Appearing for the first time in 2008, the concept of cryptocurrencies spread like wildfire, and it has been a long time since then that more and more people began dealing with it, investing in it, or just hoarding it. A little more than a decade, and cryptocurrencies have gathered the trust of not only their users but also governments and regulating bodies, as it still, in essence, is truly decentralized.
However, cryptocurrency is the Cinderella of all currencies and hence one question persists – Is purchasing cryptocurrency legal? In today’s article about cryptocurrencies, we are going to address the issue of their legality.
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What are cryptocurrencies?
The world got to know about cryptocurrencies with the entry of Bitcoin, back in 2008. Satoshi Nakamoto is the pseudonym for the person(s) who invented Bitcoin. As the term suggests, cryptocurrency is that currency that is backed by strong cryptographic language. It is completely out of any centrally governed interferences and the new currency is circulated through a process called mining.
Mining is a complex digital process that is all about solving difficult mathematical equations to generate new cryptocurrencies in the market. Hence the entire functioning of it is through unique computer nodes, each belonging to their respective blockchain networks.
One of the greatest and most widespread examples of cryptocurrency is Bitcoin. It has gained so much popularity that the terms ‘cryptocurrency’ and ‘Bitcoin’ are often thought to be synonymous. But let us find out what makes Bitcoin the greatest takeaway in the history of cryptocurrency.
Some key attributes of Bitcoin and Cryptocurrencies as a whole
- Unlike fiat currencies, cryptocurrencies do not exist in the physical realm. This means that it is an easily accessible currency that runs on a peer-to-peer network.
- This makes international transactions favorable and quicker, minus the interference of any bank and its exchange fees.
- Crypto ATMs are sprouting up, along with various goods and service providers shifting their interest in cryptocurrencies, thus making it a viable everyday option.
- Cryptocurrencies can be traded on various online trading software visit website, drawing open a window of profitable opportunities.
All of these traits may make cryptocurrencies seem to be well-established, but even if that is the case, unanimous international regulations concerning them are yet to surface. This is where the issue of its legality comes into question.
The universal trend of its legality
Cryptocurrency is devised in such a manner that any two account holders belonging to any place across the globe can conduct a transaction in crypto. Their identity will remain undisclosed but the operation will be visible to anyone and everyone in that particular network. Along with its pros, crypto was also a lucrative option for frauds and other criminal activities, but with wider blockchain networks, resulting in better traceability if need be, such trends have been on a decline.
While some countries like the US or the EU members assent the use of cryptocurrencies after thoughtful considerations, the majority of them choose to wait and watch and then take any concrete stance. Let us look at a small list of country-wise acceptance of cryptocurrency.
The States has rather waved off a green flag towards cryptocurrency. It remains positive regarding the use of crypto and has also put several institutions at work to cut down on illegal transactions.
For a long period, the Russian government did not pay any special heed to crypto regulation. However, post-2020, no federal employee by law can hoard cryptocurrency. One can trade cryptocurrency, but cannot buy stuff with it in Russia.
Europe is yet to arrive at a unanimous consensus when it comes to the regulation of cryptocurrencies. Nonetheless, transactions and digital assets are out of value-added taxations. Further regulations can be posed by individual countries.
This country in Central America is the only country at present to designate Bitcoin or BTC as its official tender alongside the US Dollar. Citizens can use BTC for their daily transactions.
Though a few countries can go ahead with cryptocurrencies, many are still not sure how to participate in crypto regulations. Therefore, the question of legality is rather still in an unclear stage.
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