Seventeen different countries crack down on Crypto in 2023
Seventeen jurisdictions, covering the majority of global crypto exposure, tightened up regulations in 2023, according to TRM Labs, a blockchain intelligence firm.
We have seen every major standard-setter devote attention to crypto standards in the last year, Angela Ang, senior policy advisor at TRM Labs, told DL News.
As the crypto ecosystem anticipates US regulatory approval for Bitcoin Spot exchange traded funds, the report comes at a pivotal time.
Creating global standards
In 2024, the FATF will be one of the most important international bodies shaping crypto regulation.
FATF lists nations with sketchy money laundering policies on "grey lists" and urges companies and policymakers to be cautious when doing business there. (Vietnam, one of the currencies the channel/blog is watching is also on the "grey list")
FATF found that only a quarter of its 39 members were fully compliant with its anti-money laundering and counter-terrorism financing measures in 2023.
Cryptography rules have also been adopted by other international organizations, like the G20, which comprises the world's 20 biggest economies.
By the end of 2025, the Financial Stability Board will review how well its policy recommendations have been implemented.
DeFi was also recommended by the International Organization of Securities Commissions, which prompted industry backlash.
It is hoped that these international bodies can help harmonize otherwise fragmented policy regimes. Crypto firms would have trouble complying with all the different regimes because of the differences between jurisdictions.
Before MiCA goes live by the end of the year, member states such as France and Germany have updated their own rules.
Optimists hope that this year's comprehensive framework can be completed after a flurry of new laws are introduced in the UK.
Its Financial Conduct Authority and the Bank of England launched the Digital Securities Sandbox on January 8 to promote blockchain development by financial firms.
A barrage of lawsuits has been filed against crypto firms handling alleged unregistered securities in the US.
New regulations were proposed by the Treasury Department to target crypto mixers and sanctioned illicit actors.
As part of its consumer protection rules, Hong Kong introduced a new regime for virtual asset service providers.
According to TRM Labs, countries with full licensing and supervision regimes have lower rates of illicit activity than those with less regulation.
