Bitcoin Regulations by Country for 2020
When it comes to cryptocurrency, the rules of the road can change pretty widely from country to country. This should come as no surprise. Blockchain projects sit on the intersection of two fields that governments have always controlled pretty tightly: currency and investment. Governments like to control the former because it can make an economy, the latter because it can break one.
The globally-minded investor needs to understand this and the status of cryptocurrency anywhere he or she trades.
Here is the legal status of cryptocurrency for each country that has staked out a position on the matter. It isn’t always clear and is far from set in stone, but this should give you a place to start.
A couple of notes before we dive in:
First, the term “legal tender” will appear periodically in this article. Legal tender is a currency which the government will accept for tax payments and, as the U.S. dollar says, is legally valid “for all debts public and private.” Making something legal tender is exactly as big a deal as it seems because giving cryptocurrency that status means everyone has to take it, from the biggest bank to some guy selling peaches on the corner.
Second, unless noted otherwise, countries without specific regulations on the subject tax sales, profits, and losses from cryptocurrency like any other tradeable good.
Finally, if a nation does not appear on this list, it does not have any specific regulations or bans. Members of the E.U. have been included despite regulatory status due to their participation in the economic zone.
North America
Canada
Legal Status: Legal
Regulatory Status: Regulated as a financial product
Notes: Recognized as a form of currency for the purposes of money laundering and other government oversight
Costa Rica
Legal Status: Legal
Regulatory Status: No specific regulations
Notes: Some large employers may begin offering partial payment in cryptocurrency. This is because the country allows payment in non-official currency as long as the employer pays the minimum in legal tender.
Jamaica
- Legal Status: Legal
- Regulatory Status: No specific regulations.
- Notes: The Bank of Jamaica has advised caution in the investment and use of cryptocurrency.
Mexico
- Legal Status: Legal
- Regulatory Status: Regulated as a financial product
- Notes: Recognized as a form of currency for the purposes of money laundering and other government oversight
Nicaragua
- Legal Status: Legal
- Regulatory Status: No specific regulations
- Notes: None
Trinidad and Tobago
- Legal Status: Legal
- Regulatory Status: No specific regulations
- Notes: None
United States
- Legal Status: Legal
- Regulatory Status: Regulated as a financial product
- Notes: Recognized as a form of currency for the purposes of money laundering and other government oversight
South America
Argentina
- Legal Status: Legal
- Regulatory Status: Regulated as a standard commodity or other tradeable good
- Notes: Recognized as a form of currency for the purposes of money laundering and other government oversight
Bolivia
- Legal Status: Illegal
- Regulatory Status: It is illegal to spend or trade cryptocurrency of any kind.
- Notes: Bolivia has banned all trade in currencies not issued by a government.
Brazil
- Legal Status: Legal
- Regulatory Status: Not regulated. Trade and spending of cryptocurrency are not subject to any government oversight.
- Notes: None
Chile
- Legal Status: Legal
- Regulatory Status: Not regulated. Trade and spending of cryptocurrency are not subject to any government oversight.
- Notes: In 2018, numerous banks attempted to shut down cryptocurrency exchanges. This may be a contentious place in which to trade.
Colombia
- Legal Status: Uncertain
- Regulatory Status: There are no laws banning cryptocurrency, but government officials have spoken against it. New legislation may soon protect cryptocurrency as a regulated, legal commodity.
- Notes: None
Ecuador
- Legal Status: Semi-legal
- Regulatory Status: Trading in cryptocurrency is legal; however, it is illegal to spend cryptocurrency or to accept it as a form of currency.
- Notes: None
Venezuela
- Legal Status: Legal
- Regulatory Status: Not regulated. While previously traders were subject to arrest, currently trade and spending of cryptocurrency are not subject to any government oversight.
- Notes: The nation has issued its own cryptocurrency, the oil-backed Petro, and has declared it legal tender. At the time of writing, it had seen virtually no adoption.
Europe
Austria
- Legal Status: Legal
- Regulatory Status: Cryptocurrency is regulated and taxed as a traded currency.
- Notes: None
Belgium
- Legal Status: Legal
- Regulatory Status: No specific regulations.
- Notes: None
Belarus
- Legal Status: Legal
- Regulatory Status: Income from cryptocurrency is exempt from taxation until 2023.
- Notes: None
Bosnia and Herzegovina
- Legal Status: Semi-legal
- Regulatory Status: Trade in cryptocurrencies is permitted. Purchases are not.
- Notes: None
Croatia
- Legal Status: Legal
- Regulatory Status: No specific regulations.
- Notes: None
Czech Republic
- Legal Status: Legal
- Regulatory Status: Regulated as a financial product.
- Notes: Recognized as a form of currency for the purposes of money laundering and other government oversight
Denmark
- Legal Status: Legal
- Regulatory Status: No specific regulations
- Notes: None
Finland
- Legal Status: Legal
- Regulatory Status: No specific regulations
- Notes: None
Germany
- Legal Status: Legal
- Regulatory Status: Cryptocurrency is regulated as a financial product. Although not recognized as currency, transactions in cryptocurrency are subject to tax.
- Notes: Regulated for the purposes of money laundering and other government oversight
Greece
- Legal Status: Legal
- Regulatory Status: No specific regulations
- Notes: None
Hungary
- Legal Status: Legal
- Regulatory Status: Specific regulation for cryptocurrency is pending.
- Notes: Cryptocurrency is not currently recognized as a form of currency.
Iceland
- Legal Status: Unclear
- Regulatory Status: Trade in cryptocurrency may violate the Foreign Exchange Act, but the legal status of this issue is unclear and changing.
- Notes: None
Ireland
- Legal Status: Legal
- Regulatory Status: No specific regulations
- Notes: None
Italy
- Legal Status: Legal
- Regulatory Status: No specific regulations
- Notes: Recognized as a form of currency for the purposes of money laundering and other government oversight
Latvia
- Legal Status: Legal
- Regulatory Status: Regulated as a financial product
- Notes: Recognized as a form of currency for the purposes of money laundering and other government oversight
Lithuania
- Legal Status: Legal
- Regulatory Status: Regulated as a financial product. Traditional financial services must not trade in cryptocurrencies.
- Notes: None
Luxembourg
- Legal Status: Legal
- Regulatory Status: No specific regulations
- Notes: None
Malta
- Legal Status: Legal
- Regulatory Status: No specific regulations
- Notes: The Maltese government is currently working on cryptocurrency-specific financial regulations.
Netherlands
- Legal Status: Legal
- Regulatory Status: No specific regulations
- Notes: None
Poland
- Legal Status: Legal
- Regulatory Status: Cryptocurrency trades are specifically taxed with brackets of 18 percent and 32 percent.
- Notes: None
Portugal
- Legal Status: Legal
- Regulatory Status: No specific regulations
- Notes: None
Romania
- Legal Status: Legal
- Regulatory Status: No specific regulations
- Notes: None
Russia
- Legal Status: Legal
- Regulatory Status: Mining and initial coin offerings are subject to specific regulation.
- Notes: None
Slovakia
- Legal Status: Legal
- Regulatory Status: No specific regulations
- Notes: None
Slovenia
- Legal Status: Legal
- Regulatory Status: No specific regulations
- Notes: None
Spain
- Legal Status: Legal
- Regulatory Status: No specific regulations
- Notes: None
Sweden
- Legal Status: Legal
- Regulatory Status: Regulated as a financial product. Certain cryptocurrency businesses require a license.
- Notes: Recognized as a form of currency for the purposes of money laundering and other government oversight
Switzerland
- Legal Status: Legal
- Regulatory Status: Initial coin offerings are subject to specific regulations. Some Swiss cantons have begun accepting government payments in cryptocurrency.
- Notes: None
Ukraine
- Legal Status: Legal
- Regulatory Status: Cryptocurrency specifically cannot be classified or traded as a currency of any form.
- Notes: None
United Kingdom
- Legal Status: Legal
- Regulatory Status: Regulated as a financial product. VAT applies to transactions made in cryptocurrencies.
- Notes: Recognized as a form of currency for the purposes of money laundering and other government oversight
Africa
Algeria
- Legal Status: Illegal
- Regulatory Status: All use of cryptocurrency is banned.
- Notes: None
Bahrain
- Legal Status: Semi-legal
- Regulatory Status: Owning and trading cryptocurrency outside of Bahrain is legal. Spending it within the country is not.
- Notes: None
Egypt
- Legal Status: Semi-legal
- Regulatory Status: While the government has not prohibited cryptocurrency, using it as currency has been declared prohibited under Islamic law.
- Notes: None
Iran
- Legal Status: Semi-legal
- Regulatory Status: Financial institutions are banned from handling cryptocurrencies. Currency exchanges cannot handle cryptocurrencies.
- Notes: None
Iraq
- Legal Status: Illegal
- Regulatory Status: Trade and use of cryptocurrency are illegal.
- Notes: None
Israel
- Legal Status: Legal
- Regulatory Status: Regulated as a financial product
- Notes: Recognized as a form of currency for the purposes of money laundering and other government oversight
Jordan
- Legal Status: Semi-legal
- Regulatory Status: Large financial institutions and payment servicers may not handle cryptocurrency.
- Notes: None
Kuwait
- Legal Status: Semi-legal
- Regulatory Status: Financial institutions are banned from handling cryptocurrencies.
- Notes: None
Morocco
- Legal Status: Legal
- Regulatory Status: Regulated as a foreign currency.
- Notes: None
Nigeria
- Legal Status: Semi-legal
- Regulatory Status: Large financial institutions may not handle cryptocurrency.
- Notes: Recognized as a form of currency for the purposes of money laundering and other government oversight
Qatar
- Legal Status: Uncertain
- Regulatory Status: No specific legislation
- Notes: In a publication, the Central Bank has stated that Bitcoin is illegal.
South Africa
- Legal Status: Legal
- Regulatory Status: No specific regulations
- Notes: None
United Arab Emirates
- Legal Status: Illegal
- Regulatory Status: All cryptocurrency transactions are banned.
- Notes: None
Asia
Bangladesh
- Legal Status: Illegal
- Regulatory Status: While no specific law has been passed, it is the position of the Bangladesh government that cryptocurrency transactions break unrelated financial laws.
- Notes: None
Cambodia
- Legal Status: Uncertain
- Regulatory Status: Government officials have made conflicting statements on the legality of cryptocurrency.
- Notes: None
China
- Legal Status: Illegal
- Regulatory Status: All cryptocurrency transactions are banned. Research and development in blockchain technology are encouraged in specific areas.
- Notes: None
India
- Legal Status: Legal
- Regulatory Status: Regulated financial institutions cannot traffic in cryptocurrency.
- Notes: None
Indonesia
- Legal Status: Semi-legal
- Regulatory Status: Spending or purchasing with cryptocurrency is banned. Trading in cryptocurrency is not.
- Notes: None
Japan
- Legal Status: Legal
- Regulatory Status: Cryptocurrency has asset-specific regulations as both a currency and a financial product.
- Notes: While not legislative action, an interpretation of previous financial laws has made some cryptocurrencies legal tender for domestic and government transactions.
Malaysia
- Legal Status: Legal
- Regulatory Status: No specific regulations
- Notes: None
Nepal
- Legal Status: Illegal
- Regulatory Status: All cryptocurrency transactions are banned.
- Notes: None
Philippines
- Legal Status: Legal
- Regulatory Status: Regulated as a financial product
- Notes: Recognized as a form of currency for the purposes of money laundering and other government oversight
Singapore
- Legal Status: Legal
- Regulatory Status: Regulated as a financial product
- Notes: Recognized as a form of currency for the purposes of money laundering and other government oversight
South Korea
- Legal Status: Legal
- Regulatory Status: Regulated as a financial product
- Notes: Anonymous trading of cryptocurrency is prohibited.
Thailand
- Legal Status: Legal
- Regulatory Status: The government has issued specific restrictions on cryptocurrency trading pending more comprehensive regulation.
- Notes: None
Turkey
- Legal Status: Legal
- Regulatory Status: No specific regulations
- Notes: None
Vietnam
- Legal Status: Illegal
- Regulatory Status: All cryptocurrency transactions are banned.
- Notes: None
Australia
Australia
- Legal Status: Legal
- Regulatory Status: All cryptocurrency transactions are taxed and regulated as a foreign or otherwise third-party currency.
- Notes: Recognized as a form of currency for the purposes of money laundering and other government oversight
New Zealand
- Legal Status: Legal
- Regulatory Status: Regulated as a financial product
- Notes: Recognized as a form of currency for the purposes of money laundering and other government oversight
Thanks for the clear and practical advice. Very helpful!