They are neither legal tender nor currency, (3) cannot be used to settle tax obligations, (4) do not meet the criterion of universal acceptance at points of purchase and service, (5) are not electronic money, (6) are not payment services (in legal terms), (7) are not financial instruments (in legal terms). They added that trading virtual currencies in Poland does not violate national or European law, but that with virtual „currencies“ it carries many risks: (1) risk associated with the possibility of losing funds due to theft, (2) risk associated with the lack of collateral, (3) risk of lack of universal acceptance, (4) Risk associated with the possibility of fraud, (5) Risk of high price changes. Because of these risks, NBP and KNF warn against buying and investing in virtual currencies. NBP and KNF acknowledge that the purchase, holding and sale of virtual currencies by companies regulated by KNF (e.g. banks) would be subject to high risks and would not ensure stable and prudent management of the financial institution. Financial institutions need to be careful when dealing with and collaborating with virtual currency „trading companies.“ In August 2017, the Canadian government accepted Impak Coin as the first legalized cryptocurrency. The Quebec regulator had already legalized Bitcoin for some limited business models such as ATMs and exchanges. Owning and trading cryptocurrencies in Georgia is legal. Due to the lack of government regulation and cheap and available hydropower, Georgia is a crypto mining center. The use and trading of Bitcoin and other popular virtual currencies is legal in Singapore, but the government does not control the operation or price of these currencies. Cryptocurrencies are said to be inherently unregulated.

The detailed account of countries that accept cryptocurrencies or crypto regulations shows the value of regulations in the crypto landscape. As the influence of cryptocurrencies grows stronger with multiple value-based benefits and utilities, governments are brainstorming new ways to embrace crypto. However, the list of legal countries for cryptocurrencies also highlights some limitations that require immediate responses. On November 4, 2013, Bank Negara Malaysia (BNM) met with local Bitcoin advocates to learn more about the currency, but did not comment at the time. [113] BNM issued an opinion out of 6. In January 2014, it issued a statement that Bitcoin is not recognized as legal tender in Malaysia. The central bank will not regulate bitcoin operations at this time and users should be aware of the risks associated with using bitcoin. [114] [115] [3]: Malaysia Absolute prohibition.

[14] The use of any cryptocurrency is illegal in Nepal. [91] The peer-to-peer digital currency Bitcoin debuted in 2009, introducing the concept of decentralized funding to the world. While tax authorities, law enforcement agencies, and regulators around the world are still debating how to control it, many consumers are wondering if they can legally use Bitcoin. The Swedish jurisdiction is generally quite favorable for Bitcoin businesses and users compared to other countries in the EU and the rest of the world. The regulatory and supervisory authority of the Swedish Financial Supervisory Authority (Finansinspektionen) has legitimized the growing industry by publicly proclaiming Bitcoin and other digital currencies as a means of payment. For some businesses that interact with exchanges (mostly exchanges), current regulations require that an application/license be submitted and all AML/CTF and KYC regulations that apply to more traditional financial service providers must be followed. The Commodities Futures Trading Commission (CFTC) has a larger potential footprint in Bitcoin regulation as it refers to cryptocurrency as a „commodity“. While it has yet to develop comprehensive regulations on Bitcoin, its recent efforts have focused on monitoring the nascent futures market.

It has also filed charges in several Bitcoin-related systems, underscoring its intention to exercise jurisdiction over cryptocurrencies if there are suspicions of fraud. So which countries have adopted Bitcoin as legal tender and how did they do it? El Salvador is the first country to adopt Bitcoin as legal tender. In addition to the macroeconomic factors described above, the country had a leader willing to experiment with Bitcoin. Since then, he has been a loyal ambassador for cryptocurrency. The Bank of Thailand had legalized the use of Bitcoin in the country in 2017. The exchange and trading of digital currencies is allowed as long as precautions are taken. Only licensed Bitcoin exchanges in Thailand are allowed to exchange cryptocurrencies for Thai baht.  In January 2018, the Grand Mufti of Egypt stated that cryptocurrency trading was prohibited by Islamic religious law due to the risk associated with the activity. Although it is not legally binding, it is considered a high-level legal opinion. Bitcoins can be considered money, but not legal tender. A bitcoin may be considered a commodity or item under the Argentine Civil Code, and transactions involving bitcoins may be subject to the rules governing the sale of goods under the Civil Code. [3]: Argentina On May 5, 2022, Argentina`s central bank banned financial institutions from facilitating cryptocurrency-related transactions.

[49] Making Bitcoin (BTC) legal means that someone who wants to pay for a cup of coffee can use BTC to pay for it. Without a central bank declaring Bitcoin legal tender, the risk of accepting BTC for goods sold would fall on merchants. If the central bank has explicitly declared Bitcoin legal tender, then it becomes an official form of value exchange within the economy. The Maltese cabinet recently approved bills to regulate cryptocurrency and ICOs in the country, officially making it a full-fledged crypto-legal country. In addition to major crypto coins, many exchanges, ICOs, and smart contracts will also be legal in the country. This decision was taken with the aim of stimulating the development of a digital economy. According to the news, crypto activities will be completely exempt from tax. The European Union recognizes Bitcoin and other cryptocurrencies as crypto assets. It is not illegal to use Bitcoin within the EU; However, the European Banking Authority, the Union`s monetary regulator, has stated that activities related to crypto-assets are beyond its control and continues to warn the public and businesses about the risks of cryptocurrency. In November 2016, bitcoins were „not illegal,“ according to Russia`s Federal Tax Service.

[156] Deputy Minister of Finance of the Russian Federation, Alexei Moiseev, said in September 2017 that it was „probably illegal“ to accept cryptocurrency payments. [157] However, Bitcoin market sites are blocked and court rulings indicate that Bitcoin is a banned currency substitute on the territory of the Russian Federation. [158] Bitcoin is considered a commodity,[58] and not a security or currency under the laws of the Kyrgyz Republic and can be legally mined, bought, sold and traded on a local commodity exchange. [59] The use of Bitcoin as a currency in national regulations is restricted. [60] Any discussion of a legal list of countries for cryptocurrencies would draw attention to Bitcoin. However, Bitcoin is not the only cryptocurrency. The general impression on cryptocurrencies would present them as effective tools for making anonymous transactions between users around the world. However, the anonymity associated with the use of cryptocurrencies encourages the frequency of fraudulent activity. More importantly, the lack of regulatory control of cryptocurrencies and the illegal use of cryptocurrencies cast doubt on their credibility.