PwC report explores the regulatory outlook of the digital asset industry
07 February 2024
PwC’s second annual digital assets report “Navigating the Global Crypto Landscape with PwC: 2024 Outlook” explores important topics that will shape the future landscape of the digital asset industry, and regulatory developments in over 40 jurisdictions, including the Isle of Man.
Notable advancements have been made in global digital asset regulation throughout 2023, however, there is still much work to be done. Key topics from the report include:
- Detailed analysis of jurisdictional equivalence in digital asset regulations, exploring how different regions approach digital asset legislation and supervision
- Insights on global crypto operations, including the challenges and opportunities in selecting jurisdictions for incorporation and operational bases
- Perspectives from global standard-setters on recent developments in crypto regulations
- A focus on the influence within the European Union’s digital asset market, outlining its impact on crypto-asset services and issuers
- A consolidation of the IMF-FSB’s policies and FATF’s focus on AML/CFT standards in decentralised finance
- Insights into the IOSCO’s recommendations, advocating for regulatory parity across digital assets and traditional financial markets
- An overview of global stablecoin arrangements, focusing on their governance, risk management, and the necessity for international regulatory cooperation
- Summaries of advancements in digital assets regulation from across various global jurisdictions
The report takes a deep dive into the global regulatory landscape, exploring how frameworks are developing and impacting both crypto and traditional financial sectors. Developments and frameworks from the FSB, IMF-FSB, FATF, and IOSCO are highlighted. It emphasises the importance of consistent regulatory approaches, addressing financial stability risks, and managing client asset protection.
Daithi O’Regan, Advisory Manager at PwC Isle of Man commented: “The report summarises the legislative and regulatory outlook from over 40 jurisdictions; including the Isle of Man, providing a global perspective on how different regions are adapting to and shaping the future of digital asset regulation.
Jurisdictional equivalence is important for digital asset firms, and the anticipated introduction of a Travel Rule Code in 2024 by the Isle of Man Financial Services Authority would see the Isle of Man working towards equivalence.
The evolution of regulatory and legal frameworks for the digital asset industry are instrumental in promoting trust, and a strong jurisdictional reputation gives confidence in market participants, which is essential for the growth and development of the industry in the Isle of Man.”