Navigating the Global Crypto Landscape with PwC: 2024 Outlook

NavigatingtheGlobalCryptoLandscape withPwC:2024Outlook December2023 PwC|Reporttitle PwC|NavigatingtheGlobalCryptoLandscapewithPwC:2024Outlook RepPowrtCto|NthaevAiguadtintgCothmemGitltoebealCryptoLandscapewithPwC:2024Outlook PwC Contents Reportoverview03 Cryptoregulationataglance04 Jurisdictionalequivalence06 Globalcryptooperations07 Viewsfromglobalstandard-setters09 EUsinglemarketfordigitalassets13 KeyContributors18 Summariesfromselected19 jurisdictions PwCservicesandcapabilities100 2 Thedevelopmentofregulatoryandlegalframeworksinthepastyearhavebeeninstrumentalinrestoringtrustin digitalassets. Themarketresilience,underscoredby apursuitofinnovation,setsthestageforregulatoryframeworks,whichseektobalanceriskwithopportunityandinnovation. Forindustryplayersacrosstheglobe,2024isnotjustaboutweatheringthestorm–it’saboutbuildingafoundationforathrivingecosystem,whereclearregulatoryguidanceactsasthecornerstoneofrenewedstability. MattBlumenfeld Web3&DigitalAssetLead PwCUS Purposeandobjectives ThisisPwC’ssecondannualGlobalCryptoLandscapereport.Thereportprovidesanoverview oftheglobalregulatorylandscape,howtheregulatoryframeworksaredevelopingacrosstheworld,andtheimpactoncryptoandtraditionalfinancialservicesfirms. JurisdictionalEquivalence Thissectionhighlightstheimportantroleofjurisdictionalequivalentinnavigatingglobalcryptoregulations. Globalisationofcryptooperations Thissectionexplainsopportunitiesandchallengeswhichcomewithchoosingtherightjurisdictionforincorporationandbaseofoperations. Viewsfromglobalstandard-setters Thissectionsummarisesrecentdevelopmentsbythekeyglobalstandard-settinginstitutions. EUsinglemarketfordigitalassets/MiCAR ThesesectionsfocusonthesignificantadvancementsindigitalassetregulationattheEuropeanUnion(EU)andjurisdictionallevel. Globalregulatorysummaries Thesectionprovidesanoverviewoftheadvancementsindigitalassetregulationatthejurisdictionallevelglobally. Terminologyusedinthereport Somelocalauthoritieshaveadoptedacatch-allregulatorydefinitiontoincludeall‘digitalassets’asanewformoffinancialinstrument.Othershave implementedmoredetailedregulatorydefinitions,inaccordancewiththedigitalasset’seconomicfunctionemphasisingsubstanceoverform. Theterminologyadoptedincludes,butisnotlimitedto:digitalasset,cryptoasset,virtualasset,digitalsettlementasset,virtualcurrencyandcryptocurrency. Inthisreport,theterminologyandspellingfollowstheoneadoptedbytheauthoritiesintherelevantjurisdiction. Forfurtherdigitalassetsresearch,pleasealsoseePwC’sotherglobalreportspublishedin2023,includingGlobalCBDCIndex&StablecoinOverview,CryptoHedgeFundReportandAnnualCryptoTaxReport(publishedinDecember2023). Thetableprovidesasummaryofdigitalassetlegislative,regulatory,andlicensingstatusasofJanuary2024.ItfactorsintheimplicationsoftheEU'sMarketsinCrypto-AssetsRegulation(MiCAR),whichcameintoeffectinJune2023.Formoreinformation,seejurisdictionspecificpages. RegulatoryFramework Licensing/Registration TravelRule Stablecoins UnitedStates UnitedKingdom Australia Austria Bahamas Bahrain Brazil Bulgaria Canada CaymanIslands Denmark Estonia Finland France Germany Gibraltar Greece HongKongSAR HungaryIndiaIreland IsleofMan Italy Legislation/regulationinplace Signifiesthatcomprehensivecryptolegislations/regulationshavebeenestablished. Activelegislative/regulatoryengagement Indicatesthatthereisongoingactivity,suchasregulatorydiscussions,consultations,orpendingimplementationofcrypto-relatedlawsandregulatoryframeworks. Legislative/regulatoryprocessnotinitiated Impliesthatthejurisdictionhasnotyetstartedformulatingorconsideringspecificcryptoassetlegislationsorregulatoryframeworks. Thetableprovidesasummaryofdigitalassetlegislative,regulatory,andlicensingstatusasofJanuary2024.ItfactorsintheimplicationsoftheEU'sMiCAR,whichcameintoeffectinJune2023.Formoreinformation,seejurisdictionspecificpages. RegulatoryFramework Licensing/Registration TravelRule Stablecoins JapanLatvia Lithuania Luxembourg Malta Mauritius Norway Poland Portugal Qatar Singapore Slovakia SouthAfrica Spain Sweden Switzerland Taiwan Turkey UAE Uganda Legislation/regulationinplace Signifiesthatcomprehensivecryptolegislations/regulationshavebeenestablished. Activelegislative/regulatoryengagement Indicatesthatthereisongoingactivity,suchasregulatorydiscussions,consultations,orpendingimplementationofcrypto-relatedlawsandregulatoryframeworks. Legislative/regulatoryprocessnotinitiated Impliesthatthejurisdictionhasnotyetstartedformulatingorconsideringspecificcryptoassetlegislationsorregulatoryframeworks. Jurisdictionalequivalencestandsforthenotionthattheregulatorystandardsinonejurisdictionarecomparabletothestandardsofanotherjurisdiction.Digitalassetfirmsneedtoconsiderthisearly,tobenefitfromamulti-jurisdictionalstrategy. Meaningandchallenges Theimportanceofjurisdictionalequivalence issignificantfordigitalassetsfirms,asthecomplexandsometimesfracturednatureofexistingregulatoryframeworkscanbedifficulttointerpretand complywith.