The use of cryptocurrency as a means of payment is prohibited under Article 98 of the Organic Code of Monetary and Financial Affairs, with sanctions that include the seizure of cryptocurrencies and all products purchased with them. [54] As of December 25, 2021, no one had been prosecuted for this reason. The Ecuadorian financial system strictly blocks any transaction related to cryptocurrency. Nevertheless, on January 8, 2018, buying and selling bitcoins is legal, according to a statement from the Central Bank of Ecuador. [55] In December 2013, the governor of the Reserve Bank of Australia (RBA) suggested in an interview on the legality of Bitcoin: “Nothing would stop people in this country from trading in another currency in a store if they wanted to. There is no law against that, so we have competing currencies. [189] As of April 2018, Australian digital currency exchange offices will be required to register with the Australian Transaction Reports and Analysis Centre and implement know-your-customer policies to comply with the new anti-money laundering laws. [190] According to a 2014 statement by Brazil`s central bank on cryptocurrencies, they are not regulated, but discouraged due to operational risks. [51] In November 2017, this unregulated and discouraged status was reaffirmed by Brazil`s central bank. [52] On May 7, 2019, Brazil`s Special Department of Federal Revenue released a document on cryptocurrency taxes in the country. [53] Investing in cryptocurrencies and other initial coin offerings (“ICOs”) is highly risky and speculative, and this article is not a recommendation by Investopedia or the author to invest in cryptocurrencies or other ICOs. Since each individual`s situation is unique, a qualified professional should always be consulted before making financial decisions. Investopedia makes no representations or warranties as to the accuracy or timeliness of the information contained herein.

In 2016, the National Bank of the Republic of North Macedonia issued a press release about an investigation into ONECOIN, discouraging citizens from investing in it, as it was most likely a scam. In the same press release, the NBRM cited the law on foreign exchange transactions, but since cryptocurrencies are not foreign currencies as cited by the law, they are still not regulated. [182] On 16. In April 2021, the Central Bank of the Republic of Turkey issued an order prohibiting the use of cryptocurrencies, including Bitcoin and other digital assets based on distributed ledger technology, directly or indirectly to pay for goods and services, citing possible “irreparable” damage and transaction risks as of April 30, 2021. [73] [74] In March 2022, the Financial Conduct Authority (FCA) declared that all cryptocurrency ATMs in the country were illegal because none of the ATM operators had successfully registered with the agency. The FCA cited non-compliance with KYC laws as well as high risk to customers due to lack of regulation and protection. [187] [188] However, AMBD advised the public not to be easily attracted by advertising for investments or financial activities and to exercise due diligence and understanding of financial products before participating. There is no law that says that owning or trading Bitcoin is illegal. [ref. needed] In 2018, FINMA said it would take a “balanced approach” to the cryptocurrency industry and “enable legitimate innovators to navigate the regulatory landscape”. As of June 2021, a record 100 exchange-traded products (ETPs) and cryptostructured products with a total value of CHF 4.6 billion had been offered on the SIX Swiss Exchange. [149] While some states have expressly permitted its use and trade, others have prohibited or restricted it.

Similarly, various government agencies, departments, and courts have classified cryptocurrencies differently. It should also be noted that regimes that adopt Bitcoin as legal tender have claimed to bring financial inclusion to their population. However, financial inclusion must often be preceded by mobile phone and internet penetration. Without digital infrastructure, a digital currency alone will not solve the problem of financial inclusion. In fact, there are many countries with different cryptocurrency regulations. Some of them even distinguish Bitcoin, so it can be used as money, pay taxes, buy goods, or exchange it as a commodity. To better understand where we are going, we need to know where we have been. The timeline below gives you context and shows you how cryptocurrency (or at least the concept of digital currency) has been around for longer than some of us have been alive. If passed, Arizona will become the first U.S. state to consider Bitcoin legal tender. On December 31, 2013, the Financial Supervisory Commission (Republic of China) (FSC) and CBC issued a joint statement warning against the use of Bitcoin. It should be noted that Bitcoin remains highly volatile and highly speculative and has no right to legal claims or conversion guarantees.

[110] On April 27, the Parliament of the Central African Republic voted unanimously to make Bitcoin (BTC 4.25%) legal. If you are not familiar with your geography or do not follow politics in Central Africa, this may be the first time you know such a country exists. The Central African Republic is now the second country to do so last year. El Salvador was the first country to recognize Bitcoin as legal tender in June 2021. On December 7, 2017, Bank Indonesia, the country`s central bank, issued an order banning the use of cryptocurrencies, including Bitcoin, as a means of payment from January 1, 2018. [14] On November 11, 2021, the Indonesian Council of Ulema issued a Haram fatwa against the use of cryptocurrencies as currency, including Bitcoin, citing both Islamic laws and Indonesian banking and currency regulations.