Home » IF NOBODY REGULATES OR CONTROLS THE BITCOIN, IS THIS A LEGAL CURRENCY?

IF NOBODY REGULATES OR CONTROLS THE BITCOIN, IS THIS A LEGAL CURRENCY?

by Sonal Shukla

Cryptocurrencies, in this case, the BITCOIN, are booming and represent the new business option for many people and technology startups, but to what extent is cryptocurrency legal?

We must first define what cryptocurrencies are and then their legality, which is not regulated in the same way in different countries. 

Although they call it virtual currency, it is not a currency as such; it is a digital medium of exchange, which is not identified as currency by lawyers since it is not printed by any State. Bitcoin is not recognized as money itself, but as “A MONEY SERVICES BUSINESS” that has an equivalent in fiat currency. So, if you want to trade and sell your bitcoins, visit https://q-profit-system.com/.

Uses and legality of bitcoin

Bitcoins are funds in the ordinary sense of the term; they can be accepted as payment for goods and services or bought directly from an exchange with a wallet. Therefore, they function as economic resources and are used as a medium of exchange and a means of payment.

Depending on the geographical location, the legality of BITCOIN differs substantially. Many countries do not make use of cryptocurrencies because they consider them illegal. Still, they are seen as investment tools or as a strategy to curb somehow the inflation that affects them.

While some countries have explicitly allowed its commercialization and handling, others have simply prohibited or restricted it.

In turn, various government entities have cataloged bitcoins in multiple ways. Therefore, the possible legality granted to bitcoin represents a significant advance, not only for crypto active but also for the entire digital market concept.

Bitcoin has been legally declared as an asset or merchandise, not currency, although the cryptocurrency perfectly complies with the properties that money must possess, its legal regulation as money is not defined in America (North and South), unlike other countries and Jurisdictions such as Japan, where the State officially recognizes cryptocurrencies as a payment method and the European Union, which has declared it as a currency, and not as a commodity, for tax purposes.

Fighting against inflation is the goal

Unlike fiat currency, where States determine the value of the currency through the issuance of money, no State controls the production of cryptocurrency, but the same natural persons can do it through mining. 

The cryptocurrency has controlled inflation in people’s credibility, its value is directly related to the abstract value given by the trust of each of the people who acquire, transfer, and undermine them. Therefore, it is determined by the number of cryptocurrencies that will be created and the speed with which this will occur.

If this is so, that natural persons are the ones who control its production and you can even mine cryptocurrencies from your own home or business, it is very important to determine is this legal? And the answer is simple; it depends on the country/government where you are.

So is BITCOIN Legal? A simple question to which anyone would expect only two possible answers: yes or no. Perhaps the question becomes more complex posed in these terms: is a currency that is not issued by any State or central bank legal?, in most countries, neither yes nor no. 

Due to their innovation, globality, and potential, Bitcoin and the rest of the cryptocurrencies tend to fall into a gray area in terms of legality.

Bitcoin and crypto assets remain in a loophole for positive legislation. It could be argued that the laws of most of the Central Banks of the world expressly establish that these institutions exercise, exclusively, the issuance of monetary species. 

Conclusion

However, as has been seen, Bitcoin and crypto-assets do not belong exclusively to the field of monetary species, since they have another classification.

Thus, before it could be a crime to issue cryptocurrencies, the authorities of each country should state what they understand by Bitcoin and what by crypto actives and what would be the consequences of their issuance. 

Meanwhile, since there are no binding and current laws that regulate the matter, Bitcoin conforms to that principle of Law according to which WHAT IS NOT EXPRESSLY FORBIDDEN IS ALLOWED.

This phrase represents the correct answer to the doubt of so many users or investors who have decided to leave their capital to the free flow of a digital currency whose volatility is unpredictable.

 

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