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Countries where cryptocurrencies are legal

20 June 2018 00:00, UTC
Countries where cryptocurrencies are legal
The attitude towards cryptosphere is ambiguous all over the world. Some countries consider cryptocurrencies as a chance to raise funds and create conditions for economic growth, while others believe that cryptocurrencies can undermine the stability of the financial system and cause a crisis. Bitnewstoday asked the experts of the cryptocurrency market which countries are "quiet harbors" for crypto companies, and where you are not even allowed to pronounce the word "crypto".

Which countries say "welcome" to crypto companies

As the experts told us, Gibraltar, Malta, Japan, Ukraine, Estonia, and Switzerland are the most friendly countries concerning cryptocurrencies and crypto companies.

“These countries are seeking to become havens for crypto companies through the laws and regulations they are crafting because they recognize that cryptocurrency is here to stay and there is a lot of revenue to be had for the countries that are friendly to the industry”, says Louis Adimando, the co-founder and Chief Strategy Officer of Praetorian Group (PAX).

Experts emphasize some countries and regions fully understand the importance of blockchain revolution. For example, Zug, Switzerland, where Crypto Valley was created.

Experts also refer to "quiet crypto harbors" such market participants as Malta, Isle of Man, Bermuda, Marshall Islands (USA). Experts believe that these states are going to win a cryptorace without any special investments. They understand that non-intervention is the best approach to the formation of the cryptosphere regulation system. Thus, such rules will allow governments to resist, crypto enthusiasts say.

“I think these countries see the opportunity for economic and technological development, and want to capitalize on that. At the same time, it’s important to remember ICOs in and of themselves are not innovation - they’re funding events. The real innovation is in execution of product of protocols”, believes Kristoffer Nelson, co-founder and COO of SRAX.

It is worth noting that the most friendly countries towards cryptocurrencies are small states that do not have strict financial systems. It is easier for these countries to adopt and implement new technologies.

Countries that can’t stand crypto sphere

Experts say that the most unfriendly countries in relation to the crypto sphere are China, Korea, India, and Russia. Russia is trying to create a system for controlling cryptocurrencies and ICO, but it is so challenging to manage the decentralized network.

China and India apply the policy of "iron fist" in relation to the cryptocurrencies and ICO, creating interdiction efforts and speaking up about the industry severely. However, some experts believe that the heat is gradually going down in China, as President Xi called the technology of blockchain “revolutionary” in his recent speech. In addition, the market participants expect a moderation of the policy relating to the crypto in Korea.

“Countries that are fearful of losing control of their citizens’ monetary independence, tend to be the most afraid of the crypto / blockchain revolution. Try to picture the biggest human rights violators in the world, and chances are, they’re coming down against cryptocurrency. But most are afraid of showing their impotence, of making rules that they can’t even enforce. Also countries or localities that are home to the biggest legacy financial institutions. It’s a threat to their business model”, foresees Nick Spanos, Founder of Bitcoin Center NYC.

06.06.2018  |   in Blockchain

Along with this, Loretta Joseph, OECD Think Tank Leader, Shyft Senior Advisor and Chair of the Australian Digital Chamber of Commerce Advisory Council (ADCA) said: "It is difficult to name a specific country that is strongly opposed to the cryptosphere. Even some of the countries-skeptics started to use the technology of blockchain in this matter".

What are the governments afraid of?

When preparing the material, Bitnewstoday interviewed not only the market participants but also regulators from different countries. We asked about threats that the cryptosphere and blockchain technology may cause to the traditional financial sector.

Thus, Maike Kreutzberg, the International press secretary of the German Ministry of Finance, remarked: “Due to the small market capitalization of Bitcoin and other crypto-tokens and the limited interlinkages with the financial sector, we currently see no risks for financial stability. However, we consider it appropriate to further discuss the risks at G20 level and to monitor developments closely”.

The Bank of England also considered that the cryptosphere doesn’t cause a threat to financial stability. “The FPC judges that existing crypto-assets do not currently pose a material risk to UK financial stability.The FPC will act to ensure the core of the UK financial system remains resilient if linkages between crypto-assets and systemically important financial institutions or markets were to grow significantly.  In the event that one or more crypto-assets were likely to become widely used for payments, or as an asset intended to store value, the FPC would require current financial stability standards to be applied to relevant payments and exchanges”, stated a representative of Bank of England.

31.05.2018  |   in ICO

Besides, Denis Filippov, the head of the payment system department of the Bank of Latvia, says that cryptocurrencies play a significant role in the modern economy and allow to create new business models and add flexibility to existing ones. Of course, this also contributes to cybercrime and makes it easier for victims to pay to cybercriminals, and also helps to turn cybercrime into a service.

At the moment, as long as the world community and most countries do not have a clear view of the crypto sphere, it is necessary to select the jurisdiction with caution for the crypto company. In any case, it is better to consult with crypto experts on this issue.

All materials presented on this site are provided to you for informational purposes only

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