January 2024’s Monthly Report on Crypto Adoption and Regulation
The world of cryptocurrency is constantly evolving, and there are always new developments to keep up with. This report from Coinpedia aims to provide you with everything you need to know about crypto adoption and regulations in January 2024. We have gathered information from top-notch sources to create this concise analysis for you.
Important Crypto Regulations in January 2024
We have compiled a region-wise report on the crypto regulations that made headlines in January 2024.
2.1. USA
In 2022, the United States introduced a new framework for regulating crypto assets, giving power to existing market regulators such as the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). The SEC has taken on the responsibility of regulating the crypto sector. In 2023, there were lawsuits and complaints against Ripple, Coinbase, Binance, and other crypto products and services. In a landmark decision, a district court of appeals ruled in favor of Ripple, stating that Ripple’s sale of XRP was considered a securities offering only when sold to institutions, 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. Finally, in January 2024, the first Bitcoin Spot ETF was approved by the US SEC. They approved 11 spot Bitcoin ETFs, including offerings from financial institutions like 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, a growing number of Chinese investors are finding ways to invest in cryptocurrencies by navigating the restrictions. In January 2024, brick-and-mortar crypto exchanges in Hong Kong became popular.
2.3. Canada
Canada is preparing to introduce new regulations for crypto donations. In January 2024, Justice Richard Mosley stated that there was no national emergency that justified the invocation of the Emergencies Act, and the decision to do so was 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 in October 2023, regulated by the Financial Conduct Authority. These rules have caused complications for some crypto firms, leading to their exit from the industry. The rules include a cooling-off period for first-time investors to ensure transparency and accuracy in the marketing of crypto products. Fintech firm Revolut suspended its trading for UK businesses in January 2024 and paused its crypto activities in the UK until early 2024. In December 2023, the UK introduced new regulations for supervising the nation’s Digital Securities Sandbox, which came into effect on January 8, 2024. This aims to facilitate the adoption of digital assets in financial markets under the monitoring of the Bank of England and FCA. However, with the UK’s general election approaching, Rishi Sunak’s ambition to create a global web 3 hub in the UK may be put on hold. Exchanges like Coinbase, Crypto.com, and Gemini have implemented risk assessments and finance tests for their UK users in response to the new regulations, which require crypto companies to inform users about the risks associated with crypto trading and advertise responsibly.
2.5. Japan
Japan is planning to reform its corporate crypto taxation in 2024 to exclude long-term holders from taxes on unrealized gains. Japan is also looking for new web 3 rules to stabilize crypto trading amid Bitcoin’s volatility. The e-commerce giant Mercari Japan announced that it will integrate Bitcoin payments by June 2024, reflecting 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 an Automated Market Maker (AMM) to receive key regulatory approvals from MAS. In 2024, MAS will receive expanded powers through the Financial Institutions (Miscellaneous Amendments) Bill, allowing them to issue directions to capital markets service license holders conducting unregulated business. The FIMA bill will enable MAS to issue written directions on standards for unregulated businesses conducted by CMSL holders.
2.7. India
Experts are anticipating a well-defined framework for crypto operations and tax structure to address crypto issues in India in the final presentation of the interim budget by the Union finance minister, Nirmala Sitharaman. Potential changes in the Interim Union budget for 2025 include the removal of security transaction tax, double taxation on dividends, and the introduction of a regulatory framework for 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 cryptocurrencies. New York takes the lead, closely followed by London. These cities have a regulatory environment that aligns well with the overall crypto atmosphere. Four South African cities, including Cape Town, Pretoria, Johannesburg, and Durban, are among the most crypto-friendly cities in the world.
Cape Town (Rank 11):
– Crypto Readiness Score: 60.45
– Crypto Ownership: Ranked 11th globally, Cape Town shows a growing interest in crypto ownership.
– Employment Opportunities: Abundant job opportunities in the crypto sector contribute to Cape Town’s crypto-ready status.
– Crypto Events: Hosting a moderate number of crypto events, Cape Town strikes a balance between innovation and regulatory strength.
– 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: Johannesburg ranks 15th globally and showcases 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 supportive regulatory landscape for cryptocurrencies is reflected in its perfect score of 100.00 in the legal environment.
– Business Acceptance: Despite moderate business acceptance, Johannesburg’s collective strengths make it one of the most crypto-ready cities globally.
Durban (Rank 43):
– Crypto Readiness Score: 53.97
– Crypto Ownership: Durban is on the rise, positioned 43rd globally, with a growing interest in crypto ownership.
– Employment Opportunities: Robust job opportunities contribute to Durban’s potential in the crypto space.
– Legal Environment: Durban boasts a perfect score of 100.00 in a supportive legal environment.
– Business Acceptance: Although in the early stages, Durban holds promise for future growth in the digital finance landscape.
3.2. Crypto ownership pattern (Gender)
In 2024, women show a higher level of interest in cryptocurrency compared to men. Here is an analysis of how the percentage has changed compared to the previous year.
2023:
– Women: 
– Men: 
2024:
– Women: 
– Men: 
3.3. Impact of Bitcoin ETF on Adoption
Approximately 56% of current crypto owners are optimistic that market prices will increase in 2024. They believe that the arrival of ETFs will have a positive impact on the market.
3.4. Cryptocurrency Adoption report
Among the top five widely adopted cryptocurrencies, Bitcoin and Ethereum are leading the way, with Dogecoin closely behind.
3.5. Institutional Adoption
The approval of the Bitcoin Spot ETF is a significant turning point that will enhance liquidity in the market. In 2024, the tokenization market is expected to grow, with Goldman Sachs launching its tokenization platform, GS DAP. The convergence of AI and blockchain is driving mass adoption of cryptocurrencies by institutions.
Conclusion
This analysis is a compilation of comprehensive data from reliable sources in the crypto industry. We have provided an overview of the key developments that took place in January 2024.