Regulatory attitudes towards cryptocurrencies are constantly evolving, often at a slower pace than the cryptocurrency industry itself. Institutions and the general public will not take cryptocurrency work seriously without clear and comprehensive regulations. The industry also suffers from a wide range of scams, phishing and hacking that have no legal impact. This enhances the audacity of criminals and enhances the image of encryption as a playing field for shady characters.
Download the full report with charts and infographics here.
In a new report, Cointelegraph Research provides a general overview of stablecoins, regulatory assessments of non-fungible tokens (NFTs), and developments beyond the end of 2021. Updated weekly, a new regulatory database covers all the updates in the industry. .
NFTs and stablecoins catch dormant policymakers.
The NFT boom of 2021 shook governments and international organizations. With more than $9 billion in NFT sales on Ethereum, the emergence of a well-defined regulatory environment for NFTs is critical to the sustainable development of the market going forward. The NFT market recorded $1.5 million in illegal activity in the fourth quarter of 2021 alone. This represents a detrimental trend that, while small compared to the volume of money laundering occurring elsewhere, could continue through 2022.
In the US and UK, authorities have failed to introduce clear guidelines for NFTs, and there is some uncertainty about how to classify asset classes. custom.
Cointelegraph Research records all regulatory events worldwide every week in its regulatory database.
Access the Cointelegraph Research Regulations database here.
Similar to NFTs, stablecoins have left policymakers on the alert. Stablecoin supply has increased fivefold, from $26 billion in early 2021 to $164 billion by the end of 2021. Growth continues through 2022, with total supply increasing by 6.8% in the first six weeks of the year.
The Financial Stability Board, an international body that coordinates the efforts of financial regulators worldwide, has urged action on stablecoins in their 2020 and 2021 reports, and July 2022 is set to return to national jurisdictions. We have set a preliminary deadline for establishing a regulatory framework. Stablecoin regulation is further complicated by the advent of collateralized, decentralized US dollar pegged stablecoins such as TerraUSD (UST), which lacks a “one-size-fits-all” solution for regulators.
The government is in a chase
The report also details the developments throughout H1 2022. Another sector covered is central bank digital currencies. With CBDCs taking place in more than 91 countries around the world, governments are unlocking the potential of digital currencies. The future is going on, and legislators have important work to do to enact regulations that allow mainstream adoption of digital assets while spurring innovation.
Although CBDCs may enhance tax compliance and better track financial transactions, they can seriously hamper cryptocurrency adoption, and some decentralized digital currencies will be fully phased out as government agencies benefit from the stability and trust that inspires many consumers. It can also be substituted.
Anyone interested in crypto, blockchain and the future of the industry can read this report and have access to a regulatory database that tracks the latest developments. Cryptocurrency needs regulation, but it has to be the right kind. With forward-looking regulation that allows progress to be made and governments promote innovation, cryptocurrencies can truly deliver on their promise of a more equitable future and renewal of the financial system.
This article is provided for informational purposes only and does not constitute investment advice or investment analysis or solicitation of the sale of financial instruments. In particular, this document is not intended as a substitute for individual investment or other advice.