Crypto regulations around the world in 2023

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The growing global adoption of crypto assets is no longer something that governments around the world can ignore.

Quick summary

• Bitcoin is considered legal tender in only one country: El Salvador.
• Among the six countries whose regulatory policies we took a closer look at, Singapore has the most progressive regulation.
• And of those six countries, only Australia, Canada and Singapore have a regulated and publicly traded Bitcoin ETF (exchange-traded fund).
• The number of crypto-related bills proposed in the US House of Representatives has increased dramatically since 2014.
• The governments or central banks of 18 countries have placed an explicit ban on cryptocurrencies.
• The governments or central banks of about 40% of the countries in the world consider cryptocurrencies to be a mostly legal investment.

Regulatory policy from the governments and central banks of certain countries, including El Salvador, the United Arab Emirates and Singapore has both favored and embraced Bitcoin and other cryptocurrencies:

• The government of El Salvador has deemed Bitcoin (BTC) legal tender.
• The government of the United Arab Emirates is in the process of setting up the world’s first authority that focuses solely on digital assets.
• And Singapore has crafted such a clear and progressive regulatory policy around crypto that some countries have used Singapore’s crypto laws as a template for their own.

However, a number of countries have implemented either explicit or implicit bans on crypto:

• The governments of China, Egypt and Bolivia have forbidden crypto trading, transactions and services within these countries.
• And a number of governments and central banks in Northern Africa, the Middle East and Central Asia have issued stern warnings to their citizens about investing in and transacting with crypto assets. The authorities in these countries have all but completely outlawed cryptocurrencies.

In this report, we take a close look at crypto regulations in six specific countries before offering an overview of what crypto regulation looks like in more than 160 countries around the world.

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Up close: Cryptocurrency regulation in 6 jurisdictions

We analyzed how the governments and central banks of Australia, the United States, the United Kingdom, Canada, Singapore and New Zealand are coming along regarding the regulation of crypto assets.

The regulatory state surrounding cryptocurrencies in these jurisdictions is constantly changing, but the following is an overview as of early 2023.

Singapore is out in front by developing and implementing a regulatory framework around crypto. Meanwhile, the United States and Canada are in similar phases of developing and implementing their crypto frameworks, as are Australia and the UK.

And New Zealand is lagging most when it comes to regulating crypto.

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Countries with a spot Bitcoin ETF

Of the six jurisdictions we’ve discussed, only three — Australia, Canada and Singapore — have a regulated and publicly-traded spot Bitcoin ETF.

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US crypto regulation

In the United States, a number of agencies are in the process of deciding who will oversee the different types of crypto assets.

The Securities and Exchange Commission (SEC), the Treasury’s Financial Crimes Enforcement Network (FinCEN), the Federal Reserve Board and the Commodity Futures Trading Commission (CFTC) have each issued different interpretations of how to classify and regulate crypto assets.

In 2015, the CFTC defined Bitcoin (BTC) and all other cryptocurrencies as commodities.

However, current SEC Chair Gary Gensler has said that only Bitcoin (BTC) should be considered a commodity and that he sees all other crypto assets as securities. Gensler’s views are not law, though.

Since 2014, both the House of Representatives and the Senate have increased the number of bills they’ve introduced related to crypto.

Government agencies around the world have eyes on the financial regulatory agencies of the United States as it attempts to develop a regulatory framework around the crypto asset class.

Matt Blumenfeld, Web3 and digital asset lead at PricewaterhouseCoopers US, believes this framework is sorely needed.

“Trust is broken in the space right now,” says Blumenfeld. “While regulation alone will not solve that, clarity across terminology and application of regulation, along with enhancements to risk management capabilities and procedures, is a good starting point.”

UK crypto regulation

The UK’s Cryptoassets Taskforce comprises the UK Financial Conduct Authority (FCA), HM Treasury and the Bank of England.

Since 2018, this task force has looked at the risks and benefits associated with the crypto asset class. Its public aims are to protect consumers, ensure regulatory standards in financial markets and guard against threats of financial stability.

A main rule set by the task force is that crypto companies must register with the FCA.

The British government has said that further regulation is coming down the pipeline and that the Bank of England is considering a central bank digital currency (CBDC) — a central bank-issued digital currency that isn’t pegged to a commodity — that it plans to call “Britcoin.”

UK Prime Minister Rishi Sunak has said that he’s a fan of crypto but that the industry around the asset class needs to be better regulated.

Laura Talvitie, senior manager of digital assets regulation at PricewaterhouseCoopers UK, seems to agree with Sunak.

“Cryptocurrencies may have been originally created to operate free from control,” says Talvite. “But the lack of a robust global regulatory framework is harmful for the sector, innovation and consumer protection.”

Canada crypto regulation

All crypto assets in Canada are regulated as securities.

The regulatory bodies Canadian Securities Administration (CSA) and the Investment Industry Regulatory Organization of Canada (IIROC) issue guidance on crypto assets and to crypto platforms in Canada. These two agencies also enforce the country’s anti-money laundering and counter-terrorist financing rules.

In 2021, Canada adopted a clear registration process for trading platforms that offer custodial services.

Ontario is Canada’s most heavily regulated province, with the Ontario Securities Commission (OSC) responsible for enforcing action on unregistered foreign crypto exchanges that attempt to operate in the region.

Australia crypto regulation

Australia has been updating its crypto regulations since 2018, when the Australian Transactions Reports and Analysis Centre (AUSTRAC), the country’s financial intelligence agency and its anti-money laundering (AML) and counter-terrorism financing regulator, required that all crypto platforms register and implement know your customer — better known as KYC — policies, report suspicious transactions and comply with AML legislation, according to Thompson Reuters.

The Australian government announced in 2021 that it would launch a CBDC as part of an overhaul of its payment system.

In 2022, Josh Frydenberg, the former treasurer of Australia, said that the government would look into further regulating crypto businesses that provide custodial services for its customers.

Sagan Rajbhandary, director of crypto assets for PricewaterhouseCoopers Australia, believes that Australian crypto firms wanting to win more of the crypto market share in Australia should take the responsibility of providing users with trustworthy services into their own hands.

“Firms waiting for regulatory clarity are likely to be left behind by those forging ahead and proactively providing stakeholders with assurance over their governance, risk management and transparency, using both traditional methods as well as real-time, on-chain evidence,” says Rajbhandary.

In 2023, Australia’s new prime minister, Anthony Albanese, and his new government announced that it planned to implement “token mapping,” which will “uncover the characteristics of all digital asset tokens available in Australia” and “include the type of crypto asset, their underlying code and any other defining technological features,” according to the Sydney Morning Herald.

The main purpose of token mapping is to determine which tokens are subject to existing financial services laws and which may require new legislation crafted specifically for them.

Singapore crypto regulation

The crypto ownership rate in Singapore was 19% as of November 2022.

This may be, in part, a result of the Singapore government’s pro-crypto stance.

Crypto is governed by the Money Authority of Singapore (MAS), which has developed crypto regulation that other countries and jurisdictions have emulated.

In January 2020, the MAS introduced the Payment Services Act (PSA), which is a regulatory structure that brings traditional and cryptocurrency exchanges under the same regulatory roof, according to Thompson Reuters. The legislation detailed money-laundering compliance standards for exchanges.

In May 2020, the MAS issued the Securities and Futures Act (FSA), which provides guidelines for determining which crypto tokens were capital market products.

And in February 2022, MAS issued guidelines to discourage cryptocurrency trading by the general public. In it, the agency stated that digital payment token (DPT) service providers should not market their products to the general public.

Singapore’s detailed cryptocurrency regulations are often used as a model for crypto regulation across the globe, partly because of how clearly the laws are worded.

New Zealand crypto regulation

New Zealand is a “technology-neutral jurisdiction,” meaning cryptocurrency in the country is subject to regulation and laws that weren’t designed for crypto assets, according to CoinTelegraph.

The Financial Markets Authority of New Zealand (FMA) classifies cryptocurrency as property for tax purposes, and citizens of New Zealand pay capital gains tax on profits derived from trading crypto assets.

In 2021, the FMA made it clear that cryptocurrencies are not considered legal tender.

New Zealand has initiated the process of creating a regulatory framework specific to cryptocurrency but hasn’t offered details of what this might look like.

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Crypto regulation around the world — by country

Country	Regulation ranking	Cryptocurrency regulation landscape
Afghanistan	1. Explicit ban	Cryptocurrency banned by the Taliban in 2021
Albania	4. Mostly legal investment	Cryptocurrencies legal and considered “virtual assets” by Albanian regulatory authorities Crypto is unregulated Bank of Albania advises caution while regulation is developed EU member subject to EU rules on crypto assets
Algeria	1. Explicit ban	Prohibits use of private cryptocurrencies
Andorra	4. Mostly legal investment	2022 Digital Assets Act authorizes a regulatory framework for cryptocurrencies and digital assets
Angola	3. Significant concerns or restrictions	Angolan government yet to introduce tax law around cryptocurrencies
Antigua and Barbuda	4. Mostly legal investment	Cryptocurrencies legal Initial Coin Offerings (ICO) — or tokens used to raise funds — permitted Member of Eastern Caribbean Central Bank pilot, which tests cryptocurrencies alongside national fiat Government yet to provide explicit tax law around cryptocurrencies
Arab Republic of Egypt	1. Explicit ban	Cryptocurrencies illegal Bitcoin declared haram — prohibited under Islamic law
Argentina	4. Mostly legal investment	Cryptocurrencies increasingly used but not classed as legal tender Regulates cryptocurrencies related to taxation and AML/CFT Large industry, as many people save in crypto assets
Australia	4. Mostly legal investment	Cryptocurrencies legal Earnings from trading cryptocurrencies subject to 19% to 45% capital gains taxes Digital currency exchanges must register with AUSTRAC and meet AML/CTF compliance and reporting obligations
Austria	4. Mostly legal investment	Cryptocurrencies legal Tighter regulations proposed mid-2018 Financial Market Authority warns that investing in cryptocurrencies is risky Earnings from trading cryptocurrencies subject to flat 27.5% capital gains tax EU member subject to EU rules on crypto assets
Azerbaijan	4. Mostly legal investment	Cryptocurrencies legal Central bank advises caution when using cryptocurrencies
The Bahamas	4. Mostly legal investment	Cryptocurrencies legal 2020 Digital Assets and Registered Exchange Bill (DARE) puts in place a regulatory framework for digital assets
Bahrain	2. Implicit ban	Banks and financial institutions prohibited from dealing in crypto assets or offering services to platforms that deal in crypto assets
Bangladesh	1. Explicit ban	Central Bank issued warnings In 2014 and 2017 prohibiting cryptocurrencies, punishable under money-laundering laws for up to 12 years in jail
Belarus	4. Mostly legal investment	Cryptocurrencies legal
Belgium	4. Mostly legal investment	Cryptocurrencies legal Warns investors about risk of crypto fraud and lack of regulatory oversight February 2022 rules require crypto service providers to comply with anti-money laundering legislation EU member subject to EU rules on crypto assets
Belize	3. Significant concerns or restrictions	Cryptocurrencies are legal Yet to offer a comprehensive regulatory framework around cryptocurrencies
Benin	3. Significant concerns or restrictions	Central Bank of West African States (BCEAO) — the central bank that serves Benin and 7 other W. African countries — declared it doesn’t support Bitcoin or other cryptocurrencies Crypto exchanges like Coinbase operate in Benin
Bhutan	4. Mostly legal investment	Cryptocurrencies legal in Bhutan, but no regulation surrounding the asset class
Bolivia	1. Explicit ban	Banned cryptocurrencies in 2014
Botswana	3. Significant concerns or restrictions	Passed a bill in 2022 to regulate cryptocurrency
Brazil	4. Mostly legal investment	Cryptocurrencies legal The Brazilian Securities and Exchange Commission (CVM) approves a number of crypto ETFs
Brunei Darussalam	3. Significant concerns or restrictions	Cryptocurrencies legal Crypto assets unregulated
Bulgaria	4. Mostly legal investment	Cryptocurrencies legal Cryptocurrencies treated as financial assets with 10% capital gains tax if sold EU member subject to EU rules on crypto assets
Burkina Faso	3. Significant concerns or restrictions	Served by the Central Bank of West African States, which is against Bitcoin and does not admit cryptocurrencies in BCEAO zone Crypto exchanges like Binance and Kraken operate in Burkina Faso
Burundi	2. Implicit ban	Central Bank bans all use of cryptocurrencies, yet many banks receive remittances in cryptocurrency
Cambodia	3. Significant concerns or restrictions	Cryptocurrencies are legal, but no regulatory framework for the asset class currently exists Central bank asks banks not to permit cryptocurrency transactions
Cameroon	1. Explicit ban	The Commission of Surveillance of Financial Markets of Central Africa (COSUMAF) says offer of services related to crypto assets is illegal
Canada	4. Mostly legal investment	Cryptocurrencies and digital exchanges legal Entities dealing in digital currencies regulated under AML/CTF laws Some crypto exchanges permitted to operate in Ontario
Central African Republic	4. Mostly legal investment	Designated Bitcoin legal tender in April 2022 Reversed its decision to make Bitcoin legal tender in March 2023
Chad	3. Significant concerns or restrictions	Part of the Economic and Monetary Community of Central Africa (CEMAC), which stipulates crypto assets are unregulated and offering services related to crypto assets is illegal
Chile	4. Mostly legal investment	Cryptocurrencies legal Government working to create a regulatory framework around crypto assets Government is working to create a CBDC
China	1. Explicit ban	February 2018 blocks access to all domestic and foreign cryptocurrency exchanges ICOs banned Does not recognize cryptocurrencies as legal tender People’s Bank of China (PBOC) banned cryptocurrency transactions in September 2021
Colombia	3. Significant concerns or restrictions	Neither outlawing nor accepting cryptocurrencies Prohibits banks from providing service to cryptocurrency companies
Congo	1. Explicit ban	Cryptocurrencies illegal
Costa Rica	4. Mostly legal investment	Cryptocurrencies legal Not legal tender and not supported by the central bank or state AML/CTF laws apply
Côte d'Ivoire	3. Significant concerns or restrictions	Served by the Central Bank of West African States, which is against Bitcoin and does not admit cryptocurrencies in the BCEAO zone Crypto exchanges like Paxful and Coindirect operate in Côte d'Ivoire
Croatia	4. Mostly legal investment	National Bank concluded that Bitcoin is not illegal Investors pay capital gains tax on profits made buying and selling cryptocurrency EU member subject to EU rules on crypto assets
Cuba	3. Significant concerns or restrictions	Central Bank issues regulations for digital asset service providers
Cyprus	4. Mostly legal investment	Cryptocurrencies legal, but Central Bank warns about risks of using them
Czech Republic	4. Mostly legal investment	Government has clamped down on illegal Bitcoin use while moving to regulate it as a currency, including taxing transactions Virtual currency exchanges must identify customers Cryptocurrency regarded as a commodity Gains on cryptocurrency sales taxed at 15% to 19% EU member subject to EU rules on crypto assets
Democratic Republic of the Congo	2. Implicit ban	N/A
Denmark	4. Mostly legal investment	Cryptocurrencies not classified as legal tender Bitcoin investments are tax-deductible, with profits subject to tax Financial Supervisory Authority monitors crypto industry EU member subject to EU rules on crypto assets
Dominican Republic	3. Significant concerns or restrictions	Cryptocurrencies legal Crypto exchanges like Coinbase operate in the Dominican Republic
Ecuador	3. Significant concerns or restrictions	Central Bank issued January 2018 statement that says Bitcoin (BTC) is not a form of payment authorized in the country Bank stated in January 2022 it intends to offer a broader regulatory framework around crypto assets
El Salvador	5. Legal tender	Bitcoin (BTC) legal tender as of September 2021 January 2023 Digital Securities Laws says BTC is the only crypto commodity and all other crypto assets are securities
Equatorial Guinea	3. Significant concerns or restrictions	N/A
Eritrea	3. Significant concerns or restrictions	N/A
Estonia	4. Mostly legal investment	More than 1,300 crypto exchanges in country In January 2021, the Ministry of Finance in Estonia proposed regulations for virtual currency service providers that required these providers have offices and management located in the country
Eswatini	3. Significant concerns or restrictions	Cryptocurrencies legal Regulatory framework for crypto assets undeveloped
Ethiopia	1. Explicit ban	Crypto businesses illegal as of June 2022
Finland	4. Mostly legal investment	In May 2019, Finland’s Financial Supervisory Authority (FSA) began regulating digital asset exchange providers, crypto wallets and issuers of virtual currency EU member and subject to EU rules surrounding crypto assets
France	4. Mostly legal investment	In April 2019, the French National Assembly implemented the Plan d’Action pour la Croissance et la Transformation de Enterprises (PACTE - Action Plan for Business Growth and Transformation), which established a framework for crypto asset service providers In June 2021, PACTE regulations were finalized and went into effect Capital gains taxes on crypto trades in France are 30% EU member and subject to EU rules surrounding crypto assets
Gabon	3. Significant concerns or restrictions	Gabon is a part of the Economic and Monetary Community of Central Africa (CEMAC), which has stipulated that crypto assets are unregulated and that offering services related to crypto assets is illegal
Georgia	2. Implicit ban	Cryptocurrency is legal Gains from crypto asset sales are taxed at a 15% rate
Germany	4. Mostly legal investment	The German government was one of the first governments to provide legal certainty to financial institutions, which allowed these institutions to hold crypto assets Crypto platforms must be licensed through the German Federal Financial Supervisory Authority (BaFin) EU member and subject to EU rules surrounding crypto assets
Ghana	3. Significant concerns or restrictions	Cryptocurrencies are legal The Bank of Ghana (BoG) — Ghana’s central bank — has issued several notices stating that cryptocurrency is not legal tender and that trading crypto is risky Ghana hasn’t yet developed a regulatory framework for crypto assets
Greece	4. Mostly legal investment	The Hellenic Capital Market Commission views cryptocurrency as assets and not currency All crypto service providers must be licensed by the Hellenic Capital Market Commission EU member and subject to EU rules surrounding crypto assets
Greenland (Den.)	4. Mostly legal investment	EU member and subject to EU rules surrounding crypto assets
Guatemala	3. Significant concerns or restrictions	The Guatemalan government has yet to legalize Bitcoin (BTC) or other crypto assets, though a semi-circular economy run on Bitcoin exists around Lake Atitlán
Guyana	2. Implicit ban	Cryptocurrency isn’t legal in Guyana, but some major exchanges like Paxful operate there
Haiti	3. Significant concerns or restrictions	Haiti has yet to create a regulatory framework for crypto assets. Hence, the legal status of cryptocurrency in Haiti is controversial
Honduras	3. Significant concerns or restrictions	The Honduran government has yet to create a regulatory framework for crypto assets
Hong Kong, SAR	3. Significant concerns or restrictions	The Hong Kong Securities and Futures Commission (SFC) has put into place a strict regulatory framework and licensing requirements for virtual asset service providers (VASPs) The SFC has also proposed a ban on crypto trading for retail investors, which entails that only professional investors with over HK$8 million in assets can trade crypto
Hungary	4. Mostly legal investment	The National Bank of Hungary — the Magyar Nemzeti Bank (MNB) — has stated publicly that cryptocurrencies are unregulated and that investing in them is risky EU member and subject to EU rules surrounding crypto assets
Iceland	4. Mostly legal investment	Cryptocurrencies are legal EU member and subject to EU rules surrounding crypto assets
India	3. Significant concerns or restrictions	In 2018, the Reserve Bank of India banned cryptocurrency trading and prohibited Indian banks from dealing with cryptocurrency exchanges In 2020, the Indian Supreme Court struck down the ban by the Reserve Bank of India In February 2022, the Advertising Standards Council of India announced new guidance for crypto-related advertising, stating that ads cannot include the words “currency,” “securities” or “custodian”
Indonesia	3. Significant concerns or restrictions	In 2019, the Indonesian Commodity Futures Trading Regulatory Agency (Bappebti) approved regulation that recognizes Bitcoin (BTC) and other cryptocurrencies as commodities Bank Indonesia — the country’s central bank — banned the use of cryptocurrencies as a payment tool
Iraq	1. Explicit ban	Anyone who deals in cryptocurrencies in Iraq will be charged with money laundering-related charges
Ireland	4. Mostly legal investment	Cryptocurrencies are legal The Central Bank of Ireland has warned investors of the risks associated with investing in crypto assets like Bitcoin (BTC) and Ether (ETH) EU member and subject to EU rules surrounding crypto assets
Islamic Republic of Iran	1. Explicit ban	The Iranian Central Bank has authorized licensed crypto miners to operate in the country, but all crypto must be sold to the central bank so that the bank can use it to fund imports In 2022, the Iranian government said that it is exploring allowing some businesses to use crypto for international payments
Israel	4. Mostly legal investment	The Israeli Securities Authority has classified all crypto assets as securities The Israeli Tax Authority defines cryptocurrency as an assets and levies a 25% tax on gains related to the sale of crypto assets
Italy	4. Mostly legal investment	In 2017, Italy grouped crypto exchanges with foreign currency exchanges under Legislative Act no. 90 Italy joined the European Blockchain Partnership (EBP) along with 22 other countries in April 2018 EU member and subject to EU rules around crypto assets
Jamaica	3. Significant concerns or restrictions	Cryptocurrency not explicitly prohibited or addressed in legislative framework Crypto assets most closely resemble securities, according to currency laws
Japan	4. Mostly legal investment	Among most progressive and detailed regulatory frameworks for crypto assets Cryptocurrency accepted as a legal form of payment Digital currency exchanges legal if registered with the Japanese Financial Services Agency
Jordan	2. Implicit ban	Central Bank warns public not to deal with or invest in cryptocurrencies Banks and financial institutions prohibited from dealing in cryptocurrencies
Kazakhstan	4. Mostly legal investment	Aims to become fintech and cryptocurrency hub President has called for global regulation of cryptocurrencies under UN oversight 6.17% of world’s crypto mined in Kazakhstan
Kenya	4. Mostly legal investment	Leading market for Bitcoin, though yet to provide a regulatory framework for crypto assets Central Bank considering a CBDC
Kuwait	2. Implicit ban	Central Bank prohibits the banking sector and companies from trading crypto assets
Kyrgyz Republic	4. Mostly legal investment	15% tax placed on mining operations in the Kyrgyz Republic in 2021
Lao People’s Democratic Republic	3. Significant concerns or restrictions	Authorized mining and trading of crypto assets in 2021
Latvia	4. Mostly legal investment	No regulatory framework for crypto assets 20% tax on capital gains made from crypto asset trading EU member subject to EU rules on crypto assets
Lebanon	2. Implicit ban	The Lebanese central bank has prohibited the use of cryptocurrencies by financial institutions but has not issued any guidance for private citizens
Lesotho	1. Explicit ban	One of a handful of African countries to fully ban crypto assets
Liberia	2. Implicit ban	The Liberian government recently mandated that local crypto start-ups cease operations
Libya	2. Implicit ban	The Central Bank of Libya has banned financial institutions from dealing in cryptocurrencies
Liechtenstein	4. Mostly legal investment	The Liechtenstein Blockchain Act went into effect in January 2021, enabling the legal tokenization of assets
Lithuania	4. Mostly legal investment	Having previously adopted a “wait and see” approach, the Lithuanian government introduced cryptocurrency guidelines in June 2018 These provide guidelines for ICOs and the tax treatment of cryptocurrencies as well as details of plans for amendments to AML/CTF rules EU member and subject to EU rules surrounding crypto assets
Luxembourg	4. Mostly legal investment	One of the first countries to officially declare cryptocurrencies to be currencies in 2014 and was the first country to grant a license to a Bitcoin exchange in April 2016 However, the Financial Sector Monitoring Commission has warned about the risks of investing in cryptocurrencies EU member and subject to EU rules surrounding crypto assets
Macau, SAR	3. Significant concerns or restrictions	Cryptocurrencies are legal The central bank prohibits ICOs and any involvement with them. This approach is similar to China's Citizens are strongly advised against investing in cryptocurrency
Malawi	3. Significant concerns or restrictions	Mining Bitcoin (BTC) with hydroelectric power has become popular in Malawi, but the country has yet to develop a regulatory framework around cryptocurrencies
Malaysia	4. Mostly legal investment	The Securities Commission Malaysia (SC) is the country’s primary regulatory agency for digital assets, and it classifies digital assets as securities The SC has only registered four Digital Asset Exchanges (DAXs) within the country The Inland Revenue Board of Malaysia (IRB) has yet to deem whether sales of crypto are subject to income tax
Mali	3. Significant concerns or restrictions	Served by the Central Bank of West African States, which is against Bitcoin and does not admit cryptocurrencies in BCEAO zone Crypto exchanges like Binance and Kraken operate in Mali
Malta	4. Mostly legal investment	Regulatory development is ongoing but friendly toward the industry Wants to align itself as the "Blockchain Island" Several established exchanges and businesses have moved from abroad to Malta due to the friendly regulatory environment
Mauritius	3. Significant concerns or restrictions	In June 2020, Mauritius released guidelines for the licensing of “security token trading,” which provided rules for digital asset custodians
Mexico	3. Significant concerns or restrictions	A cryptocurrency regulation bill was passed in March 2018 Cryptocurrencies are considered commodities Digital currency exchanges are under the oversight of the central bank To combat money laundering, from September 2019, relevant transactions exceeding a certain amount must be reported to the government In 2021, Mexican financial authorities said that cryptocurrencies are not legal tender and warned that financial institutions that use them are subject to sanctions
Moldova	2. Implicit ban	The National Bank of Moldova has warned Moldovan citizens about the risks associated with using cryptocurrencies
Mongolia	4. Mostly legal investment	Cryptocurrencies are legal The Mongolian central bank has advised against their use The Mongolian government has yet to craft a regulatory framework for crypto assets
Montenegro	4. Mostly legal investment	Cryptocurrencies are legal Montenegrin authorities have implemented AML/CFT laws around crypto assets
Morocco	1. Explicit ban	Moroccan authorities banned cryptocurrencies in 2017, though the public continues to use crypto through underground measures The Morocco Foreign Exchange Office has stated that it doesn’t support “hidden payment systems”
Myanmar	1. Explicit ban	In 2020, the Central Bank of Myanmar stated that anyone caught trading cryptocurrencies could be imprisoned or fined
Namibia	3. Significant concerns or restrictions	In 2022, Namibia issued the Fintech Innovations Regulatory Framework, which stated that while Bitcoin (BTC) isn’t recognized as cash, retailers can accept it as a form of payment
Nepal	1. Explicit ban	In 2021, Nepal Rastra Bank — the central bank or Nepal — declared all cryptocurrency transactions illegal
The Netherlands	4. Mostly legal investment	The Dutch Central National Bank de Nederlandsche N.V. (DNB) requires crypto firms to register with it VASPs in the Netherlands must also share the personal information of their clients with Dutch regulators EU member and subject to EU rules surrounding crypto assets
New Zealand	4. Mostly legal investment	The Financial Markets Authority of New Zealand (FMA) classifies cryptocurrency as property for tax purposes
Nicaragua	3. Significant concerns or restrictions	Nicaragua has not developed a regulatory framework for crypto assets, yet exchanges like Coinbase and Paxful operate in the country
Niger	3. Significant concerns or restrictions	Niger is served by the Central Bank of West African States (BCEAO), which has declared that it’s against Bitcoin and other virtual assets Crypto exchanges like Paxful and SpectroCoin operate in Niger
Nigeria	3. Significant concerns or restrictions	The Central Bank of Nigeria has barred financial institutions from dealing in crypto The Nigerian Securities and Exchange Commission (SEC) currently seeks to regulate all crypto assets as securities The Central Bank of Nigeria launched the eNaira — a CBDC — in 2021
Norway	4. Mostly legal investment	The Financial Supervisory Authority of Norway — Finanstilsynet — and the country’s Ministry of Finance established rules related to money laundering for VASPs and custodians In June 2021, Finanstilsynet also warned crypto investors of the volatile nature of crypto assets EU member and subject to EU rules surrounding crypto assets
Oman	2. Implicit ban	The Central Bank of Oman has prohibited financial institutions from dealing in cryptocurrencies and warned Omani citizens to be careful when dealing with cryptocurrencies
Pakistan	2. Implicit ban	The State Bank of Pakistan (SBP) — the central bank of Pakistan — has not imposed a ban on cryptocurrency but has urged Pakistani citizens to use caution when dealing with cryptocurrencies
Palau	2. Implicit ban	In 2019, the Republic of Palau Financial Institutions Commission (FIC) placed a moratorium on all financial activities involving cryptocurrencies until a proper regulatory framework is established
Panama	4. Mostly legal investment	In April 2022, lawmakers in Panama’s National Assembly approved a bill to regulate the use and commercialization of crypto assets that would make it legal for Panamanian citizens to pay their bills with crypto
Paraguay	3. Significant concerns or restrictions	The Banco Central de Paraguay (BCP) has no issued regulatory framework for crypto assets
Peru	4. Mostly legal investment	In December 2022, the Peruvian Congress introduced the “Crypto-asset Marketing Framework” law, which stipulates that everyone who deals with crypto assets share their information via a public register
The Philippines	4. Mostly legal investment	Bangko Sentral Pilipinas (BSP) — the central bank of the Philippines — requires that VASPs register with it The National Internal Revenue Code (NIRC) of the Philippines states that any financial gains made by selling crypto assets is taxable
Poland	4. Mostly legal investment	EU member and subject to EU rules surrounding crypto assets Poland has not regulated cryptos outside of EU requirements
Portugal	4. Mostly legal investment	In April 2020, the Portuguese government published the Digital Transition Action Plan, which established a flexible regulatory framework for technological development around crypto assets EU member and subject to EU rules surrounding crypto assets
Qatar	1. Explicit ban	The Central Bank of Qatar prohibits all banks from dealing with crypto assets and bans all cryptocurrency-related activities and crypto exchanges
R. B. de Venezuela	4. Mostly legal investment	The Superintendency of Crypto-assets and Related Activities of Venezuela (SUPCACVEN) regulates and controls crypto assets In September 2020, the Venezuelan government legalized Bitcoin (BTC) mining but stipulated that all mining activities must be a part of the “National Mining Pool.” The government distributes the rewards from this pool
Republic of Korea (South Korea)	4. Mostly legal investment	In 2021, the South Korean government passed the Financial Transaction Reports Act (FTRA), which requires VASPs to register and comply with AML regulations South Korea’s National Tax Service taxes crypto gains at a rate of 20%
Romania	4. Mostly legal investment	Cryptocurrency is legal EU member and subject to EU rules surrounding crypto assets
Russian Federation	3. Significant concerns or restrictions	In 2021, the Russian government recognized crypto assets as a payment means and an investment The Central Bank of Russia has staunchly opposed cryptocurrency adoption In February 2022, the Russian Ministry of Finance the “On Digital Currency” bill, which creates a way to manage the circulation of digital currencies
Rwanda	3. Significant concerns or restrictions	In 2023, the National Bank of Rwanda (NBR) prohibited the country’s financial service providers from engaging in crypto-related activities until a regulatory framework was established
Saint Kitts and Nevis	4. Mostly legal investment	Cryptocurrency is legal In 2020, the government of Saint Kitts and Nevis approved a crypto-friendly tax bill
Saint Lucia	4. Mostly legal investment	Cryptocurrency is legal The government of Saint Lucia has established rules to fight money laundering via crypto-related activity
Samoa	4. Mostly legal investment	Cryptocurrency is legal The government of Samoa has established rules to fight money laundering via crypto-related activity
Saudi Arabia	3. Significant concerns or restrictions	Saudi financial institutions are banned from dealing in cryptocurrencies The Saudi government has yet to introduce tax law related to crypto assets
Senegal	3. Significant concerns or restrictions	Served by the Central Bank of West African States, which is against Bitcoin and does not admit cryptocurrencies in BCEAO zone Crypto exchanges like Binance and Kraken operate in Senegal
Serbia	4. Mostly legal investment	Cryptocurrency is legal The Serbian government has established laws related to crypto around AML/CFT regulations
Seychelles	4. Mostly legal investment	Cryptocurrency is legal The legal regime for cryptocurrency in Seychelles is underdeveloped
Sierra Leone	1. Explicit ban	Sierra Leone is one of a handful of countries in Africa that has placed an outright ban on crypto
Singapore	4. Mostly legal investment	The Monetary Authority of Singapore (MAS) regulates crypto assets in the country In May 2020, the MAS published the Guide to Digital Token Offerings”, which detailed regulations around the classification of digital assets in capital markets In Feb. 2022, the MAS published the Guidelines to Discourage Cryptocurrency Trading by General Public, which stipulated that certain crypto service providers shouldn’t advertise to the general public
Slovak Republic (Slovakia)	4. Mostly legal investment	Cryptocurrency is legal The government of the Slovak Republic has established laws related to crypto around AML/CFT regulations
Slovenia	4. Mostly legal investment	Slovenia has issued guidelines stating that Bitcoin (BTC) can be classified as either a financial asset or a currency depending on how it’s used in a given situation and that it will be taxed and regulated accordingly on a case-by-case basis Crypto exchanges and brokers are classified as financial institutions for anti-money laundering purposes EU member and subject to EU rules surrounding crypto assets
South Africa	4. Mostly legal investment	The South African Reserve Bank, in conjunction with the Financial Sector Conduct Authority (FCSA) and the National Treasury, have shared plans to craft a comprehensive regulatory framework for crypto assets The South African Revenue Service taxes cryptocurrency gains at rates ranging from 18% to 40%, allowing for deduction of costs
South Sudan	3. Significant concerns or restrictions	Some crypto exchanges operate in South Sudan, but the country has yet to establish a regulatory framework for the asset class
Spain	4. Mostly legal investment	In 2021, the Spanish Securities and Exchange Commission — the Comision Nacional Del Mercado de Valores (CNMV) and the Bank of Spain issued a statement regarding the danger of investing in crypto assets The CNMV is the main regulatory agency for cryptocurrencies in Spain EU member and subject to EU rules surrounding crypto assets
Sri Lanka	4. Mostly legal investment	Cryptocurrency is legal The Sri Lankan government has established AML/CFT laws related to cryptocurrency
Sweden	4. Mostly legal investment	The Financial Supervisory Authority (FSA) and Sweden’s central bank — the Riksbanken — have deemed Bitcoin (BTC) and other crypto assets legal investments but not legal tender The Riksbanken is in the process of developing a CBDC — the e-krona EU member and subject to EU rules surrounding crypto assets
Switzerland	4. Mostly legal investment	The Swiss Financial Market Supervisory Authority (FINMA) has defined licensing requirements for cryptocurrency businesses Under Swiss tax law, cryptocurrencies are considered items that can be valued and traded and are, therefore, subject to taxation EU member and subject to EU rules surrounding crypto assets
Taiwan	4. Mostly legal investment	Taiwan’s Central Bank and Financial Supervisory Commission (FSC) have classified cryptocurrencies as commodities that have no legal protection The FSC requires that crypto exchanges report any transactions that exceed NT$500,000 (US$17,700) as a means to combat money laundering and terrorist financing
Tajikistan	2. Implicit ban	The National Bank of Tajikistan has stated that there is no legislation that regulates cryptocurrency operations in Tajikistan
Tanzania	3. Significant concerns or restrictions	In November 2019, the Bank of Tanzania — Tanzania’s central bank — issued a statement in which it clarified that cryptocurrencies are not legal tender and that Tanzanian citizens should be cautious of using virtual currencies
Thailand	4. Mostly legal investment	The Securities and Exchange Commission of Thailand regulates cryptocurrency under the Emergency Decree on Digital Asset Businesses. The decree requires companies that provide crypto services to acquire a license and monitor unfair trading practices The Thailand Central Bank has repeatedly stated that it does not support cryptocurrencies as payment methods for goods and services Gains on crypto asset trading are taxed at 35%
Togo	3. Significant concerns or restrictions	Togo is served by the Central Bank of West African States (BCEAO), which has declared that it’s against Bitcoin (BTC) and that cryptocurrencies are not admitted in the BCEAO zone Crypto exchanges like Paxful and Spectrocoin operate in Togo
Tunisia	1. Explicit ban	The Central Bank of Tunisia has stated in a press release that it does not recognize cryptocurrencies as a form of payment
Turkey	3. Significant concerns or restrictions	Purchasing only digital assets such as Bitcoin (BTC) is legal in Turkey In 2021, Turkey’s Central Bank stated that Turkish citizens couldn’t use cryptocurrencies to pay for goods and services In 2021, President Erdoğan stipulated that crypto exchanges could operate in Turkey, but only under AML/CTF regulations
Turkmenistan	2. Implicit ban	Neither the government of Turkmenistan nor the country’s central bank have issued any official statements or provided a regulatory framework for crypto assets Crypto exchanges like Paxful operate in the country
Uganda	3. Significant concerns or restrictions	Cryptocurrencies are not regulated by the government or central bank in Uganda In 2020, the Financial Intelligence Authority (FIA) published a letter stating that VASPs would have to abide by the country’s Anti-Money Laundering Act and report to the FIA
Ukraine	4. Mostly legal investment	In September 2021, the Ukrainian Parliament adopted a draft of “On Virtual Assets,” a law that introduces basic regulation for all virtual assets. The law stipulates that crypto assets are not to be used as legal tender After the Russian invasion of Ukraine, Ukraine received over US$100 million in crypto donations to support the country’s defense forces
United Arab Emirates	4. Mostly legal investment	The Dubai Financial Services Authority introduced a crypto regulatory framework in 2021 In 2022, the UAE announced it was rolling out a licensing program to attract crypto mining companies to the region
United Kingdom	4. Mostly legal investment	The UK Financial Conduct Authority (FCA), HM Treasury and the Bank of England comprise the country’s “Cryptoassets Taskforce” Crypto companies must register with the FCA unless they’ve applied for an e-money license There is no UK regulatory regime that focuses on crypto miner activity
United States of America	4. Mostly legal investment	Securities and Exchange Commission (SEC) Chairman Gary Gensler has stated that he feels Bitcoin (BTC) is a commodity and that all other crypto assets are securities, but his views are not currently law The SEC, the Treasury’s FinCEN, the Federal Reserve Board, and the Commodity Futures Trading Commission (CFTC) have all issued different interpretations and guidance concerning crypto The United States is home to the largest number of crypto investors, exchanges, crypto mining firms and investment funds
Uruguay	4. Mostly legal investment	There is no official legislation on cryptocurrencies The Uruguayan Chamber of FinTech has formed a cryptocurrency committee to discuss what future regulation might look like The Central Bank of Uruguay has stated that crypto assets are not legal tender
Uzbekistan	4. Mostly legal investment	Cryptocurrencies are legal A presidential decree on July 3, 2018, enacted mandates to encourage the development of blockchain and cryptocurrency industries in the nation Another decree on September 2, 2018, established a state blockchain development fund, legalized mining and made trading legal and tax-free
Vietnam	4. Mostly legal investment	Vietnam was ranked the number 1 country in Chainanalysis’ 2022 Global Crypto Adoption Index While cryptocurrencies are legal investments in Vietnam, the State Bank of Vietnam (SBV) has stated that cryptocurrencies are not to be used as legal tender
Zambia	3. Significant concerns or restrictions	In February 2018, the Zambia Securities and Exchange Commission issued a notice on cryptocurrencies that stated that Zambian citizens should invest in crypto assets with caution, as the assets are largely unregulated
Zimbabwe	2. Implicit ban	The government of Zimbabwe has ordered all banks to stop processing transactions related to crypto or crypto companies

Regulation ranking methodology

The countries in this report have been classified into one of the following five categories:

1. Explicit ban. Governments have deemed cryptocurrencies illegal in these countries.
2. Implicit ban. Governments and central banks have issued stern warnings about investing in crypto and in using the assets in transactions. These countries haven’t outright banned crypto, but they’ve stated they do not support crypto assets and that investing in them is highly risky.
3. Significant concerns or restrictions. Crypto assets are legal in these countries, but regulatory agencies have expressed concerns about the proliferation of these assets or have yet to issue a proper framework for them.
4. Mostly legal investment. It’s legal to invest in most crypto assets in these countries. Crypto investments are mostly deemed either commodities, securities or property in these countries.
5. Legal tender. Bitcoin (BTC) is a legal tender in these countries.