Europe
Europe continues to actively explore cryptocurrency regulation, including forming task forces for in-depth investigations, advancing legislation, and implementing taxation policies. Notably, Bermuda and Malta have attracted significant attention from crypto firms due to their crypto-friendly policies.
European Union
The European Commission is reviewing regulatory frameworks. The European Securities and Markets Authority (ESMA) recommends banning retail investors from trading crypto derivatives and evaluates how MiFID II applies to digital assets. New policies will require platforms facilitating fiat-to-crypto transactions to verify customer identities. ESMA also tightened regulations on crypto CFDs.
United Kingdom
The UK is progressing toward formal crypto regulation:
- Established a Digital Currency Taskforce (March) to manage risks.
- The Financial Conduct Authority (FCA) mandated compliance for crypto-derivative services (April).
- Bank of England Governor Mark Carney acknowledged central bank digital currencies (CBDCs) but emphasized caution.
- The UK government is privately discussing crypto taxation guidelines.
France
- Reduced individual crypto taxes from 60% to 34% (May).
- Treating crypto as "movable property."
- Drafting ICO legislation to legitimize token sales.
Germany
- Case-by-case review for ICOs under existing financial laws.
- Six banks now offer crypto services (no violations reported).
Russia
- Opposes crypto as legal tender but aims to legalize markets by July.
- Testing its first official ICO (May).
- Adding crypto rules to civil law to mitigate risks like fraud and terrorism financing.
Switzerland
- FINMA issued ICO guidelines requiring KYC compliance.
- Exploring a state-backed "e-franc" digital currency.
Italy & Spain
- Italy: New crypto regulations pending (3-month timeline).
- Spain: Drafting tax incentives for blockchain firms and ICOs.
Bermuda & Malta
- Bermuda: Near passing ICO regulations (first globally).
- Malta: Friendly policies for exchanges; drafting Virtual Currency Act.
Africa
South Africa
- Classifies crypto as "cyber-tokens" (not currency).
- Launched a monitoring agency for systemic risks.
Zimbabwe & Kenya
- Zimbabwe: Banned bank crypto services (April).
- Kenya: Proposed a crypto regulatory taskforce (May).
Nigeria & Egypt
- Nigeria: Warns investors about unregulated risks.
- Egypt: Religious leaders oppose crypto under Islamic law.
Americas
United States
- SEC: Requires ICO compliance with securities laws.
- IRS: Taxes crypto as property.
- CFTC: Treats Bitcoin as a commodity.
- Operation Cryptosweep: Crackdown on crypto scams (May).
Canada
- OSC prioritizing crypto/ICO oversight.
- New rules classify exchanges as MSBs (KYC required).
Latin America
- Venezuela: Launched Petro coin; licensed 16 exchanges.
- Brazil: May allow indirect crypto investments.
- Ecuador/Bolivia: Ban crypto as legal tender.
FAQs
Q: Which European countries are most crypto-friendly?
A: Malta and Switzerland lead with progressive regulations.
Q: Are crypto profits taxable in the UK?
A: Yes, but new guidelines are under discussion.
Q: Can U.S. exchanges operate without SEC registration?
A: No—platforms handling securities-like tokens must comply.
Q: What’s Venezuela’s Petro coin?
A: A state-backed cryptocurrency tied to oil reserves.