While some governments don’t recognize digital currencies or gently bring them into ordinary life, others are aggressively incorporating them into their financial systems.

Many countries have passed legislation on virtual money in recent years. They completely let citizens use cryptocurrencies. However, nations that have legalized digital currency usually have stringent legal laws controlling blockchain technology, according to buidlbee.com. Meanwhile, many members of the Bitcoin community are eagerly awaiting the international legalization of virtual assets.

Japan

The cryptocurrency industry has been supported in the country for a long time. Japan is a key state in the development of virtual coins. According to some reports, the developer of Bitcoin, Satoshi Nakamoto, is a citizen of Japan. This information has not been officially confirmed.

Following the story of the infamous Mt.Gox, Japan began to properly investigate the problem and concluded that BTC should be authorized. A lengthy discussion of the plan's execution resulted in Bitcoin's official recognition on May 4, 2016. Despite the fact that it was not technically a currency, Bitcoin has become a digital means of payment. The new regulation requires cryptocurrency exchanges to register. They must also be registered with the Japan Financial Services Agency.

In 2020, Japan named the Minister of Technology and Science. He is in power to determine the policy in relation to different blockchains. After that, residents of Japan and other users of digital assets began to expect further development of such technologies.

Germany

Cryptocurrency assets are described as private money here. Commercial companies and financial structures can make payments to one another with coins. At the same time, you must pay VAT on all Bitcoin purchases. Furthermore, Bitcoin transactions are not yet taxed.

Germany was one of the first EU countries to legalize digital assets. The creation of digital money, its possession and exchange, as well as mining, are all legal. Simultaneously, certain rules are applied to the issuance and licensing of cryptocurrencies. Germany formally acknowledged digital money as a financial instrument in 2017. And it is now possible to pay using Bitcoin here.

Italy

Among the 27 countries of the European Union, Italy can be called the leader in the use of BTC in transactions. All this despite the fact that at the beginning of 2018, the Italian Ministry of Economy and Finance published a bill on the regulation of cryptocurrencies, which provides for a mandatory registration procedure for crypto-currency companies. According to the new document, cryptocurrency is recognized as a medium of exchange for services and goods. However, it is not supported by government agencies and is not issued by the central bank, so cryptocurrencies are not necessarily considered as a means of payment. 

Still, there are about 40 cryptomats and there is a project that is focused on the development of a payment system in Bitcoins. The future outlook is not yet completely clear.

Singapore

The country is well-known for its BTC acceptance. Singapore's legal system has provided the groundwork for adaptable regulation. In Singapore, virtual assets are regulated by the MAS, which is the state's Central Bank and Monetary Authority. It provides assistance to Bitcoin entrepreneurs and blockchain technology. As a result, multinational corporations eagerly register in Singapore.

The nation is attempting to strengthen controls over AML and CTF compliance. The entire globe is aware that the active growth of the virtual coin market opens the door to simple money laundering and terrorist financing.

Malta

Cryptocurrency is recognized as a full-fledged market tool in this country. The Ministry of Finance even created a new regulation that governs the circulation of electronic cash. Furthermore, legislation has been drafted to govern the operation of ICOs. Cryptocurrency enterprises have also been authorized in the country, and residents can use coins as payment.

Salvador

El Salvador was the first country to fully legalize Bitcoin as a means of payment in 2021. The acceptance of Bitcoins for payment has become mandatory in the country. The head of Salvador stressed that the cryptocurrency has become legal tender on a par with the US dollar. And all this despite protests and criticism from within the country. Commercial organizations and other businesses are aggressively promoting Bitcoin as a payment method for services and commodities.

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We have listed the largest countries that are currently ready for innovation in the financial sector. However, the situation is rapidly changing and it is likely that there will be many more in the near future.