Is Bitcoin Legal?


5 mins read May 25, 2023

The concerns on bitcoin’s legality

Why is this?

Fiat currencies such as dollars, pounds, euros and others are created and controlled by a central authority, the central bank. They have the law's backing, which means citizens can buy, sell, or keep the currency. If anyone tries to create or falsify the currency, they would be convicted. However, bitcoin isn’t like fiat currencies, and legislative policies about bitcoin are still fluid.

Another reason why people may be sceptical about the legality of bitcoin is its anonymity features. Although all transactions are publicly recorded on the blockchain, a bitcoin user's identity can remain completely anonymous. This is because the records displayed on the blockchain contain only the amount transferred and the public keys used.

Is bitcoin legal?

For example, countries like the United States, Canada, the United Kingdom, Japan, and many European countries have generally accepted cryptocurrencies like Bitcoin and have implemented regulations to govern their use, including taxation and anti-money laundering measures.

On the other hand, some countries have taken a more cautious approach or have outright banned cryptocurrencies. For instance, countries like China, Algeria, Bolivia, Nepal, and Pakistan have imposed restrictions or bans on cryptocurrencies, making their use illegal.

Bitcoin's status in Africa

While other African countries do not have a fixed regulation of Bitcoin and other cryptocurrencies, it is important to note that buying, selling and stocking these new currencies is becoming common place on the continent. Cryptocurrency exchange platforms have spread across African countries, educating citizens, offering affordable financial services and making money transfer across African countries easier and faster.

Final thoughts

Disclaimer: This article is meant to provide general guidance and understanding of cryptocurrency and the Blockchain network. It’s not an exhaustive list and should not be taken as financial advice. Yellow Card Academy is not responsible for your investment decisions.

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