The legalization of bitcoin has been an issue since it became successful and altcoins came into existence. Many governments have banned it entirely while others have banned it partially. And some countries have declared it illegal. The main reason for so much chaos regarding bitcoin’s legalization is that of no central control, anonymous users, and users connected with the black market. Bitcoin, which was made for making things right, with an idea of international currency, was used by people with wrong intentions too because of its features. And that’s the reason its legalization and the extent of legalization varies from country to country.
Ownership of Bitcoin
Bitcoins are recorded to a bitcoin address. For spending bitcoin what you need is the private key and signing the transfer digitally. The private key is never revealed and cannot be accessed back. Of course, this feature is provided concerning security. So, no other person can access someone else’s bitcoin. But this can be caused an overall loss of approximately 20% of all bitcoin causing a net loss of $ 140 billion in present time. Of course, many genuine users have lost their private key because of their poor management. In this bitcoin system, what lost can’t come back. Around 2013, a man claimed to loose 7,500 bitcoin, whose current value is $275 million.
And this is important for ensuring security. If they started revealing private key, stealing bitcoin asset will become easier. From exchanges around 980,000 bitcoins were stolen around December 2017.
Privacy in the Bitcoin system
In this, the currency is not bound to the real world, they are bound to bitcoin addresses, and these bitcoin addresses have no relations with the real world. Simply it exists only digitally. It can be sent and received. Its value in the currency of different countries is fixed. The identification person behind a particular bitcoin address is never revealed. But the transactions made by anyone is visible on the blockchain. The exchange of bitcoin in real-world currency requires some information according to law. You can logon to official website to know more about the bitcoin system and its privacy details. There are so many such websites which give complete details of this new digital currency.
Use in illegal transactions of money
As it is not under any organization or government of any country and the user’s identity is not revealed. And because of too many favorable conditions, many illegal transactions started to be made through bitcoin. Hence, this all attracted the attention of national and international law institutions, financial regulators, and media. Many times, many countries have tried to put limitations to bitcoin, and many have tried to ban it but never became that successful. According to Joseph Stiglitz, the anonymity of bitcoin encourages money laundering and other crimes. This means that no one can know who is behind the address and this not knowing who is there, helps criminals and illegal workers.
Countries and legalization of bitcoin
Japan, Russia, Holland, Vietnam, France, United States, Thailand, Malta, Germany, Singapore, India Canada, and Belarus are some of the countries which have legalized cryptocurrency.
Algeria, Bolivia, Egypt, Morocco, Ecuador, Bangladesh, Nepal, and Macedonia are some countries in which cryptocurrency is declared illegal, i.e. Absolute Ban. Some of the countries which have legalized bitcoin are also thinking about banning it.
Some countries have legalized bitcoin, but banking in bitcoin is banned, which is an implicit ban. For example, Colombia, Cambodia, Iran, Taiwan, Jordan, Bangladesh, China, Saudi Arabia, Russia, Canada. Some countries have legalized bitcoin but are declared illegal as a payment tool, such as Indonesia and Vietnam.
Some economists describe Bitcoin as an economic bubble and mirage. It has been criticized for a high amount of electricity consumption in mining. Some believe that Bitcoin is a Ponzi Scheme or pyramid scheme. Some others believe that Bitcoin is a great place to put assets, a good solution to creating a digital currency. From always, there is a confusing war on is bitcoin good or bad. The war of legalization of cryptocurrency is going on since bitcoin has become successful. As soon as bitcoin became successful, many more cryptocurrencies came into existence.