The usage of crypto exchanges are continuously boosting, and the regulations governing the cryptocurrency around the world are increasing and updating on a regular basis. As the cryptocurrency exchanges & the bitcoin code platform aspects are continuously evolving in this case, keeping ourselves aware of these revised rules in various global territories isn’t simple. Transformation in cryptocurrency from speculative/risky investment to a well-balanced portfolio assists in continuing to achieve pace. Different governments worldwide were also divided on their views on regulating the crypto emerging asset class.
We have generated this guide to assist you in the cryptocurrency worldwide regulations arrangement, their attitude towards the legislation, and their associated activities. Let’s Learn how different countries approach coin & exchange laws and if they have any impending rules which may change their approach to cryptocurrencies.
In 2018 a new set of laws for providers of digital currency exchange was imposed by the Australian Transaction Reports & Analysis Center (AUSTRAC), AML/CTF regulator & the financial intelligence agency. Accordingly, the companies are bound to register and execute the KYC policies, report the dubious transactions, and comply with the AML regulations.
In December 2021, Australia reported that it would develop a framework based on licensing for cryptocurrency exchanges & check out to initiate a retail CBDC for an overhaul of the payment industry. Australian treasurer, Josh Frydenberg, mentioned that the government started consultation in early 2022, based on a licensing framework for digital exchanges that helps the crypto-assets sell and purchased by customers in a regulated environment.
The Australian government consulted on regulating businesses that have crypto-assets for their consumers and on the usefulness of a central bank’s digital currency; he also stated that the applied taxes on cryptocurrencies in Australia are under a course of 19-45% capital gains taxes.
Canadian regulators typically have a proactive approach toward crypto. Canada is the first country that approves a Bitcoin exchange-traded fund (ETF) 1st time on 18th Feb 2021 & 2nd time on 19th Feb 2021, respectively, both on the Toronto Stock Exchange.
Moreover, the Canadian Securities Administrators (CSA) & the Investment Industry Regulatory Organization of Canada (IIROC) have mentioned that the crypto trading networks & dealers must authorize themselves with provincial regulators. Canada also featured the crypto investment firms as money service businesses (MSBs). The crypto platforms must register with the Financial Transactions & Reports Analysis Center of Canada (FINTRAC). From a taxation point of view, Canada treats cryptocurrency like other commodities.
European Union (EU countries)
Cryptocurrency is legally permissible in almost all of Europe, while the exchange laws depend on the European member states. The tax laws are also different according to the member country within the EU, which typically ranges from 0% to 50%. The European Union’s 5th & 6th Anti-Money Laundering Directives have been launched, striking the KYC/CFT regulations of reporting requirements.
In recent years, the European Commission put forward the Crypto-Assets market’s Regulation (Mica), which is a framework that enhances the safety of customers, states clearly the crypto industry rules, & initiated the new requirement for licensing.
Crypto exchanges should be registered with the Financial Conduct Authority (FCA) and comply with AML/CFT reporting laws and regulations in the United Kingdom. Although it doesn’t provide particular directions for exchanges, the FCA rules forced that the firms engaging with crypto assets should follow the Terrorist Financing, Money Laundering, and Transfer of Funds 2017 Regulations (MLRs). The updates of these regulations were included in FATF guidelines in January 2020.
However, the UK’s cryptocurrency laws can mainly be aligned with the EU on a short-term basis but change from the bloc to some extent in the coming years. In January 2022, the UK government stated the plans for the legislation that address ‘misleading promotion of crypto assets’ with the thought to bring cryptocurrency to turn away ‘in line with any other financial advertising.’
China doesn’t classify cryptocurrency exchanges as legal tender, although it classifies them as a property for determining inheritances. The People’s Bank of China (PBOC) prohibited crypto exchanges from operating in the country by mentioning that they are facilitating public financing without approval.
The world’s biggest crypto exchange, Binance, was 1st launched in China, but later it moved its headquarters following the country’s crypto regulation crackdown. The current location of Binance’s headquarters is unrevealed, although people believe it has existed in Malta or the Cayman Islands.
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