Somalia vs United States
Crypto regulation comparison
Somalia
United States
Somalia has no specific cryptocurrency regulation. The fragmented governance structure makes unified regulation extremely difficult. Mobile money dominates the financial landscape.
The United States has the world's most complex crypto regulatory landscape, with overlapping federal and state jurisdictions. The SEC regulates crypto securities and has pursued enforcement actions against exchanges and token issuers. The CFTC oversees crypto derivatives and considers Bitcoin a commodity. FinCEN applies BSA requirements to crypto exchanges as money service businesses. The IRS taxes crypto as property: short-term gains at income tax rates (10-37%), long-term gains at 0-20%. New 1099-DA broker reporting rules take effect from 2025. Multiple states have their own requirements, with New York's BitLicense being the most stringent.
Key Points
- No specific cryptocurrency legislation
- Fragmented governance limits regulatory development
- Mobile money dominates informal financial system
- Very limited formal financial infrastructure
- No licensing framework for crypto services
Key Points
- SEC regulates crypto as securities under Howey test; major enforcement actions (Ripple, Coinbase, Binance)
- CFTC classifies Bitcoin and Ether as commodities; oversees derivatives markets
- IRS treats crypto as property: short-term gains taxed at 10-37%, long-term (1yr+) at 0-20%
- FinCEN requires exchanges to register as MSBs and comply with BSA/AML requirements
- 1099-DA broker reporting for centralized exchanges effective from tax year 2025
Sources
Sources
- IRS - Digital Assets
- CFTC - Digital Assets
- SEC - Crypto Task Force
- Congress - GENIUS Act (S.1582)
- FinCEN - Mining Ruling (FIN-2014-R001)
- IRS - FAQ on Digital Asset Transactions
- IRS - Capital Gains and Losses Topic 409
- FinCEN - Virtual Currency Guidance (FIN-2013-G001)
- IRS - Digital Asset Reporting and Tax Requirements