More than 40 countries have made significant strides in advancing crypto-focused regulations and legislation this year, indicating a growing global trend towards wider cryptocurrency adoption. According to a recent report from professional services firm PriceWaterhouseCoopers (PwC), these countries have undertaken various initiatives to develop regulations and legislation specifically tailored to the cryptocurrency industry.
The PwC report stated that the regulatory efforts are primarily focused on four key areas:
- Stablecoin regulation
- Travel rule compliance
- Licensing and listing guidance
- Overall crypto framework development
The report acknowledged that promoting cryptocurrency adoption involves diverse considerations, but certain issues have garnered 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, lawmakers and regulators in countries like Uganda, India, and Brazil have shown more reserved attitudes, focusing on just one or two areas within the cryptocurrency industry.
The Financial Action Task Force’s (FATF) travel rule emerged as the most widely discussed topic among the four focus areas, with 40 out of the 42 jurisdictions at least addressing the matter. However, 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, in particular, made no progress on any crypto-related initiatives at a national level.
“Notable advancements have been made in global digital asset regulation,” PwC said Tuesday in a report summary. “However, [that] significant progress… indicates that there is still much work to be done.”
Despite the global efforts towards regulating the crypto industry, the Securities and Exchange Commission (SEC) recently rejected a petition by Coinbase requesting the creation of tailored regulations for digital assets. The SEC stated that after careful consideration, the requested rulemaking was currently unwarranted and the petition by Coinbase was denied.
SEC Chair Gary Gensler noted in a statement that the securities regulator already has sufficient authority under current statutes to govern crypto asset securities and police wrongdoing in the nascent industry. The SEC’s decisive refusal to accommodate the crypto industry’s regulatory demands underscores an increasingly adversarial relationship between the watchdog and players like Coinbase. Earlier this year, the agency sued Coinbase for allegedly operating an unregistered cryptocurrency exchange.
