Is Bitcoin mining legal or illegal?

The most lucrative asset of all cryptocurrencies, Bitcoin has witnessed a steady influx in the rate of miners over the last decade. BTC is estimated to touch $100,000 by the final quarter of 2022, offering possibilities of incredibly high ROI for miners. Bitcoin mining is the process of solving complex mathematical equations to validate fresh transaction blocks in the Bitcoin blockchain. When a miner is able to solve the puzzle, the Bitcoin blockchain rewards him/her with new Bitcoins. However, the unregulated nature of the crypto industry has led to questions about the legitimacy of Bitcoin mining. So, is Bitcoin mining legal or illegal? Well, the answer is both Yes and No, depending on the specific country where you choose to execute the mining process. Check out more at

The post below aims to clear the confusion about the legitimacy of Bitcoin mining in the contemporary global crypto scene.

But before getting into that discussion, let’s have a snapshot of some of the crucial facts and figures about Bitcoin mining-

  • The U.S is currently the global leader in Bitcoin mining, commanding the highest hashrate
  • While China used to the #1 rank in Bitcoin mining, the country has plummeted to the #2 rank now (despite Beijing’s official ban on cryptos), after banning crypto in September 2021
  • Kazakhstan used to hold the #2 rank in Bitcoin mining till the middle quarter of last year
  • Russia holds the #3 rank in Bitcoin mining
  • It takes 10 minutes to mine 1 Bitcoin (on an average)
  • 90% of Bitcoins have already been mined out
  • Bitcoin mining rewards reduce by half after every 4 years
  • As of 2022, the current reward for Bitcoin mining is 6.25 BTC

Legality depends on geographical location

The global Bitcoin world is divided in its opinion about the legitimacy of Bitcoin mining. So, if you are asking about the legal status of Bitcoin mining, take account of the specific geographical location (and relevant laws) of a nation where you are planning to execute the mining process. Good thing is, as of June 2022, the number of countries that have made Bitcoin mining illegal is way less than the countries that allow it.

Having said that, there are some countries that might not have imposed a legal ban on BTC mining- but also have not given the process an official legal status through an Act of law.

Countries where Bitcoin mining is legal

The U.S.A

Based on the facts mentioned above, it’s clear that the United States of America is friendly towards Bitcoin mining. Best American States for Bitcoin mining are Oklahoma, Tennessee, and North Dakota. All the 3 States assure low energy costs as well as low cost of living.

Wyoming and Texas are two other significant hotspots of Bitcoin mining in the USA. Major reasons behind the country’s rise in the BTC mining sector are its easy access to eco-friendly renewable energy as well as reduced energy costs.


Canada is friendly to Bitcoin mining activities. The country has tried to bring some basic degree of regulation in the cryptocape to prevent crypto frauds. For example, the crypto exchanges operating in the country fall under Canada’s AML and CFT laws.


Russia, while usually a massive hotspot for BTC mining and crypto, is currently in a dilemma about its stand in the crypto scene. At the start of 2022, Russia was almost determined to ban BTC. But, after a month, the country announced the release of a new crypto bill that eliminated banning speculations but introduced a bunch of regulations in the Russian crypto scene.


BTC mining is considered to be legal in Down Under. Also, crypto assets are taxable in the country as they fall under the CGT.


The U.K. allows mining of Bitcoin and other cryptocurrencies.

European Union

The EU has not allowed a ban on Bitcoin mining. Rather, a large section of the continent practices Bitcoin mining. Major Bitcoin mining hotspots in the EU are France, Germany, Denmark, Spain, etc.


Japan is another major hotspot for Bitcoin mining.


Africa is divided in its decision about the legitimacy of Bitcoin mining. A good lot of African countries, like Nigeria, Ghana, Kenya, Congo, Central African Republic, practice BTC mining on a large scale. However, there are some African nations like Egypt that do not accommodate BTC mining.

Countries that have accepted BTC as legal tender

Two countries, El Salvador and Central African Republic, have not only made Bitcoin mining legal but have also embraced the cryptocurrency with the status of legal tender.

Other countries where BTC mining is legal

  • Israel
  • Kazakhstan
  • Mexico
  • Barbados
  • Bulgaria
  • Cayman Islands
  • Belgium
  • Antigua & Barbuda
  • Chile
  • Finland
  • Dominica
  • Croatia
  • And more

The question mark with India

Crypto’s legal status with India is still a big question mark. Radiationally, RBI had imposed a ban on cryptocurrencies. As of 2022, India government’s stance towards crypto has comparatively softened down- the government has also levied tax on crypto income. However, the country is yet to pass any specific regulation regarding crypto usage and mining.

Irony is, India currently holds the #1 rank in the number of cryptocurrency owners globally. In regard to Bitcoin mining in India- well, there is no specific law that has banned the process in the country.

Countries where BTC mining is not legal or banned

  • Vietnam
  • China
  • Nepal
  • Algeria
  • Tunisia
  • Egypt
  • Pakistan
  • Bangladesh
  • Qatar
  • And so on

Wrapping up

If you are looking to take part in Bitcoin mining, the first thing is to ensure that your country allows Bitcoin mining- or at least has not banned BTC mining. 

If your country allows, you can engage in Bitcoin mining in two major ways. One is through your own independent set up of mining rigs like ASIC. These are dedicated mining hardware devices that are especially developed for crypto mining. But, setting up an ASIC rig as well as operating and maintaining is going to be an exorbitant affair.

The other option is to sign up with a BTC mining pool. Mining pools allow different miners to collaborate and solve the computing problem together. Thus, in a mining pool, you will have fellow miners to solve the problem with you. This collaborative effort heightens the chance of solving by a great extent. The reward gained will be distributed among all the miners who have participated in the pool.

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