China isn’t the only nation that has prohibited the use of digital currencies.
According to the November report, since the study was initially published in 2018, the number of nations prohibiting cryptocurrency has considerably increased.
Currently, nine nations have an outright prohibition on cryptocurrency, making it illegal, while 42 nations have an implied prohibition on crypto, preventing financial institutions from engaging with it. This takes the overall number of nations with an absolute prohibition to 51, more than double in 2018 when just eight countries had an explicit prohibition, and 15 had an implicit prohibition.
The research has banned cryptocurrency in Algeria, Bangladesh, China, Egypt, Iraq, Morocco, Nepal, Qatar, and Tunisia. With its crackdown early this year, China, the world’s second-biggest economy, roiled cryptocurrency markets.
Although the nation has been taking steps against digital assets for years, its crackdown in May and June on financial institutions transacting cryptocurrency and cryptocurrency mining triggered a sharp decline in the price of digital currencies.
According to Tim Frost, CEO of fintech platform Yield App, other nations are adopting cryptocurrency, who recently told Insider that there is no shortage of them, balancing measures by governments like China that have been unfriendly to digital assets.
As per CoinGecko statistics, the cryptocurrency market has grown to more than $US2.5 ($AU3) trillion this year, momentarily surpassing $US3 ($AU4) trillion this quarter. According to the research, with its rapid expansion, more nations are incorporating cryptocurrency into their tax systems.
According to the report, the United States, which is still figuring out how to control the industry, enacted tax, anti-money laundering, and terrorist funding legislation.