One of the first questions anyone who's experiencing the crypto space for the first time finds themselves asking is: is Bitcoin legal? This is natural since cryptocurrencies are the world's newest and, technically, most complex asset class.
In the most basic sense, the answer to the above question is: yes.
More specifically, however, it depends on where you live and how "legal" Bitcoin is.
Is Bitcoin legal in the EU?
Generally, in the EU, Bitcoin is legal, though its exact legal definition varies, often on a country-by-country basis. For example, Denmark treats it as legal but has publicly stated that Bitcoin is not a currency and it will not regulate it as such. Italy, on the other hand, merely treats it as legal and chooses to keep its hands off of any Bitcoin use by "private individuals." For the most part, the EU countries that have made any sort of detailed legal determination on Bitcoin are France, Luxembourg, Poland, Slovakia, Germany, the Czech Republic, Slovenia, and Austria.
The consensus between these member states is that Bitcoin is effectively tax-free per a 2015 EU court ruling. Beyond that, the specific stances of each member state vary from general acceptance of Bitcoin usage and trading to strict regulation of all Bitcoin-related activities.
Is Bitcoin legal in Norway?
That being said, since we operate in Norway, we're well aware of and compliant with Bitcoin's legal status in Norway. Currently, by Norwegian law, Bitcoin is defined as an asset and not explicitly as money. Bitcoin profits are taxed.
Since we at NBX follow regulations closely, you can rest assured that you're trading in a trustworthy environment where your funds are always safe.
Is Bitcoin Legal Outside of Europe?
Generally, it is.
In the USA, for example, Bitcoin is generally treated as property, while just over the northern border in Canada, Bitcoin's treated as more of an asset.
Essentially, the rest of the world follows this pattern, with the legal definitions of Bitcoin varying widely on a country-by-country basis, so if you live anywhere outside of Europe, the best thing to do is follow the same rule we've shared above. Search Bitcoin's legal status in your country and follow whatever that is based on your applicable financial authority.
The article does not constitute legal advice. Check with your local financial authority on exactly how Bitcoin is regulated in your country.