You searched for Bitcoin be legal? This important question, whether Bitcoin is legal or not, can be answered easily. Yes, Bitcoin is legal. However, there are a few things you should keep in mind when using the crypto-currency Bitcoin. In this article we will discuss the main aspects of the topic.
Bitcoin and the taxes
But now on the subject of Bitcoin being legal, what about the payment of taxes? In some countries and in some cities in Switzerland, the tax can already be paid via Bitcoin today. Unfortunately, this is not the case in other word, where taxes still have to be paid in national currency. If you privately buy cryptocurrency directly and leave it for at least a year, the profits from an exchange rate are tax-free.
Of course, if you receive your payments via Bitcoin, you must indicate this “money” to the tax office. If you do not do that, your Bitcoin stock is considered a black money in the legal sense and that is of course punishable.
It is not easy to buy and sell bitcoin commercially. You need a license and a corresponding license for such a service. In the majority of the world, a Bitcoin transaction is considered a financial transaction and is subject to its rules and laws. There is a big difference between paying for a service or a deal with Bitcoin or actively trading that currency. You are not allowed to operate any type of trading venue without a corresponding banking license.
Is Bitcoin trading legal?
On the subject of Bitcoin being legal in the field of trading the situation is clear. If you buy and sell Bitcoin and Co. for yourself, you are not liable to prosecution. However, you have to specify your winnings accordingly, as in normal trading. However, you should always pay attention to the subject of trading, without experience, the total loss may threaten. Also the promises of the various trading bots should be evaluated with caution. In the crypto-world, some dubious figures are floating around. Unfortunately, one hears daily about so-called scam and fraud systems. Once your Bitcoin is gone, you usually will not get the money back. So always check very carefully who you work with and where to load your Bitcoin.
In which countries Bitcoin was legalized?
It is not so simple to solve the question of the legal status of cryptocurrencies. Against the backdrop of the general insanity of people on Bitcoins, the position of the official bodies of most states of the world regarding the legal status of cryptocurrencies is not so clear. In the meantime, each state chooses its own path. Let’s talk more about which countries Bitcoin is allowed in.
Some recognize it as a financial asset, others as a commodity or a means of payment, somewhere, everyone can work with it, but somewhere only individuals. Perhaps such a variety of opinions and approaches, over time, will allow us to develop a coordinated international position on the functioning of the cryptocurrency market.
In one form or another, digital currencies are legalized in the following countries:
- United States of America;
- Great Britain;
- South Korea.
As you can see, these are mainly countries with a developed economic and legal system that are trying to find additional opportunities in the new trends, and do not follow the path of prohibitions.
The bulk of the state now takes a wait and see attitude. In them, transactions in cryptocurrency do not have a legal status, and are not and are not prohibited. Most likely, government agencies are studying the experience of pioneers and trying to calculate the potential depth of the influence of coins on national economies and the financial sector. Among others, among such countries you can specify:
- Czech Republic
- New Zealand and others.
Some states from this list de facto recognized Bitcoin as an asset, but did not legitimize it. Fiscal authorities tax miners, companies and exchanges working in this direction, but the amount of fees and the mechanism for collecting them are different everywhere. Market regulation remains outside the sphere of influence of state structures.
Basically, you have no reason to fear the simple handling of Bitcoin. Just make sure that you do nothing that you would not normally do with money. Remember, no one gives you money and certainly no Bitcoin.