The question that seems to loom around the decentralised landscape is how crypto regulatory scenario will pan out in 2023. From the market’s purview, crypto regulations are expected to get clarity in 2023, as investors aim to avoid another FTX debacle.
According to PricewaterhouseCoopers, a professional services-based platform, global regulators in 2023 have stepped up their efforts to implement regulatory schemes around digital assets. For traditional financial institutions, a regulatory framework can enable them to enter and explore the digital assets’ space. In terms of crypto-oriented platforms, global regulations can enhance expansion of regulatory expertise and compliance oversight based on global standards.
“Global crypto regulation is expected to become clearer and consistent in 2023. This could include increased oversight and stricter compliance requirements for crypto exchanges and other crypto-related businesses, as well as a focus on preventing illegal activities such as money laundering and terrorist financing,” Sathvik Vishwanath, co-founder and CEO, Unocoin, a cryptocurrency exchange, told FE Blockchain.
Market estimates have shown that different countries and financial regulatory authorities intend to expand investors’ protection policies. Insights from Lionbridge, a translation and interpretation services company, mentioned that Ashley Alder, chairman, International Organisation of Securities Commissions (IOSCO), a global financial organisation, spoke on the necessity of regulating crypto market in 2023. Since 2021, International Monetary Fund (IMF), a global financial agency, has made attempts to draft global crypto regulations.
Expectations have also been laid on the upcoming G20 summit, 2023, for creation of global crypto standards. The Group of Twenty (G20), an intergovernmental organisation, stated that Financial Stability Board (FSB), IMF, and Bank of International Settlements (BIS) will soon unveil a draft around global crypto regulations. “I believe that the G20 summit 2023 offers an opportunity for creating a global consensus around crypto regulations led by India. Some of the points which need attention from policymakers are defining crypto as an asset class, regulating fiat
As per Chainalysis, a blockchain-based platform, countries such as Vietnam, Philippines, Ukraine, India, United States, among others, have clocked highest crypto adoption rates. Moreover, future predictions indicate that global crypto regulations will create balance between decentralisation and centralisation of finance. It is believed that the standards will play an important role in global economy. “Post 2023, we expect that crypto is going to keep growing and become closer towards mainstream culture over the next few years, but fundamentally we are going back to the tenets of decentralisation and other things post FTX,” Gaurav Dahake, founder and CEO, BitBNS, a cryptocurrency exchange, concluded.