Summary of the Crypto Industry Legalization Process in 2024: Legalization and Regulation

6 min readFeb 7, 2024

Abstract

According to a new study published by CoinGecko, 119 countries and 4 British Overseas Territories have now legalized cryptocurrencies, accounting for more than half of the world’s countries.

Then I look at the percentage of legalization by region:

· Emerging and developing countries in the Asian and African continents account for 64.7% of cryptocurrency legalization;
· Of the 45 countries in Asia, 35 recognize the legitimacy of cryptocurrencies;
· Only 17 out of 44 countries in Africa have legalized cryptocurrencies;
· 39 countries in Europe recognize the legitimacy of cryptocurrencies, with only Northern Macedonia being the only country in Europe that currently bans cryptocurrencies;
· 24 out of 31 countries in the Americas recognize the legality of cryptocurrencies, with Bolivia being the only country that considers cryptocurrencies illegal.

In terms of general statistics, 123 countries and territories have recognized the legalization of crypto, which is 52.3% of the global total (235 countries), and the process of crypto-legalization is more than halfway through.

Europe leads the way, with 39 countries recognizing the legality of cryptocurrencies！

Europe is at the forefront of global cryptocurrency legalization, with 39 (95.1%) of the 41 countries analyzed recognizing its legality. Northern Macedonia is the only European country where cryptocurrencies are illegal, while the status of Moldova remains unclear.

Of the 31 countries in the Americas, 24 (77.4%) recognize cryptocurrencies as legal. Bolivia is the only exception that considers cryptocurrencies illegal. Six countries in the Americas — Guatemala, Guyana, Haiti, Nicaragua, Paraguay and Uruguay — have yet to establish an official position on cryptocurrencies.

In Africa, only 17 out of 44 countries (38.6%) have legalized cryptocurrencies, while 35 out of 45 countries (77.7%) in Asia recognize cryptocurrencies as legal.

Legalization inevitably comes with regulation, so how many countries have explicit crypto regulatory legislation?

According to statistics from Winifred Amase, of the 119 countries where cryptocurrencies are legal, only 62 (52.1%) have comprehensive regulations. This number has increased by 53.2% since 2018, when only 33 jurisdictions had cryptocurrency regulations in place.

Of the 62 countries with regulations in place, 36 (58.0%) are separate countries, 22 (35.5%) are members of the European Union (EU), and four (6.5%) are British Overseas Territories. Notably, half of these countries are developed economies and the remaining half are emerging and developing economies.

Let’s expand to see how these countries with crypto legalization and regulatory legislation stack up:

Germany

In Germany, cryptocurrency assets are defined as private currencies. With their help, commercial companies and banking structures can pay each other. At the same time, you are subject to VAT for all purchases paid for with Bitcoin, while cryptocurrency transactions themselves have not yet been taxed.

Germany was one of the first EU countries to regulate digital assets on a legal level. The issuance, holding and trading of digital currencies, as well as mining, is legal. At the same time, certain standards apply to the issuance of cryptocurrencies and their licensing.In 2017, Germany officially recognized digital currencies as financial instruments. Therefore, at the moment, it is quite possible to pay with Bitcoin there.

Japan

Back in 2017, after the collapse of the Mt. Gox exchange, Japan began to develop a regulatory framework for the supervision of cryptocurrencies. At that time, traders lost about 850,000 Bitcoins. Then, in the spring of 2017, authorities officially recognized digital currencies as a legitimate payment method for goods and services.

However, it wasn’t until the spring of 2017 that Bitcoin was legally considered a currency. It was then recognized as legal tender and is no longer considered a commodity asset. Cryptocurrency exchanges also have official status. They must be licensed and must comply with legal requirements in the field of combating money laundering.

Japan is one of the key countries for the development of digital currencies. The headquarters of the popular internet service Bitcoin.org, developed by the founders of the BTC blockchain Martti Malmi and Satoshi Nakamoto, is also located here. Today, Japan is one of the most liberal countries in the field of cryptocurrency regulation. Forbes magazine even wrote that it is “an advanced Bitcoin country.”

Italy

Among the 27 countries of the European Union, Italy can be considered a leader in the use of Bitcoin in transactions. According to Coinmap, more than 15% of all stores in the world that accept crypto payments operate in this country. In addition, Italy has 39 crypto ATMs and a program focused on developing a bitcoin payment system. It is already actively replacing the euro in payment transactions in the country.

Spain

Cryptocurrency became a legal form of electronic payment in Spain in early 2014. in 2016, the state passed a law requiring miners to register for licenses and pay taxes.

Canada

In Canada, Bitcoin and other digital assets are not legally considered a form of payment. At the same time, you can use cryptocurrency to pay for goods and services. Bitcoin ATMs operate across the country. Additionally, you must pay taxes on income earned from investing in digital assets.

Malta

In this country, cryptocurrency is considered a mature market instrument. The Ministry of Finance has even created new laws to regulate the circulation of e-money. In addition, bills have been created to regulate the behavior of ICOs. Cryptocurrency companies have also been legalized here, and citizens of this country can use coins in payment transactions.

Norway

In Norway, cryptocurrencies were recognized as digital assets back in 2013. in 2017, the government eliminated the VAT on all purchases and sales of bitcoin and other digital assets.

El Salvador

Cryptocurrencies were officially recognized in September 2021 in El Salvador. Furthermore, despite various protests and criticisms within the country, cryptocurrencies continue to be equated with payment methods on par with the U.S. dollar. Business organizations and other companies are actively introducing Bitcoin as a payment method for services and goods. Additionally, citizens can download the Chivo app, which was specifically designed by the government to promote digital currencies. New users can receive a $30 Bitcoin welcome bonus for installing this app.

United States

Cryptocurrencies were legalized in the United States in 2017. At the same time, all transactions with torrents and bitcoins are taxed. You are required to pay local and federal taxes on income earned from mining, investing, or exchanging cryptocurrencies for goods. Large cryptocurrency exchanges operate in the U.S., including Poloniex, Bittrex, and others.

Ukraine

In September 2021, Ukraine passed the Virtual Assets Law, which provides for the regulation of virtual currency trading. In addition, preparations are underway to amend the tax code, which will regulate the taxation of electronic asset transactions.

Philippines

In the Philippines, the cryptocurrency market became regulated back in 2017. All cryptocurrency exchanges must be registered and licensed to begin operations. In addition, annual reports must be submitted to the regulator. In the Philippines, any type of e-currency has the status of a financial instrument and you can use it for any type of payment.

Switzerland

The country’s parliament began discussing cryptocurrency regulation back in 2013. Since 2016, the city of Zug has started accepting Bitcoin as a payment method for public services. Crypto businesses are becoming very popular here thanks to the country’s progressive legislation.

Belarus

In this country, the legalization of cryptocurrencies took place at the end of 2017. Then the law “On the digital economy” was enacted. At the same time, the cryptocurrency market was exempted from taxes until 2049. Citizens of the country can store and exchange digital currencies, as well as buy and sell them without having to declare their transactions. 2020, the Central Bank of Belarus launched an online trading service for virtual assets.

Summary

The process of legalization of the crypto industry is an important reference indicator for the development of the crypto industry. The legalization of cryptocurrencies means that the government recognizes the legitimacy of cryptocurrencies and puts them under the scope of regulation. This is a positive sign for the cryptocurrency market as it increases investor confidence and market transparency. However, the cryptocurrency market still has a number of risks and challenges, such as price volatility, security issues and regulatory uncertainty. Therefore, the government needs to take measures to protect the interests of investors and the stability of the market.