Are Cryptocurrencies Legal?

As with many things that governments cannot control, there has been much debate over the legality of cryptocurrency in various countries around the world. Both governments and their central banks have raised various points of concern regarding cryptocurrency, but in many areas the debate is still ongoing.

In this research done by Reuters, the team has looked at governmental attitudes toward cryptocurrencies, not limited to Bitcoin alone. The picture produced across the world is patchy. Some countries have become global advocates, while others have actively banned cryptocurrencies completely, with various shades in between.

Among the concerns that they have regarding cryptocurrencies are:

  • Lack of regulation
  • Lack of Control
  • Potential to diminish effectiveness of fiscal policies
  • Crime (e.g. money laundering)

However, since each country usually has their own policies and whatnot, the status of cryptocurrency ranges far and wide. Reactions to have have fallen into a few broad categories such as;

Complete bans

Some countries have completely banned the use of cryptocurrency. For example, Algeria prohibits the purchase, sale, use, and holding of cryptocurrency. Egypt meanwhile has classified all commercial transactions in bitcoin as ‘haram’ (meaning unclean, or forbidden by Islamic law).

Partial bans

In countries such as Bangladesh and Iran, there are no regulations banning the possession, trade,or use of cryptocurrency. However, financial institutions in the county are not allowed to facilitate any such transactions.

The terms of partial bans vary widely, so if you’re looking to trade or use cryptocurrency you need to refer to the specifics as allowable in your jurisdiction.

Legal

Of the countries that have legalized cryptocurrencies, it should still be noted that in many cases the government does not take an active stance on the matter. Some countries such as Lebanon, the government has allowed cryptocurrency but at the same time issued warnings discouraging such transactions.

Andrew McEwan

Author: Andrew McEwan

Make crypto, not war.