Bitcoin banned countries list by ForexSQ experts, List of Top 10 countries block Bitcoin exchange trading, The BTTC digital currency trading is illegal in China, Russia, India and many other countries, Below is complete list of Bitcoin legal and illegal countries.
Top 10 Bitcoin Banned Countries
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In December 2013, the governor of the Reserve Bank of Australia (RBA) indicated in an interview about bitcoin legality stating, “There would be nothing to stop people in this country deciding to transact in some other currency in a shop if they wanted to. There’s no law against that, so we do have competing currencies.”
Australia classifies bitcoin as property and therefore purchases made with bitcoin as barter. The Australian government has released tax guidelines for individuals and businesses and claims that bitcoin is subject to goods and services tax (GST) and capital gains tax. However, in March 2016 the treasurer indicated that GST on bitcoin would be dropped.
In 2016 Justice Minister Michael Keenan indicated that Australia would be seeking to further regulate bitcoin in an effort to prevent money laundering and terrorist financing via the digital currency.
China is one of the top bitcoin banned countries in the list, It is a common misconception that bitcoin and digital currency are totally banned and illegal in China, but China has become the world’s largest bitcoin trading market. The bitcoin ban is strictly on banks, as the central banking authority, The People’s Bank of China is owned 70% by the Chinese government. Banking institutions and employees are banned from engaging in bitcoin business through banking, as well as servicing or doing business with the bitcoin industry. Trading or mining in bitcoin is not illegal for common citizens.
On 19 August 2013, the German Finance Ministry announced that bitcoin is now essentially a “unit of account” and can be used for the purpose of tax and trading in the country. It is not classified as a foreign currency or e–money but stands as “private money” which can be used in “multilateral clearing circles”, according to the ministry.
On 16 November 2013, Norman Chan, the chief executive of Hong Kong Monetary Authority (HKMA) said that bitcoins is only a virtual commodity. He also decided that bitcoins will not be regulated by HKMA. However, the authority will be closely watching the usage of bitcoins locally and its development overseas.
India is also one of the biggest bitcoin banned countries in the list, Indian BankBTCXIndia was the first bitcoin exchange designed and built in India. While following KYC and AML guidelines, and allowing instant INR (Indian rupee) deposits and withdrawals, BTCXIndia was forced to close by their bank, which no longer services bitcoin businesses. The reasons are unknown, whether it is based on a perceived risk or just a simple ban by management, but the issue is widespread in India.
“We have today been informed by our bank that they will no longer serve bitcoin businesses,” the notice stated. “We have investigated the possibility to operate through other banks, but it seems this is a general policy in India as of today.”
On 21 December 2013, Difi Ahmad, the executive director of communication at Bank Indonesia (BI) said that bitcoin is a potential payment method but could potentially be used in scams and money laundering operations. Since it is not regulated by banks, it has its associated risks. The central bank of Indonesia is currently studying bitcoin and they have no plans to issue regulations on it.
On February 19, 2014, the Bank of Israel issued a public service announcement detailing some of the risks associated with using bitcoin.
On August 11, 2014, the Bank of Israel announced the formation of an inter-bureau team exploring the bitcoin issue, including representatives of the Bank of Israel, Ministry of Finance, Israel Money Laundering and Terror Financing Prohibition Authority, Israel Tax Authority, Israel Securities Authority and more. As of March 2015, no official guidelines regarding bitcoin have been published.
The Israel Bar Association considers the virtual currency an appropriate form of payment for attorneys.
On 7 March 2014, the Japanese government, in response to a series of questions asked in the National Diet, made a cabinet decision on the legal treatment of bitcoins in the form of answers to the questions. The decision did not see bitcoin as currency nor bond under the current Banking Act and Financial Instruments and Exchange Law, prohibiting banks and securities companies from dealing in bitcoins. The decision also acknowledges that there are no laws to unconditionally prohibit individuals or legal entities from receiving bitcoins in exchange for goods or services. Taxes may be applicable to bitcoins.
According to Nikkei Asian Review, in February 2016, “Japanese financial regulators have proposed handling virtual currencies as methods of payment equivalent to conventional currencies”.
On 4 November 2013, Bank Negara Malaysia (BNM) met with local bitcoin proponents to learn more about the currency but did not comment at the time. BNM issued a statement on 6 January 2014 that bitcoin is not recognised as a legal tender in Malaysia. The central bank will not regulate bitcoin operations at the moment and users should aware of the risks associated with bitcoin usage.
Russia is also in the list of bitcoin banned countries in the world, Even with the recent legal victory in Ural recently, setting a legal precedent to lift the banning of websites related to bitcoin and other digital currencies, bitcoin is banned in practice, if not officially legal yet. With the Russian ruble rebounding, but still down over 30% from January 2014, banks and the national government aren’t looking kindly on those who are investing in other currencies, digital or not. Gold purchases are frowned upon in Russia, so proceed with caution.
On September 22, 2013, the Monetary Authority of Singapore (MAS) warned users of the risks associated with using bitcoin stating “If bitcoin ceases to operate, there may not be an identifiable party responsible for refunding their monies or for them to seek recourse” and in December 2013 stated “Whether or not businesses accept bitcoins in exchange for their goods and services is a commercial decision in which MAS does not intervene” In January 2014, the Inland Revenue Authority of Singapore issued a series of tax guidelines according to which bitcoin transactions may be treated as a barter exchange if it is used as a payment method for real goods and services. Businesses that deal with bitcoin currency exchanges will be taxed based on their bitcoin sales.
The South Africa Reserve Bank Position Paper on Virtual Currencies issued on 3 December 2014 came to 3 conclusions:
1. The Bank does not oversee, supervise or regulate the Virtual Currency (VC) landscape, systems or intermediaries for effectiveness, soundness, integrity or robustness. Consequently, any and all activities related to the acquisition, trading or use of VCs (particularly Decentralized Convertible Virtual Currencies – DCVCs) are performed at the end-user‟s sole and independent risk and have no recourse to the Bank.
2. Given the current landscape and information currently available, the Bank contends that VCs pose no significant risk to financial stability, price stability or the National Payment System. However, end-users, whether individuals or businesses that accept VCs and businesses involved in the VCs ecosystem, are cautioned that any activities performed or undertaken with VCs are at their sole and independent risk.
3. In line with the Bank‟s position that regulation should follow innovation, the Bank continues monitoring developments in this regard and reserves the right to change its position should the landscape warrant regulatory intervention.
The Swedish jurisdiction is in general quite favorable for bitcoin businesses and users as compared to other countries within the EU and the rest of the world. The governmental regulatory and supervisory body Swedish Financial Supervisory Authority (Finansinspektionen) have legitimized the fast growing industry by publicly proclaiming bitcoin and other digital currencies as a means of payment. For certain businesses interacting with fiat (mainly exchanges) the current regulation dictates that an application for approval/license must be filed and all the AML/CTF and KYC regulations applicable to more traditional financial service providers must be followed.
Thailand is also in the list of bitcoin banned countries, In 2013, the Thai monetary authority, the Bank of Thailand, “issued a preliminary ruling that using bitcoins as described was illegal.” A bitcoin startup denied a business license was reportedly told that “buying and selling bitcoins, using bitcoins to buy or sell goods and services, and transferring bitcoins in and out of Thailand were all currently illegal.”
Bitcoin is treated as ‘private money’. When bitcoin is exchanged for sterling or for foreign currencies, such as euro or dollar, no VAT will be due on the value of the bitcoins themselves. However, in all instances, VAT will be due in the normal way from suppliers of any goods or services sold in exchange for bitcoin or other similar cryptocurrency. Profits and losses on cryptocurrencies are subject to capital gains tax.
The U.S. Treasury classified bitcoin as a convertible decentralized virtual currency in 2013. A Magistrate Judge of a Texas U.S. District Court classified bitcoin as a currency. A June 2014 U.S. government auction of almost 30,000 bitcoins, which the U.S. Marshals Service seized in October 2013 from Silk Road, was said to increase legitimacy of the currency.
The U.S. Government Accountability Office (GAO) recommended in May 2013, that the Internal Revenue Service (IRS) formulate a tax guidance for bitcoin businesses. End of March 2014, in time for 2013 tax filing, the IRS issued a guidance that it considered virtual currency as property for federal taxation and that “an individual who ‘mines’ virtual currency as a trade or business is subject to self-employment tax”.
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