All You Need to Know About Crypto Regulations Worldwide

Scams, fraud, mismanagement, and an overall lack of transparency in the web3 industry are globally triggering the regulators’ radar now more than ever. So we crafted this guide with all you need to know about crypto regulations.

The lack of standardized regulations has created an environment of uncertainty, making it challenging for businesses and investors to navigate the ever-changing landscape of cryptocurrencies. In response to these challenges, global regulatory bodies are now taking steps to create a coordinated approach to regulating the cryptocurrency industry.

Occasionally, fraudsters and opportunists promising riches usually exploit investors´ lack of education and gray zones in the crypto industry today. This is why investors need to educate themselves about decentralized applications by using great dapp tools and analytics.

This article will be continuously updated, so bookmark it to keep track of the latest regulatory events and how they might impact dapps (decentralized applications). Last updated on March 10, 2023.

Crypto regulation news per region

Crypto regulation in the Americas

🇺🇸 United States

As of now, there is no comprehensive regulatory framework for digital assets in the United States yet. Despite various registration requirements and jurisdictional claims by regulators, it is still unclear which regulators have the authority to govern digital assets. However, there is a growing effort from the US government to enforce more regulation on digital assets.

January 1, 2023 – Starting this year, a law passed in November 2021 will require greater tax reporting for individuals in the digital asset industry. Under this law, brokers – which also includes those who transfer digital assets for others – will be required to report relevant information to the IRS on a 1099 or similar form.

September 16, 2022 – The White House releases its first Crypto Regulatory Framework. With a clear focus on protecting customers, preventing crime, and the possible launch of a CBDC, it’s clear that the government wants to harness the opportunities that crypto presents while also tackling the risks.

– The White House releases its first Crypto Regulatory Framework. With a clear focus on protecting customers, preventing crime, and the possible launch of a CBDC, it’s clear that the government wants to harness the opportunities that crypto presents while also tackling the risks. July 26, 2022 – US senators Pat Toomey and Kyrsten Sinema introduced a new bipartisan bill, “Virtual Currency Tax Fairness Act,” to simplify the use of digital assets for everyday purchases. It proposes tax exemptions for personal crypto transactions that give a capital gain of less than $50 or that are under $50 as well. This bill has the support of the senators who introduced the previous $200 bill.

– US senators Pat Toomey and Kyrsten Sinema introduced a new bipartisan bill, “Virtual Currency Tax Fairness Act,” to simplify the use of digital assets for everyday purchases. It proposes tax exemptions for personal crypto transactions that give a capital gain of less than $50 or that are under $50 as well. This bill has the support of the senators who introduced the previous $200 bill. July 9, 2022 – The United States Treasury delivered president Biden a framework, as directed in Executive Order, for the US and its foreign allies (G7 and G20 countries) to collaborate to create international standards for crypto regulation.

– The United States Treasury delivered president Biden a framework, as directed in Executive Order, for the US and its foreign allies (G7 and G20 countries) to collaborate to create international standards for crypto regulation. June 8th, 2022 – New York legislators issue a guideline for stablecoins indicating that all stablecoins must be fully backed. All stablecoin issuers must have clear redemption and backing of dollar-pegged stablecoins.

New York legislators issue a guideline for stablecoins indicating that all stablecoins must be fully backed. All stablecoin issuers must have clear redemption and backing of dollar-pegged stablecoins. June 7th, 2022 – Senators Lummis and Gillibrand introduced the “Responsible Financial Innovation Act” seeking to act as a new federal law for stablecoins exempting these digital assets from taxes for small-scale payments under $200. Stablecoins play an essential role in the DeFi ecosystem.

Senators Lummis and Gillibrand introduced the “Responsible Financial Innovation Act” seeking to act as a new federal law for stablecoins exempting these digital assets from taxes for small-scale payments under $200. Stablecoins play an essential role in the DeFi ecosystem. June 3rd, 2022 – New York legislators passed a bill addressing environmental concerns and banning crypto mining that is carbon-based. Bitcoin uses Proof Of Work; an energy-demanding software algorithm that requires computational power.

Check out the leading dapps from the US.

🇸🇻 El Salvador

In June 2021, El Salvador became the first country in the world to adopt bitcoin as a legal tender. In terms of regulation, the government has issued guidelines for the use of bitcoin and other cryptocurrencies, and has set up a regulatory sandbox to allow companies to test innovative financial products and services.

January 12, 2023 – El Salvador’s congress has approved a digital securities law that enables the nation to raise funds through the world’s first sovereign blockchain bond. The law creates a framework for President Nayib Bukele’s plans to issue Bitcoin-backed bonds.

January 25, 2022- The IMF strongly urges El Salvador to drop bitcoin as legal tender after Nayib Bukele doubles down and buys the dip. The relationship between El Salvador, the IMF, and the United States seemingly deteriorates and critics claim Bitcoin is not leading to financial inclusion and there are no widespread day-to-day transactions.

The IMF strongly urges El Salvador to drop bitcoin as legal tender after Nayib Bukele doubles down and buys the dip. The relationship between El Salvador, the IMF, and the United States seemingly deteriorates and critics claim Bitcoin is not leading to financial inclusion and there are no widespread day-to-day transactions. September 8, 2021 – The controversial “Bitcoin Law” comes into force facing criticism from the IMF and crypto opponents. The regulation includes a set of conduct that all bitcoin service providers must comply including anti-money laundering measures, comprehensive risk management, cybersecurity programs, and insolvency plans.

– The controversial “Bitcoin Law” comes into force facing criticism from the IMF and crypto opponents. The regulation includes a set of conduct that all bitcoin service providers must comply including anti-money laundering measures, comprehensive risk management, cybersecurity programs, and insolvency plans. June 8th, 2021- President Nayib Bukele sends out his Bitcoin Law project to congress to promote real financial inclusion and a dynamic economy. The Law was preliminarily approved by 62 general votes from the General Financial Legislation committee.

🇨🇦 Canada

Canada’s Regulatory Sandbox allows fintech firms to offer innovative products with proper safeguards. Over 10 crypto trading platforms have received permission to operate in Canada, and around 40 crypto ETFs have been issued. The regulatory approach prioritizes the safety of investors and aims to regulate the crypto industry like other asset classes.

February 22, 2023 – Canadian crypto trading platforms must provide an enhanced pre-registration undertaking within 30 days of CSA’s notice publication, detailing their commitment to investor protection, to continue operating while pursuing registration.

December 13, 2022 – Canadian Securities Administrators (CSA) requires crypto exchanges operating in Canada to segregate user funds from operational cash, use qualified custodians for Canadian users’ assets, and prohibits margin crypto trading for all traders based in Canada, including institutions.

January 1st, 2022- The Canada Revenue Agency demands that Canadian Money Service Businesses (MSBs) have to report transactions greater than $10,000. So if an investor buys $10,000 worth of crypto from an exchange, the investor has to pay tax on crypto in Canada.

The Canada Revenue Agency demands that Canadian Money Service Businesses (MSBs) have to report transactions greater than $10,000. So if an investor buys $10,000 worth of crypto from an exchange, the investor has to pay tax on crypto in Canada. February 10th, 2021- Deputy governor Timothy Lane, agrees with the conclusions brought up in the discussion paper but shows himself open to the idea of stablecoins as a viable payment innovation. The Bank of Canada is also pursuing an active research agenda on Central Bank Digital Currencies.

Deputy governor Timothy Lane, agrees with the conclusions brought up in the discussion paper but shows himself open to the idea of stablecoins as a viable payment innovation. The Bank of Canada is also pursuing an active research agenda on Central Bank Digital Currencies. February 1st, 2019- The bank of Canada releases a discussion paper, “Crypto “Money”: Perspective of a Couple of Canadian Central Bankers” examining the role of crypto as money and whether it should become legal tender. The conclusion was that it is unlikely that crypto can be part of a stable monetary system.

🇲🇽 Mexico

The Fintech Law in Mexico allows banks to conduct transactions with crypto-assets, but regulations issued by the Mexican Central Bank in 2019 restrict such transactions to “internal operations” only. Mexican banks cannot use virtual assets for transactions with clients.

However, non-financial entities may offer crypto-related services, including the sale and purchase of crypto, without obtaining particular licenses.

December 29, 2021 – The Mexican central bank has announced that the digital peso, their planned central bank digital currency (CBDC), is unlikely to be launched by the originally announced date of 2024. Banxico representatives stated that the currency’s development is still in the early stages, and there is currently no set launch date.

February 21, 2022 – Senator Indira Kempis is developing a bill that seeks to emulate El Salvador´s “Bitcoin Law”. She aims to introduce the bill in the Mexican congress this year. If passed, the bill would make Bitcoin legal tender in Mexico.

– Senator Indira Kempis is developing a bill that seeks to emulate El Salvador´s “Bitcoin Law”. She aims to introduce the bill in the Mexican congress this year. If passed, the bill would make Bitcoin legal tender in Mexico. June 28, 2021 – After a joint statement, the Central Bank of Mexico, the finance secretary, and the National Banking and Securities Commission determine that financial institutions in Mexico are not authorized to deal with virtual assets. In Mexico, cryptocurrencies are neither legal tender assets nor currencies.

🇭🇳 Honduras

The legal status of cryptocurrency in Honduras is unclear, but the government has warned citizens about the risks of investing in cryptocurrencies.

August 1, 2022 – The Central Bank of Honduras issued a statement announcing that “Cryptocurrency assets do not have support, so they are not regulated nor is their use guaranteed, therefore, they do not enjoy the protection granted by national laws.” They remain in a gray area, and their existence is not acknowledged in any bill yet.

🇧🇷 Brazil

Cryptocurrency is defined as digital assets that can be traded, transferred, and used for payments or investments. Providers must comply with anti-money laundering and anti-terrorism financing laws or face jail time.