Apart from some controversies over the legalization of cryptocurrencies, some countries believed in the latest cryptocurrency trends of 2023 and came forward in their support and contributed to the growth of worldwide crypto adoption in e-commerce and other industries. As of now, only El Salvador and the Central African Republic consider Bitcoin as legal tender. But some signs may let us see some more countries joining the club soon.
Countries That Allow Cryptocurrencies to be Used
El Salvador is the first country to announce Bitcoin as a legal tender. The government of El Salvador made this announcement in September 2021. The government relied on various measures that promote the utilization of cryptocurrencies. The bill officially announced to make cryptocurrencies a legal form of value exchange and did everything possible to make it accessible for everyday consumers.
The Central African Republic is the second country to adopt Bitcoin as a legal tender. The nation has always been crypto-friendly. Individuals’ support and the country’s regulatory environment have been supporting blockchain technology and crypto-related developments actively.
The United States allows individuals and businesses to store or exchange cryptocurrencies under the category of Money Services Businesses (MSB), which falls under the Bank Secrecy Act. The Treasury has considered it as a substitute for fiat currency that can be exchanged just like real currency.
The US government itself owns a healthy amount of cryptocurrency according to Forbes. This shows the government’s support and faith in cryptocurrencies.
The European Union has had mixed views on cryptocurrencies. Though it doesn’t consider them totally illegal, some members of the EU have been skeptical about the utilization of cryptocurrencies. But some have made some impressive decisions to make them more accessible. Let’s not forget that the European Banking Authority has warned of risks caused by utilizing cryptocurrencies.
In Canada, Crypto exchanges fall under Money Services Business (just like in the United States). They’re considered a commodity for tax purposes. Individuals are allowed to use and trade cryptocurrencies in Canada under some rules and regulations. These rules are meant to prevent money laundering and terror financing using cryptocurrencies. However, crypto banking is still prohibited in Canada.
Israel has never been much critical of cryptocurrencies. One can see a country’s support by seeing too many crypto ATMs and mainstream retailers accepting crypto payments. Though Bitcoin isn’t considered a currency, asset, or security, a 25% capital gains tax is charged on selling Bitcoins.
Australia has kept a similar approach as Canada to cryptocurrencies. For Australian authorities, cryptocurrencies are taxable digital assets. Individuals in Australia are expected to pay taxes for buying, selling, gifting, or converting cryptocurrencies (into fiat). However, individuals don’t need to pay taxes in most cases of holding cryptocurrencies and earning profits.
India’s take on cryptocurrencies was initially debatable. But now, they’re clear enough to make individuals start adopting them based on some crypto market predictions. The government of India has been working to prevent the use of Bitcoin in illicit activities and it has backed the blockchain technology. Previously, buying and selling cryptocurrencies was prohibited in India, but it was lifted later by the Reserve Bank of India.
These were some major names that have a positive approach to cryptocurrencies let’s have a brief look at the countries that may be totally crypto-friendly someday.
Honorable mentions:
| Country | Trading and Holding | Payments | Banking |
| Nigeria | ✓ | ✓ | メ |
| South Africa | ✓ | ✓ | ✓ |
| Mexico | ✓ | ✓ | ✓ |
| Caribbean Islands | ✓ | ✓ | ✓ |
| Brazil | ✓ | ✓ | ✓ |
| Ecuador | ✓ | メ | メ |
| Saudi Arabia | ✓ | ✓ | メ |
| UAE | ✓ | ✓ | メ |
| Pakistan | ✓ | ✓ | ✓ |
| Hong Kong | ✓ | ✓ | ✓ |
| Japan | ✓ | ✓ | ✓ |
| South Korea | ✓ | ✓ | ✓ |
| Taiwan | ✓ | ✓ | メ |
| Singapore | ✓ | ✓ | ✓ |
| Thailand | ✓ | メ | ✓ |
| Czech Republic | ✓ | ✓ | ✓ |
| Germany | ✓ | ✓ | ✓ |
| Russia | ✓ | ✓ | ✓ |
| Italy | ✓ | ✓ | ✓ |
| France | ✓ | ✓ | ✓ |
| UK | ✓ | ✓ | ✓ |
| Austalia | ✓ | ✓ | ✓ |
| New Zealand | ✓ | ✓ | ✓ |
| Fiji | ✓ | ✓ | ✓ |
Source: Wikipedia
Notes:
- ✓ means legal and メ means illegal.
- In Ukraine, individuals aren’t allowed to exchange cryptocurrencies with their native fiat currency.
- In Kosovo, it’s illegal to mine cryptocurrencies.
- It’s surprising that China, one of the largest economies in the world has declared cryptocurrencies illegal. Some other Asian countries like Bangladesh, Afghanistan, and Nepal have also banned cryptocurrencies. Let’s hope for the best future of cryptocurrency payments!
- The author has referred to various sources before displaying the data. However, the author or any other individual from the team Coinremitter doesn’t guarantee the complete accuracy or truthfulness of the information in this article.