Solidus Labs unveils comprehensive, global crypto regulatory index

NEW YORK–(BUSINESS WIRE)–Crypto-native risk monitoring and market integrity leader, Solidus Labs, is launching its first publication of the firm’s Global Crypto Regulation Index (“GCR Index”), which provides a snapshot of where digital asset regulation currently stands, ranking key countries and their approaches to regulation that aim to both protect consumers and encourage innovation.

Solidus’ GCR Index is being introduced at a pivotal time for the industry, as digital asset volatility, market integrity and consumer protection pose major concerns for investors and regulators, and as governments around the world increasingly respond to the evolution of crypto markets through legislation, enforcement. , regulatory and/or policy actions.

“While many would expect leading economies to take the lead in digital asset regulation, many of these countries rely on their existing regulatory regimes, while some smaller countries have been quick to adopt comprehensive frameworks tailored to digital asset markets,” says Kathy Kraninger , VP of Regulatory Affairs at Solidus Labs who previously headed the United States Consumer Financial Protection Bureau. “A key theme in our findings is the consensus that regulators see market manipulation as a core risk and that market surveillance is necessary to protect users, investors and economies.”

Detailed further in the index is a robust methodology behind the ranking, which gives a weighted 0-5 score for each country in the following five categories:

1. The Legal status and environment category assesses whether digital asset entities and participants can openly operate in a country or whether access is restricted in some way (35% weighting).

2. The Regulatory framework category assesses whether the country has a regulated market for digital assets with clear rules and regulatory oversight to ensure consumer protection and facilitate innovation (30% weighting).

3. The Market surveillance and anti-market manipulation rules the category delves deeper into the substance of each country’s regulatory regime, ranking its inclusion of market integrity aspects (15% weighting).

4. The Registration requirements category addresses another aspect of the regulatory regime, assessing licensing and registration processes and requirements (10% weighting).

5. The AML/CFT requirements for service providers of digital assets category assesses a country’s AML/CFT regime (10% weighting).

Based on the GCR index, these are the top 5 countries:

Country (ranking)	Lawful (35%)	Regulation (35%)	Surveillance (15%)	Registration (10%)	AML/CFT (10%)	Total
Bahamas (1)	5	5	5	5	4	4.90
Bermuda (2)	5	5	4	5	4	4.75
Malta (3)	5	5	5	4	3	4.70
Switzerland (4)	5	4	4	5	5	4.55
Serbia (5)	5	4	5	4	4	4.50

In general, the top layer offers clear and comprehensive regulatory frameworks for digital assets that are tailored to meet new and unique challenges and opportunities that apply to these markets. The report sheds light on possible gaps between adoption and regulation, and shows that they do not always go hand in hand, which could potentially pose an increased risk.

“The future of the crypto industry, and all its potential to enable more accessible, transparent and efficient markets, depends on constructive regulation, and the ability of market participants to comply with rules through advanced risk monitoring and compliance programs,” said Asaf Meir, Solidus’ founder and CEO . “We created this report to help our many customers and partners, and the industry as a whole, navigate the rapidly evolving regulatory landscape, leverage the current market slowdown to optimize, and build better and more secure infrastructure that will meet these increasing standards. ”

Even against today’s backdrop in the digital asset space, Solidus’ findings, and insights gleaned from direct discussion with regulators, show that many countries are rapidly developing regulatory regimes tailored to digital assets, but have not yet implemented complete frameworks. Many countries ranked in the middle level initially responded to increasing use of digital assets through enforcement rather than political action. Some of these countries are now moving towards whole-of-government frameworks, although legislative, regulatory and policy initiatives will take time to progress.

Solidus Labs and many other industry participants recognize this sentiment and are accelerating efforts to engage with each other and regulators to promote progressive and constructive regulatory regimes. In February, Solidus Labs initiated and co-founded the Crypto Market Integrity Coalition (CMIC), which now includes Coinbase, Circle, Anchorage Digital, Gemini, Robinhood and 33 other leading firms, to promote market integrity standards.

Solidus Labs

Solidus Labs is the category definer for crypto-native triple T (3T) market integrity solutions – trade monitoring, transaction monitoring and threat intelligence. Our mission is to enable secure crypto trading throughout the investment journey across all centralized and DeFi markets. As a founder of industry-leading initiatives such as the Crypto Market Integrity Coalition and the DACOM Summit, and in everything we do, Solidus is deeply committed to ushering in tomorrow’s financial markets. To learn more, please visit:

Disclosures:

This report has been created based on readily available information and data, to provide a snapshot of where digital asset regulations currently stand. The markets, products and services continue to evolve and regulations evolve to respond. The nature of the report will inevitably include subjective impressions.

The report does not cover countries or jurisdictions where access to regulatory information for digital assets is restricted. Although regulatory information is included for some jurisdictions that do not offer official translations of their regulatory documents in English, the accuracy of this information is subject to the accuracy of the translation.

This report has been prepared for informational and educational purposes only and should not be construed as personal investment advice or legal advice. Although the information provided is believed to be accurate, it may contain errors or inaccuracies. All investments, trades, regulatory and legal actions, speculations or decisions made on the basis of information in this report, expressed or implied herein, are undertaken at your own risk, financial or otherwise. We always recommend that you consult with experienced external experts and/or consultants who can discuss your specific situation.