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Cryptocurrencies, mainly Bitcoin, have made significant headway over the course of this year.
The leading crypto asset has seen its price surge to over $10,000 as institutional investors pour their funds into the cryptocurrency.
The price rise experienced by Bitcoin, coupled with a troubled money market, has led investors to perceive the cryptocurrency as a safe haven asset and as a result, its trade has picked up.
Crypto friendly nations increasing in number
Crypto trading has benefited from the rising number of countries that have put crypto friendly policies in place.
There are many countries across the world that have begun recognizing cryptocurrency as a part of their financial systems and in turn, they have developed regulatory frameworks to accommodate the digital asset class. These policies have lead to the growth of online cryptocurrency trading in these countries.
China is one of the leading countries in terms of cryptocurrency. The Asian country holds about 72% of the world’s Bitcoin mining power, and the highest number of investments into crypto projects comes from China.
The Chinese government, through the country’s central bank, is developing its own digital asset which will see Chinese citizens make use of crypto in their daily activities.
Countries such as Portugal and France have created tax laws that are designed to foster the growth of the crypto industry. It was recently announced that cryptocurrency earnings would no longer attract any tax in Portugal. Crypto payments and trading have also been declared 100% tax free in the country.
In France, the country’s finance minister said that all crypto to crypto transactions would be exempt from taxation. Such policies take a progressive approach towards cryptocurrency as these nations aim to reap the benefits of digital currencies.
BREAKING: Bitcoin trading and payments are tax free in Portugal!
There's no income tax on cryptocurrency earnings in the country, as just declared by the Portuguese Tax Authority
Bitcoin adoption will become the next space race!
— Rhythm (@Rhythmtrader) August 29, 2019
US and UK stifling crypto growth
While many countries have taken a progressive approach towards cryptocurrency, there are some that have created negative policies.
The US is a prime example of a country that is becoming increasingly negative towards cryptocurrencies. This is despite the country having the highest number of crypto traders and the potential to become an industry leader.
A few months ago, President Donald Trump came out to slam crypto assets. American regulatory bodies have put in place policies that have seen several crypto related businesses exit the American market.
US traders have limited options when they want to buy cryptocurrencies on the web because several crypto exchanges have been barred from providing services to US clients.
I am not a fan of Bitcoin and other Cryptocurrencies, which are not money, and whose value is highly volatile and based on thin air. Unregulated Crypto Assets can facilitate unlawful behavior, including drug trade and other illegal activity….
— Donald J. Trump (@realDonaldTrump) July 12, 2019
The UK’s Financial Conduct Authority (FCA) seems determined to ban the trade of crypto derivatives products.
With a no-deal Brexit on the horizon, it is likely that the crypto industry in the country will face even greater challenges as the UK develops its own regulatory frameworks independent of other European countries.
While other nations have made it a point to accommodate cryptocurrencies and encourage the industry’s growth, these two giants are making it hard for industry players in their jurisdictions to grow along with their competitors across the world.