- CoinGecko research indicated that cryptocurrency is legalized in more than half of the world’s countries.
- Europe is in the lead, with 39 out of 41 countries legalizing cryptocurrency within their borders.
- Only 62 out of the 119 countries where cryptocurrency is legal have clear regulations in place
The world’s largest independent cryptocurrency data aggregator, CoinGecko, embarked on a massive research project to establish where cryptocurrency is legal versus illegal. CoinGecko’s findings suggested that cryptocurrency is currently legal in 119 countries, meaning that more than half of the world’s nations have embraced the technology.
It is worth noting that 64.7% of the countries that have decided to legalize cryptocurrency are emerging and developing countries located in Africa and Asia. However, out of the 119 countries that have legalized these digital assets, 16.8% have imposed bank bans, restricting banks from interacting with cryptocurrency users and exchanges.
Meanwhile, Europe emerged as the leader in cryptocurrency legalization, with 39 out of the 41 countries acknowledging its legitimacy. The sole exception is North Macedonia, where cryptocurrency remains illegal.
In the Americas, 24 out of 31 countries have decided to recognize cryptocurrency as legal, with Bolivia being the exception in this case. In Africa, only 17 out of the 44 countries have legalized cryptocurrencies, while 35 out of 45 Asian countries have decided to do the same.
It is important to note that CoinGecko’s research found that only 62 out of the 119 countries that have legalized cryptocurrency have comprehensive regulations in place. Nevertheless, CoinGecko noted that it was a huge increase from the 33 countries that had regulations in place back in 2018.
Some nations have decided to adapt the already existing regulatory framework rather than establish new regulations. Tax laws and anti-money laundering regulations were some of the most favored approaches to handling cryptocurrency in many countries.
Two countries, El Salvador and the Central African Republic (CAR), stood out from the rest as they have adopted cryptocurrency as legal tender. The report mentioned that El Salvador embraced Bitcoin and its technology and passed the Digital Securities Law to classify Bitcoin as a “digital commodity.”
On the other end of the spectrum, 22 countries have banned the use of cryptocurrency within their borders. Interestingly, some of these countries, including Egypt, Nepal, and China, are ranked among the top countries when it comes to cryptocurrency adoption.
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