An Investigation into The Regulatory Challenges Faced by Crypto in Different Countries

An Investigation into The Regulatory Challenges Faced by Crypto in Different Countries
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Table of Contents 1.0. Introduction. 3 2.0. Background and Theoretical Foundations. 5 2.1. Systematic Risk. 5 2.2. Protecting the Investors. 6 2.3. Unethical Transactions. 6 2.4. Taxation. 7 2.5. Global Cooperation. 7 3.0. Countries with Different Regulatory Frameworks and Their Impact 8 3.1. Countries with Permissive Stance. 8 3.2. Skeptic Approach. 9 3.3. Countries with Complete Ban. 9 4.0. Insights Gained from Expert Analyses. 10 4.1. Decentralization. 10 4.2. Diversity in Crypto Market 11 4.3. Diversity across Jurisdictions. 12 4.4. Difficulties in Identity Verification. 12 5.0. Empirical Evidence. 13 5.1. Cryptocurrency, Corruption, and Money-Laundering. 13 5.2. Potential Cases. 16 6.0. Prospects for Further Research. 23 7.0. Research Design. 23 7.1. Data Collection. 23 7.1.1 Theoretical Foundations. 24 7.1.2 Professional Literature. 24 7.1.3 Empirical Evidence. 24 7.2. Inclusion Criteria for Empirical Research. 25 7.3. Exclusion Criteria for Empirical Research. 25 8.0. Conclusion. 25 References. 27  
1.0. Introduction
The concept of a decentralized currency introduced in 2008 manifested itself in the form of Bitcoin (the most popular cryptocurrency). Groundbreaking fluctuations in the value of Bitcoin between 2013 and 2017, with bullish trends dominating the long-term picture, drew the attention of investors and businesses around the world (Baker et al., 2023). As the ubiquity of Crypto grew, and it began to be seen as an alternative to traditional currency for a range of transactions, regulators worldwide began questioning its legal and ethical implications (Renda & Caneppele, 2023; Rysin & Rysin, 2020). Since then, a controversial debate surrounds Crypto, and countries differ in their treatment of this phenomenon (Brummer, 2019). Some countries consider Blockchain a welcome development and adopt a permissive approach, while others are skeptical, considering its prospective ramifications. Some countries have already imposed a ban on Crypto, while others are still deliberating over its validity.
The significance of the research on Crypto from a regulatory perspective lies in multiple factors. Crypto has gained massive popularity, and Blockchain technology is now widely adopted. An idea of the surging popularity of Blockchain can be gained by the fact that as of 2023 (by the time of writing this), more than 85 million Blockchain wallets have been registered. It significantly increased compared to only 11 million wallets registered by 2016 (Rowe, 2023). Similarly, Statista reveals that Blockchain has become widely adopted by organizations from a range of sectors worldwide, as shown below:
Figure SEQ Figure \* ARABIC 1: Blockchain technology use cases in organizations worldwide as of 2021
(Statista, 2021)
These findings indicate that the demand for Crypto is considerably growing. Amid such growing popularity, it is important to consider the controversies and their subsequent ripple effects resulting from the underlying regulatory framing of Cry...