Significant Global Regulatory Changes Impacting Cryptocurrency This Week
This week brought several major shifts in cryptocurrency regulations across the globe, affecting how the industry functions and innovates.
Overview
Global adoption of cryptocurrencies has sparked significant policy changes influencing the industry’s future. Some measures encourage progress, while others impede innovation.
Key Developments
US Government Shutdown Halts ETF Progress
The lack of consensus among US congressional leaders has led to a shutdown affecting operations, including decisions on crypto-focused ETFs. As agencies operate with limited staff, the SEC’s review of the anticipated ETF applications is stalled.
US Government Shutdown
UK Lifts Ban on Crypto Exchange-Traded Notes
The UK’s Financial Conduct Authority has allowed retail investors access to cryptocurrency ETNs, indicating that the market has matured and can support these products, following a previous ban in 2021.
UK Lifts Ban
Luxembourg’s Sovereign Wealth Fund Invests in Bitcoin ETFs
Luxembourg’s Treasury confirmed a modest investment strategy in Bitcoin ETFs, allocating 1% of its total wealth to demonstrate growing belief in Bitcoin’s potential.
Kenya’s New Crypto Regulation
Kenya’s parliament has approved the Virtual Assets Service Providers Bill, awaiting the President’s endorsement, which will establish a regulatory framework for digital asset service providers.
Kenya Crypto Bill
EU Expands Regulatory Authority
The European Securities and Markets Authority seeks to enhance oversight of cryptocurrency exchanges, aiming for regulatory coherence across member states.
UK Bank Softens Approach to Stablecoins
The Bank of England is reconsidering its current caps on corporate stablecoin holdings, possibly providing exemptions to support liquidity in crypto-related businesses.
With the evolving landscape of cryptocurrency, it’s crucial for regulators to adapt and work collaboratively to ensure both innovation and consumer protection.
