A final group are countries and territories where all types of cryptocurrency transactions, as well as cryptocurrency mining, are prohibited. This group includes China and Bolivia, which have banned all types of foreign currency since 2014. The penetration of the use of crypto-currencies in Latin America has increased. According to Finder, a financial information provider, Mexico and Argentina have the largest presence of cryptocurrency among Latin American citizens at 15.2 percent, according to the latest survey late last year. It is followed by Venezuela with 14.6% and Colombia with 14.5%, higher amounts than those recorded by the United States, where only 10.5% of the population has a cryptocurrency wallet. O`Farrell Mairal, a partner at Marval, points out that another risk is the uncertainty surrounding the regulation of cryptocurrencies, in addition to the need for a legal framework that matches the real risks of this type of asset. The BoJ`s decision has been brewing for some time when the bank announced in March that it would work with Irish company eCurrency Mint to set up the system. This happened after a campaign supported by the bank in 2017 to raise awareness about cryptocurrencies. Buying goods and services with cryptocurrencies is completely legal as long as both parties agree to such a transaction. While Bitcoin is already widely used in India, there is still “no clear law indicating whether Bitcoin and other cryptocurrencies are legal in India.” Although cryptocurrency trading is illegal, the police have no legal mandate to stop it, and a study conducted by a group of 15 official bodies began working on a framework to regulate digital currencies in the country in 2013. Unlike neighboring Denmark, the Swedish regulator has publicly stated that Bitcoin is legal tender.

On September 4, 2017, the People`s Bank of China banned companies in the country from placing cryptocurrencies as a method of self-financing. [6] By removing bitcoins from double taxation policies, the government has also legalized bitcoin, claiming that it could be used as a currency. The legality of the use of Bitcoin and the services related to this currency may vary depending on the legislation of each country, province, municipality and other administrative entities and may be legal and illegal, depending on whether decrees have been issued in this regard, or as a result of the express decision to recognize or treat it as a currency, value, goods, etc. by a competent control authority in any of these materials. All over the world, there has been great acceptance and progress in terms of cryptocurrencies, many countries even have laws and regulations that help implement this type of virtual currency without too much risk to the country`s economy, but this is not the case for all countries as some have banned the use and investment with this type of currency. And there, for the specialist, lies one of the problems of interpretation of the use of crypto-currencies, because Mexican law stipulates that a virtual asset “is a representation of the value that is recorded electronically and used in public as a means of payment for all kinds of legal acts, the transmission of which can only be done electronically. Under no circumstances will currency that is legal tender in the state, currencies or other assets denominated in legal tender or currencies be understood as a virtual asset,” he said. Here, we`ve gathered the government`s position on cryptocurrencies and don`t limit ourselves to Bitcoin. The first country it considers legal tender is El Salvador, after the adoption of the Bitcoin law in September, supported by the Central African Republic, the second least developed in the world, which recently did the same. Other scenarios point to Bolivia, where the use of cryptocurrencies has been banned; in Venezuela, its use has been promoted with the regulation of the PETRO cryptocurrency.

In Argentina, the provinces have opted for different regulations, and in Mexico, for the moment, the interpretation applies in its use, moreover, financial institutions can only use it internally. Bitcoins are not legal tender in the strict sense, as they are not issued by the government`s monetary authority and are not legal tender. Platforms such as Bitso, Buda.com, Binance, Gemini will participate in this regulatory sandbox, the latter, with Bancolombia, has already launched a pilot plan for their customers` transactions with crypto-currencies. Russia`s deputy finance minister said regulators will try to legally recognize Bitcoin and other cryptocurrencies next year. The government is committed to fighting money laundering, which certainly encourages increased oversight and regulation, which ultimately leads to its legitimacy. Another country working on its own CBDC (Central Bank Digital Currency) is China. This may seem strange to anyone who has followed the recent advances of cryptocurrencies. The Beijing government has taken action against cryptocurrency operations in the country, including their trade and mining. Given that about 65% of Bitcoin mining takes place in China, this decision exacerbated the decline of cryptocurrencies at the end of May 2021. However, if you look closely, the picture changes. The Spanish government has confirmed that cryptocurrencies are exempt from VAT and Spain has lined entire streets with Bitcoin-enabled stores. Bitcoin is not recognized as legal tender and Bank Negara Malaysia does not regulate Bitcoin transactions.

In addition, some of the most cryptocurrency-friendly countries have taken a proactive approach to the problem. Some even offer tax breaks for cryptocurrencies. On December 6, 2013, the Croatian National Bank (NBC) held a discussion on the circulation of digital currencies and concluded that Bitcoin is not illegal in Croatia. The neighboring country has adopted a regulatory sandbox that will span the next three years, during which cryptocurrencies will be considered financial assets.