PwC Report: Momentum Builds for Global Crypto Regulation

A new report from professional services firm PriceWaterhouseCoopers (PwC) indicates that over 40 countries are actively advancing crypto-focused regulations. This trend is expected to shape the regulatory landscape for cryptocurrencies in 2023. The ramped-up regulatory activity is an early signal of a possible worldwide embrace of digital currencies. At the same time, governments try to navigate their way through the rapidly evolving digital asset environment.

The PwC report, out Tuesday, identifies four main focus areas that drive regulatory initiatives: stablecoin regulation, travel rule compliance, licensing and listing guidance, and overall crypto framework development. Surely, only 23 countries, including Japan, the Bahamas, and select EU states, have ventured into initiatives across all focus areas showcasing varied enthusiasm for crypto adoption.

Among the four focal points, the Financial Action Task Force’s travel rule has emerged as the most widely discussed, with 40 out of the 42 jurisdictions addressing this crucial matter. However, stablecoin regulation remains the least discussed regulatory issue among nations, with as many as eight countries, including India, Brazil, and Turkey, staying silent.

Notably, the report points out some countries like Uganda, India, and Brazil that focus on only one or two regulatory areas, showing cautious or reserved attention to the blossoming digital asset industry. On the other hand, Turkey is the only country in this report. It has yet to make any national progress toward any cryptocurrency initiative.

The PwC report emphasizes the global advancements in the regulations of digital assets across jurisdictions. However, it also underscores the ongoing work that still needs to be done. Despite achieving a brilliant advancement, there is a lack of a standard and extensive regulatory framework for digital assets worldwide.

Congressional Action Urged in FSOC’s Crypto Initiative

The Financial Stability Oversight Council (FSOC) is a key financial stability watchdog in the United States. It has emphasized the urgent need for Congressional intervention. The goal is to regulate the cryptocurrency market and address potential risks.

The FSOC’s annual report reiterates its worries about the uncontrolled nature of the cryptocurrency sector. It calls for Congressional action to grant regulatory authority over crypto spot markets and establish a framework for stablecoin issuers. As a result, the regulatory environment for digital assets becomes complex and dynamic, as contrasted with other countries’ approaches. The U.S. continues to experience cases of calls for Congressional intervention at the same time.

Congress still needs to pass legislation to address concerns the Financial Stability Oversight Council (FSOC) has about crypto, a new report by the intragovernmental group said Thursday.
FSOC, a financial stability watchdog composed of the heads of most major U.S. financial…

— Trace smith (@D5_trace) December 15, 2023

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