Which countries in the world have approved cryptocurrency
Cryptocurrencies have garnered significant global attention, leading various countries to adopt diverse stances regarding their legality and usage. As of February 2025, the landscape of cryptocurrency adoption and regulation is as follows:
Countries Recognizing Cryptocurrency as Legal Tender:
El Salvador: In September 2021, El Salvador became the first nation to adopt Bitcoin as legal tender, aiming to enhance financial inclusion and facilitate remittances. However, in January 2025, the country partially rescinded Bitcoin's official status following an agreement with the International Monetary Fund.
Central African Republic: In 2022, the Central African Republic adopted Bitcoin as legal tender, seeking to bolster its financial infrastructure. The nation also launched a meme coin named $CAR in February 2025 to elevate its global profile.
Countries with Legal Recognition and Regulation of Cryptocurrencies:
Japan: Recognizes Bitcoin and other cryptocurrencies as legal property under the Payment Services Act, boasting a well-developed regulatory framework.
United States: Cryptocurrencies are legal and primarily regulated as commodities by the Commodity Futures Trading Commission (CFTC). Regulations vary by state, with jurisdictions like Wyoming and New York being more progressive.
Canada: Treats cryptocurrencies as commodities, regulating them under existing financial laws and implementing specific regulations for exchanges and transactions.
Australia: Recognizes cryptocurrencies as legal property, subjecting them to capital gains tax, with oversight by the Australian Securities and Investments Commission (ASIC).
Germany: Recognizes Bitcoin as private money, exempting transactions from VAT, and treats cryptocurrencies as financial instruments under regulatory oversight.
Switzerland: Allows cryptocurrency transactions within a well-defined regulatory framework, regulated by the Swiss Financial Market Supervisory Authority (FINMA).
Singapore: Treats cryptocurrencies as legal property, with the Monetary Authority of Singapore (MAS) overseeing crypto activities to ensure compliance with financial laws.
Malta: Known as the "Blockchain Island," Malta has comprehensive laws regulating digital currencies and blockchain technology.
Estonia: Issues licenses for cryptocurrency exchanges and wallet services, fostering a favorable environment for crypto businesses.
United Kingdom: Recognizes cryptocurrencies as property, with the Financial Conduct Authority (FCA) regulating exchanges and related activities.
South Korea: Allows cryptocurrency trading with regulations to prevent money laundering and protect investors, overseen by the Financial Services Commission (FSC).
United Arab Emirates: Established frameworks for regulating cryptocurrencies and blockchain technology, with Dubai known for its ambitious blockchain strategy.
These countries have embraced cryptocurrencies to varying degrees, implementing regulatory frameworks to ensure compliance with financial laws while fostering innovation in the blockchain and cryptocurrency space.
It's important to note that the regulatory environment for cryptocurrencies is dynamic, with countries continually updating their policies in response to technological advancements and economic considerations.
