Cryptos have been around for more than a decade now but the market is still largely unregulated. While the Bitcoin continues on its journey from being only a speculative investment to one of the “safe haven” assets, especially during the recent pandemic, governments are still not on the same page about crypto regulations. You can get an idea about crypto regulations around the globe by looking at crypto laws in these countries:
- US: The US may boast of a high number of blockchain-driven businesses and crypto investors, but there is no clear regulatory framework yet. The SEC views cryptos as “security”, the CFTC considers them “commodity”, and the Treasury considers cryptos as “currency”. So, cryptoexchanges here come under the ambit of the FinCen and must adhere to anti-money laundering laws. The IRS, on the other hand, categorizes cryptos as “property” for taxation purposes.
- Canada: This country has a positive sentiment about cryptocurrencies in general and was the first to endorse a Bitcoin exchange-traded fund in February 2021. The Canadian Securities Administration and IIROC states that crypto investors and platforms have to register with their provincial regulators.
- Mexico: This is the only country that has levied crypto laws; for instance, the government introduced the Fintech Law for regulating Financial Technology Institutions and cryptos within the country’s financial system.
- Germany: This country has brought cryptos under the BaFin or German Federal Financial Supervisory Authority. To engage in crypto transactions, you must get its approval.
Join us on YouTube to explore the PlayDoge Meme Coin Presale, where we break down how this project could potentially multiply your investment by 100 times!
- Malta: It has been a pioneer in crypto laws, and cryptoexchanges here are legit even though cryptos are not. The Landmark legislation is the new regulatory framework started by its government in 2018 for monitoring cryptoexchanges.
- UK: It considers cryptos as property and all exchanges have to be registered with the UK Financial Conduct Authority. They cannot offer crypto derivative trading. The supervisory body introduced crypto-specific requirements like KYC and AML norms. Investors continue to pay taxes for capital gains on cryptos. For investing in bitcoin it is must to find the best crypto wallet uk to safeguard your earned Bitcoins.
- Australia: Australia is also one of the nations taking a proactive stance as far as crypto laws are concerned. Here, cryptos are held also as legal property and subject therefore to capital gains taxation. Exchanges can run once registered with the AUSTRAC and after satisfying specific AML obligations.
- Japan: It has a progressive approach and recognizes cryptos. These are held as legal property according to the PSA or Payment Services Act. All exchanges have to register with FSA and adhere to AML obligations.
- Singapore: This island country also holds cryptos as property which is however not legal tender. The MAS licenses and regulates all cryptoexchanges here according to the PSA. Singapore has earned the reputation of being a safe haven as far as cryptos goes because long-terms gains are exempted from taxes. This favorable environment has not only attracted cryptocurrency investors but has also fueled the growth of crypto casinos, including the non gamstop casino. These online casinos provide a unique and secure platform for players to engage in gambling activities
- European Union: Throughout most of the EU, cryptos are considered legal but their governance may differ from state to state. Taxes also vary within the EU. In September of 2020, the EC proposed the MiCA or Markets in Crypto-Assets Regulation for increasing consumer protection and establishing crypto conduct.
- South Korea: It does not recognize cryptos as legal tender or as financial assets. So, crypto transactions are outside capital gains tax. The FSS or South Korean Financial Supervisory Service monitors cryptoexchange regulations and operators must conform to stringent AM rules.
- China: This country does not recognize cryptos as legal but as property. The PBOC has banned cryptoexchanges because they encourage financing without government approvals. This is why Binance, which had launched here first, shifted to Cayman Islands.