A Map of Cryptocurrency Regulations Around the World
Laws and regulatory frameworks differ by country, and occasionally within countries– such as in the US, where states have their own powers. Across countries like within the European Union, you’ll find a new bloc-wide framework usurping domestic ones.
While few jurisdictions have outlawed crypto trading outright, most have already or are in discussions to bring cryptocurrency exchanges, also known as crypto or virtual asset service providers (CASPs/VASPs) that operate within their jurisdiction under regulatory oversight. This generally requires them to register with agencies for anti-money laundering purposes and to declare some element or their financial gains.
The difficulty for those seeking greater regulation within the industry is that many exchanges may not be fully based in one location. Last year, the UK’s Financial Conduct Authority (FCA) said the world’s biggest exchange, Binance, was not capable of being effectively supervised due to a lack of transparency. Even Coinbase, which has long defined itself through its engagement with the US government and regulators and even began trading on the Nasdaq in April 2021, calls itself, “a decentralized company”.
Painting A Picture
Regulators certainly do a lot of talking about the need for firmer domestic rules and guidance, even if the pace of change is severely lagging behind the explosion of the global crypto market.
Here, Bankless Times provides a snapshot of the situation in selected crypto hotspots around the world. It ranges from China, which banned all cryptocurrency transactions and mining in September 2021, to El Salvador, which became the first country to make bitcoin legal tender in the same month.
In Russia, the government has expressed anti-crypto sentiment and is mulling a ban. Meanwhile, Australia is planning a detailed licensing framework for cryptocurrency exchanges to attract more digital innovation and investment. Additionally, in countries like the UK, where exchanges are regulated, there are now calls to get tougher regulations; and in the US, there is much talk but little action on creating federal-level laws.