All You Need to Know About Crypto Regulations Worldwide

All You Need to Know About Crypto Regulations Worldwide
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Keep track of the latest crypto regulations worldwide and be the first to know whenever they pull their hammers.

Discover the latest crypto regulations and laws that might affect your favorite dapps.

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.

It seems that 2022 marks the year of regulations in crypto. The hectic timeline of scandals during this bear market is remarkable. From Terra´s spectacular collapse to alleged insider trading at OpenSea, class lawsuits against PoolTogether, Uniswap, Gemini, and more. 

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 is continuously updated. Last updated on September 16, 2022.

Crypto regulation news per region

Crypto regulation in the Americas

United States

  • 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

  • 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, 2021The 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

  • 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

  • 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

  • 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

  • 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.

      It is worth mentioning that Latin America accounts for a quarter of all Axie Infinity users.

Argentina

  • 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. 

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. 

Colombia

  • 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

  • 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

  • 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

  • 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.

 The U.K aims to become a crypto hub by having clear regulations in place and preventing potential criminal activity while simultaneously promoting innovation.     

  • 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

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

Russia

  • 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.
  • February 21, 2022 – The Ministry of Finance formally introduces a draft of the federal law “On digital currency” to the government. The proposed law is more crypto-friendly than the formal stance of the Central Bank. 

It 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).

France

  • 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

  • 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

  • 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

  • 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.

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.

Switzerland

Lithuania 

  • 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. 

The draft proposes a requirement for virtual asset service providers to hold 125,000 euros ($133,000) in capital and to have anti-money-laundering staff physically based in the country.

  • 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

  • June 25, 2022 – Albanian authorities are finalizing a draft law that regulates taxation on cryptocurrency-related income starting from 2023.

South Africa

Nigeria

  • 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

  • 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 

  • 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

  • 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 

  • 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

  • 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. 

Indonesia

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

  • 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

  • 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

  • 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

  • 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).

Uzbekistan

  • 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 

  • 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

  • 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

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, so bookmark it to keep track of the latest regulatory events and how they might impact dapps (decentralized applications).

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