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Global Push For Crypto Regulations Gains Momentum: PwC Report

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A new report from professional services firm PriceWaterhouseCoopers (PwC) indicates that over 40 countries are actively advancing crypto-focused regulations and legislation in 2023. This surge in regulatory activity hints at a potential global embrace of cryptocurrencies as governments seek to navigate the rapidly evolving digital asset landscape.

Released on Tuesday, the PwC report identifies four key focus areas driving regulatory initiatives: stablecoin regulation, travel rule compliance, licensing and listing guidance, and overall crypto framework development. Notably, only 23 countries, including Japan, the Bahamas, and select EU states, have ventured into initiatives across all focus areas, showcasing varying levels of enthusiasm for crypto adoption.

Among the four focal points, the Financial Action Task Force’s travel rule has emerged as the most widely discussed, with 40 out of the 42 jurisdictions addressing this crucial matter. Conversely, stablecoin legislation appears to be the least considered regulatory issue among the nations, with eight countries, including India, Brazil, and Turkey, neglecting the subject altogether.

The report spotlights certain nations, like Uganda, India, and Brazil, focusing on just one or two regulatory areas, indicating a cautious or reserved approach to the burgeoning digital asset industry. Turkey, however, stands out as the only country in the report that has made no progress on any crypto-related initiatives at a national level.

PwC’s report recognizes the notable advancements in global digital asset regulation while underscoring the ongoing work required. The findings suggest that despite strides, the world is far from achieving a standardized and comprehensive regulatory framework for digital assets.

FSOC’s Crypto Call For Congressional Action

Meanwhile, in the United States, the Financial Stability Oversight Council (FSOC), a key financial stability watchdog, has emphasized an urgent need for Congressional intervention in regulating the cryptocurrency market.

The annual report from the FSOC reiterates concerns over the unregulated nature of the crypto market and calls for Congressional action to grant regulatory authority over crypto spot markets and establish a framework for stablecoin issuers. However, the contrasting approaches among countries and the call for Congressional intervention in the U.S. reflect the complex and dynamic nature of the digital assets regulatory environment.

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PriceWaterhouseCoopers Moves Away from Fintech Arm LikeZero as Souter Steps In

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Several traditional institutions all over the world have realized that integrating technology with the world of finance was a paramount factor for growth. This mantra has even forced bigwigs such as PriceWaterhouseCoopers to look closely at the way they function, especially in the data industry.

Just recently, PwC revealed that they will be selling LikeZero, the company’s intelligent data capture technology sector. The sale will be conducted via a management buy-out backed by Souter Investments. 

LikeZero worked by providing companies with a deeper look into data architectures, allowing them to make better decisions in the field. Its main clients included banks, financial institutions, and other regulated business analysts. Analysts could make use of LikeZero’s technology to enhance their risk management and contract governance. People also reported using technology for transformation and remediation activities.

The decision to move in different directions comes on the back of regulatory restrictions imposed by the Financial Reporting Council. The FRC had put up a ban on all audit firms selling their own technology to client companies so that they can have a larger choice base. Introduced by the FRC in 2016, the new rules restricted the Big Four firms from providing audit clients with financial technology. Following the decision, LikeZero chief executive Michael Lines said:

” This is a hugely exciting moment for our business. In today’s highly complex, unpredictable and regulated world, the ability for financial institutions to understand and manage their counterparty risk has become a critical function. Events such as Brexit, the cessation of Libor and the implementation of new regulations such as the new margin rules for uncleared over-the-counter derivatives, or indeed the impact of a global pandemic, all make the assessment of risk increasingly challenging.”

Officials from Souter Investments also spoke about how financial technology can create a massive impact on the changing financial landscape. Souter pointed out that scalability was of paramount importance, with the onus falling on LikeZero’s system architecture to make it happen. Companies have realized that it is easier to follow regulations rather than receive all the flak and pushback. This agreement would also allow fintech organizations to provide great products without the fear of it being taken down.