California bitcoin legislation authorities are struggling to understand bitcoin, let alone make laws around it. Amid all this uncertainty, one question stands out: is bitcoin legal? How Can I Buy Bitcoin? How Does Bitcoin Mining Work?
How Do Bitcoin Transactions Work? How Can I Sell Bitcoin? How Does Blockchain Technology Work? What Can a Blockchain Do? What is a Distributed Ledger?
How Do I Use Ethereum? What is a Decentralized Application? How Do Smart Contracts Work? How Can I Buy Bitcoins? What Can You Buy with Bitcoin?
How do Bitcoin Transactions Work? What are Bitcoin Mining Pools? How Does Cloud Mining Bitcoin Work? What is the Difference Between Litecoin and Bitcoin? What is the Difference Between Public and Permissioned Blockchains? What is the Difference Between a Blockchain and a Database?
What Are the Applications and Use Cases of Blockchains? How Could Blockchain Technology Change Finance? What are Blockchain’s Issues and Limitations? How Do Ethereum Smart Contracts Work? Bitcoin is of interest to law enforcement agencies, tax authorities, and legal regulators, all of which are trying to understand how the cryptocurrency fits into existing frameworks. The legality of your bitcoin activities will depend on who you are, where you live, and what you are doing with it.
We are still early on in the game, and many legal authorities are still struggling to understand the cryptocurrency, let alone make laws around it. The answer is, yes, depending on what you’re doing with it. Read on for our guide to the complex legal landscape surrounding bitcoin. Most of the discussion concerns the US, where many of the legal dramas are currently playing out.
What are the concerns about bitcoin? Government agencies are increasingly worried about the implications of bitcoin, as it has the ability to be used anonymously, and is therefore a potential instrument for money laundering. In particular, law enforcers seem to be concerned about the decentralized nature of the currency. It voiced concerns that while US-based exchanges are regulated, offshore services may not be, and could be a haven for criminals to use bitcoin for illicit activities without being traced. Bitcoin was the only form of currency accepted on Silk Road, an anonymous marketplace that was only accessible over the TOR anonymous browsing network, and which was closed by the FBI in October 2013. Silk Road was commonly used to sell goods that are illegal in many countries, including narcotics.