Salvadoran Bitcoin Law Surpasses European Regulations in Cryptocurrency Adoption

• El Salvador and Switzerland lead the world ranking for the integration of Bitcoin into financial systems, surpassing the European MiCA.

• Coincub’s 2024 analysis rates El Salvador’s laws at 9.2 out of 10 for the regulatory environment for cryptocurrencies.

El Salvador and Switzerland lead the global landscape in cryptocurrency regulation, according to the Coincub 2024 ranking. These countries have established legal frameworks that have been recognized as the most favorable for the integration of Bitcoin into the financial system, surpassing the European regulation on crypto-asset markets (MiCA).

The Coincub ranking, which lists the countries that have adopted the most favorable regulations for cryptocurrencies in 2024, took into account the legislative advances made this year. These laws aim to further integrate digital currency into the global financial system.

Coincub analysts have evaluated the regulations of various countries, focusing on the unique requirements of the current financial environment, which anticipates a massive increase in institutional adoption of cryptocurrencies following the approval of Bitcoin and Ethereum ETFs in the United States.

This year, regulation and supervision have strengthened around the world, with more countries adopting comprehensive cryptocurrency legislation and implementing measures to ensure investor protection and market stability. These developments are expected to drive the use of bitcoin as a reserve asset in pension funds and corporate treasuries, necessitating increasingly robust regulatory frameworks. – Coincub

This year, regulation and oversight have been strengthened around the world. A growing number of countries have adopted comprehensive cryptocurrency legislation and measures to ensure investor protection and market stability. These developments should facilitate the use of Bitcoin as a reserve asset in pension funds and corporate treasuries, which requires increasingly robust regulatory frameworks.

As we have written In Crypto News Flash, El Salvador, in particular, stood out for its legal incentives for adoption, integrating the cryptocurrency ecosystem into traditional finance. Coincub gave El Salvador’s Bitcoin law and other cryptocurrency regulations a score of 9.2 out of 10, just below Switzerland’s 9.6. European and EU countries generally scored between 7 and 8, with Germany, France, Gibraltar, and Lithuania among the most advanced.

Source: Coincub

Japan ranks third in the ranking, behind Switzerland and El Salvador, putting these countries above others that are still in the process of aligning their laws with MiCA standards. The European bloc’s legislation, which came into force last year and was fully implemented this year, was previously considered the most favorable for integrating Bitcoin into the financial system, especially since it was backed by more than 55 banks. You can read more about it in our article Crypto News Flash Coverage on the subject.

However, despite Europe’s strong position, El Salvador stands out in Latin America and the world. President Nayib Bukele’s government has been proactive in digital asset legislation, making progress since the Bitcoin Law was enacted in 2021. Last year saw the passage of the Digital Asset Issuance Law, among other regulations promoting adoption.

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For 2024, an amendment to the banking law is planned to promote private investment banking, which will offer services in dollars and bitcoins. Salvadoran regulation is unique in the world, as it grants bitcoin the status of legal tender. 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 formula for success is simple: it starts with visionary leadership (like Bukele’s), establishes an independent regulator for digital assets, brings together bright 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 El Salvador’s National Digital Assets Commission, highlighted these achievements as a testimony of visionary leadershipan independent regulator for digital assets, and an ongoing commitment to learning and adaptation to ensure robust regulatory, oversight and compliance mechanisms.

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