The past couple of days have been spectacular in terms of bolstering crypto adoption. Financial regulators and lawmakers in India, South Korea, Germany, and France have softened their stance towards crypto through the passing of crypto-friendly laws.
The new legislations have been perceived as bullish signals by the cryptocurrency community. In other words, these four countries are viewed as bellwethers for more countries warming up to cryptocurrency in the near future.
India, South Korea, Germany, And France’s Forward-Thinking Approaches
We’re barely a week into March and positive news is emanating from all corners of the world. It all started on March 2 when Germany’s financial regulator, BaFin, released some guidelines classifying cryptocurrencies like bitcoin as financial instruments.
Two days later, India’s top court overturned a 2018 ban that had been imposed by the Reserve Bank of India (RBI) which essentially barred banks in the country from servicing crypto companies and exchanges. Represented by the Internet and Money Association of India (IMAI), these distressed cryptocurrency exchanges challenged the RBI’s ban in court. At last, the Supreme court ruled in their favor, citing that the ban was “unconstitutional”.
Then on March 5, the South Korean National Assembly passed an amendment to the Reporting and Use of Specific Financial Information Act. This legislation ultimately legitimizes cryptocurrency trading in South Korea.
More recently, the Commercial Court of Nanterre in France referred to bitcoin as a fungible and interchangeable asset, akin to money. The court essentially ruled that the top cryptocurrency qualifies as a legal form of money.
Will More Sovereign States Warm Up To Cryptocurrencies Soon?
Four governments around the world have seemingly embraced cryptocurrency in the space of merely seven days, rather than shying away. It is highly likely that other governments will follow suit as they now have a benchmark against which they can be able to draw their own approaches to crypto regulation.
Germany and France are notably key members of the European Union (EU). The two countries’ decisions to provide regulatory clarity might prompt other countries in the EU to rise to the occasion or risk losing important business.
In the case of India, it’s worth noting that the Supreme Court is currently hearing another case that is expected to provide clear regulations around the Indian crypto market. If you can recall, RBI’s banking ban had forced many crypto firms to move to other countries. Thus, the lift of the ban, along with the regulatory framework that the Supreme court will likely formulate in the near future is likely to attract these companies back to India.
Moreover, IMAI’s victory in court will motivate cryptocurrency enthusiasts in other countries that are stifling crypto innovation to fight for change.
South Korea, just like India, had many crypto exchanges shutting down due to unfavorable crypto regulations. But with the legislation that was passed on Thursday, South Korea becomes the latest Asian-Pacific nation to prove its intentions of becoming a crypto-friendly country and reap the economic benefits that come with cryptocurrencies and blockchain technology.
Notably, the United States is still lagging behind regarding cryptocurrency adoption, but hopefully, US legislators will take their cue for the creation of a regulatory framework for crypto from the above-mentioned nations.