Bitcoin is one of the earliest and most extensively talked about cryptocurrencies across the world. It is still outlawed in many nations due to restrictions, as it is regarded too speculative and volatile. While some countries have accepted this as a completely legal transaction and are using it for transactional and monetary matters.
Ushering in a new era of cryptocurrency, With the daily lifestyle as well as the business operations shifting to a digital model, countries are also expecting payments and trading to be done through digital currency. The exposure of this model is to experience a good outreach and countries are continuously adopting systems that promote cryptocurrency.
El Salvador has become the first country in the world to formally adopt bitcoin as legal tender after Congress approved President NayibBukele’s proposal to embrace cryptocurrency.
Bukele has touted the use of bitcoin for its potential to help Salvadorans living abroad to send remittances back home while saying the U.S. dollar will also continue as legal tender.
There are many world leaders, who have witnessed and believed in the power of the digital currency. Some of the countries that are legally accepting bitcoins are:
The United States has long been positive about bitcoin, and the Financial Crimes Enforcement Network (FinCEN) of the United States Department of Treasury has been offering bitcoin recommendations since 2013. In addition, the Internal Revenue Service classifies bitcoin as property for tax purposes. Several government agencies, on the other hand, are attempting to restrict the use of bitcoin for unlawful transactions. In addition, bitcoin categorized as property for taxation purposes by the Internal Revenue Services.
In most European countries, digital currencies are legal, and many merchants accept payments in crypto. However, there is a difference in how the government of different countries treats cryptocurrencies across Europe. Several Bitcoin ATMs in Estonia help settle transactions with the help of bitcoin payment whereas in Denmark the cryptocurrencies is using for financial instruments and capital property.
The European Court of Justice (ECJ) declared in 2015 that purchasing and selling digital currencies in the EU falls within the category of “delivery of services” and is therefore exempt from VAT (VAT). Making it a tax exemption, the viability of the complete system increased and it promises a safeguard viewpoint. Moreover, some EU countries such as Finland, Belgium, UK, and Bulgaria have also developed their initiatives to facilitate Bitcoin trading.
Though cryptocurrency is not a legal tender in Canada certain cities in Canada accept bitcoins. The Ontario Securities Commission (OSC), which oversees the Toronto Stock Exchange, has also given a go-ahead green light for the launch of an index fund proposed by the Purpose Investments company. It has been the first country to authorize the launch of a Bitcoin fund on the Stock Market.
Since 2017, cryptocurrency has been legal in Australia, and it is also taxed. However, in light of recent events, the government has put up a fresh proposal seeking input on how to establish sound market practices for financial instruments that expose investors to cryptocurrency-backed assets. Australia legally accepted bitcoin to use for various transactions.
Most countries around the world have started accepting cryptocurrency for various purposes. While a lot of places accept Bitcoin, it’s clear that the adoption of Bitcoin is increasing each year. Countries are accepting the benefits that the cryptocurrency entails and at the same time make the business of transaction easy.