Regulations on Cryptocurrency in the EU and Worldwide

The modern world is undergoing significant changes, and businesses must keep pace with this movement. The creation of new business models, fintech, and Web3 development create new challenges, and governments are introducing regulations for cryptocurrency. Crypto rules are necessary for clarity, transparency, and security for all parties involved, so Icon.Partners will lift the veil on global crypto regulation based on its own experience.

Overview of Cryptocurrency Regulation

Cryptocurrency regulations are now in place in many countries and are constantly changing and evolving. This is due to the rapid development of approaches and technologies and the desire of states to maintain a balance between the innovation and potential of digital assets and the need to ensure system stability and investor protection. 

Regulation of crypto differs by jurisdiction, as most countries do not treat it as currency but classify it as property, assets, or financial instruments. This means both specific crypto rules and general financial or tax laws apply.

A key focus remains combating money laundering and terrorist financing, which requires disclosure of company and ownership structures, verification of beneficiaries, and control of transactions.

The overall trend is to move crypto out of the “gray zone” through licensing, stricter regulation, and mandatory disclosures, making the industry safer as it rapidly grows.

European Crypto Regulation: Key Laws and Guidelines 

In recent years, European crypto regulation has been moving towards the introduction of common rules for member states with the aim of developing and protecting the crypto sphere. The main document by which Europe provides crypto regulation is MiCA (which will come into full effect in 2025). The document establishes rules for companies that issue tokens and provide crypto services, introduces requirements for documents and companies, transparency of structure, requirements for disclosure of information and risks, requirements for management, investor protection, and prevention of abuse and violations. Regulatory requirements depend on the type of crypto assets issued and the planned activities.

If a crypto asset functions as a financial instrument, regulation is based on the rights it grants, not its tokenized form.

Such assets fall under rules like MiFID II and the Prospectus Regulation, requiring stricter compliance to protect buyers and prevent risks.

In addition, AML5 obligations apply, meaning businesses must verify clients, monitor transactions, and report to regulators to combat money laundering and terrorist financing.

European regulation is multifaceted, and even indirect regulations will apply to crypto assets, depending on the specifics of the companies' activities. And we should not forget that countries implement these rules differently at the national level. Icon.Partners will help you navigate the regulatory landscape.

Crypto Exchange Regulations in Europe 

The adoption of MiCA has harmonized national laws on cryptocurrency across the EU. MiCA is a broad document that combines token issuance procedures, company requirements, consulting, order execution, storage, and crypto exchange regulations, among other things. 

Now, countries that have implemented MiCA requirements can issue CASP licenses introduced under MiCA to replace fragmented national VASP regime. CASP is a universal license and can combine various types of regulated activities. Everything will depend on the companies' applications. The requirements, in particular, the minimum authorized capital, list of documents, obligations, etc., will also depend on the types of activities required by the company. Licenses are issued by regulatory authorities in the jurisdiction of the applicant's business (Icon.Partners helps businesses with company incorporation and the licensing process in accordance with the requirements). Importantly, this license can be passported to other EU countries and used to legally conduct regulated activities. So, CASP is the key to your crypto business in the EU!

Global Cryptocurrency Regulation: Country-by-Country 

One of the difficulties in regulating cryptocurrencies is the lack of common unified rules, and countries regulate based on their own vision and general approaches.

The EU applies centralized regulation, while in the US rules depend on the nature of crypto assets. The UK emphasizes exchange oversight and stronger verification standards, whereas Switzerland and Singapore support innovation while maintaining financial stability.

China bans crypto transactions and tightly controls related technologies. In Latin America and Africa, regulation is still emerging, but rapid growth and new financial opportunities push countries toward adopting rules.

So, ask us which countries have regulated cryptocurrency, and we will answer: those that strive for innovation! It is important to note one common feature of regulation in different countries, which is undoubtedly a focus on business transparency, disclosure of ownership structure, key risks, protection of customers and investors, as well as the fight against money laundering and terrorist financing. Therefore, global trends are aimed at combining innovation and protecting the system from violations. 

Who Regulates Cryptocurrency?

As we can see, there is currently no single approach for all countries on how to regulate crypto assets. The answer to the question of who regulates cryptocurrency will depend directly on the specific country. 

In most countries, responsibility for crypto oversight lies with financial control or intelligence authorities, whose main task is to combat money laundering and terrorist financing. Licensed businesses must cooperate with these bodies, providing full transparency of users and transactions.

Regulators also check applicants for compliance with requirements such as order execution, storage, and exchange of cryptocurrencies. They analyze company structures, documents, and policies, and maintain strict supervision after licensing, ensuring multi-level control where security remains the top priority.

Compliance Requirements for Crypto Businesses 

To operate in crypto, businesses must obtain a license from the competent authority and comply with legal requirements. Preparation includes defining activities, studying legislation, establishing a company, raising capital, hiring staff, preparing documents, and ensuring cybersecurity and data protection. Icon.Partners helps obtain licenses across activities and jurisdictions.

During operations, companies must disclose documentation on their structure and risks, verify customers, monitor transactions, and report suspicious activity. A crypto license is not only a legal requirement but also a market advantage that strengthens reputation.

Risks of Operating Without Proper Licensing 

Operating in crypto without a license exposes companies to serious sanctions such as fines, account freezes, bans on activity, and in some jurisdictions even criminal liability for executives. These risks make unlicensed operations highly unstable and unpredictable.

Unlicensed businesses also face difficulties in building partnerships, as most counterparties verify compliance before starting cooperation. Without a license, companies are often excluded from serious collaborations.

If clients or partners suffer from hacks, manipulation, or fraud, this may result in lawsuits for damages and regulatory investigations. In such cases, liability can extend to both the company and its management.

Beyond legal and financial risks, reputation suffers significantly. Operating without proper authorization undermines trust, making it harder to attract new customers, investors, and long-term partners.

Future Trends in Crypto Regulation 

The crypto industry is growing rapidly, while regulation is still catching up. A key task is harmonizing rules across jurisdictions: the EU has already adopted MiCA, while the US and Asia are still developing comprehensive frameworks balancing innovation and control.

Interest in stablecoins and central bank digital currencies is rising, with stricter requirements for transparency, risk management, and data protection expected. At the same time, regulators are paying more attention to the environmental impact of mining and promoting energy-efficient solutions.

Overall, wider crypto adoption will inevitably bring tighter rules focused on security, transparency, and accountability.

FAQ – Cryptocurrency Regulations Explained

Which countries have regulated cryptocurrency?

Leading countries around the world that strive to support innovative businesses (in particular, EU countries, the US, the Eastern region, etc.).

What are the main crypto rules in the EU?

MiCA is the main document in the EU when it comes to crypto regulation. However, it should be noted that depending on the nature of your assets, other regulations may also apply.

How do crypto exchange regulations differ by country?

Developed countries like the US and EU strictly regulate crypto exchanges with high requirements and oversight. By contrast, in some states exchanges are banned or unregulated, which makes international operations difficult.

Who enforces cryptocurrency laws globally?

Law enforcement is carried out by financial regulators, central banks, monitoring bodies, and businesses that conduct controlled activities.

What are the penalties for non-compliance in crypto?

Law enforcement is handled by financial regulators, central banks, and monitoring bodies. Non-compliance may lead to fines, account freezes, license withdrawal, or even criminal liability.