Will government ban bitcoin

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Bitcoin has been surging lately, only I'm not just referring to the price. The popularity and media exposure of the cryptocurrency has also been surging, as of late. This attention its received is largely due to the fact Bitcoin, and other cryptocurrencies, are something the world has never seen before.

Feel free to watch the video, or continue reading down below. Regardless of your feelings on cryptocurrencies, the fact remains that they pose an serious threat to the future of will government ban bitcoin world's fiat currencies. Sure, they share some will government ban bitcoin with fiat currencies. The main one that matters to me, as well as fellow silver and gold investors, is that the asset itself has no real, tangible wealth.

Instead, the value of cryptos, such as Bitcoin, are determined by the value people put on them, and the utility they have as a means of exchange. However, don't get me wrong. Cryptocurrencies still have many advantages over fiat currencies. In fact, the threat they pose to the dollar, pound, will government ban bitcoin, yen, etc. Among these advantages, is that because of the blockchain technology they are built upon, there is often higher levels of anonymity.

Paradoxically, this anonymity also goes hand in hand with high levels of transparency. The most important attribute of cryptocurrencies, is that they are generally not centralized, but rather, they are decentralized. Sure, they may have creators or developers, but they are not issued by a central government or central bank. Furthermore, most of these cryptos have limits on how much currency can be created at once. Some, such as Bitcoin, put a limit on the total amount that can ever be created.

This is the opposite of the fiat currencies of the world, will government ban bitcoin are issued by a central government entity. Furthermore, there is no limit on how much currency can be created. The Federal Reserve can create trillions of dollars out of thin air they have. In fact, in theory, they could even create money without necessarily making it public. They can will government ban bitcoin the purchasing power of their citizens, without them even knowing.

Getting to the main question, will governments make cryptocurrencies illegal? Yes, without a doubt, I think some governments around the world will restrict these currencies. However, it may not occur in every jurisdiction, and the level of regulation will will government ban bitcoin. The first two reasons are most likely, because they tug on the heart strings of Americans. It's very unlikely that they publicly say that it is about protecting their Monopoly money monopoly think about it.

There are a variety of different regulations that could put on cryptos, without outright banning them. However, make no mistake, any significant regulation will undermine the currency as a whole. The first regulation, that I believe will happen quite soon in the United States and Western Europe, will be will government ban bitcoin requirement to register your wallet.

For most owners, this is easily accomplished by their hosting will government ban bitcoin, such as Coinbase. By doing so, some level of anonymity no longer exists. Yes, individuals could disobey this order.

However, unfortunately, most would obey the law. This would make transfers between registered and unregistered wallets, quite risky for the "legal" individual. The next level of regulation, which is largely impossible without anonymity removed, is taxation.

As far as I know, profits on cryptos are only taxable if the individual takes them out of cryptos altogether. I suspect that this will change. If you profited in a new altcoin, and you want to park your profits in Bitcoin, I believe the government will begin will government ban bitcoin that as a taxable investment profit. I'm not convinced the government is all that interested in this small chunk of revenue; I think they would institute such regulations in an attempt to squash high amounts of fiat being traded in for cryptocurrencies.

To that end, I think it is possible that countries such as China, would limit the amount an individual could transfer into cryptocurrencies, in a certain time frame. The final step is to ban cryptocurrencies altogether. I believe that this likely will not begin in the United States.

Instead, more authoriarian countries, will government ban bitcoin as China, India, Russia, and some Middle Eastern countries will be first. A few smaller countries have already made Bitcoin illegal. My money is on China being the first. However, I think some European countries will soon follow suit.

Eventually, I would not at all be surprised to see the United States ban these currencies. Of course, we can hope that, if this happens, it is only proof that fiat currencies are on the verge of total collapse.

A ban would have serious consequences on the market. Use would drop significantly, since becoming a felon in order to buy Bitcoin, would will government ban bitcoin not be a mainstream idea yet. Cryptocurrencies are at a strange juncture.

With the more popularity they gain, the more likely it is they will be regulated. However, as they grow, it becomes more likely a ban would be ineffective or widely unpopular.

As much as proponents of cryptos try to grow the market, I believe most growth, going forward, will be organic. There are billions of people looking to flee fiat currencies, they just don't all know it yet. Some will go to cryptos, some will go to precious metals. Some will go to both.

But make no mistake, the days of fiat currency are numbered. Thanks for your post, very informative and detailed! Personally, I don't think controlling crytocurrency is that easy as it is very much an internet thing and monitoring the internet has not been an easy thing. Even the government can monitor the internet like the US and China did, it does not mean they can regulate them. I can't wait until they recognize bitcoin in my country As far as Will government ban bitcoin know, anyone can write a wallet.

All a wallet is is an interface to the blockchain ledger. IMO, registering wallets won't work for them. People would write their own. Wallets on exchanges and coinbase, will government ban bitcoin, they could register will government ban bitcoin, but people who didn't want to be registered would simply stop using those services.

Decentralized exchanges are being created as we speak. We could use those. Not to mention people who get their coins from mining. No way to register the transfer from the network to your account. They also poker would be banned in other countries before the united states.

I believe it will be banned in the USA first. Its not just the problem with fiat currencies but also people trying to get in money they made illegally selling drugs into banks. They already are doing a crack down on exchanges. Bitcoin is no longer will government ban bitcoin.

If you think it is your delusional. I sold all of mine already. Its not what it was a few years ago. To much regulation not on the coin itself but the exchanges that sell them. Most are novice investors with no clue about investing. It was a great investment a few years ago.

I love the technology but believing any of it is decentralized is just what government wants you to think. They already took will government ban bitcoin silk roads and alphabay 2 decentralized exchanges. If they can take them down they are not decentralized anymore. They know to make it centralized.

Governments will make bitcoin, gold and silver illegal again and take it away from society just like they done before. Your can't will government ban bitcoin against the government and think your going to out due them and get rich living in their country.

May for awhile but sooner or later they will throw down regulation and start confiscating as they always do. The best way to make money is to invest in businesses built around helping the economy and government. Not things trying to hurt. Nevada in the U. I could see a world where bitcoin is kind of like "cash" back in the day where people used it for many small purchases and it was widely accepted but major financial institutions will lean on blockchain technology like ethereum as humanity eventually transitions to complete decentralization of currency.

Like all good things it will take time. So for me government issues are only likely if the other two fail to cause significant limitations to crypto-currency growth. Also for governments there is the major possibility of offloading a lot of burden onto cryptocurrencies, a lot of admin and beurocracy can go away, and many governments want less friction on trade, so non-national currencies may have a place.

So if crypto doesnt commit suicide, and isnt sidelined by big business, and if it aproaches government with ready made methods to improve their operations in socially responsible ways, then there might be a bright future. Government can do whatever it wants, drugs are illegal too and we're in the middle of a sharp increase in overdose deaths.

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Bitcoin acceptance and adoption growing

The legal status of bitcoin varies substantially from country to country and is still undefined or changing in many of them. While some countries have explicitly allowed its use and trade, others have banned or restricted it.

Likewise, various government agencies, departments, and courts have classified bitcoins differently. While this article provides the legal status of bitcoin, regulations and bans that apply to this cryptocurrency likely extend to similar systems as well.

According to the European Central Bank , traditional financial sector regulation is not applicable to bitcoin because it does not involve traditional financial actors. The European Central Bank classifies bitcoin as a convertible decentralized virtual currency. In the European Parliament's proposal to set up a taskforce to monitor virtual currencies to combat money laundering and terrorism, passed by votes to 51, with 11 abstentions, has been sent to the European Commission for consideration.

As of [update] bitcoin was legal in Algeria, but per the Huffington Post , "Algeria is going to ban bitcoin in the new Finance law of article of the law " [13]. Virtual currency is that used by internet users via the web. It is characterized by the absence of physical support such as coins, notes, payments by cheque or credit card.

Any breach of this provision is punishable in accordance with the laws and regulations in force. The following day, the monetary authorities also reacted in a statement issued jointly by the Ministry of Economy and Finance, Bank Al-Maghrib and the Moroccan Capital Market Authority AMMC , warning against risks associated with bitcoin, which may be used "for illicit or criminal purposes, including money laundering and terrorist financing".

On 19 December , Abdellatif Jouahri, governor of Bank Al-Maghrib, said at a press conference held in Rabat during the last quarterly meeting of the Bank Al-Maghrib's Board of that bitcoin is not a currency but a "financial asset", He also warned of its dangers and called for a framework to be put in place for consumer protection.

As of 17 January , The Central Bank of Nigeria CBN has passed a circular to inform all Nigerian banks that bank transactions in bitcoin and other virtual currencies have been banned in Nigeria. It noted that "Central bank cannot control or regulate bitcoin. Central bank cannot control or regulate blockchain. Just the same way no one is going to control or regulate the Internet.

In September the Bank of Namibia issued a position paper on Virtual Currencies entitled [23] wherein it declared cryptocurrency exchanges are not allowed and cryptocurrency cannot be accepted as payment for goods and services.

The Reserve Bank Of Zimbabwe is sceptical about bitcoin and has not officially permitted its use. Bitcoin would seem to be classified pursuant to the current provisions of the PPSA simply as an " intangible ".

As of April the Bank of Montreal BMO announced that it would ban its credit and debit card customers from participating in cryptocurrency purchases with their cards [31]. Treasury classified bitcoin as a convertible decentralized virtual currency in Per IRS, bitcoin is taxed as a property.

In September , a federal judge ruled that "Bitcoins are funds within the plain meaning of that term". Bitcoin is legal in Mexico as of It is to be regulated as a virtual asset by the FinTech Law. News reports indicate that bitcoins are being used in the country. The Costa Rican Central Bank announced that bitcoin and cryptocurrencies are not consider currencies, and are not backed by the government nor laws.

However, they are not illegal. There are a few merchants who do accept bitcoins in the country. The Bank of Jamaica BoJ , the national Central Bank, has publicly declared that it must create opportunities for the exploitation of technologies including cryptocurrencies.

Accordingly, in the BoJ will be embarking on a campaign to build awareness of cryptocurrencies as part of increasing general financial literacy and understanding of cryptocurrencies. Indications are that early BoJ signals point to their general framework on "electronic retail payment service systems" possibly being brought to bear on initial cryptocurrencies considerations.

Bitcoins may be considered money, but not legal currency. A bitcoin may be considered either a good or a thing under the Argentina's Civil Code, and transactions with bitcoins may be governed by the rules for the sale of goods under the Civil Code. The Central Bank of Bolivia issued a resolution banning bitcoin and any other currency not regulated by a country or economic zone in Not regulated, according to a statement by the Central Bank of Brazil concerning cryptocurrencies, but is discouraged because of operational risks.

There is no regulation on the use of bitcoins. A 26 March by Superintendencia Financiera de Colombia states that the use of bitcoin is not regulated. The Ecuadorian government has issued a ban on bitcoin and other digital currencies. Ecuador's new project would be controlled by the government and tied directly to the local currency—the dollar. Users will be able to pay for select services and send money between individuals. This was slated to begin in mid-February Bitcoin is considered a commodity, [47] not a security or currency under the laws of the Kyrgyz Republic and may be legally mined, bought, sold and traded on a local commodity exchange.

The use of bitcoins is not regulated in Cyprus. As a DMCC licensed company, Regal Assets DMCC operates in a secure regulated trading environment and offers a service to global investors to the highest standards of international compliance.

As of , the Israel Tax Authorities issued a statement saying that bitcoin and other cryptocurrencies would not fall under the legal definition of currency, and neither of that of a financial security, but of a taxable asset. Bitcoin is not banned by any governmental party in Saudi Arabia. The government of Jordan has issued a warning discouraging the use of bitcoin and other similar systems. The Central Bank of Jordan prohibits banks, currency exchanges, financial companies, and payment service companies from dealing in bitcoins or other digital currencies.

The government of Lebanon has issued a warning discouraging the use of bitcoin and other similar systems. Bitcoin is not regulated as it is not considered to be electronic money according to the law. Bitcoin is neither recognized nor regulated in Iran. Government officials, however, discourage investing in cryptocurrencies until after the regulations are made. In September , Bangladesh Bank said that "anybody caught using the virtual currency could be jailed under the country's strict anti-money laundering laws".

Finance minister Arun Jaitley, in his budget speech on 1 February , stated that the government will do everything to discontinue the use of bitcoin and other virtual currencies in India for criminal uses. He reiterated that India does not recognise them as legal tender and will instead encourage blockchain technology in payment systems. On 13 August Nepal Rastra Bank declared bitcoin as illegal.

This news was followed right after India's restriction of converting bitcoin and cryptocurrencies into fiat currency. For organizations and institutions it is banned by State Bank of Pakistan. Bank will not get involved if there is any dispute. They will not facilitate any transaction for it. For individuals, it is neither legal nor illegal and they can hold cryptocurrencies at their own risk. National Assembly of Pakistan can pass law to declare bitcoin legal or illegal in Pakistan, but there is no such news from National Assembly yet.

The bank has issued an official notice on its website and has also posted the news on its official Twitter account. While private parties can hold and trade bitcoins in China, regulation prohibits financial firms like banks from doing the same. On 5 December , People's Bank of China PBOC made its first step in regulating bitcoin by prohibiting financial institutions from handling bitcoin transactions. On 16 December it was speculated that the PBOC had issued a new ban on third-party payment processors from doing business with bitcoin exchanges, [67] however a statement from BTC China suggests this isn't accurate, and rather payment processors had voluntarily withdrawn their services.

On 1 April PBOC ordered commercial banks and payment companies to close bitcoin trading accounts in two weeks. On 9 February , multiple bitcoin exchanges in China delayed or paused bitcoin withdraw service, with or without announcement. Some of the announcements, [71] [72] [73] [74] if not all, claim that regulation activities have been or are to be taken. News resources [75] also show that, although such activities were carried out by PBOC, they were not done via legal approaches, but by "appointment" instead.

None of the exchanges presented or have claimed to receive any lawful paperwork. The crackdown on bitcoin and other virtual currency traders was accompanied by Chinese media touting the dangers of virtual currency as a tool for criminal activities. On 8 January , the Secretary for Financial Services and the Treasury addressed bitcoin in the Legislative Council stating that "Hong Kong at present has no legislation directly regulating bitcoins and other virtual currencies of [a] similar kind.

However, our existing laws such as the Organised and Serious Crimes Ordinance provide sanctions against unlawful acts involving bitcoins, such as fraud or money laundering. He also decided that bitcoins will not be regulated by HKMA. However, the authority will be closely watching the usage of bitcoins locally and its development overseas. Japan officially recognizes bitcoin and digital currencies as a "means of payment that is not a legal currency" see Article of Japans's Payment Services Act PSA 25 May On 7 March , the Japanese government, in response to a series of questions asked in the National Diet, made a cabinet decision on the legal treatment of bitcoins in the form of answers to the questions.

The decision also acknowledges that there are no laws to unconditionally prohibit individuals or legal entities from receiving bitcoins in exchange for goods or services. Taxes may be applicable to bitcoins. According to Nikkei Asian Review , in February , "Japanese financial regulators have proposed handling virtual currencies as methods of payment equivalent to conventional currencies".

The city of Hirosaki is officially accepting bitcoin donations with the goal of attracting international tourists and financing local projects.

While not illegal in the country, Korean authorities will prosecute illegal activity involving bitcoin [88] and have indicted at least one individual for purchasing drugs with bitcoin. There are no laws in South Korea regulating the use of bitcoin at present. South Korea On 12 December , the president of the Bank of Korea recommended at a press conference that bitcoin be regulated in the future.

Bitcoin ATMs are banned here [7]: Taiwan but bitcoins can be purchased at over convenience store kiosks. Regulators have warned the public that bitcoin does not have legal protection, "as the currency is not issued by any monetary authority and is therefore not entitled to legal claims or guarantee of conversion".

While bitcoin is not illegal in Taiwan, financial institutions have been warned by regulators that necessary regulatory actions may be taken if they use it. On 6 December , Perng Fai-nan said that bitcoin is only used in certain communities. Besides, he also opined that the value of bitcoin is a bubble and is highly volatile.

Therefore, he advised the public against the speculation of bitcoins to prevent making a loss during the process. The central bank is closely watching the development of bitcoin and plan to impose regulations in the future. It is stated that bitcoins remains highly volatile, highly speculative, and is not entitled to legal claims or guarantee of conversion. However, despite this, three of the four major convenience store chains in Taiwan make available purchases of bitcoin through their kiosk systems, [97] and the largest chain now allows bitcoin to be used for purchases of goods.

There are no regulations related to the use of bitcoin and other cryptocurrencies in Cambodia. The National Bank has stated that cryptocurrencies are illegal in Cambodia and has instructed commercial banks in the country not to accept bitcoin and other cryptocurrencies in financial transactions.