• In the past three years, there have been more countries than ever that have prohibited bitcoin trading and mining.
• Study in the United States could reduce regulations, tax on cryptos and world bans.

The Library of Congress of the United States discovered that the number of countries who have implemented regulatory policies, increased taxes, or banned other cryptocurrencies has increased in the past three years.

But, at the same time, during that period the price of the world’s largest market capitalization cryptocurrency has not only tripled, but countries like El Salvador have adopted it as legal tender.

The investigation saw the countries that allowed cryptocurrency use to be divided into two groups: those who have adopted regulatory policies and those that prohibit its use. The prohibitions fell into one of two types: absolute or imposed.

These regulations aim to completely veto the use and adoption of cryptocurrencies. They claim that the decentralized digital currency has no endorsement and that their commercialization is a crime.

The regulations are required for another reason. These regulations, while they are designed to prevent banks and businesses from using cryptocurrency, don’t make it a crime for users to possess or use them.

Countries that have strict restrictions on cryptocurrency use

The study found that 9 countries have banned the use cryptocurrency in their economies as of November 2013. Among these countries, China stands out, whose central bank (People’s Bank of China), banned the mining and trade of BTC and other cryptocurrencies.

Algeria, Qatar (Egypt), Egypt, Iraq and Morocco have also placed absolute trade and usage restrictions against BTC. China was the last to be added to this list, shortly after the announcement of the digital currency (CBDC).

The list of nations that have decided to ban cryptocurrencies implicitly has gone up from 15 countries to 45, after the 2018 publication of its first report. Similar to the above, over this time period, assets in countries have grown for crypto and BTC.

To The Flipside

• The congresses from several Latin American nations, such as Panama, Bolivia, and Costa Rica could also approve Bitcoin legal tender in that same year.

Why you should care

• The study by the US Congress also shows which countries have passed regulations related to crypto assets taxes and money laundering (AML).
• From 33 countries in 2018, to 103 today, the number of countries applying AML regulations has increased.

BTC holders reject such regulations as they want to restrict the privacy of crypto operations. It is therefore possible to identify illegal financial transactions.

Additionally, the regulations do not ban the storage or use of crypto currencies, but instead focus on tracking transactions made through cryptocurrency exchanges.

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