Cryptocurrency Market Regulations Around the World
The development of cryptocurrency has come a long way from speculative investment to a new asset category. It has prompted national governments to explore ways to regulate it. By January 2024, some governments have created comprehensive legal frameworks. These frameworks are meant to protect customers and businesses. However, others are still speculating on these issues.
Digital money has become an influential factor in the global financial landscape. Bitcoin, Ethereum and other coins are now established as a cryptocurrency investment. The approaches to regulating digital money as an asset and as legal tender vary from country to country. The EU has developed its comprehensive framework, the Market in Cryptocurrency Asset (MiCA). The United Kingdom has its equivalent based on the national legislature. The US is approaching a developed form of crypto regulation, too. However, customers, issuers, companies, and regulators are busy battling it out in the national court system. Cryptocurrency is subject to different approaches across the world, from Canada to Japan and from Australia to Brazil.
Let’s study what principles of cryptocurrency market regulation exist in different countries. This could be vital knowledge for Vave casino customers. By 2024, crypto terminology will already become an integral part of online gambling. However, crypto bankroll management has its specific features. This is why having as much information as possible regarding this issue would be helpful.
Approaches to Regulation
Cryptocurrency regulations are still being developed and evolved worldwide. Some countries are creating comprehensive crypto regulation policies, while others trail behind.Partial regulation exists in some countries, with others taking steps to regulate as much space as possible. For example, crypto exchanges in the US are subject to regulations. In the EU, laws governing crypto service providers are in effect.
In the United States, the Securities and Exchange Commission, the Commodity Futures Trading Commission, and the Financial Industry Regulatory Authority are all involved in regulating crypto. However, crypto transactions between private wallets have yet to be subject to regulation.
Cryptocurrency Regulations Around the World
The table describes the current status of crypto regulation worldwide, according to a survey by the European Parliament. It was released in 2023. It is useful for those punters who gamble at online crypto venues like Vave Casino. The levels of crypto market regulations vary from country to country:
| Jurisdiction | State of regulation |
| United States | Final legislation pending |
| Canada | Final legislation pending |
| United Kingdom | Final legislation pending |
| European Union | Stablecoin regulation in place |
| Japan | Final legislation pending |
| Australia | Process initiated/Plans communicated |
| China | Prohibition |
| India | Process initiated/Plans communicated |
| South Africa | Final legislation pending |
| Brazil | Process initiated/Plans communicated |
Let’s focus on national regulations, from the United States to the European Union to Australia.
United States
In 2022, the United States announced a new legislature, opening the door to further regulation. The new initiative relies on the traditional market regulators. The first one is the Securities and Exchange Commission (SEC). The Commodity Futures Trading Commission (CFTC) also plays a role.
The SEC is the primary policymaker in this field. Its regulation lies in the court system, and it comes as a sequence of lawsuits against crypto companies and projects. For example, the SEC has a long history of complaints against Ripple, Coinbase, and Binance over their crypto products and services.
The long struggle between government agencies, brokers, investors, and the crypto world proves that US regulation is still evolving.
Canada
Digital money is not yet legal tender in Canada. However, the country has been very proactive about crypto regulation. Canada was the first to approve a Bitcoin exchange-traded fund that operates on the Toronto Stock Exchange.
The Canadian Securities Administrators (CSA) requires that crypto trading platforms and companies register with provincial regulators. Regarding the tax policy, this country treats cryptocurrency like commodities.
United Kingdom
The UK government sees the country as a global crypto hub. Such an intention reflects the UK’s status as a traditional financial center. The vision was set out in 2022 with stablecoins as a valid payment method. The commitment has led to the UK’s regulatory framework development. The focus is scaling up and growing the stablecoin industry. The purpose would be to treat crypto assets equally to other financial tools.
The United Kingdom has comprehensive legislation on crypto assets. It is based on the Financial Services and Markets Act, which was enacted in June 2023. However, the law lacks detailed regulation, which is left to the national financial authorities. Yet, it contains KYC standards, anti-money laundering (AML), and provisions for combating the financing of terrorism (CFT).
European Union
The centerpiece of the EU crypto regulation is a comprehensive framework: Markets in Crypto Assets (MiCA). The framework was adopted in June 2023 and regulates crypto asset markets. Like in the UK’s case, the regulation focuses on stablecoins. Europeans believe crypto assets have a ‘stable value’ compared to fiat currencies. The MiCA provides a legal foundation for government control of the crypto industry. MiCa aims to provide security for all cryptocurrency operations and transactions.
Japan
Japan has adopted a progressive approach to cryptocurrency regulation. The national legislature recognizes crypto as legal property. All crypto exchanges must register with the Financial Services Agency (FSA) and comply with AML/CFT obligations. In 2020, Japan established the Japanese Virtual Currency Exchange Association, and all crypto exchanges are its members.
The Act on Prevention of Transfer of Criminal Proceeds, adopted in 2023, contains provisions to prevent criminals from using cryptocurrency exchanges to launder money.
Australia
Australia, like Japan, classifies digital money as legal property. In 2019, the Australian Securities and Investments Commission (ASIC) introduced regulatory requirements for ICOs. As a result, local crypto exchanges were directed to ban private coin offerings.
In 2021, Australia declared an initiative to create a licensing framework around cryptocurrency. Eventually, this framework must lead to the launch of a central bank digital currency (CBDC). The financial authorities announced plans to develop a regulatory framework by 2024.
China
Unlike most of the world, China takes a tough stand on cryptocurrency. The People’s Bank of China completely bans cryptocurrency as an asset or legal tender.
The same thing is true with crypto mining. For example, the Bitcoin mining ban has been in force since May 2021. By September 2021, all cryptocurrencies were prohibited. The Chinese government considers cryptocurrencies a dangerous instrument. It wants to maintain control over all financial operations in the country. It includes cryptocurrency mining and using it as an asset or legal tender.
India
Most experts agree that India is the future powerhouse of the world economy. However, in regards to cryptoeconomics, it is balancing on the fence. The government hasn’t chosen a clear strategy yet regarding cryptocurrency.
India neither legalizes nor penalizes cryptocurrency use. A bill in the national parliament is designed to ban cryptocurrency, but the chances of adopting it seem slim. The country’s bill of 2022 defines digital assets as property and sets out legal requirements for collecting taxes on crypto income.
South Africa
In South Africa, cryptocurrency is legal. The national regulatory model is relatively supportive of cryptocurrencies. Individuals and companies can legally use digital money. Several crypto exchanges and online trading platforms are operating. The Financial Service Conduct Authority (FSCA) is the regulator. Crypto assets are considered regular financial assets and are taxable on general conditions.
Brazil
Until recently, Bitcoin and other cryptocurrencies were not legal tender in Brazil. However, a law legalizing crypto as a payment method boosted the adoption of digital currencies. In November 2022, the national parliament approved a regulatory framework legalizing the use of cryptocurrencies as legal tender. It came into force on June 20, 2023. The main regulatory body in the country on cryptocurrency is the Central Bank of Brazil.
Conclusion
Bitcoin, the first cryptocurrency, was introduced in 2009. National governments and financial institutions around the world are still developing crypto regulation. Consumers and companies must be protected from fraud and crimes, which must go along with the cryptocurrency’s main features, like anonymity and decentralization.
The global trend is that governments will use cryptocurrencies as financial instruments in the years to come. Some countries, like India or Brazil, are slowly moving forward step by step. Others, like the United Kingdom or the EU, have already made significant progress in this area. There are exceptions, like China. This country has chosen to completely ban cryptocurrency.
However, the future of cryptocurrency looks bright, and the development of global market regulations in this field is proof of it. Of course, online gambling is part of this trend. This is why Vave Casino provides its customers full customer support on crypto operations. You can play our top winter slots, and pay with crypto.
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