Bitcoins are an innovative form of electronic money. Just like other forms of electronic cash, we can earn bitcoin and use them as a form of payment. However, we often notice that they are not as widely used as other forms of payment such as apps like paytm, PayPal,etc. This is due to the questionable legality of bitcoins.
We can usually earn bitcoins by purchasing them at a bitcoin exchange center using PayPal and other forms of cash, or by exchanging them with other bitcoin earners. Several countries like America, Mexico, Russia allow the use of bitcoins as a legal form of payment for goods and services.
Owing to their higher value, we can earn bitcoins and use them freely without any retributions. By accepting bitcoins as a form of foreign currency, several of these countries allow their registration and exchange with banks. They also impose taxes on people who earn bitcoins similar to those who make money.
Bitcoin in other countries
In contrast, there are other countries like Saudi Arabia, Bangladesh, Columbia, Pakistan which ban all operations like earning bitcoins and exchanging or possessing them. These countries often do not allow individuals or their banks to involve themselves in any disputes related to bitcoins. This is because of the nature of bitcoins which will enable them to be used in money laundering and as a form of payment in terrorist activities if proper restrictions are not put in place. The inability to officially monitor and tax bitcoins led to the implicit ban followed by the crackdown of bitcoin exchange systems in several countries like China.
Nevertheless, few other countries like India, Canada, and Bangladesh did not explicitly ban the use of bitcoins but instead allowed their use for personal needs while simultaneously curtailing their use by imposing a banking ban on them. This allows these countries to encourage electronic forms payment while at the same time curb the terrorist activities and money laundering instances that might occur using bitcoins. These countries also support the people who earn bitcoins to report any suspicious or terrorist activity to the government immediately.
Thus, different countries have reacted differently to bitcoins and care must be taken to understand their legal status before we earn bitcoins and use them as a form of payment.