Crypto Regulations in 2023; how does the world see it
The question that seems to be emerging in the decentralized landscape is how the crypto regulatory scenario will evolve in 2023. From the market’s point of view, crypto regulations are expected to gain clarity in 2023 as investors aim to avoid another FTX debacle.
According to PricewaterhouseCoopers, a professional services platform, in 2023 global regulators have stepped up efforts to implement regulatory regimes around digital assets. For traditional financial institutions, a regulatory framework can enable them to enter and explore the digital assets space. In the case of crypto-oriented platforms, global regulations can increase the expansion of regulatory expertise and compliance monitoring based on global standards.
“Global crypto regulation is expected to become clearer and more consistent by 2023. This may include increased oversight and stricter compliance requirements for crypto exchanges and other crypto-related businesses, as well as a focus on preventing illegal activities such as money laundering and terrorist financing,” Sathvik Vishwanath, Co-Founder and CEO, Unocoin, a cryptocurrency exchange, told FE Blockchain.
Market estimates have shown that various countries and financial regulatory authorities intend to expand investor protection policies. Insights from Lionbridge, a translation and interpretation services company, mentioned that Ashley Alder, chairman of the International Organization of Securities Commissions (IOSCO), a global financial organization, spoke about the need to regulate the crypto market in 2023. Since 2021, the International Monetary Fund (IMF), a global financial agency, has made efforts to draft global crypto regulations.
Expectations have also been placed on the upcoming G20 summit, 2023, for the establishment of global crypto standards. The Group of Twenty (G20), an intergovernmental organization, stated that the Financial Stability Board (FSB), the IMF and the Bank of International Settlements (BIS) will soon unveil a draft of global crypto regulations. “I believe that the G20 summit in 2023 provides an opportunity to create a global consensus around crypto regulations led by India. Some of the points that need attention from policy makers are defining crypto as an asset class, regulating fiat-pegged stablecoins, protecting retail investors, licensing regime for crypto exchanges and regulatory oversight for companies involved in digital assets,” Shivam Thakral, CEO, BuyUcoin, a digital asset exchange, highlighted.
According to Chainalysis, a blockchain-based platform, countries such as Vietnam, the Philippines, Ukraine, India, the United States, among others, have clocked the highest crypto adoption rates. Furthermore, future predictions indicate that global crypto regulations will strike a balance between decentralization and centralization of finance. It is assumed that the standards will play an important role in the global economy. “After 2023, we expect that crypto is going to continue to grow and become closer to mainstream culture in the next few years, but fundamentally we are going back to the principles of decentralization and other things after FTX,” Gaurav Dahake, founder and CEO, BitBNS, a cryptocurrency exchange, concluded.
Follow us on TwitterFacebook, LinkedIn
