Cryptocurrency regulations vary globally, with some countries embracing digital currencies while others impose strict rules. Here's a breakdown of key regulatory developments:
Global Regulatory Framework
The Financial Stability Board (FSB) has developed a global regulatory framework for crypto-asset activities, emphasizing "same activity, same risk, same regulation". This framework aims to ensure consistent regulation and supervision of crypto-assets worldwide ¹.
Regional Regulations
- European Union: The EU introduced the Markets in Crypto-Assets Regulation (MiCA), requiring companies issuing or trading cryptocurrencies to obtain a license and adhere to anti-money laundering rules. From January 2026, service providers must verify sender and beneficiary information for transactions.
- United States: The US has a multi-agency approach, with the Securities and Exchange Commission (SEC) governing crypto-related securities, the Commodity Futures Trading Commission (CFTC) regulating commodity markets, and the Financial Crimes Enforcement Network (FinCEN) enforcing anti-money laundering regulations.
- Asia:
- Japan: Recognizes cryptocurrencies as legal property, with strict rules on customer information sharing between exchanges to prevent money laundering.
- South Korea: Progressing with regulation for crypto and virtual assets, with guidelines for listing virtual assets expected.
- China: Strictly bans cryptocurrency trading, mining, and exchanges.
- India: Taxes cryptocurrency gains at 30%, with a 1% withholding tax on disposal value.
- Brazil: Introduced cryptocurrency regulation, setting rules for virtual asset service providers and preventing scams.
- United Kingdom: Mandates authorization for digital currency companies and proposes regulations for stablecoins ² ³.
Key Regulatory Areas
- Anti-Money Laundering (AML) and Know-Your-Customer (KYC): Regulations to prevent illicit activities and ensure customer verification.
- Taxation: Rules for taxing cryptocurrency gains, varying by country.
- Consumer Protection: Regulations to safeguard investors from fraud and unethical practices.
- Data Privacy and Security: Rules for protecting personal data and securing crypto assets ³.
