Sergey Savastiouk's Avatar
published in Blogs
Feb 20, 2021

A Complete Guide to Global Cryptocurrency Regulations

Cryptocurrency is a global phenomenon, which also makes it a unique proposition for governments. Because crypto lacks backing by a central authority, different countries have different regulatory standards. These efforts, driven by their variability, have the potential to send crypto prices dramatically soaring or tumbling.

Here’s a snapshot of the current regulatory climate around the world.
 

Global Bodies

Global regulators view bitcoin as legal tender, depending on the country. There is no global regulatory body for cryptocurrency yet, but the recent G-20 summit saw leaders of central banks from the world’s 20 biggest economies discuss the topic, with plans for action items by this summer. The Financial Stability Board, a watchdog group who regulates the G-20 economies, said they remained open to digital currencies. “The FSB's initial assessment is that crypto-assets do not pose risks to global financial stability at this time," said board Chairman Mark Carney, pointing out that, even at their peak value at the end of 2017, “global market value [of cryptocurrencies] was less than one percent of global GDP.” While some figures have expressed concern for cryptocurrency’s ability to aid money laundering and covertly finance terrorist groups, it has not rejected it outright – rather, there have been calls for increased protections for investors.


 

Japan

Japan is the world’s biggest market for bitcoin, proclaiming it to be legal tender in April 2017. Exchanges are legal once registered with the Japanese Financial Services Agency, and half of bitcoin’s daily volume is traded in Japanese currency. They became the first country in the world to create and implement a system to regulate trading after a series of serious hacks. The Japanese continue to oversee trading where they feel appropriate, punishing or shutting down multiple exchanges after a $530 million theft from Coincheck and issuing warnings to prominent exchange Binance for operating in Japan without a license.
 

United States

Bitcoin is not considered legal tender in America. Treasury Secretary Steven Mnuchin has expressed reserve about crypto’s ability to assist criminals, but his concerns have done little to dampen enthusiasm among investors, who trade on exchanges that are legal depending on the state and handle the second largest volume of bitcoin worldwide, at 26%. Regulators are currently grappling with how to classify bitcoin and other cryptocurrencies. The SEC believes them to be securities that should be regulated as such, cracking down particularly hard on initial coin offerings. The CFTC classifies crypto as a commodity, while the IRS says it is not actually a currency.

 


 

European Union

While no member state can introduce its own cryptocurrency, exchanges are legal by country. Money laundering and other criminal activities remain a concern among government officials, and regulations differ from nation-to-nation. Regulators have been cracking down, with French regulator Autorite des Marches Financiers banning 15 exchanges in March. French officials have also revealed a joint plan with Germany to regulate cryptocurrency markets.
 

United Kingdom

The UK does not recognize Bitcoin as legal tender, but exchanges are legal if registered with the Financial Conduct Authority, while holds them to the stringent standards of traditional financial institutions. "The time has come to hold the crypto-asset ecosystem to the same standards as the rest of the financial system," said Mark Carney, who also governs the Bank of England. "Being part of the financial system brings enormous privileges, but with them great responsibilities."

South Korea

South Korea does not consider bitcoin to be legal tender, though exchanges are legal if registered with the Financial Services Commission. Trading with anonymous bank accounts, however, is prohibited. The country is a global hub for trading, but the regulatory climate is more mixed. The Korean government floated a shutdown of crypto exchanges in 2017 before backing off while reaffirming their commitment to acting against illegal and unfair trading behavior. More comprehensive regulatory offerings have been discussed but not finalized.
 

China

Bitcoin is not recognized as legal tender in China, and trading is illegal. The government banned ICOs in 2017 while shutting down all crypto exchanges in the country. Some banking officials have recommended banning trading all virtual currencies, as well as punishing the people and businesses that provide trading-related services. While there is no concrete action yet, crypto enthusiasts in the country have shifted their focus to mining and other activities – at least until the government steps in.
 

Singapore

Singapore may not view bitcoin as legal tender, but trading is legal, mostly regulated by the Monetary Authority of Singapore. The country is trying to position itself as crypto-friendly while also urging investors “to act with extreme caution and understand the significant risks they take on if they choose to invest in cryptocurrencies."

Switzerland

Switzerland is viewed as very crypto-friendly. Bitcoin is considered legal tender, and exchanges are legal if registered with the Swiss Financial Market Supervisory Authority. Zug, the town south of Zurich in what is called the country’s “Crypto Valley”, is home to the Ethereum Foundation and other crypto businesses. Regulators have issued strict guidelines for ICOs but remain open to them – four of the ten biggest proposed ICOs in the world have been in Switzerland.


 

Learn More about Cryptocurrencies – and How to Invest – on Tickeron.com

Before investing in cryptocurrencies, it’s important to know the rules of the road and how the crypto world works. Taking the time to learn will help you avoid making a mistake or losing money because of insufficient knowledge.  Tickeron’s Academy, on tickeron.com, is the place to go to learn more about the cryptocurrency and blockchain revolutions, and even how you can use algorithms and AI to invest in cryptocurrencies. Humans make mistakes because of emotions – Artificial Intelligence takes emotion out of the equation.

Tickeron has created Artificial Intelligence capable of finding trade patterns and generating investment ideas for the cryptocurrency markets. Ready to trade? Start a free trial today on tickeron.com.

Related Tickers: BTC.X
John Jacques's Avatar
published in Blogs
May 16, 2022
A.I. Stock Market Predictions: Head & Shoulders

A.I. Stock Market Predictions: Head & Shoulders

Statistics for the Head-and-Shoulders Bottom Pattern The days where only hedge funds used algorithms to trade stocks are officially over. Now retail investors can use Artificial Intelligence (A.I.  Here’s an example of the algorithm in action: Late last year, Tickeron’s A.I.
Edward Flores's Avatar
published in Blogs
Apr 29, 2022
How to Become the Millionaire Next Door

How to Become the Millionaire Next Door

The Golden Gate Bridge is always a fixture of these walks too, one of man's most beautiful creations.  As we were walking, at one point she turned to me and said, "Man, I'll never have a million dollars."" My girlfriend is 27 years old and works as a graphic designer, making about $75,000 a year.
Sergey Savastiouk's Avatar
published in Blogs
May 16, 2022
When Is the Next Recession Coming?

When Is the Next Recession Coming?

However, we also know that economists predicted 22 recessions out of 11 that took place since 1945. Are there real recession signs we should watch for?Indeed, the answer is yes, and here are a few very important ones: The first one is almost obvious and known to everyone – it is the Fed.
Sergey Savastiouk's Avatar
published in Blogs
Mar 14, 2023
How to Start Trading Penny Stocks

How to Start Trading Penny Stocks

Penny stocks have long been marginalized within the professional investment community, oftentimes being painted with a broad brush of simply being “too risky.” Leonardo DiCaprio’s depiction of the penny stock peddling conman, Jordan Belfort, in the Wolf of Wall Street certainly didn’t help.Here are four reasons to start trading them now. Reason #1: Let’s State the Obvious -- Penny Stocks are Cheap A single share of Apple Inc. costs over $350.
Dmitry Perepelkin's Avatar
published in Blogs
Mar 14, 2023
5 Habits that Lead to Successful Investing

5 Habits that Lead to Successful Investing

To consistently make money in this industry, you need emotional fortitude, an analytical mind, and a willingness to self-reflect. Despite trading and investing being two different activities, these principles can be applied to both.Conversely, investors with good habits often become great traders.  Rather than full sentences for titles, we’ve labeled each of our top-five investing habits using a single word principle.
Allana's Avatar
published in Blogs
Mar 23, 2023
What’s the Difference Between Data Analytics and Machine Learning?

What’s the Difference Between Data Analytics and Machine Learning?

Artificial intelligence (AI) technology is developing rapidly.Data mining can deliver raw numbers, but it does not necessarily provide actionable insights. Structure is necessary to taking abstract information and extracting commonalities, like averages, ratios, and percentages.
Sergey Savastiouk's Avatar
published in Blogs
Mar 13, 2023
4 Tips for Fast, Effective Stock Analysis

4 Tips for Fast, Effective Stock Analysis

With just a few clicks, an investor can search for individual stocks, categories of stocks, sectors, or investment themes, and then he or she can conduct a full range of technical and fundamental analysis within seconds.All powered by Artificial Intelligence.  Below, we give you 5 tips for fast, effective stock analysis using Tickeron’s Screener.
Sergey Savastiouk's Avatar
published in Blogs
Mar 20, 2023
5 Golden Principles in Investing

5 Golden Principles in Investing

You have enough faith in that stock, based on research, that the return will equal or exceed the investment.  Do unto others.The principles outlined here will ensure that happens.  Principle #1: Diversification Investors can’t be one-dimensional when constructing a portfolio.
John Jacques's Avatar
published in Blogs
Mar 24, 2023
If Hedge Funds are Using AI to Invest, Why Shouldn’t You?

If Hedge Funds are Using AI to Invest, Why Shouldn’t You?

Some of the world’s biggest financial institutions have devoted multi-million dollar budgets to developing algorithms that can find patterns in the market, identify trends, and perform automated trading designed to take advantage of even the smallest price movements. The AI revolution is so big that as it stands today, the world’s five biggest hedge funds all use systems-based approaches to trade financial markets.Indeed, quantitative trading hedge funds now manage $918 billion (according to HFR), which amounts to 30% of the $3 trillion hedge fund industry – a percentage continues to grow with each year that passes.
Sergey Savastiouk's Avatar
published in Blogs
Mar 15, 2023
The five most important Lessons Learned After 10,000 hours of Trading

The five most important Lessons Learned After 10,000 hours of Trading

Ten thousand hours of active trading, broken down into forty-hour weeks, amounts to almost five years. Having surpassed that milestone myself, I now understand why it's significant for any trader's journey. The early years taught me valuable lessons that have shaped my approach to trading. It's a misconception that great traders are born with innate talent. The truth is that it takes years of...