Cryptocurrency is likely to revolutionize how money is managed. It’s fast, secure, and difficult to counterfeit. But cryptocurrency is volatile in nature which makes it risky for investors and challenging for regulators to regulate.
Cryptocurrencies have gained high traction in the financial world. The advent of blockchain has created various opportunities for people to invest their money in this new technology. However, with any new investment opportunity come a few pitfalls. There is always a risk associated with investing in cryptocurrencies because some scams are associated with ICOs or Initial Coin Offerings (ICOs).
So, if you are looking to invest in cryptocurrency and to help you navigate this uncharted territory, we’ve put together a list of the top countries with cryptocurrency regulations:
Table of Contents
1. Switzerland
Switzerland is a lucrative country for those looking to invest in cryptocurrency. This is because it has a very friendly regulatory environment. The same thing can also be seen in its legal status, which enables its citizens to buy, sell, and exchange cryptocurrencies without having to worry about getting into trouble with their government.
Switzerland’s financial center status makes it a popular location for cryptocurrency exchanges because they can seamlessly operate here without any interference from authorities or other parties interested in regulating their operations. In fact, there are no official regulations regarding cryptocurrencies in any part of Switzerland except Geneva (where regulations apply).
So, the favorable Switzerland cryptocurrency regulation makes it easier for investors to plunge into the world of cryptocurrency and grow their money.
2. Japan
Japan has always been a country that strives to embrace new ideas, technologies, and businesses. Japan is also a country that supports cryptocurrency regulation—and its government has even been supportive of blockchain technology in general.
It’s no surprise that Japan is one of the most cryptocurrency-friendly countries in the world, with its laws on blockchain technology and cryptocurrency being some of the most progressive in terms of regulation.
Japan recognizes cryptocurrencies as an important part of its economy and financial ecosystem—and they are more than willing to regulate them accordingly.
3. Malaysia
Malaysia is a great country when it comes to investing in cryptocurrency and trading. The Malaysian government has always given higher importance to the digital economy, and they are committed to promoting innovation, economic growth, and social welfare.
Malaysia’s supportive regulatory environment for cryptocurrency investors makes it one of the best places in Southeast Asia for them to do business with cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), or Ripple XRP, as well as other tokens like Stellar Lumens (XLM).
The country does not put any restrictions on using digital currencies like Bitcoin or Ethereum. However, there are no official rules regarding their use yet. Hence, you will have to be extra cautious to avoid fraudsters who may try to scam you out of your money when buying or selling these coins online through exchanges.
4. United States
The United States plays an active role in regulating cryptocurrency. The U.S. government has taken positive steps in the regulation of cryptocurrencies, with many states passing legislation that particularly targets this new asset class.
In January 2019, South Dakota became the first state to pass an explicitly anti-crypto measure by banning companies from issuing digital tokens or coins that use blockchain technology (the technology behind Bitcoin).
In March 2019, Arizona was selected as one of two finalists for an official license to operate as a bank based on its experience with blockchain technology; however, it lost out to New York State due to political reasons related to financial corruption concerns regarding both candidates’ campaigns actions during their time spent at Goldman Sachs before becoming a governor or senator respectively.
5. Germany
Germany is a country with many cryptocurrency regulations. Germany has a lot of cryptocurrency regulations for investors, but it also has some special rules for businesses to help protect consumers from fraud.
The German government has been making efforts to protect consumers since the advent of Bitcoin in 2009, when it was still very much under the radar and not yet considered a legitimate currency. The country’s Bundesbank (Germany’s central bank) issued a warning against cryptocurrencies in 2017, including one stating that Bitcoin wasn’t legal tender because it wasn’t supported by any government or central bank like fiat currencies, which are backed by their governments.
Summing Up
Being aware of the current status of cryptocurrency regulations will help you make informed decisions regarding investment in this digital currency. It’s clear that cryptocurrencies are here to stay for years to come. But the main question remains how governments around the world will deal with them. There are many different approaches to cryptocurrency regulation presently being discussed.
Some countries have decided to ban it altogether, while others have restricted access and use by requiring licenses for miners or exchanges. And some countries are waiting for global consensus before proceeding further to make any decisions at all.
