As economies of the world face a decline amid various global crises, the crypto market continuously rises. The digital coins are chosen as an option by many states and regions across the world. It has become a great alternative to other currencies today.
It is not only because of the pandemic that the coins are booming in terms of prices and quantity. There are many factors to why they are becoming popular in a lot of regions.
As crypto is used in more places across the world, the community steps closer to using Bitcoin and other coins in daily transactions. Read this article on all things crypto to know more!
New Bills and Rules for Crypto
Governments have begun to consider and pass bills to regulate digital assets and currencies in the process. The laws placed by countries can allow the crypto market to soar or even limit it.
Here are some examples:
The country recently passed a law on digital financial assets or DFAs. In it, DFAs were defined as ‘an aggregate of electronic data comprising money claims, negotiable securities, and rights to participate in the equity of a non-public company with shares’.
In a positive aspect, blockchain assets can be sold, inherited and exchanged legally. But, the law also notes that they can’t be used as payment for goods and services or a form of currency. As assets, they can also be taxed by the state.
Based on how the amendments to it are handled, it will dictate how the cryptos will be treated by authorities. There are still no provisions on the liability of those who will use crypto as payment.
As one of the leaders in digital adoption, South Korea may be one of the first countries to regulate and legalise cryptos and their exchanges. Aside from crypto, the country had many digital payments and ventures since the early 2000s.
The country’s officials have called for a change in their laws on financial services in the country. This will allow authorised agencies to oversee and create rules to support blockchain development.
Prior to this, many citizens have also joined the crypto craze. A huge chunk of their population owns Bitcoin, Ethereum and other altcoins. To support the growing venture, the state can let the market flourish with their help and keep it safe from money laundering.
March had become very generous to the Indian crypto market this year. It is because the two-year Bitcoin exchange ban on the country has been lifted. The news sent their local market to new heights, in terms of new coins bought.
The country’s laws are still not friendly to crypto-users, unlike the proposed laws in Russia and South Korea. But this development shows that the image of Bitcoin and other crypto is improving.
Free Market For Crypto
It is not only through rules that crypto can grow. As Bitcoin was initially created to be free from regulations, a free market can also be seen in some regions.
With neutral action from leaders, crypto is booming in Latin America and other places. Another factor that helped the coins develop there is their preference for foreign fiats instead of local ones.
Some developers have created apps to use blockchain tech and crypto in the finances of citizens of countries like Argentina, Mexico and Colombia. Locals have even opted to use the e-wallet instead of using banks.
Albeit a free market can come with a lot of scams and fraud issues, the competitive market allows developers and customers to have better services.
Wherever it is, the impact of these digital coins to economies can be heard loud and clear in news across the world.
Andrew is a writer that does most of his work on cryptocurrency-related topics. While he’s primarily interested in Bitcoin, he also follows major altcoins and the innovative ideas that new cryptocurrency and blockchain projects are bringing to the table.