June 5, 2025 Welcome back to our blog, where we talk about the crypto world, automated trading, and everything.
Throughout the blog, we’ve mainly focused on what’s happening in the United States, the world’s most prominent and influential fiat economy. This makes sense since news from the U.S., like a national crypto reserve and crypto ETF approvals, stirred massive market price action over the last few years. The U.S. economic policy shifts have been one of the main contributors to the volatility we’ve been experiencing lately.
In today’s blog post, we leave the comfort of the good old USA to find a more wholesome picture of the crypto world’s current status. Instead, we’ll travel globally to see cryptos’ progress and how other leading economies are embracing the crypto revolution.
Before embarking on our tour, please remember that all the information in this blog post is strictly educational and shouldn’t be viewed as financial advice. The world of cryptos is dynamic and constantly changing. Therefore, some information may not be relevant when you read this article. Do your research and trade at your own risk.
We’ll start our trip around the world in China, the world’s second-largest fiat economy. Although China is a communist country that isn’t exactly celebrated for promoting human rights and financial freedom, its stance towards cryptos is in line with its aforementioned reputation.
China has always had a negative view on cryptos, starting in 2013 with banning financial institutions from dealing with cryptos and the ICO ban in 2017, which also affected retailers. 2021, things escalated with a full-on ban on all crypto operations, citing illicit activities, customer protection, and environmental issues to support this crackdown. These new regulations make crypto mining, trading, and other crypto transactions illegal. Nevertheless, Chinese citizens are still very much into cryptos despite these restrictions.
Furthermore, the legal status of cryptos is utterly different in Chinese territories outside the mainland. Hong Kong is one of the world’s biggest crypto activity hubs and one of the most pro-crypto places.
Thanks to its unique position, Hong Kong is a bridge between China and the crypto world, giving China much-needed access to Bitcoin and other major cryptos. The success story of Hong Kong has even led some experts to believe that positive changes in its policies are coming soon.
On the other hand, China seems well on its way to deploying its version of CBDC, the digital yuan, leaving many experts questioning whether China will take any steps that would jeopardize this endeavor.
Moving on to Mother Russia, we’ll discover another large non-democratic financial market. Similar to China, Russia also started its relationship with the crypto world suspiciously, working to promote a total ban on cryptos and all crypto-related activities.
This stance started to change dramatically in 2022, with the start of the Russia–Ukraine War and the following financial sanctions by Western economies. Hoping to bypass these restrictions, Russia changed its position towards cryptos, adopting them as proper instruments to conduct its oil trades and other businesses while bypassing Western sanctions.
In the last few years, Russia has continued to completely shift its regulatory landscape of cryptos, introducing new legislation to reverse years-long bans on retailers holding cryptos and participating in trading and mining.
The E.U. has always been relatively open-minded toward cryptos, and it was one of the first major economies to present a regulatory framework for the crypto world. Through the Markets in Crypto assets (MICA) legislation, the E.U. tries to give traders a clear picture of the laws, taxes, and other essential parameters for people and organizations dealing with crypto.
While regulatory clarity (unless aimed at full-on bans) is usually a good thing, the MICA Act received a lot of backlash from the crypto industry. Complaints about the complexity of the new legislation and over-regulation are still rising, warning of a damaging effect on crypto adoption and innovation on the Old Continent.
The E.U. is well-known for being a market with bureaucracy and overly tight regulations, so these critiques are not unique to the crypto world. This also means that in the foreseeable future, it’s doubtful we’ll see Europe become a crypto powerhouse like the U.S.
Following the E.U.’s footsteps, Australia recently unveiled its updated framework for cryptos. Inspired by the MICA legislation and adopting ideas from lightly regulated places like the United Arab Emirates (UAE) and Singapore, Australia hopes to find the right balance of adequate consumer confidence without overbearing the industry.
With this new set of policies, covering everything from stablecoins and CBDCs to real-world assets (RWA) tokenization and crypto exchanges, Australia hopes to modernize its economy through further adoption of blockchain technology and digitalization.
Known as a country of innovation, Japan has always taken a pro-crypto approach to legislation. For years, Bitcoin and other cryptocurrencies have had legal status in Japan, recognizing them as legitimate means of payment.
Another major shift will happen in 2026, when cryptos will gain the same legal status as stocks. The primary goal is to make the crypto world more friendly for traders and investors. Lower taxation on crypto gains is an exciting part of these new regulations, and it should be exciting to see how this will affect the crypto markets at the beginning of next year.
We’ll wrap up our journey with the unique story of the smallest country in Central America. While the UAE and Singapore are both famous for their friendliest approach to cryptos, no other country has taken crypto adoption to the extreme.
In 2021, El Salvador made headlines by becoming the first to adopt Bitcoin as legal tender, giving it the same status as the U.S. dollar (the country’s official currency). This decision entailed establishing a crypto national reserve and compelling businesses and government agencies to accept BTC for goods, services, and tax payments.
Since then, significant controversy has been over this case study’s effects on the country and its economy. Financial inclusion for all, cracking down on organized crime, and attracting tourism and foreign investments were just some of the main goals of these policies. How many of them were accomplished almost four years later is still unclear.
Earlier this year, after years of struggling to integrate BTC into its economies due to a combination of high price volatility, low adoption rate, and technical difficulties, El Salvador agreed to temporarily halt its crypto adoption policies in return for $1.4 billion from the International Monetary Fund (IMF).
Looking at the status of cryptos worldwide, the crypto world’s story is just in its early chapters. With most of the leading economies worldwide marching towards crypto adoption, the crypto world presents an excellent opportunity for traders and investors to take complete control over their financial future.
While new regulations and taxation policies might be limiting and overwhelming, more clarity for the crypto world is generally good as it supports adoption, innovation, and integration of crypto and fiat economies.
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