Cryptocurrency regulations around the world, is it legal or ban in your country?

Many countries have put a ban on the use of cryptocurrency. While on the contrary, many countries are using this facility for better security, accessibility and speedy transactions.

Cryptocurrency, often termed as crypto, is a form of digital currency which uses cryptography to secure the transactions. Bitcoin was introduced to the world in 2008 by undefined individuals of people under the name of Satoshi Nakamoto. Later in 2009 it came into use when it was launched officially.

Some countries are in favor of these digital currencies while other countries show more resistance towards it. The first country to permit the use of the digital currency (bitcoins) was El Salvador in September 2011. Other than El Salvador many other countries (to name a few) Mexico, Japan, Germany, Iceland, Venezuela, United Kingdom, France, Spain, Denmark and many more countries have also made the use of bitcoin legal. Ukraine became additionally many of the nations that have been regulating cryptocurrency, however the state went one step further on Wednesday right after it received the donations in crypto followed by the Russian invasion.

On the contrary, there are many countries who are against digital currency. As per the Law library of congress report of January 2022, around 42 countries are still on the edge and have not decided yet if they consider bitcoin legal or illegal. Whereas nine countries have strictly banned the use of the digital currency, these countries include Tunisia, Nepal, Qatar, Morocco, Iraq, Egypt, Bangladesh, China, Algeria.

Not only this, but Bangladesh has even warned that the use of the digital currency can result in the violation of “Money Laundering Prevention Act, 2012”. Also the authorities of Egypt have made it very clear that the banks are strictly prohibited to deal with the cryptocurrency.

As per my opinion, the money that a user puts into Bitcoin is always in danger of the value fluctuations. Other than this, another major reason to stay away from these digital currencies is the risk of fraud and hacking. The crimes associated with digital currency are on the rise. As per the reports, the crimes associated with the digital currency have escalated up to 312% on average per year since 2016.

But despite the disadvantages, there are certain additional benefits of the cryptocurrency. Say for example, the users are able to do easy transactions within a short duration of time. Other than this, the crypto industry is reported to be one of the fastest growing industries. For instance the total market capitalization of the crypto industry was around $1.6 billion in 2013 and by June 2021, it rose up to $1.4 trillion.

H/T: Statista.

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