Industry attributes
Other attributes
Cryptocurrency law involves sets of codified rules and regulations that govern the ways cryptocurrencies and blockchain-based technologies are created, used, and traded. Cryptocurrency law varies by country and locality and is typically regulated by a government jurisdiction. Cryptocurrency is not legal in all countries, nor do all countries have laws recognizing or regulating cryptocurrency. For example, in Egypt, the Main Islamic legislative and judicial Institution Dar al-Ifta issued a religious decree classifying commercial transactions with bitcoins as haram (prohibited by Islamic law). There are many terms used to refer to cryptocurrency, not to be confused with different types of cryptocurrency (Bitcoin, Ethereum). Cryptocurrency is also referred to as a digital or virtual asset, digital or virtual currency, a virtual commodity, and crypto or payment tokens.
Cryptocurrency does not exist in physical form (like paper money) and is typically not issued by a central authority. Cryptocurrencies typically use decentralized control as opposed to a central bank digital currency (CBDC). When a cryptocurrency is minted, or created prior to issuance, or issued by a single issuer, it is generally considered centralized. When implemented with decentralized control, each cryptocurrency works through distributed ledger technology, typically a blockchain, that serves as a public financial transaction database. Traditional asset classes like currencies, commodities, and stocks, as well as macroeconomic factors, have modest exposures to cryptocurrency returns.
- Initial coin offering (ICO)
- Automated investment advisers
- Digital marketplace financing
- Coin listing policy framework
- Distributed ledger
- Cryptocurrency exchange
- Token and Coin Compliance
- Cryptocurrency Sales Regulation
- Cryptocurrency Securities Law
- Cryptocurrency Transmission Law
- Anti-money Laundering Cryptocurrency Law
- Cryptocurrency Tax Law
- Cryptocurrency Promotion Law
- Cryptocurrency Ownership and Licensing Law
- Cryptocurrency Reporting Requirements
- Cryptocurrency Border Restrictions and Declaration
- Estate Planning for Cryptocurrency
- Cryptocurrency Mining Regulations
According to its “Framework for ‘Investment Contract’ Analysis of Digital Assets", the Securities and Exchange Commission (SEC) uses the "Howey test" to determine whether or not an ICO is a security. The expectation of profit is a critical part of this test. If an ICO is determined to be a security, it must be registered and meet reporting obligations with the SEC.
- Initial Coin Offering Regulations
- SEC Framework for “Investment Contract” Analysis of Digital Assets
The SEC requires registration of any virtual currency or digital asset traded in the United States. The Commodity Futures Trading Commission (CFTC) and the SEC work closely together on cryptocurrency regulatory issues. According to a ruling by a United States Eastern District of New York federal judge in March 2018, cryptocurrency is regulated as a commodity and falls under the jurisdiction of the CFTC. As a result of this ruling, and the use of cryptocurrency as a money-transmission service, the SEC does not have direct oversight of cryptocurrency transactions. The SEC does monitor and provide oversight for ICOs. In July 2019, the SEC released its "Framework for 'Investment Contract' Analysis of Digital Assets," which provides a framework for when federal securities laws apply to ICOs.
In October 2018, the SEC launched the Strategic Hub for Innovation and Financial Technology (FinHub), which serves as a public resource for the SEC's FinTech-related issues and initiatives. FinHub started a public engagement initiative on blockchain, distributed ledger, and digital assets in 2019. This initiative took the form publications and publicly held events and forums.
In October 2019, the CFTC, SEC, and the Financial Crimes Enforcement Network issued a joint statement that outlined cryptocurrency and digital asset reporting and registration obligations under the Bank Secrecy Act, which protects against money laundering and terrorism financing.
Cryptocurrency is regulated under a number of federal acts in the United States. Since 2013, the SEC has charged a number of companies and individuals in cryptocurrency related court cases, administrative proceedings, and cease-and-desist orders. A number of government agencies, including the Federal Trade Commission (FTC), the U.S. Department of Justice (DOJ), and the CFTC, as well as state governments and private individuals, have also filed lawsuits regarding the use and trading of cryptocurrency and intellectual property of blockchain technology. The following is a list of notable laws, court cases, and individuals or entities that have received cease-and-desist notices from the SEC regarding cryptocurrency.
- Bank Secrecy Act
- Stamp Payment Act of 1862
- Electronic Fund Transfer Act
- Katz v. United States, 289 U.S. 347 (1967)
- United States v. Warshak, 631 F.3d 266
- Unlawful Internet Gambling Enforcement Act (UIGEA)
- Federal Wire Act
- SEC v. W.J. Howey Co. 328 U.S. 293
- SEC v. High Street Capital Partners, LLC et al.
- SEC v. BitClave PTE Ltd.
- SEC v. Putnam, et al.
- SEC v. Dropil, Inc., et al.
- SEC v. Meta 1 Coin Trust, et al.
- Steven Seagal (SEC cease-and-desist order)
- Enigma MPC (SEC cease-and-desist order)
- SEC v. Ackerman
- SEC v. Grybniak, et al.
- SEC v. Manor, et al.
- SEC v. Blockchain of Things, Inc.
- SEC v. Eyal, et al.
- SEC v. Tlegram Group Inc., et al.
- SEC v. Block.one
- SEC v. Lucas
- SEC v. ICOBox, et al.
- SEC v. Bitqyck, Inc., et al.
- ICO Rating (SEC cease-and-desist order)
- SimplyVital Health, Inc. (SEC cease-and-desist order)
- SEC v. Middleton, et al.
- SEC v. Longfin Corp., et al.
- SEC v. Kik Interactive Inc.
- SEC v. Pacheco
- NextBlock Global Ltd. and Alex Tapscott (SEC cease-and-desist order)
- SEC v. Natural Diamonds Investment Co., et al.
- Mutual Coin Fund LLC and Usman Majeed (SEC cease-and-desist order)
- SEC v. Gladius Network, LLC
- CoinAlpha Advisors LLC (SEC cease-and-desist order)
- Munchee Inc. (SEC cease-and-desist order)
- Floyd Mayweather, Jr. (SEC cease-and-desist order)
- Khaled Khaled ("DJ Khaled") (SEC cease-and-desist order)
- Paragon Coin, Inc. (SEC cease-and-desist order)
- CarrierEQ, Inc., d/b/a Airfox (SEC cease-and-desist order)
- Zachary Coburn (SEC cease-and-desist order)
- SEC v. Blockvest LLC, et al.
- SEC v. 1pool Ltd. a.k.a. 1Broker, et al.
- TokenLot LLC, Lenny Kugel, and Eli Lewitt (SEC cease-and-desist order)
- Crypto Asset Management, LP and Timothy Enneking (SEC cease-and-desist order)
- Tomahawk Exploration LLC and David T. Laurance (SEC cease-and-desist order)
- SEC v. Jesky, et al.
- SEC v. Titanium Blockchain Infrastructure Services Inc., et al.
- SEC v. Sharma, et al.
- SEC v. Longfin Corp., et al.
- SEC v. Sharma, et al.
- SEC v. Montroll, et al.
- SEC v. AriseBank, et al.
- SEC v. AriseBank, et al. Jared Rice Sr. and Stanley Ford
- SEC v. PlexCorps, et al.
- SEC v. REcoin Group Foundation, LLC, et al.
- Report of Investigation Pursuant to Section 21(a) of the Securities Exchange Act of 1934: The DAO
- SEC v. Renwick Haddow, et al.
- In re Bitcoin Investment Trust and SecondMarket, Inc.
- SEC v. Garza, et al.
- In re Sand Hill Exchange, et al.
- In re BTC Trading, Corp. and Ethan Burnside
- In re Erik T. Voorhees
- SEC v. Shavers
- United States v. Faiella
- State of Florida v. Espinoza
- United States v. Ross William Ulbricht
- New York Office of the Attorney General v. Bitfinex
- Blockchain.com v. Paymium
- Oracle v. CryptoOracle
- Bradley Sostack v. Ripple
- SEC v. Veritaseum
- Traders v. Coinbase
- Harrison Hines v. Joseph Lubin
- New Jersey v. Pocketinns Inc.
- SEC v. Jon Montroll
- Department of Justice v. Blake Kantor
- Department of Justice v. hacking group “The Community”
- Commodity Futures Trading Commission v. Morgan Hunt and Kim Hecroft
- CFTC v. Control-Finance Ltd.
- SEC v. Longfin Corp.
- U.S. Federal Trade Commission v. Bitcoin Funding Team
Cryptocurrency is regulated differently by each country or jurisdiction. In some countries various forms of cryptocurrency are recognized as legal tender; in others, all forms of cryptocurrency transactions are illegal.
- Afghanistan
- Akrotiri
- Albania
- Algeria
- American Samoa
- Andorra
- Angola
- Anguilla
- Antarctica
- Antigua and Barbuda
- Argentina
- Armenia
- Aruba
- Ashmore and Cartier Islands
- Australia
- Austria
- Azerbaijan
- Bahamas, The
- Bahrain
- Bangladesh
- Barbados
- Bassas da India
- Belarus
- Belgium
- Bermuda
- Belize
- Benin
- Bermuda
- Bhutan
- Bolivia
- Bosnia and Herzegovina
- Botswana
- Bouvet Island
- Brazil
- British Indian Ocean Territory
- British Virgin Islands
- Brunei
- Bulgaria
- Burkina Faso
- Burma
- Burundi
- Cambodia
- Cameroon
- Canada
- Cape Verde
- Cayman Islands
- Central African Republic
- Chad
- Chile
- China
- Christmas Island
- Clipperton Island
- Cocos (Keeling) Islands
- Colombia
- Comoros
- Congo, Democratic Republic of the
- Congo, Republic of the
- Cook Islands
- Coral Sea Islands
- Costa Rica
- Cote d'Ivoire
- Croatia
- Cuba
- Cyprus
- Czech Republic
- Denmark
- Dhekelia
- Djibouti
- Dominica
- Dominican Republic
- Ecuador
- Egypt
- El Salvador
- Equatorial Guinea
- Eritrea
- Estonia
- Ethiopia
- Europa Island
- Falkland Islands (Islas Malvinas)
- Faroe Islands
- Fiji
- Finland
- France
- French Guiana
- French Polynesia
- French Southern and Antarctic Lands
- Gabon
- Gambia, The
- Gaza Strip
- Georgia
- Germany
- Ghana
- Gibraltar
- Glorioso Islands
- Greece
- Greenland
- Grenada
- Guadeloupe
- Guam
- Guatemala
- Guernsey
- Guinea
- Guinea-Bissau
- Guyana
- Haiti
- Heard Island and McDonald Islands
- Holy See (Vatican City)
- Honduras
- Hong Kong
- Hungary
- Iceland
- India
- Indonesia
- Iran
- Iraq
- Ireland
- Isle of Man
- Israel
- Italy
- Jamaica
- Jan Mayen
- Japan
- Jersey
- Jordan
- Juan de Nova Island
- Kazakhstan
- Kenya
- Kiribati
- Korea, North
- Korea, South
- Kuwait
- Kyrgyzstan
- Laos
- Latvia
- Lebanon
- Lesotho
- Liberia
- Libya
- Liechtenstein
- Lithuania
- Luxembourg
- Macau
- Macedonia
- Madagascar
- Malawi
- Malaysia
- Maldives
- Mali
- Malta
- Marshall Islands
- Martinique
- Mauritania
- Mauritius
- Mayotte
- Mexico
- Micronesia, Federated States of
- Moldova
- Monaco
- Mongolia
- Montserrat
- Morocco
- Mozambique
- Namibia
- Nauru
- Navassa Island
- Nepal
- Netherlands
- Netherlands Antilles
- New Caledonia
- New Zealand
- Nicaragua
- Niger
- Nigeria
- Niue
- Norfolk Island
- Northern Mariana Islands
- Norway
- Oman
- Pakistan
- Palau
- Panama
- Papua New Guinea
- Paracel Islands
- Paraguay
- Peru
- Philippines
- Pitcairn Islands
- Poland
- Portugal
- Puerto Rico
- Qatar
- Reunion
- Romania
- Russia
- Rwanda
- Saint Helena
- Saint Kitts and Nevis
- Saint Lucia
- Saint Pierre and Miquelon
- Saint Vincent and the Grenadines
- Samoa
- San Marino
- Sao Tome and Principe
- Saudi Arabia
- Senegal
- Serbia and Montenegro
- Seychelles
- Sierra Leone
- Singapore
- Slovakia
- Slovenia
- Solomon Islands
- Somalia
- South Africa
- South Georgia and the South Sandwich Islands
- Spain
- Spratly Islands
- Sri Lanka
- Sudan
- Suriname
- Svalbard
- Swaziland
- Sweden
- Switzerland
- Syria
- Taiwan
- Tajikistan
- Tanzania
- Thailand
- Timor-Leste
- Togo
- Tokelau
- Tonga
- Trinidad and Tobago
- Tromelin Island
- Tunisia
- Turkey
- Turkmenistan
- Turks and Caicos Islands
- Tuvalu
- Uganda
- Ukraine
- United Arab Emirates
- United Kingdom
- United States
- Uruguay
- Uzbekistan
- Vanuatu
- Venezuela
- Vietnam
- Virgin Islands
- Wake Island
- Wallis and Futuna
- West Bank
- Western Sahara
- Yemen
- Zambia
- Zimbabwe
- United States Securities and Exchange Commission (SEC)
- United States Commodities and Futures Trading Commission (CFTC)
- United States Federal Trade Commission (FTC)
- United States Department of the Treasury
- United States Internal Revenue Service (IRS)
- United States Committee on Banking, Housing, and Urban Affairs
- Global Financial Innovation Network (GFIN)
- United States Financial Crimes Enforcement Network
- Unidad de Información Financiera (UIF)
- Central Bank of Argentina
- Bermuda Monetary Authority
- National Securities and Stock Market Commission (NSSM) and the National Bank of Ukraine
- IRS Virtual Currency Guidance: Virtual Currency Is Treated as Property for U.S. Federal Tax Purposes; General Rules for Property Transactions Apply
- SEC Framework for “Investment Contract” Analysis of Digital Assets
- SEC Statement of Digital Asset Securities Issuance and Trading
- SEC Chairman's Testimony on Virtual Currencies
- SEC Statement on Potentially Unlawful Online Platforms for Trading Digital Assets
- Joint Staff Statement on Broker-Dealer Custody of Digital Asset Securities
- Joint Statement of CFTC/FinCEN/SEC Leaders on Activities Involving Digital Assets
- Letter to NYDFS on Proposed Coin Listing Policy
- Digital Asset Business Act of September 2018 (Bermuda)
