Although EXMO.com does not expand its list of cryptocurrency pairs as often as other exchanges do, it offers its users low transaction fees and demonstrates high trade volumes, in comparison to the exchange’s size. In addition, EXMO’s newsfeed often features interesting general knowledge articles. We are taking the liberty of reposting one of them.
The issue of cryptocurrency legalization (which means that cryptocurrencies get the legal status both in the particular countries and international financial institutions) appeals not only to the crypto-community. The solution of the stated issue will also predetermine the perspectives of the digital economy development, which is getting more and more powerful in the global economy as well as in life of every individual person.
EXMO experts have summarized the information on the issue of cryptocurrency legalization, its aspects, and importance of this process for the whole market participants.
Legal status of cryptocurrencies. Control and difficulties
|Legal regulation of the cryptocurrency market will protect the interests of every user, who have become the bitcoin owner, altcoins owner, or ICO investor, in many aspects.|
The regular users are quite uncertain whether they may rely on the law in case of any problem concerning crypto-exchanges, ICO, or cryptocurrency management in general. The miners and traders are also rest in the risk-area, due to the fact that they are concerned with the issue of the crypto-profit “nature”. The continual difficulties with supplies of the new equipment for the mining farms is another problem. Remind that mining, as a kind of activity also requires the initial investment, which cannot be legally protected at the moment.
Legal systems of many countries cannot clearly determine whether cryptocurrency is legal or not. One the one hand, it is not forbidden, on the other – it is not allowed due to the accurate identification of “What is cryptocurrency?” does not yet exist. Thus, the legal environment governing cryptocurrency has not been worked up.
The large businesses working with cryptocurrencies one way or another need not only the general legal certainty but favorable governmental position as well concerning the issues of crypto-economy legal control.
A lot of market participants including active market traders, regulatory institutions, international financial institutions, banks, which are participating indirectly in the market activities would approve the measures taken for cryptocurrencies exit from the “legal shade”.
Here below we will discuss countries, where cryptocurrency is allowed, and how some governments and financial regulators reacted on the availability of digital money in the financial payment system.
What is also important is that mostly developed countries have supported cryptocurrencies one way or another. These are the countries that are open to the innovations and contribute to them; they also point out the long-term perspectives of the global economy development.
Be support or be banned
The active spread of interest to cryptocurrencies suggests the innovative economics to make specific decisions and actions, which is likely to have a positive impact on the market and its further perspectives. There are also people, who are ambitious about leading the “trendy” movement among the international market participants. Through creating the favorable and transparent conditions for business and market participants, attracting investment, these countries are pressing the gear even now. That is the case of Switzerland.