All the crypto enthusiasts face the fact that they operate in a regulatory gray zone since Bitcoin and other crypto was introduced. At some point, Bitcoin was just a fancy new thing that only geeks and a couple of enthusiasts reveled in. But after we saw Ethereum and a few other projects capable of being a basis for smart contracts, things changed really fast and new crypto startups promising to change almost every niche and segment of business and economy started popping up here and there like in the pre-dot-com era. Crypto businesses moved fast, investors started to include crypto to their portfolios and even regular people started to be aware of the crypto trend. But regulators moved way slower than trends and enforcement started taking place when blockchains turned into something way bigger than a geek thing. In 2026, you can hardly find a jurisdiction that debates whether digital assets belong in the financial system, although some still prohibit the use of crypto for their citizens.
The biggest misconception today is thinking of crypto as being legal or illegal because ownership is generally allowed everywhere and there are no prison sentences or fines for possessing crypto. When it comes to trading, it is again often permitted almost everywhere, especially when you do it on platforms that have a license from a local financial regulator. But when people start replacing local fiat currency with stablecoins or try to evade taxes by investing in crypto, that is where all the problems start. That is why businesses should be extremely cautious about implementing crypto in their business processes. Even companies like 777bet io fun use crypto inside their infrastructure while having all the licenses necessary to do it.
Another misconception is that incorporation equals compliance. A company may be registered in a crypto-friendly jurisdiction but still have problems with consumer data protection or AML rules, which doesn’t allow it to continue to operate freely. Let’s try to compare each jurisdiction and understand what is legal and what is restricted and should not be done unless a company is willing to lose its license or face a huge fine.
United States
The United States is probably the most difficult jurisdiction for crypto-related businesses as there is no single crypto “book of rules” that answers all questions. When a new crypto company wants to enter the US market, regulators apply existing laws from the securities, commodities, and banking sectors, depending on the nature ofthe business.
What is legal:
- Holding crypto is legal
- Self-custody is legal
- Spot trading on compliant platforms is legal
What is risky:
- Token sales that look like investment contracts
- Retail access to leveraged or derivatives products without proper authorization
- Custody arrangements are lacking clear segregation and protection of customer assets
In other words, the US legality status is specific to each possible product separately so a minor change in token distribution model or marketing language can cause a regulator to change classification or even ban a company from the market.
European Union
The European Union has moved further than any other market in creating a framework for crypto companies and products. The MiCA sets unified rules for all countries within the EU on how to regulate crypto-related startups and fully-grown businesses, which reduces fragmentation between national regulators once authorization is granted.
To comply with MiCA, a business must meet special criteria for capital, segregate client assets and enforce AML policies.
What is legal:
- Operating as an authorized crypto asset service provider
- Issuing tokens with proper whitepapers
- Serving retail and institutional clients
What is risky:
- Operating without authorization
- Issuing stablecoins without adequate reserves
- Marketing that downplays volatility or misrepresents risk.
The EU approach shows that regulation does not kill crypto; it just formalizes it and the companies capable of meeting higher standards get access to the EU market without obstructions.
United Kingdom
The United Kingdom is a whole different story, and its cryptoasset regime is still being finalized, although most of the AML registration requirements and financial promotion restrictions are already finished. To work in the UK and serve local clients, any crypto company should comply with AML standards enforced by the FCA and their marketing efforts targeting retail investors should comply with respective rules and regulations, meaning you can’t trick or mislead UK citizens in trading or token sellin,g providing false or inadequate information. Risk warnings must be clear to anyone and sometimes promotions should be approved beforehand, depending on their scale.
What is legal:
- Holding and trading crypto
- Operating under proper AML
- Retail offerings that meet promotional requirements.
What is risky:
- Influencer campaigns
- Promises of high yield
- Targeting UK residents from offshore
Singapore
Singapore remains one of the biggest jurisdictions for digital assets and they have pretty tight regulations too. The Monetary Authority of Singapore works under the Payment Services Act when issuing licenses for crypto companies willing to work in this jurisdiction. Any company that wants a license must have strong AML policies, keep up with the best cybersecurity trends and be audited.
What is legal:
- Digital payment services and token releases
- Institutional trading
- Segregated asset management
What is risky:
- Use the Singapore jurisdiction just for branding while targeting less-regulated markets
- Having a weak transaction monitoring system
The Singapore licensing framework is one of the best in the world because it balances openness with control, so companies with local licenses are well recognised and trusted even outside Singapore, because if Singapore trusts them, why don’t other countries do the same?.
UAE and Hong Kong
Both the United Arab Emirates and Hong Kong are actively working on becoming hubs for all businesses related to fintech and crypto. But despite their friendliness to the crypto field, neither of the two countries allows uncontrolled startups to work in their jurisdiction.
What is legal:
- Locally licensed exchanges and custodians
- Token sales
- Institutional products
What is risky:
- Marketing beyond approved categories of investors
- Weak cybersecurity or audit failures