The worldwide economy is moving toward digital currencies and today we want to share the most important crypto regulation cases we’ve witnessed between 2021 and 2022. They offer a fantastic alternative to government-controlled currencies due to their transparency, decentralization, and lack of control by any government. Cryptocurrencies are becoming increasingly popular as a result of their benefits, which has driven the crypto market to expand quickly.
Crypto regulation cases in 2021–2022 by country
While some governments see cryptocurrency as a risky asset, others have recognized its popularity and are looking for ways to control it. Recently, several crypto rules have been announced across the world. So let’s take a look at several of the most prominent instances from 2021 and early 2022.
EU crypto regulation
The legal status of cryptocurrency transactions varies from nation to nation in the EU, but they are usually tolerated. Capital gains taxes range from 0% to 50% across the EU member states. The European Union’s fifth and sixth Anti-Money Laundering Directives (AMLD5 and AMLD6) went into effect in 2020, imposing KYC/CDD requirements on exchanges and mandating adherence to stringent reporting standards.
The European Union is still experimenting with ways to regulate cryptocurrencies, and there is no comprehensive framework in place. In July 2021, the European Commission unveiled a collection of legislative suggestions for virtual asset service providers (VASPs). The proposals will extend the transfer of funds rules (TFR) to all VASPs across Europe and will impose data gathering restrictions.
Canada crypto regulation
Canada has taken a proactive approach to promoting cryptocurrency adoption. Although cryptocurrencies are not recognized as legal currency in Canada, they may be used to make purchases at merchants that accept them. Since 2014, the government has been attempting to regulate crypto, and since 2011, Canada had begun taxing crypto transactions.
In 2021, the Canadian Securities Administrators (CSA) published guidance for crypto companies that own or manage digital currencies. Canada became the first country to approve a Bitcoin ETF in February of the same year.
South Korea crypto regulation
In South Korea, cryptocurrency is not considered as a legal tender. Since cryptocurrencies are not recognized as financial assets, there is no capital gains tax on their profits in the country. The transactions are lawful, but they must be registered with the government and follow strict FSS (Financial Supervisory Service) rules.
All cryptocurrency exchanges in South Korea must meet AML/CFT standards and obtain a license from the Financial Services Commission’s Financial Intelligence Unit (FIU). All privacy coins have been removed from transactions on Korean banks in 2021. In 2022, the South Korean government is expected to release the taxation framework for cryptocurrencies.
Switzerland crypto regulation
Switzerland looks to be the ideal location for cryptocurrency enthusiasts right now. In Switzerland, digital assets are legal and are subject to wealth taxes. The Swiss Financial Market Supervisory Authority (FINMA) requires that crypto exchanges be certified.
The Swiss town of Zug is a major player in the crypto sector, frequently dubbed the “crypto valley.” The Swiss Federal Council presented a proposal in 2021 to assist adapt laws to the newest cryptocurrency trends.
The United States crypto regulation
The majority of crypto investors are based in the United States, so they’re waiting to see how the American government will react to the regulatory quandary. The Treasury Department’s Office of Foreign Assets Control (OFAC) published Sanctions Compliance Guidance for the Virtual Currency Industry.
There are requirements for crypto industry workers, but no draconian measures have been established. It’s expected that the Biden administration will release its cryptocurrency regulation plan this year. Most likely, it will address safety and risk concerns, CBDC regulations, and so on.
Australia crypto regulation
In 2017, Canada legalized cryptocurrencies as property subject to capital gains taxation. As long as transactions are registered with the Australian Transaction Reports and Analysis Centre (AUSTRAC) and follow AML/CTF standards, crypto trading is permissible in Australia.
In December, the Australian government announced that it will release a new cryptocurrency exchange licensing framework in 2022. The planned initiative would bring digital assets one step closer to being completely regulated in Australia.
India crypto regulation
As of 2022, India’s position on cryptocurrencies is still uncertain as new rules are being implemented. Over the previous years, a slew of bills have been introduced proposing rather strict crypto rules – almost to the extent of considering a total ban. However, the Standing Committee on Finance in India recently determined that regulating digital assets rather than banning them would be more successful. Crypto transactions in India may be taxed at a rate of 30%, according to finance minister Bhagwat Karad.
Brazil crypto regulation
In 2021, Brazil was considering a bill that would oversee the use of digital currencies in the country. It will allow citizens to make Bitcoin and other cryptocurrencies payments and investments. The legislation also establishes penalties for crypto-related offenses. If passed, the law will take Brazil one step closer to making cryptocurrency legal tender.
El Salvador crypto regulation
El Salvador is the first and only country to recognize Bitcoin as legal tender (although it is not yet on any exchanges). El Salvador made headlines in September 2021 with this news. President Nayib Bukele has expressed support for digital assets and optimism that making Bitcoin and the US dollar official currencies would help the economy grow.
El Salvador’s president does not appear to be changing his stance and still believes in the power of Bitcoin. In fact, for the first time in its history, El Salvador’s GDP increased by 10.3% in 2021. This could signify a more stable economy for the country.
China crypto regulation
Similarly, China has taken a significant step toward crypto regulation, albeit in the wrong direction. The Chinese government announced in the fall of 2021 that all crypto-related activities are now illegal in the country. Because China was one of the world’s largest cryptocurrency players, the enforcement of the ban had a big influence on markets and crypto mining. Perhaps it has something to do with China’s CBDC.
Russia crypto regulation
Russia was one of the last to announce sector regulation in early 2022. Despite initially proposing to ban cryptocurrency, the Russian government announced a strategy for regulating the industry. Digital assets will most likely be treated as foreign currencies, according to the proposal. Although it intends to allow and regulate crypto transactions, cryptocurrencies are unlikely to become legal.
Ukraine crypto regulation
President Volodymyr Zelenskyy of Ukraine has signed a bill that legalizes virtual assets and cryptocurrencies. In its battle with Russia, Ukraine is awash with millions in cryptocurrency donations for military and humanitarian aid.
The law “determines the legal status, classification and ownership of virtual assets,” according to a statement shared by the National Bank of Ukraine and the National Commission on Securities and Stock Market, the Ministry of Digital Transformation.
Conclusion
Some of the world’s biggest economic powers are moving toward crypto regulation, as we can see. They reduce the crypto industry’s independence, regardless of whether laws declare digital assets legal money or prohibit them entirely. It’s difficult to say what will happen next in the cryptocurrency regulations arena: they’re just as unpredictable as the crypto market itself.
