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The illegality of a currency depends on how it is perceived and what makes it legal. It is illegal for a private body or individual to create a paper currency to be used by them since there is a central body that mint for the country globally. The cryptocurrency is treated differently because some countries accept bitcoins while others ban it's used. eg Bitcoin is legal in some countries while illegally in countries that banned them
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Just Because Cryptocurrency Isn’t ‘Legal Tender’ Doesn’t Make It Illegal
Central bank warnings about crypto assets may give the impression that cryptocurrency is illegal, especially since these entities often cite reasons as to why they’re uncomfortable with virtual currencies encroaching on their turf. But their assertions are often inaccurate, particularly when it comes to determining the legality of cryptocurrency.
