By 2023, 25 countries had enacted legislation.
Disclaimer: This article has been republished with updated information from the PwC Global Crypto Regulation Report 2023, as it previously incorrectly cited the PwC Global Crypto Regulation Report 2022.
The stablecoin industry – or cryptocurrencies like Tether (USDT) and USDC (USDC) – has seen huge growth in the past year, with market value hitting a new all-time high in 2023. With the stable coin growing rapidly, international judgments were rushing. To dominate the market, according to a new report.
As many as 25 countries had a stablecoin law or regulation in 2023, according to the PwC Global Crypto Regulation Report 2023 December 19. These countries include Austria, Bahamas, Denmark, Estonia, Finland, France, Germany, Greece. Japan, Luxembourg, Portugal, Spain, Sweden, Switzerland and others, according to PwC analysis and regulatory review.
Most countries that have enacted Statcoin laws have secured or implemented all other reviewed regulations, including the crypto regulatory framework, licensing or registration, and the Financial Action Task Force Travel Act.
In its new crypto regulation report, professional services firm PwC assessed the state of crypto regulations in a total of 43 countries, including the United States and the United Kingdom.
According to PwC's analysis, countries such as the United States, United Kingdom and Canada are yet to finalize stablecoins legislation and also come up with a regulatory framework for cryptocurrencies. Some hacker-friendly countries like Singapore and the United Arab Emirates have adopted all crypto-related regulations except for stablecoins, according to PwC data.
According to the report, 18 percent of the countries analyzed, or only 8 jurisdictions, have not introduced any stable coin regulations. Such countries include Bahrain, Brazil, India, Taiwan, Turkey and others. 23% of the jurisdictions reviewed, including Australia, Hong Kong and Singapore, have initiated the process of stablecoin regulation and are actively engaged in adopting stablecoin laws.
Related: Stablecoins ‘not secure stores of value' – BIS
Stablecoins are an integral part of the cryptocurrency ecosystem, with Tether stablecoin being the most traded asset on a daily basis. According to data from CoinGecko, Tether's daily trading volume is 23% higher than that of Bitcoin (BTC), reaching up to $34 billion.
Stablecoin market is booming in 2023 due to massive growth of Tether and other stablecoins. Tether's market capitalization topped $90 billion in mid-December 2023, a 36 percent increase since January.
According to data from CoinGecko, the total stablecoin market capitalization hit new historical highs this year, reaching a new record of $131 billion.
According to some analysts, the stable coin will grow even more in the coming years. Bitwise's Ryan Rasmussen believes that by 2024, stablecoins will hold more money than global payments giant Visa.
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