Ever since its beginnings, cryptocurrency has been a controversial subject. It has received widespread criticism for its instability. However, several nations continue to trust in the decentralized potential of cryptocurrencies. Here is a list of the leading nations that have made cryptocurrencies legal, illegal, or unregulated (with some restrictions).
In 2018, Algeria enacted a finance law that criminalizes any cryptocurrency transactions. This includes the ownership and exchange of any digital assets. Any infraction of the law is an offense and is subject to punishment.
In September 2021, China’s central bank ruled all cryptocurrency-related transactions unlawful and imposed a blanket ban, delivering the clearest signal to far of its intent to crack down on the industry.
Cuba is the most recent nation to legalize and regulate cryptocurrencies such as Bitcoin.
Egypt has classed Bitcoin and other cryptocurrencies as illegal under Islamic law. In 2018, Dar al-Ifta, the nation’s foremost Islamic advisory body, issued a religious ruling. The country in September 2020, updated banking regulations to prohibit dealing or promoting cryptocurrencies without a Central Bank license.
6. European Union
The European Union has neither legalized nor prohibited the use of cryptocurrencies. It acknowledges Bitcoin and other cryptocurrencies as “crypto-assets.” In response to the increasing use of crypto-assets for money laundering, European Union (EU) legislators are tightening regulations on cryptocurrency transfer. This would require crypto exchanges to notify any transactions exceeding EUR 1,000 ($1,100) to the appropriate authorities.
In 2018, the central bank of Indonesia adopted new restrictions prohibiting the use of cryptocurrencies, including Bitcoin, as a payment method.
The Cryptocurrency and Regulation of Official Digital Currency Act of 2021 have not yet been introduced by the government. But according to the agreement, “it provides for particular exclusions to encourage the underlying technology of bitcoin and its use.”
Russia’s central bank suggested a ban on the use and mining of cryptocurrencies on Russian soil in January 2022, citing threats to financial stability, the well-being of its citizens, and its monetary policy sovereignty. Russia has opposed cryptocurrencies for years, arguing that they could be used to launder money or fund terrorists.
In April 2021, the Central Bank of the Republic of Turkey announced a regulation prohibiting the direct or indirect usage of cryptocurrencies in any manner.
1. The United States
Cryptocurrencies are permitted in the United States. According to the Financial Crimes Enforcement Network (FinCEN) of the United States Department of the Treasury, Bitcoin is a convertible currency having an equivalent value to real cash or one that can serve as a substitute for real currency. For tax reasons, the Internal Revenue Service has also classified Bitcoin as property.