Tag: Policy

The development of cryptocurrencies has prompted countries to introduce regulatory policies. Here is the cryptocurrency policy in some countries around the world.

America

The US announced a new framework in 2022, opening the door for further regulation. The new directive empowers existing market regulators such as the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).

U.S. regulators will drastically reduce cryptocurrencies in the coming years to slow the continued emergence of new coins. The outcome of the SEC’s lawsuit against Ripple Labs and the agency’s efforts to regulate cryptocurrency exchanges will determine whether cryptocurrencies can be classified as securities.

In addition, the White House and the Biden administration are looking to tackle illegal activities related to cryptocurrencies.

China

China classifies cryptocurrencies as property for inheritance purposes.

The People’s Bank of China (PBOC) banned cryptocurrency exchanges from operating in the country, claiming that they facilitate public finances without approval.

Furthermore, China enacted a Bitcoin mining ban in May 2021, forcing many people involved in the activity to either stop altogether or move to jurisdictions with a more favorable regulatory environment.

And in September 2021, cryptocurrencies were completely banned.

However, the country is working on developing a digital yuan (e-CNY). In August 2022, China officially started rolling out the next round of its Central Bank Digital Currency (CBDC) pilot program.

Canada

While cryptocurrencies are not considered legal tender in Canada, the country has been more proactive than others in terms of crypto regulation. Canada has become the first country to approve Bitcoin exchange-traded funds (ETFs), with several of them currently trading on the Toronto Stock Exchange.

For crypto trading platforms, the Securities and Exchange Authority of Canada (CSA) and the Investment Industry Regulatory Organization of Canada (IIROC) require domestic cryptocurrency trading platforms and dealers to register signed with the provincial management agency.

Canada classifies all crypto investment firms as money services businesses (MSBs) and requires them to be registered with the Financial Transactions and Reports Analysis Center of Canada (FINTRAC). From a tax standpoint, Canada treats cryptocurrencies similarly to other commodities.

India

India still has hurdles regarding cryptocurrency regulation, neither legalizing nor sanctioning its use. There is a bill in circulation that bans all private cryptocurrencies in India but has yet to be voted on. There is a 30% tax levied on all crypto investments and a 1% TDS tax deduction on crypto transactions. Overall, India remains hesitant about whether to ban cryptocurrencies altogether. The country is also working on a digital version of the ruble and could launch it in 2022-2023.

Europe

Cryptocurrencies are legal across most of the European Union (EU), although the management of the exchange depends on each member state. Meanwhile, taxes also vary between countries in the EU, from 0% to 50%. In recent years, the 5th and 6th EU Anti-Money Laundering Directives (5AMLD and 6AMLD) have come into force, tightening KYC/CFT obligations and standard reporting requirements. In September 2020, the European Commission proposed the Market in Cryptocurrency Assets Regulation (MiCA) – a framework that enhances consumer protection, establishing clear behavior in the crypto industry and introducing new licensing requirements. This regulation was passed into law in 2022.

Conclusion

In the Policy section in the News category, Ecoinomic.io provides the latest information on cryptocurrency policies as well as regulations of countries around the world.

You can read more market news in the following sections:

• Reports
• Security

• Crypto KOLs

• Coin mining

• Market

• Business

Note: We do not provide any investment advice, and we are not responsible for the risk encountered by the reader.