The status of Countries where Cryptocurrency Trading is Legal varies substantially from state to state. In many of them, it is still undefined or changing. While most countries do not make bitcoin usage illegal, its status as money (or a commodity) varies, with varying regulatory implications.
Others have banned or restricted its use and trade. The classification of cryptocurrencies has also been varied among government agencies, departments, and courts. List of Countries where Cryptocurrency Trading is Legal. Cryptocurrency is also subject to regulations and bans.
1. El Salvador
El Salvador has already begun using Bitcoin as a means of storing and paying for wealth. Founded by Jack Mallers, creator of the mobile payment apps Zap and Strike. In addition, he helped draft a bill to make Bitcoin legal tender in the country.
By converting Bitcoin to legal tender, people can move and convert it without having to worry about tax consequences.
In El Salvador, bitcoin is the first legal tender and first world currency said Mallers during the 2021 Bitcoin conference in Miami.
2. Paraguay
Paraguayan Congressman Carlitos Rejala was the first politician outside of El Salvador to express interest. He called on the country to progress along with the new generation through a tweet. Congressman has even added a laser-eye photo to his Twitter account.
3. Panama
After hearing about the movement in El Salvador, a politician from Panama shared similar comments on Twitter. Gabriel Silva, a congressman from Panama, said Panama could not be left out of the process.
“It is important. Panama is also not to be left behind. If we want to be a true technology and entrepreneurship hub, we have to support cryptocurrencies We will be preparing a proposal to present at the Assembly. You can contact me if you are interested in building it,” Silva said.
4. Brazil
Brazil’s State Deputy for the Rio Grande do Sul, Fabio Ostermann, joined the conversation on Twitter and retweeted a post from the popular Bitcoin account, Documenting Bitcoin. Ostermann also added laser eyes to his Documenting Bitcoin post, indicating that he supported Bitcoin.
Gilson Marques, another Brazilian Federal Deputy, uploaded a new laser eyes profile picture with the hashtags #Bitcoin and #ToTheMoon. In the Chamber of Deputies, Marques also said he was the first Brazilian deputy to say “tax is theft.”
5. Mexico
Senator Indira Kempis de I. As a sign of support, she added lasers to her Twitter profile and shared some posts about Bitcoin. Furthermore, she retweeted Tyler Winklevoss who said, “First they ignore you, and then Paraguay, Argentina, Panama, Brazil, El Salvador, and Nicaragua embrace #Bitcoin.”
Additionally, Kempis retweeted a message from Derek Ross saying, “Mexico has joined Latin America on the #Bitcoin journey.”. We hope @IndiraKempis follows through with her laser eye and helps introduce legislation to bring Bitcoin to Mexico. Thanks for starting this revolution, @nayibbukele. A very exciting time lies ahead.”
6. Argentina
National Deputy for Neuquén, Argentina, Francisco Sánchez, added laser eyes as well, saying, “I can’t image how it works,” but that’s how it is.
7. India
India’s central bank, the Reserve Bank of India (RBI), banned the sale and purchase of cryptocurrency in early 2018.
Using cryptocurrencies for an illegal purpose is also illegal, according to an appeal filed with the Supreme Court of India by the Internet and Mobile Association of India in 2019. A Supreme Court ruling lifted the cryptocurrency ban imposed by RBI in March 2020.
The government plans to issue a state-backed digital currency by 2021 while banning private ones like bitcoin.
8. United States
In 2013, the U.S. Treasury classified bitcoin as a convertible decentralized virtual currency. In September 2015, the Commodity Futures Trading Commission, or CFTC, classified bitcoin as a commodity. It is an asset for purposes of taxation, according to the IRS.
Bitcoin mentioned in a U.S. Supreme Court decision (on Wisconsin Central Ltd. v. the United States) regarding new monetary definitions was handed down on June 21.
Also, businesses that perform a substantial amount of business in the U.S., including cryptocurrency exchanges, money transmitters, and anonymizing services (called “mixers” or “tumblers”), must be licensed.
- As a money services business, register with U.S.FinCEN
- Implement an anti-money laundering (AML) program, and
- Maintain appropriate records and file reports with FinCEN, including Suspicious Activity Reports (SARs) and Currency Transaction Reports (CTRs).
AML requirements are similar in 17 other countries. As of 2018 U.S. FinCEN receives more than 1,500 SARs per month related to cryptocurrencies.
9. Zimbabwe
Bitcoin does not have official approval from the Reserve Bank of Zimbabwe. Through its banking partner, AgriBank, BitMari, a Pan-African Blockchain platform also got licensed to operate in the country on 5 April 2017.
10. European Union
Bitcoin as a currency is not subject to specific legislation in the European Union, but VAT/GST does not apply to the exchange of traditional (fiat) currency for bitcoins.
Bitcoin transactions involving goods and services are still subject to VAT/GST and other taxes (such as income tax). European Union
Since bitcoin does not involve traditional financial actors, traditional financial sector regulation does not apply to bitcoin, according to the European Central Bank. Several EU members have stated, however, that existing rules extend to bitcoin and bitcoin companies.
Bitcoin is also classified as a convertible decentralized virtual currency by the European Central Bank. A regulatory framework was not in place for virtual currencies such as bitcoin until July 2014, when the European Banking Authority advised banks not to deal in them.
As the last step, the European Parliament’s proposal for the creation of a task force to monitor virtual currencies has been submitted to the European Commission. The proposal was passed 542 votes to 51, with eleven abstentions.
Here is the list of Countries where Cryptocurrency Trading is Legal ends. Hope this was helpful.
Happy Trading 🙂
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