decentralized cryptocurrencies, it is simply impossible to ban them. Many individuals in these countries still use sites like Local Bitcoins, Paxful or Bisq to trade with others.
This is just to prove that no government has the power to ban Bitcoin unless it prohibits the use of the Internet for the entire nation.
Countries where Bitcoin is legal
On a positive note, there are at least 111 states where Bitcoin and cryptocurrencies are legally recognized and legal.
For example, large countries such as the United States and Canada have a generally crypto-friendly attitude to cryptocurrencies and at the same time seek to enforce anti-money laundering laws and prevent fraud. In the meantime, Member States can not introduce their own cryptocurrency in the European Union, but crypto-exchanges are encouraged to be legalized and to comply with regulations.
Since May 2019, the Bitcoin-friendly countries where BTC is legal are:
Japan, Gibraltar, Malta, Ukraine, Switzerland, The Netherlands, Lithuania, Estonia, United Kingdom, Germany, Bermuda, Slovenia, Singapore, Georgia, Belarus, Hong Kong.
Countries where Bitcoin is neither legal nor illegal
Some countries have not yet decided what to do with Bitcoin. In such cases, the use of BTC is legal in the sense that you can own it, but there are no clear rules or legal protection regarding its status. These countries either already create a legal framework for bitcoin and cryptocurrencies or have chosen a wait-and-see approach. These “undecided” countries include:
Albania, Andorra, Argentina, Barbados, Colombia, French Guiana, Gabon, Jamaica, Jordan, Kazakhstan, Kenya, Kosovo, Kyrgyzstan, Malaysia, The Maldives, Mauritius, Nigeria, Panama, Paraguay, Peru, Tunisia, United Arab Emirates Tanzania, Uruguay.
The fear of widespread cryptocurrency burglaries has long been felt in Bitcoin. Because of this, many people are wary of the trusted system and instead rely on traditional systems.
Regardless, more and more governments are turning to digital innovation and playing a role in the industry. At the same time, there is a danger that legal systems that oppose the emerging industry will lag behind. Ironically, these countries are already among the poorest nations in the world, and widespread bitcoin and cryptocurrencies do not appear to provide favorable results for improving the situation. On the contrary, the inclusion of crypto-currency deals with favorable regulations provides an excellent opportunity to improve innovation, capital, tax revenues and living standards for the entire population.