Cryptocurrencies are the biggest trends in present and for future financial enhancement. Specialists have analyzed its growth in 2020 expected to be flourished and the traders will only be welfare from its market growth. Cryptocurrencies uniqueness lies beneath the decentralized management program. Countries that are forwarded to adapt new technologies are now keen to discover the blockchain technology and cryptocurrencies.
However, there are many countries; those are still in the dilemma of accepting the currencies. Countries fear from currencies’ digitalization may be graspable due to some possible reason. But besides those negative aspects, cryptocurrencies are going to make more billionaires in the coming decades.
Let’s find out the fear behind the banning of cryptos:
As spoken, the possibility is less but still consists of substantial values to restrict the use of these virtual currencies. So, why are these countries don’t allow any cryptocurrencies to enter in their economic market?
· Afraid of losing power : The very first nature is the system of the ordinance which also a pregnant property of cryptocurrencies, decentralized management. It is a fact that every country runs by its government and to have the economic control of the country, the government accepts only their fiat currencies. However decentralized cryptocurrencies are nothing but a threat for countries ordinance system. Central body fears that maybe their power over fiat currencies be vanquished by virtual currencies.
· Illegal action: If the cryptocurrencies don’t come under the strong rule of regulation then these may be utilized for illegal activities like drug dealing or terror funding etc. This occurs duly the protection protocol of blockchain technology. As the users’ identity cannot be identified — this influences the more outlaw actions within crypto-network.
These are the major causes behind that may behind the continuous rejection of cryptocurrencies of some counties. Countries that hold cryptocurrencies legalization are stones in the path of cryptocurrencies’ globalization. So how do these issues can be solved?
· Solution 1: every country should come up with a better law to control the regulation of these cryptocurrencies.
· Solution 2: if countries could find a way to drag the cryptocurrencies regulation beneath jurisdiction then the theory of illegal activities will be less.
Now, it is better to understand that one day is not sufficient for any entity to be the change. Time is the biggest factor who has witnesses change either slowly or fast.
Crypto Legal & Illegal Countries List :
For cryptocurrencies legalization, it takes time because of its nature. However, slowly and soon all countries will find a path to be part of this digital evolution of money.
But now let’s focus on which continent has accepted crypto with an open hand and which continent is still struggling to be in trend. Here, in this blog, we will talk about major countries whose economic status does affect global economic growth. We will also discuss how these counties deal with the cryptocurrency.
Asia:
Being the largest continent of the world, Asia contributes to the world’s some of the leading countries in the economic sector like China, Japan, and Russia etc. It is not a surprise that these top lead countries’ ideology towards cryptocurrencies must possess effects on cryptocurrencies stance.
China: Starting from the bitcoin’s rise, China has taken a researchable step towards cryptocurrencies steps. 2013, China’s legal regime issued warning for public interest not to trust on the virtual assets and stops all possible connection of dealing with bitcoin.
Still, it was hard to control the flow of other digital currencies. So, china tried to stop them by seizing the ICO (initial coin offering). In 2017, a joint regulator team announced the circulation of digital coins or tokens in the market is illegal. However, three years of study by china’s regulatory bodies result in a complete ban of all existing cryptocurrencies. The statement stated that the regulatory governance of China doesn’t find digital currencies suitable for accepting payment exchanges or any other digital trading.
Japan: Reckon a technical giant, japan is one of the fastest grown developed countries after World War 2. Regulation of cryptocurrencies took place in Japan on April 1, 2017, whose act was amended in 2016.
As the regulation has taken in action in Japan, Payment service Act allows only registered company with the Financial Bureau of Japan can trade with cryptocurrencies in Japan. For foreign companies, it is stated that they must have a spokesperson and an office in Japan to do business.
Financial Services Agency (FSA), will be reported annually by companies about the transactions. It is said to have the users’ identity of every registration to control over the scam in crypto-exchanges.
India: After the Years of study RBI, Reserve bank of India, stated a clear stance on cryptocurrency and its exchanges in India. The report is not benefited for crypto-trader. A draft has been submitted to the parliament, stated any trading related to cryptocurrency in India is illegal. Any dealing with any existing cryptocurrency is a punishable offence which will lead to 10 years of imprisonment or 25 crores fine. This draft clearly shows the fear of accepting new technology of Indian government risking multiple future aspects of trading.
23 July 2019 when the report was submitted there was another view of government proposed, relief the tension a little. The government wants to launch a regulated, centralized cryptocurrency to go with the trend.
Russia: One of the topmost Asian, and world’s leading country, Russia is still conducting regulation of cryptocurrency, smart contract, token etc. In July 2019 a draft has submitted to trail the cryptocurrencies in Russia under law.
Africa:
Africa is known for its geographic diversity and a controlled natural ecosystem. However, African countries are considered as an underdeveloped or developing country. Though the educational status of the country is not flourishing for past centuries, the trading does not stop there. Cryptocurrencies have become one of the largest trading platforms in Africa. According to google trend, Bitcoin search is highest in African countries.
South Africa: A legal draft that has been issued to state the only government body can issue currencies whether fiat or virtual. Decentralized cryptocurrencies should not be used as fiat money. Though the law was unclear about the banning it reported that cryptocurrency trading in South Africa was an illegal approach. However, on April 6, 2018, the government launched a paper where cryptocurrencies come under normal currency taxation. This act may lead to complete legalization of cryptocurrencies in South Africa.
Nigeria: Nigeria’s stance was very clear on cryptocurrency in 2017 by The Central Bank of Nigeria. The Central Bank of Nigeria declared that Nigerian’s government cannot regulate the cryptocurrencies and the businesses related to it as it is not baked by the government. Any entity that is originated by the government comes under the government’s regulation apart from that nothing will be possible to control. Latter a committee had established to study the cryptocurrency, and its trading which is still under scrutiny.
Zimbabwe: Country released a statement which declares Cryptocurrencies are not regulated by Government of Zimbabwe or reserve bank of Zimbabwe, though any risk relating cryptocurrencies will be on user’s hand. Illegal activities or terrorism are subjected to punishable offence according to the government of Zimbabwe.
North America:
A country that is entitled as the world’s one of the powerful countries, the USA comes to this continent. Apart from that, the USA’s USD is a leading currency used as the world’s trading exchange makes the USA also an economically leading platform. Other countries in North America have developed in the country in almost every sector.
United States of America: The Birth house of Bitcoin, USA witnessed the growth of Cryptocurrencies since 2008. From the economic fall that subjected to the main reason for decentralization currency, the USA offers a major platform of growth of these currencies. From 2013, Bitcoin and other cryptocurrencies are legal as well as they are registered with U.S.FinCEN and ensue the all regulatory factors regarding cryptocurrencies.
However, a concern had raised in 2016 where proper and defined regulation of cryptocurrencies must be enforced in the USA according to the Supreme Court of the United States.
Canada: In Canada, trading is legal however the cryptocurrency system cannot merge with banks. This result in the partial legalization of cryptocurrency in Canada. Canada’s Cryptocurrency exchanges must fall under the Canadian crypto-regulatory law but for foreign exchange services, it is not applicable unless they have Canadian users.
Mexico: Mexico’s Fintech Law allows cryptocurrency trading as a virtual asset from 2017. But Mexico’s Central Bank launched a new regulation act in 2018, where it created some characteristics of crypto-farm. Those are ensuing the facts declared by the government being considered as legal in Mexico.
South America:
Continents offer a perfect blend of urbanization and wildness of nature. Amazon, Atacama, Angel Falls, Andes etc. make South USA a desirable destination. Consisting of 12 countries South USA has much system impact on the global forum.
Brazil: The largest country in South Africa, Brazil is also one of the biggest trades in cryptocurrency. Earlier Brazil doesn’t have any laws against cryptocurrency but ceaselessly awakening the public to know the risk behind the crypto-trading. Recently, G20 Summit 2019, Brazil has prepared a well-regulated system that has to be adopted by the companies within 2021 those wish to do business.
Ecuador: Ecuador does not permit any legal trade under the law scheme of 2015. It had launched an alternative electronic money system that services along with the transaction of money directly to local fiat currencies.
Argentina: Cryptocurrencies is an envisaging as currency however it does not have any legal alliance according to National Constitution of Argentina. Argentina’s civil Code may weigh the crypto-assets as goods and allowance have been provided for services of cryptocurrencies as goods exchange.
Europe:
Europe a continent known as the biggest trader from ancient history is also howling in the present world too. Almost every county in Europe provides a legal allowance of all cryptocurrencies to trade in their continent.
United Kingdom: Currently the UK has not established any separate monetary law for cryptocurrencies or exchanges. Cryptocurrencies are treated as foreign money and the regulation comes according to that. Cryptocurrencies also come under taxation system where VAT is not needed for conversion to fiat money but for good’s exchanges VAT needs to pay.
Germany: Germany has a well-adapted law for cryptocurrencies and cryptocurrency exchanges farms, In February 2018, the German BaFin announced a strong rule for ICOs (Initial coin offerings) tokens, coins and cryptocurrencies. This regulation principally focuses on security and preventing money laundering cases.
Estonia: Estonia represents cryptocurrencies as very useful transferable money and also a payment instrument that distributes only in digital form. Anti-money laundering legislation can provide the service of exchange digital money to fiat currencies including, trading, storing and transferring digital assets in 2017.
Oceania:
A group of the island including Australia the biggest country of this continent, Oceania provides one of the highest trade-in cryptocurrencies.
Australia: From the beginning (2013) of the rise of the cryptocurrencies, Reserve Bank of Australia confirms that they do not have any legal tender with cryptocurrencies. Considering cryptocurrencies and businesses are legal in the country. In 2018, the Australian Transaction Reports and Analysis Centre has reported that all Australian cryptocurrencies must be registered with the agency and should bring with better policies to “know your customer” for preventing anti-money laundering lawmaking.
New Zealand: This country did not have any proper regulatory law for cryptocurrencies however trading, storing, and the transaction is allowed via cryptocurrency as long as they are not subjected to convert any real entity. A recent report stated that New Zealand has given the allowance to pay salary with cryptocurrency.
There are still may be some issues that still prohibit the growth of the digital currencies. However, the other benefits lie that whether they legal or illegal for any country its decentralized nature make it runs worldwide. When Facebook has announced its ordered crypto-currency Libra, countries need to be more focused on regulation status for cryptocurrencies.
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