Keep Up With the Crypto-Crazy: An Updated List of Legalised Cryptocurrencies
Cryptocurrency has been gaining widespread attention and adoption as a means of payment and investment. However, its legality varies greatly from country to country.
In this blog, I will be compiling a list of countries and their stance on cryptocurrency for the year 2022. The list will provide insights into the legal frameworks, regulations and restrictions imposed on the use and trade of cryptocurrencies. It is important to keep in mind that the legal landscape for cryptocurrencies is constantly evolving, and this list is a snapshot of the situation as of 2022.
Why Should You Need to Pay Attention to Crypto-Governance
Most notably, there are concerns about the legitimacy of cryptocurrencies due to the absence of regulatory oversight and illegal uses of them. The negative effects of the absence of laws regarding cryptocurrencies have prompted the need for numerous new regulations. Without a properly regulated environment, investors are less inclined to show trust in cryptocurrencies.
With the introduction of Bitcoin, a decentralized digital currency that had several advantages in influencing the future of finance, cryptocurrencies gained popularity. Bitcoin is not the only cryptocurrency available, though. The popular perception of cryptocurrencies is that they are useful instruments for carrying out anonymous transactions between users anywhere in the world. However, the secrecy that comes with using cryptocurrencies fosters the prevalence of fraudulent activity. It’s interesting to note that in order to lessen the usage of cryptocurrencies for unlawful purposes, the nations where they are legal have implemented new rules inside their AML or CFT laws.
The Latest Countries Where Cryptocurrency Is Legalized
The LOC has acknowledged 103 nations for their initiatives in building crypto legislation and setting goals for businesses dealing with cryptocurrencies. The notable nations that have already accepted cryptocurrency are listed below.
- El Salvador
It is the first nation to adopt Bitcoin as legal money worldwide. The El Salvadorian cryptocurrency regulatory environment does, however, come with some restrictions. Recently, the nation unveiled legislation that exempt foreign investors from paying income or capital gains taxes on cryptocurrency transactions. - Germany
Germany’s unique cryptocurrency policy is a valid basis for its inclusion in this list. Germany sees cryptocurrencies as private money, in contrast to many other countries. People who have owned Bitcoin for more than a year are therefore immune from paying capital gains taxes. Numerous well-known blockchain companies, like EOS, have established bases of operations in Berlin. - Slovenia
Slovenia is a little nation in Central Europe that has recently come to the notice of the crypto community. Slovenia doesn’t charge miners any VAT and grants several tax deductions for cryptocurrency trade. - Canada
With a flourishing Bitcoin community, Canada has become a favorite travel destination for cryptocurrency users. Additionally, Canadian regulations imply that cryptocurrency businesses must register with FINTRAC, the Financial Transaction Analysis and Reporting Center of Canada. Blockchain businesses in Canada are supported legally by dependable legislation for their operations. - The Netherlands
The Netherlands has welcomed cryptocurrency and doesn’t make any exceptions in this case. The Netherlands’ compliance with the FATF is one of the intriguing features that make it a standout among nations that have legalized cryptocurrencies. - Malta
It is one of the most motivating instances of a nation where the use of cryptocurrencies is permitted, particularly given its progressive laws. Malta’s greatest selling point is how many cryptocurrency businesses, like Binance, have chosen to locate there. Tax relief is a key selling point for Malta as one of the nations that accept cryptocurrencies legally. - Switzerland
Switzerland has also taken a deliberate stance toward adopting cryptocurrencies by enacting liberal regulations that are suited for cryptocurrency investors and businesses. Additionally, it is one of the nations that offers the most tax advantages for using bitcoins. - Estonia
By luring top IT businesses, Estonia’s liberal regulatory climate for cryptocurrencies may ultimately benefit the country by modernizing its economy. It is one of the most popular options among nations that permit secure operations of cryptocurrency businesses without facing any legal issues. Likewise, Estonia is moving quickly to launch Estcoin, its own national cryptocurrency. - Singapore
With numerous legal options for blockchain and cryptocurrency enterprises, Singapore is the largest global financial hub in Southeast Asia. Furthermore, as crypto transactions are typically viewed as barter exchange, taxes are not applied to them. - Portugal
Portugal is the final nation to join the list of nations embracing cryptocurrency. For expert traders who want to avoid paying capital gains tax, it is the most dependable financial hub for cryptocurrencies. Portugal has also passed supportive legislation that promotes the use of cryptocurrencies.It is important to note that the licensing requirements for cryptocurrency businesses are subject to change and may vary depending on the specific circumstances of each country. It is always best to consult with local authorities and regulatory agencies for the most up-to-date information on licensing requirements for cryptocurrency businesses in a given country.
International Standards for Evaluating Crypto Regulations
Cryptocurrency laws play a crucial role in determining the status of digital assets in different countries. Some countries have enacted cryptocurrency legislation that creates a crypto-friendly environment, encouraging the use and trade of cryptocurrencies. In such countries, there are minimal restrictions on crypto transactions and individuals and businesses are free to use cryptocurrencies for various purposes.
On the other hand, there are countries that have implemented crypto restrictive laws, which limit the use and trade of cryptocurrencies. These laws may include strict regulations on crypto transactions, restrictions on the use of cryptocurrencies as a means of payment, or outright bans on the use of digital assets. The landscape of cryptocurrency laws is constantly evolving, and it is important to stay updated on the latest developments in this field.
Whereas finding the countries where using cryptocurrencies is entirely forbidden is easier. As of November 2021, nine nations had outright bans on cryptocurrencies, according to the U.S. Library of Congress. It includes Algeria, Bangladesh, China, Egypt, Iraq, Morocco, Nepal, Qatar, and Tunisia.
2022 & Beyond: What Does the Future Hold for Cryptocurrencies?
In conclusion, the regulatory landscape of virtual currencies and cryptocurrency taxes is constantly evolving and varies greatly from country to country. The licensing requirements for cryptocurrency exchanges and the legality of blockchain technology, Initial Coin Offerings (ICOs), cryptocurrency mining, decentralized finance (DeFi), and altcoins also vary depending on the jurisdiction.
As the adoption of cryptocurrencies continues to grow, it is important for countries to develop a clear and comprehensive cryptocurrency legal framework that balances innovation with consumer protection and the stability of financial systems. As the market for crypto-assets continues to mature, governments, regulators, and industry stakeholders must work together to create a stable and sustainable regulatory environment for cryptocurrency.
So what is your opinion on the current state of cryptocurrency regulations around the world?
