Important Trends to Know from the Global Crypto Adoption Report for 2024
Welcome to the exciting realm of cryptocurrency, where surprises abound and every moment offers something new to discover. This comprehensive report from Coinpedia will guide you through the latest developments in Crypto Adoption and Regulations in January 2024. We have distilled complex information into an easily understandable analysis, utilizing top-notch resources for your convenience.
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Crucial Crypto Regulations: A Global Overview
We have compiled a detailed report on crypto regulations by region, highlighting the news from January 2024.
2.1. USA
In 2022, the United States of America introduced a new framework for regulating crypto assets. This framework empowered existing market regulators such as the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC). The SEC took on the responsibility of regulating the crypto sector.
In 2023, there were lawsuits and complaints against Ripple, Coinbase, Binance, and many other crypto products and services. However, in a landmark decision, a district court of appeals ruled in favor of Ripple, determining that Ripple’s sale of XRP was considered securities offerings only when sold to institutions and not when sold on exchanges.
Another significant decision was made in November 2023 when the court ordered the Commission to reconsider its denial of Grayscale’s application to convert its Bitcoin ETF Trust to an ETF that holds Bitcoin.
In January 2024, the first Bitcoin Spot ETF was approved! The US SEC approved 11 spot Bitcoin ETFs, including offerings from prominent financial institutions such as BlackRock, Vanguard, Franklin Templeton, Valkyrie, Fidelity, and Invesco on January 10, 2024.
2.2. China
Despite China’s ban on crypto trading and mining since 2021, Chinese investors continue to invest millions of dollars daily into cryptocurrency. In January 2024, brick-and-mortar crypto exchanges in Hong Kong gained traction.
2.3. Canada
Canada is preparing to introduce new regulations for crypto donations. On January 23, 2024, Justice Richard Mosley stated that there was no national emergency justifying the invocation of the Emergencies Act, and the decision to do so was highly unreasonable. Crypto mining thrived in Canada in 2023, and this trend continues in 2024.
2.4. United Kingdom
The UK implemented new crypto advertising rules regulated by the Financial Conduct Authority in October 2023. These rules have caused complications for some crypto firms, leading to their exit from the space. The new rules include a cooling-off period for first-time investors to ensure transparent and accurate marketing of crypto products.
In January 2024, fintech firm Revolut suspended its trading for UK businesses. Additionally, they paused their crypto activities in the UK until early 2024. The UK made progress on the crypto regulatory front in December 2023 when new regulations were introduced for supervising the nation’s Digital Securities Sandbox. These regulations came into effect on January 8, 2024, with monitoring from the Bank of England and FCA. However, with the UK’s general election approaching, Rishi Sunak’s ambition of creating a global Web3 hub in the UK may be put on hold.
Exchanges like Coinbase, Crypto.com, and Gemini have implemented risk assessments and financial tests for their UK users in response to the new regulations. These regulations require crypto companies to inform users about the risks associated with crypto trading and advertise responsibly.
2.5. Japan
Japan plans to revolutionize its corporate crypto taxation by considering a 2024 reform that would exempt long-term holders from taxes on unrealized gains. Amid Bitcoin’s volatility issues, Japan is seeking new web3 rules to stabilize trading. The e-commerce giant Mercari Japan announced the integration of Bitcoin payments by June 2024, highlighting Japan’s favorable crypto regulatory environment.
2.6. Singapore
The Monetary Authority of Singapore (MAS) recently issued final guidelines for crypto payment providers. MAS mandates that retail investors must pass a risk awareness assessment before investing. Digi FT became the first exchange with AMM and received key regulatory approvals from MAS. In 2024, MAS will receive expanded powers through the Financial Institutions (Miscellaneous Amendments) Bill. This bill will allow MAS to issue written directions on standards that should be followed by capital markets service license holders conducting unregulated business.
2.7. India
As the Union finance minister, Nirmala Sitharaman, prepares to present the interim budget, experts anticipate a well-defined framework for crypto operations and tax structure in India. Potential changes in the Interim Union budget for 2025 include the removal of security transaction tax, double taxation on dividends, and the implementation of a regulatory framework by the government to facilitate participation in the crypto market.
Crypto Adoption in January 2024
3.1. Adoption by Cities
Here is a ranking analysis of how different cities around the world have embraced cryptocurrency. New York leads the pack, closely followed by London. This demonstrates the regulatory environment’s alignment with the overall crypto atmosphere.
Four South African cities are among the most crypto-friendly in the world in 2024. New York stands out as the most crypto-ready city, with a total score of 85.85/100, solidifying its status as a financial powerhouse. Singapore emerges as Asia’s crypto leader in the beginning of 2024. London closely follows New York with a score of 84.15/100, thanks to its supportive regulatory framework. Los Angeles boasts the most crypto ATMs in the world. However, Tokyo ranks as the least crypto-ready among the top 50 cities due to its cautious regulatory environment. Cape Town, Pretoria, Johannesburg, and Durban are leading the way in South Africa.
Cape Town (Rank 11): Crypto Readiness Score: 60.45
Crypto Ownership: Cape Town ranks 11th globally, showcasing a growing interest in crypto ownership with a score of 47.36.
Employment Opportunities: Abundant job opportunities in the crypto sector contribute to Cape Town’s crypto-ready status, scoring 88.21.
Crypto Events: Hosting a moderate number of crypto events, Cape Town balances innovation with a solid regulatory foundation.
Legal Readiness: Cape Town’s ability to balance advancement with regulatory strength makes it a crypto-ready city.
Johannesburg (Rank 15): Crypto Readiness Score: 57.83
Crypto Ownership: Ranking 15th globally, Johannesburg demonstrates a strong crypto ownership score of 23.43, showcasing a vibrant community of crypto enthusiasts.
Employment Opportunities: With a robust job market in the crypto sector, Johannesburg positions itself as a hub for crypto-related employment in 2024.
Legal Framework: Johannesburg’s perfect score of 100.00 in the legal environment underscores its supportive regulatory landscape for cryptocurrencies.
Business Acceptance: Despite moderate business acceptance (6.06), Johannesburg’s collective strengths position it as one of the most crypto-ready cities globally.
Durban (Rank 43): Crypto Readiness Score: 53.97
Crypto Ownership: Positioned 43rd globally, Durban is on the rise with a score of 17.15 for crypto ownership.
Employment Opportunities: Robust job opportunities contribute to Durban’s potential in the crypto space, scoring 93.64.
Legal Environment: Durban boasts a perfect score of 100.00 in a supportive legal environment.
Business Acceptance: In the early stages, with a score of 0.00 for crypto acceptance, Durban holds promise for future growth in the digital finance landscape.
3.2. Crypto Ownership Pattern (Gender)
In 2024, women show a greater interest in cryptocurrency compared to men. Here is an analysis of the percentage change compared to the previous year.
2023:
2024:
3.3. Impact of Bitcoin ETF on Adoption
56% of current crypto owners are optimistic that market prices will increase in 2024, and they believe that the arrival of ETFs will further enhance the market.
Source: Security.org
3.4. Cryptocurrency Adoption Report
Source: Security.org
Among the top 5 widely adopted cryptocurrencies, Bitcoin and Ethereum lead the way, with Dogecoin closely following.
3.5. Institutional Adoption
The approval of the Bitcoin Spot ETF marks a significant turning point that will enhance liquidity in the market. In 2024, we may see the growth of tokenization markets, with Goldman Sachs launching its tokenization platform, GS DAP. The convergence of AI and blockchain is leading to widespread adoption of cryptocurrencies by institutions.
Conclusion
From regulatory changes to increasing adoption, 2024 is poised to be a pivotal year for cryptocurrency. While challenges persist, the momentum is undeniable. As you navigate this ever-evolving landscape, remember that knowledge is power. Stay informed, stay curious, and get ready to witness the next stage of the crypto revolution unfold!
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