As the global popularity of cryptocurrency and digital assets continues to rise, many see the need for regulation as the key stepping stone to securing its practical use; but which country is making the greatest progress in ensuring the safety and security of cryptocurrency?
A new fintech insight by Suggest Forex answered that question for us with a breakdown of the global regulatory landscape around the world.
His classified discoveries OECD nations on five regulatory factors, including the viability of cryptocurrency ownership, the need for licensed crypto businesses, tax rates, point-of-sale acceptance rates, and whether the central bank of the country was working on a cryptocurrency project or not.
These deciding factors have been used to identify the countries that impose the strictest cryptocurrency regulations, as well as those that are currently falling behind.
So let’s name names.
Gold stars everywhere for Australia, South Korea, UK, USA, Denmark, Japan and Norway, this group of countries fulfilling all five factors.
According to the preview: “Seven OECD countries scored perfect for the categories we looked at, all legalizing crypto ownership, requiring licensing of crypto activities, taxing crypto as an asset and being widely used to purchase goods’.
He continued, “Their central banks are also developing their own digital currencies, protecting investors by offering less volatile alternatives to traditional cryptocurrencies.”
Responding to four of the five factors are Chile, Sweden, Turkey, Mexico, Austria, Canada, Colombia, France, Germany, Greece, Israel, Netherlands, Spain, Belgium, the Czech Republic, Estonia, Finland, Ireland, Italy, Lithuania, New Zealand and finally Poland.
The idea states that the majority of these 21 countries have lost full rankings due to the lack of cryptocurrency development present in their central banks.
Turkey is also on the list, with Insight highlighting its attitude towards cryptocurrencies as “the most mixed”.
He explains that while possession of cryptocurrency is not illegal in the country, no oversight or regulatory authority currently exists. “To combat this, the government has demanded the details of users of the trading platform to protect them from fraud,” he continues.
Mexico, Latvia, Portugal, Hungary and Switzerland come last after meeting only three of the five factors.
Insight explains this move as being due to the fact that the majority of these countries do not require crypto businesses to register with the government or qualify for a license, as such a lack of government oversight can harm investors.