#CryptoRegulation Cryptocurrency regulations are changing globally, with governments introducing new rules to protect investors and prevent illicit activities. Here's a breakdown of key developments:
Global Regulatory Framework
- The Financial Stability Board (FSB) has finalized a global regulatory framework for crypto-asset activities, emphasizing "same activity, same risk, same regulation". This aims to ensure consistent regulation and supervision across jurisdictions ¹.
Regional Regulations
- *European Union (EU)*: The Markets in Crypto-Assets Regulation (MiCA) is the world's first comprehensive cryptocurrency regulation, requiring companies to obtain licenses and adhere to strict rules. MiCA aims to provide legal certainty for digital assets and protect Europeans who invest in them.
- *United States (US)*: Regulatory efforts are ongoing, with two key bills: the Financial Innovation and Technology for the 21st Century Act and the Blockchain Regulatory Certainty Act. These bills aim to define when a cryptocurrency is a security or commodity and expand industry oversight.
- *United Kingdom (UK)*: The UK is actively building rules for the crypto sector, mandating authorization for digital currency companies and proposing regulations for stablecoins. The government plans to regulate cryptocurrencies as financial instruments under the Financial Services and Markets Act 2000.
- *Asia*: Countries like Japan and South Korea are implementing regulations, while China maintains strict bans on cryptocurrency exchanges, trading, and mining.
- *Brazil*: Brazil's central bank is set to impose tighter cryptocurrency regulation, following the introduction of the Cryptoassets Act in June 2023, which aims to prevent scams related to cryptocurrency ² ³.
Key Focus Areas
- *Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF)*: Regulations are expanding to cover AML and CTF risks, with stricter requirements for companies operating in the crypto space.
- *Stablecoins*: Stablecoins are expected to come under increased regulatory scrutiny, with governments exploring