Bitcoin and law. How bitcoin obeys the countries' laws.
Due to the multiple undeniable advantages, the level of virtual currency application grows rapidly and becomes more urgent with every passing day. People use Bitcoin as well as for other e-currencies to acquire all sorts of products on the Internet and make payments for various services.
The reasons of cryptocurrency popularity growth in the world.
The Bitcoin blockchain grows the number of transactions incredibly fast that provides more opportunities to pay for goods and services. In such countries and regions like China, Finland, India, Latin America, Africa e-currency competes with real money.
Chances of that cryptocurrency Bitcoin can put a start of creating a completely new decentralized economy, controlled only by market participants are really great.
Using cryptocurrency in different states.
As for today there is no legislation that regulates cryptocurrency intrastate application as well as there is no straight prohibition. As a result bitcoin legality remains controversial due to two reasons: the inability to tax payment transactions in the cryptos and such transaction anonimity level provision that criminals are able to make various purchases and remain unidentified.
Governmental attitude to the cryptocurrencies varies, a lot of countries welcome its use, but there are some that try to create a regulatory instruments and restrictions for Bitcoin turnover.
States in which Bitcoin currency system is not defined as illegal:
- The US considers Bitcoin as a business but not as an separate currency, and impose on those who use it certain obligations and taxes. Due to this, the Bitcoin is viewed as a valuable asset, which has its own value. The US government has began to work against the illegal purposes of Bitcoin using;
- Canada welcomes the use of e-currency and evaluates the Bitcoin stock trade as an business income source;
- The UK government has decided to give a chance for e-currency to take the place in the UK economy and tries to find ways to regulate and to control cryptocurrency exchanges, to create the conditions for prevention of the currency application in illegal purposes;
- In Finland and Belgium Bitcoin transactions are considered as normal financial operations that are not related to a object of taxation;
- In Germany the use of Bitcoin is supposed to be legal and taxed, which rate depends on the type of activity.
States prohibiting the use of Bitcoins, limiting their use or considering this type of currency as illegal:
- Russian government heads active struggle against cryptocurrencies. Bitcoins are considered as illegal payment instrument, which must not be used as liabilities repayment;
- Iceland sets a strict control of the currency outflow from the country, so this kind of currency keeps a possible danger for monetary policy of the country - Bitcoin is illegal;
- In Vietnam the cryptocurrency use is estimated as money laundering, so it is also outlaw;
- Ecuador is also negatively related to Bitcoin and considers it illegal, the state has developed its own digital currency;
- In China there are some restrictions on the cryptocurrency turnover, but China Bitcoin market is recognized as one of the largest in the world;
- France, India and Japan are currently developing the cryptocurrency legislation.
Anyway, Bitcoin is gaining popularity around the world, regardless of regulatory authorities relationship to it in some countries. Anonymity, security, and what's the most important, decentralization allows Bitcoin to maintain popularity and remain staying out of government influence. Thus, we can say that people will have enough time to evaluate all the advantages of using this cryptocurrency.