Cryptocurrencies are the future of the global financial system, a future that is sometimes artificially hindered by financial regulators and national governments that are not ready to accept the presence of decentralisation and anonymity in their financial systems. Nevertheless, progress is inevitable, and cryptocurrencies have already made impressive progress in legalisation.
The legalisation of cryptocurrencies around the world is only a matter of time. Many countries, such as the U.S., Turkey, South Korea, Belarus, Ukraine, and Uzbekistan, have already decided positively. It is noteworthy that cryptocurrencies have long been under a ban in Turkey, and their legalisation occurred just recently – in the fall of 2021.
In the U.S., the cryptocurrency market is legal but regulated, and cryptocurrency exchange services require a government license. Naturally, it is taxed.
The European Union countries also show a positive trend. Legalisation took place in France, Germany, and Finland, with Luxembourg starting the movement as the first country to issue a law equating cryptocurrencies with traditional ones. To obtain a license, cryptocurrency exchanges must apply to the Ministry of Finance, and the Financial Sector Supervisory Commission (CSSF) regulates matters.
However, many countries in the world for which cryptocurrencies do not de jure exist. Among them: are Egypt, Nepal, Algeria, Bangladesh, and, oddly enough, China.
An analysis of global practice in this matter gives a pretty clear idea of the current situation: even in those countries where cryptocurrency exchange is legalised, a large amount of control, supervision, and regulation instruments have been created, which, to some extent, negate the primary advantages of cryptocurrencies - anonymity and decentralisation.
Digital national currencies
A vivid example of the state's attempt to regulate the cryptocurrency market is the creation of digital national currencies. More than ten states are implementing such projects. The digital yuan has passed the test of the Olympics.
Ukraine is ready to create its digital national currency. About 80 other countries are closely watching the experience of the pioneers and, if it proves positive, will implement their national cryptocurrency projects in a short time.
Collapse or coexistence
Thus, cryptocurrencies are growing in popularity around the world. In a short time, they have managed to make their way from a topic of interest only to enthusiasts to a technology discussed in the offices of heads of multinational corporations and high-ranking government officials. As for legalisation with mandatory restrictions by financial regulators, this is nothing short of a compromise that makes it easier for the conservative part of society and the establishment to accept cryptocurrency reality.
Cryptocurrencies are absolute freedom. And, above all, financial independence from monopolies, whose entire business is built on making money "expensive" for end-users. Cryptocurrencies are fast and affordable transfers worldwide, requiring only one device - a smartphone.
The legalisation of cryptocurrencies is just a matter of time. It is already well underway, and the legalisation of token transactions is just the tip of the iceberg. More importantly, the cryptocurrency industry's technology is becoming more widespread.