Regulations for cryptocurrencies, including Bitcoin, are urgently needed, but they are not yet in place. Although Bitcoin is unregulated in the United States, it is covered by the Bank Secrecy Act, which requires service providers to register with FinCEN, implement an AML/CFT program, keep appropriate records, and file reports with appropriate authorities. In the US, the Securities and Exchange Commission has deemed cryptocurrencies to be securities, and digital wallets are subject to securities laws. The Commodity Futures Trading Commission has taken a "do-no-harm" stance and allows cryptocurrencies to trade publicly.

To ensure the safe handling of cryptocurrencies, the International Monetary Fund and the Department of Treasury have issued guidelines. The United States has passed legislation supporting a global decentralized currency, but these guidelines are far from final. Many ICOs have yet to be established, so the process must be transparent and secure. In addition, it's important to note that the U.S. Senate has taken the first step in regulating cryptocurrencies.

Bitcoin is regulated through a mix of laws rather than a single global framework. Because it is decentralised, regulation focuses on how it is used rather than how it operates. Most rules apply to exchanges, brokers, wallets, and payment processors.

Common requirements include anti-money laundering and know your customer checks to prevent fraud, terrorism financing, and illegal activity. Many countries also apply tax rules, treating Bitcoin as property, an asset, or taxable income, depending on use. Consumer protection laws may require transparency, custody safeguards, and clear risk disclosures.

Some jurisdictions regulate Bitcoin under securities, commodities, or payment laws, while others restrict or ban certain activities. Overall, Bitcoin regulation aims to balance innovation with financial stability, user protection, and compliance with existing financial systems.