Report: More than 100 regulatory directives issued for the crypto industry in 2022

Since the start of the year, authorities in 42 countries have approved 105 ‘regulatory measures and guiding directives’ for participants in the crypto industry. Such assessments were provided by Huobi Analytics in its annual report.

“Geographic Analysis of the #Crypto Industry” analyzed by the 2nd chapter of the #Huobi Research 2022-2023 annual report. This chapter has a deep dive into regional market traffic and industry.

Check it out⬇️https://t.co/ivepoDYY8w pic.twitter.com/rIb7Bcb1wf

— Huobi Research (@Huobi_Research) December 12, 2022

According to the study, regulations in the United States, the European Union and South Korea are the most detailed.

In the leading jurisdiction, a total of 22 federal laws and state-level regulations affecting everything—from crypto transactions and guidelines to court decisions and stablecoins—were enacted.

After collapse of FTX global regulators urged the formation of unified regulation of digital assets with the aim of taming the ‘Wild West’ and protecting consumers, the study says.

Analysts also focused on progress in the emergence of Web3-industry, which “was accompanied by losses, growth and innovations”.

Despite the turbulence triggered by the collapse of a number of players (which reduced market capitalisation by $2.2 trillion), digital assets were used by around 320 million people. Across all funding rounds, the industry attracted $27.7 billion, according to the analysts.

NFTs became the most discussed direction

In the top five analysed search queries, ‘non-fungible tokens’ overtook ‘DeFi’, ‘GameFi’, ‘cryptocurrencies’ and ‘BTC’.

Interest in this sector was particularly strong among users in China, Hong Kong, Singapore, Nigeria and Taiwan.

“NFTs can be integrated into sport, art, entertainment, increasing the number of use cases on a broader scale”, the specialists explained.

Analysts pointed to the emergence of projects with real utility, such as authenticity certification for mined diamonds. Some developers focused on creating ‘family’ NFTs.

Venture investors focused on GameFi and the metaverses

For the second year running, startups in these areas attracted more funds than those in infrastructure, trading and lending. In 2022, the capital raised by GameFi and metaverse companies rose from $874m to $2.4bn. Their share of total venture investment in the industry stood at 11.93% and 6.03% respectively, compared with last year’s 12.21% and 4.96%.

The United States dominates CEX usage

In terms of traffic to centralized platforms (CEX), with a 10% share, users from the United States took the top spot. They were followed by residents of South Korea (7.4%), Russia (6.1%), Turkey (5.6%) and Japan (3.8%).

The United States also topped the ‘maturity’ ranking of crypto-market development. It is based on four key indicators:

• the number of cryptocurrency holders;
• the share of CEX trading volume;
• the share of DeFi volume;
• internet-user activity.

Recall, in one of Huobi’s previous studies, analysts called the Stock-to-Flow model unsound.

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