According to Kosala Hemachandra, crypto-friendly regulation could be a secondary factor
Each country has very different regulations, but which is the most crypto-friendly country in the world? Kosala Hemachandra, CEO and founder of MyEtherWallet, called this question rather difficult.
„First of all we have to define what crypto-friendly means,“ Hemachandra explained to Cointelegraph. „Some countries, such as China, are keen to issue digital state currencies, which would encourage rapid adoption but do not live up to the decentralised spirit of crypto.
Over the years, China has proven to be one of the least crypto-friendly countries, as confirmed by various bans and restrictions. In 2020, the country made significant efforts to establish its central bank digital currency, the digital yuan, but such an asset differs from the decentralized, open-ended digital assets native to the crypto sector.
„In some regions, especially those where fiat currencies are unstable or highly inflationary, regulations may be unfavourable for cryptos, but at the same time there is widespread use of client-side crypto solutions,“ Hemachandra added. Venezuela, for example, has suffered incredibly high levels of inflation. As a result, crypto assets have gained popularity in the country.
The United States has a unique situation where each state has different laws and regulations, as well as being under the supervision of the federal government. „In the U.S., the reception for crypto assets can vary greatly from one state to another,“ stressed the founder of MEW. This concept often manifests itself when U.S.-based crypto platforms release new products or services earlier in certain states than in others that see a delayed launch.
The global landscape and ethics of cryptos, however, affect demand. Hemachandra explained:
„Looking for the most crypto-friendly geographical region is not necessarily the most valid approach, as every crypto service provider aspires (and must aspire) to a global user base. As a company in the industry, what we can do is stay focused on making crypto-critical services safer and easier to use, so as to encourage adoption and increasingly reduce the importance of geographical boundaries“.
The crypto environment witnessed strong growth in 2020, observed in both the Bitcoin price rise and the boom in decentralised finance. During this phase in the evolution of the blockchain industry, the United States continued to pursue technology law enforcement.