Crypto Bans All Over The World

Apart from El Salvador that has declared Bitcoin as its legal tender, no other country has adopted it as intimately as this. Since its debut in 2009, Bitcoin has suffered massive discrimination, especially from tax authorities, regulators and financial institutions mostly Central banks. Today, many financial institutions are debating on how to control or regulate Bitcoin and altcoin activities in their countries. While some countries are gradually opening their doors to its possibilities, some have shut them completely due to claims of voracious volatility and use as a major tool in the hands of criminals. Whether you can access these virtual currencies are a question of which country you are in and in some cases the constantly changing regulations. So, here are a list of major countries and their relationship with Bitcoin and other altcoins.

The United States. Cryptocurrencies are not legal tenders in the US but cryptocurrency exchanges are legal while their regulations varies by state. Cryptocurrency exchange service providers must obtain the requisite license from the Financial crimes Enforcement Network (Fin CEN) and following their guidelines. Fin CEN states that Bitcoin can be used freely according to the law of the state as a convertible currency with an equivalent value in real currency or one that can act as a substitute for real currency (Investopedia).

Canada. Just like it's southern neighbor the US, cryptocurrencies are regulated under securities law as a part if the securities regular mandate to protect the public (global legal insights). It is viewed as a commodity and any income from a transaction using Bitcoin is viewed as a business income or a capital gain and has to be reported. Cryptocurrency exchanges also have to register under the Financial Transactions and Reports Analysis Centre of Canada (FINRAC) to be kept in check. China. Today, most investors understand cryptocurrency and China aren't exactly on the same team, especially after the massive crackdown on crypto throughout 2021. Chinese authorities banned all virtual currency trading as well as mining in the country. They are considered as illegal financial activities. The Chinese government has backed its claims with the level of energy consumed due to mining activities in its region (note; before the ban, a large percentage of Bitcoin mining took place in China) which pushed many investors overseas. These efforts have come off to many as an attempt by its government to float its e-currency the digital yuan.

India. Considering the huge donation India received in cryptocurrency as Covid-19 relief, one wouldn't expect India to be this hostile now, months later. Vitalik Buterin donated more than 50trillon worth of Shiba Inu coins to the India Covid-19 Crypto Relief Fund set up by Sandeep Naiwala, a cryptocurrency entrepreneur. Today, all crypto profits gained will be taxed at a flat rate of 30% and a mandatory 1% tax deducted on all crypto transactions whether of a profit of loss. While raking in lots of income for the country, this could discourage potential investors from trading in the country.

Other countries like Denmark, France, United Kingdom, Spain, Iceland, Germany, Mexico allow Bitcoin to be used in transactions while creating a regulatory framework around them. And others like Bolivia, Colombia, Nigeria, Algeria, Egypt, Indonesia have frowned upon the currency one way or the other, especially in its financial institutions with Egypt classifying Bitcoin transactions as "Haram” something prohibited under Islamic law.