Bitcoin Legality
Bitcoin Legality
Is Bitcoin legal?
In most modern countries, it is officially allowed to conduct monetary transactions using bitcoins. In a number of countries, cryptocurrency is recognized as a unit of account along with fiat money.
Other countries, such as Japan, have recognized bitcoins as legal tender. The government of the People’s Republic of China made the same decision, but crypto money is allowed there only for settlements between individuals.
Switzerland has introduced rules for cryptocurrencies similar to foreign currencies. The European Union has joined developing countries and legalized bitcoins, but here they are not considered assets that are taxable.
In Ukraine, military-technical cooperation is not officially prohibited. However, given the logic of current national legislation, cryptocurrency is not money.
Back in 2014, the National Bank of Ukraine declared the impossibility of conducting operations with bitcoins as a means of payment for individuals and legal entities. In practice, this means that payments in digital money are not taxed and are not subject to reporting.
Is Bitcoin used for illegal purposes?
Bitcoin is able to secure your funds. BTC is often used as protection against various forms of crime related to financial flows.
Cryptocurrency cannot be faked. Under the control of the user are all his payment transactions, he will not be able to become a victim of fraud, accepting an unconfirmed account (as in the case of debiting funds from credit cards).
Bitcoin transactions are not exposed to the risk of money back by hackers. Due to the fact that the BTC mechanism keeps a backup copy, encryption and signatures, your money is under reliable protection.
Rumor has it that cryptocurrency can be used by criminal structures for money laundering and illegal transactions, but there is no official data on this.
Is it possible to regulate bitcoin?
The BTC protocol cannot be changed, since the data recorded on the blockchain cannot be changed. From a technical point of view, this eliminates interference in the operation of the Bitcoin network.
The second possible tool of influence is mining. Miners provide ecosystem health. In theory, if 51% of the network’s power is concentrated in one hand, such a miner will be able to influence the transaction fee and the cost of the rate.
In practice, this situation is impossible, since the network capacity is growing exponentially, and the share of network control even by the largest miners is regularly reduced.
The last moment is financial manipulation. As in the previous version, we can assume that someone will concentrate more than half of the BTC on the account. In this case, the investor will be able to independently create dumps and pumps and speculate with crypto money.
But given how the system works, this alignment is fantastic and has nothing to do with real life. Therefore, no one controls bitcoin, the network operates without regulators, which affects the constant growth of the rate and stability of BTC.