Cryptocurrencies gained extraordinary recognition in 2021. But, numerous international locations have determined to ban or closely regulate these unstable belongings for numerous causes.
In 2021, cryptocurrencies took the financial markets by storm. Whereas some international locations haven’t particularly outlined a technique concerning cryptocurrencies, others have determined to ban these belongings altogether.
An important financial actor to ban these digital currencies is evidently China. In Could 2021, the Asian nation determined to ban Chinese language monetary establishments (principally banks) from offering providers referring to cryptocurrencies. And China isn’t alone.
In response to the Regulation Library of Congress report of November 2021, 51 international locations have taken the step of banning cryptocurrencies, both implicitly or completely.
Along with China, eight different international locations have absolute bans on these digital currencies. Algeria, Bangladesh, Egypt, Iraq, Morocco, Nepal, Qatar and Tunisia have all chosen to unilaterally ban exchanges and providers surrounding cryptocurrencies. Nearly all of the opposite 41 international locations which have enacted laws round digital belongings are in Africa or the Arabian Peninsula.
Extra surprisingly, in response to the report, the one nation situated in Western Europe with implicit bans affecting cryptocurrencies is Moldova. These laws prohibit banks, lenders and some other monetary establishments from providing providers involving cryptocurrencies to their clients.
A pivotal yr for regulation
Not too long ago, India and Iran introduced plans to create new laws to ban cryptocurrencies. In its report, the Regulation Library of Congress lists 103 international locations that topic digital currencies to tax legal guidelines, in addition to legal guidelines governing cash laundering and the financing of terrorism. All international locations within the European Union have these laws, apart from Bulgaria.
Plainly 2022 is more likely to be a busy yr for lawmakers all over the world. The necessity for regulation of those digital currencies is rising, and a large number of nations have taken motion on the matter this yr. The creation of state-backed digital currencies ought to spur nonetheless overly-lenient leaders to enact new measures, even when the cryptocurrency world stays opaque and troublesome to manipulate. – AFP Relaxnews