World’s Top 25 Financial Centers Racing to Embrace Digital Finance
According to Blockchain Coinvestors’ Bi-Annual Digital Asset Regulation Report:
- Financial centers are racing to support digital assets and most geographies have drafted, approved, and implemented pro innovation regulation.
- Stablecoin regulation remains front and center, as many countries look to expand US dollar access
- Europe, Asia and the Middle East regulatory frameworks are in advanced stages, near full implementation.
- Pressure mounts on US regulators, newly minted Trump administration to play catch up and meet demands of a powerful digital native electorate.
SAN FRANCISCO, Nov. 7, 2024 /PRNewswire/ — Blockchain Coinvestors, a leading blockchain venture fund-of-funds and co-investment program with a combined portfolio of more than 1,250 blockchain enterprises and projects, including more than 95 blockchain unicorns, today unveiled its bi-annual Digital Asset Regulation Report which tracks the state of digital asset regulatory progress among the world’s top 25 financial centers.
Key financial centers are now focused on upgrading to digital finance with most of the leading financial centers passing pro innovation regulation for digital monies, commodities, and assets.
“Following a host of crypto spot-ETF approvals earlier this year, the world got a taste of the massive demand for digital assets, putting the onus squarely on regulators and politicians to meet the demands of a growing digital native electorate – who expect the financial ecosystem to be digital and who now comprise around 50% of global voters,” said Blockchain Coinvestors Head of Digital Asset Research Topher Nelson.
Blockchain regulation is maturing quickly in Europe, Asia, and the Middle East:
- Europe’s comprehensive MiCAR framework will be fully live by December
- France is joining MiCAR and Spain moved up their implementation by 6 months
- The UK and Switzerland are working on additional stablecoin regulations
- The Hong Kong Monetary Authority’s regulatory regime is now in full effect
- South Korea’s FSC has issued preliminary guidelines for won-pegged stablecoins
- The UAE created a framework for decentralized autonomous organizations (DAOs)
While stablecoins are top of mind for regulators worldwide, countries in emerging markets continue to embrace stablecoins to expand US dollar access and combat currency instability. BRICS nations began discussing non-US pegged stablecoins as a tool for de-dollarization and facing mounting EU pressure, Russia even legalized the use of crypto and stablecoins in international payments in hopes of circumventing sanctions.
Following a resounding Trump victory in the US, the expectation from his administration is to create a flourishing environment for digital assets, following years of hostility. US regulators did approve a family of Bitcoin and Ethereum spot-ETFs and US leadership took its first few steps forward in terms of regulation this year; attempting to repeal the antiquated capital requirements set out in SAB121, advancing FIT21 and the CBDC Anti-Surveillance State Act, and introducing early stablecoin frameworks in the McHenry and Lummis-Gillibrand stablecoin acts now working their way through congress.
“We know that the majority of US elected representatives are now listening to their constituencies who want pro innovation legislation,” said Matthew Le Merle, Managing Partner of Blockchain Coinvestors. “More than 70% of Americans are unhappy with traditional finance and more than 50% of them are digital natives who favor crypto – they are the future, and they expect their elected representatives to represent them.”
Pressure will mount on newly minted US leadership to get up to speed with more advanced global jurisdictions and digital asset regulation will continue to be a non-partisan issue as innovation and jobs head offshore.
Blockchain Coinvestors assesses a variety of factors in determining the world’s top 25 financial centers, both qualitative and quantitative, such as market capitalization and liquidity, population, GDP per capita, corporate activity, role in international trade, and others. To track regulatory progress, we continually review a variety of public sources and gather information from our regular conversations with industry leaders, policy makers, and government officials. We also track key legislative agenda items and notable litigation.
The Blockchain Coinvestors Digital Asset Regulation Report is available at www.blockchaincoinvestors.com/regulation
Blockchain Coinvestors provides an optimal way to invest in blockchain businesses. Our vision is that digital monies, commodities, and assets are inevitable, and the world’s financial infrastructure must be upgraded. Our mission is to provide broad coverage of early stage blockchain investments and access to emerging blockchain unicorns. Blockchain Coinvestors’ investment strategies are now in their 10th year and are backed by 400+ investors globally. To date we have invested in 40+ pure play blockchain venture capital funds in the Americas, Asia, and Europe and in a combined portfolio of 1,250+ blockchain companies and projects including 95 blockchain unicorns. Blockchain Coinvestors’ first fund of funds ranks in the top decile amongst all funds in its category on both Pitchbook and Preqin. Headquartered in San Francisco with a presence in London, New York, Grand Cayman, Zug and Zurich, the alternative investment management firm was co-founded by Alison Davis and Matthew Le Merle. Visit us at www.blockchaincoinvestors.com
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SOURCE Blockchain Coinvestors Management LP
