What are the legal regulations around cryptocurrencies?

The legal regulations around cryptocurrencies vary depending on the country. Generally, many countries have taken a cautious approach to regulating digital currencies, with some even banning them altogether. In the United States, the Internal Revenue Service (IRS) has classified cryptocurrencies as property, meaning they are subject to capital gains tax. Most other countries are still in the process of determining their stance on cryptocurrencies, but most are taking a measured approach that involves monitoring activity, setting limits for investors, and educating the public about potential risks.