List of Countries that Legalize Bitcoin and Ban the Use of Bitcoin

Bittime - Since its launch in 2009, Bitcoin has grown from a financial experiment to an important part of the global economic system. 

However, adoption and regulation of these assets differs by country. Some countries have legalized Bitcoin as legal tender, while others prohibit the use of Bitcoin because it is considered a risk to their financial stability.

Countries that Legalize Bitcoin

Several countries have adopted Bitcoin with clear regulations to prevent abuse such as money laundering and tax evasion. Here are some countries where Bitcoin is legal.

1. El Salvador

El Salvador became the first country in the world to legalize Bitcoin and make this crypto asset a legal means of payment in September 2021. 

Businesses in the country are required to accept Bitcoin as payment along with US dollars. This move aims to increase financial inclusion and attract investment in the crypto sector.

2. Central African Republic (CAR)

In 2022, the Central African Republic followed in El Salvador's footsteps as a country that legalized Bitcoin and adopted this crypto asset as its official currency. 

This decision was taken to increase access to financial services for people who previously did not have access to traditional banking.

3. Bulgaria

Bulgaria is one of the countries showing great interest in Bitcoin. Many businesses in big cities such as Sofia and Plovdiv accept Bitcoin as a payment method. 

Infrastructure such as Bitcoin ATMs also continues to develop, making it easier for people to buy and sell this crypto asset.

4. Germany

Next, there is Germany is also a country that legalizes Bitcoin and allows private transactions to be carried out with this crypto asset. 

This country is also a center for blockchain innovation with many startups and companies operating in the crypto sector.

5. Swiss

Switzerland is also a country that has legalized Bitcoin, and is even known as "Crypto Valley" because its regulations are friendly towards blockchain technology and crypto assets. 

In Switzerland, Bitcoin has clear guidelines for its use, including taxation and trading. Many businesses in the country, from cafes to luxury boutiques, accept Bitcoin as a means of payment.

6. United States

Although Bitcoin is not a legal currency in the United States, its use is widespread and strictly regulated. 

The country classifies Bitcoin as taxable property, while other financial regulators oversee the trading and use of this digital asset.

7. Japan

Last, there is Japan, which has legalized Bitcoin, even became the first country to regulate Bitcoin through the Payment Services Act in 2017. 

Currently, Bitcoin is widely used for online and offline transactions in Japan making it one of the largest crypto markets in the world.

Countries that Restrict Bitcoin Use

Meanwhile, the following countries chose not to ban Bitcoin outright, but instead imposed certain restrictions on its use.

1. India

India allows Bitcoin trading but has strict regulations to oversee crypto transactions. The Indian government has proposed stricter measures to prevent misuse of crypto assets.

2. China

China banned trading in crypto assets in 2021, but individuals are still allowed to own Bitcoin. Even so, China remains a major player in the blockchain industry through its digital yuan project.

3. Russia

In Russia, Bitcoin and other crypto assets cannot be used as a means of payment, but individuals and companies are allowed to invest and trade them within established regulatory limits.

Read Also: List of US States That Will Establish Bitcoin Reserves 

Countries that Ban Bitcoin

Meanwhile, the following some countries have completely banned Bitcoin for economic, political or religious reasons.

1. Algeria, Morocco and Egypt

These North African countries banned Bitcoin for economic and religious reasons. The governments of these countries consider crypto assets a threat to the traditional banking system.

2. Afghanistan and Pakistan

Bitcoin is banned in Afghanistan and Pakistan due to concerns it could be used for money laundering and illegal financing. However, underground crypto trading activities still occur.

3. Bangladesh

Bangladesh banned Bitcoin on the grounds that the crypto asset could threaten the country's financial stability. However, the crypto community in this country continues to push for legalization and clearer regulations.

Also Read: Top 10 Cryptos and How to Choose the Best Crypto Assets for the Long Term 

Conclusion

That's a list of countries that legalize Bitcoin, limit its use, and completely prohibit the use of crypto assets. 

Some countries have recognized the benefits of Bitcoin and digital assets, while others are still skeptical or even ban them completely. 

So, for users of Bitcoin and other crypto assets, understanding the regulations in each country is very important to ensure compliance with applicable laws.

Read Also: Is it true that the Crypto Market will rebound after Trump stops tariff policies in Mexico and Canada? 

Bitcoin FAQs

What is Bitcoin?

Bitcoin is the world's first crypto asset and the largest crypto asset by market capitalization. Bitcoin was first created in 2009 by Satoshi Nakamoto, whose true identity until now no one knows.

How many Rupiah is 1 BTC?

Currently, 1 BTC is worth IDR 1,601,035,685 based on the Bittime market. 

1 BTC How much is USD?

Currently, 1 BTC is worth $97,859.57 according to Coinmarketcap. 

How to Buy Crypto with Bittime

Want to trade sell buy Bitcoins and crypto investment easily? Bittime is here to help! As an Indonesian crypto exchange officially registered with Bappebti, Bittime ensures every transaction is safe and fast.

Start with registration and identity verification, then make a minimum deposit of IDR 10,000. After that, you can immediately buy your favorite digital assets!

Check the exchange rate BTC to IDR, ETH to IDR, SOL to IDR and other crypto assets to find out today's crypto market trends in real-time on Bittime.

Additionally, visit Bittime Blog to get various interesting updates and educational information about the world of crypto. Find trusted articles about Web3, blockchain technology, and digital asset investment tips designed to enrich your knowledge in the world of crypto.

Reference

The App, What Countries Use & Accept Bitcoin? Where is Bitcoin Legal?, accessed February 5, 2025.

Coinmarketcap, Coinmarketcap Bitcoin Currency, accessed February 5, 2025.

Author: IPR