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A recent analysis indicates that the legal utilization of stablecoins for payment purposes was officially recognized in only six nations that enacted pertinent regulations and draft legislation in 2023.
According to the PwC analysis, merely six out of 35 examined countries enacted laws or established regulations to oversee the stablecoin sector in 2023. An additional three regions are anticipated to pass relevant legislation shortly.
Consequently, the Global Crypto Regulation Report 2023 illustrates that this year, the governance of the stablecoin sector was sanctioned, and the corresponding regulatory measures became effective in Japan, Switzerland, the Cayman Islands, Gibraltar, Mauritius, and the Bahamas. Alongside stablecoin regulatory initiatives, these areas also ratified cryptocurrency regulations, anti-money laundering (AML) measures, and travel rule provisions.
The report highlights the progression of legislation that would permit the use of stablecoins as a legal payment method in the countries assessed in 2023 as follows:
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- Process not initiated (40%) — 14 nations, including Denmark, Estonia, France, Germany, Taiwan, and Turkey.
- Process commenced but specific bills not yet released (25%) — nine nations, including Hong Kong, Australia, Singapore, and Italy.
- Pending final legislation (9%) — three nations, specifically the United States, the United Kingdom, and the UAE.
- The country prohibits cryptocurrencies (9%) — three nations, namely China, Qatar, and Saudi Arabia.
It is noteworthy that certain regions, such as France and Germany, already have legislation in place to regulate the cryptocurrency market, AML compliance, and travel rules, yet the establishment of a regulatory framework for stablecoins has not even begun.
Regarding regulatory standards for the cryptocurrency market, the situation is relatively more favorable. Relevant legislation is currently in effect in 14 out of 35 analyzed countries. Citizens of 27 out of 35 nations are required to adhere to AML regulations, and travel rules have been legislatively approved in 15 countries.
As of December 22, the total market capitalization of stablecoins reached $131 billion, and some regulators contend that such a substantial market cannot remain unregulated. In particular, the capitalization of Tether (USDT), whose issuer is actively producing new tokens, is experiencing the most significant growth.
Recently, S&P Global Ratings evaluated the risks associated with stablecoin depegging, while Moody’s analysts developed an AI service capable of forecasting such an occurrence.
Сообщение About 80% of Countries Lack Regulatory Framework for Stablecoins появились сначала на CoinsPaid Media.
