A Review of the Year's Significant Regulatory Developments in the Global Crypto Market

The year 2024 is particularly significant and critical for global blockchain regulation, as the regulatory framework for the cryptocurrency industry is initially being refined

2024 marks a critical juncture in global blockchain regulation as the regulatory landscape for the cryptocurrency industry is being initially refined and crypto assets integrate into the mainstream financial system.

The year began with a bang as the US Securities and Exchange Commission (SEC) approved the first Bitcoin and Ethereum exchange-traded funds (ETFs) on January 10 and May 23, respectively. This decision marked a 180-degree shift in the SEC's stance and paved the way for the Ethereum ETF to officially start trading on July 23.

These two events served as major milestones in the US crypto investment landscape, with the Bitcoin ETF and Ethereum ETF providing a scalable bridge between traditional finance and cryptocurrencies, and becoming key integration points.

According to SoSoValue data, as of December 23, the total net asset value of the US Bitcoin spot ETF was $105.08 billion, accounting for 5.7% of Bitcoin's market value. The total net asset value of the US Ethereum spot ETF was $12.05 billion, accounting for 2.94% of Ethereum's market value.

The successful launch of these two ETFs has made it possible for more altcoin ETFs, such as Solana, Doge, and XRP ETFs, to be applied for, further promoting the maturity of the crypto asset market.

This year also saw two important bills regarding US crypto regulation. On May 22, the US House of Representatives approved the Financial Innovation and Technology Act of the 21st Century (FIT21), which aims to clearly define cryptocurrencies, classify specific cryptocurrencies to determine whether they are securities or commodities, and decide which government agency (SEC or Commodity Futures Trading Commission CFTC) will regulate them.

However, another regulation, SAB 121, which aimed to overturn accounting standards set for companies that hold cryptocurrencies, was ultimately vetoed by President Biden on June 1. This may change with the new government taking office in the new year and facilitating the adoption of cryptocurrencies by more large companies.

After the US elections, the new government led by Trump is set to usher in a new regulatory model for cryptocurrencies. Trump, who supports cryptocurrencies, has appointed several pro-crypto politicians to key positions in his new government.

For example, on December 5, Trump officially nominated Paul Atkins as SEC chairman. On December 6, Trump announced the appointment of David Sacks as the White House Chief of AI and Cryptocurrency Affairs, marking the first establishment of this position.

On December 23, 29-year-old political newcomer Bo Hines was appointed as the executive director of Trump's crypto committee. On December 13, French Hill was elected chairman of the House Financial Services Committee. This series of appointments suggests that the US may adopt more friendly policies in the field of crypto regulation in the future.

In Europe, the EU's Markets in Crypto-Assets Regulation (MiCA) bill established regulatory rules for stablecoin issuers, which took effect on June 30 and was fully implemented on December 30.

MiCA is the first complete regulatory framework from the EU for the crypto industry, particularly providing clear requirements for stablecoin regulation. Although some crypto companies have stated they are not fully prepared, under the increasingly stringent compliance requirements, competition in the European stablecoin market is bound to intensify.

For instance, the unlicensed Tether has already invested in the Dutch company Quantoz and the European stablecoin provider StablR.

Additionally, the UK's Financial Conduct Authority (FCA) has expressed its intention to launch a comprehensive regulatory framework for cryptocurrencies by 2026. A study commissioned by the FCA showed that the holding of crypto assets has grown by 4% over the past two years, with approximately 7 million adults holding crypto assets among the country's roughly 68 million population.

On December 21, the German parliament passed the Financial Market Digitalization Act, which is necessary for the full implementation of the MiCA regulation.

In Hong Kong, four new Virtual Asset Trading Platform (VATP) licenses were granted on December 18, promoting the development of stablecoins in the region.

These licenses were awarded to Cloud Account Greater Bay Area Technology (Hong Kong), DFX Labs, Hong Kong Digital Asset Trading Group, and Thousand Whales Technology, following the earlier approval of OSL Exchange, HashKey Exchange, and HKVAX.

With the addition of these new members, the VATP system in Hong Kong now has eight licensed platforms, facilitating the compliant operation of crypto asset service providers and the stablecoin market development.

On December 6, the Hong Kong government also announced the introduction of a stablecoin bill, which will serve as the foundation for the comprehensive regulation of fiat-backed stablecoins (FRSs) in the territory.

This bill aims to establish a legal framework for the issuance, trading, and redemption of FRSs,