Cryptocurrencies have been around for a long time now, yet the industry still seems to be largely unregulated in most parts of the world. That is one of the major reasons that many people are still sceptical about investing in online currencies – they feel that there isn’t any legal protection surrounding their investments, which at times, could be monetarily massive.
As crypto continues to grow, however, more and more centralized forms of government are realising that the time to start legally regulating this massive money-moving market is now. Governments in a few leading crypto countries have started to put forward legislation and policy regulating the protection of crypto investments as well as the taxation of investors and exchange platforms. To find out more about the countries pioneering crypto legislation and legalisation, keep reading below.
The United States
The United States has one of the highest crypto investment populations on the planet, with surveys showing that around 21% of adults in the US have, at some point, invested in some form of cryptocurrency. As such, the Department of Treasury’s Financial Crimes Enforcement Network has been issuing legal guidance on Bitcoin since around 2013 – making America one of the leading countries in cryptocurrency regulation.
There is also actual current legislation regulating exchange platforms in the US, stating that any platform that accommodates the buying, selling, or trading of cryptocurrency has to be registered as a money services business (MSB). These platforms also have to register with the United States treasury and log any transactions that exceed $10 000.
Like the United States, neighbouring Canada was also one of the first countries to regulate the transactions of digital assets. Since 2009, Canada has maintained a relatively friendly stance on Bitcoin and has been working to protect Bitcoin investors and keep the market safe as it continues to shift and grow.
Canada’s main motivation behind the regulation of cryptocurrency and Bitcoin trades is to prevent fraud and other money-related crimes. As such, any platform accommodating the trade of digital assets must register with the Financial Transactions and Reports Analysis Centre of Canada. All suspicious transactions must be reported, along with abiding by compliance plans. This means that sites recommended by industry leaders such as Bitcoin Codes and operating in Canada must follow these guidelines.
Most of the countries in the European Union are moving towards regulating the crypto market at a rapid pace, but none have been as fast to doing it as the French. France has implemented regulations on the trading of cryptocurrencies in accordance with their Monetary and Financial Code.
Under this code, any businesses or platforms that trade, buy, or sell digital assets must provide guidelines and advice as a part of regulation and investor protection. This code does not regulate all digital assets, however, as tokens like NFTs are excluded under the code.
Other Countries Regulating Cryptocurrency
- United Kingdom