The Legislation of Cryptocurrency Around the World – A Comprehensive Overview
Bitcoin, Ethereum and other digital currency have seen increasing use as alternative asset classes in recent years. Governments worldwide have found difficulty in finding ways to regulate them effectively – this article gives an overview of regulation across various nations including those from Europe and North America. European Union regulation for cryptocurrency service providers was groundbreaking; adopting measures that require crypto service providers to detect and stop illicit cryptocurrency usage. On January 2020, EU implemented their fifth Anti-Money Laundering Directive with provisions covering virtual currencies exchanges and wallet providers under EU anti-money-laundering rules; this included virtual currency exchanges/wallet providers complying with strict anti-money-laundering (AML) as well as counterterrorism funding funding (CTF). The rules also require these providers to register with local financial regulators while adhering to strict anti-Money Laundering/CTF requirements imposed upon them by AML/CTF regulations; these new rules require crypto exchange/wallets providers comply with anti money Laundering Directive 5. US Cryptocurrency Regulation: Cryptocurrency regulation has long been an emotive topic. Under President Biden’s guidance in 2022, cryptocurrency was legally defined and clarified for use and regulation purposes – making the way clear for digital dollars and an emerging crypto economy. New guidance emphasized how digital assets and cryptocurrencies must be treated like property for taxation purposes with gains or losses having to be reported to IRS for reporting purposes; additionally they come under Bank Secrecy Act regulations mandating that cryptocurrency exchanges and businesses comply with AML/CTF regulations in 2022. Other countries regulate cryptocurrency differently. Japan treats cryptocurrency like legal…