Crypto-friendly regulation may be in the eye of the beholder.
With nations around the world each holding significantly different regulations, what is the most crypto-friendly country? Kosala Hemachandra, CEO and founder of MyEtherWallet, labeled the query as a tough one.
“First we have to define what crypto-friendly means,” Hemachandra told Cointelegraph. “Some countries, like China, are looking at issuing government digital currencies, which would encourage swift adoption, but is not faithful to the decentralized spirit of crypto.”
China has proven itself as one of the less-crypto-friendly countries throughout the years, seen in various restrictions and bans. Throughout 2020, China has pushed significant efforts for its central bank digital currency, the digital yuan, although such an asset differs from the decentralized and open digital assets native to the crypto industry.
“In some places, especially those where fiat currencies are unstable or highly inflationary, regulations may be against crypto, but there is widespread use of client-side crypto solutions,” Hemachandra continued. Venezuela, for example, has suffered soaring inflation levels. In response, crypto assets have gained popularity in the region.
The U.S. has a unique situation in which each individual state carries different laws and regulations, while also under the purview of the federal government. “In the US, crypto-friendliness can vary significantly from state to state,” the MEW founder said. This concept often shows itself when U.S.-based crypto platforms release new products or services, launching in certain states with others following.
Crypto’s global landscape and ethos, however, also plays into the question. Hemachandra explained:
“Looking for the most crypto-friendly geographic region is not necessarily the most helpful framework, since every crypto service provider must and does aspire to a global usership. As companies in the space, what we can do is stay focused on making crypto safer and friendlier to use, so that adoption is encouraged and geographic boundaries matter less and less.”
The crypto space has grown in 2020, seen both in Bitcoin’s price rise and the decentralized finance boom. During this period in the blockchain industry’s evolution, the U.S. has continued to pursue legal enforcement of the technology.