Regulation
Crypto regulations strengthened in 80% of major jurisdictions in 2023, analysts say
According to data compiled by TRM Labs, approximately 80% of the top 21 jurisdictions, accounting for approximately 70% of global crypto exposure, have increased crypto regulation in 2023.
In a research report published on January 8, blockchain analysis company TRM Laboratories found that nearly 80% of jurisdictions around the world have implemented measures to tighten regulations in the crypto space. Nearly half of these jurisdictions have specifically advanced initiatives to improve consumer protection.
While various jurisdictions prioritize different national goals, TRM Labs analysts found that crypto exchanges operating in countries with established licensing and supervision frameworks exhibit “lower rates of illicit activity than jurisdictions less regulated.
Crypto Regulatory Map | Source: TRM Laboratories
Despite the lack of a comprehensive regulatory framework for cryptocurrencies in the United States, TRM Labs anticipates crucial decisions from federal courts in 2024 on whether specific crypto assets could be considered securities.
“We can also expect enforcement momentum to continue, particularly against mixers and other anonymity-enhancing tools. »
TRM Laboratories
Analysts recognize uncertainties within the decentralized finance space, particularly with regard to issues of responsibility, accountability and the practical exercise of oversight and authority by regulators. While definitive answers to these questions may not surface in 2024, TRM Labs says the year should be seen as a time to “implement and establish benchmarks in the next chapter, hopefully less wild, digital assets.”
US regulators’ current stance on crypto remains unclear, as their previous signals suggested that existing financial laws are still applicable to digital assets. In December 2023, the United States Securities and Exchange Commission (SECOND) explained his refusal to Coinbase Regulation Petitionciting three reasons: existing laws already apply to crypto securities markets, the SEC approaches crypto securities markets through rulemaking, and the need to preserve the Commission’s discretion in establishing regulatory priorities.
Nevertheless, Paul Grewal, chief legal officer of Coinbase said The company is still reportedly trying to get the SEC to abdicate its obligation to determine crypto regulatory standards via another appeal.