Europe Leads With 96.1% Legalization; Bank Bans Prevail in Some Countries

Bits Logics Team . 09th Dec 2023
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  • 119 countries and four British Overseas Territories are currently embracing the legitimacy of digital currencies. 
  • 64.7% of the countries embracing cryptocurrency are emerging and developing nations.
  •  20 out of the 119 countries have implemented bank bans, restricting financial institutions from engaging with cryptocurrency exchanges or users.

According to CoinGecko, the global cryptocurrency landscape has witnessed remarkable strides, with 119 countries and four British Overseas Territories currently embracing the legitimacy of digital currencies. 

A closer look at the data reveals that 64.7% of the countries embracing cryptocurrency are emerging and developing nations, primarily hailing from the Asian and African continents. However, a nuanced trend emerges as 20 out of the 119 countries have implemented bank bans, restricting financial institutions from engaging with cryptocurrency exchanges or users.

Europe emerges as a frontrunner in the global embrace of cryptocurrency, with an impressive 95.1% of the 41 analyzed countries acknowledging its legitimacy. North Macedonia remains the sole European exception, while Moldova’s stance on cryptocurrency legality remains unclear.

Moving across the Atlantic, 77.4% of the 31 countries in the Americas recognize cryptocurrency as legal, with Bolivia being the only outlier, deeming digital currencies illegal. Meanwhile, six American nations—Guinea, Guyana, Haiti, Nicaragua, Paraguay, and Uruguay—have yet to establish their official stance on cryptocurrency.

In Africa, 38.6% of the 44 countries have legalized cryptocurrency, while in Asia, 77.7% of the 45 countries recognize digital assets as legal tender.

A notable revelation from the CoinGecko research is that out of the 119 countries where cryptocurrency is legal, only 52.1% have comprehensive regulations in place. This marks a significant increase from 2018, when only 33 jurisdictions had established regulations, showcasing the evolving nature of the regulatory landscape.

Of the 62 countries with defined regulations, 58.0% are individual nations, 35.5% are part of the European Union (EU), and 6.5% are British Overseas Territories. Interestingly, half of these countries fall into the category of advanced economies, while the remaining half are emerging and developing economies.

Even more intriguing is the inclusion of countries with outright cryptocurrency bans in the top 30 of Chainalysis’ 2022 Global Crypto Adoption Index. Egypt, Nepal, Morocco, and China defy legal restrictions, ranking high in terms of cryptocurrency usage, showcasing a paradoxical scenario where certain nations exhibit significant crypto engagement despite legal constraints.