Crypto Regulations By Country.pdf

North America
Canada
Canada has approved bitcoin exchange-traded funds (ETFs). Canadian Securities
Administrators (CSA) and the Investment Industry Regulatory Organization of Canada
(IIROC) have issued guidance requiring crypto trading platforms and dealers in Canada to
register with the local provincial regulators. In 2021 Canada adopted a clear registration
regime for trading platforms that offer custodial services to Canadian clients. Several firms
have registered under the new rules. Canada has also provided guidance on advertising
and marketing of cryptos. The Ontario Securities Commission has actively enforced the
regulations against several unregistered foreign trading platforms.
The Canada Revenue Authority (CRA) generally treats cryptocurrency like a commodity for
purposes of the Income Tax Act.
Mexico
Cryptocurrencies are prohibited in Mexico. The government and the financial authority,
CNBV, enacted a set of fintech laws in March 2018 that developed a regulatory framework
and “sandbox” for virtual assets. The country has, however, taken a conservative approach to
virtual assets with their relationship to existing financial system.
In June 2021 financial authorities said crypto-assets are not legal tender and not considered
currencies under existing laws, warning that financial institutions that operate with them
are subject to sanctions.
Despite the restrictions, some of population has embraced cryptocurrencies. Mexico’s largest
crypto exchange, Bitsos, has more than one million users on its platform.
Mexico’s Federal AML Law was amended in March 2018 to include transactions with
“virtual assets” and considers them vulnerable activities under Financial Action Task Force
(FATF) purposes.
The tax framework for cryptocurrencies is expected to change as there is no official position.
United States
The regulatory framework for cryptocurrencies is evolving despite overlap and differences in
viewpoints between agencies. Although the Securities and Exchange Commission is widely
seen as the most powerful regulator, Treasury’s FinCEN, the Federal Reserve Board and the
Commodity Futures Trading Commission have issued their own differing interpretations and
guidance. An Executive Order from the White House directs the agencies to coordinate their
regulatory efforts.
The SEC often views many cryptos as securities, the CFTC calls bitcoin a commodity, and
Treasury calls it a currency. To iron out the regulatory differences, confusion about
definitions, and jurisdiction, the President’s Working Group and the Financial Stability
Oversight Council will play important roles in the development of a future regulatory
framework.
The Internal Revenue Service defines cryptocurrencies as “a digital representation of value that
functions as a medium of exchange, a unit of account,