More than half of the world's countries have officially allowed the use of cryptocurrencies

The analysis showed that 119 countries and 4 overseas territories of the UK have included digital assets in their legislative framework, which means that more than 60% of the world's countries recognize cryptocurrencies as a legal means of exchange.

Among the countries that have legalized cryptocurrencies, 64.7% belong to the category of developing countries, mainly on the Asian and African continents.

The European region was at the head of this process, where 39 out of 41 countries (95%) recognized digital assets as legitimate. North Macedonia and Moldova remained the exception, with an uncertain status in relation to cryptocurrencies.

In South America, 24 countries (77.4% of the total number of countries in the region) have allowed the use of cryptocurrencies, but Bolivia has banned them, and several other countries, such as Guatemala, Haiti, Nicaragua, Paraguay, Uruguay and Guyana, have not yet made a final decision on this issue.

In Asia, a similar percentage of countries (77.7%) have officially allowed the use of digital assets. The lowest percentage of cryptocurrency legalization is observed in African countries, where only 38.6% of countries have recognized them as legal.

However, it is worth noting that the legalization of cryptocurrencies and the establishment of clear regulatory rules for them are two different processes. Of the 119 countries included in the report, only 62 (52.1%) have developed comprehensive legislation regulating cryptocurrencies.

Comparing the data from 2018, we can say that the number of countries with legislative regulation of cryptocurrencies has increased by 53.2%.

Among the 62 countries that have established laws on digital assets, 38 are independent states that are not part of the blocs, and 22 of them are part of the European Union. The remaining four overseas Territories belong to Great Britain.

However, half of the countries that have legalized cryptocurrencies have not yet developed a reliable regulatory framework. CoinGecko analysts point to potential risks for investors and a lack of clarity for companies operating in the industry.

Over time, it is possible that the number of countries allowing cryptocurrencies will increase, and a more reliable legal framework for their use will be created, similar to how it was done in El Salvador. El Salvador has launched the Citizenship by Investment program, which provides residence visas and a path to citizenship for those who invest $1 million in Bitcoins.