Welcome to the dynamic world of crypto, where surprises abound and every moment holds something new to explore. This report from Coinpedia is your comprehensive guide to understanding the latest developments in Crypto adoption and regulations in January 2024. We’ve distilled complex information into a simplified analysis, using top-notch resources for your ease of understanding.
Key Crypto Regulations: A Global Look
We compiled a regional report on crypto regulations, which were in the news in January 2024.
2.1. USA
The United States of America announced a new framework for the regulation of crypto-assets in 2022. It empowered existing market regulators such as the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC). The SEC has been seen to regulate the crypto sector. The lawsuits and complaints against Ripple, Coinbase, Binance and many other crypto products and services took place in 2023. In 2023, a district court of appeal ruled in favor of Ripple. It ruled that Ripple’s sale of XRP were only securities offerings when sold to institutions and not when sold on exchanges. Another landmark decision was made in November 2023, which vacated the Commission’s refusal of Grayscale’s application to convert its Bitcoin ETF Trust to an ETF holding Bitcoin. The Commission was ordered by the court to reconsider the decision. In January 2024, the first Bitcoin Spot ETF was approved! US SEC approved 11 spot Bitcoin ETFs, including offerings from prominent financial institutions such as BlackRock, Vanguard, Franklin Templeton, Valkyrie, Fidelity and Invesco on January 10, 2024.
2.2. China
Despite China’s ban on crypto trading and mining since 2021, Chinese investors continue to pour millions into cryptocurrencies daily. The rise of brick-and-mortar crypto exchanges in Hong Kong gained momentum in January 2024.
23. Canada
Canada is set to introduce new regulations for crypto donations. On 23 January 2024, Judge Richard Mosley said that there was no national emergency to justify invoking the Emergency Act and the decision to do so was very unreasonable. Crypto mining has been seen to flourish in 2023. It also continues the same trajectory in Canada in 2024!
2.4. United Kingdom
UK’s new crypto advertising rules, regulated by the Financial Conduct Authority, came into the picture in October 2023. These rules cause complications for some crypto firms, thus causing their exit from the space. The new rules talk about a cooling off period for first time investors to make the marketing of crypto products more transparent and accurate. Fintech firm Revoult suspended its trading for UK businesses in January 2024. The payments giant has also suspended its crypto activities in the UK until early 2024. Progress on the UK crypto-regulatory front was seen in December 2023, when the United Kingdom introduced new regulations to oversee the country’s Digital Securities Sandbox, which came into effect on January 8, 2024. It aims to encourage the adoption of facilitate digital assets across financial markets with monitoring from the Bank of England and FCA. With the UK general election around the corner, Rishi Sunak’s ambition to create a global Web3 hub in the UK could be scuppered. Exchanges such as Coinbase, Crypto.com and Gemini have implemented risk assessments and financial tests for their UK users in response to the new regulations that require the crypto companies to inform users of the risks associated with crypto trading and advertise themselves responsibly.
2.5. Japan
Japan plans to revolutionize its corporate crypto tax, eyeing 2024 reform to leave long-term holders out of taxes on unrealized gains. Amid Bitcoin’s volatility issues, Japan has been seen looking for new web3 rules to stabilize trade. Mercari Japan, the e-commerce giant, has announced Bitcoin payment integration by June 2024. This move reflects Japan’s favorable crypto regulatory environment.
2.6. Singapore
The Monetary Authority of Singapore (MAS) recently issued final guidelines for crypto payment providers. MAS mandates that retail investors pass a risk awareness assessment before investing. Digi FT received key regulatory approvals from MAS, becoming the first exchange with AMM. MAS will receive expanded powers in 2024. The provisions of the Financial Institutions (Miscellaneous Amendments) Bill 2024 will expand MAS’s power to issue directions to capital markets service licensees conducting unregulated business. The FIMA Bill will allow MAS to issue written directions on standards to be observed when CMSL holders conduct unregulated business.
2.7. In the
With less than a week left for the final presentation of the interim budget by Union Finance Minister Nirmala Sitharaman, experts are predicting a well-defined framework for crypto operations and tax structure to address crypto issues in India. ICRA anticipates potential changes in the Interim Union Budget for 2025. The removal of securities transaction tax, double taxation on dividends and a regulatory framework by the government to include participation in the crypto market.
Crypto adoption in January 2024
3.1. Adoption by cities
Here is a rank-wise analysis of how different cities of the world have given cryptocurrency a shot! New York leads the way, closely followed by London. We can praise the regulatory environment here which is well in tune with the overall crypto atmosphere.
Four South African cities are among the 2024 most crypto-friendly cities in the world! New York stands out as the most crypto-ready city with a total score of 85.85/100, proving its status as a financial powerhouse. Singapore emerges as Asia’s crypto leader in early 2024. London now follows New York at 84.15/100 due to its supportive regulatory framework. Los Angeles is the city with the most crypto ATMs in the world. However, Tokyo is the least crypto-ready among the top 50 cities due to its cautious regulatory scenario. Cape Town, Pretoria, Johannesburg and Durban were ahead in South Africa.
Cape Town (Rank 11): Crypto Readiness Score: 60.45
Crypto ownership: Cape Town ranks 11th globally and shows growing interest with a score of 47.36 in crypto ownership. Employment opportunities: Abundant jobs in the crypto sector, at 88.21, contribute to Cape Town’s crypto-ready status. Crypto opportunities: With a moderate number of crypto opportunities, Cape Town balances innovation with a solid regulatory foundation. Legal Readiness: Cape Town’s ability to balance progress with regulatory strength makes it a crypto-ready city.
Johannesburg (Rank 15): Crypto Readiness Score: 57.83
Crypto ownership: Ranked 15th globally, Johannesburg shows a strong crypto ownership score of 23.43, showcasing a vibrant community of crypto enthusiasts. Employment opportunities: With a robust labor market in the crypto sector, Johannesburg is positioning itself as a hub for crypto-related employment in 2024. Legal framework: Johannesburg’s perfect score of 100.00 in the legal environment underlines its supportive regulatory landscape for cryptocurrencies. Business acceptance: Despite moderate business acceptance (6.06), Johannesburg’s collective strengths position it as one of the most crypto-ready cities worldwide.
Durban (Rank 43): Crypto Readiness Score: 53.97
Crypto Ownership: Durban, ranked 43rd globally, is on the rise with a score of 17.15 for crypto ownership. Employment opportunities: Robust employment opportunities, with a score of 93.64, add to Durban’s potential in the crypto space. Legal Environment: Durban boasts a perfect score of 100.00 in a supportive legal environment. Business Acceptance: In the early stages, with a score of 0.00 for crypto acceptance, Durban holds promise for future growth in the digital finance landscape.
3.2. Crypto ownership pattern (gender)
2024 is well welcomed by women compared to men. Here’s a breakdown of how the percentage has changed compared to last year.
2023:
2024:
3.3. Impact of Bitcoin ETF on Adoption
56% of current crypto owners are optimistic that market prices will rise in 2024. They think that 2024 can be excellent because of the arrival of ETF finally!
3.4. Cryptocurrency Adoption Report
Among the top 5 widely adopted, Bitcoin and Ethereum led, with Dogecoin close behind.
3.5. Institutional Adoption
The approval of the Bitcoin Spot ETF is certainly a turning point. This will broaden and deepen liquidity in the market. 2024 could see growth of tokenization markets, with Goldman Sachs launching its tokenization platform, GS DAP. AI and blockchain convergence is leading to mass crypto adoption by institutions.
Closure
From regulatory shifts to rising adoption, 2024 is shaping up to be a pivotal year for cryptocurrency. Although there are still challenges, the momentum is undeniable. As you navigate this ever-evolving terrain, remember: knowledge is power. Stay tuned, stay curious and get ready to see the next phase of the crypto revolution unfold!
Disclaimer for Uncirculars, with a Touch of Personality:
While we love diving into the exciting world of crypto here at Uncirculars, remember that this post, and all our content, is purely for your information and exploration. Think of it as your crypto compass, pointing you in the right direction to do your own research and make informed decisions.
No legal, tax, investment, or financial advice should be inferred from these pixels. We’re not fortune tellers or stockbrokers, just passionate crypto enthusiasts sharing our knowledge.
And just like that rollercoaster ride in your favorite DeFi protocol, past performance isn’t a guarantee of future thrills. The value of crypto assets can be as unpredictable as a moon landing, so buckle up and do your due diligence before taking the plunge.
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