If it is not controlled, Bitcoin may be considered legal

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Cryptocurrencies, in this case, bitcoin, are booming and represent the new business option for many people and technology startups, but to what extent are cryptocurrencies legal? As a result, Bitcoin System trading platform is a reliable exchange that investors can trade Bitcoin using trading bots. 

First, we must define what cryptocurrencies are and their legality, which is regulated differently in different countries.

Although they call it virtual currency, it is not a currency as such; It is a digital medium of exchange, which is not identified as currency by lawyers since any State does not print it. Bitcoin is not recognized as money but as “a money service business” with a fiat currency equivalent.

Bitcoin legality in the world

Bitcoin is a fund in the ordinary sense; it can be accepted as payment for goods and services or purchased directly from an exchange with a wallet. Therefore, they function as economic resources and are used as a means of business and an instrument of payment.

Depending on the geographic location, the legality of bitcoin differs substantially. Many countries do not use cryptocurrencies because they consider them illegal. Even so, they are seen as investment tools or a strategy to curb the inflation that affects them.

While some countries have explicitly allowed its marketing and manipulation, others have prohibited or restricted it.

In turn, various government entities have cataloged bitcoins in multiple ways. Therefore, the possible legality granted to bitcoin represents a significant advance, not only for crypto assets but for the whole concept of the digital market.

Worldwide, Bitcoin has been legally considered a digital asset. Still, it has yet to be included in the currency classification, even though it has the characteristics that place it perfectly in this classification, at least in America.

It is a fact that several countries consider cryptocurrencies as legal payment methods and, in turn, have created legal instruments that allow their use within the territory and with the legal support that each nation grants.

For example, El Salvador has legalized the use of Bitcoin as a legal tender, while many countries are in the dilemma of adopting them or not as alternative payment methods.

These actions have a greater incidence from a fiscal perspective, resulting in many dollars entering individuals due to digital investments. There the countries let escape a significant portion of their income from tax withholdings.

Inflation is the primary fight.

In the specific case of cryptocurrencies, we are facing a situation in which the state or governments do not have control over the allocation of the price or value of cryptocurrencies; it is there where this power struggle exists because the supply and demand of it control the financial market digitally.

Inflation in the case of the crypto market is entirely controlled by its users and the credibility and trust they have about cryptographic transactions, where the amount and speed of cryptocurrency creation also play an essential role.

Suppose this is so, that natural persons are the ones who control their production. You can even mine cryptocurrencies from your own home or business. In that case, it is essential to determine if this is legal. And the answer is simple; It depends on the country/government where you are.

Many doubts arise: is Bitcoin legal? But it has yet to have a clear answer; consequently, for many countries, it is considered legal, while for others, it is an instrument that goes against the customs related to fiat currencies.

In addition, controversy arises regarding the issuance of cryptocurrencies and their origin since they are not issued by a Central Bank but for the effects of crypto mining.

In the area where cryptocurrencies are located, their legality is neutral because some laws and regulations regulate them. Still, even so, they are not considered legal tender.

It could be considered that from the point of legality, cryptocurrencies are in a kind of legal vacuum from the position of the Central Banks of the world and financial institutions; it is evident that it is necessary to create a legal system that classifies them because they are growing and constant adoption.

Conclusion

Due to their original characteristics and 100% digital nature, cryptocurrencies cannot have the same classification as Fiat currencies.

No declaration has been issued where they are considered illegal, or mining is specifically a crime. Still, it all depends on each authority to give the respective approach to guide their users.

This phrase represents the correct answer to the doubt of many users or investors who have decided to leave their capital to the free flow of a digital currency whose volatility is unpredictable.

The Mazatlan Post


This phrase represents the correct answer to the doubt of many users or investors who have decided to leave their capital to the free flow of a digital currency whose volatility is unpredictable.