Tue. May 21st, 2024

As an essential part of digital currency, Bitcoin has a significant influence worldwide. Some countries support Bitcoin transactions, while some countries prohibit Bitcoin transactions. So in which countries are Bitcoin legal, and what is the country’s attitude towards Bitcoin? This article will give you a brief introduction.

In which countries is Bitcoin legal?

Russia is currently the most significant country that declares Bitcoin illegal. However, China and South Korea are the two countries that have recently increased the scrutiny and supervision of the use of Bitcoin. Affected by the continued rectification of cryptocurrencies by the Chinese and South Korean governments, Bitcoin prices have plummeted globally.

North America and Western Europe are the regions with the highest recognition of Bitcoin. At present, international companies plan to use Alberta, Canada, as one of the Bitcoin mining bases, which is expected to drive millions of miners. However, on the issue of Bitcoin, the Middle East seems to be the most inconsistent. Interestingly, Iran, Iraq, and Turkey all recognize the legality of Bitcoin, while Afghanistan, Pakistan, Saudi Arabia, and Egypt have imposed varying degrees of restrictions on this cryptocurrency.

Of the 246 countries globally, 99 countries (40%) currently have laws restricting Bitcoin. Nearly 17 countries (7%) either restrict bitcoin transactions or believe that bitcoin is illegal. 53% of countries have yet to comment on Bitcoin and the legality of its use in their respective countries. For Bitcoin, this is a risk factor, because some countries that have not concluded may impose restrictions on cryptocurrencies.

Why is Bitcoin worth money?

Bitcoin itself has no value, but the total amount of Bitcoin is limited, has an intense scarcity, and has a specific theoretical value, so investors give Bitcoin a particular value.

Bitcoin is a virtual cryptocurrency and the first decentralized peer-to-peer payment system. However, its essence is a unique solution generated by a bunch of complex algorithms, and the process of mining Bitcoin is through a vast amount of calculations constantly seek unique solutions to this system of equations.

Now everyone should know why the U.S. uses Bitcoin as a reserve asset and why Bitcoin is valuable. All Bitcoin users jointly control the Bitcoin network. Unless the majority of Bitcoin users agree to make a change (such as a rule modification or version upgrade), no one or organization can change or stop the operation of Bitcoin.

What is China’s attitude towards Bitcoin?

As early as December 2013, the People’s Bank of China and the other five ministries jointly issued a document clearly stating that Bitcoin is not a currency in its true sense. In 2020, an article written by Wang Jin, an arbitrator of the Beijing Arbitration Commission, believes that China’s current attitude towards Bitcoin control mainly includes the following three aspects:

  1. Bitcoin is not legal tender;
  2. Bitcoin is a virtual commodity;
  3. The state prohibits token financing trading platforms from engaging in activities such as the exchange of legal currency, tokens, and virtual currencies.

Among them, two points need to be emphasized:

  1. As China currently has no laws on Bitcoin, it cannot be considered as virtual property under Article 127 of the General Principles of Civil Law;
  2. Based on the principle of statutory property rights, Bitcoin cannot be considered property under property law without explicit provisions in the law.

It can be seen that Bitcoin is legal in many western countries, but it is banned in many eastern countries. For example, at present, China has clearly stated that Bitcoin is not legal tender, and related transactions and exchange businesses are also prohibited.

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