A legal framework refers to the set of laws, regulations, and guidelines that govern the use and operation of cryptocurrencies. It outlines the rights and responsibilities of users, exchanges, and other stakeholders involved in cryptocurrency transactions.Different countries approach this framework in various ways. Some have embraced cryptocurrencies, implementing supportive regulations that foster innovation and protect consumers. Others have imposed strict restrictions or outright bans due to concerns regarding fraud, money laundering, and lack of consumer protection.Key components of the legal framework include taxation, anti-money laundering (AML) laws, consumer protection standards, and licensing requirements for exchanges. These elements help ensure safe and transparent practices in the market.As the industry evolves, lawmakers are continually adapting the legal framework to address emerging challenges and opportunities. This dynamic nature necessitates ongoing dialogue between regulators and stakeholders to create a balanced approach that promotes innovation while protecting the public interest.