World Economy and Policy 2025, 2025(1):1

Cryptocurrency Regulation in the US and the Czech Republic: A Comparative Analysis of Enforcement and Effectiveness

Tomáš Brandejský
Prague University of Economics and Business

The article "Cryptocurrency Regulation in the US and the Czech Republic: A Comparative Analysis of En- forcement and Effectiveness" examines the regulatory frameworks in both countries as they address the rising risks of fraud associated with crypto-assets like cryptocurrencies and Non-Fungible Tokens (NFTs). The United States adopts a proactive approach, leveraging multi-agency cooperation and existing legal frameworks to regulate this space, whereas the Czech Republic takes a more conservative stance, awaiting the implementation of EU regulations, notably the Markets in Crypto-Assets (MiCA). This comparative study highlights the strengths and weaknesses of both systems. The U.S. regulatory environment is characterized by adaptability and advanced enforcement tools such as blockchain analytics, but suffers from overlapping authorities and inconsistent legal interpretations. The Czech Republic, though still developing its legal framework, has demonstrated competence in seizing and monetizing fraudulently obtained crypto-assets, although its response times to fraud cases are slower. The article concludes by offering recommendations for the Czech Republic to enhance its regulatory framework, including adopting investigative methods from the U.S. and acting more proactively in the fight against crypto-related fraud. This analysis contributes to the ongoing debate on how to best regulate emerging financial technologies in this rapidly evolving market.

Keywords: Cryptocurrency regulation, NFT fraud, Comparative analysis, Enforcement effectiveness, MiCA Regulation, Blockchain analytics, Investor protection
JEL classification: G28, K24, K42

Published: April 1, 2025  Show citation

ACS AIP APA ASA Harvard Chicago Chicago Notes IEEE ISO690 MLA NLM Turabian Vancouver
Brandejský, T. (2025). Cryptocurrency Regulation in the US and the Czech Republic: A Comparative Analysis of Enforcement and Effectiveness. World Economy and Policy, 2025(1), 1
Download citation
  • BibTeX (.bib)
  • Bookends (.ris)
  • EasyBib (.ris)
  • EndNote (.enw)
  • EndNote 8 (.xml)
  • ISI WoS (.isi)
  • Medlars (.medlars)
  • Mendeley (.ris)
  • MODS (.xml)
  • Papers (.ris)
  • RefWorks (.txt)
  • RefManager (.ris)
  • RIS (.ris)
  • MS Word (.xml)
  • Zotero (.ris)
    • Open full article

    References

    1. Allen, B., Brez, Z., Kalil, C., Kasulis, J., & Mouritsen, S. (2024). DOJ and SEC crypto exchange enforcement in the United States. Globalinvestigationsreview.com. https://globalinvestigationsreview.com/review/the-investigations-review-of- the-americas/2025/article/doj-and-sec-crypto-exchange-enforcement-in-the-united-states
    2. Andhov, A. (2021). Wyoming's Wild West Blockchain Laws and a Start-up Lobby. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.3898451 Go to original source...
    3. Baker, B. (2017). Application of the New York BitLicense to Initial Coin Offerings. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.3319540 Go to original source...
    4. Bartlett, J. (2023). The Missing Cryptoqueen. Ebury Publishing.
    5. Bose, P., Das, D., Gritti, F., Ruaro, N., Kruegel, C., & Vigna, G. (2023). Exploiting Unfair Advantages: Investigating Opportunistic Trading in the NFT Market. ArXiv (Cornell University). https://doi.org/10.48550/arxiv.2310.06844 Go to original source...
    6. Chohan, U. (2018). Bitconnect and Cryptocurrency Accountability. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.3131512 Go to original source...
    7. Dimitris Kafteranis, Huseyin Unozkan, & Umut Turksen. (2023). COMPLIANCE AND ENFORCEMENT CHALLENGES IN TRADING OF NON-FUNGIBLE TOKENS. International Journal of Law in a Changing World, 2(3), 18-51. https://doi.org/10.54934/ijlcw.v2i3.57 Go to original source...
    8. Eakeley, D., Guseva, Y., Choi, L., & Gonzalez, K. (n.d.). CRYPTO-ENFORCEMENT AROUND THE WORLD. Retrieved October 12, 2024, from https://southerncalifornialawreview.com/wp-content/uploads/2021/05/Eakeley-and-Guseva_Final-2021.pdf
    9. Fischer, J. (2024). Reflection of cryptocurrencies in selected areas of criminal law [Master's thesis (Mgr.)]. https://theses.cz/id/7tpslf/
    10. Innocent Chiluwa. (2019). "Truth," Lies, and Deception in Ponzi and Pyramid Schemes. IGI Global EBooks, 439-458. https://doi.org/10.4018/978-1-5225-8535-0.ch023 Go to original source...
    11. Kshetri, N. (2022). Scams, Frauds, and Crimes in the Nonfungible Token Market. Computer, 55(4), 60-64. https://doi.org/10.1109/MC.2022.3144763 Go to original source...
    12. Nolasco Braaten, C., & Vaughn, M. S. (2019). Convenience Theory of Cryptocurrency Crime: A Content Analysis of U.S. Federal Court Decisions. Deviant Behavior, 42(8), 1-21. https://doi.org/10.1080/01639625.2019.1706706 Go to original source...
    13. Plecitý, D. (n.d.). AML REGULATION: Cryptocurrencies and laundering of proceeds of crime. Bankingonline.cz. Retrieved October 19, 2024, from https://fau.gov.cz/files/kryptomeny-a-legalizace-vynosu-z-trestne-cinnosti.pdf
    14. Saha, S., Ahmed Rizvan Hasan, Mahmud, A., Ahmed, N., Parvin, N., & Hemal Karmakar.(2024). Cryptocurrency and financial crimes: A bibliometric analysis and future research agenda. Multidisciplinary Reviews, 7(8), 2024168-2024168. https://doi.org/10.31893/multirev.2024168SEC Declares Bitcoin and Ether as Non-Securities. (n.d.). Cassels. https://cassels.com/insights/sec-declares-bitcoin-and-ether-as-non-securities/ Go to original source...
    15. Spilka, D. (2023, May 16). What does the adoption of cryptocurrencies in the Czech Republic mean from a legal perspective? Legal Space. https://www.pravniprostor.cz/clanky/financni-pravo/co-znamena-prijeti-kryptomen-v-ceske-republice-z-pravniho-hlediska.
    16. Susan Low Bloch, & Jackson, V. Federalism: a reference guide to the United States Constitution. Praeger, An Imprint Of Abc-Clio, Llc.Tan, C. (2024). Rights in NFTS and the flourishing of NFT marketplaces. International Journal of Law and Information Technology, 32(1). https://doi.org/10.1093/ijlit/eaae018 Go to original source...
    17. Trozze, A., Kamps, J., Akartuna, E. A., Hetzel, F. J., Kleinberg, B., Davies, T., & Johnson, S. D. (2022). Cryptocurrencies and future financial crime. Crime Science, 11(1). https://doi.org/10.1186/s40163-021-00163-8 Go to original source...
    18. Zhang, A. R., Raveenthiran, A., Mukai, J., Naeem, R., Dhuna, A., Parveen, Z., & Kim, H. (2019). The Regulation Paradox of Initial Coin Offerings: A Case Study Approach. Frontiers in Blockchain, 2. https://doi.org/10.3389/fbloc.2019.000022. Newspaper articles Go to original source...
    19. Bing, C. (2021, June 7). U.S. seizes $2.3 million in bitcoin paid to Colonial Pipeline hackers. Reuters. https://www.reuters.com/business/energy/us-announce-recovery-millions-colonial-pipeline-ransomware-attack-2021-06-07/.
    20. CTK. (2019, September 5). Court reconsiders bitcoin theft to embezzlement, programmer gets 9 years - iDNES.cz. IDNES.cz. https://www.idnes.cz/brno/zpravy/soud-programator-tomas-jirikovsky-bitcoiny-zpronevera.A190905_121842_brno-zpravy_krut
    21. Davis, D., & Kim, A. (2024, July 9). Ether's Legal Status Clarified? CFTC Scores Win as Court Backs Agency's Commodity Classification. Katten. https://quickreads.ext.katten.com/post/102jcc8/ethers-legal-status-clarified-cftc-scores-win-as-court-backs-agencys-commodity#page=1
    22. Kateřina Vaníčková. (2024, May 4). State sends over 4 bitcoins to auction, starting price exceeds CZK 6 million - iDNES.cz. IDNES.cz. https://www.idnes.cz/zpravy/domaci/stat-majetek-prodej-virtualni-mena-miliony-korun-bitcoin-aukce.A240504_103127_domaci_vank
    23. O'Melveny & Myers LLP. (2024, October 18). The Ever-Shifting Landscape of U.S. Crypto Regulation. OMM.com. https://www.omm.com/insights/alerts-publications/the-ever-shifting-landscape-of-us-crypto-regulation/
    24. Penman, A. (2016, February 10). Here's why hyped-up web currency OneCoin is virtually worthless. The Mirror. https://www.mirror.co.uk/news/uk-news/who-wants-onecoin-millionaire-you-7346558
    25. Úšela, J. (2021, December 10). He has a cult in the company, but he doesn't understand technology, former employees say. We profile the head of the controversial Xixoio company. Deník N. https://denikn.cz/764062/ve-firme-ma-kult-technologii-ale-nerozumi-rikaji-byvali-zamestnanci-prinasime-profil-sefa-kontroverzni-firmy-xixoio/
    26. Yang, Y. (2018, May 29). China prosecutes 98 people, recovers US$268 million in OneCoin cryptocurrency investigation, report says. SCMP.com; South China Morning Post. https://www.scmp.com/tech/article/2148114/china-prosecutes-98-people-recovers-us268-million-onecoin-cryptocurrency
    27. $4 Billion Crypto-Promoter Ordered to Halt Fraudulent Sales. (2022). Texas.gov; Texas State Securities Board. https://ssb.texas.gov/news-publications/4-billion-crypto-promoter-ordered-halt-fraudulent-sales
    28. 5 Ways Fraudsters May Lure Victims Into Scams Involving Crypto Asset Securities - Investor Alert. (2024). Investor.gov; U.S. Securities and Exchange Commission. https://www.investor.gov/introduction-investing/general-resources/news-alerts/alerts-bulletins/investor-alerts/crypto-scamsCFTC Charges Binance and Its Founder, Changpeng Zhao, with Willful Evasion of Federal Law and Operating an Illegal Digital Asset Derivatives Exchange | CFTC. (n.d.). Www.cftc.gov. https://www.cftc.gov/PressRoom/PressReleases/8680-23
    29. Co-Founder Of Multibillion-Dollar Cryptocurrency Scheme "OneCoin" Sentenced To 20 Years In Prison. (2023, September 12). Justice.gov; U.S. Attorney's Office, Southern District of New York . https://www.justice.gov/usao-sdny/pr/co-founder-multibillion-dollar-cryptocurrency-scheme-onecoin-sentenced-20-years-prison
    30. Crypto Fraud Victims Receive Over $17 Million in Restitution from BitConnect Scheme. (2023, Jan. 12). Justice.gov; Office of Public Affairs. https://www.justice.gov/opa/pr/crypto-fraud-victims-receive-over-17-million-restitution-bitconnect-scheme
    31. Emergency Cease and Desist Order (BitConnect), (Texas State Securities Board, Jan. 4, 2018). https://www.ssb.texas.gov/sites/default/files/BitConnect_ENF-18-CDO-1754.pdf
    32. Former Coinbase Insider Sentenced In First Ever Cryptocurrency Insider Trading Case. (2023, May 9). Justice.gov; U.S. Attorney's Office, Southern District of New York. https://www.justice.gov/usao-sdny/pr/former-coinbase-insider-sentenced-first-ever-cryptocurrency-insider-trading-case
    33. Former Coinbase Manager and His Brother Agree to Settle Insider Trading Charges Relating to Crypto Asset Securities. (2023). Sec.gov. https://www.sec.gov/newsroom/press-releases/2023-98
    34. Former Employee Of NFT Marketplace Sentenced To Prison In First-Ever Digital Asset Insider Trading Scheme. (2023, 22 August). Justice.gov; U.S. Attorney's Office, Southern District of New York. https://www.justice.gov/usao-sdny/pr/former-employee-nft-marketplace-sentenced-prison-first-ever-digital-asset-insider
    35. Former Law Firm Partner Sentenced To 10 Years In Prison For Laundering $400 Million Of OneCoin Fraud Proceeds. (2024, January 25). Justice.gov; U.S. Attorney's Office, Southern District of New York . https://www.justice.gov/usao-sdny/pr/former-law-firm-partner-sentenced-10-years-prison-laundering-400-million-onecoin-fraud
    36. Ibehej, J. (2023a). Investment fraud worth more than CZK 1 billion - Police of the Czech Republic. Policie.cz. https://www.policie.cz/clanek/investicni-podvod-za-vice-nez-1-miliardu-korun.aspx
    37. Ibehei, J. (2023b). Charges against persons in connection with the XIXOIO case - Police of the Czech Republic. Policie.cz. https://www.policie.cz/clanek/obvineni-osob-v-souvislosti-s-pripadem-xixoio.aspx
    38. On the possibility for investment funds to invest in cryptoassets. (2021). Czech National Bank. https://www.cnb.cz/cs/dohled-financni-trh/legislativni-zakladna/stanoviska-k-regulaci-financniho-trhu/RS2023-05/.
    39. Media Communication Department. (2024). The government approved the Digital Finance Act | Ministry of Finance. Ministry of Finance. https://www.mfcr.cz/cs/ministerstvo/media/tiskove-zpravy/2024/vlada-schvalila-zakon-o-digitalnich-financich-55549
    40. NOTICE - OneCoin - Financial Supervision Commission. (2015, September 30). Financial Supervision Commission. https://www.fsc.bg/saobshtenie-onecoin/
    41. SEC.gov | BlockFi Agrees to Pay $100 Million in Penalties and Pursue Registration of its Crypto Lending Product. (n.d.). Www.sec.gov. https://www.sec.gov/newsroom/press-releases/2022-26
    42. SEC.gov | SEC Charges Ripple and Two Executives with Conducting $1.3 Billion Unregistered Securities Offering. (2020). Sec.gov. https://www.sec.gov/newsroom/press-releases/2020-338
    43. Up to $5 Million Reward Offer for Information Leading to Arrest and/or Conviction of Cryptocurrency Fraudster Ruja Ignatova - United States Department of State. (2024). United States Department of State. https://www.state.gov/up-to-5-million-reward-offer-for-information-leading-to-arrest-and-or-conviction-of-cryptocurrency-fraudster-ruja-ignatova/
    44. Notice on the presentation of XIXOIO. (2021). CNB.cz; Czech National Bank. https://www.cnb.cz/cs/dohled-financni-trh/ochrana-spotrebitele/upozorneni/Upozorneni-k-prezentaci-spolecnosti-XIXOIO/.
    45. Ministry of Finance warning on the risks of investment tokens | Ministry of Finance of the Czech Republic (2024). Ministry of Finance of the Czech Republic; Department of Financial Markets II. https://www.mfcr.cz/cs/financni-trh/bankovnictvi-a-dohled/platebni-sluzby-a-vyporadani-obchodu/aktuality/2021/upozorneni-ministerstva-financi-na-rizik-437254. Legislation
    46. Commodity Exchange Act of 1936, 7 U.S.C. § 1 et seq. (1936).
    47. Regulation (EU) 2022/2554 of the European Parliament and of the Council of 14 December 2022 on digital operational resilience in the financial sector
    48. Regulation (EU) 2023/1114 of the European Parliament and of the Council of 31 May 2023 on markets for cryptoassets
    49. Chamber of Deputies of the Parliament of the Czech Republic (2024, 3 May). Draft Act on the Digitization of the Financial Market. Chamber of Deputies Print 692. https://www.psp.cz/sqw/historie.sqw?o=9&T=692.
    50. Securities Act of 1933, 15 U.S.C. § 77a et seq. (1933).
    51. Securities Exchange Act of 1934, 15 U.S.C. § 78a et seq. (1934).
    52. U.S. ConstitutionAct No. 253/2008 Coll., on Certain Measures against the Legalization of the Proceeds of Crime and the Financing of Terrorism, as amended
    53. Act No. 256/2004 Coll., on Capital Market Business, as amended.
    54. Act No. 40/2009 Coll., Criminal Code, as amended
    55. Act No. 455/1991 Coll., on Trade Enterprise (Trade Licensing Act), as amended.
    56. Act No. 89/2012 Coll., Civil Code, as amended.
    57. 5. Court decisions and legal actionsComplaint against BitConnect, Satish Kumbhani, Glenn Arcaro, and Future Money Ltd, (U.S. Securities and Exchange Commission, September 1, 2021). https://www.sec.gov/files/litigation/complaints/2021/comp-pr2021-172.pdf
    58. U.S. Supreme Court (n.d.). SEC v. Howey Co., 328 U.S. 293 (1946). Justia Law. https://supreme.justia.com/cases/federal/us/328/293/6. Website
    59. Criminal Division | Crypto Enforcement. (2022, July 5). Www.justice.gov. https://www.justice.gov/criminal/criminal-fraud/crypto-enforcementCrypto Assets. (n.d.-a). Sec.gov; U.S. Securities and Exchange Commission. https://www.sec.gov/securities-topics/crypto-assetsCrypto Assets. (n.d.-b). Investor.gov; U.S. Securities and Exchange Commission. https://www.investor.gov/additional-resources/spotlight/crypto-assets
    60. SEC.gov | Office of Strategic Hub for Innovation and Financial Technology (FinHub). (2023). Sec.gov. https://www.sec.gov/about/divisions-offices/office-strategic-hub-innovation-financial-technology-finhubSEC.gov | Whistleblower Program. (n.d.). Www.sec.gov. https://www.sec.gov/enforcement-litigation/whistleblower-program7. Other sources
    61. XIXOIO a.s. Product terms and conditions of token XIX of XIXOIO a.s., valid from 1 August 2021. https://media.graphassets.com/wH9xgS9GSTiBgk9To4c2Mgr. Tomáš Brandejský is a PhD candidate in his third year at the Prague University of Economics and Business, specializing in financial law and regulation. His research focuses on the legal aspects of cryptocurrency markets, with a particular interest in the prevention of fraud involving cryptoassets and NFTs. As part of the IGS grant project "Prevention of Crypto Asset Fraud and Failure of Related Service Providers in an International Context", he explores regulatory responses to emerging financial technologies, comparing enforcement practices in the US and the Czech Republic.

    This is an open access article distributed under the terms of the Creative Commons Attribution 4.0 International License (CC BY 4.0), which permits use, distribution, and reproduction in any medium, provided the original publication is properly cited. No use, distribution or reproduction is permitted which does not comply with these terms.


    Return to the content