42 Countries Worldwide Participate in Cryptocurrency Regulation Party According to Global Survey in 2023
PwC, a professional services giant, has released a report highlighting the efforts of over 40 countries in crafting legislation, establishing licensing regimes, and setting guidelines for stablecoins in 2023. However, the report also reveals significant inconsistencies and gaps in these regulatory efforts.
The report identifies four key areas that are driving regulatory attention. The first is the creation of stablecoin frameworks, which aim to provide guidelines for the increasingly popular stablecoins that are designed to peg their value to traditional assets like the U.S. dollar. The second focus is on travel rule compliance, which involves implementing the Financial Action Task Force’s travel rule. This rule requires cryptocurrency exchanges to share customer data for transactions that exceed a certain threshold.
The third pillar of focus is licensing, with the aim of establishing licensing regimes for cryptocurrency businesses to ensure compliance and consumer protection. Lastly, there is a need to determine which crypto assets can be traded on regulated exchanges, which is referred to as listings.
The report highlights the uneven engagement of regulations across different countries. Some countries, such as Japan, the Bahamas, and parts of the EU, have taken a comprehensive approach and addressed all four key areas of focus. On the other hand, countries like India, Brazil, and Uganda have focused on only one or two aspects. This disparity reflects the different opinions and approaches that countries have towards regulating cryptocurrencies.
Among the regulations, the FATF’s travel rule emerged as the most widely discussed, capturing the attention of 40 out of the 42 surveyed jurisdictions. However, establishing stablecoin frameworks garnered less interest, with eight countries, including India, Brazil, and Turkey, not even addressing the subject.
Turkey stands out as the only country that has made no progress on any crypto-related initiatives at the national level. This highlights the diverse spectrum of regulatory engagement across the globe.
The report emphasizes the urgent need for greater international cooperation and harmonization in the crypto regulatory landscape. The current patchwork approach creates uncertainty for businesses and hinders the potential for widespread adoption of cryptocurrencies. To achieve a unified framework, it is crucial to reach a consensus on the fundamental nature and risks of cryptocurrencies.
Tags: Crypto Regulations