Commission on the Science and Technology for Development

Topic Summary: Cryptocurrency Regulation

Cryptocurrency has grown from a niche technology on someone's PC in a basement into a multi-trillion-dollar global market. But because it crosses borders instantly without needing a bank's or government's approval, no single country can regulate it alone, making it a modern issue of world politics that forces bodies like the FATF, G20/FSB, IMF, and OECD to coordinate rules on money laundering, financial stability, and taxation across very different economies. Wealthier nations like the U.S. and EU have built comprehensive frameworks (the GENIUS Act and MiCA) focused on stablecoin oversight and consumer protection, while China has banned crypto outright in favor of its state-controlled digital yuan, and many developing economies have embraced looser regulation since crypto offers financial inclusion and cheaper remittances where banking is weak. However, this creates a dependency problem, since most major stablecoins are backed by USdD meaning smaller countries risk tying their financial systems to U.S. monetary policy and losing control over their own currency. Cybersecurity failures at exchanges and stablecoin issuers add further risk, as hacks and collapsed reserves have repeatedly wiped out billions overnight, raising fears of an international financial crisis. Ultimately, delegates must weigh innovation against stability, decide how much regulatory power states should cede internationally, protect smaller economies from dependency and systemic risk, and determine what minimum global standards should govern security, oversight, and crisis response in a modern era.