A new study by the Bank for International Settlements (BIS) suggests that cryptocurrencies like Bitcoin have not reduced financial risks but rather amplified them in emerging market economies, leading to potential policy options ranging from bans to regulation.
The Securities and Exchange Commission has approved new rules aimed at increasing transparency and reducing fees for private-equity and hedge funds, posing a significant regulatory challenge to firms like Blackstone and Apollo Global Management.
The United States Internal Revenue Service has proposed regulations for the sale and exchange of digital assets by brokers, aiming to simplify tax filings and prevent tax cheating, with the rules set to go into effect in 2026; meanwhile, several crypto commentators have criticized the new tax reporting rules.
The U.S. Securities and Exchange Commission (SEC) treating a non-fungible token (NFT) as a security for the first time highlights the need for developers to consider regulatory compliance when selling crypto-assets.
Court rulings in the United States are beginning to challenge the Securities and Exchange Commission's stance on digital assets, leading to hopes of a resurgence in the crypto industry in the country.
Crypto asset businesses in the UK may begin withholding certain crypto transfers to comply with the new Travel Rule, which aims to prevent money laundering and terrorist financing activities carried out using cryptocurrencies.
The Securities and Exchange Commission (SEC) may have suffered setbacks in its regulation-by-enforcement approach to the cryptocurrency industry, with the latest ruling in favor of Grayscale Investments potentially paving the way for the emergence of a bitcoin spot exchange-traded fund (ETF); however, the SEC could appeal the decision or find new ways to deny similar applications, and the lack of a regulated exchange for the bitcoin spot market remains a challenge. Despite court challenges, SEC Chair Gary Gensler is expected to continue pursuing his regulation tactics, while Congress and a potential Republican president in 2024 may play a role in shaping the regulatory environment for digital assets.
The London Stock Exchange Group plans to offer blockchain-based trading of traditional financial assets in order to make the buying, selling, and holding of these assets more efficient and transparent, without involving cryptocurrencies.
The rejection of a new bill on cryptocurrency regulation by the Australian Senate reflects the country's cautious approach and leaves the industry without legal guidelines as crypto innovation continues.
The lack of a fully regulated financial market in the US contradicts global economic interdependence, and as a result, the crypto industry is moving offshore rapidly; however, the US government is likely to eventually establish a clear regulatory framework and invest in blockchain R&D, thus strengthening the industry.
A joint policy paper by the IMF and FSB advises against blanket bans on cryptocurrency and instead recommends targeted restrictions and sound monetary policy to mitigate risks, highlighting that global stablecoins pose a greater risk to financial stability than other cryptocurrencies.
Crypto exchange Coinbase plans to focus on non-U.S. markets, including the European Union, the United Kingdom, Canada, Brazil, Singapore, and Australia, due to their clearer crypto laws, as it seeks to expand its operations and establish partnerships with global and local banks and payment providers while ensuring compliance with governance systems. The company also aims to intensify its lobbying and visibility efforts ahead of the EU elections and engage with the G20 to create global crypto standards.
The lack of clear crypto regulations in the US has caused significant issues for the industry, leading to collapses and a weakening of America's position as a financial hub, according to Coinbase CEO Brian Armstrong. He emphasizes the need for clear rules that recognize the innovation potential of the technology while protecting consumers. Armstrong also highlights the potential benefits of Bitcoin exchange-traded funds (ETFs) and Coinbase's role as custodian in many ETF applications.
Indian crypto platforms may attain the status of authorized dealers, similar to banks, under the regulatory framework being developed by the Indian central bank, RBI, based on joint recommendations from the IMF and FSB, potentially resulting in legal legislation within the next five to six months.
U.S. Securities and Exchange Commission Chair Gary Gensler continues to emphasize the importance of crypto companies complying with securities laws, despite recent setbacks in court cases against the industry. Gensler will discuss recent enforcement actions and proposals related to cryptocurrency firms but will avoid discussing ongoing litigation, including high-profile cases against Coinbase and Binance.
The market is underestimating the potential impact and value of Spot Bitcoin ETFs, with analysts arguing that approval would lead to significant financial inflows and buying pressure, and that it is a good time to enter the market and start building a crypto portfolio, despite regulatory challenges. Ethereum could also benefit from a futures-based ETF listing, but there is caution about the SEC potentially classifying ETH as a security. Overall, the global crypto adoption is dependent on market maturity, regulatory intervention, and consistent long-term adoption.
A new report by the European Parliamentary Research Service argues that harmonization in regulation across major jurisdictions is necessary to address regulatory arbitrage and the decentralized nature of crypto assets, with recommendations including enhanced oversight from non-EU regulators to ensure stability and development in the global cryptocurrency market.
Coinbase, the U.S. cryptocurrency exchange operator, may invest more elsewhere if the U.S. cannot get crypto regulation right, raising questions about whether the U.S. is still the primary hub for crypto innovation and development.
Cryptocurrency faces regulatory challenges that could shape its future, but despite these challenges, the industry holds promise with developments such as increased institutional adoption, central bank digital currencies (CBDCs), DeFi innovation, interoperability, and expected regulatory clarity.
Europe is seen as a favorable environment for the cryptocurrency ecosystem due to its regulatory clarity and adoption by institutional players, in contrast to the uncertain regulatory landscape in the United States.
Crypto investment firm CoinShares is optimistic about cryptocurrency regulation in the United States as it enters the market and believes that the US is a global leader in digital asset development.
Institutional involvement in the crypto industry provides regulatory certainty and clarity, forcing regulators to address taxation, compliance, and reporting challenges, benefiting the entire industry and legitimizing digital assets.
Chairmen McHenry and Thompson have released a discussion draft of legislation proposing a statutory framework for digital asset regulation that aims to balance consumer protection and innovation while filling regulatory gaps.
Tokenization, the process of linking assets to crypto tokens on a blockchain, is gaining prominence and attracting attention from regulators and financial firms as it offers investors access to previously inaccessible markets, improved liquidity, and greater efficiency, although it also introduces potential financial stability concerns and risks of transmitting shocks between crypto and traditional financial markets.
Banks will be required to disclose their cryptocurrency holdings as part of new regulations to cut contagion and prevent banking collapses partially caused by the sudden popularity of crypto, according to the Basel Committee on Banking Supervision.
The European Securities and Markets Authority (ESMA) has released a consultative paper seeking input on various aspects of regulation for crypto-assets, including sustainability indicators, trade transparency measures, and record-keeping requirements, with a final report due in June 2024.
Major global cryptocurrency exchanges like Binance and OKX are working to comply with the United Kingdom's new financial promotion regulations to ensure fair and transparent crypto promotions, while some firms have been listed as "non-authorized" for promoting services without permission.
Crypto exchange Bitstamp is in talks with several big European banks to offer cryptocurrency services, indicating that the European Union's regulatory framework is enabling traditional financial institutions to enter the digital asset space, in contrast to the US where regulators are cracking down on crypto.
Wary investors are more likely to be drawn to cryptocurrencies by market-based improvements to safety, such as insurance against theft and loss, than by enhanced government regulation, according to a recent survey.
Coinbase, the largest US crypto exchange, argues that a proposed IRS rule to define crypto brokers and regulate tax payments will threaten the industry and invade Americans' privacy.
The Australian government plans to regulate cryptocurrency exchanges by requiring them to obtain a financial services license from the local financial regulator, aiming to address consumer protection and innovation in the digital asset sector. However, the proposal has received mixed reactions from crypto exchanges in Australia, with some praising the regulation for providing appropriate protections, while others express disappointment as it attempts to fit crypto into existing financial services rules rather than establishing a dedicated framework. The consultation paper is open for feedback until December 1, 2023.
Australia plans to introduce draft legislation on licensing and custody rules for crypto asset providers by 2024, with exchanges given a year to transition to the new regulations, signaling progress towards implementing a crypto regulation policy and potentially requiring licensing for NFT marketplaces as well.
The Australian Treasury has proposed new regulations to regulate cryptocurrency exchanges under existing financial services rules, receiving praise from crypto exchanges for providing regulatory certainty and promoting industry growth and innovation. However, some express concerns about fitting the crypto industry into existing financial services regulation.
Cryptocurrency exchanges and businesses are being attracted to the UAE, Dubai, and Bahrain due to their progressive regulatory approaches, offering regulatory certainty and clarity for the industry.
The crypto industry is actively lobbying Congress for laws that clarify how cryptocurrencies will be regulated, with recent events highlighting the industry's financial support for political campaigns.
Taiwan has introduced a crypto bill to regulate digital assets, with a focus on defining virtual assets, setting operational standards, ensuring customer protection, and allowing for potential regulation of crypto derivatives in the future.
