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An Overview of Current Crypto Regulation and Its Future

17 July 2023 11:29, UTC

Are you thinking of buying cryptocurrency? Then you’re likely pondering if any critical rules are in place for crypto holders. There is a common delusion that crypto isn’t regulated. But the truth is that some countries have started controlling these digital assets. This is within reason, as crypto is getting more and more popular. In this page, we’ll look at the present crypto rules in various nations so you are informed before you invest!

Current Crypto Regulations in the United States

The US has certainly been busy when it comes to enforcing rules and regulations on crypto assets. In fact, they had a hard time classifying crypto for a while. Eventually, in 2021, the Securities and Exchange Commission (SEC) labelled crypto assets as a property. Owners of crypto in the US should follow the according tax laws.

Additionally, all cryptocurrency exchanges must register with the Financial Crimes Enforcement Network (FinCEN) as money service organisations and meet the anti-money laundering (AML) and know-your-customer (KYC) laws.

Current Crypto Regulations in Europe

Unlike the US, the European Union has taken longer to develop crypto laws. It wasn’t until 2020 that the European Commission came up with rules for EU countries. This was called the MiCA proposal. Their official bill was scheduled to be published in 2022 and voted for in 2023.

However, the process has been taking longer than expected. Crypto experts predict it will be published in late 2024. All cryptocurrency service providers would have to register with their national authorities and follow the Anti-Money Laundering (AML) and KYC standards under the proposed legislation.

The UK has taken things into their own hands. They haven’t declared crypto as a legal tender so far. The Financial Conduct Authority is in charge of cryptocurrency regulation in the UK. The HMRC has come out with a document explaining that crypto cannot be compared to any other familiar payment method. If you reside in the UK, your assets are taxed based on how you use them.

Germany, on the other hand, has recognised crypto as legal cash. France also followed suit — their crypto regulations state that these digital assets are monetary resources.

Current Crypto Regulations in Asia

Asia has created an interesting environment for crypto. Japan, for example, has been pro-crypto since the start, creating its own crypto regulations and distinguishing crypto as legal tender. The country has also legalised crypto exchanges.

On the opposite side of the spectrum is China, which has banned both crypto mining and trading. The country prohibits ICO offerings, too. South Korea prioritises consumer protection, and authorities allow crypto markets and transactions with strict adherence to AML and KYC laws.

Current Crypto Regulations in Africa

Most African nations have not yet defined laws or regulations for crypto regulation, which is still in its early stages in the continent. However, some countries, such as South Africa, attempted to regulate the market. Crypto regulation applies to exchanges, where they must register with the country’s financial regulator and comply with the rules.

Current Crypto Regulations in Australia

Australia has also been proactive about crypto control in the country. This is done by the Australian Taxation Office, which considers Bitcoin a financial asset. Depending on its usage, crypto is subject to different tax rates. In essence, if you sell, gift or exchange crypto in some way, you need to pay capital gains tax.

In addition, The Australian Securities and Investments Commission (ASIC) has established guides for initial coin offerings (ICOs). At the same time, the country’s tax office has issued plans on recording cryptocurrency gains and losses for tax purposes.

Where To Buy Crypto

Before you buy crypto, double-check if it’s legal where you live. Once you’ve looked into that, you will be able to buy crypto for fiat currency at online exchanges like Kraken and Binance.

On the other hand, if you are new to crypto trading, we recommend that you pair with a crypto broker. You can use a platform which employs AI in order to match you with a broker in your region. The brokers can help you reap the potential benefits of crypto investing and aid in taking your first steps in the sector.

Finally, it is crucial to note that as a trader, you should be aware of market volatility. Also, don’t forget the golden rules! Before investing:

  • Do your research.

  • Invest only what you can afford to lose.

  • Buy various assets — diversify.

  • Set decent expectations.

The Future of Crypto Regulations


The crypto market is always growing. Recently, financial experts have been coming up with ways to control the crypto sector, especially after the collapse of several companies providing blockchain financial services. We are talking about the recent failures of Terra and FTX, which have sparked talk for better ways to oversee the crypto market.

With hundreds of nations having varying rules and views, there is still a lot of confusion around the topic. Governments will likely continue working together to develop a more unified approach to crypto legislation. The table below outlines the pros and cons of crypto regulations, which you should also consider before investing:



Offers clarity and legitimacy.

May hinder development and growth.

Offers consumer protection.

Can restrict confidentiality and privacy.

Reduces criminal activity and fraud.

Challenging for cross-border control.

Favours acceptance and adoption.

May discourage people from adopting crypto.

Boosts public confidence in the market and financial stability.

Can increase fees for businesses.

Tracks crypto asset activity.

May increase charges on customer assets.

Makes the crypto market more stable.

Can create unequal opportunities for investors.

Increases tax income to the government.

Removes the perks of decentralisation.

Final Thoughts

In conclusion, whether we like it or not, regulation seems to be the way forward. But how long will developing a framework for this increasingly complex blockchain ecosystem take? Most experts give it a few years.

Despite the lack of a central authority between nations, it is inevitable that regulatory organisations will continue to be essential in determining the direction of the Bitcoin industry. Moreover, investors should keep up-to-date on the most recent news about the regulatory perimeter. Finally, asset holders should consider the significant risks and rewards of investing in cryptocurrencies as the market changes.