Global Crypto Regulations Outlook

REGIONS

EUROPE

2024 IS BRINGING A WAVE OF SWEEPING CHANGES ACROSS THE EUROPEAN CRYPTO LANDSCAPE.

The rollout of the Markets in Crypto Asset Regulation (MiCA) in EU states is reshaping the scene, even influencing economic partners like Switzerland.

Asthisunfolds,Europeanregulatorsarejoiningforcestostreamlinehowthey categorize,monitor,andhandlethetechsideofcryptoassets.Theaimisto createaunifiedapproachacrossthecontinent,withdifferenttypesofcrypto assetsgettingtheirownuniquesetofrules

Sources:

[1]https://wwwshyftnetwork/newsroom/mica-paving-the-way-from-liability-to-transparency

EUROPEAN UNION

EuropeanSecuritiesandMarketAuthority(ESMA)toreleasecryptoguidelines underMiCAin2024.

EUstatestodecideonMiCA'sgrandfatheringschemebyJune30,2024.

TheSecuritiesandMarketsStakeholderGroup toadviseESMAonMiCA-DeFi alignmentbytheendof2024.

Sources:

[1]https://wwwesmaeuropaeu/esmas-activities/digital-finance-and-innovation/markets-crypto-assets-regulation-mica [2]https://wwwregulationtomorrowcom/eu/esma-encourages-smooth-transition-to-mica/ [3]https://wwwesmaeuropaeu/sites/default/files/2023-10/ESMA24-229244789-4595 SMSG Advice on MiCA package 1pdf

THEUNITED KINGDOM

UKtoincorporatecryptoactivitiesintoexistingfinancialframework

Cryptofirmsmustcomplywithtraditionalbankingregulations

FinancialConductAuthoritytoprovideguidanceforauthorization

Distinctregulationsfordifferenttypesofcryptoassetscomingthisyear

Legislationforthisframeworkexpectedin2024,withtransitionalarrangements

Immediatefocusonregulatingfiat-backedstablecoinsusedinpayments

Legislationforstablecoinstargetedforearly2024

RegulationofDecentralizedFinancestillunderconsideration

Sources:

[1]https://decryptco/200289/uk-wont-be-copying-mica-crypto-parliamentary-group-chair [2]https://wwwcoindeskcom/policy/2023/02/01/uk-crypto-firms-to-get-broad-laws-may-need-new-authorization/ [3]https://wwwtaxjournalcom/articles/-it-would-be-premature-ineffective-for-the-uk-to-regulate-defi-activities-currently-says-treasury#: :text=the%20UK%20government%20does%20notto%20regulate%20DeFi%20activities%20currently

SWITZERLAND

SwitzerlandtoimplementCARFimplementationthisyear.

AconsultationdrafttoimplementcryptoregulationsisduebyJune2024

Sources:

[1]https://wwwoecdorg/tax/exchange-of-tax-information/crypto-asset-reporting-framework-and-amendments-to-the-common-reporting-standardpdf [2]https://wwwefdadminch/efd/en/home/the-fdf/nsb-news listmsg-id-98545html

ASIAPACIFIC

Governments are also emphasizing the importance of security and compliance, with regulations targeting anti-money laundering (AML), know-your-customer (KYC) procedures, and robust cybersecurity standards.

Additionally, emerging technologies like DeFi, NFTs, and stablecoins are receiving regulatory attention, leading to the development of comprehensive policies and guidelines

JAPAN

ExpectedenhancedfocusoncryptoregulationinJapanin2024.

Thecountrymayrollouttaxreformstosupportcryptostartupsthisyear

Sources:

[1]https://wwwtheblockco/post/269200/japan-seeks-to-exempt-companies-from-tax-on-unrealized-crypto-gainsreports#: :text=The%20Japanese%20government%20has%20approvedaccording%20to%20local%20media%20reports

INDIA

ThedeliberationoverthecryptocurrencybillwillcontinueinIndiathisyear.

India’sCentralBank,theRBI,favorsCBDCs,asitwillremaincautiousof cryptocurrencies.

Sources:

[1]https://wwwforbesindiacom/article/crypto-made-easy/rbi-ranks-crypto-near-the-bottom-of-systematic-risks-despite-harsh-criticism/77763/1

SOUTH KOREA

SouthKoreawillintroduceatwo-partcryptoregulationframeworkin2024.

TherewillbenosupportforcryptoETFs,andcreditcardcryptopurchases maysoonbebannedinthecountry.

Cryptoholdingdisclosureswillbecomemandatoryforcompaniesandofficials fromnextyear

Sources:

[1]https://wwwoecdorg/tax/exchange-of-tax-information/crypto-asset-reporting-framework-and-amendments-to-the-common-reporting-standardpdf [2]https://wwwcoindeskcom/policy/2024/01/04/south-korea-regulator-seeks-ban-on-crypto-purchases-with-credit-cards/amp/ [3]https://cryptonews/south-korea-to-mandate-crypto-disclosure-for-5800-officials-in-2024/

SINGAPORE

Thecountry'sregulatoryagencywillcontinuecurbingspeculativecrypto tradingthisyear.

Cryptocreditcardpurchaseswillbebannedstartingmid-2024.

Sources:

[1]https://wwwoecdorg/tax/exchange-of-tax-information/crypto-asset-reporting-framework-and-amendments-to-the-common-reporting-standardpdf [2]https://wwwcoindeskcom/policy/2024/01/04/south-korea-regulator-seeks-ban-on-crypto-purchases-with-credit-cards/amp/

HONGKONG

HongKongtoreviewspotcryptoETFandvirtualassetfundapplications.

Thecountry'sregulatorsaimtomakesignificantprogressinregulating stablecoins.

HongKongwilllauncharegulatory"sandbox"sometimethisyear.

Sources:

[1]https://wwwoecdorg/tax/exchange-of-tax-information/crypto-asset-reporting-framework-and-amendments-to-the-common-reporting-standardpdf [2]https://wwwcoindeskcom/policy/2024/01/04/south-korea-regulator-seeks-ban-on-crypto-purchases-with-credit-cards/amp/ [3]https://wwwhkmagovhk/eng/news-and-media/press-releases/2023/12/20231227-4/

CHINA

ThePeople'sBankofChinaisadvocatingforglobalcryptoregulations.

Chinaaimstostandardizethemetaversesectorin2024

Theconversionofvirtualgamingtokenstoreal-worldassetsmaybebanned inChinathisyear.

Sources:

[1]https://cointelegraphcom/news/china-pboc-crypto-defi-stability-report [2]https://wwwtheblockco/post/273492/china-forms-metaverse-working-group-with-huawei-tencent-ant-group-andothers#: :text=China%20has%20formed%20a%20workinggrowth%20of%20the%20nascent%20industry [3]https://cryptoslatecom/chinese-regulators-aim-to-disconnect-gaming-tokens-from-real-worldcurrency/#: :text=Chinese%20authorities%20have%20proposed%20a,regulations%20for%20the%20gaming%20industry

AUSTRALIA

Australiatoadvanceitscryptolicensingframeworkin2024,withnewlicensing andcustodyrules.

A12-monthtransitionalperiodwillbeimplementedoncetheframeworkis approved.

TheTreasuryandReserveBankofAustraliawillreleaseajointCBDCresearch reportthisyear

Sources:

[1]https://paymentexpertcom/2023/10/16/australia-new-crypto-regulations-2024/ [2]https://wwwrbagovau/payments-and-infrastructure/central-bank-digital-currency/pdf/australian-cbdc-pilot-for-digital-finance-innovation-project-reportpdf

THE AMERICAS

Governments throughout the Americas are actively enhancing cryptocurrency regulations to address common concerns. They're taking steps to combat issues like money laundering and fraud and safeguard investors.

A prominent focus is on regulating stablecoins, with measures to ensure that issuers maintain sufficient reserves and adhere to financial rules gaining traction.

Additionally, tax regulations concerning cryptocurrencies are being clarified, encompassing reporting requirements, capital gains taxes, and income tax obligations for crypto-related activities

THEUNITED STATES

TheUSlaunchedthefirstSpotBitcoinETFinearly2024.

SECwillmaintainstrictcryptooversight.

Stablecoinlegislationisexpectedpost-ClarityActreviewin2024.

FinancialInnovationActmayredefinecryptoascommoditiesin2024.

"ResponsibleFinancialInnovationAct"aimstoclassifycryptosas commodities.

2021InfrastructureActmandatesIRScryptoreportingover$10,000since January2024

November2024electionscouldreshapeUScryptopolicy.

Sources:

[1]https://wwwsecgov/news/statement/gensler-statement-spot-bitcoin-011023 [2]https://wwwcongressgov/bill/118th-congress/house-bill/4766/text [3]https://crsreportscongressgov/product/pdf/IN/IN12223 [4]https://wwwcongressgov/bill/117th-congress/senate-bill/4356/all-info [5]https://wwwbdocom/insights/tax/infrastructure-investment-and-jobs-act-contains-new-cryptocurrency-reporting-requirements

CANADA

CSAannouncednewcryptoregulationsforpublicfundsinJanuary2024

FeedbackisopenuntilApril17,2024.

Onlynon-redeemableandalternativefundscandirectlyhandlecrypto.

Mutualfundscanonlyinvestincryptoviathesefunds.

Cryptoassetsmustbefungible,insured,offlinestored,andlistedon Canadianexchangeswithanannualreview.

Sources:

[1]https://wwwsecurities-administratorsca/news/canadian-securities-regulators-seek-feedback-on-rules-for-public-investment-funds-holding-crypto-assets/

BRAZIL

Policymakersplantotightencryptoregulationsandincreasesupervision overbrokeragesin2024.

FromJan1,2024,thenewcryptoincometaxis15%onearningsover$1,200 fromforeignexchanges.

Brazil'sCBDC,DREX,wastesteduntilFeb14,2024,withaplannedyear-end publiclaunch

Sources:

[1]https://wwwreuterscom/world/americas/brazil-government-tax-income-financial-investments-obtained-abroad-2023-05-01/ [2]https://financeyahoocom/news/brazil-central-bank-names-digital-193619347html

COLOMBIA

Acomprehensivecryptobilliscurrentlybeingprepared

ThebillwillrequireExecutiveandCongressionalapprovalfirstbeforebeing presentedintheColombianparliament.

Sources:

[1]https://wwwambitocom/adjuntos/239/documentos/041/223/0041223294pdf

ARGENTINA

Argentinaplanstolegalizecryptocurrenciesthisyear

PresidentMileiispushingforIMF-alignedcryptoregulationin2024.

Taxratesforcryptoholdingsunderthedraftbillare5%untilMarch,10% throughJune,and15%untilSeptember2024.

Sources:

[1]https://wwwambitocom/adjuntos/239/documentos/041/223/0041223294pdf

MIDDLEEAST &AFRICA

In the Middle East and Africa, governments are attempting to strike a balance between nurturing the growth of digital finance and addressing regulatory challenges

This trend involves a focus on developing structured frameworks for cryptocurrencies, especially stablecoins, reflecting an awareness of their growing economic impact.

However, there's also an emphasis on enhancing anti-money laundering and combating the financing of terrorism measures within the crypto sector.

THEUNITED ARAB EMIRATES (UAE)

TheUAEwillfinalizeitsstablecoinlawsthisyear

VARAwillbeginregulatingfiat-referencedvirtualassets(FRVAs), categorizingthemin'category1'.

Stablecoinissuerswillnowhavetoobtainauthorizationandalicensefrom VARAandcomplywiththeFRVARules.

TheUAE'sFinancialServicesRegulatoryAuthoritywillenforcetheFATF TravelRulefordigitalassettransfersthisyear.

Sources:

[1]https://wwwpinsentmasonscom/out-law/news/dubais-move-oversee-stablecoins-bring-certainty-regulatory-grey-area [2]https://wwwshyftnetwork/newsroom/a-guide-to-fatf-travel-rule-compliance-in-the-uae

SAUDI ARABIA

SaudiArabiacurrentlyhasnocryptoframeworkandprohibitsbanksfrom cryptotransactions.

Thecountry'sCentralBankSAMAemphasizestheneedforcrypto regulationandsupervision.

SAMAandUAE'scentralbankwillcontinuecooperatingontheCBDC projectforcross-borderpayments

Sources:

[1]https://saudigazettecomsa/article/636735/SAUDI-ARABIA/SAMA-chief-warns-against-dangers-of-crypto-currencies [2]https://wwwcentralbankae/media/cbshgsmf/aber-report-2020-enpdf

SOUTH AFRICA

SouthAfricalegalizedcryptocurrencieslastyear

Alicenseisnowmandatoryforcryptoexchanges.

CryptocurrencyserviceswillberegulatedinSouthAfricabytheupcoming ConductofFinancialInstitutionsbill.

ThecountryisimplementingstricterAMLmeasuresincryptotoexitfrom FATFgreylistby2025.

Sources:

[1]https://wwwfscacoza/News%20Documents/FSCA%20Press%20Release Declaration%20of%20Crypto%20Assets%20As%20A%20Financial%20Product 20%20October%202022pdf [2]https://wwwcoindeskcom/policy/2023/05/25/south-africas-crypto-firms-will-soon-need-to-apply-for-registration-or-face-a-heavy-fine/? gl=1*1cr5fq9* up*MQ * ga*NTE1NjY2NzkxLjE3MDU4MjY0MDI* ga VM3STRYVN8*MTcwNTgyNjQwMS4xLjAuMTcwNTgyNjQwMS4wLjAuMA [3]https://wwwtreasurygovza/public%20comments/2020%2010%2008%20CoFI%20Bill%20(version%20published%20for%20comment)%20(slightly%20updated)pdf

NIGERIA

NigeriahasintroducednewVASPregulationswithstrictKYCandAML Banksstillcan'ttradeorholdcryptocurrencies.

Thecountry'sSEChasbegunprocessingcryptocustodianandexchange licenseapplications.

Sources:

[1]https://wwwreuterscom/world/africa/nigerian-central-bank-lifts-ban-crypto-trading-2023-12-23/ [2]https//wwwcbngovng/Out/2024/FPRD/GUIDELINES%20ON%20OPERATIONS%20OF%20BANK%20ACCOUNTS%20FOR%20VIRTUAL%20Asset%20Providerspdf

KENYA

TheKenyangovernmentispreparingcomprehensivedigitalasset regulationsfollowingtheFinanceBill2023.

TheBlockchainAssociationofKenyaisdraftingacryptobillforlegislative review.

Kenyawillbecomethefirstcountrywherethecryptoframeworkwas developedbyindustryrepresentatives

CONCLUDING THOUGHTS

In 2024, we’re at a crossroads as far as global crypto regulations are concerned. Across the globe, from the European Union to the United States, governments are crafting new rules, influencing how the world perceives and uses cryptocurrencies in everyday life

While each country’s approach varies, it’s crucial to ensure that the underlying intent remains consistent: safeguarding user experience and security. The decisions made this year will not only shape the immediate future of cryptocurrencies but will also lay the groundwork for their integration into the mainstream global financial ecosystem.

So, this year will go down in history as a defining moment for the crypto industry, one that could determine its trajectory for the years to come.

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