Cryptocurrency is gradually evolving from a niche asset for tech enthusiasts into a widely accepted payment method. It is used as an alternative to traditional bank transfers, deposits, and electronic money. However, cryptocurrency regulations vary significantly from country to country. While some nations fully legalize crypto transactions, others operate in a «gray area,» and some completely ban it. Let’s explore how to buy cryptocurrency and where you can use it for payments.
In Which Countries Is Cryptocurrency Banned?
There are two main groups of countries where cryptocurrency is prohibited. In some, crypto is considered a threat to the national economy, while in others, religious or political reasons dictate the ban. Below is a list of countries where cryptocurrency is illegal:
- Nepal – Cryptocurrency is completely banned, and several violators are already serving prison sentences.
- Bolivia – Crypto transactions have been outlawed since 2014, and all financial operations that are not government-controlled are prohibited.
- Bangladesh – The country banned all cryptocurrency transactions in 2014 to prevent money laundering. Violators face up to 12 years in prison.
- Ecuador – All cryptocurrencies, except for those controlled by the government, are illegal.
- Vietnam – Despite a law banning cryptocurrency transactions, digital coins are actively traded on the foreign exchange market. The law does not specify serious penalties for violations.
- Iceland – Crypto transactions and foreign currency trading are prohibited. However, Iceland still has several data centers for mining cryptocurrency.
- Algeria, Afghanistan, and Morocco – These countries prohibit cryptocurrency for religious reasons, considering it a speculative asset with no intrinsic value.
In Which Countries Is Cryptocurrency Legal?
- Switzerland – Since 2016, Bitcoin has been accepted for payments, and in 2017, the first cryptocurrency startups emerged. In some regions, crypto can even be used to pay utility bills.
- Germany – One of the first EU countries to legalize cryptocurrency. Individuals, banks, and private companies can use crypto for payments, mining, storing, and trading. Many retail stores accept Bitcoin.
- United States – Cryptocurrency has been legal in the U.S. since 2017 and is subject to taxation, including for investments and mining. The U.S. has the highest number of Bitcoin ATMs worldwide. As of January 11, 2024, the SEC has allowed the launch of exchange-traded funds (ETFs) tied to Bitcoin.
- El Salvador – Crypto has the same legal status as the U.S. dollar and is accepted for goods and services. The country has a dedicated crypto payment application.
- Italy – Italy leads the EU in Bitcoin transactions, with around 40 crypto ATMs and projects expanding Bitcoin payment systems. In 2019, Italians used crypto more often than Visa and MasterCard.
- Belarus – Crypto was legalized in 2017 under the «Digital Economy» law. It can be stored, exchanged, bought, and sold. The country launched its first crypto exchange in 2019 and an exchange service in 2020.
- Canada – While not officially recognized as legal tender, Canada has Bitcoin ATMs and retail stores accepting crypto. It ranks second globally in crypto ATM numbers. The Bank of Canada is working on its digital currency, «CADcoin.»
- Singapore – Cryptocurrency is legal and widely used, with strict regulations for businesses. Each year, crypto regulations tighten as the government seeks to minimize money laundering risks.
Other Countries That Have Legalized Bitcoin
- Malta – Crypto is a full-fledged financial instrument regulated by law. Citizens use it for everyday transactions.
- Norway – The government recognized cryptocurrency as a payment method in 2013. Since 2017, crypto transactions have been exempt from VAT.
- Estonia – Crypto can be used as an alternative payment method alongside traditional currencies.
- Czech Republic – Crypto transactions are tax-free, and legal crypto exchanges and ATMs are widely used.
- Spain – Bitcoin was legalized in 2014, and in 2016, miners were required to register, obtain licenses, and pay taxes.
- Japan – In 2017, the country implemented crypto regulations, requiring exchanges to comply with anti-money laundering laws and obtain licenses.
- Ukraine – In 2021, Ukraine passed the «On Virtual Assets» law, regulating cryptocurrency transactions. Ukrainians use Bitcoin and USDT for purchases in online stores.
- Philippines – All crypto exchanges operate under government licenses and are regularly audited. Crypto can be used for any transactions within the country.
- Argentina – In 2017, Argentina introduced crypto taxation laws. Since late 2023, crypto can be used for official contracts as a primary currency.
Countries Where Bitcoin Is Neither Fully Legal nor Illegal
- Russia – The government has yet to introduce comprehensive cryptocurrency regulations. In 2021, the State Duma passed a law on digital financial assets, defining blockchain, tokens, and transactions. A new legal framework is under development. As of November 1, 2024, mining has been officially legalized.
- China – While crypto is not entirely banned, restrictions exist on certain transactions. Banks cannot conduct crypto-related operations, but mining and selling digital assets remain legal, making China a significant crypto market.
- Thailand – The Thai central bank does not recognize crypto as a currency but allows Bitcoin exchanges for local currency (baht). Foreign currency exchanges involving crypto are prohibited.
- Tanzania – The Tanzanian central bank advises against using cryptocurrency, stating that the local shilling is the only legal tender.
- Israel – The government does not consider Bitcoin a currency. Instead, it is treated as a taxable asset.
Top 10 Countries Adopting Cryptocurrency in 2024
According to Chainalysis’ global crypto adoption index (September 2024), the top 10 countries embracing cryptocurrency are:
- India
- Nigeria
- Indonesia
- United States
- Vietnam
- Ukraine
- Russia
- Philippines
- Pakistan
- Brazil
Where Can Russians Pay with Cryptocurrency?
The number of Russian businesses accepting crypto remains limited. Most often, crypto is accepted by online platforms. Some classified ad sites allow users to buy vehicles with Bitcoin, such as Avito and Auto.drom.ru. A few restaurants and fast-food chains also accept Bitcoin.
To find locations accepting crypto, users can check Coinmap.org.
As of January 2025, over 30,000 businesses worldwide accept cryptocurrency, including ATMs, cafés, hotels, grocery stores, and fitness clubs.
How to Pay with Cryptocurrency in Any Online Store?
We offer a seamless way to pay for goods worldwide using cryptocurrency:
- You send us cryptocurrency.
- We process the payment in the currency required by the seller.
Learn more about this service here.
How to Transfer Cryptocurrency Internationally?
If you have funds in a crypto wallet and need to send money abroad, Nowall provides a simple solution:
- You transfer cryptocurrency to us.
- We send the equivalent amount in fiat currency (USD, EUR, JPY, etc.) to the recipient in any country.
For inquiries about international transfers or payments, contact our support team.
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