To start with, why is it that most beginners in crypto-trading doubt whether exchanging digital currency would be a lawful practice or not? It is a misconception arising from the rumor that crypto-currencies are used for “money laundering” and frauds. Crypto-currencies like bitcoins were ‘invented’, first, to provide a safe and synchronized measure of storing assets digitally and secondly, to provide as a cheap method of transferring huge transactions internationally. Therefore, answering the question becomes easier: yes, trading in bitcoins or any other crypto-currency is perfectly ethical. However, by definition of law, it depends on what region of the world a trader wants to trigger a signal from because several governments set strict regulations on the types of trades, currencies, and platforms to protect citizen’s data as a measure of state defense. Whereas some governments just do not consider cryptocurrencies as legal tender money or simply a valid currency to purchase commodities inside the country. Neither of the cases makes it unlawful to trade. However, it would be considered illegal if crypto-trading was considered a punishable offense.
Is bitcoin trading legal?
There are several countries where the governments have made strict financial structures to balance the gross credit and debit in the economy and international hot-line trading works in a closed ‘block-chain’. Some of the examples are below:
The country’s government is extremely serious when it comes to the confidentiality of all personal and market data and keeps a strict check over what information is passed in or out of the national networks. This policy is applied on almost every state aspect from media to finance, therefore bringing the question upon crypto-trade whether it should be made free for all over the world or heavily taxed. Currently, the government has issued an exclusive permit of trading only in the national digital currency –Bit Bolt. Every other form of currency is considered illegal. These trades follow default signal criteria bound within the borders of China. International crypto-trading is in fact disbanded in the country and there is currently one licensed platform available there, operating long-term to bring a convenient experience of Bit Bolt to the citizen – the BitBolt
The government of Singapore does not consider any crypto-currency as a national currency or legal tender money which may allow asset holders to make commodity purchases and transactions within the country. Besides this, there are strict regulatory checks kept to test the legitimacy of a crypto-currency starting with the process of legally registering each digital currency type with the Monetary Authority of Singapore.
The South Korean government does not consider cryptocurrencies as legal tender or a valid form of citizen’s property due to the trading being a ‘grey zone’ where tax is not imposed. To protect citizens from any form of the fraudulent scheme every type of currency needs to pass the test under regulations of the FSS to be registered as operating yet not being treated as any legally binding transaction method.
Popular worldwide for its lenience and friendly approach towards almost all the modern-day systems including health-care, education, and finance, it is in fact considered one of the smoothest running economies in the world. However to ensure the data and financial security of its citizens Canada has also issued some regulatory guidelines to determine the legal status of crypto-trading in the country. Crypto-currencies are not considered to be legal tender money and not many of the existing variety of currencies operate in the hot-line chains of the country, either. Only the majorly valued and legitimate currencies like BTC, Ether, and their proto-types are allowed free trade while it is mandatory that every digital currency needed to be registered with FinTRAC by 1st of June, 2020 to keep prevailing in the country lawfully.
Apart from these few countries there are several others like India and the UK who have taken up hybrid regulatory programs to check the legitimacy of a crypto-currency before entering their national market and test their efficiency in asset storage and volatility in terms of the country’s paper currency or legal tender money. These regulations are kept up-to-date according to international standards of asset digitization and actually promote a healthy financial practice among traders, both beginners and experienced which benefits them in being doubly sure of security against laundering and encryption of their personal information.