Many countries are still on the fence about the legality of cryptocurrency. They do not outrightly ban it, but they have not taken a stand for it either. We have compiled a list of countries that have explicitly accepted bitcoin as a form of payment in their country or region.
1. United States
The United States’ virtual currency law is a financial regulation that applies to virtual currency transactions in the United States. The Commodities Future Trading Commission has regulated virtual currencies as commodities and will continue to do so. The Securities and Exchange Commission (SEC) of the United States has stated that cryptocurrencies are securities and that existing securities laws will apply to digital assets. In the United States, cryptocurrency exchanges such as the Bitcoin Circuit trading App ,Coinbase are legal. The United States is also working on legislation governing the trading and exchange of cryptocurrencies. The Treasury Department has published a tax plan that includes a section on cryptocurrency. According to the paper, exchanges must report all crypto transactions worth more than $10,000 in fair market value.
2. European Union
Cryptocurrencies are legal throughout the European Union, subject to individual member state regulations; the EU recognizes Bitcoin and other cryptocurrencies as crypto assets. Cryptocurrency taxation rates, on the other hand, vary by country. The European Union is planning to regulate the digital asset industry, and a number of bloc-wide initiatives are already in the works.
Most developed countries, including Canada, allow bitcoin to be exchanged and traded. Bitcoin is perfectly legal in Canada, and anyone can buy it. The government even has an official page dedicated to digital currencies, despite the fact that they are not considered legal tender. It is taxed as a commodity under the Bank of Canada Act. Crypto tokens are classified as securities under securities laws.
Since 2017, cryptocurrencies and cryptocurrency exchanges have been legal in Australia. Bitcoin is subject to Capital Gains Tax in Australia, and the Australian Securities and Investments Commission (ASIC) has issued regulator guidelines that crypto-asset participants, including issuers of crypto assets, miners, transaction processors, exchanges and trading platforms, payment and merchant service providers, wallet and custody providers, and consumers, must follow.
5. El Salvador
El Salvador officially adopted Bitcoin as legal tender in June 2021, becoming the first country to do so. A few days later, the bitcoin law was passed, and it went into effect on September 7. The president also announced the launch of an official bitcoin wallet, Chivo, which is a Salvadoran slang word for “cool,” and is designed to work similarly to PayPal, holding both a dollar and a bitcoin balance. The icing on the cake was that new users would receive a sign-up bonus of $30 in bitcoin. Salvadorans, on the other hand, are not taking the sudden change lightly, but it appears that they are warming up to it.
In Denmark, the government does not regulate Bitcoin, and it is not considered legal tender. The Danish government, on the other hand, allows Bitcoin to be used as an asset, more like a commodity, and residents of Denmark are permitted to use Bitcoin for any legal activity, as well as exchanges that support it. Demark residents have access to over 20 popular exchanges, including Coinbase and Coinmama.
Following the French court decision to equate bitcoin to money, the French government allowed bitcoin to be accepted as money in 2019. Aside from exchanges, you can also use bitcoin ATMs in France, which allow users to instantly buy and sell cryptocurrency with cash. However, most of them require at least a phone number to be entered before a transaction can be completed.
The purchase, sale, and exchange of cryptocurrencies, bitcoins, and altcoins are legal in Germany, and a virtual currency regulation is being considered. As part of the review, a distinction was made between cryptocurrency tokens, security tokens, and utility tokens to determine which existing laws would apply to them. Cryptocurrency will be regulated under banking laws, and related services may require a license; security tokens will be regulated as securities under banking laws, as well as capital market and investment laws; and utility tokens’ regulatory treatment is still unclear because they are more like services than commodities.
In April 2017, Japan legalized cryptocurrencies as a form of payment, and all crypto exchanges were required to register with the Financial Services Agency (FSA). According to the Japanese Payment Services Act, crypto assets are payment methods that are not dominated by fiat currency and can be used to pay unspecified individuals.