Is Bitcoin banned in China?
While cryptocurrency is banned in mainland China and there are strict controls on capital movement across the border, people are still able to trade tokens such as bitcoin on crypto exchanges such as OKX and Binance, or through other over-the-counter channels.
Despite its use for buying goods and services, there are still no uniform international laws that regulate Bitcoin. Many developed countries allow Bitcoin to be used, such as the U.S., Canada, and the U.K. Several countries, including China and Saudi Arabia, have made it illegal to use Bitcoin.
In 2013, China restricted financial and payment institutions' involvement with Bitcoin. In 2017 China famously banned initial coin offerings, or ICOs. China also made clear that virtual currency exchanges were no longer welcome to openly operate there.
The Chinese authorities then and now view decentralized digital currencies as more harmful than useful. From Beijing's perspective, cryptocurrencies empower non-state actors in the financial system in a way that that they believe aggravates systemic financial risk.
The blockchain-backed digital currency project, which the People's Republic of China has been working on for seven years, has finally been completed. This digital currency introduced by the People's Bank of China (PBOC) is called as Digital Yuan.
An even more extensive crackdown came in 2021. This document, signed by 10 Chinese official bodies, has a wide range of restrictions. It says that virtual currency does not have the same legal status as fiat currency. In other words, Bitcoin is not legal tender.
Ghana, Lesotho, and Sierra Leone has bans, as do Egypt, Libya, and Morocco. In Latin America, Bolivia's Financial System Supervision Authority issued a resolution in 2014 prohibiting the use of Bitcoin and other digital currencies, citing a lack of consumer protection and the potential for money laundering.
In July 2020, Vladimir Putin signed a regulation on digital financial asset (DFA) transactions that legalizes cryptocurrency transactions but prohibits their use as payments for goods and services. Russian banks and exchanges can be operators of DFAs if they register with the central bank known as the Bank of Russia.
Satoshi Nakamoto, the pseudonymous creator of Bitcoin, is believed to own the most bitcoins, with estimates suggesting over 1 million BTC mined in the early days of the network.
Is cryptocurrency legal in Japan? Yes, cryptocurrencies are legal in Japan. The Payment Services Act defines “crypto-assets” as payment methods that are not denominated in fiat currency and can be used to pay unspecified persons. There are no restrictions on owning and investing in cryptocurrencies.
What is China warning about bitcoin?
Chinese state media has persistently tried to dissuade people from engaging in cryptocurrency-related activities, as authorities cited risks of capital flight and financial instability.
In 2021 the Chinese government imposed sweeping bans on numerous crypto-related activities, effectively making cryptocurrency illegal in the country. Oddly, the possession of and peer-to-peer (P2P) trading of digital assets like BTC or Ethereum (ETH) weren't outright banned, and so crypto activity seemed to continue.
Traders in South Korea, China and other Asian countries are responsible for roughly 70% of bitcoin trading volumes, much like they were in 2021 when bitcoin last hit such heady highs, according to crypto exchange data from The Block.
December, 2013 (BTC value $900): The People's Bank of China (PBOC) prohibits Chinese banks from engaging in Bitcoin-related business, although individuals can still trade.
Bitcoin was created by an anonymous person or group using the pseudonym Satoshi Nakamoto. Nakamoto published a whitepaper titled "Bitcoin: A Peer-to-Peer Electronic Cash System," outlining the concept of a decentralized digital currency.1 The true identity of Satoshi Nakamoto remains unknown to this day.
As of March 2024, bitcoin was legal in the U.S., Japan, the U.K., and most other developed countries. In general, it is necessary to look at laws in specific countries. In the U.S., the IRS considers bitcoin and other cryptocurrencies property, issuing appropriate tax treatment guidelines for taxpayers.
Bitcoin Is Used in Illicit Activities
Bitcoin's network is pseudonymous, meaning users are identified only by their addresses on the network. It isn't easy to trace the provenance of a transaction or the identity of an individual or organization behind the address.
Bitstamp is a versatile crypto exchange that caters to a wide range of users. Some investors consider it to be the best exchange in China.
Governments Holding the Most Bitcoin
Governments across the world own an estimated 565,749 BTC, representing 2.69% of the total supply. The Chinese government reportedly holds 194,000 BTC that was recovered from the Plustoken scam in 2019. Members of the Ukrainian government privately hold roughly 46,351 BTC.
Known for her innovative investment approach, Cathie Wood predicts Bitcoin will surpass $1 million sooner than her previous estimate of 2030.
Is Bitcoin a bad investment?
Investing in Bitcoin cryptocurrency has its pros and cons. While its transactions are relatively secure, it's also prone to volatility, with large dips and spikes in price. Editorial Note: Intuit Credit Karma receives compensation from third-party advertisers, but that doesn't affect our editors' opinions.
According to the Bitcoin research and analysis firm River Intelligence, Satoshi Nakamoto, the anonymous creator behind Bitcoin, is listed as the top BTC holder as of 2024. The company notes that Satoshi Nakamoto holds about 1.1m BTC tokens in about 22,000 different addresses.
In Canada, cryptocurrencies are legal. They are not, however, considered legal tender. So, while individual businesses can choose to accept cryptocurrency at their own risk, the relatively more formal CRA won't accept it as a form of payment for your taxes. However, everyone and anyone can legally purchase crypto.
Mexico stands out as a country actively regulating crypto exchanges, requiring AML compliance through registration and reporting. Bitso, a Mexican crypto exchange, positions itself as the first fully regulated exchange in Latin America, operating with permits and following KYC checks.
For the third year running, Changpeng Zhao, founder and former CEO of crypto exchange Binance, is crypto's wealthiest person. Despite pleading guilty to U.S. money laundering charges in November, CZ, as he's known, is now worth an estimated $33 billion, up from $10.5 billion last year.
