The growth of crypto, especially in the last decade, has prompted the need for laws to regulate the sector. While Brazil remains the latest country to consider new crypto laws, it is not the first to do so.
Different countries have unique attitudes toward crypto. Some countries have even imposed total bans on the commodity owing to its volatility. China, a previous crypto hub, imposed extreme measures on anything to do with crypto.
However, Japan, a close neighbor to China, is pondering whether to lower taxes on the same commodity. The move to lower taxes is a regulator-sponsored one that will help curb massive exoduses by crypto and blockchain talents to other countries with lighter crypto laws.
Lighter crypto laws mean people can take advantage of a unique copy trading method to increase their chances of better returns in PrimeXBT or other trading sites.
What Is The State Of Crypto Regulation?
Most countries, especially those with insignificant crypto transactions, have yet to legislate against crypto. Crypto players in those countries have complete access to crypto commodities such as Bitcoin using foreign exchanges and trading platforms such as PrimeXBT.
However, for the countries topping the crypto charts in exchanges, crypto laws exist to regulate the movement of the commodity and the rising crime rates in the industry.
India was previously pondering on when to release its central bank-backed digital coin to help it impose a complete crypto ban. While the discussions are on the table of when to release the coin, crypto firms are having a hard time understanding the future of their operations in the country. Before 2021, the country was pondering an outright ban on crypto, to follow the steps taken by China.
However, the Delhi-based government wanted to retain the benefits of the underlying technology that fuels crypto transactions. The expected partial ban on crypto commodities did not materialize, but the country opted for new taxes on any crypto transaction in the country to raise money for the economy battered by COVID.
Countries where Crypto is Legal Tender
El Salvador was the first to appreciate the potential of Bitcoin as an exchange tool. The country announced the promotion of crypto as a legal tender in 2021. The legal status of crypto in that country is that it can similarly buy goods and services as fiat currency.
The Central African Republic is another country that has passed legislation to add crypto as legal tender alongside its fiat currency, the CFA franc. Crypto investors in the country have no limits to what they can do with their crypto, coupled with the higher chances of increasing returns when holding the commodity in a private wallet. People in countries that support crypto can also use trading platforms like PrimeXBT without many limitations.
What Are The New Crypto Laws In Brazil?
The proposed Brazilian crypto laws seek to promote crypto assets in the country, unlike many other legislations that want to limit or entirely do away with the commodity. The most notable fact is that the country wants to exempt some costs to crypto exchanges that show 100 percent use of clean energy. If the bill passes the law-making process and becomes law, it will be the first to recognize crypto miners as any other worker.
The law also has some caveats that deal with crypto scammers. Newer crypto legislation proposes tough penalties on people who knowingly advance crypto frauds in the country. People found to commit such crimes will get harsher penalties, unlike before, when no laws existed to prosecute such acts.
What Is The Impact Of The Legislation To The Crypto Community?
South American countries are often crypto-centric. Like Brazil, Venezuela is another country that appreciates the potential of cryptocurrency. For Venezuela, the love did not stem from constitution changes but from tough-economic sanctions imposed on it by Western societies. Venezuelans have used crypto as a hedging tool to protect the dwindling value of their wealth that is Venezuelan Bolivar dominated.
In 2022, when the Venezuelan economy started reeling from economic sanctions, the local currency plummeted from its peak value of fewer than 0.1 points versus the dollar to highs of 5.7 as of August 2022.
The Turning Point
Crypto has had a massive climb in the last decade, opening a non-legislated sector that supported criminal activities. Newer legislations, most coming up in the previous five years have grown to combat the negatives and enhance sanity in the industry. Therefore, the future of crypto looks greener and much safer.
The rapid growth of the crypto sector has pushed governments to take various actions. While some governments have taken a negative approach to do away with the commodity entirely, some have embraced it as a source of opportunities for young people.