Is Bitcoin safe and legal? The short answer is most likely ‘Yes’ — but it depends on where you are and what you’re about to do with it.
A number of debates about the legality of Bitcoin and cryptocurrencies is increasing. More and more legislators are now talking about this issue due to the spread of digital currencies. Usually, people are allowed to use legal currency in their country without making any money.
Bitcoin with its mining and verification system poses a problem for a legislator. Since Bitcoin is a currency separate from national funds, Bitcoin mining is technically not illegal.
Bitcoin isn’t illegal as it isn’t trying to be issued as another currency. Still, the lack of regulation makes Bitcoin a dark horse. An attempt to integrate bitcoin trading into currency legislation hasn’t always been successful.
Is Bitcoin trading legal? What about BTC mining? Today, we’re about to find out answers to the key questions. Let’s get started!
Is Bitcoin Trading Legal: BTC Trading in the USA
Is Bitcoin legal in the US? The USA is one of the best countries in the world for doing cryptocurrency business. Large hedge funds, exchanges, and other companies related to cryptocurrency are incorporated here. Moreover, many goods and services can be paid not only with fiat or electronic money but also digital.
In the US, ATMs, which provide the ability to exchange fiat money and cryptocurrencies are also common.
But the legal regulation of crypto in the United States is no less complicated than in Europe. This is mainly due to specifics of a legal system of the state, and the lack of a unified position among governors regarding the legal status of cryptocurrency.
So, is bitcoin legal in USA? The digital currency is considered simultaneously as money (their analogue), as property and as exchange commodities.
At the federal level, some cryptocurrency companies (such as exchanges) must be registered as Money Transmitters on the Financial Crimes Enforcement Network. And at the state level, the activities of such companies are subject to licensing (in each separate state).
As property, digital money is considered for tax purposes. Crypto transactions are taxed. For example, wages paid to workers in Bitcoin are subject to Federal Income Tax Withholding and Payroll Taxes.
Is Buying and Selling Bitcoin Legal: Is Bitcoin Mining Legal?
Whether Bitcoin is legal or not depends on what it’s used for. The Silk Road was a marketplace on the Dark Web where people could buy illegal Bitcoin goods while remaining completely anonymous.
However, this could be done using fiat currency. Is Bitcoin mining legal in the US? Well, In the United States, it’s absolutely legal to spend bitcoins on legal products and services. At least for now, according to the US Department of Treasury’s Financial Crimes Enforcement Network.
Is bitcoin mining legal? It’s legal to own and mine bitcoins in most locations. However, think about whether it’s financially profitable where you live. Certain countries have laws that can limit your ability to trade. You may need to check what you can do with the Fiat Currency Exchange earnings. In addition, bitcoin mining can be a problem if you share your energy bill with other people. If you aren’t aware of your mining activities, you may be surprised when you see the bill.
Is Bitcoin Gambling Legal: Key Legality Aspects
Today, a lot of people wonder ‘Is bitcoin gambling legal?’. Let’s try to find out!
While most countries have official rules regarding online gambling, there are only a few countries that regulate the crypto gambling business. These include the UK, Italy, Netherlands, Greece, Poland, and Belgium.
In many countries, bitcoin isn’t considered a legal method of payment under existing regulations, so it shouldn’t be used for gambling. Many countries, obviously, haven’t clarified this issue yet.
Japan is perhaps the most striking example of such a country — its gambling industry exceeds the industry of Nevada by more than $4 billion. In the UK, many online gambling platforms accept cryptocurrency. However, cryptocurrency-focused service providers are required to adhere to applicable UK gambling laws.
Is Bitcoin legal in your country? Just share your knowledge in the comments!