What legal framework applies to cryptocurrency?

The legal framework for cryptocurrency depends on the jurisdiction. Generally, most countries have yet to define clear regulations on cryptocurrencies, but some have begun to regulate the industry. For example, the United States has enacted several laws and regulations to protect investors and prevent illegal activities related to cryptocurrency transactions. Countries like Japan and Australia have taken a more open approach and have enacted laws governing the use of cryptocurrency and providing guidance on tax matters. Other countries, such as France and Germany, have taken a stricter stance, setting up regulatory frameworks to both protect investors and to ensure that taxes are paid by those using cryptocurrency.