The use and popularity of cryptocurrencies have increased considerably in recent years, but their decentralized nature makes it difficult to regulate, and the lack of a clear framework has raised concerns about money laundering, terrorist financing and consumer protection. . More than 90 countries have introduced dedicated cryptocurrency regulations since 2014, and 28 will adopt cryptocurrency-related laws by 2022.
The Cointelegraph Research Blockchain Regulation Database provides an overview of the legal landscape surrounding the blockchain and cryptocurrency space around the world, as well as the regulations that apply to various activities. Through its user-friendly interface, the database provides information on issues such as the legal status of cryptocurrency in multiple jurisdictions, the latest news and updates, and anti-money laundering (AML) compliance assistance. ) and the fight against the financing of terrorism. It is updated weekly and reviewed monthly to ensure perfect data accuracy, which means it can be a useful tool for those involved in the cryptocurrency space.
Explore the full report at the Cointelegraph Research Regulation Database
The regulatory landscape for cryptocurrencies varies greatly around the world. Countries like Japan and Switzerland have established clear rules around cryptocurrencies. Japan has been recognized as a “well-developed” country and a “pioneer” in cryptocurrency regulation, while Switzerland updated its Financial Markets Supervisory Authority AML ordinance in November 2022 to prevent large payments from being made. split up to avoid identity checks.
Asia
South Korea has implemented a law to regulate virtual assets under which all cryptocurrency service providers must register with financial regulators and adjust their AML and KYC systems. The country’s Ministry of Justice also plans to introduce a “Virtual Currency Tracking System” in 2023 to fight against money laundering and develop an independent tracking system in the second half of the year.
China took a more forceful stance by banning initial coin offerings, a commonly used method of raising funds for cryptocurrency companies. In addition, the Chinese government has taken steps to rein in the cryptocurrency mining and exchange industries, expressing concern over financial instability and illegal activities. Similarly, Vietnam banned the use of Bitcoin (BTC) and other similar cryptocurrencies as payment methods.
America
On the other hand, the United States lacks a general regulatory framework for cryptocurrencies. However, the Securities and Exchange Commission has shown particular interest in this area and has taken several high-profile actions against companies that have violated securities laws in connection with their cryptocurrency offerings.
In South America, cryptocurrency regulation is still in its early stages, with each country taking a different approach to this emerging technology. On May 5, 2022, the Central Bank of the Argentine Republic (BCRA) issued a statement that explicitly states that financial institutions are prohibited from facilitating cryptocurrency transactions on behalf of customers or providing digital asset trading services to customers. . The Colombian government, for its part, has taken a more proactive approach to regulating cryptocurrencies, requiring cryptocurrency exchanges to register with the government and establishing AML and KYC requirements to monitor transactions.
Europe
The European Union is actively regulating cryptocurrencies and in March 2023 introduced an updated Sixth Anti-Money Laundering Directive that requires cryptocurrency exchanges to perform KYC checks on their customers and report suspicious transactions.
The EU is also currently studying a new regulatory framework for cryptocurrencies that would align them with current financial regulations. In Germany, cryptocurrencies are recognized as financial instruments and are subject to the same regulations as other financial instruments. On the contrary, France has implemented a favorable tax regime for cryptocurrency transactions, since only the conversion of cryptocurrencies to local currency, the obtaining of profits greater than 305 euros (USD 337) from the disposal of assets and the acquisition of cryptocurrencies through mining.
explore perspectives
Regulating cryptocurrencies is a difficult task due to their decentralized nature, but a global regulatory body for cryptocurrencies could help. Clear and predictable frameworks could improve trust and development, as well as help protect consumers against fraud.
The regulation of cryptocurrencies is a complex and constantly changing field, in which each country tries to develop an individual approach. And so far in 2023, the efforts of lawmakers have only intensified.
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