Is It Legal to Use Bitcoin in Ireland?
Without a doubt, bitcoin is the biggest cryptocurrency in the world, and understandably so. Its pervasive usage across the globe and convenience of use make it the most preferred digital currency by crypto holders.
However, its legality varies significantly from one country to another. Given how it draws investors from every corner of the world, it’s not surprising that its legality is a controversial topic.
Regulators and governments in a couple of nations do not embrace it as an asset. And as such, they have outlawed it outright. If you live in Ireland, you might be wondering if your country is on the list of nations that have banned bitcoin.
Is it legal to trade with bitcoin in Ireland? Read on as we’ll provide a detailed answer to this query in the following post.
Bitcoin’s legal status in Ireland
The short answer to the topic question is a resounding yes. It’s completely lawful to invest or trade using bitcoin in Ireland.
Over the years, the Central Bank has continually issued warnings relating to investing in crypto-assets like bitcoin. But, it hasn’t specifically prohibited citizens from partaking in the same.
Also crucial to note is that Ireland’s government has not come up with any bespoke financial regulatory body for controlling cryptocurrencies. So for the most part, there aren’t any laws or regulations governing crypto trade.
This can be seen as a good thing or a bad thing. On one hand, crypto enthusiasts have the right to invest freely in the crypto industry.
But on the other hand, the absence of regulations also puts crypto traders at risk. If anything were to happen to their investments, no one can be held accountable.
While there may not be any rules governing bitcoin and other digital currencies in Ireland, you’re still required to pay the taxman his dues.
The Revenue Commissioners of Ireland mandates every crypto holder to pay taxes and report bitcoin transactions in their tax return documents.
How to get started on bitcoin in Ireland
Now that you know bitcoin is legal in this country, you might be thinking of venturing into the crypto world. But before you do, here are a couple of pointers to keep in mind.
Learn as much as you can
The thing about bitcoin is that learning all the ropes can be a little difficult. Sure, it has the highest potential for profits, but that does not come easily. You need to invest time into learning as much as you can about the digital currency.
On a more positive note, resources to help you learn about bitcoin are readily available. A simple search on the Internet reveals hundreds of websites, all highlighting information to enlighten you on the same.
Find reputable platforms
Apart from familiarizing yourself with the ins and outs of the crypto industry, be careful when picking the platform to trade in, especially when it comes to buying bitcoin.
The last thing you want is to lose your hard-earned money to a scam or an entity purporting to be a genuine crypto dealer when they aren’t.
To help you get started right, here’s a list of reputable crypto-trading platforms around the world, but are also available in Ireland:
Brace yourself for volatility
Unlike ordinary currencies, cryptocurrencies are quite unstable. To put this into perspective, let’s consider bitcoin’s price. At the beginning of 2021, bitcoin’s price was around $34,000 and by March, it had skyrocketed to more than $58,000. At the point of writing, it’s trading at $35,364.
What this means is that you should always be prepared for the likelihood that you’ll incur losses. Therefore, be careful when making decisions relating to your investments and keep an eye out for market changes.
Ireland is one of the countries that has embraced the crypto industry with open arms. Consequently, citizens are free to use bitcoin and other digital currencies in any way they choose.
That said, the tax authority requires you to pay tax on all your bitcoin transactions and report them accordingly in your tax return forms. Moreover, investing in this sector requires a bit of due diligence on your part. So learn as much as you can before venturing into it, and always prepared for the risk of incurring losses.