Although 2021 has seen many headwinds for the market, a number of governments have introduced specific regulations for cryptocurrencies in the future.

As digital asset prices hit ATH levels, more and more jurisdictions are adopting Bitcoin (BTC) and other crypto-based instruments.

Aside from Bitcoin breaking the $ 68,000 region for the first time, 2021 will also be a milestone for the market as El Salvador accepts Bitcoin as legal tender. The world’s first Bitcoin ETF was also founded in 2021, with many market-friendly regulations enacted worldwide.

1. El Salvador: The first country in the world to accept Bitcoin as a legal currency

The Republic of El Salvador, the smallest country in Central America, became the first country in the world to officially accept Bitcoin as a legal currency on September 7, 2021. Bitcoin was trading at $ 47,000 in this country.

It took several months for President Nayib Bukele to enact the “Bitcoin Law” for the first time, thus laying the foundation for the use of BTC as an official payment method alongside the USD in June 2021, with 62 votes out of 84.

Known as the “Land of the Volcano,” El Salvador also turned to Bitcoin mining from volcanic energy. In September, President Bukele teased a volcanic geothermal bitcoin mining facility in the country, marking an important step forward in reducing BTC’s carbon footprint. Shortly thereafter, Bukele increased the amount of his investment with a plan to build a Bitcoin city funded by BTC bonds.

As the crypto community celebrates El Salvador’s acceptance of BTC, global financial authorities like the International Monetary Fund have expressed skepticism about the move.

Some El Salvador residents are also dissatisfied with the Bitcoin law and oppose the adoption of Bitcoin because of concerns about high price volatility. Some protesters even destroyed many Bitcoin ATMs.

2. United Arab Emirates: CZ .s new home

The United Arab Emirates are one of the most crypto-friendly countries in 2021 as authorities in the capital Dubai step up their efforts to make the crypto industry thrive.

In January the Dubai Financial Services Authority (DFSA) announced plan to create a comprehensive regulatory framework for cryptocurrencies as part of their 2021 business plan. The DFSA then issued several approvals, including approval of the major Canadian investment product The Bitcoin Fund in October. The DFSA is also working on regulations for investment vehicles such as stocks and derivative tokens.

The UAE regulators have also made many agreements to officially allow and support cryptocurrency trading in some of Dubai’s free economic zones. The country has also made progress in adopting NFT when its postal administration released the NFT in November to celebrate the association’s 50th national day.

The United Arab Emirates are becoming an attractive destination for some of the world’s largest crypto companies and industry giants. In October, Binance CEO Changpeng Zhao reportedly bought his first home in Dubai. Zhao previously stated that he will not own any real estate as of April 2021.

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– CZ Binance (@cz_binance) December 21, 2021

3. Canada: The start of the global Bitcoin ETF race

Canada is also one of the most crypto-friendly countries in 2021 when the country’s securities regulator approved the world’s first Bitcoin ETF earlier this year.

The Purpose Bitcoin ETF was launched by Canadian investment firm Purpose Investments in mid-February and made an explosive debut with $ 564 million in assets under management in just five days of trading.

Canada continues to lead the global Bitcoin ETF race as Fidelity Canada launches its Fidelity Advantage Bitcoin ETF and Bitcoin Mutual Fund ETF in December.

Not only is the Canadian Bitcoin ETF intended for retail investors, it also offers great benefits for those opening government-registered investment accounts such as tax-free savings accounts.

As a pioneer in crypto ETFs, Canada has worked in recent years to introduce clearer regulations for the sector and officially recognize crypto companies as money-for-business (MSBs) in 2020. By the end of this year, the Canadian Center for Financial Transactions and Reporting Analytics had registered Binance Canada Capital Markets.

Follow Data The Cambridge Bitcoin Electricity Consumption Index ranks Canada as the country with the fourth largest bitcoin mining power, accounting for 9.6% of the total global hash rate.

4. Singapore: cryptocurrency is an “investment for the future”

Singapore remains one of the hubs of the market and is home to the world’s largest concentration of crypto exchanges and blockchain companies while regulators have worked hard to develop the industry. .

In November, Singapore has welcome two bitcoin funds for institutional investors, launched by the Fintonia Group, regulated by the Monetary Authority of Singapore (MAS). Previously, the MAS officially allowed companies such as the Independent Reserve of Australia crypto exchange and DBS Bank’s brokerage arm, DBS Vickers, to offer digital payment services in the country.

DBS Bank, Singapore’s largest private and commercial bank, was one of the biggest players to enter the crypto industry last year. The company saw 10x growth in cryptocurrency trading volume in the first quarter of 2021 after launching its trading platform DBS Digital Exchange in late 2020.

Several companies with close ties to the Singapore government are said to be big fans of Bitcoin. Robert Gutmann, CEO of the New York Digital Investment Group, announced in March that the Singapore government-backed parent company Temasek is a major Bitcoin investor.

Follow a meeting opinion pollSingapore is also among the top countries in the world when it comes to cryptocurrency adoption in retail as 43% of Singaporeans own crypto.

Although the domestic government welcomes the development of the crypto industry, a large number of crypto companies appear to have failed to obtain a license to operate in Singapore in 2021.

5. Gibraltar: New destination for Huobi exchanges after China’s crackdown

Gibraltar, a British overseas territory and one of the smallest countries in the world, has become an attractive crypto travel destination in 2021.

In November it was Gibraltar welcome Bullish, a cryptocurrency exchange launched by the developer of the EOS.IO protocol Block.one. The company’s branch had previously received a license for distributed ledger technology from the Gibraltar Financial Services Commission (GFSC).

In September also GFSC authorize Operation of Zubr Exchange Limited, a crypto exchange founded by Sam Bankman-Fried.

The Government of Gibraltar has strengthened its relationship with players in the global blockchain and cryptocurrency industry. In March, Gibraltar’s Minister for Digital and Financial Services, Albert Isola, became Ambassador for the Global Blockchain Business Council, a major blockchain industry association.

Some of the largest crypto exchanges in the world are also coming to Gibraltar in 2021 as the country’s regulators step up support for the market.

Following approval by the GFSC, the Huobi exchange reportedly relocated its spot trading to its Gibraltar office after the industry was cracked down on by China. According to the company, Chinese stores accounted for at least 30% of total transaction volume and revenue before the ban.

Other crypto-friendly jurisdictions in 2021

Of course, El Salvador, the United Arab Emirates, Canada, Singapore, and Gibraltar aren’t the only countries that are introducing more pro-crypto regulations in 2021.

Several other countries, including Australia, have actively introduced new crypto regulations this year and have become crypto-friendly when it comes to ETF approvals.

Follow report von PwC, Liechtenstein, the richest per capita country in the world, will be home to the most comprehensive crypto tax policy in 2021. In second place are Australia and Malta, followed by Germany.

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