A Rundown of New Crypto Rules and Regs Around the World

Where is more regulation coming down the pike?
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Francis Scialabba

· 3 min read

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There’s chatter in cryptocurrency circles that winter may be coming. Will prophecies of a prolonged bear market turn out to be true? Who knows. But one trend appears certain: More regulation is coming down the pike.

A bloc-by-block breakdown

🇺🇸 Last month, the Treasury Department proposed requiring hodlers to disclose any crypto transaction worth ≥$10,000 to the IRS. The SEC, meanwhile, has slow-rolled a ruling on WisdomTree’s proposed bitcoin ETF. The fund would track bitcoin and make it easier for institutional investors like mutual funds to directly invest in the cryptocurrency.

  • Maybe related? A bipartisan cohort of lawmakers has indicated they oppose the greenlighting of crypto ETFs.
  • Finally, yesterday, SEC Chairman Jay Clayton and former Under Secretary of the Treasury Brent McIntosh wrote in the WSJ that crypto needs regulation using existing rules.

🇮🇳 New Delhi has walked back proposals for a wholesale ban of cryptocurrencies. Last week, the Reserve Bank of India (RBI) circulated a memo saying banking services should not be denied to crypto traders. That measure, first proposed by the IRB in 2018, was struck down by India’s Supreme Court in March 2020.

  • While this is good news for India’s crypto community, it doesn’t mean the country will backslide into full-on laissez faire policy for digital assets. The IRB has indicated it still has major concerns with cryptocurrency.

🇨🇳 As Beijing cracks down on bitcoin mining, the country’s biggest players are moving their farms elsewhere and “fire-selling” rigs, one US exec told Wired.

🇪🇺 Nothing new to report from Brussels, which published new rules for crypto assets in January. But last week, Sweden’s finance minister said crypto exchange regulation is a work in progress “at the international level.”

  • What is new from the EU = a European Investment Bank report that the Continent is falling behind the US and China in blockchain and AI investment.
  • The EU is focused on boosting its technological prowess on the international stage. This economic and geopolitical framing could temper calls for a stiffer strong-arm of cryptocurrencies.

🇸🇻 On Sunday, El Salvador’s President Nayib Bukele propose making bitcoin legal tender. The measure is likely to pass in Congress, where his party has a supermajority.

Bottom line: As crypto gains mainstream adoption globally, most countries are headed for a middle ground between laissez faire and blanket ban.—RD

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