The market value of stablecoins worldwide has reached $130.7 billion, witnessing significant progress in stablecoin regulations this year. According to PwC’s “2023 Global Cryptocurrency Regulations Report,” out of 43 analyzed countries, 25 countries (58%) have implemented stablecoin regulations, including Austria, the Bahamas, and Denmark.
These countries have mostly implemented comprehensive regulations, including cryptocurrency regulatory frameworks, licensing/registration systems, and compliance with the Financial Action Task Force (FATF) travel rule. The FATF’s cryptocurrency travel rule is a regulatory requirement that requires cryptocurrency service providers (such as exchanges) to share transaction information to prevent money laundering and illicit activities.
Approximately 18% of countries have not yet begun stablecoin regulation, including Bahrain, Brazil, India, Taiwan, and Turkey. About 23% of countries, such as Australia, Hong Kong, and Singapore, have started actively promoting the development of stablecoin laws.
However, PwC’s analysis also points out that some major countries, including the United States, the United Kingdom, and Canada, have not yet completed stablecoin legislation and comprehensive cryptocurrency regulatory frameworks. Additionally, countries friendly to cryptocurrencies, such as Singapore and the United Arab Emirates, have adopted most cryptocurrency-related regulations but have not specifically developed regulations for stablecoins.
In Taiwan, PwC’s analysis shows that Taiwan has not yet started regulating stablecoins. However, Taiwan is actively promoting the regulatory framework and licensing/registration system for cryptocurrencies. Currently, Taiwan has only implemented compliance with the FATF’s travel rule.
The recent development of stablecoins includes the focus on decoupling risks, which is a major concern for investors and regulatory authorities. Moody’s and S&P, including the three major credit rating agencies, have started researching stablecoins. Moody’s has launched an AI tool specifically targeting decoupling risks, while S&P has issued its first official rating for stablecoins.
In S&P’s evaluation, Tether, the largest stablecoin issuer, received a rating of 4 (second-lowest) due to its lack of asset transparency. However, USDT remains the most dominant stablecoin, with a market value of approximately $91.3 billion, accounting for 71.53% of the stablecoin market share, according to CoinGecko data.
A report released by Bitwise, a cryptocurrency asset management company, predicts that funds settled with stablecoins will surpass those settled with Visa. It states that stablecoins are one of the “killer applications” of cryptocurrencies and have grown from almost zero to $137 billion in the past four years, making the coming year an important growth period.
On the afternoon of the 25th, @whale_alert monitoring chain data discovered that Tether issued an additional 1 billion USDT on the Ethereum network. Although Tether’s CEO responded that it was not an incremental issuance but an authorized but yet-to-be-issued transaction for future issuance requests and on-chain exchange inventory, it was enough to spark market discussions about the return of the DeFi bull market.
Related reports:
Tether Issued 1 Billion USDT on Ethereum! Is the DeFi Bull Market Coming Back?
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