It did not take long for crypto to catch the interest of millions of firms and individuals worldwide, which is why there are now more than 6,800 total cryptocurrencies for trading across the world. Unfortunately, not all countries smoothly accepted this decentralised currency. While some countries have entirely banned cryptocurrency, some are slowly regulating it in their economy. Because it has been a long time since crypto was introduced, millions are wondering if cryptocurrencies will be regulated in every country. To answer this, let’s check out the list of countries that have accepted and banned cryptocurrency transactions.
Cryptocurrency: A short overview
Cryptocurrency is a peer-to-peer digital payment system that enables anyone to send and receive payments anytime and anywhere. Compared to the physical money carried around in the real world, crypto payments exist digitally and are stored in an online database that contains transactions known as the blockchain. This encryption aims to provide users safety, security, and peace of mind, knowing that their transactions are kept private.
There are various ways to earn potential profits in this field, and one of them is crypto trading. However, it is not that easy, and to increase the chances of trading at the right places and following the right strategies, many traders prefer to use a platform that connects traders to trustworthy market brokers equipped with advanced tools to ensure you trade efficiently. As mentioned on one of these platforms: “With a variety of auto trading tools, charts, and market data, bitcoinmotion.tech can help you enter the financial markets of 2022.” What more could you wish for?
As the number of people engaging in cryptocurrency increases, so make the regulations around the world govern them. However, the crypto-verse is constantly evolving and keeping up to date with the crypto rules and regulations in different global territories is not easy. As mentioned, some countries do not hesitate to utilise crypto with the hopes of improving their economy and security, while some also do not support its use due to various reasons, such as crypto regulations to their laws.
Countries Where Crypto Is Legal
As cryptocurrency has grown popular and proven efficient, more businesses have decided to utilise it and improve their technologies. Here are some of the main countries that accepted cryptocurrency and are making a move to combat crypto market manipulation while still prioritising innovation:
Japan is the first country to utilise a legal system regulating cryptocurrency asset trading. It has been predicted that by the summer of 2022, this country will come up with a proposal regarding measures that ensure the stability of cryptocurrencies in a way that does not intervene with their country’s development. By accepting crypto early, it’s no wonder why Japan has one of the most developed and progressive regulatory regimes for cryptocurrencies.
In 2019, the French National Assembly adopted the Plan d’Action pour la Croissance et la Transformation des Entreprises, which will establish a framework for digital asset services providers. In 2021, these regulations were finalised and put into effect. This crypto-friendly country plans to urge the EU to adopt its regulatory framework for cryptocurrency.
Germany was one of the first countries to provide legal certainty to financial institutions, which allowed them to hold crypto-assets. The German Federal Central Tax Office considers cryptocurrencies as private money for tax purposes. This country is also leaning into innovation while taking into consideration the cost of security standards, financial stability, and monetary and other payment transactions.
The United Kingdom government and the UK Financial Conduct Authority (FCA) published complementary reform proposals to bring financial promotions for “quality crypto-assets” into the financial promotions regime. Crypto firms in this country are encouraged to register them before being able to operate in the country.
Canada considers cryptocurrency platforms to be money service businesses, which takes them under the purview of the Proceeds of Crime and Terrorist Financing Act. Like its southern neighbour, this country maintains a generally bitcoin-friendly mature.
The United States
The U.S Department of Treasury has been issuing guidance on Bitcoin since 2014 and has defined it as a convertible currency with an equivalent value to real currency. The US has a dual system of governance where different states can have different laws about cryptocurrency.
Following the confusion about whether or not Nigeria has banned crypto, one of the leaders of the crypto craze in Africa, Nigerian investors were relieved to deliver the news that the government allowed its citizens to trade crypto, but it remained banned in the banking sector.
Bermuda is also embracing the world of cryptocurrency and has a goal to have the best class digital asset regulation that can serve as a model for other jurisdictions.
Countries Where Crypto Is Illegal
While cryptocurrency is welcomed in various parts of the world, several countries are still wary of its volatile behaviour and decentralised nature. Here are some countries that are still yet to accept cryptocurrency.
China is still wary of cryptocurrencies and has repeatedly issued warnings to its citizens to steer clear of the digital asset market. Chinese officials have strict regulations on mining in the country as well as currency exchanges in China and overseas.
The State Bank of Vietnam has declared that the usage, supply, and issuance of Bitcoin and other cryptocurrencies are illegal as a means of payment and are subject to punishment of fines ranging from 150 million.
India is becoming increasingly hostile toward cryptocurrencies and has announced its plan to introduce a new bill to the Indian government. This bill aims to establish a new central bank-backed digital currency as well as to ban almost all cryptocurrencies.
Financial institutions in Colombia are not allowed to handle Bitcoin transactions. It's Superintendencia Financiera warned financial institutions in 2014 that they are not allowed to protect, invest, or manage virtual money operations.
Bolivia issued a complete ban on the usage of Bitcoin and other cryptocurrencies in 2014. The Bolivian Central Bank issued a resolution banning it and other currencies not regulated by a country or economic zone.
Will Every Country Regulate Crypto?
Cryptocurrency has quickly grown to be the most invested and valued since the introduction of Bitcoin. Though it started as an uncontrolled and regulated currency, it recently became part of different fields such as tax authorities, enforcement agencies and many more. With its growing popularity, some countries have considered it, while some are still wary of it.
One of the main reasons why many government countries are concerned about the usage of cryptocurrency in their countries is the anonymity of crypto transactions and how hard it is to track them. As of 2021, the number of countries regulating cryptocurrency has reached 103. This number started at one but eventually increased, which means that more and more countries are accepting cryptocurrency.
Despite cryptocurrency's disadvantages, its excellent benefits greatly outweigh the negative ones. The increasing number of countries accepting cryptocurrency just shows that more and more governments are starting to see its use and impact on a country’s economy and people.