Cryptocurrencies : Countries which recognize digital currencies include Japan, Canada, Singapore and Switzerland. Japan was one of the first to acknowledge Bitcoin as a legitimate form of payment and established a regulatory framework for cryptocurrency exchanges; Canada followed suit and has taken proactive steps toward regulating this industry; Singapore welcomed digital currencies with an introduction of a regulatory framework designed to ensure their use was safe and secure.
1) The United States
Although America is hesitant to fully embrace cryptocurrency investments, steps have begun to be made towards their adoption. The Securities and Exchange Commission (SEC) has taken an active stance against investing in cryptocurrencies by issuing several warnings of their risks and creating an framework to register cryptocurrency exchanges so as to protect investors.
2) The European Union
The European Union has taken an approach that is both cautious and proactive when it comes to cryptocurrency: both published guidelines on how to regulate them as well as created a licensing system for cryptocurrency exchanges. Meanwhile, the European Central Bank issued a warning about investing in virtual currencies and advised caution when handling them.
Canada has taken an innovative and supportive stance toward cryptocurrency, and has become one of the most crypto-friendly countries globally. Canada recognizes digital currencies as legitimate forms of payment and takes a proactive approach towards regulating them; creating both an exchange-regulated framework as well as licensing systems for startups that use cryptocurrencies.
Australia has been an innovative leader in the cryptocurrency space and has taken steps to legitimize it. The Australian Securities and Investments Commission (ASIC) has implemented regulations governing cryptocurrency exchanges as well as processes for verifying identity of customers. Furthermore, Australia recognizes digital currencies as legitimate forms of payment and has taken measures to safeguard investors.
France has taken an ambitious step toward legalizing cryptocurrency, becoming one of the world’s most crypto-friendly nations. The French government has recognized digital currencies as legal payment, while also setting up regulations to oversee them and regulate exchanges regulated by AMF, which also has processes in place for verifying customer identities.
Switzerland has taken bold steps to legalize cryptocurrency and become one of the most crypto-friendly nations worldwide. Their government recognizes digital currencies as legal forms of payment and has established an effective framework for their regulation by Swiss Financial Market Supervisory Authority (FINMA), including providing guidelines for cryptocurrency exchanges to comply with regulation as well as verifying customer identities.