Global Trends in Cryptocurrency Regulation: An Overview
Xihan Xiong, Junliang Luo
TL;DR
This paper addresses the fragmentation of global cryptocurrency regulation by constructing a comprehensive taxonomy to classify regulatory stances, approaches, and measures across all countries. It analyzes how jurisdictions differ in bans, regulation, and harmonization efforts, revealing that at least 71 countries remain unregulated and that NFT and DeFi remain largely unregulated. Through case studies of the United States, European Union, United Kingdom, China, and India, it highlights how major economies regulate cryptoassets, the use of existing frameworks versus bespoke regimes, and the ongoing need for clearer definitions and oversight. The findings underscore the urgency of international cooperation and harmonization to reduce regulatory arbitrage, close gaps in stablecoins, NFT, and DeFi regulation, and balance innovation with consumer protection and financial stability.
Abstract
Cryptocurrencies have evolved into an important asset class, providing a variety of benefits. However, they also present significant risks, such as market volatility and the potential for misuse in illegal activities. These risks underline the urgent need for a comprehensive regulatory framework to ensure consumer protection, market integrity, and financial stability. Yet, the global landscape of cryptocurrency regulation remains complex, marked by substantial variations in regulatory frameworks among different countries. This paper aims to study these differences by investigating the regulatory landscapes across various jurisdictions. We first discuss regulatory challenges and considerations, and then conduct a comparative analysis of international regulatory stances, approaches, and measures. We hope our study offers practical insights to enhance the understanding of global trends in cryptocurrency regulation.