2024: A Landmark Year for Global Crypto Regulation
The year 2024 stands out as a turning point in the evolution of cryptocurrency regulation worldwide. As digital assets continue to integrate into mainstream finance, policymakers worldwide have accelerated efforts to introduce robust regulatory frameworks.
Global Crypto Policies: Key Developments
United States' Strategic Bitcoin Reserve
The United States president-elect unveiled plans to establish a strategic Bitcoin reserve in a groundbreaking move. This initiative sparked debates and inspired other nations, including Russia, Japan, and Thailand, to explore similar strategies. This shift indicated that governments now view Bitcoin as a strategic asset rather than an experimental tool.
Europe’s MiCA Regulations
The European Union took boldly stance with its Markets in Crypto-Assets (MiCA) directive. This policy compelled crypto exchanges to delist non-compliant stablecoins to meet regulatory standards. Despite these restrictions, Tether maintained its dominance, growing its market share globally.
UAE: A New Era of Crypto Regulation
Multi-Regulatory Oversight
In the UAE, five regulatory bodies now govern virtual asset service providers (VASPs). Companies can select the regulatory framework most suitable to their operations, provided they comply with overarching federal laws.
Stablecoin Regulations
In June 2024, the Central Bank of the UAE (CBUAE) introduced the Payment Token Services Regulation through Circular No. 2/2024, which governs stablecoin issuance. Businesses must accept only dirham-backed stablecoins issued by CBUAE-approved entities after a 12-month grace period.
The Abu Dhabi Global Market (ADGM) implemented a similar regulatory framework for stablecoins, requiring issuers to maintain full reserves, adhere to strict governance policies, and ensure transparency.
Tax Exemptions on Crypto Transactions
The Federal Tax Authority announced that all cryptocurrency transactions would be exempt from value-added tax (VAT), effective retroactively from Jan. 1, 2018. However, this exemption applies only to centralized exchange trades where VAT was previously charged on fees.
Digital Assets Recognized as Property
Dubai’s International Financial Centre (DIFC) enacted the Digital Assets Law No. 2 of 2024, recognizing digital assets as tangible property under English common law principles. This step marked a significant milestone in crypto property rights.
Legal and Marketing Milestones
Crypto Bonuses in Employment Contracts
In a noteworthy legal decision, a Dubai court upheld an employment contract that included bonuses payable in the company’s native crypto tokens. However, contrary to some media claims, this ruling does not extend to full salary payments in cryptocurrency.
Stricter Marketing Guidelines
The UAE introduced stringent marketing rules for digital assets. Promoters must disclose risks, refrain from guaranteeing returns, and operate within licensed frameworks. Non-compliance could result in fines exceeding $2 million.
Global Players Flock to the UAE
The UAE’s regulatory clarity attracted major crypto players in 2024. Binance, Crypto.com, OKX, and Bybit obtained VASP licenses, expanding services such as lending, derivatives trading, and exchanges. Ripple received approval from the Dubai Financial Services Authority, while companies like Circle and eToro expanded operations in the ADGM.
Dubai’s DMCC Crypto Center also welcomed new entrants, reinforcing its position as a key hub for the crypto industry.
Preparing for 2025: The Road Ahead
As 2024 concludes, the regulatory momentum is expected to intensify. The United States’ Bitcoin reserve and Europe’s tightening MiCA policies will shape the global market. In the UAE, more granular rules for token issuance and stablecoins are anticipated, alongside stricter anti-money laundering measures.
Crypto stakeholders are advised to prepare for deeper regulatory oversight and enhanced global cooperation in 2025.
