Map Options
Absolute ban
Implicit ban
Legal to use/Undefined
Official legal tender (Bitcoin)
Unclear
Cryptocurrencies are currencies, but which are very different from dollars, euros, pounds, or rupees. Cryptocurrencies are usually not issued by any particular country or authority. Instead, cryptocurrencies are decentralized and global. Cryptocurrency is also digital, with no physical coinage or bills, and new units (generally referred to as coins) are generated—in a process known as mining—through the performance of complex computer calculations. In the early days of crypto, this open system meant that anyone with a home computer could mine cryptocurrencies such as Bitcoin (the first and most widely accepted major cryptocurrency), Etherium, or Dogecoin. However, both competition and complexity increased as the industry matured, and by late 2022, few cryptocurrencies were worth the equipment and energy costs for most miners to pursue.
The vast majority of the world's countries use cryptocurrency. Although proof would be difficult to obtain, the possibility exists that cryptocurrency is used in every country in the world. However, the fact that cryptocurrency is in use in a given country does not necessarily indicate that cryptocurrency is legal for use in that country. Due to its inherently private and anonymous nature, crypto is quite easy to obtain, possess, and use discreetly. As long as an individual has internet access, they can buy and sell different types of cryptocurrency, including Bitcoin, typically without detection.
Although many international laws exist to regulate different types of fiat currency, including the dollar, there are (thus far) few laws related to Bitcoin and other cryptocurrencies. Crypto is a fairly new and evolving technology, and many countries are still in the process of determining their legal approach to Bitcoin and other cryptocurrencies.
Thus far, a few countries have explicitly declared Bitcoin and other cryptocurrencies to be legal, a few have declared them illegal, and several more have declared them legal to own but forbidden banks (and sometimes businesses) from processing crypto-related transactions. The largest group, however, is countries that have yet to incorporate crypto into their financial systems or laws. Instead, these countries often simply issue a statement that reminds consumers that crypto is a risky, volatile, and unprotected investment and mentions any existing laws (such as tax codes or anti-money laundering regulations) that apply to crypto transactions. As countries settle upon their official stances on crypto, the laws regulating it are expected to become more detailed and refined.
While most countries are eager to incorporate the extra revenue that taxes on cryptocurrency-related transactions would introduce, many also have significant concerns about both the security of cryptocurrency and its potential for enabling unlawful activities.
Because cryptocurrency is secure, decentralized, and quite private, governments often have concerns about crypto's ability to enable illegal transactions. These can range from the purchase of illegal goods or services by individuals to larger-scale offenses such as money laundering or the funding of terrorist groups. As such, one of the most commonly seen regulations on Bitcoin and other cryptocurrency is the incorporation of anti-money-laundering and counter-financing of terrorism (AML/CFT) laws, which almost invariably applied even in countries that have otherwise not regulated crypto in any other meaningful way.
There are several major countries where people are allowed to trade cryptocurrency. For example, the financial crimes enforcement network, which is based in the United States, has been issuing guidance related to Bitcoin since 2013. Now that regulations exist in the United States regarding cryptocurrency, it is possible for US residents to legally trade in it.
The European Union has also recognized Bitcoin, as well as other forms of cryptocurrency, as crypto assets. It is legal to use Bitcoin throughout the European Union, but the European Banking Authority has stated that the cryptocurrency regulatory network is outside of its own control. Therefore, it continues to issue stern warnings to people who use cryptocurrency regularly.
Answering the question of which countries consider cryptocurrency to be legal tender requires a clear definition of the term legal tender, which does not simply mean a currency is legal to use. When a government declares a currency to be legal tender, that currency is designated as official, which means the government accepts it and also requires all creditors to accept it as payment for debt. For example, in the United States, the only legal tender is Federal Reserve notes (i.e.: paper money) and coins—which is to say, cash. Even checks and credit cards, while widely accepted, are not considered legal tender. Rather, they are substitutes that can stand in for legal tender in many circumstances.
On 9 June 2021, El Salvador became the first country in the world to declare a cryptocurrency—Bitcoin, to be specific—to be legal tender. Since that time, El Salvador has had two forms of official legal tender: Bitcoin and United States dollars. Less than a year later, on 22 April 2022, the Central African Republic followed suit, establishing Bitcoin as a government-sanctioned legal tender alongside the Central African CFA franc.
Country | Year made legal tender |
---|---|
El Salvador | 9 June 2022 |
Central African Republic | 22 April 2022 |
National bans on crypto fall into two categories. The most straightforward type is an absolute ban, which prohibits all crypto transactions of any kind. Most absolute bans stem from either a strict interpretation of Muslim scripture or a concern about crypto's usefulness in money laundering or the funding of terrorists. The second type of ban is an implicit ban, which does not explicitly ban crypto, but restricts it in ways that render it difficult to actually use. For example, implicit bans often prohibit banks from processing crypto transactions and forbid businesses from accepting crypto as payment.
Country | Ban type | Country | Ban type | Country | Ban type | ||
---|---|---|---|---|---|---|---|
Afghanistan | Absolute | Ghana | Absolute | Niger | Implicit | ||
Algeria | Absolute | Guyana | Implicit | Nigeria | Implicit | ||
Argentina | Implicit | Indonesia | Implicit | North Macedonia | Absolute | ||
Bahrain | Implicit | Iran | Implicit | Oman | Implicit | ||
Bangladesh | Absolute | Iraq | Absolute | Pakistan | Implicit | ||
Benin | Implicit | Ivory Coast | Implicit | Palau | Implicit | ||
Bolivia | Absolute | Jordan | Implicit | Qatar | Absolute | ||
Burkina Faso | Implicit | Kazakhstan | Implicit | Republic of the Congo | Implicit | ||
Burundi | Implicit | Kosovo | Implicit | Russia | Implicit | ||
Cameroon | Implicit | Kuwait | Implicit | Saudi Arabia | Implicit | ||
Chad | Implicit | Lebanon | Implicit | Senegal | Implicit | ||
China | Absolute | Lesotho | Implicit | Taiwan | Implicit | ||
Colombia | Implicit | Libya | Implicit | Thailand | Implicit | ||
Dominican Republic | Absolute | Maldives | Implicit | Togo | Implicit | ||
DR Congo | Implicit | Mali | Implicit | Tunisia | Absolute | ||
Ecuador | Implicit | Morocco | Absolute | Turkey | Implicit | ||
Egypt | Absolute | Namibia | Implicit | Turkmenistan | Implicit | ||
Gabon | Implicit | Nepal | Absolute | Vietnam | Implicit |
Country | Status | Notes |
---|---|---|
Afghanistan | Absolute ban | Banned by the Taliban in August 2022 |
Albania | Legal to use/Undefined | Government has warned citizens of the risks of crypto |
Algeria | Absolute ban | The purchase, sale, use, and holding of so-called virtual currency are all prohibited |
Angola | Legal to use/Undefined | AML/CFT laws apply. No other legislation exists yet. |
Anguilla | Legal to use/Undefined | AML/CFT laws apply. Initial coin offerings (ICOs) are regulated |
Antigua and Barbuda | Legal to use/Undefined | Accepted as payment for citizenship. AML/CFT laws apply |
Argentina | Implicit ban | Legal, but banks are forbidden to process crypto transactions. Tax laws and AML/CFT laws apply |
Australia | Legal to use/Undefined | Tax laws and AML/CFT laws apply |
Austria | Legal to use/Undefined | No VAT, but other tax laws and AML/CFT laws apply |
Azerbaijan | Legal to use/Undefined | No VAT, but other tax laws and AML/CFT laws apply |
Bahamas | Legal to use/Undefined | AML/CFT laws apply |
Bahrain | Implicit ban | Banks and other financial institutions are prohibited from dealing in cryptocurrencies or offering services to individuals/businesses dealing in cryptocurrencies. AML/CFT laws apply |
Bangladesh | Absolute ban | All crypto transactions are prohibited |
Barbados | Legal to use/Undefined | Barbados launched its own cryptocurrency, DCash, in 2022 |
Belarus | Legal to use/Undefined | Tax laws and AML/CFT laws apply |
Belgium | Legal to use/Undefined | Tax laws and AML/CFT laws apply |
Belize | Legal to use/Undefined | No regulations yet as of 2022-11 |
Benin | Implicit ban | Cryptocurrencies are “not admitted” to bank |
Bermuda | Legal to use/Undefined | AML/CFT laws apply |
Bhutan | Legal to use/Undefined | AML/CFT laws apply |
Bolivia | Absolute ban | Banned in 2014. |
Bosnia and Herzegovina | Legal to use/Undefined | No regulations yet as of 2022-11 |
Brazil | Legal to use/Undefined | Crypto is taxed (Tax laws apply) |
Bulgaria | Legal to use/Undefined | AML/CFT laws apply |
Burkina Faso | Implicit ban | Cryptocurrencies are “not admitted” to bank |
Cambodia | Legal to use/Undefined | Government is reportedly developing its own cryptocurrency |
Cameroon | Implicit ban | Because crypto is unregulated by the regional economic authority (CEMAC), services involving crypto are illegal. Planned regulations may legalize crypto soon. |
Canada | Legal to use/Undefined | Regulated, crypto cannot be purchased on some credit cards, banks' involvement is limited, tax laws apply. However, many crypto-friendly breaks exist. AML/CFT laws apply, |
Cayman Islands | Legal to use/Undefined | Crypto-friendly laws exist. AML/CFT laws apply |
Central African Republic | Official legal tender (Bitcoin) | On 2022-04-22, Central African Republic became the second country in the world to make Bitcoin a government-sanctioned legal tender (alongside CFA franc). Tax laws & AML/CFT laws apply |
Chad | Implicit ban | Because crypto is unregulated by the regional economic authority (CEMAC), services involving crypto are illegal. Planned regulations may legalize crypto soon. |
Chile | Legal to use/Undefined | Tax laws apply |
China | Absolute ban | Financial institutions may not process crypto-related transactions. Crypto trading and mining were banned 24 Sept. 2021 |
Colombia | Implicit ban | Although crypto itself is legal, banks are prohibited from processing crypto-related transactions |
Costa Rica | Legal to use/Undefined | Officially declared a non-currency in Oct 2017 and therefore not accepted in the national payment system. Tax laws apply |
Croatia | Legal to use/Undefined | Tax laws and AML/CFT laws apply |
Cuba | Legal to use/Undefined | AML/CFT laws apply |
Cyprus | Legal to use/Undefined | No VAT, but other tax laws and AML/CFT laws apply |
Czech Republic | Legal to use/Undefined | Tax laws and AML/CFT laws apply |
Denmark | Legal to use/Undefined | Tax laws and AML/CFT laws apply |
Dominican Republic | Absolute ban | All money debts must be paid in "the agreed, legal, currency", a criterion that crypto does not meet |
Ecuador | Implicit ban | Neither the sale nor purchase of crypto is illegal, but crypto is not an authorized form of payment. |
Egypt | Absolute ban | Crypto has been declared haram (prohibited) under Islamic law. All individuals, banks, and other financial institutions are forbidden to deal in crypto. AML/CFT laws apply |
El Salvador | Official legal tender (Bitcoin) | On 9 June 2021, El Salvador became the first country in the world to make Bitcoin a government-sanctioned legal tender (alongside the US dollar). Tax laws and AML/CFT laws apply |
Estonia | Legal to use/Undefined | Tax laws are relaxed. Estonia may soon introduce Estcoin, a national cryptocurrency. AML/CFT laws apply |
Finland | Legal to use/Undefined | Tax laws and AML/CFT laws apply |
France | Legal to use/Undefined | Tax laws and AML/CFT laws apply |
Gabon | Implicit ban | Because crypto is unregulated by the regional economic authority (CEMAC), services involving crypto are illegal. Planned regulations may legalize crypto soon. |
Georgia | Legal to use/Undefined | Largely unregulated. Companies that sell crypto must pay 15% income tax on the profits. |
Germany | Legal to use/Undefined | Crypto is defined as private money, enabling significant tax breaks. Banks are allowed to buy and sell crypto. AML/CFT laws apply, |
Ghana | Absolute ban | Illegal, but this may change as the country determines where crypto fits in its financial system |
Gibraltar | Legal to use/Undefined | Tax laws and AML/CFT laws apply |
Greece | Legal to use/Undefined | No VAT, but other tax laws and AML/CFT laws apply |
Guernsey | Legal to use/Undefined | Tax laws apply |
Hong Kong | Legal to use/Undefined | Tax laws and AML/CFT laws apply |
Hungary | Legal to use/Undefined | Tax laws and AML/CFT laws apply |
Iceland | Legal to use/Undefined | Tax laws and AML/CFT laws apply |
India | Legal to use/Undefined | Tax laws and AML/CFT laws apply |
Indonesia | Implicit ban | While technically not outlawed, a Nov 2021 ruling determined that Muslim law forbids the possession or trading of any cryptocurrency that lacks a physical form (among other requirements) |
Iran | Implicit ban | Financial entities may not use or handle crypto |
Iraq | Absolute ban | Banned due to possibilities of money laundering. AML/CFT laws apply |
Ireland | Legal to use/Undefined | Tax laws and AML/CFT laws apply |
Isle of Man | Legal to use/Undefined | AML/CFT laws apply |
Israel | Legal to use/Undefined | Tax laws and AML/CFT laws apply |
Italy | Legal to use/Undefined | No VAT, but other tax laws and AML/CFT laws apply |
Ivory Coast | Implicit ban | Cryptocurrencies are “not admitted” to bank |
Jamaica | Legal to use/Undefined | Bank of Jamaica has a generally favorable view of cryptocurrency |
Japan | Legal to use/Undefined | Legal but regulated. Tax laws and AML/CFT laws apply |
Jersey | Legal to use/Undefined | Tax laws and AML/CFT laws apply |
Jordan | Implicit ban | Financial entities may not use or handle crypto, though individual businesses may. |
Kazakhstan | Implicit ban | Heavy restrictions exist; may become an absolute ban in the near future |
Kenya | Legal to use/Undefined | Tax laws apply |
Kuwait | Implicit ban | Financial entities may not use or handle crypto |
Kyrgyzstan | Legal to use/Undefined | Tax laws apply |
Latvia | Legal to use/Undefined | Tax laws and AML/CFT laws apply |
Lebanon | Implicit ban | Financial entities may not use or handle crypto. AML/CFT laws apply |
Lesotho | Implicit ban | Unlicensed transactions are disallowed. AML/CFT laws apply |
Libya | Implicit ban | Financial entities may not use or handle crypto. AML/CFT laws apply |
Liechtenstein | Legal to use/Undefined | Tax laws and AML/CFT laws apply |
Lithuania | Legal to use/Undefined | Tax laws and AML/CFT laws apply |
Luxembourg | Legal to use/Undefined | Tax laws and AML/CFT laws apply |
Macau | Legal to use/Undefined | Financial institutions are not allowed to process crypto transactions. |
Malaysia | Legal to use/Undefined | Tax laws and AML/CFT laws apply |
Malta | Legal to use/Undefined | Tax laws apply but many crypto-friendly breaks exist. AML/CFT laws apply, |
Marshall Islands | Legal to use/Undefined | Legal currency is the sovereign (SOV), which is powered by blockchain |
Mauritius | Legal to use/Undefined | AML/CFT laws apply |
Mexico | Legal to use/Undefined | AML/CFT laws apply |
Montenegro | Legal to use/Undefined | AML/CFT laws apply |
Morocco | Absolute ban | AML/CFT laws apply |
Namibia | Implicit ban | Crypto exchanges are banned and cryptocurrency cannot be accepted as payment for goods and services. AML/CFT laws apply |
Nepal | Absolute ban | Crypto transactions of any kind are illegal |
Netherlands | Legal to use/Undefined | No VAT. Tax laws apply but many crypto-friendly breaks exist. AML/CFT laws apply, |
New Zealand | Legal to use/Undefined | Tax laws and AML/CFT laws apply |
Niger | Implicit ban | Cryptocurrencies are “not admitted” to bank |
Nigeria | Implicit ban | Banks and other financial institutions may not use, hold, trade, or transact in virtual currencies. |
North Macedonia | Absolute ban | While some sources cite a lack of official laws regarding crypto use in North Macedonia as proof that crypto is legal, the Governor of the National Bank of Macedonia in 2014 declared that trading and use of Bitcoin was illegal. |
Norway | Legal to use/Undefined | Tax laws and AML/CFT laws apply |
Oman | Implicit ban | Financial entities may not use or handle crypto. AML/CFT laws apply |
Pakistan | Implicit ban | Banks and other financial institutions may not process, use, trade, hold, or invest in virtual currencies. However, the Khyber Pakhtunkhwa province moved to legalize crypto in Dec. 2020 |
Palau | Implicit ban | Crypto is legal to possess, but crypto transactions are prohibited until regulations are in place |
Philippines | Legal to use/Undefined | AML/CFT laws apply |
Poland | Legal to use/Undefined | Tax laws and AML/CFT laws apply |
Portugal | Legal to use/Undefined | Considered a tax haven for cryptocurrencies. AML/CFT laws apply |
Qatar | Absolute ban | AML/CFT laws apply |
Republic of the Congo | Implicit ban | Because crypto is unregulated by the regional economic authority (CEMAC), services involving crypto are illegal. Planned regulations may legalize crypto soon. |
Romania | Legal to use/Undefined | Tax laws and AML/CFT laws apply |
Russia | Implicit ban | Crypto disallowed as a payment method, but Russia announced in 2022 that it would begin to support crypto rather than prohibit it. Tax laws and AML/CFT laws apply |
Saint Kitts and Nevis | Legal to use/Undefined | Tax laws and AML/CFT laws apply |
Saint Lucia | Legal to use/Undefined | AML/CFT laws apply |
Samoa | Legal to use/Undefined | AML/CFT laws apply |
Saudi Arabia | Implicit ban | Legalized for individuals, but financial entities may not use or handle crypto. AML/CFT laws apply |
Senegal | Implicit ban | Cryptocurrencies are “not admitted” to bank |
Serbia | Legal to use/Undefined | Tax laws and AML/CFT laws apply |
Singapore | Legal to use/Undefined | Tax laws apply but many crypto-friendly breaks exist. AML/CFT laws apply, |
Slovakia | Legal to use/Undefined | Tax laws and AML/CFT laws apply |
Slovenia | Legal to use/Undefined | No VAT, and Slovenia offers many tax breaks for crypto users. AML/CFT laws apply |
South Africa | Legal to use/Undefined | Tax laws apply |
South Korea | Legal to use/Undefined | Tax laws and AML/CFT laws apply |
Spain | Legal to use/Undefined | No VAT, but other tax laws and AML/CFT laws apply |
Sri Lanka | Legal to use/Undefined | AML/CFT laws apply |
Sweden | Legal to use/Undefined | Tax laws and AML/CFT laws apply |
Switzerland | Legal to use/Undefined | Many crypto-friendly tax breaks exist. Switzerland welcomes crypto startups. AML/CFT laws apply |
Taiwan | Implicit ban | Legal for individuals, but financial entities may not use or handle crypto. AML/CFT laws apply |
Tanzania | Legal to use/Undefined | Crypto is legal, but not encouraged |
Thailand | Implicit ban | A ruling on 1 April 2022 declared crypto legal to possess and trade, but forbade its use as payment for goods or services. |
Togo | Implicit ban | Cryptocurrencies are “not admitted” to bank |
Turkey | Implicit ban | Purchasing crypto is legal, but using it to pay for goods or services is not. |
Ukraine | Legal to use/Undefined | Legal, though the amount of crypto one may purchase with local currency is limited. Tax laws and AML/CFT laws apply |
United Arab Emirates | Legal to use/Undefined | Embraced blockchain in 2022, though banking regulations are still catching up. Tax laws and AML/CFT laws apply |
United Kingdom | Legal to use/Undefined | Tax laws and AML/CFT laws apply. Crypto ATMs were declared illegal in March 2022 for failing to register properly |
United States | Legal to use/Undefined | Tax laws and AML/CFT laws apply |
Uzbekistan | Legal to use/Undefined | Officially legalized 2 September 2018. Tax laws and AML/CFT laws apply |
Vanuatu | Unclear | News outlets reported that the government accepted Bitcoin as payment for citizenship, the country's citizenship office claims to accept only USD |
Venezuela | Legal to use/Undefined | State has its own cryptocurrency in 2017, crypto became illegal in 2018, then declared legal again in 2020. AML/CFT laws apply |
Vietnam | Implicit ban | Legal for individuals to possess and trade, but cannot be used as payment and prohibited for financial institutions. AML/CFT laws apply |
Zimbabwe | Unclear | Crypto was banned, the ban was lifted in court, then the lifting of the ban was legally challenged. Resolution is not yet known as of 2022-11 |
There are currently only two countries where cryptocurrency has officially been declared legal; El Salvador and the Central African Republic.