Cryptocurrency definition and classification: The legal traditions that apply to these virtual currencies differ depending on how each country defines and categorizes cryptocurrencies. These digital currencies are legalized in some countries as property, security, or commoditized, and in others, they are not recognized as money or financial instruments.
Government goals and priorities: Based on the government’s objectives, the legal environment and relative policies regarding cryptocurrencies can serve various purposes. Some of them include facilitating innovation, protecting investors and consumers, maintaining stability in the crypto environment, penalizing unlawful activities, or serving the interests of the specific nation.
Government Coordination: The level of coordination and integration of government policies and laws concerning cryptocurrencies in different regions may differ based on the level of cooperation within the country. Some nations would be able to follow the rules and recommendations of international bodies such as “the FATF or G20”. While other countries will, on the other hand, be able to opt for totally different and divergent options.
In early January 2024, the US Government announced a new set of rules for cryptocurrencies in the United States of America. These policies cover six major areas, such as financial stability problems, consumer and investor problems, and many more. The Cryptocurrency Policy Councils were also formed, whose duty would be to monitor and oversee the implementation of the policies.
