Crypto, tokens and DeFi: navigating the regulatory landscape

Policymakers face challenges in addressing the risks posed by cryptoassets and related activities due to their potential to affect consumer protection, financial stability and market integrity. This paper provides an overview of policy measures taken in 19 jurisdictions to address the risks associated with activities that incorporate cryptoassets and distributed ledger technology (DLT) programmability capabilities in financial services. The paper classifies policy measures into three categories and identifies different types of initiatives across jurisdictions, including bans, restrictions, clarifications, bespoke requirements, and initiatives to facilitate innovation.

JEL classification: F30, G18, G28, O38

Keywords: cryptoasset, cryptoasset service provider, decentralised finance, DeFi, DLT, global stablecoin, stablecoin, token, tokenised asset, virtual asset, virtual asset service provider