Since the launch of Bitcoin, people gave mixed responses from everywhere. This idea was welcomed by a few and criticized by many. Western countries such as United kingdoms have already implemented this technology while other countries like Canada and Australia are still struggling with trust issues. There are nations who have completely banned its use and declared this currency illegal.
Is Bitcoin a legal currency?
Due to continuous acceptance and rejections in the international market, the value of Bitcoin has been fluctuating. Since, the structuring of cryptocurrency is based on de-centralization, Law enforcement agencies, tax and legal authorities have shown great concerns. The most risky characteristic of Bitcoin is its anonymous behavior. The identity of the beneficiary cannot be detected through blockchain technology, which may contribute to money laundering.
Bitcoin Regulation – Bitcoin legal issues
In Bangladesh and Bolivia, Bitcoin currency is illegal. Its trading is a punishable offence. The government believes that this concept would harm the users financially. In china, the currency is not illegal for citizens but bank employees cannot be a part of Bitcoin trading. To our surprise, China is one of the biggest markets for Bitcoin.
In Sweden, the ban is restricted to certain businesses but not on overall markets. Vietnam government has not issued any statements on official ban but has been continuously discouraging the public for using Bitcoins. In Thailand, the bank of Thailand has ruled the currency illegal.
Thus, most of the nations have one or the other concern and therefore they do not want to promote or encourage Bitcoin. Most of the authorities i.e. Central banks or national governments have taken strict actions so that they can prevent any criminal activity that may occur. Drug trafficking and arms dealing can easily find their way through Bitcoins. Thus, Bitcoins has a dark side too. The market for Bitcoin would grow only if the concept has more stability.