The adoption of cryptocurrencies has been critical to many economies worldwide. Many countries have seized on the specific advantages provided by virtual assets, such as cheaper money transfers and increased transparency.Hong Kong, Singapore, the United Arab Emirates, and Switzerland are being termed as crypto-friendly countries. These countries are regarded as an oasis for crypto investors because they stimulate innovation in virtual assets by enacting non-disruptive legislation.However, when it comes to cryptocurrency acceptance, not all countries are on the same page. On the other end of the scale, some regions are sceptical of cryptocurrencies, limiting or outright prohibiting investment in them. Meanwhile, others have steep tax laws which adversely affect crypto investments. Here is a list of four countries where you should avoid investing in cryptocurrencies. Egypt Countries in the Middle East have widely differing perspectives on cryptocurrencies. The UAE, for example, sees cryptocurrency as a boost to the economy. According to asset management Recap, Dubai, the country’s second wealthiest emirate, is only second to London as the most crypto-ready city in 2023. Meanwhile, Egypt, home to the Valley of the Kings, considers the king coin, and other cryptocurrencies, as illegal investments. Also Read: How the EU crypto framework will affect European InvestorsIn Egypt, virtual assets are considered a threat to the central financial system and national security. In 2018, the country’s primary Islamic legislator, Dar al-Ifta, issued a religious decree prohibiting any activity related to Bitcoin under Islamic law. Additionally, The Central Bank of Egypt issued a notice in 2018 warning investors not to trade cryptocurrencies because of their volatile nature. Current banking laws in the country prohibit dealings, issuing, and even promoting cryptos without a nod from the CBE. However, it is worth mentioning as of January 2023, the CBE was evaluating the prospects of a central bank digital currency and even revealed its intention to launch a digital savings and lending project through mobile wallets.However, until the cryptocurrency sector is fully developed in the region, it is likely that Egypt will continue to see any dealings associated with virtual assets as criminal activity. Those found guilty of violating crypto laws could pay up to $32,500 in fines or even face prison time.Nonetheless, Egypt’s view on crypto has not completely stopped Egyptians from looking for a means to diversify their investments. According to research firm Triple-A, it was estimated that over 3.0 million people, or 2.95 percent of Egypt’s total population, owned crypto in 2022.AlbaniaWhile some nations, such as Egypt, consider cryptocurrency trading to be illegal, others, like Albania, have complicated laws and regulations that may stifle innovation. Albania governs the licensing of companies that distribute and trade digital tokens. Also Read: Surprising things you can purchase with Bitcoins To create a crypto-related firm, one must first obtain approval from the Bank of Albania. It issues licenses based on the submission of comprehensive documentation, including firm structure, business plans, funding sources, and reputation. A joint commission assesses the application when it has been submitted by the appropriate authorities, in accordance with the legislation. Furthermore, the company’s administrators, supervisory board, and top stakeholders are also evaluated under the current laws.Other factors, such as investor interest, the financial stability of the market, compliance with laws, and the threat of cyber-attacks are also gauged before a license is handed out.To make matters more complicated, the country imposed a crypto tax which is expected to come into effect in 2023. Under the law, gains made from crypto investments are subject to a tax of 15 percent for private individuals, while profits generated by the crypto business will be taxed under Albania’s business tax rate.BangladeshNot all countries in Asia view crypto as Hong Kong and Singapore do. In contrast, the Central Bank of Bangladesh issued a notice in 2017, warning that cryptocurrencies are considered illegal as they violate money laundering and terror financing regulations. Also Read: Blockchain vs Artificial Intelligence: The new debate amongst tech expertsOther notices state that virtual currency transactions are not approved by the central bank and that the firms do not have any jurisdiction over issuing and regulating cryptocurrencies. In May 2022, the country made headlines after regulators were on the hunt for crypto users in the country. Citizens were also requested to avoid performing, assisting and advertising all kinds of dealings through digital currencies like Bitcoin to avoid legal issues. Nonetheless, it is worth noting that although crypto activity may be illegal in the country, it is not considered a crime. The statement was confirmed by a representative of Bangladesh Bank, the country’s central bank.NetherlandsUnlike the countries mentioned in this list, the Netherlands does not have any laws that explicitly prohibit cryptocurrency-related transactions. As a matter of fact, its crypto regulatory laws are quite defined. In the region, the cryptocurrency industry comes under the purview of the Dutch National Bank . In particular, the DNB keeps a check on the potential dangers of money laundering and terrorist financing through crypto. Also Read: Top 5 DeFi projects that raised millions in latest funding roundsFurthermore, the current laws dictate that virtual asset service providers must seek a license from the DNB before commencing any crypto-related activity. Meanwhile, entities that only facilitate the exchange of cryptocurrencies are exempt from registration, although the same might change in the future. The Netherlands, on the other hand, is included on this list due to its strict tax rules. In the country, the top rate for personal income tax is as high as 49.5 percent. Meanwhile, the basic tax rate for income up to €73,031 stands at 36.93 percent as of January 1, 2023.Similarly, crypto is taxed in the country based on fictitious gains, regardless of whether one is HODling crypto or trading them. Individuals have to pay a steep 31 percent tax on a presumed gain based on the net value of one’s crypto. As such, crypto taxes in the Netherlands falls under one of the highest tax brackets around the world. Conclusion Not every country is vying for a spot to become the next global crypto hub. Countries such as Bangladesh and Egypt have banned cryptocurrency because of its drawbacks. Meanwhile, those like Albania and the Netherlands make it difficult for individuals to invest through steep tax laws.Also Read: OpenSea Vs LooksRare – what you need to know
