Cryptocurrency regulations around the world
Cryptocurrencies develop with the great speed, their popularity in increasing every our. Governments across the world are split on how to regulate cryptocurrency as it transitions from a speculative investment to a balanced portfolio stablemate. Let’s examine the digital coins regulations around the world.
The USA. Despite the fact that the United States has a big number of cryptocurrency investors and blockchain enterprises, the government has failed to build a clear regulatory framework for the asset class. Cryptocurrency is classified as a security by the Securities and Exchange Commission (SEC), a commodity by the Commodity Futures Trading Commission (CFTC), and a currency by the Treasury. The Bank Secrecy Act (BSA) regulates cryptocurrency exchanges in the United States, and they must register with the Financial Crimes Enforcement Network (FCEN) (FinCEN).
In Canada, regulators have adopted a proactive approach to cryptocurrency. In February 2021, it became the first jurisdiction to approve a Bitcoin exchange-traded fund (ETF). The Canadian Securities Administrators (CSA) and the Investment Industry Regulatory Organization of Canada (IIROC) have also underlined that crypto trading platforms and dealers must register with provincial authorities in Canada. In addition, Canada defines cryptocurrency investment firms as money service businesses (MSBs) and requires them to register with the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC).
Japan. Under the Payment Services Act, the Land of the Rising Sun recognizes cryptocurrencies as legal property (PSA). In the meanwhile, cryptocurrency exchanges in the nation must register with the Financial Services Agency (FSA) and adhere to AML/CFT regulations. Japan considers bitcoin trading earnings to be “miscellaneous income” and taxes investors accordingly.
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Source: “Comply advantage”; Timothy Smith “Investopedia”
