Bitcoin is one of the first cryptocurrencies ever established and is the most often discussed worldwide. Bitcoin trading is still outlawed in many nations because of the restrictions enacted, which see its usage as too dangerous and unpredictable.

In response to El Salvador’s declaration that it would incorporate Bitcoin into its conventional financial system, several other governments have begun crafting plans to include Bitcoin in their economic strategies. In this essay, we will examine the governments officially recognizing Bitcoin as a valid form of cryptocurrency.

These five countries all allow legal Bitcoin trading.

North America (United States)

On the other hand, several government agencies are working together to discover methods to prevent criminals from utilizing bitcoin for illegal activities. Since 2013, the Financial Crimes Enforcement Network (FinCEN) of the United States Department of the Treasury has guided bitcoin. In addition, the Internal Revenue Service defines bitcoin as property for taxation purposes.

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Canada

Bitcoin has been viewed favourably throughout Canada’s history, and the country’s tax office, the Canada Revenue Agency, has even recognized it as a commodity. The regulatory authority compares Bitcoin transactions to barter transactions and their revenue to corporate revenues. Moreover, the government of Canada acknowledges bitcoin exchanges as a kind of service. On the other hand, this attracts attention and brings it within the scrutiny of money laundering legislation (AML).

Australia

Following in the footsteps of the United States and Canada, Australia has legalized Bitcoin. However, buyers must comply with the Anti-Money Laundering and Counter-Terrorism Financing Act. In addition, the Capital Gains Tax applies to Bitcoin and other cryptocurrencies.

The Union of European Countries

The European Court of Justice (ECJ) ruled in 2015 that the purchase and selling of digital currencies inside the European Union comes within the supply of services and is thus exempt from value-added tax (VAT). Additionally, other EU states, like Finland, Belgium, the United Kingdom, and Bulgaria, have begun their initiatives to facilitate the trading of bitcoins.

El Salvador

🇸🇻 El Salvador President says “if you invested in Bitcoin your investment is safe and its value will immensely grow after the bear market.”#crypto #cryptonews #easyexchangepro #trading #investing #blockchain #btc #eth #GBR #gabur pic.twitter.com/t2SqjuFgeI

— EasyExchangePro (@EasyExchangePro) June 19, 2022

El Salvador has made history by recognizing bitcoin as a recognized form of money for the first time. In June of 2021, the United States Congress approved a proposal to officially recognize bitcoin as a form of payment, making its usage legal.