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"Warning of the National Bank of the Kyrgyz Republic on the spread and use of the "virtual currency in particular, bitcoins (bitcoin. 58 Israel Legal As of 2017, the Israel Tax Authorities issued a statement saying that bitcoin and other cryptocurrencies would not fall under the legal definition of currency, and neither of that of a financial security, but of a taxable asset. Traders must therefore identify the buyer when establishing business relationship or if the buyer acquires more than 1,000 euros of the currency in a month. The central bank is closely watching the development of bitcoin and plan to impose regulations in the future. Let us know in the comments section below. A b "China Bans Financial Companies From Bitcoin Transactions". Also read: Russias Central Bank Drafting Proposal to Classify Bitcoins as Digital Goods. Retrieved 21 September 2014. 91 The decision did not see bitcoin as currency nor bond under the current Banking Act and Financial Instruments and Exchange Law, prohibiting banks and securities companies from dealing in bitcoins. While some countries have explicitly allowed its use and trade, others have banned or restricted. 2 :Netherlands United Kingdom Legal As of 2017, the government of the United Kingdom has stated that bitcoin is unregulated and that it is treated as a 'foreign currency' for most purposes, including VAT/GST. Retrieved "IRS Virtual Currency Guidance : Virtual Currency Is Treated as Property for.S.