Bitcoin’s legal status varies from country to country and causes a lot of complications in financial and taxation systems. Bitcoin itself is not banned in most countries, but its status differs and is under different types of regulations. There are still some governments that have yet to establish any regulations and policies toward Bitcoin, but most governments have already came up with various types of policies. Bitcoin is rarely banned as means of payment between private parties, but it is common for the usage of Bitcoin to be banned for financial institutions and businesses. For example, Bitcoin is banned for Chinese financial firms and both Canadian and Indian banks. The main causes of Bitcoin being banned are governmental concerns about money laundering, terrorism funding and tax evasion performed with various cryptocurrencies, including Bitcoin.
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