Cryptocurrency regulations is an essential topic in many legislations. However, the laws vary largely from country to country. In some regions, blockchain and cryptocurrency development are encouraged while other legislations are issuing strict rules related to cryptocurrencies and ICOs in particular.
Regulation in the USA
The USA is showing keen interest in the blockchain technology, and US regulators are working on implementing regulation rules of cryptocurrency and ICOs. That said, the US government is considering ICOs a risky security investment. Therefore a project must comply with all SEC requirements to legally conduct an ICO and even receive funding from US citizens.
Regulation in the European Union
Many EU countries are yet to introduce cryptocurrency and ICO regulations. However, regulators are currently working on a set of rules. Therefore the market is likely to change in the near future. In general, the European Union is showing interest in cryptocurrencies, and there is even an incentive to legalize Bitcoin.
Much like the European Union, the United Kingdom is still to implement cryptocurrency and ICO regulation. Therefore the legislation remains a grey zone for blockchain projects. However, the UK government has warned its citizens that ICO investments are highly risky which may indicate that the United Kingdom will regulate ICOs similar to the USA.
South Korea is a large Bitcoin market that hosts several top cryptocurrency exchanges. Despite that, cryptocurrency regulations in South Korea are extremely strict with new rules continually being implemented. ICOs are outlawed in the country while exchanges must register with South Korea’s Financial Services Commission.
China is the world’s hub for cryptocurrency mining and also one of the least friendly legislations when it comes to cryptocurrency. ICOs and Crypto Exchanges are outlawed in the country, new and even more strict rules are constantly being implemented by the regulators.