Five Global South countries leading the way in crypto regulation  

The country’s Financial Intelligence Service (FIS) is leading this effort, with training and monitoring tools being developed in collaboration with international partners, including the United Nations and Russia.

FIS Director Muluken Amare confirmed that while crypto trading remains illegal, preparations are underway to build the technical and legal capacity to respond to potential violations.

Ethiopia is currently investing in technology and human resources to detect and monitor virtual transactions.

Officials stress that even in the absence of full legalisation, there is a need for a regulatory framework to deter misuse and prevent cryptocurrencies from being exploited for crimes such as money laundering and terrorism financing.

Other countries are also making strides in the regulation of crypto transactions. All over the world, countries including the United States and the United Kingdom are putting in place measures to ensure that crypto trading is regulated.

Within the global south, these other countries are also in the race to ensure regularised crypto transactions.  While their strategies differ, the trend is clear: crypto is no longer on the sidelines, and governments are racing to shape its future within their borders.

China

China has taken one of the toughest positions globally on cryptocurrencies.

The country banned Bitcoin mining in 2021, prompting the closure or relocation of mining operations. Later that year, it declared all cryptocurrency transactions illegal, effectively outlawing crypto trading and related businesses.

The People’s Bank of China stated that crypto enterprises had been facilitating unregulated public financing, leading to risks for investors and threats to financial stability.

Despite the ban, China continues to explore blockchain technology and has advanced its central bank digital currency (CBDC), the digital yuan, as a government-backed alternative to decentralised cryptocurrencies.

Singapore

Singapore has taken a more structured approach by recognising cryptocurrencies as property, though not legal tender.

The Monetary Authority of Singapore (MAS) regulates exchanges under the Payment Services Act and has issued multiple guidelines to limit public advertising by digital payment token providers.

In 2023, MAS launched a framework for stablecoins, requiring issuers to meet strict conditions to be recognised as “MAS-regulated.”

While the country does not tax long-term capital gains on crypto, it does tax companies that actively trade in digital assets.

This regulatory clarity, combined with low taxes and investor protections, has positioned Singapore as a hub for crypto innovation and governance in the region.

India

India remains undecided on whether to fully legalise or ban cryptocurrency.

While a bill to prohibit private cryptocurrencies has been circulated, it is yet to be passed into law. Instead, India has implemented one of the highest crypto tax rates globally, imposing a 30% tax on gains and a 1% tax deducted at source on all trades.

In its 2022 Finance Bill, the Indian government defined virtual digital assets as property and introduced tax reporting obligations, signalling a step toward formal regulation even without full legal clarity.

Despite mixed signals, India continues to participate in global crypto conversations and has supported calls for international regulation.

Brazil

Brazil has passed a legal framework that formally recognises cryptocurrencies as valid forms of payment.

Although Bitcoin is not considered legal tender, the government enacted Law No. 14,478 in 2023, which sets out rules for virtual asset service providers.

Under the law, the Central Bank of Brazil was designated as the authority to regulate and supervise crypto activities. Brazil’s approach is aimed at promoting adoption while ensuring financial security and transparency. With regulatory infrastructure now in place, the country has taken a leading role in Latin America’s push for responsible crypto integration into the mainstream economy.