Crypto Regulation Updates in 2024: Key Changes & Impact

2024 has been a year of progress for crypto regulations marked by the approval of spot Bitcoin (BTC) exchange-traded funds (ETFs) in the US, which was a watershed moment that signaled growing mainstream acceptance of digital assets.

Elsewhere, legislative and regulatory efforts to refine existing rules and introduce new ones to safeguard end consumers and balance crypto innovation have been encouraging.

In this article, we list the 2024 crypto regulation updates in the US, EU, UK, and the rest of the world.

Table of Contents Table of Contents

1. Key Takeaways
2. Top 11 Crypto Regulation Updates in 2024
3. Crypto Regulations in the US
4. Crypto Regulations in the EU & the UK
5. Cryptoсurrency Regulations From the Rest of the World
6. The Bottom Line
7. FAQs
8. References

Show Full Guide

Table of Contents

1. Key Takeaways
2. Top 11 Crypto Regulation Updates in 2024
3. Crypto Regulations in the US
Show Full Guide
4. Crypto Regulations in the EU & the UK
5. Cryptoсurrency Regulations From the Rest of the World
6. The Bottom Line
7. FAQs
8. References

Top 11 Crypto Regulation Updates in 2024

Crypto Regulations in the US

The US has seen key SEC crypto regulation developments in 2024.

Spot Bitcoin ETFs

2024 began on a positive note as the US Securities and Exchange Commission (SEC) finally gave its blessing to the listing and trading on spot Bitcoin ETF.

The approval of spot Bitcoin ETFs was a historic event for the crypto industry. Retail and institutional investors now have the opportunity to gain exposure to Bitcoin via regulated instruments that are traded on the NYSE and Nasdaq stock exchanges.

The US SEC had been rejecting spot BTC ETF-related exchange rule filings since 2013, when crypto exchange Gemini co-founders Cameron and Tyler Winklevoss filed the first application for the instrument.

On January 10, 2024, the securities market watchdog finally gave way and legitimized Bitcoin as an alternative investment asset.

In July 2024, the US SEC approved spot Ether (ETH) ETFs.

JUST IN: BlackRock CEO Larry Fink says their spot #Bitcoin ETF "is the fastest growing ETF in the history of ETFs." 🚀 pic.twitter.com/J6g7XrYWCU

— Bitcoin Magazine (@BitcoinMagazine) March 27, 2024

FIT21

In May 2024, the Financial Innovation and Technology for the 21st Century Act (FIT 21) became the first major crypto bill to be cleared by the US House of Representatives.

FIT21 was first introduced in 2023 by Representative Glenn Thompson of Pennsylvania. The bill looks to provide clarity by clearly defining sensitive terms such as “digital commodity,” “restricted digital asset,” and “permitted payment stablecoins.”

Additionally, FIT21 also looks to draw a boundary between the US SEC and the US Commodities Futures Trading Commission (CFTC) about their crypto regulatory duties.

The FIT21 bill will be presented to the US Senate next. If passed by the upper chamber of the US Congress, it will head to the President’s desk for final approval before becoming law.

#WATCH: Chairman @PatrickMcHenry delivers remarks on the House floor in support of #FIT21:

"FIT21 will cement the United States’ global leadership in technological innovation, invention, and adoption."

Read more 🔗https://t.co/tv0aFzS5aY

📺 Watch his remarks 👇 pic.twitter.com/hPldTaj7JY

— Financial Services GOP (@FinancialCmte) May 22, 2024

BITCOIN Act

In July 2024, Senator Cynthia Lummis introduced a bill in the US Senate to create a strategic Bitcoin reserve in the US to “serve as an additional store of value to bolster America’s balance sheet.”

In the Boosting Innovation, Technology and Competitiveness through Optimized Investment Nationwide (BITCOIN) Act, Senator Lummis argued that Bitcoin could serve as a hedge against “economic uncertainty and monetary instability” and could strengthen the position of the US dollar in the global financial system.

The Bitcoin Act proposes to acquire over 1 million BTC tokens—representing about 5% of Bitcoin’s total supply—over a set period of time.

With a strategic #Bitcoin reserve, we will have an asset that can cut our debt in half by 2045. pic.twitter.com/HYWSpJ9Siu

— Senator Cynthia Lummis (@SenLummis) July 27, 2024

CBDC Anti-Surveillance State Act

The CBDC Anti-Surveillance State Act is a bill that looks to stop the issuance of a central bank digital currency (CBDC) without authorization from Congress due to its threat to “Americans’ right to financial privacy.”

US Representative Patrick McHenry remarked on the floor of the US House of Representatives that CBDC is a “surveillance tool waiting to be weaponized.”

The anti-CBDC bill was passed by the House by a slender margin of 216 to 192 in May 2024, with only three Democrats voting in favor of it.

The CBDC Anti-Surveillance State Act is necessary now more than ever because we live in a world where someone like Canadian PM Trudeau can freeze your bank account if you protest the government.

A vote for this bill is a vote to safeguard our economic freedom, protect our… pic.twitter.com/s2wzmMBLab

— French Hill (@RepFrenchHill) May 23, 2024

Crypto Regulations in the EU & the UK

Here is a roundup of the key crypto regulation news from the European Union (EU) and the United Kingdom (UK).

MiCA Crypto Regulation

The Markets in Crypto-Assets Regulation (MiCA) is a framework that aims to protect investors by regulating the public offering of cryptocurrencies in the EU region.

The European Commission approved MiCA in October 2022, which has since been implemented in phases. The full scope of the regulation is expected to be in force by the end of 2024.

The MiCA is described as one of the most comprehensive crypto regulatory frameworks in the world. It includes provisions for the issuance and trading of crypto assets, disclosures, and transaction supervision.

Stablecoins are a key area that the MiCA looks to regulate. Electronic Money Institution (EMI) licenses and limits on stablecoin volumes were implemented in 2024. Crypto service providers in the EU must now ensure that their corporate structure and activities comply with MiCA rules.

MiCA, the landmark EU crypto regulation, officially passed the plenary of the EU Parliament 🇪🇺
-517 MEPs voted in favor
-38 against
-18 abstentions

Next steps
-final formal vote in the Council of the EU (EU member states) on May 16
-MiCA publication in the Official journal of… pic.twitter.com/1T6VRcOYrI

— Patrick Hansen (@paddi_hansen) April 20, 2023

The Property (Digital Assets Etc.) Bill

There was positive crypto regulation news from the UK in 2024 when the Property (Digital Assets Etc.) Bill was introduced in the British Parliament in September.

The bill looks to recognize cryptocurrencies, non-fungible tokens (NFTs), and carbon credits as personal property under English and Welsh property law.

The Property (Digital Assets Etc.) Bill will give legal protection to crypto owners and companies against frauds and scams and help judges deal with cases related to crypto-related disputes and settlement, said the Ministry of Justice.

What would it mean if the 🇬🇧 UK defines crypto as a new type of personal property? Jordan Wain explains. Find out more about how regulations are impacting crypto adoption trends in our 🌏 2024 𝐆𝐞𝐨𝐠𝐫𝐚𝐩𝐡𝐲 𝐨𝐟 𝐂𝐫𝐲𝐩𝐭𝐨𝐜𝐮𝐫𝐫𝐞𝐧𝐜𝐲 𝐑𝐞𝐩𝐨𝐫𝐭:… pic.twitter.com/KS0NDbKwvH

— Chainalysis (@chainalysis) November 20, 2024

Cryptoсurrency Regulations From the Rest of the World

In this section, we look at important global crypto regulation news from digital asset hubs such as Hong Kong, Singapore, and South Korea.

Hong Kong Stablecoin Bill

Hong Kong is set to represent the first draft of a stablecoin regulation bill in December 2024. The bill will look to protect consumers while balancing financial stability and crypto industry innovation.

Earlier in March 2024, the Hong Kong Monetary Authority (HKMA) had launched a regulatory sandbox for stablecoin issuers which was used to obtain feedback on the incoming stablecoin regulations. Standard Chartered Bank and Animoca Brands were among the participants.

Hong Kong Approves Spot Crypto ETFs

Just three months after the approval of spot BTC ETF in the US, Hong Kong regulators approved the listing of Asia’s first crypto ETFs with the launch of six Bitcoin and Ether (ETH) spot ETFs in April 2024.

Hong Kong’s ETFs offered in-kind creation and redemption to customers compared to cash-only redemptions for US-based spot crypto ETFs.

🇭🇰 Giant #Bitcoin Spot ETF ads spotted in Hong Kong.#Bitcoin marketing team in action 🚀

pic.twitter.com/GE8820HxUb

— Bitcoin Magazine (@BitcoinMagazine) April 15, 2024

South Korea’s Virtual Asset User Protection Act

South Korea enforced the Virtual Asset User Protection Act (VAUPA) in July 2024. The law focuses on protecting users’ crypto holdings, regulating unfair trading practices, and authorizing financial regulators to supervise, inspect, and sanction crypto service providers.

According to VAUPA, crypto service providers must deposit customer funds in a bank and pay customers interest on their deposits. Crypto service providers are required to separate customer funds from company assets and need to be insured against liabilities such as hacking.

Crypto companies are also required to maintain a surveillance system and report suspicious trading activities to the Financial Supervisory Service.

Singapore Plans to Update Crypto Regulations

In October 2024, the Monetary Authority of Singapore released a consultation paper on how the regulator plans to update the Financial Services and Markets Act which was passed in April 2022.

The upcoming updates are related to the licensing of digital token service providers (DTSPs) such as crypto exchanges and custodians that operate in Singapore. New laws will require crypto service providers to follow strict anti-money laundering (AML) and countering the financing of terrorism (CFT) rules, reporting and capitalization requirements, among others.

The Bottom Line

Unclear regulations have been a thorn in the side of crypto innovation. As more nations introduce sound laws and standards related to crypto assets, we will see more institutions and investors join the industry to innovate together.

The global regulatory trajectory for crypto remains at a pivotal crossroads.

The pace of crypto regulation implementation remains varied among world nations. Regulations passed in the US, EU, and UK are expected to be used as guides by other nations that lag behind.

FAQs