Cryptocurrency regulations across the world

Bitcoin is the best-known and the highest valued crypto-currency. It doesn’t automatically mean it’s welcome all around the world. The British published the findings of a global investigation carried out by Coinwriting about the “legal status” of BTC.

According to their research: “Nearly 100 nations have no restrictions on Bitcoin and are either enthusiastic for them, or are neutral.”

However, there are 10 countries where Bitcoin is simply illegal. These countries are Iceland, Vietnam, Bolivia, Kyrgyzstan, Ecuador, Russia, Algeria, Nepal, Bangladesh and Morocco. The research found, not surprisingly, that “the 10 countries which had outlawed Bitcoin were largely concerned the digital currency poses a threat to traditional banks while others are worried about their lack of traceability and potential use for illegal activities.”

For example, according to the Coinwriting study, Iceland decided to ban Bitcoin trading because they did not find it compatible with the Iceland’s monetary laws which, as they put it, are in place to “protect the exodus of Icelandic currency”.

Looking at another anto-crypto country, Vietnam explains its ban on the use of BTC because of Bitcoin’s links to criminal gangs and because they regard crypto-trading as a means of money laundering.

China, Saudi Arabia, Mexico and Egypt are the countries where BTC is not banned but you will bump into restrictions if you want to trade Bitcoin.

The research took a closer look at the USA and found that even within one country you can find a huge difference if you look at the laws that are in place concerning Bitcoin across US states. They set up four categories regarding the general attitude of individual states: "friendly", "murky", "hostile" or “no opinion” to Bitcoin and other altcoins.

According to the research on states of the USA, the overall picture around the USA is just like the global picture: there are friendly states, like Texas, for example. There are “hostile states include Washington state, which includes digital currency in its legal definition of money, meaning a special permit may be required in the future.” And Florida, Pennsylvania, Wisconsin and California are “murky” about Bitcoin.

And most of the US States, just like the majority of countries have not decided yet how to look at Bitcoin. In most countries you can do whatever you want to do with your crypto-currencies. At least, for now, until these countries catch up with the financial technological development and make up their mind whether they oppose or support what a lot of people around the world look at as the global currency that will soon replace fiat currencies.



Zsolt Balló