PwC: 42 countries have tightened or started developing crypto regulations since the beginning of the year

What’s new? In 2023, 42 countries tightened crypto regulation or began drafting rules for the industry, PricewaterhouseCoopers analysts said in a new report. These regulatory and legislative initiatives can be categorized into four key areas: the creation of framework laws for cryptocurrencies, regulation of stablecoins, guidelines for company licensing and asset listing, and Travel Rule compliance from the Financial Action Task Force (FATF). The latter mandates crypto firms to share customer data when making transactions.

CoinDesk’s material

What else is known? In this, only 23 countries participated in initiatives in all four areas, among them several EU countries, Japan, as well as the Bahamas. At the same time, the need to comply with FATF recommendations was discussed in 40 countries.

Thus, in November, Turkey announced the tightening of AML standards for the crypto sector to get off the FATF “gray list.” Later, Rosfinmonitoring also urged to accelerate the adoption of crypto regulation, because due to its absence, the FATF may downgrade the country’s rating. The UK obliged crypto firms to comply with the Travel Rule back in September.

The Markets in Crypto Assets (MiCA) Act is gradually coming into force in the EU, which regulates the rules for issuing cryptocurrencies, stablecoins, and other digital assets, as well as the rules for providing related services across the bloc. Although it will not be fully implemented until mid-2026, authorities urged to prepare in advance.

In addition, Spain and Brazil tightened taxation rules for cryptocurrencies at the end of November.

The development of rules for the industry is also underway at the level of international organizations. For example, the global securities regulator IOSCO published recommendations for controlling the work of crypto companies. The document covers such aspects as conflicts of interest, market manipulation, insider trading, and fraud, as well as storage and protection of client assets. In turn, the Bank for International Settlements (BIS) proposed to toughen requirements for the issuers of stablecoins applying for preferential regulation.