Blockchain technology may have started out as just the technology that powers Bitcoin and other cryptos, but it's now being adopted by different industries, including gaming and logistics. This emerging technology is changing the way the world interacts by introducing decentralized ecosystems that are challenging today's centralized infrastructure.

This is particularly evident in blockchain-based innovations developed across multiple jurisdictions and in the regulatory frameworks implemented to support this upcoming niche market. This article will highlight five major jurisdictions, including Germany, Singapore, the United States, Australia, and the European Union, all of which are adopting blockchain technology in one way or another. However, there are still some gaps in integrating blockchain technology and standardizing the Crypto market.

1. German

Germany, one of the leading countries in adopting blockchain technology, developed a strategy in 2019 that focuses on more than 40 individual measures. And implemented a specific regulatory framework for Crypto assets earlier in 2021. The new regulatory framework defines Crypto assets as a financial instrument called "KWG".

German authorities have been supportive of Germany playing a leading role in Europe when it comes to blockchain technology innovation. The country's digital association Bitkom is one of the key players in this milestone. Germany recognizes the potential of blockchain technology, especially for creating digital identities, according to a digital summit held by the German government on May 18, 2021.

2. Singapore

Singapore is one of the most dynamic financial jurisdictions in Asia, with several multinational institutions providing financial services around the world. In recent years, Singapore has also invested heavily in technological innovation, including blockchain technology innovation. In December 2020, the Singapore government allocated $12 million to promote blockchain innovation and adoption for commercial use.

In addition to the above support, the Monetary Authority of Singapore (MAS) has also expressed interest in the development of blockchain technology. The Monetary Authority introduced a regulatory framework for Crypto assets. The Payment Services Act (PSA) came into effect in January 2020. Singapore has also spearheaded the establishment of Project Ubin, a government-backed blockchain payments project.

3. The U.S.

The United States, known for its position as the world's financial center, is also playing catch-up with the trend in blockchain technology, despite initially adopting a negative attitude toward the Crypto space. This can be seen from the recent developments that regulators are actively discussing the possibility of adopting blockchain and formulating a regulatory framework for the Crypto market.

While there are no specific regulations on Crypto, stakeholders in the U.S. government have taken a securitization approach to try to enforce regulation. However, this is set to change following US Treasury Secretary Janet Yellen's recent call for regulation of the Crypto sector. SEC Chairman Gary Gensler recently stated that "in my view, the legislative focus should be on Crypto trading, lending, and DeFi platforms."

4. Australia

Australia has also made great strides in adopting blockchain technology. The Australian government released its 52-page blockchain industry Roadmap in February 2020. The Blockchain Industry Roadmap highlights the potential of blockchain technology and proposes ways to design industry-specific regulatory frameworks.

Meanwhile, the Australian tax authority has been cracking down on tax evaders in the Crypto space, with the latest announcement requiring more than 300000 Crypto users to file their 2021 taxes. According to ATO Deputy Director Tim Lu, tax officials are "shocked" that some Crypto users evade taxes in an anonymous manner, but this may not always be the case. "While Crypto seems to operate in an anonymous digital world, But we can closely track how it interacts with the real world through data from banks, financial institutions and Crypto online exchanges to track the flow of money to taxpayers."

5. The European Union

The European Union has been making headlines in the blockchain and Crypto industry since European central bank (ECB) president Christine Lagard hinted at the possibility of launching a digital euro. The project is now in its early stages and the current focus is on the design for market compatibility. The ECB is currently conducting an exploratory period for the next 24 months. So far, the ECB has conducted pilot tests of digital euros offered by blockchain technology, including Tezos, a blockchain ecosystem focused on security and scalability. According to the latest news, Tezos is one of the blockchain platforms capable of supporting the digital Euro and is able to achieve interoperability with the existing fiat currency system.