Global Crypto Regulation Shifts into Implementation Phase Amid Ongoing DeFi Uncertainty
WalletConnect has released a report detailing the current state of global crypto regulation. The report indicates that discussions have shifted from 'whether to regulate' to 'how to implement,' with relevant frameworks moving from legislation to actual execution.
The EU's Markets in Crypto-Assets Regulation (MiCA) will be fully applicable by December 2024, and jurisdictions are adopting a 'regulated touchpoint responsibility' model. This model requires issuers and service providers to fulfill anti-money laundering and sanctions screening obligations when interacting with self-custody addresses.
The report emphasizes that regulatory issues surrounding decentralized software and protocols remain unresolved, particularly in the DeFi sector. Currently, there are about 330 authorized crypto asset service providers in the ESMA temporary register, while over 1,000 companies failed to obtain authorization by the deadline.