Regulation of the Crypto Market in 2024: A Global Shift

It's no secret that interest in cryptocurrencies has grown in many countries in 2024. In this piece, we'll look at the reasons behind the trend and examine the needs of several nations in relation to cryptocurrency.

Reasons for the Growing Interest in Cryptocurrencies

Many nations started to reevaluate their views on cryptocurrencies and the regulations governing them in 2024. Potential causes included the difficulties associated with transacting internationally with currencies like the dollar and euro, as well as the US government's acceptance of Bitcoin and Ethereum spot exchange-traded funds. Furthermore, Bitcoin and other cryptocurrencies may be one of the instruments used in some nations to advance their economies.

This year's US acceptance of the first cryptocurrency exchange-traded fund (ETF) marked a sort of acknowledgment of cryptocurrencies as an asset class on par with more established exchange-traded products like bonds or stocks. Politicians' discourse on the blockchain industry as a whole has also evolved, and this has become a major agenda item ahead of the US presidential election in November.

Both Donald Trump and Kamala Harris, the US presidential contenders, have expressed support for the growth of the digital asset market in one form or another, and cryptocurrency corporations are spending tens of millions of dollars on the campaign.

The US Leading the Crypto Market

This is probably caused by the growth of the sector as a whole as well as the quantity of cryptocurrency owners worldwide. By the end of 2023, one in five Americans in the US were reportedly crypto owners. In addition to being a sizable absolute number, some analysts predict that this group will influence upcoming political, social, and cultural developments.

Donald Trump, a former and a future president and Republican contender, has declared his goal to establish the United States as the world's greatest cryptohub, emphasizing the significance of having precedence over China.

Restrictions in China

There are still limitations on crypto in China, even though trading in digital assets has been permitted in Hong Kong since 2022 for both corporations and individual traders, and the local regulator approved crypto ETF even before the US.

Following the implementation of restrictions on speculative cryptocurrency transactions by the Chinese government in 2017, some of the biggest cryptocurrency exchanges at the time had to close down. Authorities have also imposed restrictions on industrial mining within the nation since 2021.

But the global acceptance of cryptocurrencies could also lead Beijing to lessen regulatory pressure in China's mainland. China's former Deputy Minister of Finance, Zhu Guangyao, has advocated for further research on cryptocurrencies and related adjustments to global policy.

Japan’s Evolving Crypto Regulations

Japan, where cryptocurrencies have been accepted as payment since 2017, is to reconsider how it would regulate the sector. The Financial Services Agency of the nation will take into account the possibility of reclassifying cryptocurrencies as financial instruments, which would open the door to more advantageous taxes within the nation.

Argentina’s New Crypto-Friendly Policies

With the election of Javier Milei as president at the end of 2023, Argentina's official crypto policy has undergone a transformation. Milei has openly embraced Bitcoin and views it as a vital weapon in the battle against the corruption and inefficiencies of centralized financial institutions.

Since the end of 2023, the nation has already enacted a number of policies that support cryptocurrencies. Among these are the exemption from a new 15% tax on cryptocurrencies that were previously unreported and the opportunity to use cryptocurrencies as payment in contracts.

A segment of the Argentine population views cryptocurrency as a means of protecting themselves from inflation. According to Forbes, locals don't speculate; instead, they only utilize cryptocurrency exchanges to purchase USDT stablecoins. Argentina is home to 2.5 million of the 130 million users of the top 55 cryptocurrency exchanges worldwide. The top five platforms in the nation are Bitget, HTX, BingX, eToro, and Binance.

Conclusion

2024 has seen a dramatic change in the way that the world regulates cryptocurrencies as countries reevaluate their positions on digital assets. While China continues to impose restrictions—though it may do so in the future—the United States is spearheading the movement with growing political backing and the approval of cryptocurrency exchange-traded funds (ETFs). Under its new president, Argentina has welcomed cryptocurrency, while Japan is looking at favorable regulatory adjustments. Cryptocurrencies are positioned to play a significant role in the global economy and financial innovation as the globe advances toward wider adoption.

SimpleSwap reminds you that this article is provided for informational purposes only and does not provide investment advice. All purchases and cryptocurrency investments are your own responsibility.