It is a well know fact that currencies are generally released and controlled by Central Banks. If ordinary citizens try to create and circulate any amount of money, they will end up finding themselves behind bars. The emergence of bitcoins and other cryptocurrencies gave rise to misconceptions about the currency systems, as the digital currencies are not controlled by anyone at all. Anyone who has deep computer literacy can mine coins by just being an active part of a community. Thus, Bitcoins and other viral currencies have long been a matter of interest and confusion at the same time. Various questions arise concerning viral currencies, such as what it is for or whether it is the currency of future. Some people seek ways to mine bitcoins and other cryptocurrencies online, others have already made purchases with them. Yet the main question still remains unanswered: are Bitcoin and Cryptocurrencies legal?
Generally, the legality of bitcoins and other cryptocurrencies depends on how the digital currency is used. Some countries, such as Bangladesh, Bolivia, Ecuador, China, India and many more, have officially declared the use of cryptocurrencies illegal. Yet, thousands of transactions are being made with cryptocurrencies all over the world every day.
The main fear over viral currencies is that the platform can be used for money laundering and purchasing of illegal goods without being traced. Whether the circulation of viral currency is legally banned or the income from an exchange and the sale of bitcoins is taxable, mainly depends on the policy of the country. The US Treasury Department’s Financial Crimes Enforcement Network states that using bitcoin for purchasing well-natured goods and services is legal. The IRS views bitcoins as property for federal tax purposes.
It is good to always be informed on the latest regulations concerning the viral currency, notwithstanding how and where you intend to use bitcoins. However, with the rise of cryptocurrency popularity, the question about bitcoin’s legality still continues to be a hot topic of discussions.