Countries With Cryptocurrency Restriction Laws Grow in Three Years
The cryptocurrency has seen both supports and snaps thanks to its gradual movement over the years. To be reviewed with its performance between 2018 and 2021, the space of three years has increased the volume of setbacks on a global scale.
While the year 2021 yielded a historic surge in market performance for the entire crypto ecosystem, it also represented more snaps on digital assets. The number of countries or jurisdictions with restrictive cryptocurrency laws doubles in 2021 compared to 2018.
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According to the Library of Congress (LOC), there are currently nine jurisdictions with an outright ban on cryptography, while 42 use an implied ban. The first report of 2018 shows the stats up 8 and 15 respectively.
According to the LOC’s list, the nine countries with an absolute crypto ban are Oman, Qatar, Algeria, Egypt, China, Morocco, Bangladesh, Iraq, and Tunisia. China’s 2021 crypto ban drew the most attention of any country on the list. The Library of Congress (LOC) is the research library of the United States Senate. In addition, it serves as the country’s national library.
The LOC report clarified its contextual definition of both an absolute ban and an implied ban. According to the report, an absolute ban is defined as holding cryptocurrency or trading, a criminal act.
On the other hand, an implied prohibition prevents crypto exchanges, banks or financial companies from engaging in crypto transactions or providing services in crypto.
Hope countries lift ban on cryptocurrency sector
The gradual increase over the last three years of jurisdictions banning and restricting cryptocurrency is quite alarming. Additionally, there is no visible downside as more and more governments reconsider their stance on crypto.
Besides the total of 51 jurisdictions that have banned crypto, about 103 countries have enforced strict laws and measures. These include enforcement of anti-money laundering (AML) and counter-terrorist financing (CFT) laws. The number gives a threefold increase from the 2018 value of 33 jurisdictions with such laws.
A similar move is the November ban on proof-of-work (PoW) mining by a Swedish financial regulator and the Swedish Environmental Protection Agency.
The ban was due to the energy requirements and environmental costs of operating the networks. However, Melanion Capital, a Paris-based company, criticized the ban. The company called the claims against mining misinformation.
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In addition, EU neighbor Sweden across the Baltic Sea is preparing to implement AML/CFT rules by February. Application of the rules is expected to change the meaning of virtual asset service providers. Also, it will introduce an implicit ban on Bitcoin and DeFi.
On the other hand, the Indian government spooked its people by deciding its lawmakers to ban crypto last year. Although the result was not an outright ban, they imposed strict regulations on cryptocurrencies.
Featured image from Pexels, chart from TradingView.com