The cryptocurrency experts on EXMO continue talking on the cryptocurrency legalization.
You can learn about the legal status of cryptocurrencies in different countries and problems of cryptocurrency market regulation in the article “Legalization of cryptocurrencies. World bitcoin status”
Cryptocurrency legalization: approaches
There are several possible systems to legalize cryptocurrencies. There are countries, where cryptocurrencies are regulated likewise foreign currencies (for example, in Switzerland). In some countries, cryptocurrencies are considered as payment means, or financial services (the USA, Finland, Sweden, and “private money” in England), products, or property (Israel or Australia). By the way, the appreciation of the regular foreign currencies as property can also be found within legal environment; it is mostly applicable to the ex-USSR countries.
The attribution of the status of the securities to the digital money is also possible; we have already discussed the cases of Israel and Switzerland.
Apart from the mentioned approaches of cryptocurrency legalization including the systematic cooperation of the governmental and international institutions, there are the other, no less important, approaches.
Along with the cryptocurrency status identification and their legal grounds set up, there are the other approaches mostly concerning the expansion of the digital currencies use in the spheres, where no “non-governmental” currencies were traditionally allowed.
The matter is about the traditional exchanges, to the trading of which the access has been always limited for any non-typical financial instruments. Nevertheless, a high level of the stock market regulation did not exclude the possibilities for manipulations and legislation breaches among the participants, having prioritized market laws.
The numerous attempts to dispose bitcoin or any other core cryptocurrencies on the stock exchanges failed. The financial regulators blocked such attempts explaining it by the excessive bitcoin rate volatility or bitcoin insecurity.
All in all, the market made the corrections and the Bitcoin market propagation supporters managed to dispose bitcoin futures
on a few exchanges. That is, above all, can be thought as a considerable progress on the way of its market legalization.
The bitcoin allowance to the traditional exchanges in its full value is ahead. In any case, bitcoin is on its way to reach this purpose.
How to buy bitcoin in the countries, where its turnover is banned?
The digital economy is characterized by the absence of the boundaries. Though some jurisdictions have been attempting to set the frontiers in the world of digital technologies, it is hardly reachable purpose due to the range of the objective reasons.
Thus, the use of all cryptocurrencies, except of the “governmental” coin SDE, is completely illegal, and serves a subject to the legal prosecution with confiscation in Ecuador. Nevertheless, the investors still manage to find the possibilities to work with the digital assets.
For example, such online P2P exchange platforms as LocalBitcoins are used, as well as some online-stores. Apart from the bank transfers, which are monitored with ease by the regulators, the opportunities of Paypal and the other electronic payment systems are applied to transfer the fiat funds to the foreign cryptocurrency sellers.
When using such resources, a bitcoin purchase is masked under the regular online-purchase, which helps to circumvent a local banking law to some extent. Though it is illegal, some companies in Ecuador do accept payments in Bitcoin.
Though the cryptocurrency turnover is completely banned and prosecuted in the People’s Republic of Bangladesh, digital assets trading is assured through the numerous channels of the mobile banking. Though government and banks have been attempting to ban such activity and monitor buyers, these attempts still fail.
Obviously, regardless of a jurisdiction of that or that one country, the more restrictions are put under the growing interest to the crypto-market, the more instruments and methods for trading and market penetration appear for those participants, who are interested in this type of activity.
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Additional materials that may help you:
Bitcoin futures: features and perspectives
Bitcoin Gold: how to buy and where to keep? FAQ
10 mistakes of a trader. How to avoid them?
Cryptocurrency rate changes: reasons and factors
Place of cryptocurrency in digital economy
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Your respectfully, EXMO team
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