2024 will be remembered as one of the most significant years in the global crypto regulatory landscape. As crypto assets continue to gain traction in mainstream finance, policymakers worldwide are stepping up with comprehensive rules.
A New Era of Regulation
The message from regulators is clear: We are here to help regulate! This shift towards a more collaborative approach between governments and the crypto industry has been evident across various regions.
The United States’ Strategic Bitcoin Reserve
President-elect Donald Trump’s plan to establish a strategic Bitcoin reserve in the United States has sparked enthusiasm and debate. Rumors suggest that six other international governments are considering following suit, including Russia, Japan, and Thailand.
This bold move signifies that top-tier governments now view Bitcoin as a strategic holding rather than an experimental asset. The potential implications of such a development cannot be overstated.
European Union’s MiCA Regulation
Across the Atlantic, the EU’s Markets in Crypto-Assets (MiCA) regulation has compelled crypto exchanges to over-comply by delisting non-compliant stablecoins ahead of regulatory deadlines. This move effectively pushed USDt (USDT) from one of the world’s less relevant markets.
Despite this development, Tether continues to grow its market share, demonstrating the resilience of the company in the face of regulatory challenges.
The UAE’s Regulatory Landscape
The United Arab Emirates has no shortage of regulatory bodies shaping its crypto sector. With five regulators now available for companies seeking virtual asset services, businesses can align with the legal environment best suited to their offerings.
Regulatory arbitrage is a feature within the UAE, but it needs to be navigated intelligently, bearing in mind the overarching federal regulations.
Central Bank of the UAE’s Payment Token Services Regulation
In June 2024, the Central Bank of the UAE (CBUAE) introduced the Payment Token Services Regulation via Circular No. 2/2024, regulating the issuance of stablecoins. This development marked a significant milestone in the UAE’s regulatory journey.
Abu Dhabi Global Market’s Regulatory Framework for Stablecoins
The Abu Dhabi Global Market (ADGM) has also introduced a regulatory framework specifically for stablecoins, or ‘fiat-referenced tokens.’ Under these rules, issuers must fully back their tokens with reserves, maintain strong governance, and ensure rigorous transparency.
Tax Exemptions in the UAE
A tax development from the Federal Tax Authority provided that all cryptocurrency transactions are exempt from value-added tax (VAT) from November 15, 2024, retroactive to January 1, 2018. This tax relief is only relevant to those making a lot of trades on centralized UAE exchanges and being charged VAT on exchange fees.
It’s essential to note that this development has been misinterpreted by some as the UAE releasing all virtual assets from taxes. However, that is not the case.
The Digital Assets Law No. 2 of 2024
The Dubai International Financial Centre (DIFC) enacted the Digital Assets Law No. 2 of 2024, recognizing digital assets as a legitimate class of financial assets. This development has significant implications for the crypto industry and its stakeholders.
Buckle Up: Regulatory Developments in 2025
As we enter the new year, it’s clear that regulatory developments will continue to shape the crypto landscape. Expect stronger Anti-Money Laundering rules, more defined stablecoin governance, and deeper cross-border regulatory cooperation.
Conclusion
2024 has been a transformative year for crypto regulation, with significant developments in various regions. As we look towards 2025, it’s essential for stakeholders to stay informed about the latest regulatory developments and their implications.
Irina Heaver is a leading Bitcoin and crypto lawyer based in the UAE and Switzerland, recognized globally for her extensive experience and technical expertise. She holds a Juris Doctorate from Monash University and a Master of Laws degree in International Taxation and Energy Laws from Melbourne University, with advanced specializations in AI and blockchain technologies.
This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
