Recently, several major economies have accelerated their efforts to introduce regulatory policies for the cryptocurrency market to address market volatility and protect investors. With Bitcoin (BTC), Ethereum (ETH), and other major crypto assets experiencing renewed growth in 2024, governments are intensifying their regulatory efforts to balance market expansion with investor protection.
United States: SEC Tightens Scrutiny on Crypto Exchanges
The U.S. Securities and Exchange Commission (SEC) recently announced plans to increase regulatory scrutiny on crypto exchanges, including major players like Coinbase and Binance.US. SEC Chairman Gary Gensler emphasized that many exchanges are offering unregistered securities, posing significant risks to investors.
The SEC has issued subpoenas to multiple exchanges, demanding more details on internal trading records and anti-money laundering (AML) measures. Market experts suggest this could impact the approval timeline for U.S. spot Bitcoin ETFs in the coming months. While the market anticipates that the launch of these ETFs would attract significant institutional capital, regulatory uncertainty has made investors more cautious.
EU: MiCA Legislation Takes Effect, Focus on Stablecoins and DeFi
In November 2024, the European Union officially implemented the Markets in Crypto-Assets (MiCA) regulation, becoming the world's first comprehensive regulatory framework for cryptocurrencies. Under these new regulations, all companies offering stablecoins and crypto asset services within the EU must obtain licenses and adhere to stricter capital requirements and transparency standards.
MiCA imposes especially stringent regulations on stablecoins like USDT and USDC, requiring issuers to hold sufficient capital reserves to manage potential outflows. This policy aims to prevent the financial system from being destabilized by crypto asset volatility and to ensure the security of investors' funds.
Additionally, the EU is placing a strong emphasis on monitoring decentralized finance (DeFi) projects, requiring them to comply with AML regulations. This means that the DeFi sector will face more compliance challenges going forward.
Asia: Hong Kong and Singapore Set Regulatory Examples
In Asia, Hong Kong and Singapore are actively implementing crypto regulatory frameworks. The Hong Kong Securities and Futures Commission (SFC) introduced new policies in October 2024, requiring all platforms offering crypto trading services to obtain licenses. This policy aims to attract more institutional investors and reaffirm Hong Kong’s position as a financial hub in Asia.
Meanwhile, the Monetary Authority of Singapore (MAS) continues to revise its Payment Services Act, focusing on risk management and user protection. MAS also announced plans to impose stricter capital requirements on stablecoin issuers and enhance market transparency.
Market Impact and Outlook
As major economies worldwide roll out crypto regulations, the market is expected to mature further. In the short term, the market may experience volatility due to increased regulatory pressure, especially on DeFi projects and stablecoins. However, in the long term, these measures are expected to attract more institutional capital and promote sustainable growth in the crypto industry.
Analysts predict that if U.S. spot Bitcoin ETFs are approved by Q3, Bitcoin prices could reach $85,000 by the end of 2024. Additionally, the implementation of the MiCA regulation in the EU could set a compliance benchmark for other regions, pushing the global crypto market toward a more transparent and regulated future.