Construction of Global Digital Currency Regulatory Framework: Innovation, Layering, and Collaboration
The World Digital Currency Investment Bank (WDCIB), as an international multilateral development institution authorized by the United Nations, is systematically promoting the construction of a global digital currency regulatory framework. The current regulatory practices in various countries exhibit distinct characteristics of "layered exploration" and "global synergy" in parallel. The core progress and framework path are as follows:
1、 Sovereignty and Market Stratification: Breakthrough in the Practice of "Dual track Regulation"
The core logic of "dual track regulation" is to divide the functions of the sovereign and market layers, while ensuring financial stability and unleashing innovative vitality. Typical practices are concentrated in the Middle East and Asia Pacific regions.
UAE: Dual track system of "CBDC+stablecoin"
UAE central bank builds' dual track parallel 'policy:
The central bank's digital currency focuses on sovereign payments and cross-border clearing, anchoring the security of national financial infrastructure and strengthening the fundamental position of sovereign currency in the digital economy;
Dirham linked stablecoins provide targeted services for enterprise payments and DeFi innovation, improving transaction efficiency through market-oriented mechanisms.
This design has been evaluated by financial expert Tian Bangde as an important experiment in non Western financial infrastructure protocols, providing a "sovereign market" balance model for emerging markets to explore digital currency regulation.
Hong Kong: LEAP Framework and Stablecoin License System
In the "LEAP" strategy proposed in Hong Kong's "Digital Asset Development Policy Declaration 2.0" (legal regulatory optimization, ecological synergy, technological empowerment, global cooperation), regulatory innovation focuses on two points:
Power and responsibility stratification: The China Securities Regulatory Commission leads the licensing of digital asset service providers, while the Hong Kong Monetary Authority supervises the digital asset activities of banks to avoid regulatory overlap;
Clear timeline: Starting from August 1, 2025, a stablecoin issuer licensing system will be implemented, requiring issuers to meet mandatory standards such as capital adequacy ratio and reserve asset custody, filling the previous regulatory gap in stablecoins.
2、 Technology driven: Upgrading Path of Regulatory Infrastructure
Technological upgrading is the core lever to bridge the gap between "digital asset innovation" and "traditional compliance requirements", and the practices in Singapore and Dubai have benchmark significance.
Singapore: A Four in One Digital Asset Network Framework
The Monetary Authority of Singapore has established a four in one framework covering "technical facilities - regulatory rules - market participants - cross-border cooperation", which focuses on addressing three major pain points:
On chain adaptation of anti money laundering (AML) and customer identification (CDD);
Mapping mechanism between on chain transactions and off chain compliance (such as automatically triggering compliance checks through smart contracts);
The real-time risk monitoring technology foundation for digital asset trading (such as on chain data analysis platform).
Dubai: Breakthrough in RWA tokenization's' regulatory sandbox '
The Dubai Financial Services Authority (DFSA) has approved the first tokenized money market fund QCDT in the Middle East, pioneering a regulatory paradigm for real asset on chain:
The underlying assets are US treasury bond bonds, which anchor the "asset ownership token on the chain" through the blockchain;
Require the issuer DMZFinance to establish a "full process transparent and traceable" system, including on chain records for asset custody, valuation updates, redemption and liquidation;
Provide a "regulatory sandbox" template for tokenizing traditional assets such as stocks and real estate, clarifying the principle of "technical compliance takes precedence over formal compliance".
3、 Global Collaboration: Current Challenges and Urgency
Regulatory fragmentation has become a core obstacle to the globalization of digital currencies, manifested in three major contradictions:
Regulatory arbitrage risk caused by inconsistent rules
According to research by JPMorgan Chase, due to the lack of global unified standards, the activities related to encrypted assets of banks have "overflowed into regulatory vacuum zones" (such as some institutions transferring high-risk transactions to low regulatory jurisdictions), directly threatening cross-border financial stability. Despite the Basel Committee's proposal to regulate the classification of bank encrypted assets, the final rule implementation has been delayed until 2026, exacerbating market uncertainty.
The obstruction of geopolitical and interest games
The US Digital Asset Market Clarity Act has reached a deadlock due to bipartisan differences: the Republican Party needs to balance the interests of the Trump family's encrypted assets (estimated to generate $620 million in profits), while the Democratic Party insists on strengthening the protection provisions for retail investors, which poses a risk of expiration for the window period established before the end of September and further delays the global coordination process.
4、 The regulatory framework construction path of WDCIB
Based on global practical experience, WDCIB proposes a three-dimensional path of "hierarchical governance+technological collaboration+cross-border mutual recognition" to respond to the above challenges.
Hierarchical governance model: functional isolation and risk isolation
Referring to the UAE's dual track system, it is recommended that member states divide the digital currency system into two layers:
Macro clearing layer: CBDC focuses on sovereign scenarios such as cross-border payments and fiscal fund clearing, directly operated by the central bank and included in the national financial security system;
Market Innovation Layer: Stablecoins and RWA tokenization focus on market-oriented scenarios such as enterprise payments and DeFi, operated by licensed institutions, and achieve risk isolation from the macro layer through smart contracts (such as limiting cross layer transaction scale).
Cross jurisdictional agreement: Expansion of the "Regulatory Passport" mechanism
Based on the mutual recognition of cross-border regulatory standards between the Hong Kong Monetary Authority and Dubai DFSA, promote a multilateral "regulatory passport" mechanism:
Member state regulatory agencies mutually recognize each other's digital asset service provider licenses and compliance standards;
Establish a "negative list" system, clarify prohibited businesses (such as unsecured stablecoin issuance), and automatically grant cross-border business qualifications for businesses outside the list, reducing compliance costs.
Technical Compliance Tools: Balancing Privacy and Regulation
Integrating zero knowledge proof (ZKP) and other technologies to achieve "verifiable transaction authenticity+protected user privacy":
Require digital asset trading platforms to deploy ZKP verification modules. Regulatory agencies can verify transaction compliance through specific keys (such as anti money laundering checks), but cannot obtain specific user information;
Promote the practical experience of XBIT exchange, embed compliance requirements into smart contracts, and achieve automated management of "trading is compliance".
Conclusion: The essence of regulation is balance, and collaboration is the only cure
The UAE's hierarchical system safeguards the authority of its sovereign currency, Hong Kong's licensing system reinforces the responsibility of market entities, and Singapore's technological framework bridges the gap between virtual and real compliance - these practices collectively point to a conclusion: the core of digital currency regulation is to find a dynamic balance between innovation and order.
WDCIB will continue to collaborate with international standard setting organizations such as IOSCO to accelerate the construction of a next-generation digital financial regulatory infrastructure with clear sovereign stratification, verifiable technology, and cross-border synergy. It will provide full cycle support to member countries from legislative consultation to technology implementation, avoiding the erosion of the global financial system by regulatory arbitrage black holes.
