Crypto Regulations
Cryptocurrencies provide digital means of exchange without any physical coins or bills. The crypto market has grown rapidly in popularity since Bitcoin’s inception in 2008. However, the more ubiquitous it becomes, the need for crypto regulations increases. We discuss the history of government action, the future of crypto regulations and more.
Crypto Brokers
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1
Plus500USTrading in futures and options involves the risk of loss and is not suitable for everyone. -
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NinjaTrader -
3
Interactive Brokers -
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eToro USAeToro USA LLC and eToro USA Securities Inc.; Investing involves risk, including loss of principal; Not a recommendation -
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OANDA USCFDs are not available to residents in the United States. -
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Focus Markets
This is why we think these brokers are the best in this category in 2026:
- Plus500US - Plus500’s Micro-Bitcoin and Micro-Ethereum futures only allow traders to scratch the surface of crypto trading with bets on the two most popular digital assets. Importantly, you cannot buy and own the cryptos with these derivative contracts - you are speculating on their price.
- NinjaTrader - You can get exposure to micro Bitcoin futures through the CME Group’s centralized exchange, which is highly regulated by the US CFTC. Micro contracts allow you to trade a fractional size of one Bitcoin, giving you more risk control and order flexibility.
- Interactive Brokers - IBKR lets you purchase and hold Bitcoin, Bitcoin Cash, Ethereum, and Litecoin at competitive commission rates and without needing a crypto wallet. Additionally, there is a range of other diverse assets to explore, such as crypto indices like the NYSE Bitcoin Index, as well as futures contracts like the BAKKT Bitcoin Futures.
- eToro USA - eToro US offers 24 tradeable cryptoassets, with just a 1% buying/selling fee added to the spread. Additionally, there are 80 different coins available through the broker’s proprietary wallet service. You can also practice your crypto strategies easily by switching between live and demo mode. Crypto asset investing is highly volatile and unregulated. No consumer protection. Tax on profits may apply.
- OANDA US - Cryptocurrency trading is offered via Paxos, a separate entity from Oanda. You can speculate on the world’s biggest cryptos by market cap. Commissions are lower than many peers starting at 0.25%. Through the broker’s partnership with Paxos, clients can spot trade cryptocurrencies on the itBit exchange through the OANDA native platform.
- Focus Markets - Focus Markets has clearly been built for crypto traders, offering an impressive 90+ derivatives, including major tokens like Bitcoin, Ethereum and Ripple. With high leverage, a commission-free trading account and fast execution on MT5, it delivers a reliable environment for active crypto traders.
Plus500US
"Plus500US stands out as an excellent choice for beginners, offering a very user-friendly platform, low day trading margins, and access to the Futures Academy to enhance trading skills. Its powerful tools and reliable service helped it scoop second place in DayTrading.com's annual 'Best US Broker' award."
Plus500US Quick Facts
| Coins | MicroBitcoin, MicroEthereum |
|---|---|
| Crypto Mining | No |
| Auto Market Maker | No |
| Crypto Lending | No |
| Crypto Staking | No |
| Platforms | WebTrader, App |
| Minimum Deposit | $100 |
| Regulator | CFTC, NFA |
| Account Currencies | USD |
Pros
- Plus500 added prediction markets to its 'Plus500 Futures' platform in February 2026, with event-based trades covering 10 categories, from financials to politics, including short-term opportunities with intraday contracts that expire after just 15 minutes.
- The straightforward account structure, pricing model and web platform offer an easier route into futures trading than rivals like NinjaTrader
- Plus500US excels for its low fees with very competitive day trading margins and no inactivity fees, live data fees, routing fees, or platform fees
Cons
- Despite competitive pricing, Plus500US lacks a discount program for high-volume day traders, a scheme found at brokers like Interactive Brokers
- Although support response times were fast during tests, there is no telephone assistance
- Plus500US does not offer social trading capabilities, a feature available at alternatives like eToro US which could strengthen its offering for aspiring traders
NinjaTrader
"NinjaTrader continues to meet the demands of active futures traders looking for low fees and premium analysis tools. The platform hosts top-rate charting features including hundreds of indicators and 10+ chart types."
Tobias Robinson, Reviewer
NinjaTrader Quick Facts
| Coins | BTC |
|---|---|
| Crypto Mining | No |
| Auto Market Maker | No |
| Crypto Spread | Floating |
| Crypto Lending | No |
| Crypto Staking | No |
| Platforms | NinjaTrader Desktop, Web & Mobile, eSignal |
| Minimum Deposit | $0 |
| Regulator | NFA, CFTC |
| Account Currencies | USD |
Pros
- NinjaTrader is a widely respected and award-winning futures broker and is heavily authorized by the NFA and CFTC
- Traders can get free platform access and trade simulation capabilities in the unlimited demo
- You can get thousands of add-ons and applications from developers in 150+ countries
Cons
- Non forex and futures trading requires signing up with partner brokers
- There is a withdrawal fee on some funding methods
- The premium platform tools come with an extra charge
Interactive Brokers
"Interactive Brokers is one of the best brokers for advanced day traders, providing powerful charting platforms, real-time data, and customizable layouts, notably through the new IBKR Desktop application. Its superb pricing and advanced order options also make it highly attractive for day traders, while its diverse range of equities is still among the best in the industry."
Christian Harris, Reviewer
Interactive Brokers Quick Facts
| Coins | BTC, LTC, ETH, XRP |
|---|---|
| Crypto Mining | No |
| Auto Market Maker | No |
| Crypto Spread | 0.12%-0.18% |
| Crypto Lending | No |
| Crypto Staking | No |
| Platforms | Trader Workstation (TWS), IBKR Desktop, GlobalTrader, Mobile, Client Portal, AlgoTrader, OmniTrader, TradingView, eSignal, TradingCentral, ProRealTime, Quantower |
| Minimum Deposit | $0 |
| Regulator | FCA, SEC, FINRA, CFTC, CBI, CIRO, SFC, MAS, MNB, FINMA, AFM |
| Account Currencies | USD, EUR, GBP, CAD, AUD, INR, JPY, SEK, NOK, DKK, CHF, AED, HUF |
Pros
- The new IBKR Desktop platform takes the best of TWS while adding bespoke tools like Option Lattice and Screeners with MultiSort to create a genuinely impressive trading experience for day traders at every level.
- The TWS platform has clearly been built for intermediate and advanced traders and comes with over 100 order types and a reliable real-time market data feed that rarely goes offline.
- While primarily geared towards experienced traders, IBKR has made moves to broaden its appeal in recent years, reducing its minimum deposit from $10,000 to $0.
Cons
- Support can be slow and frustrating based on tests, so you might find it challenging to reach customer service representatives promptly or encounter delays in resolving issues.
- IBKR provides a wide range of research tools, but their distribution across trading platforms and the web-based 'Account Management' page lacks consistency, leading to a confusing user experience.
- You can only have one active session per account, so you can’t have your desktop program and mobile app running simultaneously, making for a sometimes frustrating trading experience.
eToro USA
"eToro remains a top pick for traders looking for leading social investing and copy trading services. With a low deposit, zero commissions and an intuitive platform, the broker will meet the needs of newer day traders."
Jemma Grist, Reviewer
eToro USA Quick Facts
| Coins | BTC, ETH, BCH, DASH, LTC, ETC, MIOTA, XLM, EOS, NEO, ZEC, XTZ, MKR, COMP, LINK, UNI, YFI, DOGE, AAVE, ALGO, MANA, ENJ, BAT, MATIC, FLR, SHIBxM |
|---|---|
| Crypto Mining | No |
| Auto Market Maker | No |
| Crypto Spread | BTC 0.75% |
| Crypto Lending | No |
| Crypto Staking | No |
| Platforms | eToro Trading Platform & CopyTrader |
| Minimum Deposit | $100 |
| Regulator | SEC, FINRA |
| Account Currencies | USD |
Pros
- Investors can access Smart Portfolios for a more hands-off approach, covering a range of sectors and markets such as renewable energy and artificial intelligence
- A free demo account means new users and prospective day traders can try the broker risk-free
- eToro USA Securities is a trustworthy, SEC-regulated broker that is a member of FINRA and SIPC
Cons
- The proprietary terminal doesn't support trading bots and there are no additional stock market analysis tools
- Average fees may cut into the profit margins of day traders
- There's a narrower range of day trading instruments available compared to competitors, with only stocks, ETFs and cryptos
OANDA US
"OANDA remains an excellent broker for US day traders seeking a user-friendly platform with premium analysis tools and a straightforward joining process. OANDA is also heavily regulated with a very high trust score."
OANDA US Quick Facts
| Coins | BTC, ETH, LTC, BCH, PAXG, LINK, UNI, AAVE |
|---|---|
| Crypto Mining | No |
| Auto Market Maker | No |
| Crypto Spread | $100 |
| Crypto Lending | No |
| Crypto Staking | No |
| Platforms | OANDA Trade, MT4, TradingView, AutoChartist |
| Minimum Deposit | $0 |
| Regulator | NFA, CFTC |
| Account Currencies | USD, EUR, GBP, AUD, JPY, CHF, HKD, SGD |
Pros
- There's a strong selection of 68 currency pairs for dedicated short-term forex traders
- Beginners can get started easily with $0 minimum initial deposit
- The proprietary OANDA web platform continues to deliver a highly competitive charting environment, including 65+ technical indicators powered by TradingView
Cons
- There's only a small range of payment methods available, with no e-wallets supported
- The range of day trading markets is limited to forex and cryptos only
- It's a shame that customer support is not available on weekends
Focus Markets
"Focus Markets is perfect for experienced traders familiar with MetaTrader 5, offering flexible crypto transactions (USDT and BTC) and access to over 90 cryptocurrencies for seamless speculation, deposits, and withdrawals."
Focus Markets Quick Facts
| Coins | BTC, ETH, XRP, LTC |
|---|---|
| Crypto Mining | No |
| Auto Market Maker | No |
| Crypto Spread | Variable |
| Crypto Lending | No |
| Crypto Staking | No |
| Platforms | MT5 |
| Minimum Deposit | $100 |
| Regulator | ASIC, SVGFSA |
| Account Currencies | USD, EUR, GBP, CAD, AUD, NZD, JPY, SGD |
Pros
- Focus Markets is regulated by ASIC – one of the most respected regulatory bodies in the financial industry with robust safeguards like negative balance protection, ensuring you can’t lose more than your balance in volatile markets.
- Focus Markets excelled in the deposit and withdrawal category during testing, offering more base currencies than most competitors, including USD, CAD and EUR - and a range of traditional and popular crypto payment options, including BTC and USDT.
- Focus Markets’ MT5 platform delivered fast, seamless trade execution during testing with advanced charting, multiple timeframes, and useful tools like Depth of Market (DOM). Its clean interface made navigation easy, while clear risk/reward ratios ensures precise trading.
Cons
- Focus Markets’ 24/5 support lacks direct phone help and unresponsive live chat, while email replies took a full business day during our latest tests. This slow support is a major drawback for active traders who need quick resolutions.
- Regulatory protection is a location lottery at Focus Markets – Australian traders benefit from strong ASIC oversight, but those using the SVGFSA-registered entity face limited recourse options in disputes.
- A significant drawback of Focus Markets is the lack of platform variety. It only support MT5, excluding popular platforms like MT4, cTrader, and TradingView, plus it hasn't developed its own software that could better meet the needs of beginners.
History Of Cryptos
The technical foundations of cryptocurrency were pioneered by an American cryptographer named David Chaum in the 1980s. He invented a cryptographic system that has a blinding algorithm, which became an important tool for web-based encryption. This algorithm provided secure exchanges and confidential transactions amongst parties, which was known as ‘blinded money’.
Early precursors to cryptocurrencies continued with work by Wei Dai in 1998, whose white paper on b-money theorised a payment method based on a cryptographic system that had characteristics of decentralisation.
In 2008, Satoshi Nakamoto, a pseudonymous person or secret identity, published a paper called ‘Bitcoin – A Peer to Peer Electronic Cash System’. Nakamoto’s motive to create Bitcoin was in response to the financial crisis of 2008. In 2009, Nakamoto made the Bitcoin software public and a group of enthusiasts began exchanging and mining Bitcoin.
In 2010, one of the first real-world Bitcoin transactions valued the cryptocurrency at the rate of 10,000 BTC for two pizzas. Dozens of similar cryptocurrencies began to appear, with Litecoin and Ethereum gaining popularity by 2016. Thousands more of these “altcoins” would launch in the following years, with many of them folding or dwindling to irrelevance, but some like Solana and Ripple gaining widespread adoption and achieving market capitalisation in the billions.
Blockchain technology continues to disrupt the fintech industry, bringing with it both trading opportunities while also capturing the attention of regulators.
Crypto Regulations
Government policies and crypto regulations vary by country as authorities aren’t globally coordinated on the matter. There has been a lack of agreement on what type of asset cryptocurrencies actually are – securities, commodities, or something else? – and this has led to numerous “grey areas” while regulating the crypto sector. For example, cryptocurrencies stored online may not have the same legal protections as the money in your bank account, and since crypto exchanges are not regulated in the same way as brokers, clients may find that their funds are not protected in the case of business insolvency.
New crypto regulations are continuously being updated so it’s important to stay abreast of trading exchange requirements, along with rules around crypto mining, lending, custody and taxes. And while there aren’t many blanket prohibitions or bans on crypto trading, governments always issue caution when investing due to market volatility.
Regulations & Day Trading
Day traders should check the regulations in their local jurisdiction to see how they deal with:
- Spot crypto trading – are there any restrictions on buying and selling digital assets on spot markets, and are there any consumer protections?
- Derivatives – are crypto derivatives such as CFDs allowed for retail traders in your jurisdiction, and if so, what are the leverage limits and other rules?
- Platform regulation – does your local regulator license crypto exchanges, and if not, are there licensed brokers that support crypto trading? What are the rules for anti-money-laundering (AML) and know-your-customer (KYC) checks for customers, and what will happen if you don’t complete these?
- Regulatory changes – crypto rules have been quickly evolving in recent years, so you should check whether and when any new rules and regulations are due to come into effect, and where to look for new updates on the field.
Generally, we’ve found that crypto brokers are more often licensed than crypto exchanges, which usually aren’t as strongly regulated even if they are “registered” with a regulatory body.
For example, day traders in EU countries can access crypto CFDs through a broker like the CySEC-regulated Pepperstone, while enjoying consumer safeguards such as negative balance protection, segregated client funds and a compensation insurance fund covering up to 20,000 euros in case of business insolvency.
These regulations often extend to restrictions on leveraged trading of cryptocurrencies, with, for example, leverage on crypto instruments limited to 1:2 in EU countries. If you want to access higher leverage, you’ll need to sign up with an exchange or an unregulated crypto broker, though you should be very careful as doing so exposes you to much higher risk.
Crypto Regulations In the UK
The UK’s cryptocurrency regulations allow users to buy and sell crypto tokens, though they are not considered legal tender. However, as of January 6th 2021, the Financial Conduct Authority (FCA) banned the sale of retail crypto derivatives and ETNs. The motive behind the ban comes from the risky nature of the industry, which puts consumers in danger from scams and market instability.
Note, UK residents can still participate in cryptocurrency exchanges as the ban is focused on retail trading products. The direct purchase of established cryptocurrencies is still permitted.
And, stablecoin issuance and payment services became a priority for the FCA in 2026, with further consultations planned around staking and lending digital assets.
Crypto Regulations In the US
US cryptocurrency regulation remains complex due to overlapping federal agencies and varying state laws. Digital assets are not legal tender and are not covered by deposit-insurance protections.
The Securities and Exchange Commission (SEC) applies securities laws where a digital asset qualifies as an investment contract under federal rules, while the Commodity Futures Trading Commission (CFTC) treats virtual currencies such as Bitcoin as commodities and oversees related derivatives markets. State-level requirements also apply, with jurisdictions such as New York requiring crypto firms to obtain a BitLicense or equivalent authorisation to operate.
Crypto Regulations In Europe
The European Union’s Markets in Crypto-Assets (MiCA) regulation has established a unified framework for digital assets across the bloc, requiring crypto-asset service providers (including exchanges, brokers and custodians) to obtain authorisation in an EU member state, meet capital and consumer-protection standards, and comply with existing anti-money-laundering rules. Once authorised, firms can passport services across the EU, creating a single regulatory environment while strengthening transparency, disclosure and operational safeguards for investors.
Retail trading in higher-risk crypto derivatives remains tightly controlled. Where permitted, European Securities and Markets Authority (ESMA) measures limit leverage on crypto CFDs for retail clients and allow national regulators to restrict or prohibit certain products. European Central Bank commentary has broadly supported MiCA’s goals of market stability and consumer protection while highlighting potential systemic risks from large stablecoins. Spot crypto trading remains legal on licensed platforms across most of Europe, with national regulators overseeing implementation within the EU framework.
Crypto Regulations In The Netherlands, Switzerland & Estonia
In the Netherlands, cryptocurrencies aren’t accepted as digital money but are regarded as property. However, the country is striving to regulate them. In contrast, Switzerland accepts crypto exchanges and is regulated by SFTA and FINMA, with the need to obtain a license. Cryptocurrencies as payment are also legal in Swiss stores in certain contexts while retail trading is allowed.
Estonia also holds a similarly progressive stance, where crypto exchanges are legal with approved registration but are not yet considered legal tender. Estonia has planned future regulatory changes i.e. customer identification obligations, payments services and record keeping.
Crypto Regulations In Asia
Asia is the financial hub where most of the world’s crypto trading takes place. Japan has the most progressive regulation, recognising Bitcoin and other digital currencies as legal property. Crypto exchange regulations are also legal with the requirement to register with the FSA.
Singapore’s tax authorities treat Bitcoin as goods, thus, Goods and Services Tax is applied. The surge of Bitcoin in 2017 prompted Malaysia’s Securities Commission to regulate the market by enforcing the Capital Markets and Services Order in 2019.
Crypto is not considered legal tender in India, while exchanges are effectively legal due to the lack of robust regulatory frameworks. Hong Kong considers crypto as virtual commodities, which fall under ‘securities’ that are subject to the SFC’s regulation.
Other Global Views
Other countries take a more conservative view of crypto regulations. In Russia, the law prohibits crypto exchanges, with the Ruble remaining the only legal form of tender. In China, crypto exchanges are illegal and cryptocurrencies are not considered legal tender. In recent years, the Chinese government drafted a law that bestowed legal status on the People’s Bank of China’s digital Yuan.
When it comes to cryptocurrencies in Dubai, the UAE does not recognise Bitcoin as a legal form of tender. However, exchanging digital currencies is allowed, with many UAE-based brokers offering crypto trading. Interestingly, Abu Dhabi’s ADGM was the first to introduce a regulatory framework for virtual assets.
In Canada, digital currencies are not considered legal tender but can be used as payment to buy goods online or in stores that accept them. Canada’s central bank characterises it as securities and Canadian laws have applied tax to crypto transactions since 2013. Exchanges in Canada are regulated as well.
Australia treats cryptocurrencies as legal, classed as property in 2017. Crypto exchanges are also legal, with the requirement to register with AUSTRAC. Retail crypto trading is permitted.
Vietnam introduced its first crypto licensing regime in 2025, and began accepting applications from crypto exchanges in January 2026. Cryptocurrencies under this framework are considered digital assets or virtual commodities.
The Future of Crypto Regulations
Cryptocurrency regulations are constantly changing as their popularity grows. While some governments like Japan and Australia have taken a progressive stance on cryptocurrencies, some countries are still concerned with the characteristics of blockchain technology and restrict retail trading, such as in the UK.
The main concerns come from a security perspective, with data protection, money laundering, tax evasion and other financial crimes flagged as issues. Also a perceived problem is their volatile nature, with crypto regulations often attempting to shield individuals from the dangers.
Nonetheless, it looks like cryptocurrencies are here to stay with global regulations likely to try and bring order to a mostly unregulated market. How crypto regulations grapple with the decentralised foundation of blockchain technology will be interesting to follow.
Final Word
Cryptocurrency regulations around the world vary, with retail traders facing different restrictions depending on their location. Many crypto regulations and policies are still a work in progress due to the myriad of considerations. As a result, it’s key that traders keep up to date with the latest rules and requirements in their country.