Time flies when you are having fun as they say. Crypto has came a long way since last few years. It has started climbing the market through the centralized adoption. And now there are legal actions being taken on regulating the crypto and digital assets.
In 2023, crypto has turned from illegal and ban worthy fake asset to the legal asset which has now being inlcuded into the SPOT ETF and the variety of mutual funds which are pegged to the bitcoin price. Lot of good things happened to crypto industry.
So let's dive into the events that are happening in the world of crypto regulation and policies.
Stablecoins Adoption and AML Policies
USA has not adopted the CBDC as of yet, however Tether, USDC and FDUSD are pegged to the USD. And these stablecoins regularly have clashes with the SEC.
China has created it's own CBDC and there are pilots of USD pegged stablecoins in circulation in china through USDC partnership. And same would be deployed into taiwan.
EU, India, Dubai too are going through the CBDC pilots along with the regulation policies which would be revised regularly as per the IMF rules and the regulation in order to fight money laundering and FATF blacklist in near future.
South american nations like Argentina has made the crypto legal tender and are accepting the USDC for the local transactions. And the taxes are also self reported. Which goes to show the acceptance the adoption of crypto.
CBDC Pilots and Final releases in 2024
2023 was all about the CBDC sandbox and also variety of the test pilot of the crypto currency. This happened in EU, India and most of the african nation like uruguay, nigeria, south africa and many others. The CBDCs are also going on development in the South american region too. However expect 2025 before they can get into the consumer hands.
CBDC won't be replacing the cash and the coins. However consideirng more people making use of the mobile to pay the bills, you can expect the CBDC to be used in everyday usage for paying small item bills and there would be option to fund cards etc. Lot of options once the CBDC gets into the DEX and swaps.
Legal NFTS, Digital Custody and the Asset Market
Ripple labs has made software that would be used by many digital markets which would allow people to hold, give the custody and also lock and release the assets which would have digital form of the real world asset. And this would create a market of it's own.
Digital custody is new market where the real world asset which are turned into digital NFT or so gets stored. And it would be same like locker except it's digital. And this would be new asset source for the banks and the asset management companies.
Asset market like say NFT market for the variety of the sources would be getting the regulation and the policy update too. So the things like audio, video and other PDF if sold through such market they would be going through the same regulations policies like any other legal tender.
Ban and the shutting down of exchange is now thing of the past. In 2023, the license system have been implemented and also each nation requires the crypto exchanges to be compliant of the legal policies where the consumers are accessing that site. In 2023, a lot of things happened, lot of scams busted but now we are moving towards the better side of the crypto history.