Countries Where Crypto Is Illegal or Legal In 2024
Even though the popularity of cryptocurrency is growing, and its acceptance doesn’t surprise an increasing number of people, its status in different countries differs. While some countries accept cryptocurrency as a legal tender, others ban it at all, and any activities connected with crypto, including mining, are considered illegal.
Countries Where Cryptocurrency Is Legal
Legality of Bitcoin
Bitcoin is the major cryptocurrency. That’s why it would be correct if we check the legal status of crypto around the world on the example of Bitcoin.
Let’s start with a positive note - places where Bitcoin is legal. As you can see from the map, the majority of countries accept crypto, and in many countries, the use of cryptocurrency is regulated. Actually, more than 111 countries consider cryptocurrency legal.
The most crypto-friendly countries are the following.
Antigua and Barbuda
This country accepts Bitcoin as a payment for citizenship. The country’s government protects exchanges and encourages people to use crypto.
Australia
Cryptocurrencies have been completely legal since 2017, and income from crypto is taxed.
Barbados
Barbados welcomes cryptocurrencies in all fields in the country. DCash, the Barbados crypto, has been in circulation since 2022.
Belgium
The country considers cryptocurrency as an alternative to fiat money. Income from cryptocurrencies is taxed.
Cayman Islands
New legislation has been passed recently. The country is friendly to crypto, and the taxes on crypto are favourable.
Chile
Cryptocurrency exchanges are protected in the country, and the legislation is very crypto-friendly.
Dominika
The country is planning to test the application of DCash, and the attitude to crypto and Bitcoin is positive. The government was even planning to give out BTC to people but these plans were canceled.
Estonia, Finland, and Germany
Cryptocurrencies are legal, they can be bought, sold, and exchanged. Crypto is not a legal tender in any of these countries.
Indonesia
Cryptocurrency is regarded as a commodity when traded. It cannot be used as a payment method.
Italy, Ireland, Japan, Lithuania
Cryptocurrencies are legal. They are taxed differently depending on different scenarios. In Lithuania, earnings up to 2,500 EUR are tax-free.
Malta
Malta is a home for Binance and OKEx, the two biggest cryptocurrency exchanges. The country is known for being very open to new technologies, and a hub for crypto-related businesses.
Mauritius
Cryptocurrency is a digital asset in the country.
Marshall Islands
The SOV, or sovereign, is the national currency of the country and is powered by blockchain.
New Zealand
Cryptocurrency equals gold and is taxed accordingly.
Norway
Cryptocurrency is an asset and is taxed accordingly.
The Philippines
Cryptocurrencies are legal and are subject to regulation by the SEC. Any businesses operating with crypto have to be licensed by the Philippines Central Bank.
Serbia
Any businesses working with crypto need to have a special licence. Cryptocurrencies are legal and considered an asset.
South Korea
Cryptocurrencies are legal and regulated by the government. All businesses operating with crypto are required to report transactions in cryptocurrency.
Sweden
Crypto is legal and taxed.
Switzerland
Cryptocurrencies are legal, and legislation is very crypto-friendly. Enterprises that operate with crypto need to have special licences.
Ukraine
Cryptocurrency is classified as property. It is legal, and the country is considered crypto-friendly.
The United Kingdom
Bitcoin is classified as money. Exchanges need to have a licence to operate in the country.
The United Arab Emirates
The country is open to innovation and new technologies, including cryptocurrencies. Cryptocurrency is legal in the country, and the UAE even plans to have the majority of all transactions performed via blockchain by 2023.
The USA
Cryptocurrency is legal and regulated. Exchanges need to have a licence to operate in the country.
Uzbekistan
Cryptocurrency is legalised in the country. Crypto exchanges need to be licensed to operate. Income from cryptocurrency-related activities is not taxed.
Venezuela
Even though cryptocurrency is legal now, the history of crypto in the country is very controversial. In 2017, Venezuela created its own crypto which was petroleum-backed. In 2018, the government banned crypto. And in 2020, crypto became legal again. For now, the country seems to be loyal to cryptocurrency.
Countries Where Cryptocurrency Is Legal Tender
El Salvador
In El Salvador, Bitcoin is legal tender, along with the US dollar.
Countries That Ban Cryptocurrency
Even though in the majority of countries, cryptocurrencies are welcomed, there are still places that ban the new type of money. Or rather there are places where the government is cautious with crypto, and there are countries where all activities with cryptocurrencies are illegal.
Countries Where Cryptocurrency Is Illegal
Among countries where cryptocurrency is not legal, we can distinguish those countries where there is no regulation, those where there is an implicit ban, and finally, those countries where there is an absolute ban on cryptocurrencies.
Countries Where Crypto Is not Regulated
Mexico
Cryptocurrencies are not regulated even though they are actively used. There are plans to regulate them in the near future.
Nicaragua
There is no regulation on crypto. Cases are known when people used cryptocurrency to buy property in the country.
Brazil
Cryptocurrency is not regulated. Its use is discouraged by the government because of the high risks.
Pakistan
Even though cryptocurrency is not regulated in the country, some social media influencers and bloggers don’t hide that they trade cryptocurrencies.
Brunei
Bitcoin and cryptocurrency is not legal tender in the country, is not legalized but is also not banned.
Bosnia and Herzegovina, Bulgaria, Cyprus, Greece, Ireland, and the Netherlands don’t have any regulation on cryptocurrencies, either.
Countries with Implicit Ban
Bahrain
The use of crypto is permitted only based on a licence.
China
Even though China was once a Bitcoin mining hub, things have changed recently. The country has introduced a lot of rules and banned many crypto-related activities.
In Hong Kong, Iran, Turkey, and Vietnam the use of cryptocurrencies is possible but heavily restricted.
Countries with Absolute Bans
While some countries introduce limitations on the use of cryptocurrencies, others ban them at all. The following countries don’t permit any activities with crypto as it is considered illegal.
- Algeria
- Bolivia
- Bangladesh
- Dominican Republic
- Ghana
- Nepal
- Qatar
- Vanuatu
These countries ban the use of cryptocurrencies completely by giving different reasons to do so. Crypto is not legal tender, it is not backed by anything, and the possibilities of crimes and fraud are too high - these are just some of the explanations why these countries don’t permit cryptocurrency.
Conclusion
Just some years ago, most countries still were guessing what they would do with cryptocurrency. Now, the progress is evident: the adoption of crypto and blockchain is growing. Only those countries that have strong superstitions against changes ban cryptocurrency. But even their number is decreasing.
FAQ
What is the most crypto-friendly country?
There are many countries that accept and welcome cryptocurrency. But the friendliest one is El Salvador where Bitcoin is legal tender.
Where is Bitcoin banned?
Bitcoin is banned in several countries such as Algeria, Bolivia, Bangladesh, Dominican Republic, Ghana, Nepal, Qatar, Vanuatu.
In which country is cryptocurrency illegal?
Crypto is illegal in a number of countries such as Algeria, Bolivia, Bangladesh, Dominican Republic, Ghana, Nepal, Qatar, Vanuatu.
Stay tuned for further updates, crypto guides, and market insights from LetsExchange. You can also follow us on Twitter, Facebook, Reddit, Instagram, LinkedIn, Medium, Quora, Telegram, Steemit, and Bitcointalk for first-hand information from our team.