Bitcoin (BTC) has been shattering records and inserting itself into mainstream financial discourse worldwide despite a lack of regulatory clarity.
According to a new report by the Atlantic Council, many governments are clarifying their cryptocurrency legislation after recognising that blockchain solutions are here to stay.
Despite the patchy approach, cryptocurrency continues to grow in popularity as adoption numbers surge globally. Read on as we take a closer look.
Steady Growth
Since Satoshi Nakamoto invented Bitcoin in 2008, cryptocurrency has gradually grown into a dominant force in financial markets.
Its success forced regulators to act. Decentralised, borderless transactions oppose everything we have come to know about traditional finance.
Data from the Atlantic Council showed that out of 75 countries surveyed, 45 had legalised crypto in some form. Another 20 imposed partial bans, while ten outright prohibited them.
Intriguingly, cryptocurrencies are legal in 12 of the G20 nations. These countries have some of the biggest economies in the world and contribute over half of the global gross domestic product (GDP).
Legality vs Regulatory Clarity
Only 27 countries have well-rounded regulatory frameworks that encompass taxation, anti-money laundering (AML), counter-terrorism financing, consumer protection and crypto exchange licensing.
Some nations continue to drag their feet, while others have been issuing piecemeal guidance that does not provide investors and businesses with clarity.
For example, Poland is experiencing a surge in cryptocurrency adoption, with many businesses accepting digital currencies as a form of payment.
These include some of the betting operators featured on comparison website nakazimierzu.pl, who have recognised the potential of crypto.
The betting industry has been a key driver for crypto in response to demands from players eager to use it to fund their online gaming activities.
This has forced many countries worldwide to consider central bank digital currencies (CBDCs) and crypto legislation, even if they prohibit use.
A Global Push and Political Winds in the US
The recent drive to regulate crypto worldwide has been spearheaded by the United States (US). President Donald Trump has publicly backed digital assets.
Trump launched his meme coin and announced plans to start a reserve with $2.5 billion worth of cryptocurrencies. He is a proponent of crypto alongside advisor Elon Musk.
A bill that would regulate a form of cryptocurrency called stablecoins recently passed a procedural vote in Congress as the US looks to catch up with other countries.
The United Kingdom (UK) is also gradually trotting towards its legislative proposals, while Brazil and Hong Kong continue to draft frameworks for stablecoins.
This domino effect shows stablecoins, unlike more volatile cryptocurrency assets, can play a key role in helping to stabilise crypto integration and the existing payment structure.
UAE – A Quiet Crypto Catalyst
The United Arab Emirates (UAE) is among the nations leading the charge.
The UAE has been surprisingly progressive in its regulatory stance, making the ground fertile for industries that need fast, secure and discreet payment systems.
One sector keen on this environment is the iGaming industry. Operators work with inflexible banking structures and payment restrictions.
However, the adoption of crypto has benefited them. Digital assets have made deposits and withdrawals smoother, faster and more private.
Many popular UAE betting sites are happy to serve their tech-savvy customers who want the option of using digital assets.
The UAE has handed the rest of the world a blueprint for how emerging industries such as iGaming can flourish in a highly regulated environment.
What the Future Holds
The blockchain ecosystem continues to move forward with momentum despite the regulatory fog.
The Atlantic Council report shows how even the countries that were slow have now realised that they must quickly put together their crypto strategies, picking up the pace.
Even when comprehensive regulation is still a work in progress for certain countries, many citizens have continued to adopt crypto.
Blockchain-based solutions have penetrated gaming, iGaming, eCommerce and more. They will soon become a part of everyday life on this trajectory.
Governments can choose to lead, follow or fall behind, but they can no longer ignore this wind of change if they want their nations to boom economically.
Regulation is vital, but not for the gatekeeping purpose many people assume. Those that get it right could be the architects of the global finance of the future.