With digital asset prices reaching all-time highs in 2021, many jurisdictions are increasingly embracing cryptocurrencies such as Bitcoin (BTC) and other crypto-based tools.
In addition to surpassing $ 68,000 for the first time since its inception, the year 2021 will be remembered for the historic adoption of Bitcoin as a legal tender in El Salvador. The world’s first Bitcoin exchange traded fund (ETF) was also launched in 2021 along with several other beneficial regulatory changes across the globe.
Looking at the iconic moments of global regulation in 2021, the Cointelegraph has selected some of the most memorable examples of crypto-friendly regulation.
El Salvador: The first country in the world to accept Bitcoin as a legal tender.
The Republic of El Salvador, the smallest country in Central America, officially adopted bitcoin as a legal tender on September 7, 2021, and became the first country in the world to do so. Bitcoin traded around $ 47,000 on the day Bitcoin was officially introduced in the country.
El Salvador’s bold move on bitcoin took several months before President Kneipp Bukele first introduced the “Bitcoin Act”, laying the groundwork for the use of Bitcoin as an official payment method along with the US dollar in June 2021. The El Salvador Legislature later passed the law. Law received an overwhelming majority of 62 out of 84 votes.
El Salvador, known as the “Land of Volcanoes”, has begun using its volcanic activity to generate new bitcoins. In September, President Bukele harassed a bitcoin mining plant powered by volcanic geothermal energy in El Salvador, which was an important argument for reducing BTC’s carbon footprint. Shortly afterwards, Bukele raised its stakes further, announcing plans to create an entire Bitcoin City financed by BTC bonds.
While the crypto community has welcomed the promotion of BTC in El Salvador, global financial institutions such as the International Monetary Fund have expressed skepticism about the government’s move against crypto.
Related: El Salvador buys 21 Bitcoin to celebrate December 21, 2021
Some people in El Salvador were also dissatisfied with the Bitcoin law, and some protested against the introduction of Bitcoin due to concerns about the volatile price. Some protests have even led to the destruction of Bitcoin ATMs.
2. United Arab Emirates: CZ’s new home
In 2021, the United Arab Emirates has emerged as one of the most crypto-friendly countries as the authorities in the capital Dubai increase their efforts to develop the crypto industry.
In January, the Dubai Financial Services Authority (DFSA) announced plans to create a comprehensive regulatory framework for cryptocurrencies as part of its business plan for 2021. Subsequently, the DFSA issued several regulatory approvals, including one for a major Canadian investment product, the Bitcoin Fund. in October. DFSA also works with rules for investment instruments such as securities and derivatives.
UAE regulators have also developed several mechanisms to officially allow and support cryptocurrency trading in several free economic zones in Dubai. The country has also made progress in adopting non-fungible tokens (NFTs) since the postal operator issued NFTs in November to celebrate the 50th anniversary of National Union Day.
At the end of 2021, the Dubai World Trade Center Authority stated that it would be a comprehensive zone and regulator for cryptocurrencies, products, operators and exchanges.
Related topics: Binance joins Fresh Crypto at Dubai World Trade Center
The UAE has become an attractive destination for some of the largest crypto companies and industry figures in the world. In October, it was reported that Binance chief Changpeng Zhao bought his first home in “hard-crypto” Dubai. The Canadian-Chinese businessman has previously stated that he has no property as of April 2021.
Canada: Wins Global Bitcoin ETF Race
Canada entered the 2021 list of the most cryptocurrency-friendly countries when the largest securities regulator approved the launch of the world’s first real Bitcoin ETF earlier this year.
Launched by Canadian investment firm Purpose Investments in mid-February, the Purpose Bitcoin ETF made its grand debut with $ 564 million in assets under management just five days after it began trading.
Canada continued to lead the global Bitcoin ETF race when Fidelity Canada launched its joint Fidelity Advantage Bitcoin ETF and Bitcoin ETF of the same name in December.
Canadian Bitcoin ETFs are not only available to retail investors, but they also offer significant benefits to those who open registered with the state.