El Salvador’s Bitcoin Law Outshines European Crypto Adoption Regulations

• El Salvador and Switzerland lead the world rankings for Bitcoin integration into financial systems, ahead of Europe’s MiCA.

• Coincub’s 2024 analysis rated El Salvador’s regulations 9.2 out of 10 in the context of the cryptocurrency regulatory environment.

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El Salvador and Switzerland lead the global landscape in terms of cryptocurrency regulation, according to Coincub’s 2024 rankings. These countries have established legal frameworks that have been deemed the most conducive to integrating Bitcoin into the financial system, surpassing the European regulation of crypto-asset markets (MiCA).

The Coincub ranking, which maps the countries with the most supportive cryptocurrency regulations for 2024, took into account the legislative progress made this year. These laws are aimed at greater integration of the digital currency into the global financial system.

Analysts from Coincub have assessed the regulations in force in various countries, noting the special requirements of the current financial environment, which is predicting a massive increase in institutional adoption of cryptocurrencies following the approval of Bitcoin and Ethereum-based ETFs in the United States.

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

This year has seen an increase in regulation and oversight around the world, with more and more countries passing comprehensive cryptocurrency legislation and measures aimed at ensuring investor protection and market stability. These changes are expected to facilitate Bitcoin’s use as a reserve asset in pension funds and as part of corporate treasuries, which requires increasingly robust regulatory frameworks.

How we wrote in Crypto News Flash, El Salvador in particular stood out for its legal incentives for adoption, integrating the cryptocurrency ecosystem with traditional finance. Coincub gave El Salvador’s Bitcoin Law and other crypto regulations a score of 9.2 out of 10, 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 more advanced.

Japan came in third in the ranking, behind Switzerland and El Salvador, putting them ahead of others that are still adapting their laws to MiCA standards. The European bloc’s legislation, in effect since last year and fully implemented this year, was previously considered the most conducive to integrating Bitcoin into the financial system, especially since it was backed by more than 55 banks. You can read more about it in our Crypto News Flash Coverage in the subject.

Yet despite Europe’s strong position, El Salvador stands out in Latin America and the world. President Nayib Bukele’s government has been active in legislating digital assets, making progress since passing the Bitcoin Law in 2021. Last year, it passed a law on the issuance of digital assets, among other laws promoting adoption.

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congratulations @nayibbukelePresident of El Salvador, that El Salvador ranks second in the world in terms of @Coincub_ Regulation Ranking 2024. Good job @jcreyes_sv and his team for this incredible achievement. https://t.co/3Lv8UMkIWk

— Dr. Süleyman Kıran (@suleymankiran) July 3, 2024

An amendment to the Banking Law is planned for 2024 to promote private investment banking that will offer services in both dollars and bitcoin. El Salvador’s laws are unique in the world because they grant bitcoin legal tender status. This legal framework supports cryptocurrency operations and transfers, allows the issuance of bonds, including bitcoin bonds, and offers tax exemptions to investors and business owners.

The recipe for success is simple: it starts with visionary leadership (like Bukele), establishes an independent regulator for digital assets, assembles brilliant minds to develop strong regulations, oversight and compliance mechanisms, and maintains 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 Assets of El Salvador, highlighted these achievements as a testament to visionary leadershipan independent regulator for digital assets, and a continuous commitment to learning and adapting to ensure robust regulatory, oversight and compliance mechanisms.