An Overview of the Global Regulatory Landscape for Virtual Assets

I. Singapore - A Pioneer in Virtual Asset Regulation

Following the bankruptcy of Three Arrows Capital and FTX, Singapore’s regulation has become more cautious and stringent, slowing its developmental pace. However, due to its stable policies and open environment, Singapore remains a top choice for global Web3 companies and entrepreneurs.

1、 MAS’s Three Categories of Virtual Asset Regulatory Framework

The Monetary Authority of Singapore (MAS) serves as Singapore’s central bank and integrated financial regulator, also overseeing the Web3 industry. Adopting a functional and categorized approach, MAS legitimizes its supervision of virtual assets.

According to the Digital Token Issuance Guidelines revised by MAS in May 2020, virtual assets are categorized based on their functions and characteristics into: Security Tokens, Payment Tokens, and Utility Tokens. Within Payment Tokens, eMoney represents electronic money, while DPT stands for digital payment tokens, serving the purpose of cryptocurrencies like BTC and ETH.

Source: Web3 小律

Assets classified as Security Tokens fall under the Securities and Futures Act (SFA) regulations, Payment Tokens under the Payment Services Act (PSA), while Utility Tokens currently have no specified regulations. Assets subject to the SFA or PSA regulations must obtain regulatory approval from MAS and acquire the relevant licenses for compliant operations. Moreover, all virtual asset activities, like other financial activities, must adhere to anti-money laundering and counter-terrorist financing compliance and supervision.

2、Launch of the Stablecoin Final Regulatory Framework

On August 15, 2023, MAS announced the final version of its stablecoin regulatory framework. This initiative aims to ensure that Singapore-regulated stablecoins maintain high value stability, making Singapore one of the first jurisdictions globally to incorporate stablecoin regulation locally.

Per the regulatory definition, a stablecoin is a digital payment token (DPT) suitable for single-currency stablecoins (SCS) pegged to the Singapore dollar or any G10 currency, maintaining relatively constant value. Issuers of such SCS must meet four key requirements: value stability, capital requirements, redemption at face value, and information disclosure.

When properly regulated to maintain value stability, stablecoins can act as reliable mediums of exchange to support innovations, including the on-chain purchase and sale of digital assets. Furthermore, only stablecoin issuers meeting all the requirements under this framework can apply to MAS for their stablecoin to be recognized and labeled as “MAS-regulated stablecoin.” This label allows users to distinguish easily between MAS-regulated stablecoins and other digital payment tokens, including “stablecoins” not bound by the MAS stablecoin regulatory framework. If users opt to transact with stablecoins not under MAS’s framework, they should make informed decisions considering the associated risks.

II. Hong Kong, China - Rapid Development of Virtual Assets

After several years of quiet, starting from October 31, 2022, with the release of “Hong Kong Virtual Assets Development Policy Declaration” by the Hong Kong Treasury Bureau, there’s a renewed acceleration in embracing the virtual assets industry. Numerous policies were implemented in 2023, showcasing their determination. The Hong Kong Financial Development Bureau’s 2022/23 annual report indicates that Hong Kong is positioning itself as a global leader in the development of virtual assets and complementary technologies.

1.Hong Kong’s Unique Dual Licensing System

Currently, Hong Kong’s licensing system for virtual asset trading platform operators is a “dual license” system. One type of license pertains to “security tokens,” falling under the “Securities and Futures Ordinance” for regulation and licensing. The other license targets “non-security tokens,” applicable under the “Anti-Money Laundering Ordinance.” The Hong Kong Securities and Futures Commission has previously stated that as virtual assets’ terms and features might evolve over time, the defining criteria between “security tokens” and “non-security tokens” might change. Therefore, virtual asset platforms, to ensure compliance, should hold both licenses.

(1) License No. 12 under the “Securities and Futures Ordinance”

Hong Kong has had a relatively well-established licensing system. If a virtual asset is categorized as a security token, it would require a security-related license. Currently, there are three mandatory licenses to be obtained for virtual asset businesses: License No. 1, License No. 7, and VASP license. Furthermore, based on operational needs, License No. 4 and License No. 9 might also be needed.

Source: LD Capital

(2) VASP License

The licensing system for Virtual Asset Service Providers (VASP) stems from the newly added provisions of the “Anti-Money Laundering and Counter-Terrorist Financing (Amendment) Ordinance.” In December 2022, the ordinance was passed and gazetted by the Hong Kong Legislative Council, becoming the first piece of legislation in Hong Kong addressing the regulation of virtual assets.

According to the 2022 amendment, virtual assets are defined as: cryptographic protected digital values, expressed through computational units or stored economic values; usable as a medium of transaction for goods or services, debt settlement, investment, or voting regarding virtual asset-related matters; transferable, storable, or tradable electronically. The Securities and Futures Commission or the Treasury Bureau can broaden or narrow the scope of virtual assets through gazette announcements. This definition under the Anti-Money Laundering Ordinance encompasses most virtual currencies in the market, including BTC, ETH, stablecoins, utility tokens, and governance tokens.

Existing virtual asset trading platforms with License No. 1 and No. 7 need to apply for a VASP license from the Securities and Futures Commission, though they can use a simplified application process. On August 3, HashKey and OSL applied for upgrades to License No. 1 and No. 7 through a simplified process and received approval for retail services in a short time, expanding their business scope to retail users.

Moreover, the Anti-Money Laundering Ordinance provides transitional arrangements for “existing virtual asset exchanges,” designating the period before June 1, 2024, as a transition phase. Platforms with License No. 1 and No. 7 but without a VASP license are recommended by the Securities and Futures Commission to implement a 12-month transitional arrangement. Those not intending to apply should begin preparations to orderly cease operations in Hong Kong by May 31, 2024. Simply put, as of June 1, 2024, virtual asset exchanges without a VASP license will not be able to operate compliantly.

2.Accelerated Development of Stablecoins

Regarding stablecoins, the SFC clarified in their “Consultation Conclusion” that the Hong Kong Monetary Authority released the “Consultation Conclusion on Cryptographic Assets and Stablecoins Discussion Paper” in January 2023. Implementation of regulatory arrangements for stablecoins will be set in motion in the 2023/24 period, establishing a licensing and permitting system for stablecoin-related activities. Before stablecoins are regulated, the SFC believes they should not be included for retail trading. On May 18, the Hong Kong Monetary Authority announced the launch of the “Digital Hong Kong Dollar” pilot program, with 16 companies from the finance, payment, and tech industries chosen for the initial 2023 trials. The pilot project delves into six potential use cases, including comprehensive payments, programmable payments, offline payments, token deposits, Web3 transaction settlements, and token asset settlements. On September 19, during the Wanchain Blockchain Week, Hong Kong Legislative Council member Qiu Dageng stated that the Hong Kong dollar stablecoin regulatory framework might be introduced by June next year.

III. UAE: Establishing the First Tailored Virtual Asset System

The Dubai Virtual Asset Regulatory Authority (VARA) was established in March 2022 as the world’s first governmental body specifically designed to regulate the virtual asset industry. It oversees activities related to the virtual asset sector in Dubai, including special development zones and free zones but excluding the Dubai International Financial Centre. Prior to this, companies like Binance, Okx, crypto.com, and Bybit have obtained MVP licenses in Dubai and set up their companies. On February 7, 2023, based on the Dubai Emirates Virtual Asset Regulatory Law No. (4) of 2022, and with final approval from the board, VARA released the 2023 Virtual Asset and Regulatory Activities Regulation, which took effect immediately upon issuance. It mandates that all market participants engaged in virtual asset activities or services in the UAE (excluding the two financial free zones ADGM and DIFC) must obtain approval and licensing from either the UAE Securities and Commodities Authority (SCA) or VARA.

VARA has identified seven different virtual asset (VA) activities, including consulting services, brokerage trading services, custody services, exchange services, lending services, management and investment services, and transfer and settlement services. The licensing process is divided into four phases: temporary licensing, preparation, operating a Minimum Viable Product (MVP) license, and what is referred to as a Full Market Product (FMP) license. Before the phase (4) FMP license is approved, MVP license holders are not permitted to offer services to retail customers but can provide virtual asset services to qualified individual and institutional investors in Dubai. Currently, three companies have officially obtained the VASP license, while Binance, OKX, and Bybit are at various stages of the MVP.

Source: VARA Public Register

The Dubai government has adopted a bold and proactive stance towards the development of virtual assets. Not only have they driven the establishment of independent regulatory bodies and policies, but they’re also heavily promoting artificial intelligence and the metaverse, rapidly becoming a significant global player in the virtual asset realm.

IV. Europe: EU Introduces the Most Comprehensive Unified Virtual Asset

1、 European Union

On May 31, 2023, the EU formally signed the milestone Crypto Asset Markets Regulation (MiCA), which was published in the Official Journal of the European Union (OJEU) on June 9. This represents the most comprehensive and clear unified virtual asset regulatory framework globally, offering a common regulatory system for all 27 EU member states, establishing a unified market covering 450 million people.

The 150-page legislation provides a complete regulatory framework, detailing the scope and definitions of the regulations, classifications of crypto assets, rules for crypto service providers, and regulatory authorities. According to this regulation, any company offering crypto assets to the public must release a fair and clear white paper, warning of risks without misleading potential buyers, register with regulatory authorities, and maintain appropriate bank-like reserves for stablecoins.

Source: LD Capital

MiCA defines crypto assets as digital representations of value or rights that use distributed ledger technology or similar technologies for electronic transfer and storage. In terms of crypto asset classification, MiCA divides them into e-money tokens, asset-referenced tokens, and other crypto assets. E-money refers to crypto assets that maintain a stable value by referencing an official currency’s value, mainly addressed in the fourth chapter of the regulation. Asset-referenced tokens are crypto assets, other than e-money tokens, designed to maintain a stable value by referencing another value, right, or a combination, including one or multiple official currencies, mainly addressed in the third chapter. Utility tokens are crypto assets used exclusively to access goods or services provided by the issuer, mainly addressed in the fifth chapter. According to the current legislation, MiCA doesn’t provide explicit regulatory methods for security tokens and NFTs; the specific categorization of existing tokens in the current crypto market requires more practical use cases for interpretation.

Source: Mayer Brown Law Firm

MiCA will have an 18-month transition period, taking full effect on December 30, 2024. By mid-2025, the committee will report on whether further legislation is needed to address the requirements of NFTs and decentralized finance.

2. United Kingdom

Following the EU’s introduction of the MiCA regulation, the UK accelerated its virtual asset legislation. On June 19, 2023, the UK’s House of Lords approved the Financial Services and Markets Bill (FSMB). On June 29, the bill received royal assent from King Charles, a procedural step after legislative approval, incorporating cryptocurrencies within the FSMB’s regulatory scope. The bill also introduces measures to oversee cryptocurrency promotions. UK Financial Services Minister Andrew Griffith stated that post-Brexit, the UK can control its financial services rulebook, enabling cryptocurrency asset regulations to support its safe adoption in the UK. On July 28, the UK and Singapore agreed to jointly develop and implement global regulatory standards for cryptocurrencies and digital assets.

V. United States - A Crucial Player in Virtual Asset Development

The U.S. Securities and Exchange Commission (SEC) has been aggressive in its stance in recent years, making the U.S. one of the strictest regulators globally. However, both traditional financial institutions and crypto companies in the U.S. have been working diligently to merge industry growth with regulations. Since 2022, U.S. legislators have submitted over 50 digital asset bills to Congress. At present, U.S. regulations serve as both a significant barrier and a potential accelerator for development, especially since it concerns the primary source of liquidity in the crypto world - the flow of the U.S. dollar.

1. SEC vs. CFTC

（1）SEC and the Howey Test

The U.S. Securities and Exchange Commission (SEC), established under the Securities Exchange Act of 1934, is an independent, quasi-judicial body of the U.S. federal government responsible for overseeing and managing securities. The SEC ensures that public companies do not engage in financial fraud, misleading information, insider trading, or other violations of securities laws; otherwise, they face civil litigation.

As crypto assets with financial characteristics have developed, the SEC, through its analytical framework released on April 3, 2019, determines whether a specific crypto asset is considered a security and therefore falls under the regulations of the Securities Act of 1933 and the Securities Exchange Act of 1934. A crucial method for this determination is the “Howey Test”, which considers: Is it an investment of money? Is it a common enterprise between issuers and investors? Is there a reasonable expectation of profits derived from the efforts of others? Both the SEC and federal courts have emphasized the flexibility (and subjectivity) of the Howey Test. If a crypto asset is defined as a security through the Howey Test, it falls under regulatory oversight.

来源：Web3 小律

（2）SEC Regulation and Crypto World Challenges

Current SEC Chairman Gary Gensler has often stated publicly that, aside from absolutely decentralized virtual currencies like Bitcoin, the vast majority of crypto tokens meet the investment contract test and should be viewed as “securities”, requiring registration with the SEC or qualifying for exemptions. Given that most crypto tokens are subject to securities laws, most crypto intermediaries must also comply with these laws.

Defining tokens as securities means crypto asset issuers or trading platforms must bear high costs to adapt to the U.S.’s already comprehensive and strict regulatory standards. Furthermore, they will continuously undergo routine checks and legal enforcement. Most critically, regulating based on existing laws (without adaptive revisions) will fundamentally change the way the crypto industry operates, hindering current operations and future innovations.

（3）CFTC: Embracing Crypto, But Still Strict

The U.S. Commodity Futures Trading Commission (CFTC) is an independent agency established by the U.S. government in 1974. Congress authorized the CFTC to manage and execute the Commodity Exchange Act (CEA) of 1936 and its regulations, primarily overseeing the U.S. commodity futures, options, and financial futures markets.

Current CFTC Chairman Rostin Behnam has said in interviews that the CFTC’s approach to cryptocurrency regulation differs significantly from Gary Gensler’s SEC. He believes that many crypto assets are commodities, not securities, like BTC and ETH. He criticized the SEC’s approach, stating, “I strongly oppose enforcement-first regulation. I’ve tried my best to remain transparent.” He also said financial innovation aligns with national interests, likening crypto innovations to other “milestone moments in market structure”, such as the transition to electronic trading 20 years ago.

However, the CFTC recently displayed its strict side, enforcing regulations against three DeFi projects involved in derivatives, penalizing U.S.-based blockchain companies Opyn, Inc., ZeroEx, Inc., and Deridex, Inc., all of which settled the penalties. While many previously perceived the CFTC as a friendly agency due to its proactive approach and the SEC’s enforcement actions, it’s now clear that the CFTC’s regulation can be even stricter in some areas.

2. Bitcoin Spot ETF

（1）What’s an ETF and a Bitcoin Spot ETF?

An ETF (Exchange Traded Fund) is an open-end investment fund, a type of index investment product that can track broad indices and their subsectors or industry sectors. It is made up of investment portfolios based on the composition of various indices. Trading ETFs allows transactions across a range of underlying asset combinations, achieving risk diversification. Common examples include ETFs for financial stocks, energy stocks, or commodities.

A Bitcoin Spot ETF mainly invests in assets related to Bitcoin. It follows Bitcoin’s price, allowing investors to buy and sell fund shares on standard exchanges, giving them exposure to Bitcoin’s price fluctuations without actually holding the cryptocurrency.

（2）Why is the Bitcoin Spot ETF So Important?

ETFs simplify the investment process and lower the entry barrier, encouraging more investors to use ETFs to invest in Bitcoin. Furthermore, the approval of a Bitcoin Spot ETF will introduce a new legitimate investment product in traditional financial markets. Leveraging the strong sales force and expected returns of major fund giants, it could channel trillions into the market. Being the leading cryptocurrency, the approval of a Bitcoin Spot ETF will pave the way for compliant products for other cryptocurrencies, boosting the entire industry’s development.

（3）Current Progress of ETFs

Several U.S. fund giants, including BlackRock, Fidelity, ARK, Bitwise, WisdomTree, and Valkyrie, have submitted applications for Bitcoin Spot ETFs. The SEC must respond to these applications before four deadlines, including rejection, approval, or postponement. The SEC did not approve any applications by the first deadline, and a significant decision is expected around mid-October during the second timeline for many applications.

Sources: Web3 Legal, Bloomberg, Star Daily

Former Chairman of the U.S. Securities and Exchange Commission (SEC), Jay Clayton, and Evgeny Gaevoy, co-founder of Wintermute, among other American financial heavyweights, have all indicated that the approval of a spot Bitcoin ETF is inevitable, merely a matter of time. Although there have been many voices recently suggesting that there will be good news about a Bitcoin ETF in October, the author believes that formal approval is highly likely to occur next year.

3.Other Developments

(1) Stablecoins

This year, the Republicans on the U.S. House Financial Services Committee proposed a new stablecoin regulatory bill aimed at transferring jurisdiction over stablecoins from the U.S. Securities and Exchange Commission (SEC) to federal and state banking and credit union regulatory agencies. However, it failed to pass in the Democrat-majority Senate. In August, the global payment giant PayPal announced the launch of its U.S. dollar stablecoin PYUSD for transfers and payments, issued by Paxos Trust Co. and backed by assets like the U.S. dollar, short-term Treasury bonds, and cash equivalents. Furthermore, on August 16, Dante Disparte, the Chief Strategy Officer of Circle, the issuer of USDC, called for the U.S. to legislate on stablecoins as soon as possible in an interview.

(2) Real-World Assets (RWA)

RWA is one of the fastest-growing sectors in the U.S., with those tied to U.S. Treasuries becoming a significant asset within the crypto world. In a working paper about tokenization released on September 8 by the Federal Reserve, tokenization is recognized as a new and rapidly growing financial innovation in the crypto market, analyzed from the dimensions of scale, benefits, and risks, indicating the Fed’s increasing attention to asset tokenization. On September 7, industry leaders in the crypto world announced the establishment of the Tokenization Alliance (TAC), with founding members including industry leaders such as Aave Companies, Centrifuge, Circle, Coinbase, Base, Credix, Goldfinch, and RWA.xyz. These companies are committed to bringing the next trillion-dollar worth of assets on-chain through the tokenization of real-world assets, education, and advocacy.

(3) DeFi and NFTs

Recently, DeFi and NFTs have been enforcement focuses of U.S. regulatory agencies. As previously mentioned, the CFTC took enforcement actions against three DeFi protocols, with the companies ultimately pleading guilty and settling. In August and September this year, the SEC took regulatory enforcement actions against a Los Angeles-based entertainment company, Impact Theory, LLC, and Stoner Cats 2 LLC, for offering unregistered securities, with Impact Theory, LLC reaching a settlement by introducing an investor compensation policy.

The United States has always had the most comprehensive financial system and very high regulatory standards. However, the criticism from the industry this year is that, compared to other countries and regions that have introduced new legislation, U.S. regulatory agencies currently incorporate virtual assets into the existing system for regulation and enforcement, without officially introducing new rules suitable for the industry’s development, which may hinder the growth and innovation of the crypto industry in the U.S. Nonetheless, the U.S. still has highly innovative companies and large traditional interest groups venturing into Web3, which will continue to drive regulatory change. Perhaps external regulatory developments and next year’s U.S. elections will be key turning points.

VI. Japan and South Korea—Key Participants in the Virtual Asset World

1、Japan

Japan was among the early adopters of cryptocurrencies, but it faced one of the industry’s gravest setbacks in 2014—the hack and subsequent collapse of Mt. Gox, a major global Bitcoin exchange. This incident resulted in a loss of 850,000 bitcoins for retail investors, and the debt repayment process stemming from the event remains unresolved after nine years. Recently, on September 21, the trustee in charge of the Mt. Gox bankruptcy case decided to postpone the creditor repayment for another year, moving the scheduled payment date from October 31, 2023, to October 31, 2024. Post-Mt. Gox, Japan implemented stricter regulations on the cryptocurrency industry and adopted clearer and more explicit regulatory policies than countries such as the United States. In 2017, Japan revised the Payment Services Act to bring cryptocurrency exchanges under regulatory oversight, supervised by the Financial Services Agency (FSA).

With the recent rapid development of the crypto industry, since 2022, Japan has accelerated the enactment of proactive policies. On June 1, 2022, Japanese Prime Minister Fumio Kishida declared in the House of Representatives that “the advent of the Web3 era could lead to economic growth for Japan, and it is strongly believed that Japan must decisively promote such an environment from a political standpoint.” Soon after, Japan established multiple policy institutions such as the Ministry of Economy, Trade and Industry’s Web3 Policy Office, and the Liberal Democratic Party’s Web3 project team to vigorously promote the development of Web3 in Japan.

In April 2023, the ruling party’s Web 3.0 project team in Japan published a white paper proposing suggestions to promote the development of the country’s crypto industry. In June 2023, Japan’s “Financial Instruments and Exchange Act Amendment Bill” was voted through in the House of Councillors, making it one of the first countries to enact a stablecoin law. The Ethereum Developers Conference “EDCON 2024” will also be hosted in Japan.

2、South Korea

South Korea is one of the countries most enthusiastic about trading cryptocurrencies. In 2017, the country, with a population of over 50 million, accounted for 20% of all Bitcoin trades and became the largest market for Ethereum. In the subsequent years, the South Korean government cracked down on speculative activities in crypto trading, such as regulating trader access and exchange registration, yet the fervor for crypto trading remains. Tokens that gain popularity among Korean traders and are listed on Korean exchanges often experience prices significantly higher than in other global exchanges, a phenomenon known as the “Kimchi premium.”

Amidst the fervor for cryptocurrencies, South Korea’s regulations have also accelerated in recent years. In June this year, the National Assembly of South Korea passed the “Virtual Asset User Protection Law,” introducing a regulatory framework for virtual assets, expected to help protect users in the virtual asset market and establish a sound, standardized, and transparent market order. The Financial Services Commission of Korea is preparing for the second phase of legislation for virtual assets. The bill will be implemented one year after the government’s promulgation procedures, with expectations for it to take effect in July 2024.

Recently, the blockchain industry in South Korea has also been proactively laying out infrastructure. On September 12, three major securities companies—Shinhan Investment Corp, KB Securities, and NH Investment & Securities—formed the “Token Securities (ST) Consortium” and began joint infrastructure construction. On September 21, the city of Busan passed the “Busan Digital Asset Exchange Establishment Promotion Plan and Future Schedule,” planning to establish the exchange in November, with official operations starting in the first half of 2024. Additionally, Busan aims to become a “blockchain city,” centered around the Busan Digital Asset Trading Platform, and has proposed a plan to set up a 100 billion won (~75 million USD) blockchain innovation fund.

VII. G20—Advocate for a Global Virtual Asset Regulatory Framework

The current characteristic of virtual asset regulation is the lack of unified standards and specific regulations across different countries and regions, which imposes significant difficulties and costs on the operations and development of projects and companies. This discrepancy also provides regulatory arbitrage opportunities for speculators. The G20, as an economic cooperation forum organization that accounts for 85% of the global GDP, 80% of the global trade volume, and two-thirds of the world’s population, is also actively advocating for a unified global regulatory framework for virtual assets.

On September 9, 2023, the leaders of the G20 member countries endorsed the recommendations of the Financial Stability Board (FSB) and the International Monetary Fund (IMF) on the regulation and supervision of cryptocurrency activities, markets, and global stablecoins. They agreed to discuss and advance the proposed roadmap by the FSB and IMF at the October meeting. At the New Delhi summit on September 11, the G20 leaders reached a consensus on the rapid implementation of the cross-border framework for cryptocurrencies. This framework, set to be promoted starting in 2027, will facilitate the global exchange of cryptocurrency information, with nations automatically sharing information on crypto transactions across different jurisdictions each year, including those conducted through unregulated cryptocurrency exchanges and wallet providers. (The G20 is composed of twenty parties, including China, Argentina, Australia, Brazil, Canada, France, Germany, India, Indonesia, Italy, Japan, South Korea, Mexico, Russia, Saudi Arabia, South Africa, Turkey, the United Kingdom, the United States, and the European Union.)

The G20’s advancement in virtual asset matters is positive; however, the nature of the group, characterized by a blend of diverse political ideologies and complex interests, coupled with the current cycle of anti-globalization in the context of great power games, suggests that the implementation of substantial policies promoted by the G20 may proceed very slowly.

VIII. Conclusion

1.The cost of regulatory compliance for cryptocurrency companies remains high at present. Although various countries and regions have introduced legislation, there are differences in how they define, classify, and regulate virtual assets. Cryptocurrency companies and individual investors need to adapt to different rules and comply with regulations across various regions.

2.Virtual assets are innovative and unique, and thus more suited for the creation of new regulatory frameworks. The lifecycle of virtual assets spans several stages, such as mining, staking, issuing, trading, transferring, payment, lending, and derivatives. The complexity of asset categories, such as a single token having payment, security, and utility attributes, means that classifying them under existing, unamended regulatory frameworks may not suit the current industry development. It is more appropriate to adopt new regulations and regulatory approaches based on the widely accepted characteristics of virtual assets. Balancing regulation with development is a true test of the strategic wisdom in the interplay between governments and the industry.

3.The regulatory path that blends integration with change is essential. By 2024, more legislation concerning the regulation of virtual assets is expected to be implemented. Adapting to regulations will likely be a lengthy and challenging process. However, the current market’s desire to inject new liquidity and achieve large-scale application makes integrating with regulatory changes an inevitable route.

Disclaimer：

1. This article is reprinted from [techflowpost]. All copyrights belong to the original author [Alfred, LD Capital]. If there are objections to this reprint, please contact the Gate Learn team（[email protected]）, and they will handle it promptly.
2. Liability Disclaimer: The views and opinions expressed in this article are solely those of the author and do not constitute any investment advice.
3. Translations of the article into other languages are done by the Gate Learn team. Unless mentioned, copying, distributing, or plagiarizing the translated articles is prohibited.