Stablecoin Markets Surge in 2023 as 25 Countries Implement Related Regulations: PwC Report
Summary:
Following rapid growth in the stablecoin market, highlighted by Tether and USDC, a report from PwC indicates that 25 countries implemented stablecoin laws or regulations in 2023. While countries like US, UK, and Canada are yet to finalize stablecoin legislation, crypto-friendly nations such as Singapore and the UAE have adopted all crypto-related regulations apart from stablecoins. The report suggests that this trend will continue, as the total stablecoin market capitalization hit an all-time high of $131 billion in 2023.
Please note: This article has been refreshed with the latest data from the PwC Global Crypto Regulation Report 2023, as it had previously inaccurately reported information from the 2022 report. The domain of stablecoins, cryptocurrencies similar to Tether (USDT) and USDC (USDC), has experienced exceptional expansion in the past year, attaining record market values in 2023. Given this exponential growth, global jurisdictions are hastily introducing regulations to govern this burgeoning market, as suggested by a recent report.
The PwC Global Crypto Regulation Report 2023, released on December 19, states that 25 countries had implemented some form of stablecoin law or regulation in the year 2023. Countries such as Austria, The Bahamas, Denmark, Estonia, Finland, France, Germany, Greece, Japan, Luxembourg, Portugal, Spain, Sweden, and Switzerland were named in the report following PwC’s evaluation of the regulatory landscape.
Countries introducing stablecoin legislation also implemented most other scrutinized regulations, including a framework for crypto regulation, licensing, registration, and enforcements of the Financial Action Task Force’s Travel Rule.
In delivering their latest analysis of crypto regulations, the professional services company PwC investigated a total of 43 countries, the United States and the United Kingdom included. As per PwC’s findings, countries such as the United States, United Kingdom, and Canada haven’t yet established definitive legislation for stablecoins or finalized a comprehensive regulatory structure for cryptocurrencies. Cryptocurrency-friendly countries like Singapore and the United Arab Emirates, however, have implemented all crypto-related regulations except for those concerning stablecoins.
The report indicates that approximately 18% of the countries evaluated, constituting 8 jurisdictions, have yet to establish any regulations for stablecoins. These countries include Bahrain, Brazil, India, Taiwan, Turkey among others. Meanwhile, 23% of the jurisdictions assessed have begun the process of regulating stablecoins and are actively working to enact laws related to them. These include Australia, Hong Kong, and Singapore.
Stablecoins play a significant role in the cryptocurrency market, with the Tether stablecoin regularly being the most commonly traded asset each day. CoinGecko data shows that the daily trading volumes of Tether are 23% more than those of Bitcoin (BTC), tallying up to $34 billion.
In 2023, the stablecoin market achieved unprecedented growth, accruing billions in value mainly due to the rapid rise of Tether and similar stablecoins. For the very first time, Tether’s market capitalization soared beyond $90 billion in mid-December 2023, marking a growth of 36% since January.
CoinGecko data states that the total stablecoin market capitalization reached new all-time highs this year, hitting a fresh record of $131 billion.
Certain industry analysts predict that stablecoins will continue their upward trend in the following years. Ryan Rasmussen from Bitwise anticipates that stablecoins will facilitate more monetary transactions in 2024 than the global payment behemoth, Visa.
Published At
12/25/2023 3:41:22 PM
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