The term "cryptocurrency" has become well-known. As a result, many governments around the world are debating whether to regulate this new type of digital currency or to prohibit it due to its decentralised and extremely volatile character. There appears to be no consensus, as countries with a good attitude toward it coexist with countries that are vehement about banning it. We will explore the key countries that have either controlled, prohibited, or legalised Bitcoin (BTC) as legal cash in this brief essay.
Countries With Current Or Upcoming Crypto Legislation
United Kingdom
The UK is one of the major economies that have regulated cryptocurrency and even declared Bitcoin as property. First, any business in the UK concerning Crypto Assets have to unconditionally accept the Anti Money laundering and prohibition of terror financing rules. Second, they have to get themselves registered with the UK premier financial body known as Financial Conduct Authority to start their operation.
Singapore
It is one such country in East Asia to legalise and regulate cryptocurrency through its main financial body. In Singapore, a law named the Payments Services Act was passed which authorised exchanges in cryptocurrency. Many Startups have migrated to Singapore just because of the friendly environment provided by the authorities. Indian Startups like Coin DCX have also migrated themselves to Singapore and have been successful in raising millions of dollars.
Canada
In Canada also the government in 2018 has clarified that securities law would apply to virtual currencies like Bitcoin etc and other Money laundering laws. All the businesses that are operating in cryptocurrencies must obtain a licence from the country’s financial regulator FINTARC.
United States
After having a look at these countries let us take a look at the countries that have proposed to regulate cryptocurrency or are in the initial stages to regulate this new phenomenon.
When it comes to cryptocurrency, then America cannot be left behind. Many American states have gone on to regulate cryptocurrency. For example, New York state has proposed to issue a licence in order to facilitate young emerging start-ups to deal with cryptocurrency. The state of Oklahoma has recently tried to regulate cryptocurrency within governmental agencies through a bill. In order to stop illicit terror financing and money laundering, the department of justice is proposing to issue draft regulations for the same.
Pakistan
This might come as a surprise as Pakistan is one of the few South Asian countries which has proposed to issue guidelines regulating cryptocurrency. In 2018 the premier bank of Pakistan issued an advisory for the general public to not deal in cryptocurrency as it is not a legal tender. Later it clarified in the court by stating that it would be regulating the crypto market and various other digital currencies. After looking at the countries which have proposed to issue a regulation, we must now look at some countries which have banned cryptocurrency and have penalised those dealing with it.
China
China through its various agencies issued a joint statement clarifying that Exchange platforms dealing with crypto assets are banned in China. Even trading in cryptocurrency is banned. Further, no business can offer initial coin offers to the public like IPO’s. But the law nowhere states that holding and storing cryptocurrency is illegal, thereby creating a minor loophole.
Bangladesh
Bangladesh has also banned cryptocurrency citing various reasons such as violating terror financing and money laundering rules and laws.
Middle East
Many other countries like Saudi Arabia, Qatar, Morocco and Algeria have come up with laws prohibiting dealing with cryptocurrency.
Crypto Conclusion
Despite many countries moving towards regulating cryptocurrency the atmosphere remains dull generally. Many countries have opted for a conservative approach citing cryptocurrency might lead to an increase in terror funding and money laundering, however, countries that have good Anti-Terror funding laws and good ant money laundering laws have welcomed cryptocurrency. However, there are other countries that have opted for a wait and look approach. They are still not sure whether to regularize cryptocurrency or ban it altogether at once.
However, banning it completely might not be a good decision as cryptocurrency has certain advantages which traditional fiat money doesn’t provide. Utilizing the bitcoin smarter app, a trading platform for all cryptocurrency investors, provides an opportunity to invest in Bitcoin with ease.