In November 2021, the cryptocurrency market capitalization exceeded $3 trillion for the first time. The provision of legal status to virtual assets provides market participants with the right to judicial and other means of protecting rights to such assets. In this article, we will look at the states with the highest digital money turnover.
There are several groups of territories in terms of digital money usage:
- In some countries, cryptocurrencies like AXS crypto have an official status (goods, financial assets, means of payment, etc.). Among them are Australia, Argentina, and Germany.
- It should also be noted that several states have introduced partial regulation and restriction of cryptocurrency transactions. So, in Colombia, Lithuania, the UAE, restrictions on the circulation of digital currencies have been introduced for several legal entities, and their use is free for individuals.
- Eleven countries that completely ban cryptocurrencies, including Algeria, Pakistan, Ecuador, and Morocco. The legislation of these states directly indicates that the activities of cryptocurrency exchanges in the countries are prohibited, and the digital currencies themselves cannot be legal tender in the state.
- The largest group is made up of states in which control and legislative regulation of the use of cryptocurrencies are absent.
In September 2021, El Salvador became the first country to accept Bitcoin as a legal payment method. This state also became the first in the world, on the account and in the reserves of which there are now officially Bitcoins.
Countries with the Highest Demand in Cryptocurrencies
Among the states whose crypto traders have received the largest profit from trading cryptocurrencies, the top 10 includes the following:
- USA — $4.1 billion
- China — $1.1 billion
- Japan — $930 million
- UK — $830 million
- Russia — $630 million
- Germany — $610
- France — $590
- Spain — $460
- South Korea — $420
- Ukraine — $390 million
Ukraine took first place in the ranking of states with the largest number of cryptocurrency owners regarding the percentage of the population owning such assets. According to experts, more than 5.5 million cryptocurrency owners live in this state, which means 12.73% of the population. The top five also included Russia (17.3 million or 11.91%), Venezuela (2.9 million or 10.34%), Kenya (4.5 million or 8.52%), and the United States (27.4 million or 8.31%).
Thus, the spread and use of digital technologies in the financial sector is inevitable due to the ongoing dynamic digitalization processes of the world community as a whole. Successful digital transformation of the global financial market is possible with a sufficient level of sensitivity of the governments of individual countries to technological changes and the ability to respond promptly to them in the form of the timely creation of a system of legal regulation and support of the cryptocurrency market.