Cryptocurrency Regulation Tracker – Atlantic Council

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Among the 25 countries we surveyed, cryptocurrency is legal in 13, partially banned in 9, and generally banned in 3. In ten G20 countries, representing over 50% of world GDP, cryptocurrencies are fully legal. Regulation is under consideration in all G20 countries.

Tax policy and licensing requirements are at the forefront of legislative development, In many of the countries analyzed, tax policy and licensing requirements were implemented first, followed by other regulations and requirements. In others, taxation remains the only form of regulation of cryptoassets.

Among the countries reviewed, there is a generally weak relationship between cryptocurrency adoption rates and regulatory restrictivenessSix of the top ten countries in cryptocurrency adoption have partial or blanket bans in place.

Regulation of cryptoassets is changing rapidly. Of the countries reviewed, 88% are in the process of making significant changes to their regulatory frameworkoften through new, tailored legislation addressing cryptocurrency markets.

Experimentation is widespread. Countries use regulatory sandboxes to test and collaborate with the private sector. Japan created an association of cryptocurrency exchanges and issuers in an effort to promote self-regulation. Canada, Italy, Mexico and Saudi Arabia have developed regulatory sandboxes.

Countries with blanket bans – China, Saudi Arabia and Pakistan – have high levels of adoption across centralized, peer-to-peer and decentralized platforms. This can be explained by enforcement delay, enforcement capacity or political will.

Stablecoins, which are usually backed by a fiat currency, constitutes the next frontier for crypto regulation, In the EU, the US, the UK and Thailand, stablecoin regulation is being considered. In Mexico, financial institutions cannot issue stablecoins.

Consumer protection rules are lagging behind. Only 44% of countries have reviewed the current rules to protect consumers. Such regulations include advertising regulations, cyber security requirements for service providers, investor accreditation and others. These rules can successfully prevent fraud.

Of the 25 countries analysed, over 90% have active central bank digital currency (CBDC) projects in addition to cryptocurrency regulations. This indicates that countries are adapting and updating cryptocurrency regulations at the same time as they explore CBDCs.

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