Nowadays, the increasing use of cryptocurrencies and tokens for financial exchange is becoming more and more evident. In recent years, the world has been preparing to adopt these digital assets in a more serious way. New legislation is being proposed in different countries to promote the prevention of money laundering. Because this is one of the direct consequences of the use of cryptoassets resulting from the encryption of the data of those involved. Indeed, the regulation of cryptocurrencies is a necessary step to prevent money laundering and contribute to global economic growth. So in this article we will talk about some experiences of cryptocurrency regulation in the world today.

Europe

The European Union, although it has not made any specific legislation, has been working on regulations that promote the prevention of money laundering. There is a proposal called MiCA (markets in crypto-assets) known as the draft cryptocurrency regulation. This regulation promotes the development and advancement of cryptocurrencies within a framework of legal certainty that protects users in their transactions.

Thus, companies or individuals providing crypto-asset services will be obliged to comply with different requirements such as having a tax domicile in one of the Member States. As well as defining the rules for the protection of consumers in case of loss or fraud in the case of platforms. exchange. Although other countries have already approved this type of proposals, the case of Europe is different because it is a general EU legislation that must be applied and complemented by each country. So this opens the possibility of having a general regulation of cryptocurrencies in a large extension of territory, giving the possibility to each country to experiment and legislate according to specific needs.

France

The French Ministry of Finance is promoting the creation of new measures so that companies that make a living around Bitcoin and other cryptocurrencies can effectively control their transactions. To this end, they propose banning anonymous cryptocurrency accounts applying digital identification tools on the platforms of exchange.

Spain

There is an initial regulation in Spain in Royal Decree-Law 7/2021, which will be further expanded when the European Regulation is approved. This decree specifies who will be affected by these laws and where they must be registered in the registry of the Bank of Spain. This will ensure that exchange companies, wallets and other digital services are registered in order to pay taxes and be able to provide their services in Spain.

United Kingdom

In September in the United Kingdom a group of legislators demanded greater oversight and regulation of cryptocurrencies in the territory. This is an initiative of the UK Treasury Committee where the benefits and risks inherent in the use of cryptoassets are being explored. There it has been concluded that cryptocurrencies do not have an intrinsic value and are vulnerable to manipulation, so their regulation in the country is going to start from the stablecoins. The Bank of England and the Treasury Department are evaluating the addition of this type of cryptocurrency to their daily transactions.

In order to include cryptocurrencies in their regular transactions, they are in the process of drafting rules that will regulate financial technologies. However, the lack of a legal framework has not prevented a reduction in the use of cryptoassets in the country, but rather has managed to highlight the risks present and users are being more cautious. For the time being, British citizens are waiting for the official regulation of cryptocurrencies in their country, but they do not stop exchanging financial assets through the network.

Central America

El Salvador

A few months ago the Salvadoran parliament legalized the circulation of Bitcoins as currency in course. This means that all economic agents that carry out commercial transactions in the country must accept Bitcoins as a form of payment. With this the government is committed to create the structural and legal security that users need to be able to exchange, buy and sell the cryptocurrency in the country. This step is a milestone as no country in the world has ever declared any cryptoasset as a legal tender. In fact, Japan, despite being an advanced country in the field of cryptocurrencies, has only managed to set it up as a payment method, but not as a legal currency capable of being accepted by public entities.

Mexico

In Mexico the situation is different, thanks to the momentum of El Salvador, the acceptance of cryptoassets seems to be at least under discussion. Representatives of the Ministry of Finance and Public Credit, the National Banking and Securities Commission and the Bank of Mexico have communicated their concerns regarding digital assets and their risks. So they maintain that no financial institution based in the country is authorized to make transactions with cryptocurrencies. The still distrust is due to the increased use of cryptocurrencies by drug cartels in Central America, so money laundering has also increased.

United States

Recently the president of the Securities and Exchange Commission, Gary Gensler stated that his institution has the tools to regulate cryptocurrencies. Also his idea goes towards protecting users of platforms that trade securities and loan products. Cryptocurrency pools and wallets operate in the United States only on platforms that have a tax address in the country. And it is expected that in the future some tokens will have attributes that are more in line with the Securities, so that their legalization and the legal framework where they operate could have more security within public policies.

Latin America

Brazil

In the case of Latin America, Brazil does not consider cryptocurrencies within its regulatory framework, although they must be declared in taxes. The holding of cryptoassets must be reported as other assets in the Goods and Rights Tab of the income tax return. This means that they are understood as financial assets. So it contributes as an asset and capital gains tax must be collected.

On the other hand, the lack of specific regulations does not prevent institutions such as the Real Estate Securities and Exchange Commission to approve Ether exchange-traded funds (ETH). Also for some years now in Brazil, applications have been created that allow the exchange of Tether (USDT) and the Brazilian real. So the progressive use of this type of cryptoassets is surely going to incentivize a bill to regulate them. Federal Deputy Expedito Neto recently filed a request in the Chamber of Deputies to regulate cryptocurrencies based on Bill 2303/2015. So discussions are expected to begin in the coming months.

Venezuela

In the case of Venezuela, there is a fairly advanced legal framework for cryptocurrencies and associated services. Different regulations have been established by law, such as SUNACRIP as the controlling entity of cryptocurrencies in the country and RISEC as the digital registry system. In addition, the regulation of the so-called Digital Mining Pool was established, where all miners that carry out their activities in the country must be registered, in order to use the technology of blockchain in the best interests of the nation. These regulations cover all cryptocurrencies such as Bitcoin, Dash, Etherium, Petros, and others but regulations with other types of cryptoassets are not yet raised.

In the article What do you need to know to understand cryptoassets in Venezuela? We explain the context and laws associated with these processes related to the technology of blockchain.

Asia

The regulation of cryptocurrencies in the Asian continent is very diverse, since in the case of China, the National Internet Finance Association clarifies that no services involving cryptocurrencies may be offered. This means that no bank or payment channel can offer cryptocurrency transactions in the country.

In the case of Korea, the Financial Services Commission is moving a step closer to monitoring digital businesses. There, regulations are being established for economic sectors to ensure the implementation of anti-money laundering measures. Each business sector together with the Ministry of Finance, the Fair Trade Commission and the National Tax Services, among others, will be responsible for monitoring these measures in addition to ensuring the registration of companies. exchange, wallets or others at the Korean Financial Intelligence Unit. This entails a number of requirements in which they must verify that the fund of the platforms has a real metal backing within a Korean bank.

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