Final

[Wavebridge] Global Q2 Crypto Regulation, Industry Update_23.07.pdf

Overall Summary

Global (p.5-6)

• International organizations such as IOSCO, G7, G20 and the World Economic Forum have pledged to work on globally coordinated rules for the digital asset ecosystem
• Tokenization of financial and real-world assets have become a huge trend, with Citi bank forecasting the market size of tokenized digital securities to reach $4T in 2030 and BCGADDX estimating the tokenization of global illiquid assets estimated to be a $16T business in 2030
• Several pilot projects have been implemented by international working groups (ex. BIS, MAS) to establish a structure supporting different forms of digital money including CBDC and Tokenized Assets
• Based on data compiled by Coindesk, the combined market capitalization of tokenized money market funds nears $500 million with projects coming from new and old players (ex. Securitize, Maple, Ondo, Open Eden, Franklin Templeton)

Asia (p.7-8)

• Due to the US crackdown on market participants, investors and marketplace have migrated to Asia, which can be seen from CryptoQuant data which shows increased Bitcoin trading activity in predominantly Asian hours, and decrease of BitcoinEthereum reserves at US-based exchanges
• In due of South Korea's Financial Service Commission's “Security Token Guideline” released in Q1, many consortium groups of banks and fintech firms have been formed
• South Korea Parliament passed the first phase of the Virtual Asset Bill, “Virtual Asset User Protection” legislation on June 30th, focusing on user asset protection and enforcement against unfair trade practices. Effect will take place from June 2024
• Haru Invest and Delio, two crypto yield service providers headquartered in South Korea, abruptly suspended customer deposits and withdrawals on June 13 and 14 bringing in investigation from financial regulators
• Japan’s tightened anti-laundering(travel) rule and stablecoin legislation began effect on June 1, which is the same date when Hong-Kong's “Virtual Asset Trading Regime (VATP)” regime supervised by the SFC commenced
• Hong-Kong Regulators have doubled their effort to help crypto firms with banking, by hosting two meetings between banks and industry participants

UAE (p.9)