Is Bitcoin Trading Legal?

The legality of Bitcoin trading depends on the jurisdiction you are in. In mainland China, Bitcoin trading is illegal, and in many other countries and regions, Bitcoin trading is legal. For example, in the United States, Canada, Japan, Singapore and other countries, Bitcoin is regarded as a virtual commodity or asset that can be legally held and traded.

#The legality of buying and selling Bitcoin transactions depends on your jurisdiction.

In mainland China, Bitcoin trading is illegal. In September 2021, ten departments including the People's Bank of China issued the "Notice on Further Preventing and Dealing with Speculation Risks in Virtual Currency Transactions" (Yinfa [2021] No. 237), which clearly prohibits financial institutions and payment institutions from providing services for virtual currency transactions. It also requires domestic virtual currency exchanges and overseas virtual currency exchanges to provide services to Chinese residents.

According to the notice, virtual currency trading activities involve the following risks:

• Virtual currency prices fluctuate violently, which can easily lead to speculation and damage the legitimate rights and interests of investors.

• Virtual currency transactions can easily be used for money laundering, terrorist financing and other illegal and criminal activities, endangering financial security and social stability.

Therefore, the Chinese government has taken measures to ban virtual currency transactions in order to maintain financial order and social stability.

In many other countries and regions, Bitcoin trading is legal. For example, in the United States, Canada, Japan, Singapore and other countries, Bitcoin is regarded as a virtual commodity or asset that can be legally held and traded.

The following are the laws and regulations on virtual currency transactions in some countries and regions:

• United States: The U.S. Securities and Exchange Commission (SEC) treats Bitcoin as a security , and supervise virtual currency trading platforms.

• Canada: The Canadian government treats Bitcoin as a commodity and levies a Goods and Services Tax (GST) on it.

• Japan: The Japanese government regards Bitcoin as a payment method and regulates it.

• Singapore: The Singapore government regards Bitcoin as a virtual asset and regulates it.

If you want to buy or sell Bitcoin, be sure to understand the laws and regulations in your jurisdiction to avoid breaking the law.

The following are some legal and regulatory resources on Bitcoin transactions:

• "On Further Preventing and Dealing with the Risks of Speculation in Virtual Currency Transactions" issued by the People's Bank of China and other ten departments Notice》: https://interface.sina.cn/pc_to_wap.d.html?ref=https://finance.sina.com.cn/money/forex/forexroll/2021-09-24/doc-iktzscyx6122019. shtml

• U.S. Securities and Exchange Commission (SEC) regulation of virtual currencies: https://b2broker.com/zh-hans/news/how-sec-regulation-will-change- crypto-market/

• The Canadian government’s laws and regulations on virtual currencies: https://www.fx168news.com/article/99

• The Japanese government’s laws and regulations on virtual currencies: https://www.finlaw.pku.edu.cn/jrfy/gk/2018_jrfy/2018nzd98j/271076.htm

• The Singapore government’s regulations on virtual currencies Currency laws and regulations: https://foresightnews.pro/article/detail/54860

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