Legality of cryptocurrency by country or territory

The legal status of cryptocurrencies varies substantially from one jurisdiction to another, and is still undefined or changing in many of them.^[1] Whereas, in the majority of countries the usage of cryptocurrency isn't in itself illegal, its status and usability as a means of payment (or a commodity) varies, with differing regulatory implications.^[2]

While some states have explicitly allowed its use and trade, others have banned or restricted it. Likewise, various government agencies, departments, and courts have classified cryptocurrencies differently.

[1]

[2]

Country or territory	Legality
European Union	Legal The European Union has passed no specific legislation relative to the status of bitcoin as a currency, but has stated that VAT/GST is not applicable to the conversion between traditional (fiat) currency and bitcoin. VAT/GST and other taxes (such as income tax) still apply to transactions made using bitcoins for goods and services. ^[3]^{: European Union} In October 2015, the Court of Justice of the European Union ruled that "The exchange of traditional currencies for units of the 'bitcoin' virtual currency is exempt from VAT" and that "Member States must exempt, inter alia, transactions relating to 'currency, bank notes and coins used as legal tender'", making bitcoin a currency as opposed to being a commodity.^[4]^[5] According to judges, the tax should not be charged because bitcoins should be treated as a means of payment.^[6] According to the European Central Bank, traditional financial sector regulation is not applicable to bitcoin because it does not involve traditional financial actors.^[7]^: 5 Others in the EU have stated, however, that existing rules can be extended to include bitcoin and bitcoin companies.^[8] The European Central Bank classifies bitcoin as a convertible decentralized virtual currency.^[7]^: 6 In July 2014 the European Banking Authority advised European banks not to deal in virtual currencies such as bitcoin until a regulatory regime was in place.^[9] In 2016 the European Parliament's proposal to set up a taskforce to monitor virtual currencies to combat money laundering and terrorism, passed by 542 votes to 51, with 11 abstentions, has been sent to the European Commission for consideration.^[10] In January 2022, Erik Thedéen, vice-chair of the European Securities and Markets Authority, called for an EU ban on proof of work crypto-mining to favor the proof of stake model and fight climate change.^[11]
G7	Legal In 2013 the G7's Financial Action Task Force issued the following statement in guidelines which may be applicable to companies involved in transmitting bitcoin and other currencies, "Internet-based payment services that allow third party funding from anonymous sources may face an increased risk of [money laundering/terrorist financing]." They concluded that this might "pose challenges to countries in [anti-money laundering/counter-terrorist financing] regulation and supervision".^[12]

Country or territory	Legality
Algeria	Illegal According to the official journal (28 December 2017): Art. 117. — The purchase, sale, use, and holding of so-called virtual currency is prohibited. Virtual currency is that used by internet users via the web. It is characterized by the absence of physical support such as coins, notes, payments by cheque or credit card. Any breach of this provision is punishable in accordance with the laws and regulations in force.^[13]^[14]^: 82
Egypt	Illegal "Individuals, banks, and other financial institutions are prohibited from dealing in cryptocurrencies."^[15]
Morocco	Illegal On 20 November 2017 the exchange office issued a public statement in which it declared, "The Office des Changes wishes to inform the general public that the transactions via virtual currencies constitute an infringement of the exchange regulations, liable to penalties and fines provided for by [existing laws] in force."^[14]^: 87 The following day, the monetary authorities also reacted in a statement issued jointly by the Ministry of Economy and Finance, Bank Al-Maghrib and the Moroccan Capital Market Authority (AMMC), warning against risks associated with bitcoin, which may be used "for illicit or criminal purposes, including money laundering and terrorist financing".^[16] On 19 December 2017, Abdellatif Jouahri, governor of Bank Al-Maghrib, said at a press conference held in Rabat during the last quarterly meeting of the Bank Al-Maghrib's Board of 2017 that bitcoin is not a currency but a "financial asset". He also warned of its dangers and called for a framework to be put in place for consumer protection.^[17]

Country or territory	Legality
Tanzania	Legal / Use discouraged by central bank While not officially banned, the Bank of Tanzania advises not to use cryptocurrency, stressing that the Tanzanian shilling is the only acceptable legal tender.^[21]^[22]
Central African Republic	Legal On 22 April 2022 parliament of the Central African Republic voted for the cryptocurrency law which was promulgated on 27 April officially making Bitcoin a legal tender in the country.^[23] In April 2023, the CAR agreed to repeal the adoption of Bitcoin as legal tender.^[24]

Country or territory	Legality
Angola	Legal While government officials have advised against the use of bitcoin, there is no legislation against it and it remains fully legal.^[26]
South Africa	Legal In December 2014 the Reserve Bank of South Africa issued a position paper on virtual currencies whereby it declared that virtual currency had "no legal status or regulatory framework".^[27] The South African Revenue Service classified bitcoin as an intangible asset.^[28]
Namibia	Legal / Banking ban In September 2017 the Bank of Namibia issued a position paper on virtual currencies entitled^[29] wherein it declared cryptocurrency exchanges are not allowed and cryptocurrency cannot be accepted as payment for goods and services.
Zimbabwe	Unknown The Reserve Bank Of Zimbabwe has banned the banking use of crypto currency, however the High Court Order lifted the ban. The Reserve Bank have filed a notice of objection with the Court. However, no source indicating a resolution of the matter was located.^[30]

Country or territory	Legality
Canada	Legal / Banking ban Companies dealing in virtual currencies must register with the national financial intelligence agency Financial Transactions and Reports Analysis Centre of Canada (FINTRAC), implement compliance programs, keep the required records, report suspicious or terrorist-related transactions, and determine if any of their customers are "politically exposed persons." The law applies to non-Canadian virtual currency exchanges if they have Canadian customers. Banks may not open or maintain accounts or have a correspondent banking relationship with companies dealing in virtual currencies if that company is not registered with FINTRAC. Dealers in digital currency are regulated as money services businesses.^[31] The Autorité des marchés financiers (AMF), the financial regulator in the province of Quebec, has declared that some bitcoin related business models, including exchanges and ATMs, are regulated under its current MSB Act.^[32] As of April 2018, the Bank of Montreal (BMO) announced that it would ban its credit and debit card customers from participating in cryptocurrency purchases with their cards.^[33] This is following another banking ban in Canada from Toronto-Dominion Bank (TD).^[34]
United States	Legal The U.S. Treasury classified bitcoin as a convertible decentralized virtual currency in 2013.^[35] The Commodity Futures Trading Commission (CFTC), classified bitcoin as a commodity in September 2015. Per the Internal Revenue Service (IRS), bitcoin is taxed as a property.^[36] Bitcoin was mentioned in a U.S. Supreme Court opinion (in the case of Wisconsin Central Ltd. v. United States) on 21 June 2018.^[37] In an opinion, the U.S. Supreme Court mentioned that the definition of money has changed over time and that "perhaps one day employees will be paid in Bitcoin or some other type of cryptocurrency..."^[37] If money services businesses, including cryptocurrency exchanges, money transmitters, and anonymizing services (known as "mixers" or "tumblers") do a substantial amount of business in the U.S., according to Financial Crimes Enforcement Network (FinCEN) director Kenneth Blanco in 2018, they are required to:^[38] register with the U.S. FinCEN as a money services business design and enforce an anti-money laundering (AML) program, and keep appropriate records and make reports to FinCEN, including Suspicious Activity Reports (SARs) and Currency Transaction Reports (CTRs) As of August 2018^[update], U.S. FinCEN had been receiving more than 1,500 SARs per month involving cryptocurrencies.^[38] Seventeen other countries have similar AML requirements.^[14] In September 2016, in a federal court case involving a person operating an unlicensed money transmitting businesses, the U.S. District Court for the Southern District of New York ruled that "Bitcoins are funds within the plain meaning of that term. Bitcoins can be accepted as a payment for goods and services or bought directly from an exchange with a bank account. They therefore function as pecuniary resources and are used as a medium of exchange and a means of payment."^[39]
Mexico	Legal Bitcoin was legal in Mexico as of 2017, with plans to regulate it as a virtual asset by the FinTech Law.^[40]

Legality of cryptocurrency by country or territory

Detail by intergovernmental organization

Detail by country or territory

Alphabetical index to classifications

Africa

Northern Africa

Western Africa

East and Central Africa

Southeast Africa

Horn of Africa

Indian Ocean States

Southern Africa

Americas

North America

Central America

Caribbean

South America

Asia

Central Asia

West Asia

South Asia

East Asia

Southeast Asia

Europe

Central Europe

Eastern Europe

Northern Europe

Southern Europe

Western Europe

Oceania

Australasia

Melanesia

Micronesia

Polynesia

See also

Footnotes

References

External links

Wikiwand - on

Country or territory	Legality
Bangladesh	Illegal Financial institutions are not allowed to facilitate bitcoin transactions.^[14] In September 2014, Bangladesh Bank said that "anybody caught using the virtual currency could be jailed under the country's strict anti-money laundering laws".^[79] In 2021 the Bangladesh Bank said that cryptocurrency transactions or trade should be deemed as crimes if they involve money laundering or terror financing.^[80]
India	Legal Finance minister Arun Jaitley, in his budget speech on 1 February 2018, stated that the government will do everything to discontinue the use of bitcoin and other virtual currencies in India for criminal uses. He reiterated that India does not recognise them as legal tender and will instead encourage blockchain technology in payment systems. "The government does not recognise cryptocurrency as legal tender or coin and will take all measures to eliminate the use of these cryptoassets in financing illegitimate activities or as part of the payments system," Jaitley said.^[81] In early 2018 India's central bank, the Reserve Bank of India (RBI) announced a ban on the sale or purchase of cryptocurrency for entities regulated by RBI.^[82] In 2019, a petition has been filed by Internet and Mobile Association of India with the Supreme Court of India challenging the legality of cryptocurrencies and seeking a direction or order restraining their transaction.^[83] In March 2020, the Supreme Court of India passed the verdict, revoking the RBI ban on cryptocurrency trade.^[84]^[85] In 2021, the government is exploring the creation of a state-backed digital currency issued by the Reserve Bank of India, while banning private ones like bitcoin.^[86] At present, India neither prohibits nor allows investment in the cryptocurrency market. In 2020, the Supreme Court of India had specifically lifted the ban on cryptocurrency, which was imposed by the Reserve Bank of India.^[87]^[88]^[89]^[90] Since then the investment in cryptocurrency is considered legitimate though there is still ambiguity about the issues regarding the extent and payment of tax on the income accrued thereupon and also its regulatory regime. But it is being contemplated that the Indian Parliament will soon pass a specific law to either ban or regulate the cryptocurrency market in India.^[91] Expressing his public policy opinion on the Indian cryptocurrency market to a well-known online publication, a leading public policy lawyer and Vice President of SAARCLAW (South Asian Association for Regional Co-operation in Law) Hemant Batra has said that the "cryptocurrency market has now become very big with involvement of billions of dollars in the market hence, it is now unattainable and irreconcilable for the government to completely ban all sorts of cryptocurrency and its trading and investment".^[92] He mooted regulating the cryptocurrency market rather than completely banning it. He favoured following IMF and FATF guidelines in this regard.
Nepal	Illegal Absolute ban.^[14] The use of any cryptocurrency is illegal in Nepal.^[93]
Pakistan	Legal Cryptocurrencies including bitcoin are not officially regulated in Pakistan;^[94]^[95] however, it is not illegal or banned. As of 16 January 2021, the State Bank of Pakistan has not authorized any individuals or organizations to carry out the sale, purchase, exchange, and investment of virtual currencies, coins, and tokens.^[96] There have been a number of arrests by the Cyber Crime Wing of the Federal Investigation Agency (FIA) related to the mining of bitcoin and other cryptocurrencies. These arrests were made under money-laundering charges.^[97] Despite the many controversies around virtual currencies, prominent Pakistani bloggers and social media influencers are publicly involved in trading bitcoin and regularly publish content on social media in the favor of regulating cryptocurrencies. In December 2020, the Khyber Pakhtunkhwa government became the first province in Pakistan to pass a resolution to legalize cryptocurrency in the country.^[98]

Country or territory	Legality
Albania	Legal On 21 May 2020, Albania passed a new law to regulate cryptocurrency activities.^[160]
Belarus	Legal The Decree On the Development of Digital Economy — the decree of Alexander Lukashenko, the President of the Republic of Belarus, which includes measures to liberalize the conditions for conducting business in the sphere of high technologies. The provisions of the decree "On the Development of Digital Economy" create of a legal basis for the circulation of digital currencies and tokens based on blockchain technology, so that resident companies of the High-Tech Park can provide the services of stock markets and exchange offices with cryptocurrencies and attract financing through the ICO. For legal entities, the Decree confers the rights to create and place their own tokens, carry out transactions through stock markets and exchange operators; to individuals the Decree gives the right to engage in mining, to own tokens, to acquire and change them for Belarusian rubels, foreign currency and electronic money, and to bequeath them. Up to 1 Jan In 2023, the Decree excludes revenue and profits from operations with tokens from the taxable base. In relation to individuals, the acquisition and sale of tokens is not considered entrepreneurial activity, and the tokens themselves and income from transactions with them are not subject to declaration. The peculiarity of the introduced regulation is that all operations will have to be carried out through the resident companies of the High-Tech Park. In addition, the decree includes: Extension of the validity period of the special legal regime of the High-Tech Park until 1 January 2049, and expansion of the list of activities of resident companies. Under the new rules, developers of blockchain-based solutions, developers of machine learning systems based on artificial neural networks, companies from the medical and biotechnological industries, developers of unmanned vehicles, as well as software developers and publishers can become residents. The list of promising areas is unlimited and can be expanded by the decision of the High-Tech Park supervisory board. Preservation of existing benefits for resident companies in the High-Tech Park, including the cancellation of the profit tax (instead of which a contribution of 1% of the gross revenues proceeding to the administration of the park is applied), reduced to 9% of the personal income tax rate for employees, and the right to contribute to the Social Protection Fund according to the national average figures, and not the actual salaries. Exemption of foreign companies providing marketing, advertising, consulting and other services to the residents of the High-Tech Park from paying value-added tax, as well as paying income tax, which allows to promote IT products of Belarusian companies in foreign markets. To encourage investments, the Decree also exempts foreign companies from the tax on income from the alienation of shares, stakes in the authorized capital and shares in the property of residents of the High-Tech Park (under condition of continuous possession of at least 365 days). Introduction of individual English law institutions for residents of the High-Tech Park, which will make it possible to conclude option contracts, convertible loan agreements, non-competition agreements with employees, agreements with responsibility for enticing employees, irrevocable powers of attorney and other documents common in international practice. This measure is aimed at simplifying the structuring of transactions with foreign capital. Simplification of the regime of currency transactions for residents of the High-Tech Park, including the introduction of a notification procedure for currency transactions, the cancellation of the mandatory written form of foreign trade transactions, the introduction of confirmation of the conducted operations by primary documents drawn up unilaterally. Also, the decree removes restrictions on resident companies for transactions with electronic money and allows opening accounts in foreign banks and credit and financial organizations without obtaining permission from the National Bank of the Republic of Belarus. Simplification of the procedure for recruiting qualified foreign specialists by resident companies of the High-Tech Park, including the abolition of the recruitment permit, the simplified procedure for obtaining a work permit, and the visa-free regime for the founders and employees of resident companies with a term of continuous stay of up to 180 days.^{[citation needed]}
Georgia	Legal Based on the public decision issued by the Ministry of Finance of Georgia in 2019,^[161] crypto, by its very nature, is not "sourced" in any specific geographical location, meaning that it is not considered "Georgian sourced". This type of income would come under the 0% tax on capital gains derived from crypto trading laws.^{[citation needed]}
Kosovo	Ban on mining^[162] In January 2022, coinciding with an energy crisis, Kosovo outlawed all cryptocurrency mining. According to BBC News, cryptocurrency mining "is particularly popular in northern areas of Kosovo, where ethnic Serbs do not recognise the state's independence and refuse to pay electricity bills".^[163]
Russia	Legal to mine / Banking ban As of 2014, from the point of view of the current Russian legislation, cryptocurrency is a monetary substitute. According to article 27 of the Federal Law "On the Central Bank of the Russian Federation (Bank of Russia)", the issue of monetary surrogates in the Russian Federation is prohibited.^[164] As of November 2016, bitcoins were "not illegal" according to the Federal Tax Service of Russia.^[165] Deputy Finance Minister of the Russian Federation Alexei Moiseev said in September 2017 it's "probably illegal" to accept cryptocurrency payments.^[166] However, bitcoin market sites are blocked, and court decisions state that bitcoin is a currency surrogate which is outlawed in the territory of the Russian Federation.^[167] In 2017, the Central Bank of Russia and Rosfinmonitoring in their informational appeals have repeatedly warned Russian citizens that all operations with cryptocurrency are speculative and carry a high risk of loss of value. The Central Bank of Russia states that: "Most operations with cryptocurrencies are performed outside the legal regulation of both the Russian Federation and most other states. Cryptocurrencies are not guaranteed or provided by the Bank of Russia."^[168] As of 2021, Putin said Russia accepts the role of cryptocurrencies, and that cryptocurrencies can be used for payment.^[169] In January 2022, the Central Bank of Russia proposed to ban "all cryptocurrency issuance and operations, stop banks from investing in cryptocurrencies, block exchanging crypto for traditional currency, and introduce legal liability for using crypto in purchases" citing systemic financial risk.^[170] According to Bloomberg News and Meduza, the Federal Security Service convinced the Central Bank to ban cryptocurrencies in Russia, as they are used to finance the opposition and independent media.^[171]^[172] In February 2022, the Russian government eventually announced it would support, legalize, and regulate cryptocurrencies, and not ban them.^[173] In July 2024, Russia regulated mining and allowed businesses to use cryptocurrencies in international trade while keeping the existing ban on domestic cryptocurrency payments.^[174]^[175]
Ukraine	Legal / Illegal to buy with local currency On 16 March 2022, the president of Ukraine signed the Virtual Asset Bill into law.^[176] On 22 April, the Central Bank banned purchasing cryptocurrencies with local currency and made the monthly limit of $3300 for purchases with foreign currencies.^[177]

Country or territory	Legality
Bosnia and Herzegovina	Legal No regulation on the use of bitcoins.
Bulgaria	Legal There is not a single word in Bulgarian laws about bitcoin. People owe 10% tax if they made a profit trading.
Cyprus	Legal The use of bitcoin is not regulated in Cyprus.^[3]^: Cyprus
Greece	Legal No specific legislation on bitcoins exists in Greece.^[3]^: Greece
Italy	Legal Italy does not regulate bitcoin use by private individuals.^[3]^: Italy
Malta	Legal As of 2017^[update], Malta does not have any regulations specifically pertaining to bitcoins.^[3]^: Malta In 2017, the country's prime minister Joseph Muscat announced the approval of a national strategy to promote bitcoin and blockchain technology. Muscat specifically addressed the bitcoin blockchain's ability to handle, store and process sensitive data in an immutable and decentralized ecosystem.^[192]
North Macedonia	Legal No specific legislation on bitcoins or cryptocurrency exists in North Macedonia. In 2016, the National Bank of the Republic of North Macedonia published a press release regarding an investigation it made into ONECOIN, and discouraged the citizens from investing in it since it was most likely a scam. In the same press release, the NBRM quoted the law on Foreign Exchange Operations, but since cryptocurrencies do not constitute a foreign currency as they are quoted by the law, it leaves them unregulated.^[193]
Portugal	Legal In 2013, the Bank of Portugal stated that Bitcoin was not a safe currency, as their issuance lacked oversight or prudential requirements. As of 2014, Portugal had no specific legal framework for Bitcoin. ^[3]^: Portugal
Spain	Legal Transactions in bitcoins are subject to the same laws as barter transactions.^[3]^: Spain

Country or territory	Legality
Fiji	Legal Prime Minister Sitiveni Rabuka is a proponent of cryptocurrencies and has even planned to make bitcoin legal tender as soon as 2023.^{[citation needed]}
Tuvalu	Legal The government officially supports the use of blockchain technologies, including cryptocurrencies.^[203]
Vanuatu	Legal Legalised in 2021.^[204]