Cryptocurrency regulation in 2024: new laws and their impact on the market

As analysts note, regulation has become one of the main trends in the crypto market, and it will continue in 2025. Some experts even call 2025 the "year of cryptocurrency regulation."

EU — Markets in Crypto-Assets (MiCA)

Markets in Crypto-Assets (MiCA) is the main bill regulating cryptocurrencies within the European Union, especially stablecoins. Following the bill's release, issuers of digital assets are forced to obtain specialized licenses to provide services to EU residents.

This has led to centralized exchanges blocking access to services with stablecoins that have not been licensed under MiCA to EU citizens. For example, after MiCA came into effect, one of the largest crypto exchanges, OKX, suspended trading and some transactions with the USDT stablecoin for EU residents.

Other countries

Turkey

In June 2024, the Turkish Parliament adopted new amendments to the Capital Markets Law that introduced a licensing system for cryptocurrency exchanges and other service providers related to digital assets. According to the new amendments, foreign companies can provide services to clients from Turkey provided they register a legal entity in the country and with the Capital Markets Board (SPK).

Canada

In Canada, new regulations came into effect in 2024, requiring cryptocurrency companies to meet high standards for anti-money laundering and legal investor protection. In addition, Canadian regulators require cryptocurrency companies to maintain accountability and transparency in their business.

India

In 2024, India also joined the ranks of crypto-regulating countries with a new law to regulate the cryptocurrency market within the country. This law establishes regulatory rules for cryptocurrency exchanges and introduces measures to prevent financial crimes, including money laundering and terrorist financing. In addition, the new law defines the rules for issuing CBDC (Central Bank Digital Currency) for the Central Bank of India (RBI).

Taiwan

In Taiwan, the Financial Supervisory Commission (FSC) introduced a new regime for Virtual Asset Service Providers (VASP) at the beginning of October 2024. This regime requires all crypto providers to register their businesses by obtaining the relevant FSC license. In addition, foreign companies that have not obtained this license cannot operate in Taiwan.

Hong Kong

Considering the increasing number of fraud cases, the number of which in 2023 alone exceeded 3,400 for more than $4.3 billion, the Hong Kong government decided to tighten the regulation of cryptocurrencies. In particular, a new bill has been introduced to develop a regulatory framework for issuers of stablecoins backed by fiat currency.

In addition, the Securities and Futures Commission (SFC) of Hong Kong introduced mandatory licensing for crypto service providers in 2024, requiring them to strictly follow anti-money laundering (AML) and terrorist financing policies.

Thailand

In recent years, the Thai government has only tightened regulations on the crypto sector. For example, since April 2022, Thailand's Securities and Exchange Commission (SEC) has banned companies from accepting cryptocurrency as payment for services.

At the same time, in 2024, the Thai government abolished VAT on cryptocurrency transactions and also removed restrictions for private investors to trade tokens backed by physical assets such as real estate or gold, which is certainly among the regulation's positive effects.

Argentina

The government of this country has not just adopted several initiatives favorable to digital assets but has also allowed them to be used as currency in contracts.

For example, in March 2024, the Argentine Senate approved an AML law that requires all crypto service providers to register for a license and comply with international FATF standards. Also, Argentina's lower house passed the "Comprehensive Bill", which allowed crypto investors to legally use up to $100,000 worth of previously undeclared digital assets without declaring taxes.

In addition, the Argentine Internal Revenue Service (AFIP) equated cryptocurrencies with traditional assets and clarified tax rules for digital asset transactions.

Russia

In 2024, Russia passed several bills regulating the crypto sector. One of the most discussed was the law "On Amendments to Certain Legislative Acts of the Russian Federation." Thanks to this law, miners can legally mine cryptocurrency and pay taxes on their income, and a special register was created to keep track of them.

Russia is among the top three global leaders in cryptocurrency mining volume: it accounts for 11% of the total hash rate. The first line is occupied by the USA (35%) and the second by Kazakhstan (18%).

The new bill introduced experimental legal regimes (EPRs) to test new payment mechanisms using digital assets. This bill primarily aims to create new financial platforms for international settlements, such as the BRICS Bridge. Also, once the EPR rules come into force, foreign trade settlements and cryptocurrency exchange trading will be allowed starting September 1, 2024.

Conclusion

In 2025, we may see new cryptocurrency laws and regulations that will increase company transparency and protect investors from unscrupulous companies. For example, as of January 1, 2025, new tax rules for crypto transactions will be introduced in the United States, and major exchanges such as Coinbase and Kraken will be required to hand over data about their customers to the IRS.

In general, analysts expect that the US policy towards cryptocurrencies, especially after President Donald Trump's arrival in office, will become more loyal. In 2025, they plan to pass legislative initiatives such as FIT-21 and the "Stable Coin Clarity in Payments Act". However, as experts from BeInCrypto expect, restrictive measures are likely to remain in place in China.

In general, the insufficiently developed regulatory framework for cryptocurrency regulation has stopped many investors due to the lack of legal protection, which creates certain risks, including money laundering and other financial crimes. On the other hand, along with new regulatory rules, more restrictions will prevent certain users from accessing specific markets.