While some countries categorically do not recognize cryptocurrency or introduce it into everyday life very carefully, others integrate it with might and main into their financial system. Let’s find out the list of countries where cryptocurrency is legal!
In Germany, cryptocurrency assets are defined as private money. With their help, commercial companies and banking structures can pay among themselves. At the same time, for all purchases paid with bitcoin, you need to pay VAT, while cryptocurrency transactions themselves are not yet taxed.
Germany is one of the first E.U. countries to regulate digital assets at the legal level. The issuance of digital currency, its possession and trade, as well as mining are legally permitted. At the same time, certain standards are applied to the release of cryptocurrency and its licensing. In 2017, Germany officially recognized digital currency as a financial instrument. Thus, currently, it is quite possible to pay with BTC there.
The regulatory framework for regulating cryptocurrency began to be developed in Japan back in 2017, after the fall of the Mt.Gox exchange. At that time, traders lost about 850,000 bitcoins. Then, in the spring of 2017, the authorities officially recognized digital currency as a legal means of payment, which can be used to pay for goods and services.
However, bitcoin was not legally considered a currency until the spring of 2017. Then it was recognized as a legal tender and ceased to be considered a commodity asset. Cryptocurrency exchanges also have official status. They must be licensed and must comply with the requirements of the law in the field of combating money laundering.
Japan can be called one of the key states in the development of digital coins. The headquarters of the popular Internet service Bitcoin.org, which was developed by the creators of BTC blockchain Martti Malmi and Satoshi Nakamoto, is also located here. Today, Japan is one of the most liberal countries in the field of cryptocurrency regulation. Forbes magazine even wrote that it is ‘an advanced Bitcoin state.’
Among the 27 countries of the European Union, Italy can be called the leader in the use of bitcoin in transactions. According to Coinmap, more than 15% of all stores in the world that accept payments in crypto operate in this country. Also, Italy can boast 39 crypto ATMs, and there is a project that is focused on the development of a payment system in bitcoins. It is already actively replacing the euro in payment transactions within the country.
The future outlook is not yet completely clear: in the end, either a completely new digital asset on the blockchain will appear, or there will be a stablecoin based on bitcoin.
Cryptocurrency became a legal form of electronic payments in Spain at the beginning of 2014. In 2016, the state passed laws requiring miners to register for a license and pay taxes.
In Canada, bitcoin and other digital assets are not legally considered a means of payment. At the same time, you can pay for goods and services with cryptocurrency. Bitcoin ATMs operate throughout the country. Also, you will have to pay tax for income received from investing in digital assets.
In this country, cryptocurrency is accepted as a full-fledged market instrument. The Ministry of Finance even developed law with new provisions that regulate the circulation of electronic currency. In addition, bills have been developed to regulate the conduct of ICOs. Cryptocurrency companies have also been legalized here, and citizens of the country can use coins in payment transactions.
In Norway, cryptocurrencies were recognized as a digital asset back in 2013. And in 2017, the government abolished VAT on all purchases and sales of bitcoin and other digital assets.
🇸🇻 El Salvador
Cryptocurrencies were officially recognized in El Salvador in September 2021. Moreover, crypto was equated to a means of payment on a par with the U.S. dollar despite all protests and criticism within the country. Commercial organizations and other companies are actively introducing bitcoin as a form of payment for services and goods. Also, citizens can download the Chivo app, which was specifically designed by the government to promote digital currency. New users receive a welcome bonus of $30 in bitcoins for installing this app.
Cryptocurrency was legalized in the United States in 2017. At the same time, all transactions with altcoins and bitcoins are taxed. You need to pay both local and federal taxes on income that was received as a result of mining, investing, or exchanging goods for crypto. Large cryptocurrency exchanges operate in the United States, including Poloniex, Bittrex, and others.
In September 2021, the Law ‘On Virtual Assets’ was adopted on the territory of Ukraine, which spelled out the provisions for regulating transactions with virtual currency. In addition, changes are being prepared to the tax code, which will regulate the taxation of transactions with electronic assets.
In the Philippines, the cryptocurrency market began to be regulated back in 2017. All cryptocurrency exchanges must be registered and licensed to start working. Also, annual reports must be submitted to the regulatory authorities. In the Philippines, any type of electronic currency has the status of a financial instrument with which you can conduct any type of payment.
🇨🇿 Czech Republic
Cryptocurrency circulation is also allowed in the Czech Republic. At the same time, the Central Bank of the country believes that operations with digital assets do not need to be licensed, and additional taxes should not be paid either. The only requirement of the government is that the owners of crypto exchanges, bitcoin ATMs, and other companies that exchange currencies for fiat must verify their clients.
The country’s parliament started talking about cryptocurrency regulation back in 2013. Since 2016, the city of Zug has begun accepting bitcoin as a means of payment for public services. And in 2017, they created the first legal platforms for developing cryptocurrency startups. This made the activity of companies that dealt with crypto assets and blockchain much easier. Thanks to the progressive legislation of the country, crypto business has become very popular here. In some regions, electronic currency is being actively introduced into everyday life. For example, in Zug, bitcoin can be used to pay for utilities and other services since 2017.
This state is very progressive in terms of cryptocurrency jurisdiction. Residents are positive about blockchain technology and willingly accept digital assets. True, they do not equate them with traditional means of payment but rather with alternative ones. The legal regulation of crypto is also at a high level there.
In this country, the legalization of cryptocurrency took place at the end of 2017. Then the law ‘On the Digital Economy’ was issued. At the same time, the cryptocurrency market was exempted from paying taxes until 2049. Citizens of the country can store and exchange digital money, as well as buy and sell it, and transactions do not have to be declared. In 2020, the Central Bank of Belarus launched an online service to exchange virtual assets.
Today, we have listed the most prominent countries that are currently ready for innovation in the financial sector. However, the situation is rapidly changing, and many more countries will likely accept crypto in the near future.