A recent report by professional services firm PriceWaterhouseCoopers (PwC) reveals that more than 40 countries have made significant strides in advancing regulations and legislation related to cryptocurrencies in the current year. This indicates a global trend towards broader adoption of cryptocurrencies.
The PwC report highlights various initiatives undertaken by these countries to develop regulations and legislation specifically tailored to the cryptocurrency industry. The regulatory efforts primarily focus on four key areas: stablecoin regulation, compliance with the Financial Action Task Force’s travel rule, licensing and listing guidance, and overall cryptocurrency framework development.
While the report recognizes diverse considerations in promoting cryptocurrency adoption, it notes that certain issues have received more attention than others. Out of the 42 countries analyzed, only 23, including Japan, the Bahamas, and several European Union states, have engaged in initiatives across all four focus areas. In contrast, countries like Uganda, India, and Brazil have shown more reserved attitudes, concentrating on just one or two areas within the cryptocurrency industry.
The Financial Action Task Force’s travel rule emerged as the most widely discussed topic among the four focus areas, with 40 out of the 42 jurisdictions addressing the matter. On the other hand, establishing guidelines for stablecoin issuances emerged as the least considered regulatory issue among the countries analyzed.
The report also highlighted that eight countries, including India, Brazil, Turkey, the UAE, and Taiwan, did not address the subject of stablecoin legislation in 2023. Turkey made no progress on any crypto-related initiatives at a national level compared to other countries featured in the report.
PwC noted that while notable advancements have been made in global digital asset regulation, significant progress indicates that there is still much work to be done.
Despite global efforts towards regulating the crypto industry, the U.S. Securities and Exchange Commission (SEC) recently rejected a petition by Coinbase requesting tailored regulations for digital assets. The SEC stated that the requested rulemaking was currently unwarranted, and the petition by Coinbase was denied. This refusal highlights an increasingly adversarial relationship between the regulatory authority and players like Coinbase, as the SEC continues to exercise its existing authority to govern crypto asset securities and police wrongdoing in the industry. Earlier this year, the SEC sued Coinbase for allegedly operating an unregistered cryptocurrency exchange.
