Digital asset regulation is taking shape globally, with 42 countries engaging in discussions or passing laws in 2023, a report by PricewaterhouseCoopers (PwC) has revealed.
The Global Crypto Regulation Report 2023 delved into the trends that defined digital asset regulations globally, the countries taking the lead in policing the sector, what to expect in 2024, and more.
PwC divided the regulatory efforts into four key focus areas: anti-money laundering and combating the financing of terrorism; stablecoin regulations, the FATF travel rule; and overall framework development.
Of the 42, only a handful implemented new laws in all four areas. They included Japan, a global leader in digital asset regulations, and island nations such as Mauritius, the Bahamas, and the Cayman Islands. Only Gibraltar and Switzerland put new legislation in place across all four areas in Europe.
Some other countries came close, such as the United Arab Emirates, which has new laws for all areas except on stablecoins, where the final legislation is in the pipeline and is pending a few steps.
Overall, stablecoins remained the biggest sticking point for regulators, with AML and CFT the areas where most countries put in place new laws to protect investors and their financial systems.
Major economies continue to lag behind the smaller nations on digital asset oversight. The U.S. and U.K. implemented new laws on AML and the FATF’s travel rule and have pending stablecoin regulations but are nowhere close to an overall regulatory framework.
France and Germany have new laws for all areas except stablecoins. However, MiCA will play a big role for EU countries, with national regulators expected to customize the regional framework to suit their national needs.
CBDCs have lagged behind on the regulatory front, with most surveyed countries still in the early stages.
“While regulation alone will not solve that, clarity across terminology and application of regulation, along with enhancements to risk management capabilities and procedures, is a good starting point,” commented Matt Blumenfeld, PwC’s Web3 and Digital Assets Lead.
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Source: https://coingeek.com/japan-leads-42-countries-discussing-digital-asset-regulation-in-2023-pwc/