#CryptoRegulation Cryptocurrency regulations vary significantly around the world, with some countries embracing digital currencies while others impose strict rules. Here's a breakdown of key regulations and regulatory bodies in different regions:
Global Regulatory Framework
The Financial Stability Board (FSB) has developed a global regulatory framework for crypto-asset activities, focusing on "same activity, same risk, same regulation". This framework aims to ensure consistent and comprehensive regulation across jurisdictions ¹.
Regional Regulations
- *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.
- *European Union*: The EU has introduced the Markets in Crypto-Assets Regulation (MiCA), which provides comprehensive guidance on crypto service providers, issuers, and transactions. The EU also has anti-money laundering directives that require stakeholders to report suspicious activities.
- *Asia*:
- *Japan*: Recognizes cryptocurrencies as a payment currency, with the Financial Services Agency (FSA) overseeing the crypto trading market.
- *South Korea*: Has implemented the Virtual Asset Users Protection Act, which creates stronger protections for users and requires record-keeping and transparency.
- *China*: Has strict regulations, banning crypto trading, mining, and initial coin offerings (ICOs).
- *India*: Taxes crypto heavily, with a 30% capital gains tax and a 1% withholding tax on disposals.
- *Brazil*: Introduced cryptocurrency regulation in June 2023, making the central bank the supervisor for crypto assets and outlining rules to prevent scams.
- *United Kingdom*: Mandates authorization for companies offering digital currencies, with the Financial Conduct Authority (FCA) regulating the industry ² ³.
Types of Crypto Regulations
- *Trading and Exchange Regulations*: