Monthly Cryptocurrency Adoption and Regulation Report: January 2024

The post Monthly Cryptocurrency Adoption and Regulation Report: January 2024 appeared first on Coinpedia Fintech News

The cryptocurrency space is full of surprises. There is always something new to figure out. This Coinpedia report contains everything you need to know about cryptocurrency adoption and regulation for January 2024. We’ve compiled this brief analysis using the best resources available.

Important Cryptocurrency Regulations for January 2024

We have compiled regional reports on cryptocurrency regulation in the news in January 2024.

2.1. USA

• The United States has announced a new framework to regulate cryptocurrency assets in 2022.
• This empowered existing market regulators such as the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). The SEC appears to be regulating the cryptocurrency sector.
• Lawsuits and complaints against Ripple, Coinbase, Binance, and many other cryptocurrency products and services have emerged in 2023.
• In 2023, the local appeals court ruled in Ripple’s favor. It has been determined that Ripple’s XRP sales are securities offerings only when sold to institutions and not when sold on exchanges.
• Another landmark decision was made in November 2023, overturning the Commission’s rejection of Grayscale’s application to convert its Bitcoin ETF Trust into an ETF holding Bitcoin.
• The commission was ordered by the court to reconsider its decision.
• In January 2024, the first Bitcoin spot ETF was approved!
• The US SEC approved 11 spot Bitcoin ETFs on January 10, 2024, including proposals from well-known financial institutions such as BlackRock, Vanguard, Franklin Templeton, Valkyrie, Fidelity, and Invesco.

2.2. china

• Despite China banning cryptocurrency trading and mining from 2021, more and more Chinese investors are taking advantage of the restrictions to bring millions of dollars into cryptocurrencies every day.
• The emergence of offline cryptocurrency exchanges in Hong Kong became very popular in January 2024.

23. Canada

• Canada is ready to introduce new rules for cryptocurrency donations.
• On January 23, 2024, Justice Richard Mosley said there was no national emergency justifying invoking emergency laws and that the decision to do so was highly unreasonable.
• Cryptocurrency mining appears to be thriving in 2023. The same trajectory will continue in Canada in 2024!

2.4. uk

• The UK’s new cryptocurrency advertising rules, regulated by the Financial Conduct Authority, are due to emerge in October 2023.
• These rules create complexity for some cryptocurrency companies, forcing them to exit the sector.
• The new regulations stipulate a cooling-off period for first-time investors to make the marketing of cryptocurrency products more transparent and accurate.
• Fintech company Revoult ceased trading for UK companies in January 2024. The payments giant has also suspended its cryptocurrency activities in the UK until early 2024.
• Progress on the UK cryptocurrency regulatory front came in December 2023, when the UK introduced new rules for overseeing the country’s digital securities sandbox, which came into effect on January 8, 2024.
• It aims to drive the adoption of digital assets across financial markets, monitored by the Bank of England and the FCA.
• With the UK general election just around the corner, Rishi Sunak’s ambitions to create a global Web 3 hub in the UK may be on hold.
• Exchanges such as Coinbase, Crypto.com and Gemini have implemented risk assessments and financial tests for UK users in response to new regulations requiring cryptocurrency companies to advertise responsibly and inform users of the risks associated with cryptocurrency trading.

2.5. japan

• Japan plans to revolutionize corporate cryptocurrency taxation, considering a 2024 reform that would exclude long-term holders from taxes on unrealized profits.
• Amid Bitcoin’s volatility issues, Japan appears to be exploring new Web 3 rules to stabilize transactions.
• E-commerce giant Mercari Japan announced Bitcoin payment integration by June 2024. This move reflects Japan’s favorable cryptocurrency regulatory environment.

2.6. Singapore

• The Monetary Authority of Singapore (MAS) recently published final guidance for cryptocurrency payment providers.
• MAS stipulates that retail investors must pass a risk perception assessment before investing.
• Digi FT has received key regulatory approval from MAS, becoming the first exchange with AMM.
• MAS will receive expanded powers in 2024. Provisions in the Financial Institutions (Miscellaneous Amendments) Bill 2024 extend MAS powers to issue directions to capital markets services license holders carrying on unregulated business.
• The FIMA Bill allows MAS to issue written guidance on the standards CMSL holders must deal with when conducting unregulated business.

2.7. India

• With less than a week to go before Union Finance Minister Nirmala Sitharaman’s final presentation of the interim budget, experts are speculating a well-defined framework for cryptocurrency operations and tax structures to address India’s cryptocurrency woes.
• ICRA anticipates potential changes in the interim Union Budget 2025. A government regulatory framework that includes the elimination of security transaction taxes, double taxation of dividends, and participation in cryptocurrency markets.

Cryptocurrency adoption in January 2024

3.1. Adoption by City

Here is a ranked breakdown of how cities around the world have invested in cryptocurrency! New York leads the way, followed closely by London. We can praise the regulatory environment, which is well aligned with the overall cryptocurrency climate.

• 4 Cities in South Africa Among the Most Crypto-Friendly Cities in the World in 2024!
• New York stands out as the most cryptocurrency-ready city with an overall score of 85.85/100, proving its status as a financial powerhouse.
• Singapore will emerge as Asia’s cryptocurrency leader by early 2024.
• London follows New York closely at 84.15/100 due to its supportive regulatory framework.
• Los Angeles is the city with the most cryptocurrency ATMs in the world.
• However, Tokyo is ranked as the least cryptocurrency-ready city among the top 50 cities due to its cautious regulatory scenario.
• In South Africa, Cape Town, Pretoria, Johannesburg and Durban led the way.

Cape Town (ranking 11) : Crypto Readiness Score: 60.45

• Cryptocurrency Ownership: Cape Town, ranked 11th globally, is gaining interest in cryptocurrency ownership with a score of 47.36.
• Employment Opportunities: The abundance of job opportunities in the cryptocurrency sector, with a score of 88.21, contributes to Cape Town’s cryptocurrency-ready status.
• Cryptocurrency Events: Cape Town, which hosts a decent number of cryptocurrency events, balances innovation with a solid regulatory base.
• Legal preparation: Cape Town’s ability to balance development and regulatory intensity makes it a cryptocurrency-ready city.

Johannesburg (ranking 15) : Crypto Readiness Score: 57.83

• Cryptocurrency Ownership: Johannesburg, ranked 15th globally, boasts a strong cryptocurrency ownership score of 23.43, demonstrating a vibrant community of cryptocurrency enthusiasts.
• Employment Opportunities: A strong job market in the cryptocurrency sector positions Johannesburg as a hub for cryptocurrency employment in 2024.
• Legal Framework: Johannesburg’s perfect score of 100.00 in Legal Environment highlights its supportive regulatory environment for cryptocurrencies.
• Business Approved: Despite moderate business acceptance (6.06), Johannesburg’s collective strength positions it as one of the most cryptocurrency-ready cities in the world.

Durban (Rank 43) : Crypto Readiness Score: 53.97

• Cryptocurrency Ownership: Durban, ranked 43rd globally, is on the rise for cryptocurrency ownership, scoring 17.15.
• Employment Opportunities: Strong employment opportunities, with a score of 93.64, contribute to Durban’s potential in the cryptocurrency sector.
• Legal environment: Durban boasts a perfect score of 100.00 for its supportive legal environment.
• Business Approved: With a cryptocurrency acceptance score of 0.00 in its early stages, Durban promises future growth in the digital financial landscape.

3.2. Cryptocurrency ownership patterns (by gender)

2024 is the year when women are welcomed more than men. Let’s analyze how the ratio has changed compared to previous years.

2023:

2024:

3.3. Bitcoin ETF Impact on Adoption

56% of current cryptocurrency owners are optimistic that market prices will rise in 2024. They think 2024 is going to be great with the arrival of ETFs finally!

3.4. Cryptocurrency Adoption Report

Among the top five widely adopted, Bitcoin and Ethereum lead the way, with Dogecoin close behind.

3.5. institutional adoption

• The approval of a Bitcoin spot ETF would certainly be a turning point. This will expand and deepen market liquidity.
• The tokenization market may grow in 2024 as Goldman Sachs launches its tokenization platform, GS DAP.
• The convergence of AI and blockchain is leading to large-scale adoption of cryptocurrencies by institutions.

conclusion

The analysis is a compilation of comprehensive data from the most trusted resources across the cryptocurrency industry. We have summarized the basics of all development activities conducted during the month of January 2024.