The U.S. moves towards regulatory clarity
- In the U.S., 2025 brings a shift to a more cryptofriendly regulatory stance. The new administration has demonstrated the end of the previous “regulation by enforcement” approach and instead craft clearer rules for digital assets.
- Lawmakers are revisiting a suite of crypto bills to clarify oversight (resolving the SEC vs CFTC jurisdiction tussle) and establish stable regulatory guardrails, which could finally give the industry longsought clarity.
Asia’s proactive crypto regulations
- Asian financial centres are stepping up their crypto frameworks to foster growth while managing risks. HK SAR aims to become a regional digital asset hub and has introduced new licensing regimes for exchanges (including over-the-counter trading and custody services) and is reviewing rules for crypto derivatives and lending. Its regulators are also drafting strict stablecoin requirements. Similarly, Singapore has finalised a stablecoin framework and maintains a rigorous licensing regime for crypto firms, seeking to balance innovation with investor protection across the Asia-Pacific region.
MiCAR’s transitional period creates uncertainty
- While the EU’s Markets in Crypto-Assets Regulation (MiCAR) has taken effect, a transitional “grandfathering” period allows existing crypto firms to continue operating under national rules until mid-2026. However, some EU countries have set stricter or shorter timelines, leading to regulatory inconsistencies across the bloc.
- Firms must navigate these variations while preparing for full MiCAR compliance, as differences in implementation could impact market access and operational strategies.
Middle East and emerging market frameworks
- New regulatory regimes for crypto are taking shape in the Middle East and other emerging markets. The United Arab Emirates, for example, has established comprehensive crypto-asset frameworks (through regulators like Dubai’s VARA and Abu Dhabi’s FSRA) to attract fintech investment.
- Elsewhere, countries from Bahrain to South Africa have rolled out licensing rules for crypto exchanges and token issuers, reflecting a global trend of regulatory adoption beyond the traditional financial centres.
UK’s cryptoasset regime in progress
- The UK is advancing an extensive regulatory framework for cryptoassets. In late 2024 HM Treasury confirmed it will bring a broad range of cryptoasset and stablecoin activities into the regulated financial services perimeter.
- The Financial Conduct Authority (FCA) has started the consultation process on detailed rules, covering areas including trading, custody, disclosures and crypto staking 2025 and implement the full crypto framework during 2026.
Integration of crypto into traditional finance
- Authorities are increasingly facilitating the convergence of digital assets with mainstream finance. Several jurisdictions have launched sandboxes and pilot programmes for tokenization of traditional securities. The EU and UK are each testing blockchain-based issuances of government bonds and running digital securities sandbox to bring distributed ledger technology into capital markets. Likewise, the approval of crypto-based investment products (such as exchange-traded funds and tokenised deposits) globally indicates a trend toward integrating crypto within regulated financial systems.