Bitcoin is a digital currency and it is really a tremendous evolution in the tech and financial worlds and it regulated in the whole world in a short span of time. But it is still seeking legal frameworks in many countries. There are many legal factors that are counted in cryptocurrency and Bitcoin. For the virtual currency [digital currency] a term is used that is an umbrella that is a set of legal rules that apply to virtual currency. Here, we will discuss legal the status of cryptocurrency that all worlds want to know because the demand of Bitcoin and cryptocurrency is increasing with the time and most people want a surety about their investment so they can also invest their money in it.
Legality of Cryptocurrency in Different Countries
According to all countries, each country has own legal constitution and according to that digital currency is also having law and by following that its regulation is permitted. So, each country has its own aspects regarding the digital country. Some country categorized it an asset, some as legal and some countries did not declare it still.
Some countries like Bangladesh, Russia, Ecuador has banned it in their country. Some countries like China, it is illegal for commercial use but you can use it for an individual purpose like holding, trading, mining, buy and sell. In China, a person can hold it and can mine it but he cannot use it for the commercial purpose. There are also some countries where it is totally banned due to their law that doesn’t permit it like Iceland.
A country like the United Kingdom, Bitcoin and other digital currency are unregulated with no law. The recent European court has made a law and according to that Bitcoin and all other cryptocurrency is exempted from Value Added Tax [VAT].
Here is the list of countries where all kinds of cryptocurrency [Digital currency or Virtual Currency] are banned and illegal are:
China (Banned Only for Commercial Uses)
As, we all know that Bitcoin is most famous cryptocurrency due to its uniqueness and its value and it is counted as firstly developed digital currency in 2013 and after that at present, in the market, you can find out hundreds of digital currency. So, we can say that Bitcoin is the origin of the cryptocurrency. Whole worlds have to keep an eye on it. In the short time duration, it has spread very fast. People are getting more attracted by this to earn more profit because at present, in the market it has become a great source to earn more profit in a short span of time. People already earned million from it and we can understand it with one example like when Bitcoin released then its market value was 100 $ and at present, its value is approximate 16000 $ and after calculating these statics we can imagine that how much profit people are already getting. Amitabh Bachchan is the popular celebrity in India that also invested in Bitcoin and earned 114 cr. So, we can say that it should be regulating in whole worlds so people can make their deal easily here and can invest their money in such a good way.
Now we will also discuss Bitcoin tax and its process.
The tax issue is the most concerning issue in the whole world because in the whole process, Bitcoin users are always anonymous and no one can track it if the user follows all rules and regulation of the Bitcoin. It has become a safe heaven for taxpayers and if we make business by using Bitcoin, then we can easily hide our tax money and no one can find out it. Country like USA where, if we take a lot amount of money from other countries then it may be a cause of tax but, if you bring money in the format of Bitcoin, then you can easily cross the border without paying tax and you can also convert them in money in your country and it is totally safe and best way to not paying tax. Bitcoin had also become the best way for money laundering be using them you can easily carry money from here to there without paying tax and the most important thing is that no government and organization regulate it.
We all know that tax should be payable by us and if we don’t pay tax then it is illegal and at present, Bitcoin has become a great platform to save taxes and it is also counted reason that Bitcoin and all other digital currencies are trending too much.
# MONEY LAUNDERING
Money laundering is the process by we carry money from one country to another country without paying taxes and it is the illegal format to carry money because, in this process, we don’t pay tax and if we don’t pay tax then our wealth is also counted illegal money.
After the invention of cryptocurrency, money laundering becomes too much easy and none is able to fetch this. Because Bitcoin is the digital currency and it is virtual currency and we can carry it without facing any problem so most money launder is using this way.
Bitcoin tax widely discussed in the USA and according to them Bitcoin is counted as the virtual currency and they regulate it also for tax purpose. If anyone is having Bitcoin in large amount and if they lose their private encryption key then it is very tough and almost impossible to recover it and imagine that government knows that you are having large amount of digital currency and you forget password then how you will convince government that you are not the owner of that currency. So, it has also negative remark.
Everything in the world is having a positive and negative issue and like that Bitcoin [cryptocurrency] is also having merit and demerit. It has become a widely discussed issue among economist and some of them are predicting that it will rise more in future and some are saying that it has no future. But most people who are using Bitcoin are dealing it in all aspects.
Below given list are consisting countries that makes Bitcoin legal specifically for tax purpose and other issues.
All above given countries are making Bitcoin legal and you can easily use thereafter paying tax on it.
A most Digital currency like cryptocurrency is illegally using in all over the world. Some countries are banned it and some are allowing them as legal and some of them are making laws for it. One of the most important factors is Bitcoin has potential to become worldwide acceptable currency. At present, uses of Bitcoin is increasing day by day and if it will grow with the same speed then soon all worlds will make it legal and this process may take time.
Why is Bitcoin Highly Secured?
Bitcoin is based on the decentralized network and it is highly secured due to its 256-bit secure layer that uses for its protection. Due to having a decentralized network, it becomes more secure and unable to trace. So, people are oriented towards it more.
It is based on Blockchain that is based on the block and each block has a node and when we make any transaction then at first, its information will pass by all the nodes and all nodes are doing it verify then we can proceed to next step otherwise, we will be unable to make our payment.
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