Is Bitcoin Legal in America? Know the Facts!
America was one of the first countries to recognize Bitcoin as a legal currency back in 2013. The US treasury classified Bitcoin as convertible virtual currency. Bitcoin was not very popular back then but still, Americans were the first to adapt to this technology. Further, in 2015 trading futures and commodities Commission America declared Bitcoins as a commodity. In turn, giving it full fungibility.
The use of Bitcoin in America is largely legal and there are several ATM machines to cater bitcoin conversion to Fiat. In addition, there are several exchanges responding to the demand for people to buy Bitcoins in America. Most of the biggest exchanges in terms of volume are located in the USA such as Coinbase and Bittrex.
Even though the largest fiat volume comes from Chinese Yuan or Japanese and Korean Yen, United States dollar still boasts a large volume being traded on popular Cryptocurrency exchanges. In addition, Bitcoin to United States dollar is one of the most popular trading pairs for Bitcoin since the currency came into Inception.
In broad terms, America is friendly towards Bitcoin And cryptocurrencies. However, there is strict regulation to prevent anti-money laundering in many businesses working in cryptocurrencies. For this, it is compulsory for them to register with the US Financial Crimes Enforcement Network (U.S. FinCEN) as a money services business.
It is also obligatory for businesses to design an anti-money laundering policies and adhere to Know Your Customer (KYC) policies. Besides, they are also responsible to report a suspicious transaction to U.S. FinCEN and to keep appropriate records of monetary activities.
Bitcoin Legal In America: 2018 and Onwards
The supreme court of America mentions Bitcoin in 2018 as changing the definition of money. Before the money exists in physical forms such as plastic cards or Fiat currency. In contrast, Bitcoin changed the monetary definition of currencies. Bitcoin and other cryptocurrencies are legal tenders in the jurisdiction of America.
Further, investors are also required to pay taxes on their gains. Although there are not a lot of merchants accepting Crypto in their stores and out of 500 big corporations in the United States and only three of them accept payment in cryptocurrencies, but the numbers are gradually and slowly increasing.
Similarly, the New York Department of Financial Services is responsible to issue licenses to companies to operate and develop products around cryptocurrencies originating within NY state. At the time of writing this post, many Crypto projects have already acquired this license including Ripple, Xapo, and others.
Bitcoin makes people closer to financial Independence and freedom. Many states within America are also questioning for proper legalization of cryptocurrencies as this seems a better and healthier financial alternative.