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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