By now, most people have at least heard of bitcoin. However, it is only one of many cryptocurrencies now available in the world. Bitcoin is accepted for purchases in some places, and there is now trading in cryptocurrencies in the marketplace.
As cryptocurrencies have become more popular and more well-known, governments around the world are trying to decide how they will regulate these currencies. The attitudes toward cryptocurrencies range from negative to positive to indifferent.
The United States
In the United States, the Securities and Exchange Commission has warned investors about investing in cryptocurrency. Some in the government are concerned that cryptocurrencies could be used for illegal activities.
Initially, some political candidates in the United States were accepting cryptocurrency donations. However, that practicing is slowly but surely waning. In fact, the state of Kansas has now banned candidates from accepting these type of donations.
Mexico is taking a dim view of cryptocurrency compared to the United States. The government has declared that cryptocurrencies are not legal tender and can only be traded as if they are a type of commodity. Additionally, cryptocurrency exchanges in Mexico must be regulated by banking authorities.
Countries with a more positive stance on cryptocurrencies
Some countries look more favorably on cryptocurrencies. Venezuela has actually created its own cryptocurrency called Petro, while the United Kingdom is creating a cryptocurrency called Royal Mint Gold.
Furthermore, in the Netherlands, two percent of the people have cryptocurrencies. In Ghana, the government is investing up to one percent of the nation’s reserves in cryptocurrency.
Nations taking a dim view on cryptocurrencies
China has taken the hardest line on cryptocurrencies thus far. The country’s leaders have banned cryptocurrency exchanges, as well as all bitcoin mining operations.
South Korea is introducing more and more regulations against cryptocurrencies. In January of 2018, South Korea banned any anonymous cryptocurrency trading accounts, though some of the negative outlooks have softened over time. Nevertheless, further regulatory action is expected in the near future.
While once having a more positive outlook on cryptocurrencies, India is now moving in the opposite direction. The government fears that the use of cryptocurrencies is enhancing the funding of illegal activities. Look for more and more regulations coming from India.
Cryptocurrencies are continuing to evolve. The overall trend around the world seems to be moving toward more and more governmental regulations. This appears to be due to fears that this type of currency is being used by those with nefarious intent.