In 2023, the crypto industry experienced a milestone, with major
jurisdictions such as the EU and the UK tightening their regulatory
frameworks. Duncan Ash, the Head of Strategy at blockchain protection firm
Coincover, discussed the key trends expected to shape the crypto regulatory
landscape in 2024 and how they will impact the evolution of the
industry in the long-term.
“Crypto regulation” itself is somewhat of an oxymoron.
Although built on the principle of peer-to-peer transfer, the market has
gradually moved away from its purist origins as regulators seek greater
oversight. Different jurisdictions are moving at different paces
of reform. The EU is leading the charge, passing its landmark Markets in Crypto
Assets (MiCA) regulation last summer.
The UK has taken a more phased approach and is set to
publish a new regulatory regime this year following its consultation period,
which ended in February 2024. Progress in the US has been much slower, where
the SEC has largely governed through enforcement action and is at loggerheads with the CFTC .
While it remains to be seen exactly what new
regulation may look like and how it will be enforced, it’s inevitable that the
future of crypto lies within far more regulated and supervised parameters. As industry players seek to navigate this transition
in 2024, here are three key trends set to play a central role in shaping the
regulatory landscape:
