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Solidus Labs Unveils Comprehensive, Global Crypto Regulation Index

By Business Wire

Business Wire
Overall Rating


The first-of-its-kind index ranks 42 key countries based on proprietary methodology cataloging the current state of digital asset regulation on a global scale

NEW YORK--(BUSINESS WIRE)--#crypto--Crypto-native risk monitoring and market integrity leader, Solidus Labs, launches its inaugural publication of the firm’s Global Crypto Regulation Index (“GCR Index”), providing a point-in-time snapshot of where digital asset regulations currently stand, and ranking key countries and their approaches to regulation that aims to both protect consumers and encourage innovation.

Solidus’ GCR Index is introduced at a pivotal moment for the industry, as digital asset volatility, market integrity and consumer protection pose major concerns for investors and regulators, and as governments across the globe increasingly respond to the evolution of crypto markets through legislative, enforcement, regulatory and/or policy actions.

“While many would expect leading economies to spearhead digital asset regulation, many of those countries rely on their existing regulatory regimes whereas some smaller countries have been quick to adopt comprehensive frameworks tailored to digital asset markets,” says Kathy Kraninger, VP of Regulatory Affairs at Solidus Labs who formerly led the United States Consumer Financial Protection Bureau. “A key theme consistent in our findings is consensus that regulators view market manipulation as a core risk and that market surveillance is necessary to protect users, investors and economies.”

Detailed further in the index is a robust methodology behind the rankings, providing a weighted 0-5 score for each country in the following five categories:

  1. The Legal Status and Environment category assesses whether digital asset entities and participants can openly operate in a country or if access is limited in some way (35% weighting).
  2. The Regulatory Framework category considers whether the country has a regulated digital assets market with clear rules and regulatory oversight to ensure consumer protection and facilitate innovation (30% weighting).
  3. The Market Surveillance and Anti-Market Manipulation Rules category dives deeper into the substance of each country’s regulatory regime, ranking its inclusion of market integrity aspects (15% weighting).
  4. The Registration Requirements category addresses another aspect of the regulatory regime, assessing licensing and registration processes and requirements (10% weighting).
  5. The AML/CFT Requirements for Digital Asset Service Providers category considers a country’s AML/CFT regime (10% weighting).

Based on the GCR index, these are the top 5 countries:

Country (rank)

Legal
(35%)

Regulation
(35%)

Surveillance
(15%)

Registration
(10%)

AML/CFT
(10%)

Total

The Bahamas (1)

5

5

5

5

4

4.90

Bermuda (2)

5

5

4

5

4

4.75

Malta (3)

5

5

5

4

3

4.70

Switzerland (4)

5

4

4

5

5

4.55

Serbia (5)

5

4

5

4

4

4.50

In general, top-tier countries offer clear and comprehensive regulatory frameworks for digital assets that are tailored to meet new and unique challenges and opportunities that apply to these markets. The report sheds light on possible gaps between adoption and regulation, showing they don’t always go hand in hand, potentially posing heightened risk.

“The future of the crypto industry, and all of its potential to enable more accessible, transparent and efficient markets, depends on constructive regulation, and market participants’ ability to comply with rules through advanced risk monitoring and compliance programs,” said Asaf Meir, Solidus’ Founder & Chief Executive. “We’ve created this report to help our many clients and partners, and the industry as a whole, navigate the fast-evolving regulatory landscape, utilize the current market downturn to optimize, and build better and safer infrastructure that would satisfy these increasing standards.”

Even against the current backdrop in the digital asset space Solidus’ findings, and insight taken from direct discussion with regulators, show that many countries are rapidly developing regulatory regimes tailored for digital assets, but have not yet implemented complete frameworks. Many mid-tier ranked countries initially responded to digital assets’ increasing adoption through enforcement rather than policy action. Some of these countries are now moving towards whole-of-government frameworks, although legislative, regulatory, and policy initiatives will take time to progress.

Acknowledging this sentiment, Solidus Labs and many other industry participants are accelerating efforts to engage with each other and regulators in order to promote progressive and constructive regulatory regimes. In February, Solidus Labs initiated and co-founded the Crypto Market Integrity Coalition (CMIC), which now includes Coinbase, Circle, Anchorage Digital, Gemini, Robinhood and 33 other leading firms, in order to advance market integrity standards.

Solidus Labs

Solidus Labs is the category-definer for crypto-native triple T (3T) market integrity solutions - trade surveillance, transaction monitoring, and threat intelligence. Our mission is to enable safe crypto trading throughout the investment journey across all centralized and DeFi markets. As the founder of industry leading initiatives like the Crypto Market Integrity Coalition and DACOM Summit, and in everything we do, Solidus is deeply committed to ushering in the financial markets of tomorrow. To learn more, please visit: https://soliduslabs.com/

Disclosures:

This report is made based on readily available information and data, to provide a point-in-time snapshot of where digital asset regulations currently stand. The markets, products, and services continue to evolve, and regulations are evolving to respond. The nature of the report will inevitably include subjective impressions.

The report does not cover countries or jurisdictions where access to digital asset regulatory information is limited. While regulatory information is included for some jurisdictions that do not provide official translations of their regulatory documents in English, the accuracy of that information is subject to the accuracy of the translation.

This report has been compiled for informational and educational purposes only and should not be construed as personal investment advice or legal advice. While the information provided is believed to be accurate, it may include errors or inaccuracies. Any investments, trades, regulatory and legal actions, speculations, or decisions made on the basis of any information in this report, expressed or implied herein, are committed at your own risk, financial or otherwise. We always recommend you consult with experienced outside experts and/or consultants who can discuss your specific situation.


Contacts

Solidus Labs Media:
Trevor Davis
Gregory FCA for Solidus Labs
443.248.0359
trevor@gregoryfca.com

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First published on Tue, Jul 26, 2022

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Solidus Labs Global Crypto Regulation Index (GCR Index) Crypto Market Integrity Coalition (CMIC) DACOM Summit Crypto

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