To sign up for our daily email newsletter, CLICK HERE
There’s been a lot of discussion about the legality of Bitcoins in certain countries, and there’s no doubt that this has taken some of the steam out of their launch, but that doesn’t mean people are not interested in them.
In fact, it’s entirely possible that many people would like to buy bitcoins but aren’t willing to risk their hard earned money on an unproven currency (just look at how volatile the early prices were). Today we’re going to take a look at some countries where Bitcoins are legal and what makes them so special. IF you are a newbie in cryptocurrencies, here are The basics of cryptocurrency.
Countries Where Bitcoins Are Legal- Points To Note
From its humble beginnings as an open-source software developed by Satoshi Nakamoto, Bitcoin has grown into a decentralized digital currency that’s been adopted by millions of people all over the globe. While many people are aware of the basic concepts of Bitcoin and cryptocurrency, there’s still significant confusion regarding its legal status in various parts of the world. This article will examine some of the countries where Bitcoins are legal.
1. United States
The United States is one of the few countries that have not given an official stance on Bitcoin. Bitcoin can be used without regulation in the United States but is usually taxed like any other financial transaction.
2. Canada
In Canada, there is no law prohibiting the use of bitcoin. As such, bitcoins are treated as a commodity. There is also no tax or legislation which prohibits the use of bitcoin. However, like any other investment, it should be noted that there may be potential risks involved with investing in bitcoins and it’s possible they could lose value over time.
The Canadian Revenue Agency has classified bitcoins as a commodity and not currency so transactions involving bitcoins will be treated like barter transactions; a taxable event will occur upon conversion of Canadian dollars to bitcoins for goods and services rendered or vice versa.
3. Australia
In Australia, Bitcoin trading is not regulated by the government and it is considered a legitimate payment method. In 2014 the Australian Taxation Office released guidance on how to deal with income from Bitcoin trading. The Australian Taxation Office stated that The ATO’s view is that bitcoin will be treated as a commodity and not as currency for tax purposes. This means that Australians will have to pay capital gains tax when they trade bitcoin as well as any other commodity
Just like you’d expect from a government. This can be seen as either a good or a bad thing, depending on how you view bitcoins. The debate over whether they will rise or fall has raged for several years now and is probably still not yet decided. If they fall, there’s no capital loss involved with trading them into another currency; however if they do rise then
4. EU
The European Union has a lot of legislation that can be complicated to follow. Many laws were passed before the rise of bitcoin and blockchain technology, so it is not always clear how they apply to new technologies. The General Data Protection Regulation (GDPR) was passed by the EU Parliament in April 2016 and became enforceable on May 25, 2018.
Bitcoin falls under this regulation because it is considered personal data when used as a means of payment. This law protects the privacy of people’s data with strict rules on how it can be used, who can access it, and what security measures must be taken to protect it. Under GDPR people have a right to be forgotten which means that companies must delete personal data if requested.
Conclusion
So, you may be wondering, which country has the best bitcoin laws? It’s hard to say for sure. In many ways, it’s similar to trying to determine which country is best for business. Every business owner wants to succeed. Some do it better than others. The same can be said for bitcoin regulation by different countries.
While some may not have a favorable opinion about bitcoin, there’s always an option for business owners who feel otherwise. It might just be that you’re better off selling bitcoins from another part of the world. As long as you abide by local regulations and laws, you should have no trouble getting started with your new business venture.
