Scams, fraud, mismanagement, and an overall lack of transparency in the web3 industry are globally triggering the regulators’ radar now more than ever. So we crafted this guide with all you need to know about crypto regulations.
The lack of standardized regulations has created an environment of uncertainty, making it challenging for businesses and investors to navigate the ever-changing landscape of cryptocurrencies. In response to these challenges, global regulatory bodies are now taking steps to create a coordinated approach to regulating the cryptocurrency industry.
Occasionally, fraudsters and opportunists promising riches usually exploit investors´ lack of education and gray zones in the crypto industry today. This is why investors need to educate themselves about decentralized applications by using great dapp tools and analytics.
This article will be continuously updated, so bookmark it to keep track of the latest regulatory events and how they might impact dapps (decentralized applications).
Crypto regulation in the Americas
🇺🇸 United States
As of now, there is no comprehensive regulatory framework for digital assets in the United States yet. Despite various registration requirements and jurisdictional claims by regulators, it is still unclear which regulators have the authority to govern digital assets. However, there is a growing effort from the US government to enforce more regulation on digital assets.
- January 1, 2023 – Starting this year, a law passed in November 2021 will require greater tax reporting for individuals in the digital asset industry. Under this law, brokers – which also includes those who transfer digital assets for others – will be required to report relevant information to the IRS on a 1099 or similar form.
- September 16, 2022– The White House releases its first Crypto Regulatory Framework. With a clear focus on protecting customers, preventing crime, and the possible launch of a CBDC, it’s clear that the government wants to harness the opportunities that crypto presents while also tackling the risks.
- July 26, 2022 – US senators Pat Toomey and Kyrsten Sinema introduced a new bipartisan bill, “Virtual Currency Tax Fairness Act,” to simplify the use of digital assets for everyday purchases. It proposes tax exemptions for personal crypto transactions that give a capital gain of less than $50 or that are under $50 as well. This bill has the support of the senators who introduced the previous $200 bill.
- July 9, 2022 – The United States Treasury delivered president Biden a framework, as directed in Executive Order, for the US and its foreign allies (G7 and G20 countries) to collaborate to create international standards for crypto regulation.
- June 8th, 2022 – New York legislators issue a guideline for stablecoins indicating that all stablecoins must be fully backed. All stablecoin issuers must have clear redemption and backing of dollar-pegged stablecoins.
- June 7th, 2022 – Senators Lummis and Gillibrand introduced the “Responsible Financial Innovation Act” seeking to act as a new federal law for stablecoins exempting these digital assets from taxes for small-scale payments under $200. Stablecoins play an essential role in the DeFi ecosystem.
- June 3rd, 2022 – New York legislators passed a bill addressing environmental concerns and banning crypto mining that is carbon-based. Bitcoin uses Proof Of Work; an energy-demanding software algorithm that requires computational power.
🇸🇻 El Salvador
In June 2021, El Salvador became the first country in the world to adopt bitcoin as a legal tender. In terms of regulation, the government has issued guidelines for the use of bitcoin and other cryptocurrencies, and has set up a regulatory sandbox to allow companies to test innovative financial products and services.
- January 12, 2023 – El Salvador’s congress has approved a digital securities law that enables the nation to raise funds through the world’s first sovereign blockchain bond. The law creates a framework for President Nayib Bukele’s plans to issue Bitcoin-backed bonds.
- January 25, 2022- The IMF strongly urges El Salvador to drop bitcoin as legal tender after Nayib Bukele doubles down and buys the dip. The relationship between El Salvador, the IMF, and the United States seemingly deteriorates and critics claim Bitcoin is not leading to financial inclusion and there are no widespread day-to-day transactions.
- September 8, 2021 – The controversial “Bitcoin Law” comes into force facing criticism from the IMF and crypto opponents. The regulation includes a set of conduct that all bitcoin service providers must comply including anti-money laundering measures, comprehensive risk management, cybersecurity programs, and insolvency plans.
- June 8th, 2021- President Nayib Bukele sends out his Bitcoin Law project to congress to promote real financial inclusion and a dynamic economy. The Law was preliminarily approved by 62 general votes from the General Financial Legislation committee.
🇨🇦 Canada
Canada’s Regulatory Sandbox allows fintech firms to offer innovative products with proper safeguards. Over 10 crypto trading platforms have received permission to operate in Canada, and around 40 crypto ETFs have been issued. The regulatory approach prioritizes the safety of investors and aims to regulate the crypto industry like other asset classes.
- February 22, 2023 – Canadian crypto trading platforms must provide an enhanced pre-registration undertaking within 30 days of CSA’s notice publication, detailing their commitment to investor protection, to continue operating while pursuing registration.
- December 13, 2022 – Canadian Securities Administrators (CSA) requires crypto exchanges operating in Canada to segregate user funds from operational cash, use qualified custodians for Canadian users’ assets, and prohibits margin crypto trading for all traders based in Canada, including institutions.
- January 1st, 2022- The Canada Revenue Agency demands that Canadian Money Service Businesses (MSBs) have to report transactions greater than $10,000. So if an investor buys $10,000 worth of crypto from an exchange, the investor has to pay tax on crypto in Canada.
- February 10th, 2021- Deputy governor Timothy Lane, agrees with the conclusions brought up in the discussion paper but shows himself open to the idea of stablecoins as a viable payment innovation. The Bank of Canada is also pursuing an active research agenda on Central Bank Digital Currencies.
- February 1st, 2019- The bank of Canada releases a discussion paper, “Crypto “Money”: Perspective of a Couple of Canadian Central Bankers” examining the role of crypto as money and whether it should become legal tender. The conclusion was that it is unlikely that crypto can be part of a stable monetary system.
🇲🇽 Mexico
The Fintech Law in Mexico allows banks to conduct transactions with crypto-assets, but regulations issued by the Mexican Central Bank in 2019 restrict such transactions to “internal operations” only. Mexican banks cannot use virtual assets for transactions with clients.
However, non-financial entities may offer crypto-related services, including the sale and purchase of crypto, without obtaining particular licenses.
- December 29, 2021 – The Mexican central bank has announced that the digital peso, their planned central bank digital currency (CBDC), is unlikely to be launched by the originally announced date of 2024. Banxico representatives stated that the currency’s development is still in the early stages, and there is currently no set launch date.
- February 21, 2022 – Senator Indira Kempis is developing a bill that seeks to emulate El Salvador´s “Bitcoin Law”. She aims to introduce the bill in the Mexican congress this year. If passed, the bill would make Bitcoin legal tender in Mexico.
- June 28, 2021 – After a joint statement, the Central Bank of Mexico, the finance secretary, and the National Banking and Securities Commission determine that financial institutions in Mexico are not authorized to deal with virtual assets. In Mexico, cryptocurrencies are neither legal tender assets nor currencies.
🇭🇳 Honduras
The legal status of cryptocurrency in Honduras is unclear, but the government has warned citizens about the risks of investing in cryptocurrencies.
- August 1, 2022 – The Central Bank of Honduras issued a statement announcing that “Cryptocurrency assets do not have support, so they are not regulated nor is their use guaranteed, therefore, they do not enjoy the protection granted by national laws.” They remain in a gray area, and their existence is not acknowledged in any bill yet.
🇧🇷 Brazil
Cryptocurrency is defined as digital assets that can be traded, transferred, and used for payments or investments. Providers must comply with anti-money laundering and anti-terrorism financing laws or face jail time.
- December 22, 2022 – Brazil signed into law its first framework for cryptocurrency, setting out rules for brokerages and day-to-day use. The central bank is expected to regulate and oversee the structure.
- August 8, 2022 – Although discussion and voting for the cryptocurrency regulation bill introduced in February in the Brazilian Chamber of Deputies was scheduled for August, it was postponed to September.
- June 17, 2022 – A Federal Deputy proposed a new bill to legalize cryptocurrencies as a means of payments in Brazil, amending an assets law to include digital assets. In addition, the proposal also aims to make it possible to collect and pay debts with crypto. It has yet to be approved by the Senate and the Brazilian president.
- April 30, 2022 – The crypto regulation bill was approved by the Brazilian Senate and is set for discussion in Congress in August.
- February 22, 2022 – The Senate introduced a unanimous bill creating rules for digital currency showing that regulators have a positive view of the opportunities brought by digital assets. It proposed that crypto exchanges and mining facilities were regulated, and also defined penalties for crypto-related cybercrimes. The bill must undergo a vote on the Senate floor and the lower house before President Jair Bolsonaro can sign it into law.
🇦🇷 Argentina
Argentina is placed number 10 in the list of countries with crypto adoption by Chainalysis and despite the booming crypto sector in the country, the government is eyeing tighter restrictions. Crypto taxes are also on the table after agreements with the International Monetary Fund (IMF).
The country´s reliance on IMF has pressured regulators to take this action. It was contingent on a $45 billion debt restructuring deal.
- February 7, 2023 – Argentina’s government is weighing creating oversight requirements on crypto companies. The country’s local regulator, known as the CNV, is studying launching requirements on crypto companies, such as proof of solvency, said the people, who asked not to be named discussing the plans.
- July 21, 2022 – The Argentinian government issued new restrictions to close the loophole that organizations have found for their own benefit, buying cheap dollars at an official rate, buying cryptocurrencies, and then selling them at a higher rate. Investors are forbidden from buying dollars in official markets and purchasing any cryptocurrency for the following 90 days.
- May 16, 2022 – The Senate passes a law to confiscate Bitcoin and other crypto assets to pay its approximately 44,000 million dollar debt restructuring deal to the IMF with taxes on cryptocurrencies.
- May 5, 2022 – Argentina’s crypto industry suffers a major blow by the Central Bank, stifling the booming crypto market in the country. The regulators ban operations that allow bank users to buy crypto and any other operations with unregulated digital assets.
🇨🇴 Colombia
Cryptocurrency is legal, but the government has issued warnings about the risks of trading and investing in cryptocurrencies.
- June 17, 2022 – The regulation of cryptocurrency transactions and operations in Colombia is underway by The Colombian Financial Superintendence, currently under review by the Central Bank of Colombia.
- June 9, 2022 – The Congress of Colombia approved a bill that regulates the behavior of cryptocurrency exchanges in the country for the first time.
🇺🇾 Uruguay
Uruguay is generally viewed as being friendly towards cryptocurrencies and blockchain technology, and has shown a willingness to work with the industry to promote innovation and development.
- October 6, 2021 – The Central Bank of Uruguay issued a statement describing a roadmap for the regulation of cryptocurrency assets in the country. No further developments have been announced in 2022.
August 5, 2021 – An Uruguayan senator introduced a bill to enable the use of cryptocurrencies for payments.
🇵🇾 Paraguay
Cryptocurrency is legal and the government is actively encouraging the use of blockchain technology.
- August 4, 2022 – Paraguay’s National Power Administration proposed a decree to set a special fee for cryptocurrency miners in the country.
- July 17, 2o22 – The Paraguayan Senate has approved a bill that seeks to regulate cryptocurrencies, defining several rules for companies and individuals who operate them must follow. Also, cryptocurrency companies will be exempted from paying value-added taxes in Paraguay, but will have to pay income taxes anyway.
Crypto regulations in Europe, Africa, and the Middle East
🇬🇧 United Kingdom
The UK government is looking to make the country a global hub for crypto technology and investment, but regulators are concerned about the risks to financial stability and consumer protection. Crypto assets will be treated like other financial assets, allowing regulators to quickly respond to new developments. The bill is expected to become law in the first half of 2023.
- February 1, 2023 – The UK government plans to regulate cryptoassets in phases, with Phase 1 focusing on fiat-linked stablecoins and Phase 2 covering other categories of cryptoassets. This approach differs from the EU’s regulatory regime under MiCA. In addition, the UK has published a response to a consultation on bringing the marketing of certain cryptoasset services within scope of the financial promotion rules.
- January 1, 2023 – The Investment Manager (Investment Transactions) (Cryptoassets) Regulations 2022, which include ‘designated cryptoassets’ in the Investment Transaction List, are now in effect. These regulations apply to current and future accounting periods for corporation tax and to the 2022/2023 tax year and beyond for income tax.
- July 28, 2022 – UK’s law commission published proposals to reform laws relating to digital assets, NFTs and other digital tokens, to maximize their potential in the country.
- May 31, 2022- The HM Treasury has opened a consultation on managing the failure of systemic digital settlement asset firms, including stablecoin firms. The month of May marks the official bear market this year after Terra’s stablecoin (UST) fell apart, prompting many regulators worldwide to take a closer look at crypto.
- January 18, 2022 – The UK government and the FCA publish complementary reform proposals to bring financial promotions for some “qualifying crypto-assets” into HM Treasury’s financial promotions regime and the FCA financial promotions rules.
- June 28, 2021- The FCA bans Binance from operating in the U.K.
European Union
- June 30, 2022 – A provisional new deal has been struck between Parliament and Council seeking consumer protection, and a uniform legal framework for crypto in the EU. MiCA (Markets in Crypto Assets) will cover crypto-assets that are not regulated by the existing financial services legislation. ESMA (European Securities and Markets Authority) will provide guidelines in this respect.
The new regulations will subject stablecoins to strict operating rules, with restrictions on whether they are widely used as payment and a cap of €200 million in transactions per day.
🇩🇪 Germany
In Germany, crypto gains that are held for less than a year under 600 euros are also considered tax-free. If none of the conditions is met, then normal income rates apply. Germany is selling itself as a crypto-friendly country with an active blockchain scene with companies like 1inch Network.
BaFin is Germany’s financial market regulator responsible for investor protection. BaFin license protects against scams and illegal activities. BaFin considers cryptocurrencies as units of account, not currency. Normal users don’t need a BaFin license, but those mining or doing commercial transactions may need one.
- Jan 30, 2023 – Germany’s Anti Money Laundering Act (GwG) has been updated to address weaknesses identified by last year’s FATF report. The changes include increased transparency register obligations for real estate holdings and a ban on cash and crypto payments for real estate acquisition in Germany.
- May 12, 2022- The Ministry of Finance issues new crypto-friendly tax laws guaranteeing that individuals selling BTC or ETH more than 1 year after acquisition will not pay taxes, even if they make a profit on the sale.
🇷🇺 Russia
Russia aims to set a licensing regime for exchanges and requires risk management, data privacy and reporting measures that such operators would have to comply with. Purchasing and selling crypto legally would only be possible via a bank account, and it is proposed that both crypto platforms and banks introduce Know Your Client procedures (KYC).
- December 23, 2022 – A bill to legalize cryptocurrency mining and sales in Russia may be approved by early 2023, according to a report by local news agency. The bill was introduced in November 2022, and was expected to pass all three parliamentary readings in December, but was delayed due to concerns about potential capital flight.
- October 10, 2022 – The Russian Ministry of Finance is planning to allow any industry in the country to use bitcoin and other cryptocurrencies for international trade without any limitations.
- July 27, 2022 – Authorities in Russia are preparing legislative amendments that will regulate NFTs, legally defining transactions with digital collectibles.
- July 15, 2022 – Russian President Vladimir Putin signed a new law that prohibits payments with digital assets in the country.
- June 16, 2022 – Elvira Nabiullina, Russia´s central bank governor hints at the idea of cryptocurrencies as payments but only internationally and not inside of the country.
- June 15, 2022 – The Russian government has created a separate tax procedure for digital assets to remain competitive and outweigh the sanctions imposed by the West after the Ukraine invasion. The sale of digital assets is exempt from value-added tax (VAT) in the Russian Federation.
- June 15, 2022 – A bill swiftly passed the lower Chamber of Russian Parliament. The bill seeks to prohibit using “digital financial actives” (DFAs) to pay for goods or services.
🇫🇷 France
France has implemented a dedicated regulatory framework for cryptocurrencies through the Blockchain Order and the Pacte Law. Further changes are expected with the adoption of the Markets in Crypto-Assets Regulation (MiCA) in the future.
- March 1, 2023 – France is expected to introduce a new regulatory framework for crypto firms in 2023, which will require mandatory licensing. The regulations will come into effect by 2026, and firms that fail to comply with the new licensing requirements could face legal action. The move is aimed at combating money laundering and terrorism financing in the crypto industry.
- May 4, 2022 – France became the first European country to approve regulations for Binance, the largest crypto exchange globally.
- June 2021 – The French National Assembly adopts the Plan d’Action pour la Croissance et la Transformation des Enterprises (Action Plan for Business Growth and Transformationton). All crypto exchanges must register and comply with stricter mandatory KYC regulations.
🇪🇸 Spain
Currently, there are no specific regulations in Spain regarding cryptocurrencies, except that they cannot be used as legal tender, which is exclusively reserved for the euro as the national currency. However, the Spanish government is considering new regulations that would require cryptocurrency holders to disclose their holdings and could impose stricter rules on crypto exchanges and other related businesses.
- February 27, 2023 – The Spanish tax agency has updated its guidelines for the upcoming tax season to include crypto and will investigate cryptocurrency in digital payments as well as potentially seize crypto associated with tax debts and criminal activity.
- June 23, 2022 – The Spanish Treasury introduced a new cryptocurrency taxation model that features balance reports. It proposes taxpayers disclose all of their cryptocurrency holdings to the tax authorities with every detail of transactions, including the addresses of origin and destination. The new rules are under review and have not yet been approved.
- June 21, 2022 – The Bank of Spain has reported having registered 17 virtual asset service providers (VASPs) to operate legally in the country. Any crypto company that wishes to operate in Spain is required to fulfill the crypto registry.
- January 10, 2022 – the CNMV published a circular ensuring that it will regulate the advertising of crypto assets to protect investors from risks. This includes advertisements by social media influencers. Spain is known to be a hot spot for crypto and the likely impact of crypto regulations remains to be seen.
🇵🇹 Portugal
Cryptocurrency is not recognized as legal tender, but it is not illegal to buy or sell cryptocurrencies.
- May 15, 2022 – Portuguese finance minister announced that the country is soon to correct the loophole in the law and start taxing cryptocurrency transactions. Cryptocurrencies and NFTs are not considered currencies or financial assets in Portugal yet.
🇮🇹 Italy
Although crypto regulations in Italy have started being implemented, they are not clear or well defined. Cryptocurrencies are seen as financial instruments by Italy’s tax authority because they are not considered legal tender.
- July 18, 2022 – Coinbase, a Nasdaq-listed cryptocurrency exchange, obtained regulatory approval to offer its services in Italy.
- June 2, 2022 – Binance announced its approval to offer regulated services in Italy.
🇨🇭Switzerland
Cryptocurrency is legal and the country is a hub for cryptocurrency businesses and startups.
August 1, 2021 – Switzerland became one of the first countries in the world to enact legal regulations for blockchain technology with the distributed ledger technology (DLT) and blockchain law.
August 26, 2019 – Cryptocurrency exchanges that want to operate in the country require a license from the Swiss Financial Market Supervisory Authority (FINMA).
🇱🇹 Lithuania
Lithuania has a pro-crypto legal framework and considers virtual currencies as a means of exchange and a digital commodity. It has adopted a regulatory sandbox for fintech companies to test their innovations, including blockchain and crypto-related products and services.
The country has also implemented the EU’s Fifth Anti-Money Laundering Directive (5AMLD) and requires crypto-related businesses to register with the Financial Crime Investigation Service (FCIS). Additionally, cryptocurrency transactions are subject to standard VAT and personal income tax regulations.
- November 1, 2022 – Lithuanian cryptocurrency exchanges are required to hire a local AML officer/MLRO, sign an employment contract with them, and inform the FNTT regulator about the assignment by December 31, 2022.
- June 15, 2022- The government approves a bill to limit anonymous wallets and tighten their regulations ahead of rules set by the European Union to prevent Russia from evading sanctions.
- June 6, 2022- The Lithuanian government proposes a “quick-fix” before the European MiCa legislation takes effect in 2023/2024. The hasting comes after concerns of potential wrongdoings that could tarnish the industry´s reputation.
- July 16, 2021– The Bank of Lithuania issues a warning against Binance about unlicensed investment services in the country and orders that publicly available information must not be misleading.
🇦🇱 Albania
Cryptocurrency is not officially recognized, and the government has warned citizens about the risks of investing in cryptocurrencies.
- June 25, 2022 – Albanian authorities are finalizing a draft law that regulates taxation on cryptocurrency-related income starting from 2023.
🇿🇦 South Africa
Cryptocurrency is not recognized as legal tender, but it is not illegal to buy or sell cryptocurrencies.
- July 13, 2022 – A Deputy Governor of the South African Reserve Bank confirmed in that the country is close to finalizing the law for crypto regulations, with exchange control rules and requirements. The process can take between 12 and 18 months.
🇳🇬 Nigeria
Currently, there is no specific legal framework for cryptocurrency in Nigeria. The Central Bank of Nigeria (CBN) has issued warnings to financial institutions and the general public against the use of virtual currencies, citing concerns over their anonymity and potential use for illegal activities. However, in
- February 2021, the CBN issued a circular banning banks and other financial institutions from dealing in or facilitating transactions in cryptocurrencies. This ban was challenged in court by local crypto exchanges, but was upheld in September 2021.
- November 27, 2022 – The Securities and Exchange Commission (SEC) of Nigeria is set to establish a regulatory sandbox for fintech firms and introduce a licensing regime for digital asset trading platforms. The new regulations are expected to be fully implemented by 2025.
- May 12, 2022 – The Nigerian SEC (Securities Exchange Commission) imposed registration requirements that would give the Authorities the power of approving which digital exchanges can operate in the country.
- October 25, 2021 – Nigeria launched its central bank digital currency (CBDC) — the eNaira. Africa´s most populated country banned crypto to propel the eNaira but the country´s younger crypto enthusiasts daily circumvent the ban with peer-to-peer trading offered by crypto exchanges.
- February 5, 2021 – Nigeria bans cryptocurrencies prohibiting banks from enabling cryptocurrency transactions.
🇦🇪 United Arab Emirates
In 2019, the UAE introduced regulations for crypto assets, which requires the registration of all cryptocurrency businesses with the regulatory authorities. The regulations cover anti-money laundering and counter-terrorism financing measures.
- August 8, 2022 – Any real estate transaction in which virtual currency is used as payment or where funds used in the transaction are derived from a virtual asset must be reported to the Financial Intelligence Unit by real estate agents, brokers, and law firms.
- February 28, 2022 – Dubai issues a significant Law on virtual assets establishing VARA (the Virtual Asset Regulatory Authority) as an independent regulatory body that sits within the Dubai World Trade Centre (‘DWTC’) tasked to regulate exchanges, wallets, issuers, and all activities related to cryptos. VARA has an establishment in the metaverse (Sandbox) and the regulatory framework also covers NFTs.
- April 13, 2018 – The UAE launches the Emirates Blockchain Strategy 2021 which seeks to transform 50% of government transactions into a blockchain platform by 2021.
🇸🇦 Saudi Arabia
Cryptocurrency is currently illegal in Saudi Arabia. The government has issued warnings against trading in cryptocurrencies and has stated that it will not recognize any crypto-related activities.
- June 14, 2021 – Although consumers in Saudi Arabia can legally trade with crypto, there is no protection for any potential losses. Banks, on the other hand, are only permitted to deal with crypto after SAMA’s approval.
- July 4, 2017 – The Saudi Arabian Monetary Agency (SAMA) issues a warning against bitcoin because it is not being monitored or supported by any legitimate financial authority.
🇮🇷 Iran
- August 15, 2022 – The governor of the Central Bank of Iran has told the press that cryptocurrency regulation in the country prohibits investment, the purchase and sale, of crypto assets in the country. However, it is legal for companies to pay for imports with these currencies. This was to clarify the announcement that the Iranian government placed its first official import order with cryptocurrency the previous week.
Crypto regulations in Asia and Oceania
🇮🇳 India
The Indian government has not banned cryptocurrencies but has taken a strict stance against them. The Reserve Bank of India has prohibited banks from dealing with cryptocurrency exchanges, and the government is considering a law to ban cryptocurrencies altogether.
- July 19, 2022 – India’s finance minister Nirmala Sitharaman has informed parliament that the Central Bank wants cryptocurrencies to be prohibited in the country. She also added that cryptos “require international collaboration to prevent regulatory arbitrage.”
- February 1, 2022 – Indian regulators announce a 30% tax on any income derived from crypto transactions and another tax of 1% at source on all transactions (TDS). Moreover, the government also announces plans on creating its digital rupee controlled by the Indian Central bank before April 2023.
🇵🇭 The Philippines
The Philippines has legalized cryptocurrencies and has regulations in place to govern their use. The central bank has issued guidelines for exchanges and requires them to register with the authorities.
- May 2, 2022 – The Central Bank of the Philippines (BSP) announces that it will implement its experimental CBDC Project later this year. The aim is to test a wholesale CBDC only for use by banks.
- January 21, 2021 – The Monetary Board asserts that Crypto is not considered legal tender in the Philippines and any business providing financial services like remittances and transactions using virtual currencies must register with the BSP (Bangko Sentral Pilipinas).
🇨🇳 China
Cryptocurrency is not legal in China, and the government has banned all initial coin offerings (ICOs) and cryptocurrency exchanges. However, the government is exploring the use of blockchain technology in various industries.
- December 30, 2022 – China is planning to launch a national exchange for trading digital assets similar to NFTs, despite its strict stance on cryptocurrency. This move is a part of Beijing’s efforts to expand its digital economy by applying commercial rules to data.
- July 10, 2022 – Changes to Hong Kong’s Anti-Money Laundering (AML) law adapts licensing regime regulation for crypto service providers. Virtual asset service providers (VASPs) are now expected to be regulated to the same standard as institutional clients.
- January 20, 2022 – The Hong Kong Monetary Authority (HKMA) issued two papers: one on stablecoins and another on crypto-related exchange-traded funds. Bitcoin is defined as a virtual commodity and not a legal tender. There are no capital gains taxes and AML/CFT laws apply to every individual or business in Hong Kong.
- April 13, 2022 – China’s banking, securities, internet, and financial associations determined that NFTs must not be used for securitization or transacted in cryptocurrencies. The legislation makes it harder to trade NFTs.
🇭🇰 Hong Kong
Cryptocurrency is legal in Hong Kong, and the government has issued guidelines for exchanges and other crypto-related businesses. However, the Securities and Futures Commission has warned investors about the risks associated with cryptocurrencies.
- February 20, 2023 – Hong Kong has been supporting virtual assets since October and is now taking steps to enhance its regulatory framework through a new licensing regime. The regulatory requirements are currently open for consultation until March 31, and the new licensing regime is set to take effect on June 1.
🇹🇼 Taiwan
Cryptocurrency is legal in Taiwan, and the government has taken a relatively hands-off approach to regulate the industry. However, the Financial Supervisory Commission has stated that it is monitoring the sector and may take action if necessary.
- February 20, 2023 – The Taiwanese government is considering a proposal that would require public servants to disclose their cryptocurrency holdings. The proposal aims to address concerns about corruption and potential conflicts of interest among public officials.
🇮🇩 Indonesia
Cryptocurrency is legal in Indonesia, but the government has issued warnings about the risks associated with investing in cryptocurrencies. The government has also prohibited the use of cryptocurrencies for payment.
- October 29, 2021 – BAPPEBTI lays down a clear regulatory framework for cryptocurrencies establishing that any crypto assets that are traded must first obtain a license with the entity. The crypto assets must comply with 3 basic requirements :
1) Be based on distributed ledger technology.
2) Be asset-backed or utility-based.
3) Have been assessed via an Analytical Hierarchy Process (AHP) implemented by BAPPEBTI.
The Indonesian Commodity Futures Trading Regulatory Agency (BAPPEBTI) has been legalizing Bitcoin and other cryptocurrencies as commodities since 2019. Such commodities can be traded on official exchanges.
🇸🇬 Singapore
Singapore has taken a relatively pro-crypto stance, with a clear regulatory framework in place for crypto businesses to operate within. However, as with any jurisdiction, it’s important for crypto businesses and investors to stay up-to-date on any regulatory changes that may impact their operations.
- July 5, 2022 – The Monetary Authority of Singapore (MAS) has told Parliament that the central bank is considering imposing additional restrictions on cryptocurrency trading – “placing limits on retail participation, and rules on the use of leverage when transacting in cryptocurrencies.”
- January 17, 2022 – Digital Payment Token (DPT) service providers are not allowed to promote their services to the general public in Singapore.
- January 2021 – Amendments to Payment Services Act have been passed to expand the scope of regulated cryptocurrency services to align with the enhanced standards by Financial Action Task Force (FATF).
🇹🇭 Thailand
Cryptocurrency is legal, but the government heavily regulates the industry and has banned certain activities, such as initial coin offerings (ICOs).
- August 10, 2022 – Thailand’s Central Bank is planning to amend the law on digital assets to tighten the control of exchanges and the entire crypto sector. Cryptocurrencies are not a legal means of payment for goods and services in Thailand either.
🇯🇵 Japan
Cryptocurrency is legal in Japan, and the government has issued regulations to govern the industry. The country has licensed several cryptocurrency exchanges, and the industry is tightly regulated.
- June 3, 2022 – Japan becomes the first country worldwide to create a legal framework addressing stablecoins. The parliament passed a bill that defines them as digital money and asserts that stablecoins must be linked to the yen or another legal tender while guaranteeing holders the right to redeem them at face value.
- December 2017 – Japan’s National Tax Agency ruled that gains on cryptocurrencies should be categorized as “miscellaneous income” with rates varying according to an independent income. Rates can be as high as 55%.
🇰🇷 South Korea
Cryptocurrency is legal in South Korea, but the government has taken a strict stance against the industry. The country has prohibited initial coin offerings (ICOs) and anonymous trading, and it has also issued regulations to govern cryptocurrency exchanges.
- June 1, 2022 – In the aftermath of Terra´s collapse, the Korean government announces the creation of a new entity: The Digital Assets Committee. Its main goals are to make policy recommendations, including criteria for new cryptocurrencies to be listed on exchanges, a schedule for ICOs (initial coin offerings), and enforce investor protections ahead of the enactment of a Digital Asset Basic Act (DABA).
- September 24, 2021 – The South Korean government requires all exchanges (national & international) to register with the Korea Financial Intelligence Unit (KoFIU) and comply with various AML obligations, such as filing reports on suspicious transactions and verifying the identity of their customers.
🇺🇿 Uzbekistan
Cryptocurrency is legal, but trading and mining require a license from the government.
- May 1, 2022 – Uzbekistan’s president issued a decree regulating cryptocurrency mining and trading on domestic platforms. Furthermore, it also states that crypto-related transactions of individuals and companies will not be subject to taxation.
🇻🇳 Vietnam
Currently, Vietnam does not recognize cryptocurrency as a currency or asset, and there are no provisions for it in Vietnamese law. The State Bank of Vietnam has prohibited the issuance, supply, and use of virtual currencies, including Bitcoin and Litecoin, as currencies or means of payment. However, there are indications that this may change in the future.
- March 29, 2022 – The government announces the beginning of research for the implementation of a legal framework governing digital assets. The country’s Ministry of Finance is spearheading this mission.
- October 28, 2017- The State Bank of Vietnam (SBV) bans bitcoin and other cryptos from use as a means of payment.
🇦🇺 Australia
Cryptocurrency is legal in Australia, and the government has taken a relatively hands-off approach to regulating the industry. However, the country has issued regulations for cryptocurrency exchanges and requires them to register with the authorities.
- April 21, 2022 – Australia’s financial regulator, the Prudential Regulation Authority (APRA), has announced that it intends to implement cryptocurrency regulation in the country by 2025, starting in 2023.
- December 2021 – The Australian government announces that it will create a licensing framework for cryptocurrency exchanges and consider launching a retail CBDC. The aim is to create a licensing framework for digital exchanges.
🇳🇿 New Zealand
Cryptocurrency is legal and subject to taxation.
- September 1, 2019 – New Zealand became the first country to legalize paying salaries and wages with cryptocurrencies.
Until 2022, however, no legislation in New Zealand exists specifically regulating cryptocurrencies, but contract and tax laws apply to them.
This article is continuously updated.
Read more: https://dappradar.com/blog/guide-to-all-crypto-regulations-worldwide
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