A recent report by CoinGecko sheds light on the global status of cryptocurrency, highlighting the legalization, regulation, and adoption trends across different countries.
The report reveals intriguing insights into the widespread acceptance of digital assets, the regulatory landscape, and the countries that have embraced or banned their usage.
95% Of European Nations Recognize Legitimacy
According to CoinGecko’s findings, cryptocurrency is legal in 119 countries and four British Overseas Territories, indicating that more than half of the world’s countries have embraced cryptocurrencies.
Notably, 64.7% of the countries that have legalized digital assets are from emerging and developing economies in Asia and Africa.
Europe emerges as a leader in legalization, with 39 out of 41 analyzed countries (95.1%) recognizing its legitimacy. On the other hand, North Macedonia remains the only European country where cryptocurrency is illegal, while Moldova’s stance is yet to be clarified.
In the Americas, 24 out of 31 countries (77.4%) acknowledge crypto as legal, with Bolivia being the sole exception. Several American countries, including Guatemala, Guyana, Haiti, Nicaragua, Paraguay, and Uruguay, have yet to establish their official stance on digital assets.
Africa has seen fewer countries legalize cryptocurrency, with only 17 out of 44 (38.6%) recognizing its legitimacy. Meanwhile, in Asia, 35 out of 45 countries (77.7%) have embraced these assets.
Cryptocurrency Regulations On The Rise?
Per the report, out of the 119 countries where cryptocurrency is legal, only 62 (52.1%) have comprehensive regulations in place. This marks a significant increase from 2018 when only 33 jurisdictions had regulations.
According to CoinGecko half of the countries with established regulations are advanced economies, while the other half comprise emerging and developing economies.
Furthermore, the report notes that instead of creating new regulations, some countries have adapted existing frameworks, such as tax laws and anti-money laundering regulations, to include cryptocurrencies.
Major advanced economies like France, Japan, and Germany have successfully implemented regulatory frameworks. However, countries like Italy, the United States, Canada, and the United Kingdom face challenges in establishing comprehensive regulations due to the involvement of multiple government bodies and regulatory complexities.
El Salvador and the Central African Republic (CAR) are the only countries that have legalized digital assets. El Salvador made history by legalizing Bitcoin as a legal tender, but CoinGecko notes that adoption remains relatively low.
25 Nations Navigate The Gray Area Of Regulation
A total of 25 countries are categorized as “crypto-neutral,” refraining from assigning a definitive legal status to cryptocurrency usage. Among these countries, most have implicitly banned or expressed significant concerns and restrictions, while Uruguay adopts a cautiously optimistic approach, actively assessing crypto pilot projects and proposing a regulatory framework.
22 countries have explicitly banned digital token use and transactions within their borders. The majority of these countries are located in Africa, with North Macedonia (Europe) and Bolivia (America) being the exceptions. Despite the bans, the report suggests that some of these countries, including China, Egypt, Nepal, and Morocco, show significant levels of adoption.
Overall, the adoption of digital assets as legal tender remains limited to only a few countries. As the industry continues to evolve, regulatory frameworks and global consensus will play a crucial role in shaping its future and adoption.
Featured image from Shutterstock, chart from TradingView.com