Regulatory Shifts 2024: Anticipating Change, Mitigating Risk

One of the most impactful trends we’re tracking is the global convergence of data protection regulations. While the EU’s GDPR set the initial benchmark, we’re seeing countries from Brazil to India implement similar comprehensive data protection frameworks. Companies operating globally must prepare for a more complex, but potentially more harmonized, data governance environment.

In the financial sector, the rise of decentralized finance (DeFi) and cryptocurrencies is prompting a regulatory reckoning. We anticipate more clarity around crypto asset classification and stricter AML/KYC requirements for DeFi platforms. Forward-thinking financial institutions are already developing compliance strategies for this new paradigm.

Environmental regulations are another area of intense activity. The EU’s Carbon Border Adjustment Mechanism, set to be fully implemented by 2026, will have far-reaching implications for global trade. Companies in carbon-intensive industries must start preparing now, assessing their carbon footprints and exploring mitigation strategies.

We’re also closely watching the evolution of AI governance. While comprehensive AI regulations are still in development in most jurisdictions, we expect to see more sector-specific rules emerge, particularly in high-stakes areas like healthcare and financial services.

In response to supply chain disruptions, many countries are implementing new regulations aimed at increasing resilience and transparency. This includes stricter reporting requirements on sourcing practices and potential incentives for reshoring certain industries.

Lastly, the gig economy continues to be a regulatory flashpoint. We anticipate more jurisdictions will follow the lead of countries like Spain in clarifying the employment status of gig workers, with significant implications for labor laws and business models in the sharing economy.

To navigate this complex regulatory future, companies need to adopt a proactive stance. This means not just complying with current rules, but anticipating future trends and engaging with regulators to help shape sensible, innovation-friendly policies. At Belterra Group, we’re committed to helping our clients not just react to regulatory shifts, but to turn regulatory foresight into a competitive advantage.