Are you thinking of expanding the scope of your investment by moving into the world of cryptocurrency? If your preferred digital coin is Ethereum (ETH), it’s advisable that before you purchase, sell, or spend it, you should check its status in your country (if it’s legal or banned). This is because not all countries regard digital currencies, some can even legally prosecute you if you possess them.
The way countries see digital currencies is different. Even their stances on regulations differ. In some countries, some laws single out Bitcoin (BTC). But it’s quite uncommon to see a country where a different set of rules are made about the Ethereum network– in most situations, the general crypto rules cover its area. So, let’s look into countries where Ethereum is considered legal, banned, and neither legal nor illegal.
Countries where Ethereum is legal
The stand of a country on digital assets is very crucial. The knowledge that you’re free to explore the crypto world without restrictions within your country will leave you with no worries about trading with the virtual currency.
According to research, there are more than 111 states where cryptocurrencies, including Ethereum, are legally recognized and given specific legal status. If you research countries such as Canada and the United States, you will see that they are not strict towards digital currencies, but they ensure that proper measures (anti-money laundering policies) are put in place for safety.
The European Union laws emphasize that member states are restricted from launching their country, but depending on the regulations made by individual countries, crypto regulations can be legalized.
Where is Ethereum considered legal in the world? The following are crypto-friendly countries that don’t ban digital currencies and consider Ethereum legal: Belarus, Bermuda, Estonia, Georgia, Germany, Gibraltar, Hong Kong, Japan, Lithuania, Malta, Singapore, Slovenia, Switzerland, The Netherlands, Ukraine, and United Kingdom.
Countries where Ethereum is banned
It’s not news that some countries prohibit the trading and use of Ethereum and other digital currencies, despite the fact that they are welcome in numerous parts of the world. The main reasons given for the prohibition are founded on the claims that digital currencies are characteristically decentralized assets that pose a threat to the current financial systems of the country, they are virtual currencies with a high level of volatility, and they are available to be allegedly used to facilitate illegal activities.
According to research, numerous countries are yet to lift the ban they place on cryptocurrencies, including Ethereum. In these countries, you may be jailed if you’re guilty of possessing or trading crypto assets.
These countries include Afghanistan, Algeria, Bangladesh, Bolivia, Pakistan, Saudi Arabia, the Republic of Macedonia, Vietnam, and Vanuatu.
Countries that restrict Ethereum
Bannings and restrictions should not be confused with each other. There are countries that prohibit the use of cryptocurrencies entirely, while there are some countries that restrict their use as a payment option. In countries where Ethereum is restricted, banks and other providers of financial services are disallowed from having anything to do with crypto exchanges.
The following are countries where the use of Ethereum is legally restricted: American Samoa, Ecuador, China, India, Egypt, Morocco, Indonesia, Qatar, Nepal, and Zambia.
You should understand that based on the decentralized nature of digital currencies, it becomes technically impossible for any country to eradicate Ethereum, Bitcoin, or other cryptocurrencies. But that doesn’t mean that the bans and restrictions are not effective. Nevertheless, as long as people have access to websites such as Local Bitcoins, they can trade their crypto assets using cash or other available payment options. If the usage of the internet cannot be banned, then governments are incapacitated to prohibit decentralized cryptocurrencies truly.
Countries where Ethereum is neither legal nor illegal
There are cases where things get a little bit more interesting. This is when Ethereum cannot be considered legal or illegal. In countries where this occurs, Ethereum can be legally owned, but no guidelines are laid down on its status. The reason for this could be that such countries have already taken a wait-and-see approach or considering a specific legal framework.
The following are countries where Ethereum is neither legal nor illegal: Andorra, Albania, Barbados, Argentina, French Guiana, Colombia, Jamaica, Gabon, Kazakhstan, Jordan, Kosovo, Kenya, Malaysia, Kyrgyzstan, Mauritius, Maldives, Panama, Nigeria, Peru, Paraguay, United Arab Emirates, Tunisia, Uruguay, and Tanzania.
An impressive number of countries have recognized the positive effect embracing digital innovation can have on the future of their economy. And this makes them consider digital currencies legal. Nonetheless, some are not interested in the change, which in one way or the other affects their economic status. Above all, you should know your country’s stand before thinking of getting Ethereum to know how to go about trading if it is restricted or banned.