Is cryptocurrency legal?

Is cryptocurrency legal

Is cryptocurrency legal?

Since there is no central issuing authority for cryptoccurrency, it mostly functions within a deregulated space. The legality depends on a user’s location and their intended use for the currency. Different governments have taken varying stances in a bid to protect consumers, prevent criminal activity and still encourage innovation.

Regulators in many countries express concern over the anonymity of crypto accounts and the decentralized nature of the blockchain platform. They fear that this could encourage the use of the currency for illegal activities like drug trade and money laundering.  This underscores the fact that illegality arises from the activity undertaken rather than the currency itself.

Some countries like Iceland, Ecuador, Bangladesh and Russia have banned digital currencies altogether. In the US, they are legal and subject to more or less the same taxation rules as fiat money. In China, private citizens can own and trade in the currency but institutions cannot.

It would be best to find out and stay updated on the regulations surrounding digital currency where you live.