A recent study reveals that the legal use of stablecoins as a means of payment was formalized in only six countries that approved relevant regulations and draft laws in 2023.
According to the PwC study, only six out of 35 reviewed countries passed laws or established regulations to control the stablecoin market in 2023. Another three jurisdictions are expected to approve relevant legislation in the near future.
Thus, the Global Crypto Regulation Report 2023 shows that this year, the regulation of the stablecoin market was approved and the relevant regulatory ordinances came into force in Japan, Switzerland, Cayman Islands, Gibraltar, Mauritius, and the Bahamas. In addition to stablecoin regulatory bills, these regions also approved crypto regulations, anti-money laundering (AML) regulations, and travel rule regulations.
The report indicates that the development of bills that would allow the use of stablecoins as a legal means of payment in the countries analyzed in 2023 was as follows:
- Process not initiated (40%) — 14 countries, including Denmark, Estonia, France, Germany, Taiwan, and Turkey.
- Process started but specific bills not yet published (25%) — nine countries, including Hong Kong, Australia, Singapore, and Italy.
- Pending final legislation (9%) — three countries, namely the United States, the United Kingdom, and the UAE.
- The country prohibits cryptocurrencies (9%) — three countries, namely China, Qatar, and Saudi Arabia.
Notably, some regions, such as France and Germany, already have bills in place to regulate the crypto market, AML compliance, and travel rules, but the development of a regulatory framework for stablecoins isn’t even initiated.
As for regulatory standards for the cryptocurrency market, the situation is somewhat better. Relevant bills are already in effect in 14 out of 35 analyzed countries. Citizens of 27 out of 35 countries are obliged to comply with AML regulations, and travel rules at the legislative level are approved in 15 countries.
As of December 22, the total cap of the stablecoin market reached $131 billion, and some regulators believe that such a large market can’t remain uncontrolled. Specifically, the capitalization of Tether (USDT), whose issuer is actively minting new tokens, is growing the most.
Recently, S&P Global Ratings assessed the risks of stablecoin depegging, and Moody’s analysts created an AI-service capable of predicting such a possibility.
Сообщение About 80% of Countries Lack Regulatory Framework for Stablecoins появились сначала на CoinsPaid Media.