🔥Overview of International Cryptocurrency Regulations: A Comparative Report 🔥
Cryptocurrency continues to reshape the global financial landscape, prompting governments worldwide to develop regulatory frameworks that balance innovation with investor protection. This report highlights the current regulatory environments in three key jurisdictions: the United States, the European Union, and Singapore.
1. United States
The U.S. adopts a multi-agency regulatory approach involving the Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC), and the Internal Revenue Service (IRS). Cryptocurrencies are often classified as securities, subjecting Initial Coin Offerings (ICOs) to SEC oversight. Tax obligations require investors to report capital gains, while Anti-Money Laundering (AML) and Know Your Customer (KYC) regulations apply to exchanges. Additionally, the Federal Reserve is actively exploring Central Bank Digital Currency (CBDC) development.
2. European Union
The European Union has introduced the Markets in Crypto Assets (MiCA) regulation, effective since 2024, establishing the first comprehensive legal framework for crypto asset providers within its member states. MiCA classifies crypto assets, enforces transparency, and mandates strict compliance with AML/KYC standards, promoting consumer protection and market integrity across the bloc.
3. Singapore
Singapore’s Monetary Authority (MAS) regulates crypto activities under the Payment Services Act (PSA). Crypto exchanges and wallet providers must register with MAS and adhere to AML and Counter Financing of Terrorism (CFT) requirements. Singapore remains a crypto-friendly hub, fostering innovation while maintaining robust regulatory oversight, especially concerning stablecoins and digital payment tokens.