Bitcoin and States In Which Countries Is Bitcoin Legal and Which Is It Not?

Bitcoin has started a new era in the world with the use of Cryptocurrency, which has been used as a digital transaction since 2009. All countries in the world inevitably came face to face with cryptocurrencies that can be traded between people in the shortest time without intermediary institutions at the least cost. This confrontation forced countries to introduce some legal regulations or try to control them by establishing a control system. Bitcoin, which is generally welcomed positively in the world, has been negatively received for some countries and has led to bans. So why were bans introduced or what regulations were made in the countries where they were used legally?

It would be correct to talk about the structure of Bitcoin before explaining the positive or negative regulations of the countries. Bitcoin is not issued, approved or regulated by any central bank. Instead, it is created through the computer-generated technological process known as mining. In addition to being a cryptocurrency that has nothing to do with any government, bitcoin is a peer-to-peer payment system that does not exist in physical form.

Countries That Allow the Use of Bitcoin

Bitcoin was used in illegal transactions due to its decentralized structure and the fact that it did not have the personal information of the person making the transaction, but now the Blockchain network has started to move away from this situation because the trace is sustainable in terms of its structure. As countries that accept and regulate this;

United States

The U.S. Treasury Department’s Financial Crimes Enforcement Network (FinCEN) has been providing information about bitcoin since 2013, ensuring that investors have access to accurate information. The Treasury has defined bitcoin as a money services business. Thus, it is subject to the Bank Secrecy Act, which requires exchanges and payment processors to comply with certain responsibilities such as reporting, recording and record keeping.

Canada

Canada, which has a positive view of Bitcoin, controls Bitcoin as a state by trying to prevent money laundering with legal regulations. Canada is putting exchanges under anti-money laundering (AML) laws because it defines Bitcoin as a trading transaction and bitcoin exchanges as money service businesses. Bitcoin exchanges are required to register with the Canadian Financial Transactions and Reports Analysis Centre (FINTRAC), report suspicious transactions, adhere to compliance plans, and even keep certain records.

Australia

Australia, on the other hand, has a similar attitude to Canada, defining Bitcoin as the money service companies of exchanges, so the Australian Taxation Office (ATO) considers it an asset for capital gains tax purposes.

European Union

On October 22, 2015, the European Court of Justice (ECJ) ruled that the purchase and sale of digital currencies is considered a service supply and that it is exempt from value-added tax (VAT) in all European Union (EU) member states. Other states attached to the United States also evaluated it positively.

El Salvador

El Salvador, the first of its kind in the world, is the only country in the world that allows bitcoin as a legal means of payment. In June 2021, he approved President Nayib Bukele’s proposal to officially accept bitcoin as a form of payment.
As we said at the beginning of our article, other countries around the world that many countries look at Bitcoin positively are mainly;

  • Japan
  • England
  • Americas
  • Canada
  • Malta
  • Ukraine
  • Switzerland
  • Estonia
  • Slovenia
  • Hong Kong
  • Georgia
  • Singapore
  • Germany
Countries That Do Not Allow the Use of Bitcoin

Although Bitcoin is welcomed positively in many countries, some countries are cautious because of its volatility, decentralized nature, perceived threat to existing monetary systems, and links to illegal activities such as money laundering. While some countries have banned the digital currency altogether, some countries have not yet made a regulation.

China

China is one of the countries that prohibit the use of Bitcoin and other crypto coins. All transactions have been banned in China, and the government continues to crack down on mining operations within the country’s borders.

Russia

Although the use is banned in Russia, which has a similar attitude to China, no legal regulation of Bitcoin has been introduced.

Viet Nam

The Vietnamese government and state bank are not regulated as an investment vehicle and argue that Bitcoin is not a legitimate payment method.

Even if there are not as many countries that look at Bitcoin positively, other countries that look at Bitcoin negatively;

  • Afghanistan
  • Pakistan
  • Bangladesh
  • Algeria
  • Macedonia
  • Saudi Arabia
  • Qatar
  • Viet Nam
  • Vanuatu
  • Bolivia
Countries that have not yet regulated the use of Bitcoin

Turkey is among the countries that have not yet imposed a restriction or legal regulation on Bitcoin and other crypto coins.

  • Turkey

Turkey continues its research on Bitcoin and other crypto coins. For the crypto coins that continue to be used in Turkey, our government has reported that it will make arrangements in the near future.

Other countries that still haven’t edited
  • Argentina
  • Kenya
  • Jordan
  • Kazakhstan
  • Malaysia
  • Maldives
  • Colombia
  • Panama
  • United Arab Emirates
  • Tanzania

Bitcoin and other hedgehogs are inherently ushering in a new digital age on Earth. It is known that Bitcoin is still used even in countries where its use is banned. We have provided information about this new technology in all countries around the world, both about their sanctions and their support.

What Are the Roles of RWAs in Decentralized Finance (DeFi)?
Real World Assets, or RWAs, are things like real estate, invoices, bonds, or even fine art that exist outside of crypto but are brought into blockchain systems through tokenization. Simply put, they are physical or traditional financial assets turned into digital tokens. These tokens can then be used within DeFi platforms just like any other crypto token. RWAs have become a hot topic in DeFi because...
What is Jupiter (JUP) and Why It Matters in Solana DeFi
Jupiter functions like a custom broker in Solana’s DeFi world. It does not host its own trading pools. Instead, it searches across other decentralized exchanges on Solana and picks the best price for users to swap tokens. That makes every swap more efficient and cheaper. It launched in October 2021 and has grown quickly because it delivers real value for traders and developer The rise in its popularity...
What Is Volatility? Understanding Market Fluctuations and Their Significance
In financial markets, volatility is one of the most critical concepts investors need to consider when making investment decisions. Representing both risk and opportunity, volatility can act as a guidepost for investors while also signaling uncertainty. This article aims to provide a comprehensive overview of volatility, its definition, causes, measurement methods, and significance in investment decisions....
US Announces New Tariff Rates - Tornado Cash Case Officially Ends
US Announces New Tariff Rates US President Donald Trump announced that he would postpone the entry into force of higher tariffs on imports until August 1. However, new tax rates were announced in official letters sent to 14 countries including Japan, South Korea, Thailand and Indonesia. These countries face rates ranging from 25% to 40%. The tariffs, previously scheduled to go into effect on July 9,...
Weekly Crypto Market Reports: June 30, 2025
In the crypto market report covering the week of June 30 – July 7 prepared by the ICRYPEX Research team, we have compiled current developments regarding crypto assets, price movements of crypto assets, and macroeconomics. You can take a look at the general flow of this report immediately below and reach all the developments that took place in the 7-day period from Weekly Crypto Market Reports:...


Create an account

Now create an account where you can use your knowledge.