The market value of stablecoins worldwide has reached $130.7 billion and has witnessed significant progress in stablecoin regulations this year. According to PwC’s “2023 Global Cryptocurrency Regulatory Report,” out of the 43 countries analyzed, 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’s (FATF) travel rule. The travel rule requires cryptocurrency service providers, such as exchanges, to share transaction information to prevent money laundering and illegal activities.
Approximately 18% of countries have yet to begin stablecoin regulations, including Bahrain, Brazil, India, Taiwan, and Turkey. However, around 23% of countries, such as Australia, Hong Kong, and Singapore, have started actively promoting the development of stablecoin laws.
However, PwC’s analysis also indicates that some major countries, including the United States, the United Kingdom, and Canada, have not completed stablecoin legislation and a comprehensive cryptocurrency regulatory framework. Additionally, cryptocurrency-friendly countries like Singapore and the United Arab Emirates have adopted most cryptocurrency-related regulations but have yet to establish specific regulations for stablecoins.
In Taiwan, while there have been no specific regulations for stablecoins, there are active efforts to regulate the cryptocurrency industry and establish licensing/registration systems. Currently, Taiwan has only implemented compliance with FATF’s travel rule.
In recent developments, Moody’s and S&P, including other credit rating agencies, have begun researching stablecoins, with Moody’s launching an AI tool specifically for addressing stablecoin decoupling risks. S&P also recently assigned its first official rating to 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 highest market share 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. The report highlights stablecoins as one of the “killer applications” of cryptocurrencies, with the market growing from nearly zero to $137 billion in the past four years, making the coming year an important period for growth.
On the afternoon of the 25th, @whale_alert discovered that Tether had issued an additional 1 billion USDT on the Ethereum network. Although Tether’s CEO stated that this was not an incremental issuance but an authorized but yet-to-be-issued transaction, intended for future issuance requests and on-chain exchange inventory, it sparked discussions in the market about whether the DeFi bull market is coming back.
Read more:
Tether issued an additional 1 billion USDT on Ethereum! Is the DeFi bull market coming back?
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