Who's Betting Big On Bitcoin Globally?

Bitcoin is a decentralised, peer-to-peer digital currency that was introduced in 2009. While some countries have embraced it, others have restricted their citizens from buying cryptocurrencies. Some nations have imposed an outright ban on digital currency. However, many countries are investing in Bitcoin. Here are some of the top countries that are investing in or using Bitcoin:

Countries where Bitcoin is legal

The legal status of Bitcoin varies from country to country, with differing regulatory implications. While some countries have explicitly allowed its use and trade, others have banned or restricted it.

United States

The U.S. Department of Treasury's Financial Crimes Enforcement Network (FinCEN) has issued guidance on Bitcoin since 2013, defining it as a convertible currency with an equivalent value in real currency. The Internal Revenue Service has also categorized Bitcoin as property for taxation purposes. Under current U.S. laws, any entity that administers or exchanges Bitcoin is subject to the Bank Secrecy Act and must register with the U.S. Treasury.

Canada

Canada maintains a generally bitcoin-friendly stance, similar to the U.S. The Canadian Revenue Agency defines Bitcoin as a crypto-asset that is taxed based on the circumstances in which it was used. Any income from a Bitcoin transaction is considered either business income or a capital gain and must be reported. Canada also considers cryptocurrency exchanges to be money service businesses, bringing them under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act.

United Kingdom

The U.K. has allowed cryptocurrency use since its inception, using existing policies to develop a framework for cryptoasset regulation. The U.K. updated its Financial Services and Markets Act in 2023 to guide the regulation of digital assets, granting the government the ability to designate and regulate cryptoasset activities.

Australia

The Australian Taxation Office considers Bitcoin a financial asset with value that can be taxed when specific events occur, such as trading, exchanging, selling, or using it for purchases. However, if Bitcoins are held strictly for personal use and gains are made, taxes may not be owed.

El Salvador

El Salvador made Bitcoin legal tender in 2021, becoming the first country to do so. However, this move was criticized by many central banks and financial institutions, and El Salvador has not made a profit on its crypto purchases as of 2022.

Central African Republic

The Central African Republic voted to make Bitcoin legal tender in April 2022. However, this decision was later repealed in April 2023.

While the above countries have explicit regulations permitting the use of Bitcoin, there are many other countries where Bitcoin is not explicitly banned and is, therefore, allowed to varying degrees. These include, but are not limited to:

• Trinidad and Tobago
• Mexico
• Jamaica
• Brazil
• Ecuador
• Kyrgyzstan
• United Arab Emirates
• Japan
• Switzerland
• Albania
• Belarus
• Ukraine
• Finland
• Sweden
• Ireland
• Australia
• New Zealand
• Fiji
• Samoa
• Tonga

Countries where Bitcoin is illegal

Bitcoin is a peer-to-peer digital currency that was introduced in 2009. While it is used for buying goods and services, there are no uniform international laws that regulate it. Its use and status vary from country to country. While many countries allow the use of Bitcoin, some have banned or restricted it due to concerns about its volatility, decentralized nature, and potential use for illicit activities. Here are some countries where Bitcoin is generally banned or restricted:

China

China does not recognize Bitcoin as a form of currency and has taken steps to prohibit financial institutions from handling Bitcoin transactions. Cryptocurrency exchanges and trading platforms have been effectively banned, and many Bitcoin mining operations in the country have ceased.

Saudi Arabia

The Saudi Central Bank (SAMA) has warned against using Bitcoin due to its high risk and lack of protection for its users. Bitcoin is not considered legal tender, but it is still accepted by some small businesses and merchants.

Morocco

Morocco has prohibited the use of virtual currencies, including Bitcoin. The monetary authorities have warned against the risks associated with Bitcoin, including its potential use for money laundering and terrorist financing.

Nigeria

The Central Bank of Nigeria (CBN) has banned bank transactions in Bitcoin and other virtual currencies. However, a committee has been set up to explore the possibility of adopting the blockchain technology that underlies Bitcoin.

Algeria

While there is no specific legislation on Bitcoin in Algeria, the government has issued warnings against its use. Bitcoin is not considered a currency, and financial institutions are prohibited from facilitating Bitcoin transactions.

Egypt

Bitcoin is not regulated by the Central Bank of Egypt, and it is not considered a legal tender. However, there are no laws prohibiting its use, and individuals can buy, sell, and hold Bitcoin.

Vietnam

The State Bank of Vietnam has declared that using Bitcoin and other virtual currencies as a means of payment is illegal and subject to punishment. However, the government does not ban Bitcoin trading as a virtual asset.

Bolivia

The Central Bank of Bolivia issued a resolution banning Bitcoin and any other unregulated virtual currencies in 2014. This resolution was later repealed in 2020, but there is still no clear regulatory framework for Bitcoin in the country.

Russia

Russia has had a complex relationship with Bitcoin. While it has not outright banned the cryptocurrency, there have been mixed messages from different government bodies. The Central Bank of Russia has warned citizens about the risks associated with Bitcoin, but President Putin has stated that Russia accepts the role of cryptocurrencies and that they can be used for payment.

These are just a few examples of countries where Bitcoin is illegal or restricted. The legal status of Bitcoin is complex and constantly evolving, with some countries adopting a more favorable approach while others imposing bans or restrictions. It is important to stay informed about the regulations in your country before engaging with Bitcoin or any other cryptocurrency.

Countries with the most Bitcoin investors

While Bitcoin and other cryptocurrencies are becoming increasingly popular worldwide, there are notable differences in adoption rates between countries. Several factors, including economic stability, inflation, and cultural norms, influence the number of Bitcoin investors in a country. Here is a list of countries with the most Bitcoin investors and the factors contributing to their high adoption rates.

Nigeria

Nigeria is at the forefront of crypto adoption, with approximately 32% of its population reporting crypto usage in 2020. This high adoption rate can be attributed to several factors, including the country's unique culture, high poverty rates, and preference for mobile payments. Additionally, Nigeria's history of double-digit inflation rates has likely contributed to the appeal of Bitcoin as a hedge against inflation.

United States

The United States is a leader in Bitcoin investment and trading, with more than $1.52 billion worth of Bitcoin traded on U.S. crypto exchanges in 2020. While the overall adoption rate in the U.S. is lower than in Nigeria, certain states, such as Hawaii, California, Florida, and Colorado, have emerged as hotspots for crypto investment. The legalisation of Bitcoin and the increasing acceptance by businesses have contributed to the country's significant count of cryptocurrency investors.

Vietnam

Vietnam is making waves in the world of crypto, with 20% of its residents reporting that they have purchased Bitcoin. This is particularly notable given that Vietnam ranks 53rd in Gross Domestic Product globally. Despite the illegality of using cryptocurrencies for purchases in Vietnam, many people consider it a significant investment opportunity.

India

India has established itself as a global leader in cryptocurrency, with 9% of respondents in a survey reporting cryptocurrency usage. The removal of the ban on crypto transactions by the supreme court has resulted in a surge of retail investors, particularly among the younger generation, with 40% of crypto users aged 18-34.

Germany

Germany has embraced cryptocurrencies, with 2.62% of its population, or 2.1 million residents, currently using them. Germany's legalisation of Bitcoin and favourable tax regulations for long-term investors have contributed to its high adoption rate.

Philippines

The Philippines has witnessed a remarkable rise in the value of Bitcoin, increasing from $1,000 to $11,000. The government's decision to allow ten blockchain companies to operate within economic zones has played a significant role in making the Philippines the third-largest crypto user country globally.

Other Notable Countries

Other countries with notable Bitcoin investment and usage include Australia, Ukraine, France, Japan, and El Salvador. These countries have varying levels of crypto adoption, influenced by factors such as regulatory environments, economic conditions, and cultural attitudes towards digital currencies.

Countries that encourage Bitcoin investment

While Bitcoin and other cryptocurrencies are yet to be widely accepted and legalised globally, several countries have embraced the digital currency and encouraged its investment. Here is a list of countries that have shown a significant interest in Bitcoin and actively promote its usage:

Portugal

The country's tax laws make Portugal an attractive destination for Bitcoin investors. According to Portuguese law, profits from Bitcoin investments are not subject to capital gains tax. Additionally, the exchange of cryptocurrencies for other fiat currencies is also tax-free.

Switzerland

Switzerland is known for its high banking standards, offering high privacy and low risks. The country is divided into 26 cantons, each with its own legal treatment for cryptocurrencies. While one canton may tax cryptocurrency, another may not, and the rules can vary within each canton. For example, in Zurich, capital gains on Bitcoin are exempt from tax, while mining gains are taxed as regular income.

Germany

In Germany, cryptocurrency is considered private money, and the crypto laws favour long-term investors. Residents who hold cryptocurrency for a year or more are exempt from paying taxes. On the other hand, those who hold cryptocurrencies for less than a year will be subject to capital gains tax.

Singapore

Singapore boasts one of the most stable economies and best business environments in the world. The country recognises the importance of regulating cryptocurrency to prevent money laundering while fostering innovation. The Payment Services Act of 2019 sets out the legal framework for cryptocurrencies in Singapore, and capital gains taxes do not apply to cryptocurrencies.

Malta

Malta, a member of the European Union, opened its doors to the Binance exchange after Hong Kong tightened its regulations. This move allows crypto operations in Malta to be freely conducted anywhere in the EU.

Cyprus

Cyprus is known for its laissez-faire attitude towards cryptocurrencies. The Cyprus Securities and Exchange Commission has established an Innovation Hub to protect investors from potential crypto losses, and there are no restrictions on mining.

Bermuda

Bermuda has a favourable regulatory environment for individuals and businesses dealing with cryptocurrencies and other digital assets. The country imposes zero income and capital gains tax on these assets.

United States

The United States is a significant player in the world of Bitcoin and cryptocurrency. While it does not have the highest percentage of the population using crypto, it leads in terms of trading volume. In 2020, over $1.52 billion worth of Bitcoin was traded on U.S. crypto exchanges, more than three times the volume of the second-ranked country, Russia.

Japan

Japan has a long history of crypto investment and is one of the earliest adopters of cryptocurrency. The government's legalisation and early regulation of cryptocurrency have contributed to its widespread use.

Vietnam

Vietnam is a leader in crypto investments globally. Despite it being illegal to use cryptocurrencies for purchases, a survey found that 20% of Vietnamese residents had purchased Bitcoin.

Australia

Australia has legalised the use and exchange of cryptocurrencies and has progressive crypto regulations. Over 59% of Australian citizens have invested in cryptocurrency, and the government has declared that Bitcoin is subject to capital gains tax.

Nigeria

Nigeria is one of the top countries using cryptocurrency, according to the Statista Global Consumer Survey. The low cost of sending money across the country using crypto has driven its widespread adoption. Additionally, the country's unique culture and circumstances, including high inflation, make cryptocurrencies an attractive option.

India

India has emerged as a global leader in the cryptocurrency space. After the supreme court lifted the ban on crypto transactions, the number of retail investors in India surged, with over 8 million people investing, mostly from the younger generation.

Ukraine

Ukraine is actively promoting the use of cryptocurrencies and creating favourable conditions for bitcoin mining. The government aims to transform the country into a hot destination for crypto-related activities.

France

France has a relatively high adoption rate of cryptocurrency, with 3.3% of its citizens using crypto assets. The awareness of cryptocurrencies among the French population is high, and the country has introduced crypto exchange licenses to legalise their usage for businesses.

Countries that have imposed a ban on Bitcoin usage

While Bitcoin is welcomed in many parts of the world, several countries have banned its usage due to concerns about its volatility, decentralized nature, and potential use for illicit activities. Here is a list of countries that have imposed a ban on Bitcoin:

Algeria

Algeria prohibits the use of cryptocurrency following the passing of a financial law in 2018 that made it illegal to buy, sell, use, or hold virtual currencies.

Bangladesh

Bangladesh has ambiguous legislation regarding cryptocurrencies. While official prohibitions are in place, with transactions in crypto punishable by up to 12 years under money laundering and terrorist financing laws, the country has also proposed a new blockchain strategy, signalling a potential shift towards accepting crypto and virtual assets.

Bolivia

Bolivia imposed a complete ban on the usage of Bitcoin in 2014. The Bolivian Central Bank issued a resolution banning it and any other currency not regulated by a country or economic zone.

China

China has been cracking down on cryptocurrencies, with officials repeatedly warning citizens to stay clear of the digital asset market. In September 2021, the People's Bank of China (PBoC) banned cryptocurrency transactions in the country.

Colombia

Financial institutions in Colombia are not allowed to facilitate Bitcoin transactions. The Superintendencia Financiera warned financial institutions in 2014 that they may not "protect, invest, broker, or manage virtual money operations".

Egypt

Egypt’s primary Islamic advisory body, Dar al-Ifta, issued a religious decree in 2018, classifying Bitcoin transactions as “haram,” or prohibited under Islamic law. While not legally binding, Egypt’s banking laws were tightened in September 2020 to prevent the trading or promotion of cryptocurrencies without a Central Bank license.

Indonesia

Bank Indonesia, the country's central bank, banned the use of cryptocurrencies, including Bitcoin, as a means of payment from January 1, 2018.

Ghana

Cryptocurrencies are illegal in Ghana, but its central bank has expressed interest in blockchain technology and is assessing how it could be integrated into the country's financial system.

India

The Indian government has become increasingly hostile towards cryptocurrencies. In November 2021, it announced its intention to introduce a bill to ban almost all private cryptocurrencies.

Iraq

Despite sustained efforts by the Iraqi Central Bank to block their use, cryptocurrencies are gaining popularity in the country. The bank issued a statement in 2017 prohibiting their use, which remains in force today.

Kosovo

Kosovo has banned crypto mining due to a growing energy crisis. The country is facing historic power shortages and has implemented scheduled power cuts to conserve energy.

Mexico

Cryptocurrencies are prohibited in Mexico. In June 2021, the country stated that virtual assets were not legal tender and not considered currencies under existing laws.

Nepal

The Nepal Rastra Bank, the country's central bank, banned the use, mining, and trade of cryptocurrencies in September 2021.

North Macedonia

North Macedonia is the only European country with an official ban on cryptocurrencies such as Bitcoin and Ethereum.

Vietnam

The State Bank of Vietnam has declared that the issuance, supply, and use of Bitcoin and other cryptocurrencies are illegal as a means of payment. However, the Vietnamese government does not ban Bitcoin trading or holding it as an asset.

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