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It became clear that crypto is not going anywhere now, but they have to stay under the roof of regulations.
As of 2022, the buzz of cryptocurrency is all-around more than any time before this. Despite all skepticism, doubts, and trust issues with digital assets and its industry, the crowd in the space has seen remarkable growth in new projects, and so do the users. However, the acceptance of crypto moves on with some conditions that their regulations remain at the top.
Regulatory authorities and Governments across the nations have recognized the potential of blockchain technology and cryptocurrencies. It’s a kind of unannounced race to win the race towards digital currencies, which leads to the acceptance of both blockchain and digital assets. Authorities are trying out different regulations that vary with different jurisdictions.
Looking at the countries and their take on crypto, you may find some countries strictly against it and want the tight regulations possible. While the approach is somewhat soft in some countries supporting blockchain infrastructure development, some have already officially allowed operations with cryptocurrencies. These countries treat them as yet another medium of a commodity or as an investment asset and even for tax purposes under relevant legislations.
Some countries are known for their crypto liberal take or hassle free environment for crypto-based industries to grow up. We’ll take a glimpse of them and find out the advantages crypto firms could have in such countries.
Country that adopted it first — El Salvador
The discussion would start with the first and foremost country to adopt Bitcoin, the first cryptocurrency, as legal tender — El Salvador. The adoption of crypto made it possible now for clients from all over the world to purchase goods and services, invest in bitcoins, legally trade and earn profit from them and conduct their businesses efficiently.
El Salvador’s advantages to crypto firms include small taxes and financial democracy. Regulations are cooperative enough that any El Salvador registered company can get funds from the well-known exchange or payment platforms creators and even bitcoin miners worldwide. The country is one of the rapidly developing economies, and as it turned out, the digital currency transition made electronic transactions easier than ever before.
Crypto friendly country – Lithuania
The country has made the crypto regulations provide a fairly friendly environment to create fintech businesses, crypto wallets, and exchange services companies. Central Bank itself includes support related to developing fintech infrastructure and avail non-banking services for payments. The procedure of getting a license for a crypto firm is comparatively easy.
Licensing process includes basic requirements like developing Anti-money laundering policies and related rules for their application during the activity. Every user or client must have complete KYC, including data for the origin of client funds. Web resources readily available for entities need to obtain permission from the financial intelligence unit.
Recognized as one of the best countries for crypto businesses — Estonia
Its procedure and licensing regulations made it one of the suitable countries to set up crypto businesses. Estonia provides certain services to licensed companies like electronic wallets, crypto exchanges, and payment services along with crypto ATMs.
Recently, amendments made in LawLaw on the Prevention of Money Laundering and Terrorist Funding came into force in Estonia from 1st Feb, making the licensing requirements stricter. As per the new LawLaw, the definition of virtual currency service has become broader, operating fees have increased, documents requirements have increased for additional information, and several more.
Popular for proper and suitable approaches — Great Britain
Crypto and crypto operations related firms are treated as yet another business firm in the UK. With some modifications, the existing and easy procedure those firms need to follow to enter the country’s crypto space. The license in the UK is provided by the Financial Supervision Authority (FCA), which is in control of almost the entire crypto space in the region.
The regulatory authority, FCA, keeps an eye on all parties involved in activities from acquiring and selling cryptocurrencies through the KYC procedure. Additionally, it has a CDD procedure that is CDD that is used to identify risks and accordingly provide measures to counter those identified risks.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
