Global Crypto Regulation Shifts Towards Licensing and Anti-Money-Laundering Controls

The global landscape of cryptocurrency regulation is shifting towards licensing and anti-money-laundering controls. In most countries, owning cryptocurrency is allowed, but exchanges, custodians, issuers, miners, advertisers, and payment providers may face varying rules. For instance, China bans most crypto trading and mining, while Japan licenses exchanges under mature payment laws.

The European Union's Markets in Crypto-Assets Regulation (MiCA) creates an EU-wide framework for crypto asset service providers and issuers, with specific rules for asset-referenced tokens and e-money tokens. In contrast, the United States has a fragmented regulatory map, with the Securities and Exchange Commission focusing on securities laws, the Commodity Futures Trading Commission treating certain crypto assets as commodities in specific contexts, and FinCEN applying money services business rules.

Crypto ownership is legal in most countries, but service providers need registration or licensing. The UK regulates crypto mainly through anti-money-laundering registration, financial promotions rules, and ongoing work on a broader digital asset regime. In Asia-Pacific, Japan allows crypto and has one of the more developed licensing systems, while China is the clearest major-market ban.