Virtual money, one of the most talked-about topics of recent years, is now a source of revenue that is now quite popular in many countries. In this post we will review the information about Bitcoin, the first virtual currency, and Bitcoin’s legality in the countries.
In the “Bitcoin Legality in The World” map above you can see the countries where Bitcoin is legal, not legal, and not regulated. Generally we can see that Bitcoin is now gradually becoming legal in countries. Furthermore when we look at the map, we see 5 countries where Bitcoin is not legitimate, and at the same time you can see that there are a lot of countries that do not have any regulation.
Before we examine the maps in more detail, let’s have a little idea about Bitcoin.
What is Bitcoin?
Bitcoin; It’s a virtual currency called “BTC”. There is no relationship with any central bank or official organization. Furthermore it is the most used currency in the Deep Web.
It is claimed that Bitcoin is a project proposed to the Rothschild family by way of digital money philosophy and that the Rothschild family has assigned their own international banks to develop digital money. In addition the Bitcoin network has passed on January 3, 2009. Manifeston’s writing is Satoshi Nakamoto, but probably it is not his real name.
Bitcoins, which are not produced from any center, exhibit a point-to-point distributed network feature similar to BitTorrent networks. In addition payments in this network arrive instantaneously at the other points, so that they go to the records in payment address. It is desirable to apply a hash algorithm, which requires high processing on each block, to find the expression starting with a certain number of zeros.
In addition the first user to perform this operation corresponding to approximately 10 minutes is given a prize of 50 BTC (now 25 BTC) from zero. So Bitcoins goes into the emissions. Furthermore each block contains the hash statement of the last block that precedes it. Thus, it is quite difficult to break down (except for 51% attack). The aim is to prevent double spending and record submissions. The amount of award reduces to one in every 210,000 blocks (one in about 4 years) (50,25,12.5, …)
Bitcoin Money Mining
The name of money creation is mining. Mining is the general name of the process of performing mathematical operations using computing power.
The production date of “Genesis block” is January 4, 2009 and it is the first block of mining. Thus in this way, miners are able to generate bitcoin from the system in order to generate and run new bitcoins in the system and to perform the pending operations.
Furthermore the regular addition of the new money to the system is analogous to the gold miners finding gold in circulation, the mining name comes from here. In the current process, miners are continuing to produce the amount of bitcoin that is going to circulate every year, in a decreasing and predictable proportion. Furthermore the system will continue production until a total of 21 million bitcoins circulate, then the production process will continue and the miners will continue to support only over transaction costs.
Can we use bitcoin for shopping?
We can say “yes we can” in the answer to this question. In 2015, the number of merchants accepting bitcoin exceeded 100,000. In addition some companies have begun to accept payments with bitcoin. According to CoinATM Radar, there are more than 1000 ATMs worldwide now. Furthermore the country with the most Bitcoin ATM is the US. A total of 1,200 ATMs are in this country. The United States has 138 ATMs in Canada with UK 53, Spain 30, Finland 20, Australia 20, Switzerland 17 and Czech Republic, or 15 Bitcoin ATMs.
All investors are anxious because of the stealing risk of thousands of dollars invested in the Bitcoin.
There are also thefts in places where illegal goods are sold with bitcoin. The online illegal Sheep Marketplace site, which was closed in late November 2013, claims to have stolen nearly $ 100 million worth of bitcoins. Furthermore when users try to translate bitcoins into cash, they have not received any returns and criminals can not be detected. During the cut in Silk Road 2.0 site in February 2014, thieves stole $ 2.7 million bitcoin.
The sites where users convert bitcoin money are among the targets of thieves. Bitcoin thieves attacked twice to Inputs.io, an Australian wallet service, in October 2013. And they stole over $ 1 million as a result of these attacks. In late February 2014, thieves stole $ 350 million worth of bitcoin from Mt.Gox, one of the largest virtual money exchange centers in Tokyo.
A Canadian-based BitCoin storage company, Flexcoin, closed in March 2014, saying it discovered a $ 650,000 theft. Furthermore Polonyex, a digital currency translator, has also reported a loss of about $ 50,000 in March 2014. In January 2015, the 3rd largest Bitstamp in the UK-based world was attacked and lost $ 5 million. In February 2015, a Chinese company called BTER was hijacked by hackers worth about $ 2 million.
Approximately 120,000 bitcoins were recruited from Bitfinex in 2016. As a result of this theft, Bitfinex was forced to suspend the trade. Theft occurred in Mt. went on record as the second major robbery after the Gox robbery. In addition theft cases increased security concerns. “These thefts are a sign of the fragility of a new industrial infrastructure,” said Charles Hayet, founder of CryptoCompare, a digital currency comparison website. Furthermore according to the delegation of the US House of Representatives Small Business Committee, dated April 2, 2014, “these suppliers have regulatory oversight, lack of minimum capital standards and provide consumer protection against loss or theft. ”
Since now we have many ideas about bitcoin, we can start with the European continent.
Map of Bitcoin Legality in Europe
Belgium – Neutral
-The Belgian Finance Minister noted that state intervention on the Bitcoin system is not currently considered necessary.
Bulgaria – Neutral
Bitcoin is regulated by the law describing payment systems and payment services.
Croatia – Neutral
On December 6, 2013, the Croatian Central Bank reported that it conducted an investigation into the circulation of digital currencies and that Bitcoin was the result of the fact that it was not illegal in Croatia.
Czech Republic – Neutral
Czech National Bank does not grant Bitcoin trade authorization.
Denmark – Neutral
Denmark is a country that wants to remove its cash use and move to digital currency. It is designed to use Bitcoin and its reputation digital money together in daily life without giving up completely from its own central bank. In addition the Danish Financial Supervisory Authority issued a statement stating that Bitcoin is not a currency and can not regulate its use.
Estonia – Legal
It intends to use Block-Chain technology to provide health, banking and citizens’ participation in the administration. Furthermore it has introduced the first block-chain based electronic voting system for its citizens. Lastly government doesn’t control and supervise Bitcoin and digital money use in Estonia.
Finland – Legal
The Finnish Central Taxation Board has defined Bitcoin as a financial service, exempting Bitcoin and its supply from value added tax.
France – Neutral
The French Ministry of Finance issued regulations on July 11, 2014 regarding the taxation of virtual money specialists and stock exchanges.
Germany – Neutral
According to a statement issued by the Federal Financial Supervisory Authority on Dec. 19, 2013, the digital currencies are legally binding financial instruments that fall under the category of legal regulations.
Greece – Neutral
Greece does not have specific legislation on Bitcoin and the digital money.
Iceland – Legal
According to an opinion of the Central Bank of Iceland in 2014, “There is no permission to transfer foreign exchange from financial institutions in Iceland or to transfer foreign exchange exceeding the limits on the basis of virtual money and transaction.” On March 12, 2017, the Central Bank changed its rules.
Ireland – Neutral
The Irish National Bank said that at the Irish Parliament meeting, it did not regulate digital currencies.
Italy – Neutral
Italy is not organizing transactions used by private individuals.
Lithuania – Neutral
On January 31, 2014, the Central Bank of Lithuania issued a warning that Bitcoin was not recognized as a legal tender in Lithuania and that Bitcoin users should be aware of the high risks associated with the use of Bitcoin.
Luxembourg – Neutral
In February 2014, the Center for Financial Supervision and Research published a communication confirming the status of foreign currencies and other Cryptographic currencies.
Netherlands – Legal
Dutch Financial Control Act doesn’t cover virtual currencies like Bitcoin. Arnhem, it’s like a Bitcoin town. There are over 100 places in the city where you can shop with Bitcoin. Dutch banks are exploring ways to use their block-chain method to improve their technology and reduce costs.
Norway – Legal
The Norwegian Tax Administration has issued a statement that digital money will be treated as capital property for tax-related purposes. The Norwegian government has stated that there will be no VAT on Bitcoin purchase or sale as specified in February 2017.
Poland – Neutral
The use of bitcoin in Poland is currently not regulated by a law.
Portugal – Neutral
Bitcoin does not have a specific legal framework in Portugal.
Romania – Neutral
An official statement issued by the Romanian Central Bank in March 2015 stated that “the use of digital currencies as payment is a particular risk for the financial system”.
Russia – Neutral
Russia has previously banned the use of Bitcoin. However, from November 2016, Bitcoin was declared legal by Russia.
Slovakia – Neutral
The Slovak National Bank (NBS) said that Bitcoin does not have the legal qualifications of a currency and therefore is not under national control. In addition the purchases or purchases of virtual currencies represent the risk of investors’ business and investors are not protected. There is no legal right to compensate losses that occur in exchanges or purchases.
Slovenia – Neutral
On 23 December 2013, the Slovenian Ministry of Finance gave an official opinion on the situation of Bitcoin and other virtual currencies in response to a request from the Slovenian Tax Office. The view implies that BitCoin is not a monetary and financial instrument within the framework of Slovenian laws.
Spain – Neutral
The transactions in Bitcoin are subject to the same laws as swap transactions.
Sweden – Legal
Sweden, like Denmark, is a country that wants to end its cash use. In order not to be influenced by the negative return of Riksbank from the central bank of Sweden, the Swedish citizens will be able to use Bitcoin and defend their wealth on this point. Furthermore the Swedish Financial Supervisory Authority has legalized Bitcoin as a payment method. The Swedish Tax Administration has also made a preliminary adjustment on the value added tax (VAT), which is subject to the regulations of the Financial Inspection Authority (Financial Supervisory Authority) and stipulates that the digital money business is not subject to VAT. The decision was appealed by the Swedish Tax Office.
Switzerland – Legal
In 2016, the Zug city of Switzerland has been chosen as a test zone to pay city fees with Bitcoin and a region that promotes future technologies. Swiss Federal Railways, a state-owned railway company in Switzerland, sells bitcoins in ticket machines.
Turkey – Neutral
There is no regulations about Bitcoin in Turkey.
United Kingdom – Legal
The UK government stated that digital money was not regulated at this time and that it was mostly treated as a ‘foreign currency’, including VAT. The United Kingdom is home to many Bitcoin and Block-Chain innovative companies.
Bangladesh – Illegal
In September 2014, Bangladesh Bank said, “Anyone who uses virtual currency may be imprisoned by the laws of the country against the strict money laundering.”
China – Neutral
People and Companies in China can buy, sell, and trade Bitcoin, but the laws; financial companies like banks prohibit doing the same.
Indonesia – Neutral
On February 6, 2014, Bank Indonesia published a press release regarding the ending of the law under the Law amended several times in relation to the “7 Year Law on Currency” and the Law No. 23 December 1999. With the latest law, Bank Indonesia said that BitCoin and other virtual currencies are not a currency or legal payment instrument in Indonesia.
Japan – Legal
Japan officially recognizes digital money and digital currencies as money.
Jordan – Neutral
The Jordanian government issued a warning to discourage the use of digital currencies and similar systems. The Central Bank of the United States banned banks, exchange rates, financial companies and payment service companies from Bitcoin or other digital currencies, and publicly warned of Bitcoin’s risks.
Kyrgyzstan – Illegal
In July 2014, the National Bank of the Kyrgyz Republic stated that it would be a violation of law to use “virtual currency”, especially in the Kyrgyz Republic, as a payment instrument.
Lebanon – Neutral
Deterrent regulations exist. The Lebanese government issued a dissuasive warning on the use of Bitcoin and other similar systems.
Malaysia – Neutral
Bank Negara has no official statement on Malaysian views on the bitcoin. In addition on October 4, 2017, BNM announced that the decision on whether Malaysia should ban cryptographic currencies.
Nepal – Illegal
On August 13, 2017, Nepal Rastra Bank declared bitco illegal.
New Zealand – Neutral
New Zealand Central Bank: “Banks do not need to approve plans (such as Bitcoin) involving the storage and / or transfer of value. The currency in the physical circulation is the local currency. ”
On March 6, 2014, Bangko Sentral ng Pilipinas (BSP) made a statement on the risks associated with digital currency trading and use. There is no regulation about Bitcoin trade.
Saudi Arabia – Neutral
None of government parties banned Bitcoin in Saudi Arabia. Furthermore the Saudi Arabian Monetary Authority (SA) warned that it is at high risk and its franchisees will not have protection or rights.
Singapore – Neutral
In December 2013, the Singapore Monetary Authority reported that “MAS does not intervene in a commercial decision whether or not it accepts exchange rates for goods and services”.
South Korea – Legal
South Korea, which hosts giant technology companies like Samsung and LG, accepted Bitcoin as a method of payment despite the fact that there is no law to arrange Bitcoin, and its popularity is increasing day by day. Furthermore the country is also hosting the Bitcoin conferences.
Taiwan – Neutral
Government banned Bitcoin ATMs here. But people can by Bitcoin in more than 6,000 kiosks in the store.
Thailand – Legal
The Bank of Thailand declared Bitcoin illegal in 2013, but some conversion companies were able to obtain business licenses. May 2016: Bank of Thailand “Bitcoin Not Illegal But; The Bank of Thailand Warns You Against the Use of Bitcoin “. He issued a statement. In addition SEC Thailand issued a Public Relations Document dated October 27, 2017, Aor Tor Ngor 34/2560 Subject: Legal Arrangement to the First Coin Proposal (ICO).
Vietnam – Neutral
State Bank of Vietnam in February 2014 didn’t aprrove and didn’t protect Bitcoin. Bitcoin trade in Vietnam is still unlimited and legally regulated by law, and VBTC and Bitcoin Vietnam work without restriction in the two largest Bitcoin markets in Vietnam. Furthermore in December 2016, the government approved the development of the legal framework for digital money in Vietnam in December 2017, and announced that it had no plans.
Algeria – Legal
In Algeria Bitcoin is now legal, but “Algeria 2018 (Article 113 Law)” goes to Bitcoin ban in the new Finance Act.
South Africa – Neutral
In December 2014, the South African Central Bank issued a report on the Virtual Currency, declaring that the virtual currency is not a ‘legal status or regulatory framework’.
Swaziland – Legal
Bitcoin is legal in Swaziland.
Zimbabve – Neutral
The Zimbabwe Reserve Bank was skeptical about Bitcoin and did not allow its official use. However, on April 5, 2017, the Pan-African Blockchain platform BitMari and its banking partner AgriBank received a license for the business in the country.
Argentine – Neutral
According to the Argentine National Constitution, Bitcoin is not legal currency.
Bolivia – Illegal.
The Central Bank of Bolivia issued a decision banning Bitcoin in 2014.
Brazil – Neutral
According to the declaration of Central Bank of Brazil in 2017, there are no legal regulation about Bitcoin.
Chile – Illegal
There are no regulations on the use of bitcoins.
Ecuador – Neutral
The Ecuadorian government banned bitcoins and other digital currencies.
Jamaica – Legal
According to Jameika news sources, use of bitcoin is common. Furthermore the National Bank explained that people should use this technology and government should create opportunities.
Nicaragua – Legal
News sources show that people use digital money in the country.