Very few jurisdictions have outright banned cryptocurrencies, but the legal status of Bitcoin and other cryptocurrencies varies from country to country and in many cases, the answer depends on where you are located and how the cryptocurrency is used (e.g., as a type of investment property, a form of payment for goods and services, etc.).
Cryptocurrencies do have a defined legal status in a small number of countries such as the US, Canada, Japan, Philippines, and others, but the legal treatment and regulations vary from country to country and sometimes even within a country’s states or provinces.
Many lawmakers, tax authorities and financial regulators around the world are still considering what legal status cryptocurrencies should be given in their locales. Some of their key areas of consideration are whether cryptocurrencies are a type of property, commodity or form of payment, whether cryptocurrencies should be taxed, whether trade in cryptocurrencies should be regulated, and/or whether restrictions should be implemented on certain types of activities involving cryptocurrencies.
Although officials and agencies in many countries have expressed enthusiasm for the benefits cryptocurrencies can bring to society and have remained “hands-off” while considering how to treat cryptocurrencies, many have also expressed the need to eventually impose regulations to both protect consumers and mitigate the risks posed by criminals who may attempt to use cryptocurrencies in carrying out money laundering, funding of terrorism, or other illegal activities. As such, we expect the legal and regulatory status of cryptocurrencies to continue evolving and to more and more countries begin enacting laws and regulations in this area.
The Compliance team at QUOINE Corporation continuously monitors the legal and regulatory landscape of the countries in which we operate and where our customers are citizens or residents. We are committed to protecting the interests of our customers, protecting our customers’ assets and information, and operating our business in line with applicable laws, ordinances, and regulations.
If you have concerns about whether it is legal to use our services in your location, please feel free to give us the details and ask us by email at: firstname.lastname@example.org
Note: Tax treatment of cryptocurrencies may vary from country to country also, and in some jurisdictions, it may be the responsibility of the taxpayer to report holdings or gains and losses made from buying and selling cryptocurrencies. If you are unsure of your tax obligations with regard to holding, buying or selling cryptocurrencies, we urge you to consult with your tax authority or a reputable tax lawyer or advisor in your jurisdiction.