Is Bitcoin legal?
Written by Samuel O'Toole on 06 March 2017« Return to Reading Room
Bitcoin is not regulated, in fact, it is wholly decentralised. The normal rules that relate to currency do not apply to Bitcoin, and for this reason many people have been asking “is Bitcoin legal?”
First and foremost, and like with normal currency, it depends on what you plan to do with the money. For example, if I were to be using Bitcoin to purchase illicit substances of the dark web it is almost guaranteed that my use of Bitcoin is illegal. The same would apply if I were using normal currency to purchase illicit substances.
The US Treasury Department’s Financial Crimes Enforcement Network reported that using Bitcoin for purchasing well-natured goods and services is not illegal. However, Bitcoin mining and operating a Bitcoin currency exchange is somewhat of a grey-area.
Two things are certain in life, death and taxes, when we apply the latter to Bitcoin can we be sure that the correct tax is being paid when purchasing items with Bitcoin. If somebody is using Bitcoin to avoid paying tax, this is tax evasion and very much illegal.
Money laundering, well if Bitcoin is being used to launder money...you guesses it very much illegal.
The hard-line is that Bitcoin is not illegal but its use may be illegal. But what may be illegal in one country may be legal in another.
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