Share The peer-to-peer digital currency Bitcoin made its debut in and with it ushered in a new era of cryptocurrency.

Bitcoin Country: Merchants Accepting Bitcoin By Continent

Today, there are more than different cryptocurrencies to choose from, but Bitcoin still enjoys the first mover advantage. While tax authorities, enforcement agencies, and regulators are still exploring the phenomenon, one pertinent question is—is bitcoin legal or illegal?

The answer is, it depends on the location and activity of the user. Bitcoins are not issued, endorsed, or regulated by any central bank. Instead, they are created through a computer-generated process known as mining.

What does it mean to invest in Bitcoin?

In addition to being a cryptocurrency unrelated to any government, Bitcoin is also necessarily a peer-to-peer payment system since it does not exist in any physical form and must be exchanged online.

As such, it offers a convenient way to conduct cross-border transactions with no exchange rate fees. It also allows users to remain anonymous. The currency is being traded on exchanges, and companies have even made investments in virtual currency-related ventures.

These activities portray a technically well-established virtual currency system, but there is still no uniform international legal law covering the use of bitcoin. For more see Stores Where You Can Buy Things With Bitcoins Countries that Say Yes to Bitcoin The fact that bitcoin can be anonymously used to conduct transactions between any account holders, anywhere and anytime across the globe, makes it attractive to criminal elements. They may use bitcoins to buy or sell illegal goods like drugs or weapons.

Most countries have not clearly made determinations on the legality of bitcoin, preferring instead to take a wait-and-see approach. Some countries have indirectly assented to the legal usage of bitcoins by enacting some regulatory oversight.

Top 10 Places Where Bitcoin is Banned

At the same time, it has several government agencies working on preventing or reducing the use of bitcoin for illegal transactions.