As the worldwide popularity of cryptocurrency and digital assets continues to rise, many view the necessity for regulation as the key stepping stone to securing its practical use; but which country is making the biggest strides in ensuring the safety and security of cryptocurrency?
A new fintech insight by Forex Suggest has answered this question for us with a breakdown of the global regulatory landscape around the world.
Its findings ranked OECD nations on five regulatory factors, including the viability of cryptocurrency ownership, the necessity for licenced crypto businesses, tax rates, point-of-sale acceptance rates and if the country’s central bank was working on a cryptocurrency project or not.
These deciding factors were used to pinpoint the countries imposing the tightest cryptocurrency regulations, as well as the ones that are currently falling behind.
So let’s name names.
Gold stars all around for Australia, South Korea, United Kingdom, United States, Denmark, Japan and Norway, with this group of countries meeting all five factors.
As per the insight: ‘Seven OECD countries achieved a perfect score for the categories we looked at, with all of them legalising the ownership of crypto, requiring a licence for crypto business, taxing crypto as an asset, and being widely used to purchase goods’.
It continued with: ‘Their central banks are also developing their own digital currencies too, protecting investors by offering less volatile alternatives to traditional cryptocurrencies’.
Meeting four out of five factors are Chile, Sweden, Turkey, Mexico, Austria, Canada, Colombia, France, Germany, Greece, Israel, the Netherlands, Spain, Belgium, the Czech Republic, Estonia, Finland, Ireland, Italy, Lithuania, New Zealand and lastly Poland.
The insight says that the majority of these 21 countries lost out on a full ranking due to the lack of cryptocurrency development present in their central banks.
Turkey is also on the list, with the insight underlining its attitude to cryptocurrencies as being ‘the most mixed’.
It explains that while ownership of cryptocurrency is not illegal in the country, no supervisory or regulatory authority currently exists. ‘To combat this, the government has demanded the details of trading platform users to protect them from being defrauded’ it goes on to say.
Coming in last place having met only three out of the five factors are Mexico, Latvia, Portugal, Hungary and Switzerland.
The insight explains this decision as due to the fact that the majority of these nations don’t require crypto businesses to register with the government or qualify for a licence, with such a lack of governmental oversight being of potential harm to investors.