Bitcoin: Legal or Illegal?

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Bitcoin: legal or illegal?

Introduction:

Bitcoin is gaining confidence of the public as it is enabling faster, safer and securer transactions across the globe. People are increasingly changing their modes of payment by switching to virtual currencies like Bitcoin.
But as digitalised currencies are emerging from their niche origins and coming into the limelight, a fear is engulfing the public and other institutions as well.
Bitcoin is attracting a lot of attention of law enforcement agencies and policymakers since bitcoin is not backed by any central authority. Many central banks have already started cautioning the public against it due to its usage in illicit and illegal trade, activities and practices.
For instance: Due to its anonymous nature, cyber criminals are using online black markets like Silk Road.

So are there any consequences of using bitcoin? Is it legal or illegal?

Though a law hasn’t been passed to govern bitcoin transactions globally, it is self explanatory that the kind of activities a person carries out with bitcoin ascertains whether it’s legal or illegal. To ensure maximum protection to users their are various precautionary steps being taken by Bitcoin Wallet agencies, to prohibit the users from indulging in speculative activities.

What are the major fears pertaining to bitcoin?

Government agencies doubt bitcoin to be a potentially viable instrument for money laundering, since the people transacting through it are completely anonymous. Due to its decentralized nature, no central authority can intervene as well. Thus, some regulation is necessary to address the fears pertaining to bitcoin among the public.

Need: Bitcoin Regulation
The regulation of bitcoin completely depends upon the nature of transactions being carried out with them. If bitcoin starts being used for illegal activities on a larger scale then there will be a need to regulate bitcoin.
But regulators and the digital currency industry shares many perspectives and topics that must be considered. Thus, Its regulation can vary from country to country as the financial regulators share different views and opinions.

Conclusion:

Bitcoin rules, procedures and terms of use have not been written down in the books of law. But some countries have already started using this as a medium of exchange. It is certainly not illegal to deal in bitcoins unless it is being used for speculative activities.

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