Crypto Rules Tightening: 80% Trying To Cut Illicit Uses
In 2023, a wave of stricter crypto asset regulation swept across the globe, following the collapse of FTX and the subsequent collapse of digital assets.
TRM Labs reports that over 80% of the 21 jurisdictions reviewed have increased oversight of the sector. This could help restore faith in crypto markets and reduce financial crime.
Anti-money laundering rules have been found to correlate with lower rates of illicit crypto activity. Virtual asset service providers in jurisdictions with mandatory registration or licensing regimes have less exposure to high-risk counterparts.
2023 also saw a surge in licensing for crypto firms, with the EU passing its Market in Crypto Assets (MiCA) legislation covering 450 million people across 27 countries.
New licensing frameworks were launched in Hong Kong and South Korea, while Germany, South Africa, and Spain registered many new crypto firms or unfurled licenses.
(With inputs from Shikha Singh)
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