Author: Insights4.vc Translator: Shan Ouba, Jinse Finance
In 2025, global cryptocurrency regulation has entered a critical moment, and major jurisdictions are strengthening their supervision.
In Europe, the Markets in Crypto-Assets Regulation (MiCA) will take full effect in December 2024, establishing comprehensive standards for crypto services and stablecoins. Meanwhile, the United States is actively developing the future direction of crypto regulation. On April 3, 2025, the U.S. House of Representatives Financial Services Committee passed the STABLE Act (HR 2392); and on March 13, 2025, the Senate Banking Committee passed the bipartisan GENIUS Act by 18 votes to 6.
At the global level, some key institutions are also influencing policy making: the Bank for International Settlements (BIS) published a research report in April 2025, recommending strict reserve requirements for stablecoins; the Financial Action Task Force (FATF) conducted a public consultation on the revision of the "Travel Rule" between February and April 2025, intending to include all crypto payments in the scope of application; the capital rules for crypto assets formulated by the Basel Committee officially came into effect on January 1, 2025.
In Asia, regulators are also following up quickly: the Hong Kong Securities and Futures Commission (SFC) issued new rules on crypto staking in April 2025, further improving its exchange licensing system implemented in 2023; Singapore has completed the formulation of a stablecoin licensing framework since August 2023. In the Middle East, the Dubai Virtual Asset Regulatory Authority (VARA) took the lead and issued updated crypto marketing regulations in October 2024, while Bahrain updated its crypto rules in February 2024.
In emerging markets in Africa and Latin America, regulation is also advancing rapidly: Kenya received regulatory guidance issued by the International Monetary Fund (IMF) in January 2025; Brazil plans to implement crypto regulations in phases by the end of 2025; Argentina launched a regulatory sandbox in early 2025 to pilot tokenized securities.
Global Regulatory Heat Map
The maturity of crypto regulation around the world ranges from “comprehensive regime” to “full ban.”
Comprehensive regimes : The EU (MiCA), the UK (crypto regulations under the forthcoming FSM Act), Singapore (Payment Services Act and Stablecoin Regulation), Hong Kong (licensing regime), Switzerland and Australia all have detailed regimes. Japan, Canada and some Caribbean financial centres also have relatively mature crypto rules.
In Progress : The United States is debating major crypto regulations (e.g., Stablecoin Act, FIT21), but has not yet formally legislated. South Korea has implemented the Virtual Asset User Protection Act (VAUPA) in July 2024. Brazil passed legislation in 2022 to lay the foundation, and the central bank aims to introduce the first phase of rules by the end of 2025; President Campos Neto said in October 2024 that stablecoin rules and a complete VASP framework will be introduced next year. India submitted a new Income Tax Bill in February 2025, formally defining "virtual digital assets", but still retaining a 30% tax rate and 1% TDS, and requiring the Ministry of Finance to propose possible reforms by July 2025. South Africa and Israel are developing regulatory frameworks. Mexico, Colombia, and the Philippines regulate crypto transactions and payments under their fintech laws.
Initial stage : Many countries are still in the exploratory stage. For example, Mexico allows crypto activities under the Fintech Law, but is still perfecting the details; Argentina and Ecuador are piloting tokenization regulatory sandboxes. African markets such as Kenya and Nigeria are studying crypto laws with the support of the IMF and the World Bank. In addition to Brazil and Argentina, Chile, Peru and other countries in Latin America are also paying close attention to the development of the crypto market.
Restrictive : Some countries allow only limited crypto activities. For example, Qatar’s new digital asset framework explicitly excludes cryptocurrencies and stablecoins; Saudi Arabia has no clear crypto regulations and is cautious about them. Other Gulf countries such as Kuwait and Oman have issued warnings or maintained low involvement.
Prohibition : Countries such as China and Vietnam basically prohibit crypto trading and mining (for example, China has implemented a comprehensive crypto ban since 2021).
USA
Key points summary : US policymakers are focusing on stablecoins and cross-agency regulatory coordination. In early 2025, the House of Representatives passed the STABLE Act (Stablecoin Transparency and Accountability Act) by a bipartisan vote of 32 to 17; the Senate Banking Committee advanced the GENIUS Act (Guiding and Establishing a National Innovation System for Stablecoins in the United States Act). Both bills will establish strict reserve and information disclosure requirements for dollar-backed stablecoins, and are currently awaiting a vote in Congress.
At the same time, former President Trump publicly promoted the "National Cryptocurrency Strategy" and ordered the establishment of a cryptographic task force to study the U.S. Bitcoin reserve and digital asset reserve plan. In terms of regulation, both Democrats and Republicans have expressed concerns about the SEC's enforcement actions against issuers of crypto projects (for example, accusing token trading platforms of being unregistered securities). Relevant legislation such as the FIT21 Act aims to clarify that the SEC and CFTC will regulate crypto assets separately to avoid overlapping responsibilities.
In this regard, the bipartisan FIT21 draft (co-sponsored by Senators Scott, Hagerty, and others) will clarify the division of responsibilities between the SEC and the CFTC, and introduce a new category of "licensed payment stablecoins" to be jointly supervised by the two agencies. At the same time, regulators are also taking action: the crypto task force led by SEC Commissioner Peirce is soliciting public opinions on topics such as custody, lending, pledging, and clearing, which may relax restrictions on crypto lending and pledging under securities regulations; CFTC leadership tends to classify most cryptocurrencies as "commodities."
In addition, banking regulators are also issuing guidance related to fintech and crypto custody (OCC and FDIC have issued relevant guidance between 2022 and 2024). Overall, the market should pay close attention to the final vote on the stablecoin and exchange bill and prepare for regulatory actions by the SEC and CFTC. The emerging regulatory framework in the United States heralds clearer stablecoin standards and the redrawing of regulatory boundaries by the SEC and CFTC, which will strengthen market issuance control and anti-fraud supervision.
European Union
Summary of key points : The EU now has a unified legal framework for cryptocurrencies (MiCA), and anti-money laundering and money transfer regulations are also being strengthened. In May 2023, the EU officially adopted the MiCA Regulation, the first law covering most crypto services. MiCA's provisions on registration/licensing, transparency, stablecoin reserves and consumer protection came into effect on December 30, 2024. Regulators in member states are implementing the second phase (Level-2) of MiCA, including technical standards for stablecoin support mechanisms, trading platforms and information disclosure.
At the same time, the European Banking Authority (EBA) and the Securities and Markets Authority (ESMA) are also improving the regulation of cryptocurrencies in accordance with anti-money laundering/counter-terrorist financing regulations. It is worth noting that the EU's new "Travel Rule" regulation (No. 1113/2023) extends traditional fund transfer regulations to the crypto field and will take effect at the end of 2024. In July 2024, the EBA issued the final "Travel Rule Guidelines", which clarified the information requirements for the initiator and recipient of crypto transfers. This means that European crypto exchage and wallet services need to collect relevant user information for each transaction like banks.
In early 2025, regulators in various countries will issue relevant supervisory statements. The EU is also finalizing a revised version of the Funds Transfer Regulation to unify anti-money laundering standards for wire transfers across Europe (including cryptocurrencies). In terms of law enforcement, ESMA is reviewing key markets (such as stablecoins), and the EBA has also issued crypto custody standards. The European Central Bank and member central banks are studying how MiCA can be connected to existing payment systems, and the EU has also debated wholesale CBDC pilots.
Currently, EU crypto market operators are under a clear legal framework: service providers must register in a member state (or use a passport mechanism), comply with capital and custody rules, and fulfill KYC and travel rule obligations. For industry practitioners, this marks the end of the "crypto barbaric era" at the national level: cross-border token issuance and trading will be subject to strict supervision and capital requirements, and stablecoins must achieve 100% reserves.
MiCA Level-2 has been launched: On April 29, 2025, the European Commission adopted the first MiCA delegated regulation (RTS on market manipulation controls), and more RTS rules will be introduced in the second half of 2025.
U.K.
Key points summary : After a period of pause, the UK is bringing crypto into full regulation. Based on the Financial Services and Markets Act 2023 (FSM Act), the UK government has confirmed that it will legislate to regulate all major crypto activities (including stablecoins) at the same time, abandoning the original phased path.
At the end of 2024, the new government announced that it would expand the scope of the Financial Conduct Authority (FCA) to cover crypto trading, custody, exchanges and stablecoin issuance. The FSM Act has broadly defined "crypto assets" since June 2023 and authorized the Treasury to designate crypto activities as regulated activities.
Therefore, the UK regulatory roadmap includes: new secondary legislation (such as amendments to the Regulated Activities Order) will be passed in 2025, as well as regulatory rules issued by the FCA, covering the listing and disclosure obligations of crypto trading platforms, market manipulation rules extended to crypto (i.e. the proposed MARC system) and stablecoin redemption guarantees. The FCA has issued a discussion paper on crypto custody and pledge.
In January 2025, the government issued a decree to exclude crypto pledges from the definition of "collective investment schemes", thus giving the green light to compliant pledge services. The FCA also plans to launch a consultation in 2025 on the fund security rules for crypto custody and how pledges and lending can be included in the client funds regulatory framework.
In fact, authorized crypto companies will soon need a full FCA license, a clear custody mechanism and a new disclosure process. Banks and other UK businesses should be prepared to treat crypto assets as regulated investments and meet the corresponding capital and custody requirements. Abuse of the crypto market will also be sanctioned by UK law after these systems are implemented.
Asia
Key takeaway : Major hubs in Asia are in the process of establishing or upgrading their regulatory systems.
Japan
Japan currently has one of the most advanced regulatory frameworks for digital assets in the world. All exchanges and custodians must register under the Payment Services Act, and from June 2023, all transfers must comply with the data requirements of the FATF "travel rule", giving regulators a comprehensive view of transaction initiators and recipients. Stablecoins are classified as "electronic payment instruments". In March 2025, the Financial Services Agency (FSA) proposed legislation to allow trust-based stablecoins to invest up to 50% of their reserves in Japanese government bonds or time deposits. Around the same time, SBI VC Trade became the first institution to obtain a license to issue USDC under the regime. Consumer protection regulations are also being strengthened: a notice drafted in March 2025 requires stablecoin issuers to undergo annual audits by certified public accountants to verify asset segregation, while updated guidelines expand supervision of crypto asset sales.
Hongkong
In 2023, the Hong Kong Securities and Futures Commission (SFC) launched a new licensing system for virtual asset trading platforms, which will take effect in June 2023. By early 2025, the SFC had extended the rules to staking services. In April 2025, the SFC issued guidance allowing licensed platforms to offer crypto staking (such as Ethereum staking), but with strict conditions: the platform must have full control over the pledged assets, have a robust information disclosure and risk management system, and obtain explicit regulatory approval. This reflects Hong Kong's broader policy direction, namely the "ASPIRe" strategy - recognizing the role of staking in network security while requiring strong investor protection measures. The SFC expects to complete the finalization of stablecoin regulatory rules in 2025, and preliminary public consultation has been launched in 2024.
Singapore
The Monetary Authority of Singapore (MAS) has implemented a mature crypto asset regulatory mechanism through the Payment Services Act since 2020. In August 2023, MAS released a new stablecoin regulatory framework, requiring all fiat-pegged cryptocurrencies (such as currencies similar to USDS) to be fully backed by reserve assets and to store these reserves in regulated institutions. Singapore is expected to finalize all remaining stablecoin-related rules by 2025.
South Korea
South Korea passed the Virtual Asset User Protection Act (VAUPA) in mid-2023 and it officially came into effect on July 19, 2024. The act provides extensive protections: crypto exchage must segregate customer assets, hold insurance, perform operational reviews, and report suspicious activities. The Financial Services Commission (FSC) has announced that exchanges have strengthened their compliance systems in advance in accordance with VAUPA. More rules will be introduced in 2025, including stablecoin reserves and custody obligations.
Other Asian regions
Singapore and Hong Kong continue to lead the development of regulatory frameworks. India is reassessing its crypto policy in light of global trends. Mainland China still maintains a strict prohibition on crypto trading. Emerging markets such as the Philippines and Malaysia are moderately regulating crypto exchage and service providers, and the Indonesian central bank is also drafting a crypto licensing system.
middle East
Key Points: Gulf countries are rapidly building their own crypto regulatory systems.
Dubai (UAE)
Dubai's Virtual Asset Regulatory Authority (VARA), established by Law No. 4 of 2022, has developed a comprehensive set of crypto regulatory rules. In October 2024, VARA issued new Marketing Regulations to govern all crypto advertising and promotions to UAE residents, replacing the previous executive order. VARA's 2023 regulations cover the licensing and governance of exchanges, brokers and other crypto institutions. Between 2023 and 2025, VARA continued to expand its guidelines, focusing particularly on marketing and custody operations. In addition, Dubai's financial free zones DIFC and ADGM have also developed their own DLT (distributed ledger technology) regulatory frameworks, allowing the UAE to further consolidate its position as a regional crypto hub.
Bahrain
The Central Bank of Bahrain (CBB) established its own virtual asset regulator in 2022. In February 2024, the CBB updated its digital asset rules to align with international standards. Bahrain currently allows licensed crypto exchage and custodian service providers to operate, and enforces AML/CTF regulations on virtual asset service providers (VASPs). The country's stock exchange, the Bahrain Exchange, is also exploring the possibility of tokenizing securities.
Saudi Arabia
Saudi Arabia has yet to develop a dedicated crypto legal framework. Crypto trading is technically unregulated and not officially recognized. The Saudi Central Bank (SAMA) and the Capital Markets Authority (CMA) have repeatedly issued warnings about the risks of crypto investments. However, the country has shown interest in blockchain technology and participated in the central bank digital currency project mBridge. Comprehensive crypto laws are not expected to be introduced before the late 2020s.
Qatar
In 2024, the Qatar Financial Center (QFC) launched a digital asset framework for QFC registered entities. The framework supports physical asset tokenization and DLT applications, but explicitly excludes cryptocurrencies and stablecoins. Therefore, Qatar remains cautious, restricting direct crypto transactions but encouraging regulated tokenized financial applications.
Africa and Latin America Overview
Key points: Emerging markets are actively exploring and gradually improving crypto regulation.
Most African countries are still in the exploration stage of crypto regulation. In January 2025, the International Monetary Fund (IMF) issued a technical assistance report for Kenya, recommending the establishment of classification standards for crypto assets, strengthening institutional coordination and improving anti-money laundering supervision. The Kenya Capital Markets Authority is drafting relevant legislation. Nigeria is re-examining its regulatory strategy for crypto exchage due to being included in the gray list by FATF. South Africa's licensing system is online: since June 1, 2023, the FSCA has processed 420 CASP (crypto asset service provider) applications, and as of December 10, 2024, a total of 248 licenses have been approved; the enforcement and on-site review of the "travel rules" have been launched in the first quarter of 2025. Rwanda, Nigeria and other countries are currently focusing on the anti-money laundering compliance of VASPs.
Regulation in Latin America varies significantly. Brazil passed a national crypto law in 2023, and its central bank is implementing it in phases, with a draft expected by the end of 2024. Mexico still operates under the 2018 Fintech Law and has recently stepped up anti-money laundering reviews of crypto exchage. Argentina has had lax regulation for many years, but in March 2024, it passed Law No. 27,739 to bring VASPs under securities regulation; in April 2025, it also launched a tokenization pilot zone for on-chain securities testing. Chile and Colombia have issued relevant guidance, but they have not yet formed a complete legal system.
Cross-cutting themes
Stablecoins
Regulators around the world are converging on strict stablecoin standards. Following major fiat-pegged currencies such as USDC, the Bank for International Settlements (BIS) and central banks have also emphasized that stablecoins must be 100% reserve-backed and redeemable at any time. BIS Document 156 (April 2025) specifically calls for "targeted stablecoin regulation" with a focus on reserve assets and stress-resistant design. The EU's MiCA and some national laws require fiat-pegged currencies to have full asset backing and capital buffers. In the United States, multiple congressional bills (such as the STABLE Act, the GENIUS Act, and the proposed Federal Reserve rule) aim to require issuers to hold safety reserves at regulated banks. Globally, regulators are expected to mandate reserve certification and audits - in fact, some exchanges in jurisdictions such as Japan and parts of Europe have been required to publish reserve certification disclosures. Stablecoin regulation is becoming a core theme of Basel prudential supervision and global anti-money laundering regimes.
Financial Action Task Force Anti-Money Laundering/Countering Terrorist Financing (February 2025)
FATF’s ongoing updates are reshaping the compliance landscape for cryptocurrencies. In February 2025, the FATF convened a plenary to launch a public consultation on Recommendation 16 (“Transfer Rules”), which aims to ensure consistent originator/beneficiary data for all transfers. These revisions are expected to be completed by mid-2025 and may include structured messaging requirements (e.g., ISO 20022), lower de minimis thresholds, and expanded coverage of domestic and cross-border crypto payments. In addition, the FATF 2023-2024 Annual Report (published in January 2025) reiterates the obligation for jurisdictions to license or ban virtual asset service providers (VASPs) based on their standards. In practice, this means that licensed cryptocurrency exchanges around the world must implement strict KYC/AML controls. Many jurisdictions, including the EU, the UK, and Canada, have begun to apply the FATF’s virtual asset guidance published in 2019. As a result, any global crypto payment provider must comply with bank-like anti-money laundering requirements or risk countermeasures.
DeFi and Staking (BIS 156)
DeFi tokens and cryptocurrency staking activities are receiving increasing regulatory attention. BIS Paper 156 (April 2025) analyses the role of DeFi in financial markets and warns that without appropriate regulatory measures, DeFi could spread financial risks. Regulators are currently considering how to bring decentralized finance under the regulatory umbrella. For example, Hong Kong’s April 2025 guidance treats “staking-as-a-service” providers as institutions regulated by existing exchange licenses. Similarly, some central banks are looking at how to regulate lending and staking activities involving stablecoins through initiatives such as the Mariana Project. New guidance is expected in 2025-2026 covering stablecoin staking pools, liquidity provision and lending platforms - which will effectively apply the “same activity, same risk” principle to DeFi. For traditional financial institutions, this means that on-chain financial contracts need to be closely monitored, and custodians will also need to disclose any staking services provided to customers.
Basel Prudential Rules for Cryptocurrencies
In June 2023, the Basel Committee finalized capital standards for crypto assets, which will take effect on January 1, 2025. According to these standards, banks must classify cryptocurrency risk exposure into two categories:
Group 1 : Tokenized traditional assets and algorithmic stablecoins that meet strict standards
Group 2 : All other assets, such as Bitcoin and Ethereum
Category 2 crypto assets (Category 2b) that fail the hedge test now carry a risk weight of 1,250%; any bank whose total Category 2 exposure exceeds 1% of Tier 1 capital must charge 1,250% on the excess, and if it exceeds 2%, all Category 2 holdings will be subject to a 1,250% weight. Algorithmic stablecoins or non-redeemable stablecoins are explicitly excluded from Category 1 eligibility. These measures effectively prevent large banks from participating in pure cryptocurrencies. In addition, the rules introduce a short-term “infrastructure-plus” risk weight for any crypto-related lending. Banking regulators in the United States and Europe have confirmed their intention to enforce these standards. The practical impact is that any traditional financial institution that intends to hold or lend cryptocurrencies must set aside significant capital, reducing earnings potential and requiring strong collateral management.
Tax transparency (OECD CARF)
To combat cryptocurrency-related tax evasion, the Crypto-Assets Reporting Framework (CARF), adopted by the OECD in 2023, is being implemented globally. According to a report submitted by the OECD Secretary-General to the G20 Finance Ministers, as of February 2025, 66 jurisdictions have committed to launching CARF exchanges, 54 of which will be launched in 2027 and another 12 in 2028. CARF requires cryptocurrency exchanges and custodians to report user transaction data to tax authorities, similar to the FATCA and CRS frameworks. In practice, large cryptocurrency companies need to ensure that their AML/KYC systems are capable of collecting and storing this data. By 2025, a series of domestic regulations and international agreements are expected to put CARF into practice. Companies that fail to comply may face penalties and enforcement actions as tax authorities will begin to require detailed reports on customer balances and transactions.
Strategic Impact and Risk Checklist
Regulatory arbitrage
Differences in global regulatory regimes bring both opportunities and risks. Crypto-friendly markets such as Dubai, Singapore, and Switzerland may attract more issuance and development activities, while regions with stricter regulations (such as China, Qatar, and some US states) may experience capital outflows. Companies need to clearly understand in which markets their products can be legally offered and where key players (such as banks, exchanges, and custodians) operate. However, with the promotion of global frameworks such as FATF and Basel, globally coordinated supervision is gradually reducing the existence of "regulatory safe havens." A company's compliance strategy must cover all operating regions and take a holistic approach.
Capital occupation impact
Under the new Basel 2025 rules, banks will face higher capital requirements for crypto assets. Asset managers that hold crypto assets indirectly through banks will also face an increase in risk-weighted capital. This will increase leverage costs and reduce returns. For example, a bank-backed crypto fund may need to prepare an additional 20–30% of capital for every $1 invested. Institutions should immediately model the impact and consider transferring some crypto businesses to non-bank entities to optimize capital efficiency.
Hosting and Network Security
Increased regulation makes custody a risk focus. Countries are increasingly requiring custodians to use cold wallets, regular audits, and asset segregation. Recent high-profile cyber attacks have highlighted the need to establish a strong custody infrastructure - including multi-signature wallets, insured custody mechanisms, and operational transparency. Regulators such as ESMA and the UK FCA are actively reviewing custody standards. Under the MiCA framework, European custodians must implement client asset segregation. If traditional financial institutions (TradFi) enter the crypto custody field, they need to invest heavily in resilient systems, regulatory compliance, and customer protection, otherwise they may face enforcement risks for fraud or breach of fiduciary duty.
Asset Tokenization
Several jurisdictions are preparing to introduce legal frameworks for the tokenization of real-world assets (RWAs). The EU and the UK are exploring the listing of security tokens; Japan's DLT pilot covers government bonds; and several stock exchanges in the Middle East are testing digital bonds. TradFi institutions should prepare for the tokenization of bonds, stocks, and even loans. This will expand custody and market-making business opportunities, but also bring new risks of smart contracts and system interoperability. Companies should evaluate platform partnerships and compliance procedures related to asset traceability and transfer restrictions as early as possible.
Market Making and Liquidity
Regulators are focusing on crypto market-making mechanisms, especially automated liquidity pools. Capital and anti-money laundering obligations will reshape the way banks and brokers participate. Transparency standards such as "proof of reserves" may become mandatory requirements for exchanges. Traditional financial trading desks should expect to be limited to trading with KYC counterparties in the future, and capital occupation due to volatility may limit proprietary trading capabilities. Risk management teams should update stress testing scenarios to include crypto market volatility and chain reaction risks, especially during crises, when correlation with traditional assets may increase dramatically.
Actionable Recommendations
Develop an overall crypto strategy : Develop a comprehensive board-level strategy covering compliance, information technology, fund management and risk control, and set up a cross-departmental team to closely follow the developments of MiCA, Basel and FATF.
Strengthen anti-money laundering and tax mechanisms : Upgrade KYC and transaction monitoring systems to meet encryption-related standards and ensure that the system can support OECD CARF reporting requirements, including the digital and auditable collection of customer identity and tax residency data.
Reassess capital and financial limits : Incorporate the 2025 Basel crypto capital rules into internal models, update financial exposure limits, and consider optimizing capital efficiency through special purpose vehicles (SPVs).
Ensure the security of the custody infrastructure : only work with regulated custodians, or develop institutional-level self-operated solutions. Use multi-signature cold storage, configure insurance, conduct regular audits, and clearly disclose customer rights.
Train staff : Conduct continuous training for legal, compliance and front-office teams. Appoint a dedicated crypto compliance officer to proactively address regulatory risks.
Future Outlook (2025–2027)
Legislative developments
The EU may launch the "MiCA-2" plan to refine the rules related to stablecoins and ESG. The UK will publish detailed secondary regulations under the Financial Services and Markets Act (FSM Act) from 2025. The United States is expected to introduce a comprehensive crypto asset framework, possibly through the FIT21 Act or the Digital Commodity Market Reform Act. The bipartisan stablecoin bill (submitted in February 2025) intends to clarify the responsibilities of issuers.
Regulatory trends
Regulation is shifting to an “activity-based” approach. The Basel Committee and IOSCO are expected to jointly issue custody and lending supervision guidelines. The BIS Innovation Center’s “Project Mariana” and CBDC-related projects (such as mBridge and Project Dunbar) influence the central bank’s stance on crypto interoperability. “Proof of reserves” may become a regulatory requirement - Singapore MAS, Japan FSA, etc. are already exploring relevant disclosure mechanisms.
Market structure evolution
Tokenized trading of government bonds is gradually emerging. It is expected that by 2027, many places will pilot "on-chain T-Bills" (tokenized treasury bonds), repo markets, and blockchain-collateralized lending businesses. These developments, coupled with programmable regulation, are expected to completely change the structure of the fixed income market. Regulated crypto ETFs will expand, and the integration of traditional and decentralized markets will accelerate.
CBDC Coordinated Development
Wholesale CBDC (Central Bank Digital Currency) projects will continue to advance. BIS-led mBridge is entering its third phase, with multiple central banks participating in multiple CBDC pilots. ASEAN+3, China's e-CNY and the US's retail CBDC research will continue to influence global central bank strategies. Central banks are increasingly focusing on the interoperability between CBDC and stablecoins, as shown in Singapore's Project Dunbar.
Technology and compliance advancements
AI and machine learning will enhance transaction monitoring and anomaly detection, and vendors such as Chainalysis and TRM will continue to expand their capabilities. Privacy-preserving KYC technologies (such as zero-knowledge proofs and digital identity wallets) will be tested as regulatory compliance tools. Institutions are also preparing for quantum-resistant cryptography and distributed identity standards to meet the needs of the next generation of the crypto ecosystem.
Focus timeline (Q2 2025 to Q4 2027)
2025-Q2 : FATF completes the revision of the "Travel Rule"; Hong Kong completes the stablecoin licensing details; the US Senate deliberates on the "STABLE Act"; the EU releases MiCA secondary regulations.
2025-Q3 : BIS releases crypto policy document; Singapore releases security token guidelines; South Africa improves crypto regulations; OECD releases first CARF report; India reviews crypto tax regulations.
2025-Q4 : The Basel Committee releases a FAQ on crypto capital; the US Comptroller General releases regulatory guidance on stablecoins; the UK FCA finalizes custody rules; the EU updates AMLR and includes crypto content; Bermuda and El Salvador announce CBDC plans.
2026-Q1 : MiCA and UK crypto regulations are officially implemented; OECD CARF begins reporting; the United States releases a stablecoin regulatory framework; Brazil completes the first phase of crypto exchage rules.
2026-Q2 : BIS and IOSCO release digital asset risk report; Japan expands crypto regulations; Australia implements the "travel rule"; G20 evaluates progress in crypto and CBDC; Basel begins monitoring crypto climate risks.
