Stablecoins, also known as cryptocurrencies like Tether and USDC, have experienced tremendous growth in the last year, and in 2023 their market value is expected to reach new all-time highs.A recent article claims that governments over the world are scrambling to control the stablecoin sector due to its explosive growth.According to the PwC Global Crypto Regulation Report 2023, which was released on December 19, as many as 25 nations had stablecoin laws or regulations in place in 2023.According to the PwC study and regulatory evaluation, these nations include Austria, The Bahamas, Denmark, Estonia, Finland, France, Germany, Greece, Japan, Luxembourg, Portugal, Spain, Sweden, Switzerland, and a few more.
All other reviewed legislation, such as a crypto regulatory framework, licensing or registration requirements, and the Financial Action Task Force’s Travel Rule, have also been secured or enforced by the vast majority of countries that have passed stablecoin laws.
The British and American governments were among the forty-three nations in which the professional services firm PwC evaluated the state of crypto legislation for its most recent study.PwC’s report indicates that nations such as the US, UK, and Canada still need to develop a regulatory framework for cryptocurrencies and pass laws pertaining to stablecoins. All crypto-related regulations—aside from stablecoins—have been enacted by several crypto-friendly nations, such as Singapore and the United Arab Emirates, according to PwC data.
The study states that only 8 jurisdictions, or about 18% of the surveyed countries, have not yet enacted any stablecoin rules.Brazil, India, Taiwan, Turkey, Bahrain, and other nations are examples of such nations.Australia, Hong Kong, and Singapore comprise 23 percent of the evaluated jurisdictions where stablecoin regulations have been launched or are actively being adopted.
The Tether stablecoin is the most actively traded asset on a daily basis. Stablecoins are an important component of the cryptocurrency ecosystem.CoinGecko statistics shows that Tether’s $34 billion in daily trading volumes are 23% greater than Bitcoin’s.Because of Tether’s and other stablecoins’ explosive expansion, the stablecoin market has experienced significant growth in 2023, adding billions of dollars in value. In mid-December 2023, Tether’s market value crossed the $90 billion level for the first time, marking a 36% increase from January.The overall market capitalization of stablecoins has increased this year, setting a new record of $131 billion, according to data from CoinGecko.