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How Crypto regulations differ in different countries? 17 states of USA passed laws and resolutions regulating cryptocurrencies. The US Securities and Exchange Commission (SEC) is considering what steps to take. On July 8, 2021, Senator Elizabeth Warren, who sits on the Senate Banking Committee, wrote to the SEC Chairman asking him to provide answers on cryptocurrency regulation by July 28, 2021, due to increased use of the exchange of cryptocurrencies and the danger this poses for consumers.
On February 17, 2022, the Justice Department named Eun Young Choi as the first director of a national cryptocurrency enforcement team to help identify and address the misuse of cryptocurrencies and other digital assets. In the UK, all cryptocurrency companies, such as exchanges, advisors and professionals that have a presence, market products or provide services in the UK market must register with the Financial Conduct Authority.
Additionally, on June 27, 2021, the financial watchdog asked Binance, the world's largest cryptocurrency exchange, to cease all regulated activities in the UK. Some commentators believe this is a sign of what is to come in terms of strict regulation of the cryptocurrency market in the UK.
India does not prohibit or allow investments in the cryptocurrency market. In 2020, the Supreme Court of India had specifically lifted the cryptocurrency ban, enforced by the Reserve Bank of India. Since then, the investment in cryptocurrency is considered legitimate although ambiguities still exist on the issues related to the size and payment of the income tax accrued at that time and also on its regulatory regime.
But the Indian parliament is expected to pass a specific law soon to ban or regulate the cryptocurrency market in India.
Crypto regulation in major countries
China banned financial institutions and payment companies from providing services related to cryptocurrency transactions.
This has led to a sharp drop in the price of the largest proof of work cryptocurrencies. For example, Bitcoin is down 31%, Ethereum is down 44%, Binance Coin is down 32%, and Dogecoin is down 30%. Proof of work mining was the next target, with regulators in popular mining regions citing the use of electricity generated from highly polluting sources like coal to create Bitcoin and Ethereum.
South Korea implemented new legislation to strengthen the supervision of digital assets. This regulation requires all digital asset managers, suppliers and exchanges to be registered with the Korea Financial Intelligence Unit in order to operate in South Korea.
Registration with this unit requires all exchanges to be certified by the Security Management System of information and ensuring that all clients have real name bank accounts, that the managing director and members of the exchange board have not been convicted of any criminal offense and that the exchange has sufficient levels of deposit insurance to cover any losses arising from hacks.
South Africa, which has seen a large amount of cryptocurrency-related scams, is said to be putting in place a regulatory timeline, which will produce a regulatory framework. The biggest scam occurred in April 2021, when the two founders of an African-based cryptocurrency exchange called Africrypt, Raees Cajee and Ameer Cajee, disappeared with $3.8 billion worth of Bitcoin. Also, Mirror Trading International disappeared with $170 million worth of cryptocurrency in January 2021.
