2024 has proven to be a year of rapid regulatory and policy changes impacting the cryptoasset space. Regulators around the world have been working to address the opportunities and challenges presented by crypto-assets, creating new regulatory frameworks or updating existing ones.
In this rapidly changing environment, compliance professionals need an accessible and understandable overview of crypto-related regulations and developments that can help them stay informed. This is why at Elliptic we recently published a new report, our Global Crypto Regulation Landscape: 2024 Reviewwhich examines regulatory and policy actions taken this year and provides insight into the impact of these developments as we approach 2025.
The report examines three key trends that have impacted the global crypto regulatory landscape and provides detailed regional timelines for regulatory actions starting in 2024. In this blog, we look at some highlights from the report.
Three key developments in 2024
This year has seen three particularly important developments in the global crypto regulatory landscape. These are :
The initial implementation of MiCA in the EU marked an important turning point for the crypto-asset sector in Europe. This comprehensive and ambitious regulatory framework has been in the works for several years, establishing one of the world’s most robust regulatory regimes for cryptoassets – and it is finally coming to life. From June 30, EU member states began implementing MiCA provisions related to the issuance of stablecoinsand from December 30, MiCA’s requirements for crypto-asset service providers (CASP) will come into force. Therefore, crypto market participants in the EU now face significant regulatory requirements related to consumer protection, prevention of market manipulation, etc.
MiCA’s impact also extends beyond the EU. Because it is a very comprehensive regulatory text, it has in certain cases served as a model for other jurisdictions as they develop their own regulatory frameworks, and this has helped foster the impression that the EU could offer a base for crypto companies seeking regulatory clarity.
The year 2024 also saw significant movement regarding the application of the Travel Rule data sharing requirement to crypto-asset transactions. While the Financial Action Task Force (FATF) – the global standard-setter for anti-money laundering and anti-terrorism financing measures – has noted that many jurisdictions are failing to enforce the rule of travel, PSAPs in certain jurisdictions – like the EU, Singapore and UAE are starting to use solutions to comply with the travel rule when processing crypto transactions.
Another issue that was the subject of a significant process in 2024 was related to the evolution of stablecoin regulations. A number of jurisdictions around the world have begun to roll out or propose regulatory frameworks aimed at providing strict oversight of stablecoin issuers and subjecting them to requirements aimed at ensuring their liquidity and protecting the rights of token holders . As mentioned above, the EU rolled out its requirements for stablecoin issuers in June this year. In Hong Kong, regulators this year created a sandbox initiative for stablecoin issuers to test proposed stablecoin projects, while in a number of other countries, such as the UAE and Singapore, regulatory consultations and stablecoin-related proposals have continued to progress.
Regional developments
In addition to these globally impacting trends, 2024 also saw significant developments occurring at the country level in different regions of the world. Here we summarize some of these key developments, which we describe in detail in the Global Crypto Regulation Landscape Report.
Americas
The primary regulatory and policy issue in the United States in 2024 has been the failure of the U.S. Congress to make significant progress toward passing legislation relating to cryptoassets. Although Congress has made incremental progress in considering crypto-related bills – including the Financial Innovation and Technology for the 21st Century Act (FIT21) – legislative efforts have ultimately remained on point died during an election year. Therefore, the United States remains a challenging environment for cryptoasset companies and financial institutions seeking to engage in cryptoassets, as this legislative void ensures. a persistent lack of regulatory clarity where an aggressive enforcement posture predominates.
One positive aspect that has emerged in the United States has been the infusion of cryptoassets, an issue that has garnered some high-level recognition during the US presidential election campaign, suggesting that the industry has a growing influence on the American political debate.
EMEA
In addition to the aforementioned MiCA implementation in the EU, the EMEA region has seen a number of other significant developments impacting cryptoassets. From December 30, 2024, EU member states will have to apply TRegulations on the transfer of funds to crypto-asset transactionsmaking compliance with the travel rule a requirement for PSAPs across the bloc.
In the UK, the election of a new Labor-led government in July put the brakes on a number of crypto-related initiatives – including proposed legislative changes around stablecoins – that had been put forward by the previous government. At present, it remains unclear whether or when the new UK government will pursue these initiatives.
In the United Arab Emirates, the government continues its efforts to position the UAE as a leader in crypto-asset and blockchain innovation. This included the country’s central bank undertaking testing of cross-border transfers of a central bank digital currency (CBDC) in January 2024, as well as establishing a proposed framework for stablecoin regulations in June.
Turkey too made significant progress This year we made progress on legislation that will provide a comprehensive regulatory framework around crypto.
Asia-Pacific
The biggest news impacting the cryptoasset landscape from the Asia-Pacific region this year came from Hong Kong, where a number of regulatory developments continue to strengthen perceptions of Hong Kong, Asia-Pacific’s Leading Cryptoasset Innovation Hub.
In March, the Hong Kong Monetary Authority (HKMA) announced plans to launch a Regulatory sandbox for stablecoin innovation as it works to finalize a regulatory framework for stablecoins. Sandbox participants were announced in July. In August, the HKMA also announced another regulatory sandboxknown as Project Ensemble, to enable financial institutions to experiment with tokenization of real-world assets.
In Singapore, the Monetary Authority of Singapore (MAS) has authorized Paxos to issue and offer stablecoins in the domestic market when the country’s regulatory framework for stablecoin issuers is finally implemented. In August, the Singapore Parliament passed new legislation strengthening AML/CFT measures, including those applying to crypto-assets, to ensure alignment with FATF standards.
Elliptic Global Crypto Regulatory Landscape Report
2024 has been a year of major regulatory changes impacting the cryptoasset space. As 2025 approaches, it is essential that compliance professionals understand the events of the past year so they can navigate what lies ahead.
Download your copy of Elliptic’s Global Crypto Regulatory Landscape Report today..
