As 2024 drew to a close, a year marked by pivotal decisions for Bitcoin and other cryptocurrencies, China released its 2024 Financial Stability Report, shedding light on global and regional developments in the crypto space.
The report, issued by the People’s Bank of China, touched on various aspects of the cryptocurrency sector, with particular attention to Hong Kong’s evolving approach.
The document highlighted Hong Kong’s strides in regulating crypto assets, emphasizing its active efforts to establish a framework for managing licenses. While many global regions have taken restrictive measures, including outright bans in 51 countries and regions, the report noted a shift in 2024, with some nations easing or completely lifting their prohibitions.
A notable section of the report examined the rise of Bitcoin and altcoins, tracing their growth back to 2023. Despite existing bans, cryptocurrencies continued to be a focal point for regulators worldwide in 2024. The report paid special attention to developments in the United States, particularly actions taken by the SEC.
It detailed how the SEC had previously rejected over 20 spot Bitcoin ETF applications between 2018 and 2023 but approved them for listing in January 2024. However, the SEC Chairman cautioned that this approval did not signify endorsement, urging investors to remain vigilant about the risks associated with Bitcoin-related products.
Beyond the U.S., the report explored regulatory progress in other regions, including the European Union’s MiCA framework, as well as initiatives in the United Kingdom, Singapore, and Japan. The report also revisited China’s own stringent stance, established in 2021, when all cryptocurrency-related activities were banned. Speculation persists, however, that these bans could be reconsidered in the coming years.
