Is there any chance for cryptocurrency to become legal in all countries?

The First Art Newspaper on the Net    Established in 1996 Thursday, June 13, 2024

Is there any chance for cryptocurrency to become legal in all countries?

Bitcoin is over 10 years old but many countries still don’t have a clear legal framework and rules for cryptocurrencies. It is partly related to the fact that a lot of countries started discovering crypto recently and don’t have a sustainable position regarding the cryptocurrency market. This creates an atmosphere of uncertainty which makes it difficult for investors and businesses to understand how to work with cryptocurrencies and whether it is worth working with them.

However, in some countries, the regulatory framework for cryptocurrencies is constantly evolving and market participants have some understanding of the pros and cons of using cryptocurrencies on the local market. Clear rules that favor cryptocurrencies help businesses to implement blockchain and cryptocurrencies into the existing system. On the other hand, some countries consider cryptocurrencies as a threat, so they have introduced strict restrictions and bans on cryptocurrencies.

Will there ever come a day when cryptocurrencies come out of the gray area and become legal all over the world? In fact, this is quite difficult since the concept “legal” is sometimes deceptive and requires some additional questions.

Legal as what?
Not all cryptocurrencies are the same and it raises the question about how they should be classified. Even the same cryptocurrency is treated differently in many countries. For example, in the US, bitcoin is classified as a commodity, while in the European Union it is considered as legal tender and electronic money, making bitcoin a currency as opposed to being a commodity.

The further development and taxation of cryptocurrencies on the local market largely depends on this classification. Since bitcoin is recognized as a commodity in the United States, it became possible for bitcoin futures to appear on the American exchanges CME and CBOE.

At the same time, some altcoins are viewed by regulators as securities, which is already a completely different asset class and requires a different approach to regulation. That is why different cryptocurrencies will have different paths to become legal.

Legal for what?
Even if cryptocurrencies are legal in a particular country, this does not always mean that they can be used as a payment method. For example, in Vietnam, bitcoin is outlawed as a means of payment and it could not be used to purchase goods or services but crypto trading is not banned. This means that even if you buy Tron (TRX), ETH or BTC, you can only use them to trade and as a store of value.

Besides, legal status is not a protection against certain restrictions that users may face. For instance, in Cambodia, there are restrictions for banks regarding transactions related to cryptocurrencies which makes cryptocurrency adoption slower and harder.

As you can see, the word “legal” can be quite insidious and doesn’t always reflect the complete freedom to use an asset in accordance with possible expectations. Therefore, even if cryptocurrencies become “legal” all over the world, it is still important to pay attention to how cryptocurrencies are viewed and how they can be used.

The main obstacles to be legal in all countries
Each country is unique, they have a different cultural, historical, political, and religious legacy, so the attitude towards cryptocurrencies as such can differ significantly. This is one of the main reasons why cryptocurrencies are unlikely to be legal in all countries, because some countries may have their own reasons to ban them. For example, Bolivia has completely banned cryptocurrencies. According to the Central Bank of Bolivia, this ban was put in place to protect the national currency, as well as to protect the citizens from the risks of using “unregulated currencies”.

It is clear that the government or the economic situation may change and then the attitude towards cryptocurrencies will be different, but the same applies to countries that look supportive of cryptocurrencies. Legal status does not give immunity and the regulator’s position may be changed.

Also, some countries are experimenting with the idea of a central bank digital currency (CBDC). It means that in the future they may see cryptocurrencies as competitors.

Why do cryptocurrencies still have a small chance to be legal all over the world?

Cryptocurrencies are decentralized and don’t have a single point of failure, they are politically neutral and not related to a particular country. The main thing is that users, developers and regulators see the potential in cryptocurrencies to solve certain problems in traditional financial systems. If the potential value of cryptocurrencies exceeds the potential risks, then cryptocurrencies may become legal in most countries.

Given the differences between cryptocurrencies, it is unlikely that all of them will be legal in all countries, especially anonymous cryptocurrencies. However, certain cryptocurrencies may achieve a legal status around the world, but this takes time and the formation of a clear legal framework for cryptocurrencies.

Today's News

January 5, 2021

Hindman Auctions launches the Digital Bid Room

Joan B Mirviss and Asia Week New York present an Insider's Look at the Iconic Great Wave

Documentary about M.C. Escher opens in New York, Los Angeles and other cities on February 5

Six Philadelphia cultural institutions jointly announce reopenings

Gerry Marsden, a hitmaker with the Pacemakers, dies at 78

Artpace at 25: New book captures Artpace's International Artist-in-Residence program from 2008-2019

UK music festivals face 'existential crisis': industry body

Baronian Xippas Gallery exhibits works by Mitja Tušek

Marianne Boesky Gallery presents a solo exhibition of new works by Donald Moffett

Finnish metal guitarist Alexi Laiho dead at 41

A year of scandals and self-questioning for France's top publishers

Galerie Ron Mandos exhibits works by a selection of established and emerging artists from Brazil

Boulder Museum of Contemporary Art announces hire of Curator Pamela Meadows

Hazelhurst Arts Centre announces 2021 exhibition program

Calligrapher leaves a lasting mark on Sunderland

Centre d'Art Santa Monica presents 'Right Now All is to be done, and everything is possible'

Bond actress, 'That '70s Show' star Tanya Roberts in 'critical' condition

Kim Chernin, who wrote about women, weight and identity, dies at 80

Exhibition surveys a particularly productive decade in Joan Brown's career

Exhibition of 24 outstanding works by visual arts students opens at Hazelhurst

François Ghebaly exhibits works by acclaimed multidisciplinary artist Christine Sun Kim

Michaan's Auctions caps 2020 with a big finish

Blake Prize finalists announced from record-breaking pool of entries

Windows Cleaning: How Often Should Commercial Windows be Cleaned?

Why Ikea Kitchens- How they can increase home value

Is there any chance for cryptocurrency to become legal in all countries?

Should I Use an Instagram Followers App?

Museums, Exhibits, Artists, Milestones, Digital Art, Architecture, Photography,
Photographers, Special Photos, Special Reports, Featured Stories, Auctions, Art Fairs,
Anecdotes, Art Quiz, Education, Mythology, 3D Images, Last Week, .


Ignacio Villarreal
(1941 - 2019)
Editor & Publisher: Jose Villarreal
Art Director: Juan José Sepúlveda Ramírez
Writer: Ofelia Zurbia Betancourt

Truck Accident Attorneys
Accident Attorneys

Royalville Communications, Inc
Founder's Site. Hommage
to a Mexican poet.

The First Art Newspaper on the Net. The Best Versions Of Ave Maria Song Junco de la Vega Site Ignacio Villarreal Site Parroquia Natividad del Señor
Tell a Friend
Dear User, please complete the form below in order to recommend the Artdaily newsletter to someone you know.
Please complete all fields marked *.
Sending Mail
Sending Successful