Blockchain technology is the basis for the cryptocurrency and a chain of blocks. Blocks consist of data on transactions contracts within the system that are presented in a form of cryptocurrency. To write a new block, that is a new transaction, you have to perform a reading of old blocks information, consequently, the need for computing power in a high level required to maintain the network. Initially, the term blockchain appeared as DDP, which is the name of a distributed database. The first blockchain app was bitcoin,almost ten years before, in 2008.
Since 2009, the popularity of cryptocurrency distribution and blockchain solutions have gradually become wider and wider. Since the beginning of 2018, digital currencies were firmly entrenched in the territories of numerous countries, which showed high interest in the introduction and blockchain development under the regulation of their jurisdictions. The high interest in the cryptocurrency market is a very valuable reason for the leader to take regulatory measures on cryptocurrency, mining and supervision turnover. This has already managed to create numerous bills.
Switzerland is one of the top destinations for projects about blockchain and cryptocurrency. Many major blockchain firms have been located in Switzerland, especially in the Canton of Zug, which is also called as the Crypto Valley. Switzerland has even been in the headlines for putting in place a regulatory framework for ICOs.
Hypothekarbank Lenzburg, a Swiss bank, has recently announced it will allow selected crypto and blockchain businesses to open accounts with them, which should make the country even friendlier to this sector. Cryptocurrency has officially been labelled as a foreign currency in Switzerland and no capital gains tax is levied on most traders in the country.
Malta makes concerned efforts to be known as the blockchain Island. A look at the cryptocurrency headlines surrounding Malta shows some impressive growth for blockchain and fintech on the island. Malta is willing to establish a formal framework for cryptocurrencies,initial coin offerings and of course businesses dealing with blockchain. Major crypto exchanges are being welcomed by Malta’s government. The Maltese government put forward a legal framework for distributed ledger technology (DLT) as of March 12, which included three crypto-positive bills. These include: Malta Digital Innovation Authority (MDIA) Act, Innovative Technology Arrangements and Services (ITAS) Act, and the Virtual Currencies (VC) Act. The result of these positive pieces of legislation has seen a flood of interest in Malta as a premier destination for blockchain and ICOs.
Estonia is in the space of the blockchain technology since 2008. Since 2012, blockchain has been in production use in Estonia’s data registries, such as the judicial, legislative,national health, security and commercial code systems, with plans to extend its use to other spheres like cybersecurity, personal medicine, cybersecurity and data embassies.
Estonia is a country with lax regulation for initial coin offerings and cryptocurrency trending. Several exchanges and cryptocurrency services,such as DX.Exchange have been able to obtain the essential licences to operate in the country. Moreover, Estonia managed to enact a low corporate tax in order to attract every kind of businesses like ones in the field of cryptocurrency.
Japan played a crucial role in regards to cryptocurrency regulations because of its quick reaction to the rise of Bitcoin and other cryptocurrencies. Japan is known as one of the most advanced countries in technology in all over the world and one of the few with a properly defined legal system, which regulates cryptocurrency trading.
After the Coincheck hack, where more than $500 million of customer funds had been stolen from the exchanges,the government of Japan began to apply stricter security and anti-money laundering measures. The Japanese Yen is the most used national currency for Bitcoin BTC, -2.58% trading, accounting for more than half of flat currency BTC volume.
The U.S. is a major player in both the cryptocurrency and blockchain ecosystems, with the majority of ICO projects from the last 18 months originating in the U.S. — 16 percent of all global ICOs. The United States has the highest number of Bitcoin users, but their regulations for cryptocurrency exchanges, particularly those dealing with fiat currencies, are quite strict. This is the reason, we see major compliant U.S exchanges like Coinbase, Gemini and ItBit only offer a limited selection of cryptocurrencies. You are not going to find exotic low market cap coins on these platforms.
Even though some talent, particularly those who want to launch initial coin offerings, has been moving away from the U.S. due to the firm regulations, the country still has an extremely vibrant cryptocurrency scene and is home to companies that are on the cutting edge of blockchain and cryptocurrency tech. In the United States, cryptocurrencies are considered as assets and crypto investments are subject to long-term and short-term capital gains tax.
There are many other countries that have to get honorable mentions for several aspects. Moreover, there are numerous aspects of cryptocurrency and blockchain adoption related to startups, ICOs, cryptocurrency exchanges, and even adoption among enterprise level companies, banks and banking consortiums. Blockchain and cryptocurrencies are in their infancy, but those countries that invest in being agile to them can benefit incredibly economically and in business by doing so.
Designer: Perrine Kerambrun
Writer: Lefteris Daniilidis