It is without a doubt that crypto-currency is the future. Regardless if it will be years, decades, or centuries, crypto is a much better way to establish value. While asking yourself is BitCoin illegal might be a prime concern for miners and traders today, this will become a regular currency at some point.
Crypto, including Bitcoin (BTC), has a lot of properties money should have intrinsic to its system. It represents the energy used to create a mathematical process. The increase in processor speed and efficiency will account for inflation, and the rise in demand for energy will counter this balance.
But, a decentralized and unsupervised trade on a global scale will indeed upset a lot of very powerful and very well-armed people. So far, the fact the government has a lot (and I mean a lot) of guns did establish its supremacy. This is why we should expect some governments to try and ban or otherwise discourage this sort of currency.
Thankfully, the same global network that made crypto a reality can also make trading it safe and anonymous. Using a trustworthy and professional VPN can let you do all of your transactions quickly and easily. Premium VPN providers like Le VPN have servers in over 120 countries and will mask your IP address from any busybodies in the government.
Advantages of a Cryptocurrency
Most futurists agree that the true advantages of crypto-currencies like Bitcoin are yet to emerge. But, in the meantime, there are several real-world benefits for using digital currency.
First of all, the way the currency is produced and spread is decentralized and not regulated by any government. No authority can revoke or freeze your funds, especially if they don’t even know they belong to you.
The second benefit is the constant balance between the producers of the currency, the so-called miners, and the market in general. There is no possibility for some authority to just imagine bills into existence, as they often do with fiat currency.
Finally, the transactions are completely secure. Unlike paper money that can be counterfeited, fake crypto would become useless the moment it connects to the network as the hashes wouldn’t fit. This makes it impossible for someone to sell or buy with fake cryptocurrency.
Risks of Using Crypto
Out of the two main risks of using crypto, one is personal, and the other is broadly economic.
The personal risk stems from the anonymity and lack of authority. If your private wallet key is stolen, all of your funds may be misused and sent wherever. This would be akin to cash being stolen as if you can’t point to the direct person that has just stolen your cash, all trace will be lost afterward.
The economic risk is the impracticality of using current crypto as financial derivatives. This means that no bank or sane person will ever give you a loan using Bitcoin. While the contract itself is possible, the market is still too young and too volatile for anyone to use this type of exchange for their day to day business.
Why are Some Governments against Crypto?
Depending on the government and culture in question, the guys and girls in charge might have additional problems with regular people using crypto such as Bitcoin. But, in general, the arguments usually focus on economic, security, and authority issues.
Before the internet, the guys with guns that we usually call the military were quite effective in making the people do what they are told. But, it would be really hard for the IRS to force you to pay something when you are living in the town of Mezhdurechensk, Kemerovo Oblast, Russia.
The fact that you can pay for goods and services across the world, from an anonymous account, without leaving a lot of tracks means that the government is unable to track your purchases.
Where to Trade Bitcoin?
If you want to know is Bitcoin illegal in your case, you will need to know the laws of the country you are residing in. Having Bitcoin is perfectly legal in most countries, but this doesn’t mean that you can relax just yet.
Some countries have bans on trading any cryptocurrency or using it as legal tender. Others might accept this form of payment entirely, but force high taxes on all transactions that use crypto.
How you will be using crypto depends heavily on your end goal. If you only want to try your hand in some simple transactions or to try mining for crypto on your rigs, this may be done from virtually any country. But, if you want to trade and exchange between Bitcoin and other crypto and national fiat currencies, you will bump into some issues.
Thankfully, by using an online VPN, you can switch between multiple countries and multiple servers. This way you can create your own personal Dutch Sandwich with crypto finances and leave very little for any government to track you.
It might seem that the best way to trade and produce Bitcoin would be in countries where this type of digital currency is regulated by law. But this is not always the case. For many, Bitcoin trading, or with any other crypto, is meant to be anonymous.
In these countries, most advantages of cryptocurrencies are lost because you need to disclose your dealings to the government.
There are only a few countries where Bitcoin, and other cryptocurrencies, are recognized as financial methods of payment. The biggest one of these countries is the USA, where the US Treasury Department recognizes Bitcoin as a convertible virtual currency.
Anyone who wishes to use Bitcoin in the US needs to register with the FinCEN and keep records as they would for using US dollars.
The German Federation is one of only a few countries inside the EU that legalizes and regulates the use of Bitcoin and other cryptocurrencies. The state recognizes them as virtual, or digital currency that can be used as a ‘’unit of account” or for personal or tax purposes.
From the German perspective, there is no difference between Bitcoin and any other foreign currency as far as the banking system.
The Republic of Belarus is not exactly known for its liberal stance on most issues. So, it is a rarity that this is the most advanced nation when it comes to Bitcoin and cryptocurrency legislation.
By presidential decree, all business entities, including banks and companies, are capable of issuing their own ‘’cryptocurrency tokens”. These may be used in trade, as well as financial derivatives.
It is completely legal to trade and use Bitcoin in Mexico under FinTech law. While the government relates to the cryptocurrency as if it is a trade of commodity, there are still taxes and regulation.
Additionally, if you are mining for Bitcoin, you would be subjugated to the same laws that apply to companies producing any other tradable commodity.
Trade and production of cryptocurrencies have been regulated in France since 2014. As far as the French Republic is concerned, it is completely legal to use the crypto as a commodity and falls under the same laws as any other good or service.
But, it is illegal and impossible to use Bitcoin as a legal tender, and all payments, taxation, and in-country expenses need to be paid in Euros.
Finally, if you are dealing with crypto-to-fiat exchanges, you will need to submit paperwork that will show how you are not engaging in money laundering or any other illegal activities.
The United Kingdom has an extensive set of regulation for crypto that relies heavily on seeing it as a foreign currency. Any person trading in Bitcoin or another crypto would pay the same taxes as they would when trading or holding Euros or US dollars.
Profits and losses when trading Bitcoin are subject to the capital gains tax. Additionally, any purchase of goods and services with cryptocurrencies will hold the same tax as if it was paid with sterling.
Gray Area Countries
If you are producing, trading, or holding Bitcoin, these are the countries you want to be in. Most countries have a neutral stance towards crypto. Is Bitcoin illegal is not questioned, but neither is something done to prevent any type of trade.
In such countries, most governments see cryptocurrencies as a commodity market and let their citizens behave as they wish with their own digital property.
Some of the countries that fall under this rule are:
- South Africa
- Bosnia & Herzegovina
- The Netherlands
Trading in Spain
As far as legality goes, there are no laws concerning Bitcoin in the Kingdom of Spain. You may buy or trade any crypto without either regulations or taxes.
In the case that you make a business from trading cryptocurrencies, you would be only taxed once you liquidate the crypto into Euros or other national fiat currencies.
Spain is a very attractive country for miners, as it gets almost 350 sunny days a year. With this fact, most miners use solar power to supplement their expenses and lower their final costs. If you are able to manage the temperature and establish a renewable energy source, producing crypto can become very lucrative in Spain.
Trading in Russia
Theoretically, Russia would be the perfect place to mine for crypto as far as the weather goes. Cold, dry, and generally sunny is ideal. Additionally, there are no laws regulating any cryptocurrency directly.
It is impossible to accept crypto as legal tender, and no business can accept it as payment. Also, there is a court decision that sees Bitcoin as a currency surrogate and thus outlawed. But, as Russia uses the Continental Jurisprudence, th
is verdict doesn’t influence any law or future proceeding.
Finally, most of the trading platforms that deal with cryptocurrencies in Russia are blocked online and impossible to reach with a Russian IP address. Thankfully, this issue can be quickly resolved by using a VPN and connecting over a foreign server.
Places where Cryptocurrencies are Illegal
Finally, some places really don’t like their citizens and residents enjoying cryptocurrencies such as Bitcoin. For some of these regions, only financial Bitcoin transactions are forbidden, meaning that you can still legally invest in Bitcoin. Others have all types of crypto transactions banned, regardless if you are investing in Bitcoin as a business, or simply want to buy Bitcoin to test how the system works.
In 2018, Pakistan issued a notice to all banks that the Bitcoin, and all other digital and virtual currencies, are banned in the country. No exchange can be made from crypto to fiat and vice versa.
The law is unclear about the production and holding of crypto by Pakistani citizens. Regardless, it is not advisable to trade in this country or disclose your possession of a Bitcoin wallet.
2.United Arab Emirates
If you are one of the few people in the UAE who are allowed to own and trade crypto, then you are very well aware of that fact. It was told to you by your fellow royal family members.
For everyone else, including visitors and residents, trading and even owning Bitcoin is strictly forbidden. All transactions in all virtual currencies are prohibited.
Ecuador banning crypto is a very strange move, as the country has no domestic currency and relies on the US dollar for all internal and external transactions.
In 2014, the country’s parliament issued a complete ban on all types of digital currency, except electronic forms of payment for the US dollar.
Even though careful examination of the Qur’an would imply that using cryptocurrency is not only allowed but preferable to fiat currency (Al-Baqarah, 2:188), the Egyptian Dar al-Ifta doesn’t agree.
As far as the highest Islamic legal body in the nation is concerned, Bitcoin is haram and completely forbidden.
Thankfully, for those using VPN connections, is Bitcoin illegal in their country is not a concern. There are few things simpler than engaging the app and moving your IP address to a country where trading crypto is not regulated.
With premium providers such as Le VPN, you can even use a VPN for Android or iOS devices and make all of your transactions using your smartphone.
The only thing you need to know two things. First, where it is okay to trade and easy to access the market? Second, how would you access and use your funds? Thankfully, you can use PayPal for most if not all transactions between crypto and fiat currencies.
Should You Trade Bitcoin?
Trading regular currency is one of the most volatile and complex forms of trading. This is regardless if you are observing unleveraged changes long-term, or using large leverages to day-trade.
But, crypto doesn’t behave as fiat currency as far as the market goes, making it slightly more approachable for trading. As there are no backhand deals and political shenanigans when it comes to cryptocurrencies, the market behaves more as a commodity than a currency.
While nowhere near a gamble, trading Bitcoin is not a certain profit and most people don’t come out on top. It is advised to use funds for speculative investments when trading and to be patient when the supply and demand are in flux.
Don’t use your savings or primary investment funds to buy crypto, or to mine crypto. Similar to trading any other foreign currency, this may be a very easy way to lose your money.
Should You Buy Bitcoin?
Unlike trading, you don’t need a lot of prior information and knowhow to buy Bitcoin and other cryptocurrencies. Everyone should buy if only a little amount.
There are multiple advantages in using Bitcoin for payments, and keeping a bit in your hot wallet may end up very useful in some situations. If nothing, you might want to have some untraceable digital currency.
Regardless if some new financial laws are enacted, or you simply want to buy something you are not really proud of, using crypto is a perfect option.
Very Hard to Trace
Impossible is a very strong word, and only a few things in this Universe are truly impossible. If the CIA, NSA, FSS, or Mossad really want to find your funds, they will find them eventually. But that doesn’t mean that it is easy.
Using Bitcoin, or any other cryptocurrency, to buy and sell goods and services is very hard to trace. As the transactions can be anonymous, any entity trying to trace the money will need to know your public key number, as well as to have transactions with you. Then they can comb the internet for any data of your transactions.
This action is theoretically plausible but very unlikely.
Investing in the Future
Buying Bitcoin may not be as lucrative as some other financial options at the moment. But, it is investing in the future where all transactions will be with digital currency. Either as legal tender or as a de facto model of trade, this is the future of business.
Is Bitcoin illegal is a huge question now, but even for the next generation, this form of payment will become commonplace.
How to Trade Bitcoin?
Trading Bitcoin, or any other crypto, is very easy. Regardless of the legality of Bitcoin, there are trading platforms on the web that are accessible non-stop. Here you can buy and sell Bitcoin in relations to any other national fiat currency, or other digital currency.
Before you enter the platform, make sure that you are connected to your VPN and routed through a country where such activity is completely legal. Then you can access the platform that trades in crypto, including Bitcoin.
Finally, you will use your fiat currency to purchase your first amount of cryptocurrency. Your transaction will be recorded in the blockchain, and the digital money will move in your hot wallet.
Before You Buy Crypto
Before you purchase your first crypto, regardless if it is Bitcoin, Litecoin, Monero, or some other type, make sure you know the terms and conditions of your transaction.
You should always check the reputation of the platform you are using beforehand. There must be other Bitcoin users that use the same web platform for their dealings and can testify that it is honest and trustworthy.
Second, you should be aware of any fees leveraged by the trading platform. This can range from fractions of a percent to quite a lot. You need to input that into your math.
Finally, you should stay anonymous towards your platform. Always use a premium VPN provider that will safeguard your data. The same way you would send an anonymous email inquiry when looking for a good live stream, you should do that now.
Should I Start Mining?
While Bitcoin mining presents itself as something that everyone could do from home, those people wouldn’t get their money back.
In this calculation, you will need to compare the hash rate of your rig to the energy consumed, to the current BTC price on the global market. The energy consumption there being the biggest issue when it comes to the final price of doing business.
There is a possibility to make Bitcoin without losing any money, but you will need to be really smart and innovative.
Take time to learn about rig architecture, thermal budgets, energy cycling, cooling systems, and similar terms. Once you have done your homework, maybe there is a way to cut your costs and increase your output.
Protecting Your Wallet
Is Bitcoin illegal in your country will become irrelevant if someone steals your data and your money. Whatever you do, always stay protected with a firewall and a VPN connection.
With providers like Le VPN, you can connect to any of the secure servers around the world and conduct your trading in peace. Additionally, you should never, under any means, disclose your private key to someone else.
If you can’t remember your key, write it down. Don’t keep it in some online storage that is not secure.
Regardless if you are an experienced crypto trader or someone who just now joins the community, you need to know is Bitcoin illegal in your country. And, if the answer is ‘’yes”, you need to use a VPN to trade from another more open country.
You shouldn’t be afraid to use Bitcoin, and you should definitely learn how it works. But you should also stay safe while doing it. Connecting through a reputable VPN like Le VPN is prudent. And, staying alert to all risks will give you some peace of mind while you are trading and using your Bitcoin.
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