For everyone moving into the world of digital currency, knowing if it’s legally acceptable in your country is very important. This is to show that not every country accepts cryptos such as Bitcoin – there are several parts of the world where Bitcoin cannot be offered for transactions, including for trading as a commodity, purchasing goods, or paying taxes. In this article, we will explore countries where digital currencies such as Bitcoin are legally recognized in 2022.
The Bitcoin-friendly countries in 2022
● Antigua and Barbuda
To ensure that crypto users and exchanges are well-protected, a bill was passed. This clearly signals that Bitcoin (BTC) will soon be made a legal tender in the country, allowing people to transact using BTC.
Since 2017, Australia has legalized digital currencies, opening a way for crypto users to make their transactions using BTC and other available digital currencies. Besides, these virtual assets are subject to Capital Gains Tax.
Barbados is one of the countries that allow the legal use of digital currencies. In fact, it is the owner of Dcash, a virtual currency made active in the crypto market in 2022.
Belgium recognizes Bitcoin and other virtual currencies as a great alternative to real cash. The currencies are legal to be traded and held. Nonetheless, the National Bank of Belgium and the Financial Services and Markets Authority never consider them legal tender, warning citizens against associated risks.
Bulgaria does not define BTC and other cryptocurrencies as electronic money or financial instruments. With this, people can use them in business without a license. Besides, digital currencies are given similar treatments as a sale of financial asset income– they are taxable.
● Cayman Islands
As of May 2022, Crypto mining is not prohibited or regulated in the Cayman Islands under the VASP act. The country’s tax laws are, in fact, in favor of the cryptocurrency business.
Chile places digital currencies under the mobey policies of the country. For crypto users, there is the provision of ultimate protections for their exchanges.
Croatia legalizes using Bitcoin and other cryptocurrencies to be held and traded. Nonetheless, the Croatia National Bank (CNB) reiterated in 2017 that digital currencies could not be legally tendered for payment or considered foreign.
Although digital currencies are not considered legal tender in Estonia, they are seen as virtual currencies with digital value and are ideal for payment.
● El Salvador
El Salvador is the only country that considers BTC as legal tender. The announcement of the Bitcoin law in June 2021 in Miami at a crypto conference made her the first country to accept BTC as legal tender and recognized as a means of payment for businesses.
In Finland, cryptocurrencies are considered virtual currencies and legal. In a Bitcoin-friendly environment, Bitcoin is not banned but is seen as an easy means to purchase and sell from an exchange.
In Germany, digital currencies can be purchased, sold, and held. These are allowed if the assets are from a licensed institution.
Since 2019, digital currencies have been considered legal in Indonesia. They are seen as a commodity oy for trading and not for payment.
Digital currencies are legal in Italy but are subject to personal and corporate income tax.
Italy regards digital currencies as virtual assets. And based on some scenarios, they are taxed differently.
Digital currencies are considered legal j Japan. The Payment Services Act defines crypto-assets as payment methods.
Lithuania allows people to engage in financial transactions using digital currencies. The state (FCIS) offers an official permit for regulating and conducting crypto business.
Malta is the home of popular crypto exchanges such as OKEx and Binance. This is due to its wide acceptance of digital currencies.
Mauritius is one of the countries that legalize digital currencies. The regulations of the currencies are under the “Digital Asset” category.
● Marshall Islands
The Marshall Islands passed the Sovereign Currency Act in 2019 to make her currency digital. The sovereign is powered by blockchain.
● New Zealand
In New Zealand, digital currencies are compared to gold and are also subject to taxes.
In Norway, virtual currencies are considered legal assets and subject to taxes.
The Central Bank of the Philippines has regulated crypto exchanges, and the government has considered virtual currencies legal. But related financial services are subject to guidelines.
In Serbia, digital currencies are considered virtual assets and subject to taxes. All crypto-related services require a license.
● South Korea
Cryptocurrencies are considered legal in South Korea, regulated by the government, and subject to anti-money laundering laws.
Every trade that involves BTC is considered a financial service in Sweden, and gains are subject to taxes.
Cryptocurrencies are considered legal in Switzerland, but licenses are required for operations.
In Ukraine, digital assets are considered legal property. Crypto exchanges are done legally, and banks can open accounts for crypto businesses.
● United Kingdom
In the UK, crypto exchanges must meet some FCA requirements. And BTC is considered a private asset.
● United Arab Emirates
In UAE, cryptos are not considered a legal tender. But they can be bought, sold, and held.
● United States
In the US, digital currencies are subject to tax laws. Although legal, some banks may stop or question deposits to crypto exchanges or crypto sites.
In Uzbekistan, Bitcoin is not illegal. Gains are not taxed, but exchanges must follow specific requirements, and licenses are required.
Crypto activities are legal in Venezuela. They can be created, circulated, used, and exchanged by legal entities and individuals
There are reasons for the legality of these digital currencies. Several countries consider them legal because they are seen as a means to improve the standard of living and bring in capital, tax revenue, and innovation. No one will want to be left behind in the ongoing global digital innovation.