Where Is Crypto Legal and Where Is it Banned? This Map Can Help – LX

This interactive map shows which countries allow cryptocurrency transactions and explains the level of legality in each nation, including tax rules and anti-money laundering and anti-terrorism laws.

Interactive map: Legal status of Crypto

Use the map below to see where encryption is legal and where it is prohibited. Tap or hold the cursor to view specific tax regulations, anti-money laundering, and anti-terrorist financing laws. Use the table that can be searched at the bottom of the article to find more information. The data comes from a variety of sources, including the Global Legal Research Directorate of the Law Library of Congress, state archives, and various legal databases.

Where is Crypto Prohibited?

More than 1.8 billion people worldwide are blocked by his government. The cryptographic industry is banned in 13 countries, some of which include Algeria, Bangladesh, China, Egypt, Ethiopia and Iraq.

For 1.390 million people in 40 countries, including Cambodia, Iran, Nigeria, Pakistan and Saudi Arabia, cryptocurrency is partially banned. This may mean that banks cannot offer cryptocurrency services to customers or exchanges (applications that allow you to buy and sell cryptocurrencies) cannot operate legally. Cryptography users can trade and invest at their own risk, but they cannot exchange cryptocurrency for money or use it to make payments.

Where is Crypto Legal

For 3.6 billion humans in 75 countries, about half the population of the Earth, crypto is legal to some extent. Countries such as the United States, Mexico, Japan, Australia, and most of Europe allow people to trade cryptocurrencies and make money through exchanges, although various regulations may apply.

The most common regulations describe how cryptography will be recorded, help authorities mark suspicious account activity, and ensure that money is not used to fund terrorist activities. These rules are called anti-money laundering and anti-terrorist financing laws.

Two countries gave Bitcoin legal course status – El Salvador and the Central African Republic. These nations represent 11.3 million people.

Bitcoin’s promise of economic freedom

CAR’s Bitcoin plan is still taking shape since it was announced on April 27, but in El Salvador, traders are required by law accept Bitcoin as payment. In contrast, in 2001, El Salvador legalized the US dollar but did not require anyone to accept dollars for payment. In the US no merchant is required to accept cash or anything else as payment. Bitcoin’s promise of economic freedom never mentioned forcing people to be adopted en masse.

Bitcoin as a legal tender also means that some of El Salvador’s cash reserves are held in Bitcoin, so they are subject to cryptocurrency volatility. As of May 10, El Salvador’s Bitcoin holdings were valued at $ 71.3 million. On June 1, it fell to $ 68.5 million. On June 16, it fell to $ 46.8 million.

Salvadorans who have their savings in Bitcoin have lost almost half of their purchasing power in a month. As of the publication of this story, the Republic’s Bitcoin possessions are valued at about $ 7 per citizen.

Bitcoin Adoption vs. Bitcoin Price

If more people are using Bitcoin, like the entire population of El Salvador (approximately 6.5 million people), shouldn’t we see this reflected in the price of Bitcoin?

If everyone in El Salvador had a $ 10,000 Bitcoin wallet, that would add $ 65.4 billion to the Bitcoin market capitalization, the total number of available Bitcoin multiplied by the current asking price. It sounds like a lot of money, but it’s only around 16 percent of the current market value of Bitcoin, right now at $ 400 billion.

That also means that everyone in the country uses Bitcoin, but El Salvador’s digital infrastructure doesn’t reach everyone. The International Telecommunication Union says 68 percent of people in El Salvador were covered by a 4G network by 2020 and only 55 percent of people use the web.

Crypt in America

U.S. leaders are also holding the cryptographic conversation. In California, Assembly Bill 2689 seeks to define crypto as a legal method of payment. In Arizona, SB1341 aims to make Bitcoin legal tender currency. In 2022, another 35 states had on their agenda legislation on cryptography, ranging from taxation to the establishment of legal guidelines for the expanding cryptographic industry.

In the U.S. Senate, Republican Cynthia Lummis and Democrat Kirsten Gillibrand are pushing for Responsible Financial Innovation Act, an attempt to bring order to the roller coaster by shifting SEC regulatory duties to the Commodity Futures Trading Commission, setting rules for cryptographic companies and creating consumer protections.

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