Countries develop laws to ensure that their citizens are safe. The law is a tool that helps control society and ensure a conducive environment. Laws also ensure that visitors act accordingly to protect their values and culture. Knowing the laws in one’s country is okay to avoid issues with the authorities. The development of blockchain technology and cryptocurrency investment has led to new laws. Because of this, governments have to decide whether they support cryptocurrency adoption or they don’t. They do this to ensure that people and organisations are safe from any dangers resulting from investing in the technology.
Risks and dangers with crypto per governments
Some of the risks and dangers the governments include:
- Volatility in the price of the cryptocurrency.
Firstly, as seen from Bitcoin and all other cryptocurrency performances in the market, volatility can have a huge impact on the value and lead to losses. Two weeks ago, when writing this article, there was a 14% loss in the value of all cryptocurrencies in the market, which is a huge blow to investors.
Risk of illegal practices carried out through cryptocurrency.
Moreover, reports of cryptocurrency being used to fund illegal practices have been reported. Countries have the power to restrict cryptocurrency usage to protect their citizens from such activities as money laundering. These can affect the economy, lead to more inflation, and boost other crimes in the country.
Regulations on the finical institution and other institutions in the country.
The rules were developed to ensure that the organisations do not offer any cryptocurrency services to the citizens. This means citizens can invest in cryptocurrency in other countries if they do not use cryptocurrency in their home country. Many countries that have developed restricting rules in cryptocurrency fall under this category.
Countries affected by crypto laws
The countries included are the following:
- Burkina Faso
- Core d’Ivoire
- Democratic Republic of Congo
To conclude, some countries have completely banned cryptocurrency in their jurisdiction. This means that people might get into trouble for investing in cryptocurrency. They can face criminal charges. These countries are the following:
A common factor with these countries is that they are all in the northern part of Africa and have a Muslim culture.