Legal

Legality of Cryptocurrencies

 

Is cryptocurrencies legal? Is it banned in my country? Pandacoin’s Crypto Crash Course gives you a rough guide on the major countries and their status on the current state of cryptocurrencies. 

Many may ask “Is it legal for me to own cryptocurrencies in my country?” This is pretty straightforward, though rather difficult to answer as there are so many different countries and laws are always changing. According to major sources, the following countries have deemed it legal to own cryptocurrencies: Algeria, Australia, Belgium, Brazil, Bulgaria, Canada, China (and Hong Kong), Taiwan, Colombia, Denmark, Finland, Germany, India, Indonesia, Israel, Japan, Jordan, Lebanon, Lithuania, Malaysia, Norway, Philippines, Poland, Russia, Slovenia, Singapore, South Korea, Switzerland, Thailand, Turkey, United Kingdom, United States.

If you live in a country not listed here, either it is illegal, or the data on your country was not found. Some of the countries above, however, do have legal or financial restrictions on the use, sale, or purchase of cryptocurrencies. Examples are as follows:  In China, it is legal to own or trade in bitcoins, however it is illegal for financial institutions to handle them; In Russia, it is illegal to use cryptocurrencies as a substitute for the Russian Ruble, however it is legal to own them. There are many others restrictions and legal issues such as these, and the Pandacoin team will produce a good faith effort to attempt to enumerate these so that you may discover whether or not it is legal to deal in cryptocurrencies as you wish to.

Generally speaking, cryptocurrencies or digital currencies are legal to own, and usually legal to trade in. Most countries have some method of taxation on income gained through the trading or creation of digital currencies, and many countries have large communities and collections of vendors that trade in them. The usual answer to “are these digital currencies legal here” is “yes”, however sometimes that yes comes with a few qualifications, and in the unusual case such as Iceland, digital currencies are straightforwardly banned.

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An important note to remember is that it is almost ALWAYS illegal to make digital currencies via mining, or sell items and make income in digital currencies, but not pay taxes on them. This is especially true if you convert those digital currencies to traditional currencies for the purpose of purchasing items or paying bills. It may be argued that, as long as you do not convert those digital currencies to traditional currency—unless governments change their minds about these currencies’ legal status as money—it would be legal to make an income in digital currencies and keep them or use them to buy things via merchants that accept them, without paying any taxes. This is, however, definitely a legal grey area, and your country may have clauses specifically banning this practice.

In any case, it is ALWAYS a good idea to do research on your own regarding laws in your own country, state, region, province etc, in order to insure that you are not accidentally committing illegal acts. Do not take any of the claims in this article as an excuse to buy, sell, trade, create, or otherwise transact in digital currencies without first doing your own research with regard to your own location, as your actions are your responsibility, and you ought to do your best to keep yourself safe.