Crypto coins are still very new in the grand scheme of things, and while some countries have welcomed them with open arms, others have not been quite so enthusiastic about them. To that end, Cointobuy.io have created the cryptocurrency regulation analysis section. This section of the site features a rundown of what type of climate investors can expect for their investments based on region.
There’s a couple of reasons why this information may be useful to you. For starters, if you are investing in an ICO that resides in a particular country, then you may want to know how favorably cryptocurrencies are looked upon there. Crypto regulation changes by a nervous government could obviously send the price of all coins in that nation tumbling, so it’s a good idea to be aware of their legal status there.
The second reason is if you are a resident of that country, then you may need to know if your ability to trade could be in danger or if it has been legitimized. The site has 5 key metrics to help you to answer both of these questions for yourself.
Legality of Bitcoin
Did you know that Bitcoin and other cryptocurrencies are not legal in every single country? Some world governments have actually made attempts to ban their citizens from using them. This could obviously greatly affect you if you live there, or if the project you are investing in is based there.
Use this section to find out if Bitcoin is legal in your locale of choice. Keep in mind that some countries may not have outright banned cryptocurrencies, but they may still be hanging in a dangerous legal grey area where they are not “permitted” either.
Were any crowdfunding campaigns restricted in this country? This marker can help you find out. While this does not necessarily mean they are banned completely, it can mean that there are very heavy regulations for ICOs which could affect your ability to invest in them or the hoops that the developers will need to jump through in order to get their projects under way.
For example, the United States famously places all coin offerings under securities laws, causing many projects to register abroad. China made headlines previously for their supposed ban on all ICOs, and that forced Chinese blockchain projects to tumble. It pays to be aware of your regulatory environment.
This area will give you a fair indicator that relates to how many ICOs have registered themselves within a particular nation. Most of these projects have expensive legal teams helping them to make decisions, and you can be sure that if the majority of them have chosen a certain country, then there is likely a reason for this.
Organizers of blockchain companies tend to choose regions which offer them the most freedoms, and by using this section of the page you can likely determine which countries are the most friendly to initial coin offerings at a glance.
Another important aspect of your investment will involve the availability of exchanges in a particular nation. If there are no exchanges that cater to a particular nation, then they will have a hard time trading their currencies.
The exit to fiat is often the most difficult part for crypto traders, and exchanges have faced the same harsh regulations and troubles that Initial Coin Offerings have. Use this section to see how friendly your nation of choice is to cryptocurrency exchanges.
This section has less to do with the facts about a country, and a lot more to do with public opinion. While that can all seem very subjective at first, the fact is that financial markets are run by the opinion of other investors. If they feel negative about a certain nation, then ICOs which take up residence there could suffer.
However, if they feel positive, then those projects could benefit from their relationship with that government by way of price. As a user of the site, you’re encouraged to leave your thoughts here too. Feel free to not only rate any of the countries listed but also to comment on them and discuss them with your fellow traders. Good luck out there crypto enthusiasts!