The stablecoin sector experienced remarkable growth over the past year, reaching an all-time high market value in 2023. Despite this rapid expansion, a new report reveals that only a few countries have addressed legal regulations for the stablecoin market. The 2023 PwC Global Crypto Regulation Report, published on December 19, indicates that only six countries have established stablecoin legislation or regulations.
According to PwC’s analysis and legal regulatory assessment, these countries include the Bahamas, the Cayman Islands, Gibraltar, Japan, Mauritius, and Switzerland. The report shows that these jurisdictions not only implemented stablecoin laws but also enforced other regulations, including Anti-Money Laundering (AML) rules and the Financial Action Task Force’s travel rule.
The cryptocurrency services firm’s report assessed the status of crypto regulations in 35 countries, including major economies like the United States and the United Kingdom. PwC’s analysis found that these countries have yet to finalize legislation for stablecoin companies and have not addressed a regulatory framework for cryptocurrencies.
The report indicates that 40% of the analyzed countries have not taken any steps toward stablecoin regulation. Among these are Denmark, Estonia, France, Germany, Taiwan, and Turkey. While 25% of the jurisdictions reviewed, including Hong Kong and Italy, have initiated or stalled stablecoin regulatory processes, only about 9% of countries, including the United Arab Emirates, are actively addressing stablecoin laws.
Furthermore, PwC’s report highlights three countries—China, Qatar, and Saudi Arabia—that have banned the use of cryptocurrencies.
Stablecoin projects are an integral part of the cryptocurrency ecosystem, with Tether being the most traded asset on a daily basis. According to CoinGecko, Tether’s daily trading volume is 23% higher than Bitcoin‘s, amounting to $34 billion. The stablecoin market surged in 2023, reflecting billions of dollars in value due to sharp growth in Tether and other stablecoin projects. Tether’s market value surpassed $90 billion for the first time in mid-December 2023, marking a 36% increase since January, and the total stablecoin market value reached a new record high of $131 billion this year.