Thinking of buying some crypto? There are some things you’ll need to know before you jump on your favorite crypto trading platform.
It’s impossible to discuss or consider crypto trading platforms options without toying with the idea of engaging in cryptocurrencies. These incredible digital currencies have boomed in recent years, with the global adoption market to reach a sky-high estimated value of $57 million by 2025.
The market has captured the interest of investors and retail traders of all demographics, geographic, and ages. Setting the stage for a digital revolution that may well reach nearly all corners of the earth.
Crypto trading platforms like Bitvavo have opened the door for any invested party, allowing for a number of the most popular coins and tokens to be traded with ease and security. But even with the introduction of user friendly and newbie focused trading platforms, not everyone has been able to get in on the fun.
Cryptocurrencies are still considered highly volatile and speculative— an attribute that can be supremely favorable for some investors, and ones that can serve to give governments more than enough reason to ban them entirely.
Despite the overwhelming evidence that cryptocurrencies like Bitcoin are secure and no more likely to be used for nefarious activity than fiat— some legislative parties remain unconvinced. So, if you’re planning on investing, you’ll need to fully understand the regulations that will apply to you.
Countries that Love Crypto
● South Africa
● United States
● Costa Rica
● Trinidad and Tobago
● Bosnia and Herzegovina
● Hong Kong
● South Korea
● Czech Republic
● North Macedonia
● United Kingdom
● New Zealand
As you can see, there are a huge number of countries across the world that view cryptocurrencies and crypto trading platforms as entirely legal. Some of these countries have introduced framework and favourable legislation for the regulation of cryptos, and others simply allow users to interact with crypto in the ways that they see fit.
In countries like the UAE, crypto has long been a contentious subject, but governments have created new regulations regarding crypto incredibly recently allowing for more diverse trade and usage of digital currencies.
Which just goes to show that crypto adoption and legality can vary hugely, not just from country to country— but also from month to month. It’s important to keep this in mind when transacting crypto in any country; you’ll want to keep up to date on the latest rules and regulations to ensure that your crypto stash is fully protected by the letter of the law.
Murky Waters of Lukewarm Acceptance
- Saudi Arabia
In countries like Russia and China, bitcoin and other cryptos can be both legal and illegal depending on how you are using them. In Russia, for example, crypto is legal to mine, but most Bitcoin trading platforms are blocked and banks are banned from engaging with digital currencies, leaving citizens in a highly unstable legal grey area.
In China, regulations are even more unclear, as digital currencies are considered legal, but there is a full-on banking ban, mining is ambiguous, and most trading platforms have been shut down.
In Taiwan, a banking ban is also instituted and citizens are encouraged not to adopt digital currencies, as they are speculative assets that cannot be guaranteed or regulated.
While few of these countries outright disallow the use of cryptocurrencies, and the usage of crypto trading platforms for trading them or investing in them can be incredibly difficult, as access to crypto on-ramps are scarce. It can also prove difficult for people to find ways in which to buy these currencies, as banked funds cannot be used to purchase crypto— even from peer to peer networks.
Where Are Crypto Trading Platforms Banned?
In any one of these countries, crypto assets are an absolute no-go. Where purchases are not only nearly impossible to make, but if users are found, their assets can be seized and, in some places, they can even be lawfully penalized.
While cryptocurrency laws and guidelines change every day, interested parties in these countries should keep an eye out for any favorable initiatives, but shouldn’t engage in purchase until prohibitions have been fully lifted.
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Author: Thomas Wiggins