4 Countries Where Investing in Cryptocurrency is Risky

Posted on

Many countries across the world have benefited greatly from the introduction of cryptocurrencies. The unique benefits that virtual assets offer, such as more affordable money transfers and more transparency, have been seized upon by numerous nations.

Countries that are considered to be hospitable to cryptocurrencies include Hong Kong, Singapore, Switzerland, and the United Arab Emirates. Due to their non-disruptive laws that encourage innovation in virtual assets, these nations are viewed as an oasis for cryptocurrency investors.

But not all nations share the same views on the acceptability of cryptocurrencies. On the other end of the spectrum, some nations have a negative view of cryptocurrencies and restrict or forbid investing in them. While others have strict tax restrictions that hurt investments in cryptocurrencies.

List of Countries where investing in cryptocurrency is Risky
Here is a list of four nations where buying cryptocurrency is not advised.

Cryptocurrency is Risky in Egypt
Different Middle Eastern nations have quite different views on cryptocurrency. For instance, the UAE regards cryptocurrencies as an economic booster. In terms of being the most crypto-ready city in 2023, Dubai, the second-wealthiest emirate in the nation, will only be surpassed by London, according to asset management Recap.

However, the king coin and other cryptocurrencies are viewed as unlawful investments in Egypt, the country that is home to the Valley of the Kings.

Virtual assets are viewed as a danger to the country’s security and the economy in Egypt. Dar al-Ifta, the country’s main Islamic legislative body, issued a religious decree outlawing all Bitcoin-related activity by Islamic law in 2018.

Furthermore, the Central Bank of Egypt (CBE) warned investors not to trade cryptocurrencies in 2018 due to their erratic nature. The country’s current banking regulations forbid dealing, issuing, and even advertising cryptocurrencies without CBE approval.

It is important to note that the CBE was considering the potential of a central bank digital currency (CBDC) as of January 2023, and it even declared its desire to start a digital savings and lending scheme using mobile wallets.

However, Egypt will probably continue to view any transactions involving virtual assets as criminal behavior until the region’s cryptocurrency market is completely formed. Those found guilty of breaking crypto laws risk paying fines of up to $32,500 or maybe going to jail.

Egypt’s stance on cryptocurrency, however, hasn’t entirely discouraged Egyptians from seeking ways to diversify their investments. In 2022, it was predicted by the research firm Triple-A that over 3.0 million Egyptians, or 2.95 percent of the country’s entire population, would be crypto owners.

Cryptocurrency is Risky in Albania
While some countries, like Egypt, view cryptocurrency trading as illegal, other countries, like Albania, have convoluted laws and regulations that can hamper innovation. The licensing of businesses that distribute and exchange digital tokens is regulated in Albania.

A crypto-related company cannot be established without first receiving the Bank of Albania authorization. It grants licenses in accordance with the filing of thorough paperwork, which includes information about the firm’s structure, business strategies, funding sources, and reputation.

When the relevant authorities submit the application in line with the law, a joint commission evaluates it. Additionally, under the present laws, the administrators, supervisory board, and major stakeholders are also assessed.

Before a license is granted, additional variables like investor interest, market financial stability, legal compliance, and the risk of cyberattacks are assessed.

The nation established a cryptocurrency tax, which is scheduled to go into effect in 2023, to further complicate issues. According to the law, private people who make cryptocurrency investment gains must pay a tax of 15%, while businesses that make cryptocurrency investment earnings pay Albania’s business tax rate.

Leave a Reply

Your email address will not be published. Required fields are marked *