Cryptocurrencies have gained extraordinary popularity in 2021. It was an exciting year for digital currency along with the rise of NFT. Nearly every cryptocurrency hit record highs and took the market by storm.
However, a number of countries have decided to ban or heavily regulate these digital assets for various reasons. The entire market’s value was wiped out in just several days when China ban these digital currencies. In May 2021, the Asian country decided to ban Chines financial institutions from providing services relating to cryptocurrencies. And they are not alone – according to the Law Library of Congress report dated November 2021, over 51 countries have taken the step of banning cryptocurrencies; either implicitly or absolutely.
Besides China, there are eight other countries that have absolute bans on these digital assets. The countries are Algeria, Bangladesh, Egypt, Iraq, Morocco, Nepal, Qatar and Tunisia. All these eight countries have chosen to unilaterally ban exchanges and services surrounding cryptocurrencies.
While the other 41 countries have enacted regulations around digital assets. Most of the countries are in Africa or the Arabian Peninsula. Interestingly, the only country located in Western Europe that implicitly banned cryptocurrency is Moldova. These regulations prohibit banks, lenders and any other financial institutions from offering services involving cryptocurrencies to their customers.
So what’s in store for 2022? There are a few wild predictions from investors. The Law Library of Congress list 103 countries that subject digital currencies to tax laws, as well as laws governing money laundering and the financing of terrorism.
It seems that this year is likely to be a busy year for lawmakers around the world as the need for regulation of these cryptocurrencies is growing.
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