El Salvador’s Bitcoin Law Surpasses European Regulations on Cryptocurrency Adoption

• El Salvador and Switzerland lead the world rankings for Bitcoin integration into financial systems, surpassing Europe MiCA.

• Coincub’s 2024 analysis rates El Salvador’s laws with a score of 9.2 out of 10 for the cryptocurrency regulatory environment.

El Salvador and Switzerland are global leaders in terms of cryptocurrency regulation, according to Coincub’s 2024 ranking. These nations have established legal frameworks that have been recognized as the most favorable for the integration of Bitcoin into the financial system, surpassing the European Markets in Crypto-Assets (MiCA) regulation.

Coincub’s ranking, which maps the countries with the most crypto-friendly regulations for 2024, took into account the legislative progress made this year. These laws are geared toward greater incorporation of digital currency into the global financial system.

Coincub analysts assessed the regulations of various countries, focusing on the specific requirements of the current financial environment, which predicts a massive increase in institutional adoption of cryptocurrencies following the approval of Bitcoin and Ethereum ETFs in the United States.

This year has seen increased regulation and oversight around the world, with more countries enacting extensive cryptocurrency legislation and implementing measures to ensure investor protection and market stability. These developments are expected to drive the use of bitcoin as a reserve asset in pension funds and as part of corporate treasuries, necessitating increasingly robust regulatory frameworks. – Coincub

This year has seen increased regulation and oversight around the world, with a growing number of countries enacting comprehensive cryptocurrency legislation and measures to ensure investor protection and market stability. These developments are expected to facilitate the use of Bitcoin as a reserve asset in pension funds and as part of corporate treasuries, necessitating increasingly robust regulatory frameworks.

AS we have written In Crypto News Flash, El Salvador in particular stood out for its legal incentives for adoption, integrating the cryptocurrency ecosystem into traditional finance. Coincub gave El Salvador’s Bitcoin law and other cryptocurrency regulations implemented a score of 9.2 out of 10, just slightly behind Switzerland’s score of 9.6. European and EU countries generally scored between 7 and 8, with Germany, France, Gibraltar, and Lithuania among the most advanced.

Source: Coincub

Japan came in third in the ranking, after Switzerland and El Salvador, placing them above others that are still aligning their laws to the MiCA standards. The European bloc’s legislation, which came into force last year and was fully implemented this year, was previously considered the most favorable for integrating Bitcoin into the financial system, especially since it was supported by over 55 banks. You can read more about it in our Crypto News Flash Coverage about this.

However, despite Europe’s strong position, El Salvador stands out in Latin America and globally. The government under President Nayib Bukele has been proactive in legislating for digital assets, making great strides since the Bitcoin law was passed in 2021. Last year saw the passage of the Digital Asset Issuance Act among other legislation promoting adoption.

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An amendment to the banking law is planned for 2024 to promote private investment banking, which will offer services in both dollars and Bitcoin. El Salvador’s regulation is unique in the world in that it grants Bitcoin the status of legal tender. This legal framework supports cryptocurrency transactions and transfers, allows for the issuance of bonds, including Bitcoin bonds, and offers tax exemptions to investors and business owners.

The formula for success is simple: start with visionary leadership (like Bukele), establish an independent regulatory body for digital assets, bring together bright minds to develop robust regulations, oversight and compliance mechanisms, and maintain a commitment to continuous learning and adaptation. Juan Carlos Reyes, president of CNAD El Salvador.

Juan Carlos Reyes, president of the National Commission for Digital Resources of El Salvador, highlighted these results as testimony of a visionary leadershipan independent regulator for digital assets and a continuous commitment to learning and adapting to ensure robust regulatory, supervisory and compliance mechanisms.

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