The year 2022 was prolific with crypto currency crashes and a general negative reputation by the public on the subject, but to a select number of countries, embracing the crypto culture was their strategy for the year.
The countries in question, Brazil, El Salvador, the Central African Republic, The United Kingdom and the United Arab Emirates have had their governments push for more regulation. This has laid the foundation for the future of cryptocurrencies.
In 2022, Brazil got its own regulatory framework for cryptocurrency, where the government signed a bill legalizing payments being made through the use of crypto.
This means that licenses can now be acquired by companies in order to have a recognized
digital currency and other virtual assets.
This has had a positive result with more than 12,000 companies that are recognized by the government as being cryptocurrency holders. These 12,000 companies have accepted various crypto currencies as payment for various services.
Furthermore, Brazil has also launched the cryptocurrency market for trading in the Brazilian Stock Exchange.
The United Kingdom
With a turbulent year for the government, having had three different prime ministers in a matter of months, the UK has pushed quarrels aside to aid and facilitate the implementation of proper regulations for the crypto market.
The government’s intentions to make the UK a cryptocurrency hub were made clear when a bill was signed during the summer months where they broadened the legal terms and regulations when it comes to stable coins and coined currencies.
This bill has laid the foundation for the crypto hub dream and further improvements have been made throughout the year as well. Most important of these changes was the recognition of Nonfungible tokens (NFT’s) as private property.
Establishing itself as a bitcoin laboratory, El Salvador has pushed the boundaries of regulations by issuing the first ever government ‘Bitcoin bonds’.
The government also plans to raise $1 billion to invest in a ‘Bitcoin City’ which has elevated the profile of the country in the crypto market.
These changes have already bore fruit with the country seeing a surge of 30% in tourist activity ever since the law was introduced early in 2022. Statistics also shows that 20% of the businesses in El Salvador have started accepting Bitcoin as a payment method.
This development in the sector was due to the work done by the government in inviting 44 central banks from all over the world to tackle the issue of inclusion of crypto into the market and regulatory framework.
The Central African Republic
Being the first republic to unanimously legalize the use of crypto currencies in the financial market, the country has revolutionized their use.
The government introduced a system to aid the payments of crypto currencies not only for businesses but also for tax payments. This is being done through authorized entities.
The government has also developed its own cryptocurrency called Sango Coin and $1.6 million has already been sold.
United Arab Emirates
The strategic approach taken by the UAE has attracted investors from all over the globe.
In March of 2022, Dubai came up with the legal framework to protect investors and set international standards for the industry. Dubai also set up a Virtual Asset Regulatory Authority with its own enforcement powers aimed at providing licenses to regulated cryptocurrency traders.
Furthermore, UAE capital Abu Dhabi set up a platform for NFT trading, treating them as intellectual property and virtual assets.
Work is also being done with regards to the Metaverse, putting the area in the top 10 metaverse economies of the world.
With so much being done across the four corners of the world, what will other countries be doing in the year 2023?
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