This year, for the first time, a country went so far as to grant Bitcoin the status of legal tender: in El Salvador, Bitcoin can be used for any transaction, just like the dollar. In November 2019, a law passed by the German Bundestag allows banks to sell and store cryptocurrencies from January 1, 2020. [131] On December 31, 2013, the Financial Supervisory Commission (Republic of China) (FSC) and CBC issued a joint statement warning against the use of Bitcoin. It should be noted that Bitcoin remains highly volatile and highly speculative and has no right to legal claims or conversion guarantees. [110] The Autorité des marchés financiers (FMA) has warned investors that cryptocurrencies are risky and that the FMA does not monitor or regulate virtual currencies, including Bitcoin, or cryptocurrency trading platforms. [14]: 30–31 Therefore, risks can be mitigated either by enforcing new laws or by enforcing existing laws that integrate cryptocurrencies into the current regulatory system. But not all existing rules can be applied directly; Therefore, the current rules are not adapted to anonymity and decentralization. Law enforcement agencies are bound by applicable laws and procedures when it comes to taking action. The inclusion of rapid changes eliminates the grey area and saves time needed to write and test new regulations. This is the most popular action taken by states, from European countries to the European Union, Canada and the United States. The third approach is to trade and regulate various aspects of cryptocurrencies. But first, what are the results of regulation? In addition to being vulnerable to criminal diversion, accompanied by the risks imposed on stakeholders, they are therefore in urgent need of regulation to address future problems. With regulation comes trust and greater adoption, which allows for the full benefits of cryptocurrencies, and some governments see it as an opportunity to maneuver a position in an emerging market full of potential[39].
Financial institutions are not allowed by the central bank to facilitate Bitcoin transactions. [14] In April 2018, the Central Bank of the Islamic Republic of Iran issued a statement banning the country`s banks and financial institutions from handling cryptocurrencies, citing money laundering and terrorist financing risks. [77] A cryptocurrency exchange can be defined as a financial institution that facilitates the buying and selling of cryptocurrencies. Exchanges offer various services, some facilitate fiat-to-crypto exchanges, some offer crypto-to-crypto services, and others offer both. Wallet service providers are companies that offer wallet services that store private/public keys.[45] Although custodian banks[46] and non-custodian service providers exist, most AML/CFT regulations target only the former. As of 2021, Vladimir Putin has said that Russia accepts the role of cryptocurrencies and that cryptocurrencies can be used for payment. [155] As of November 2016, bitcoins were „not illegal,” according to Russia`s Federal Tax Service. [156] Deputy Minister of Finance of the Russian Federation, Alexei Moiseev, said in September 2017 that it was „probably illegal” to accept cryptocurrency payments.
[157] However, Bitcoin market sites are blocked and court rulings indicate that Bitcoin is a banned currency substitute on the territory of the Russian Federation. [158] Interest in Bitcoin is obvious, as the cryptocurrency itself emerged in the wake of the 2008 global economic crisis: it allows money to be sent and received through decentralized means, thus avoiding the mediation of traditionally trusted third parties such as banks or governments. In 2017, the Bank of Jamaica (BoJ) issued a statement saying it needed to create opportunities for the use of cryptocurrency technology. The BoJ said it is planning a cryptocurrency awareness campaign as part of improving overall financial literacy. [46] [47] [3]: However, Jamaica`s AMBD advised the public not to be easily lured into advertisements for investments or financial activities and to exercise due diligence and understanding of financial products before participating. There is no law that says that owning or trading Bitcoin is illegal. [ref. needed] Jordan`s central bank prohibits banks, wallets, financial companies and payment service providers from exchanging bitcoins or other digital currencies. [72] Although he warned the public about the risks of bitcoins and they are not legal tender, bitcoins are still accepted by small businesses and merchants. [72] On March 6, 2014, Bangko Sentral ng Pilipinas (BSP) issued a statement on the risks associated with trading and using Bitcoin.