#CryptoRegulation 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 introduced a global regulatory framework for crypto-asset activities, emphasizing "same activity, same risk, same regulation." This framework includes two sets of recommendations¹:
- *High-level recommendations* for regulating crypto-asset activities and markets
- *Revised high-level recommendations* for regulating global stablecoin arrangements
*Regional Regulations*
*United States*
The US has a multi-agency approach to crypto regulation, with:
- *SEC* governing crypto-related securities
- *IRS* regulating crypto taxation (viewing cryptocurrencies as property)
- *FinCEN* enforcing anti-money laundering and terrorist financing regulations
- *CFTC* regulating crypto-related commodity markets
*European Union*
The EU has introduced the Markets in Crypto-Assets Regulation (MiCA), which:
- Requires crypto service providers to obtain licenses
- Mandates transparency and disclosure for crypto-asset issuers
- Sets rules for anti-money laundering and know-your-customer (KYC)
*Asia*
- *Japan*: Recognizes crypto assets as a payment currency, with strict regulations on exchanges and taxes
- *China*: Has banned crypto trading, mining, and ICOs, with strict enforcement
- *India*: Taxes crypto gains at 30%, with a 1% withholding tax on disposals
- *South Korea*: Progressing with regulation for crypto and other virtual assets, with stronger protections for users
*Other Countries*
- *Brazil*: Introduced cryptocurrency regulation in June 2023, with a central bank supervisor for crypto assets
- *UK*: Mandates authorization for digital currency companies, with proposed regulations for stablecoins
- *Canada*: Treats crypto assets as commodities, with capital gains taxes and anti-money laundering regulations
- *Australia*: Views cryptocurrencies as legal property, with taxes and anti-money laundering regulations