Three Instances of Government Who Makes Crypto History in 2022

Gita Fitria Ramadani . January 02, 2023


Picture: euronews

Techspace - 2022 wasn't the best year for the reputation of crypto among policymakers and regulators. However, some officials were brave enough to embrace the innovation despite the market collapse and the industry's repeated public attacks.

While some names are not brand-new, others have made significant progress to warrant inclusion on this list. While Brazil and the Central African Republic have legally recognized cryptocurrencies, El Salvador and the United Arab Emirates have continued to push their crypto agenda, and the United Kingdom has made significant efforts to establish the regulatory foundation.

The United Kingdom

Picture: bitcoinist

The year certainly wasn't kind to Great Britain. After 70 years of service, Queen Elizabeth II passed away in 2022. Boris Johnson and Liz Truss resigned as prime ministers. However, the tumultuous government continued working on crypto regulation. Furthermore, the United Kingdom still makes a significant case for a national regulatory framework, even if the results of this work could be more impressive.

The United Kingdom's goal of becoming a global center for cryptocurrencies was reaffirmed in the Financial Services and Markets Bill, which was introduced in July. Stablecoin regulations were expanded, and the term "Digital Settlement Assets" (DSA) was coined. The bill will grant the Treasury authority to regulate DSAs, including insolvency arrangements, service providers, and payments.

The Economic Crime and Corporate Transparency Bill, which was presented in May, called for "creating powers to more quickly and easily seize and recover crypto assets" in order to lessen the dangers faced by people who are the targets of ransomware attacks.

The British Web3 community celebrated a significant legal precedent this year. Nonfungible tokens (NFT) are considered "private property" by the London High Court of Justice, which is the closest analog to the United States Supreme Court.

United Arab Emirates

Picture: fintech news middle east

The United Arab Emirates took a calculated approach to cryptocurrencies and proceeded steadily to establish a regulatory framework and attract international investors. This may be why the nation appears on the Cointelegraph list twice a row.

Dubai enacted a crypto legal framework in March to " design much-warranted international standards" for industry governance and protecting investors. Except for the Dubai International Financial Centre, the Emirate's extraordinary development and free zones were granted enforcement authority by the newly established Dubai Virtual Asset Regulatory Authority (VARA). One of the first crypto exchanges to obtain the same license was the now-defunct FTX.

Another emirate, Abu Dhabi, thought of draft suggestions for NFT exchanging. Multilateral trading facilities (MTFs) and virtual asset custodians (VACs) were permitted to operate NFT marketplaces, and they designated NFTs as intellectual property rather than "specified investments or financial instruments."

Dubai launched the Dubai Metaverse Strategy in July, intending to make the Emirate one of the top ten metaverse economies in the world. Utilizing accelerators and incubators to attract businesses and projects from abroad, as well as supporting metaverse education for developers, content creators, and users, it includes R&D collaborations to enhance the Metaverse's economic contributions.

In the Metaverse, the nation even established its first city. It was dubbed the Sharjahverse and described as a "photorealistic, physics-accurate" metaverse covering 1,000 square miles of the Emirate's surface. The virtual city will support the local tourism industry, and new metaverse jobs may be created.

The Central African Republic

Picture: pymnts

The Central African Republic (CAR), with a population of 5 million, became the first nation on the continent to legalize the use of cryptocurrencies in financial markets in April. The cryptocurrency bill, which lawmakers approved all at once, made it possible for businesses and traders to pay in crypto and authorized entities to pay taxes in crypto.

Sango Coin, a digital currency issued by the local central bank (CBDC), went live in July with the intention of raising nearly $1 billion over the next year. However, the coin has only been sold for $1.66 million thus far.

Additionally, the nation had announced its intention to permit foreign investors to acquire citizenship for $60,000 in Sango Coins. However, the CAR's highest court ruled that this initiative was invalid.

The Bank of Central African States (BEAC) opposed adoption, stating that the legislation would have a "substantial negative impact" on the Central African monetary union.

Overall, 2022 had few friendly regulations. The race for the first comprehensive crypto framework in the United States and potential liberalization in Hong Kong and South Korea will make the following year even more intriguing.

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