Cryptocurrency and Law: What Country Has the Strictest Regulations?

Huge popularity of virtual currencies and decentralized digital assets valued at hundreds of billions dollars is enough for traditional.economies and jurisdictions to start worry. Many governments still have no idea what to do with cryptocurrencies, some are very interested in blockchain and virtual assets and some want to get rid of as soon as possible. The Coin Shark often covers cryptocurrency regulation issues as they significantly affect the industry and will continue To.do so in the future. Today we will tell about some strict cryptocurrency laws and jurisdictions that really keep an eye on virtual money.

1. China

The Celestial Empire has recently joined the forefront of strict cryptocurrency regulations, while the government is trying to control this industry completely. It all started with ICO and exchange ban in autumn, 2017 and continued with restrictions on mining and access to all onshore and offshore Internet resources  dealing with cryptocurrency trading, “in order to prevent financial risks”. Besides, all crypto-related advertising has disappeared from chinese largest search engine Baidu, as well as other platforms. China`s phenomenon is that the country is actually one of the most important cryptocurrency market actors. According to Financial Times, three quarters of all bitcoins were mined in China by chinese pools as of January, 2018. Anyway, the time will show what will happen to virtual currencies in China but today the People’s Republic is probably the most crypto country with the most anti-crypto policy.  

2. Bolivia

Bolivian Central Bank banned bitcoin back in 2014, when the cryptocurrency industry “had just started”.

3. Colombia

In 2016, as so-called “investment clubs” kept on gaining popularity in the country, Colombia`s regulatory — Superintendency of Corporations decided to ban cryptocurrency payments to protect people from making investments in something that looks like fraud.

4. Ecuador

South America seems to be a rather crypto unfriendly area, as we go on with another state that adopted tough virtual currency restrictions. Though “Republic of the Equator banned cryptocurrency yet in 2015, the government expressed its interest in blockchain technology. They’ve announced that the country might issue its own cryptocurrency that would correspond to national money 1:1.

5. Kyrgyzstan

A tricky Central Bank of this asian state not only explained (as nearly everybody did) that “the sole legal tender on the territory of our country is the national currency of Kyrgyzstan – som” but also drawn a conclusion from this statement that the use of all virtual currencies is illegal and violates state laws.

6. Bangladesh

Like many regulators seeking to protect people and the country from illicit activities, Bangladeshi central bank stated that the use of cryptocurrency violates laws on money laundry.

The Coin Shark will keep you informed about crypto regulations. Subscribe to The Coin Shark news in Telegram: https://t.me/thecoinshark