Regulatory Developments for 2021 (January 2021)

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Foreword: METI Advisory wrote this report for SEBA Bank AG. Abstract: In 2021 we expect the following digital regulatory developments: 1) A handful of Central Banks (CBs) will go live with their respective digital currencies; 2) The Financial Action Task Force (FATF) will continue to enforce the Travel Rule and expand its reach to Decentralised Finance (DeFi); 3) The Basel Committee on Banking Supervision (BCBS) will introduce a crypto prudential regulation; 4) GSC projects will box themselves through a challenging regulatory journey; 5) The U.S. Securities and Exchange Commission will approve the first crypto ETF; 6) The regulatory enforcement tool will materially shape sustainable cryptofinance; 7) The US will materially clarify and align its cryptofinance regulatory framework. We hold as certain that Switzerland will complete its comprehensive digital regulatory framework and that taxation frameworks will develop across the globe. These developments will support further mainstream adoption of cryptofinance, by providing certainty to the actors and a structure to the activities.