By 2026, stablecoins and core service providers in the UK will be fully regulated. Learn more about the crypto regulations in the UK here.

, or roughly 7 million people, now own crypto, a number that's tripled since 2021. This increasing adoption is pushing digital assets to the mainstream, but it also often leaves consumers vulnerable to 

 and other risks. In response, the UK’s Financial Conduct Authority (FCA) is lifting its ban on crypto exchange-traded notes (ETNs), launching consultations on 

 and custody, and tightening retail protections. What was once a hands-off approach is now growing into a balanced regulatory framework that supports innovation while safeguarding investors. This article explores the current state of UK crypto regulation, key issues and industry reactions, and takes a studied peep into the future.

Crypto regulations are rules created to manage activities involving digital assets. They cover issuance, trading, custody, stablecoins and more to ensure market integrity, consumer protection and financial stability.

The UK government has long signaled its intent to make Britain a global hub for fintech and digital assets. But even as mainstream adoption increased after 2020, there was little tailored legislation for cryptocurrencies. The only major action was the 

 on retail sales of crypto derivatives, introduced to reduce losses from highly leveraged, volatile products — a move which earned both praise and criticism.

This cautious attitude began to shift in 2023 and accelerated into 2025. HM Treasury introduced the 

, which gave regulators the authority to craft tailored rules for stablecoins and other crypto assets. 

Following that, the Bank of England and the FCA released 

 to establish prudential requirements for stablecoins and capital rules for firms handling digital assets.

As of mid-2025, the UK is firmly charting its own path:

What regulatory issues exist with cryptocurrency in the UK?

As the UK tries to improve crypto regulation, some pressing challenges come to the fore:

To address this threat, the FCA is tying any loosening of restrictions (such as 

) to strict suitability tests, risk disclosures and tighter financial promotion rules. Still, cleverly packaged social media advertising continues to mislead consumers, further widening the protection gap.

However, technical vulnerabilities such as hacks may still leave custodians exempt from liability, exposing clients to losses. Moreover, there’s regulatory ambiguity around crypto lending and staking, and the lack of clear distinctions between risky lending and noncustodial staking arrangements raises concerns about hidden 

DeFi’s pseudonymous and decentralized nature makes enforcement difficult. Although blockchain analytics help track illicit activity, tools like privacy wallets and mixers still enable money laundering and fraud, creating a significant regulatory blind spot.

In addition, enforcement of the Financial Action Task Force (FATF)’s 

 (which requires crypto providers to share transaction data) clashes with GDPR privacy rules, making global compliance difficult.

As UK regulations transform the crypto landscape, each asset class faces distinct implications. Traders and investors must adapt in order to engage effectively within this shifting regulatory environment. Following are some requirements for providers of crypto assets:

Why this matters for crypto traders and the industry

For traders and investors, the most immediate impact of the UK’s developing regulatory regime will be greater transparency and safety. Retail customers will have more robust custody protections, stablecoin issuers will face tough reserve requirements and brokers will need to present marketing materials that clearly explain the relevant risks. This will create a safer playing field, so that scams and reckless leverage are less likely to flourish.

More advanced traders, especially those who’ve previously relied on offshore platforms for crypto derivatives, will see UK-authorized venues beginning to offer compliant products, such as ETNs or properly regulated futures. For example, 

 to offer Bitcoin futures under clearinghouse oversight. This is a notable first for the UK — and a signal that sophisticated products will continue to come under the FCA’s watch.

Industry players — especially exchanges and custodians — will need to overhaul their processes in order to meet capital and reporting requirements. Many will be forced to introduce formal client asset protection frameworks, segregated wallets and independent audits. Stablecoin issuers will also need to show transparent 

 and subject themselves to prudential supervision, potentially weeding out lightly-capitalized operators.

For the broader sector, compliance could mean higher barriers to entry, especially for smaller start-ups. However, those who embrace these new standards may earn the FCA’s authorization, a powerful signal of credibility that can help attract mainstream customers and institutional capital.

Crypto firms operating in the UK must adopt effective strategies in order to comply with the FCA regulations. These steps help firms avoid penalties, build credibility and thrive in the UK’s regulated crypto market.

Both the FCA and Treasury in the UK have lined up a full program of reforms to roll out by 2026. The initial focus will remain on stablecoins and core service providers, followed by more detailed oversight of lending and decentralized protocols.

This gradual pace aims to give the cryptocurrency industry time to adapt without stifling innovation. However, the UK will also need to move quickly enough to match the European Union’s MiCAR regime (and similar initiatives in the US) if it hopes to remain globally competitive. The FCA itself has hinted that coordinated international regulation is necessary if countries are to effectively address the borderless nature of crypto assets and marketplaces.

Retail derivatives will stay off-limits under the current framework, at least until the FCA is convinced that consumers fully understand the risks. Even then, the regulator is more likely to focus on listed, centrally-cleared products (such as futures contracts and ETNs) that come under traditional market infrastructure and disclosure regimes.

For stablecoins, the Bank of England is expected to play a leading role in overseeing GBP-pegged tokens, potentially incorporating them into its future wholesale settlement systems. This may create opportunities for new payment solutions or institutional products tied to stablecoins that integrate with mainstream financial plumbing.

The UK is building a modern, credible framework for crypto assets, one that balances innovation with strong investor protections. Recent consultations and proposed legislation will fundamentally change the DeFi space by 2026, bringing stablecoins and key service providers into the financial mainstream. To thrive in the maturing UK market, traders and businesses need to stay sharp and informed, as these changes will introduce new risks and opportunities.

Intermediate

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Crypto regulations in the UK: Navigating the FCA’s growing rulebook

Brazil is setting the pace for crypto regulation in Latin America with its comprehensive legal framework and Central Bank–led oversight. Learn more here.

 in cryptocurrency transactions from January to May, making up 53% of Latin America’s market share. 

 of these transactions. With surging crypto adoption rates, Brazil has become a major force in the global crypto market. The Central Bank of Brazil (BCB) is now stepping in to bring clarity and control to this rapidly expanding space. 

This article explores Brazil’s emerging crypto regulations, the BCB’s plans, current challenges, impacts on traders and the industry and what lies ahead.

Crypto regulations are legal frameworks governing the use, trading and issuance of cryptocurrencies to ensure market integrity, protect investors and prevent illicit activities. 

These rules, established by governments or regulatory bodies, outline licensing for virtual asset service providers (VASPs), 

 (KYC) requirements and the legal status of digital assets. 

Brazil’s position on digital assets is comprehensively captured in its first crypto assets framework, 

 or the Brazilian Virtual Assets Law (BVAL). BVAL was passed by the Brazilian National Congress on Dec 21, 2022, and took effect from Jun 20, 2023. This legislation defines virtual assets as digital representations of value that can be traded, invested or used as payment, explicitly excluding traditional financial assets. It designates the Brazilian Central Bank (BCB) as the primary regulator, tasking it with authorizing and supervising VASPs, such as crypto exchanges and wallet providers.

 under the Brazilian Civil Code as general assets, creating ambiguity in taxation, AML compliance and investor protection. The BCB’s 

 required crypto exchanges to report transactions, but lacked a comprehensive framework. Law No. 14,478/22 addresses these gaps by establishing legal certainty, mandating VASP licensing and aligning with Financial Action Task Force (FATF) standards. The BCB has since initiated 

 in order to refine rules on asset segregation, cybersecurity and operational transparency. Public consultations ended in February 2025, and the final draft of the regulation is expected to be published soon.

, which constitute about 70% of the country’s crypto transactions. The BCB has implemented some key rules to enhance security and transparency, including limiting stablecoin transfers to self-custody wallets and imposing restrictions on transactions involving foreign currency–denominated stablecoins. 

These measures are designed to reduce fraud, money laundering and tax evasion risks by tightening know your customer (KYC) requirements and increasing monitoring of cross-border flows. However, these rules have 

 from industry players such as Coinbase, which warns of potential stifling of innovation and migration to unregulated platforms.

The BCB is advancing a phased regulatory approach, with detailed proposals expected later in the year. Brazil’s framework draws inspiration from global models such as the European Union’s Markets in Crypto-Assets Regulation (

), but tailors rules to local needs like integrating crypto with systems like 

Brazil’s move toward regulatory clarity puts it ahead of other Latin American countries, such as Argentina, which lag behind. However, the BCB faces challenges in balancing stringent oversight with pushing innovation, as overly restrictive rules could drive crypto businesses to less-regulated jurisdictions.

What are the regulatory issues with cryptocurrency in Brazil?

Prior to Law No. 14,478/22, Brazil’s unregulated crypto market faced the following significant challenges that slowed its growth and stability.

How Brazil’s Crypto regulations compare globally

Brazil’s developing framework for crypto regulation is one of the most comprehensive in Latin America, ranking the country as a potential leader in digital asset governance. Compared to countries like Argentina, which still lack a centralized regulatory framework, Brazil’s Law No. 14,478/22 and the Central Bank’s active role offer significantly more legal clarity and institutional oversight. This structured approach has allowed Brazil to address key issues — such as VASP licensing, AML compliance and asset segregation — earlier than many of its regional peers.

Globally, Brazil’s model takes some inspiration from established frameworks, such as MiCA and local innovations. For instance, while MiCA lays out uniform rules across the EU for stablecoins, Brazil has implemented tailored measures that limit foreign-currency stablecoin usage and emphasize integration with domestic tools like Pix. This localized adaptation helps ensure regulations are relevant to Brazil’s unique financial infrastructure and consumer behavior.

Nevertheless, Brazil's strict controls, especially around stablecoins, have drawn criticism for potentially stifling innovation, a concern echoed in other jurisdictions like the US and India. In contrast, jurisdictions such as Switzerland and Singapore have maintained innovation-friendly environments by offering regulatory sandboxes and clearer guidance without imposing sweeping transaction bans. 

As Brazil fine-tunes its approach, its challenge will be to maintain a competitive edge while safeguarding its growing crypto economy. The country’s ability to attract global players and retain domestic innovation will depend largely upon how flexibly it adapts its rules in the face of rapid technological change.

A sound crypto regulatory regime in Brazil will help stabilize the Brazilian crypto market and protect investors.

Brazil is set to implement significant reforms in its cryptocurrency regulatory framework, reflecting the country's growing engagement with digital assets. In 2025, the BCB plans to regulate stablecoins and asset tokenization, recognizing the increasing demand for these digital assets. Former Central Bank chief Roberto Campos Neto previously 

 over potential tax evasion and illicit activities linked to stablecoins, which account for approximately 90% of crypto transactions in Brazil. The regulatory framework aims to address these challenges while ensuring a balanced and secure environment for the country’s digital asset ecosystem.

As part of its broader regulatory agenda for 2025 and 2026, the BCB has outlined priorities that include the evolution of Open Finance, virtual asset regulations and expansion of the functionalities of Pix, Brazil’s real-time payment system. This comprehensive plan also includes measures for improving sustainability, increasing transparency in rural credit and modernizing payment schemes. These initiatives will help modernize Brazil's financial landscape, making the nation a leading hub for innovative financial technologies.

Simultaneously, Brazil's tax authority, Receita Federal (RF), is preparing to overhaul cryptocurrency tax laws, with reforms expected to begin in the first quarter of 2025. One key component of the reform is the introduction of a dedicated tax declaration form called 

 that aims to insure crypto traders submit annual tax declarations. This move is intended to enhance tax compliance and reduce the risk of tax evasion, providing clear guidelines for cryptocurrency taxation.

In line with its efforts to integrate digital assets into its financial system, Brazil is also advancing new measures, such as a bill introduced in March 2025 that allows employees to receive partial salary payments in Bitcoin. This development represents a significant step toward integrating cryptocurrencies into everyday financial transactions. 

The BCB is also progressing with the creation of Drex, a digital version of the Brazilian real that’s designed to improve transaction efficiency and security. 

These collective efforts underline Brazil's commitment to fostering a regulated, innovative environment for cryptocurrency adoption and its integration into the broader financial system.

Brazil’s crypto regulation is moving toward greater clarity, investor protection and market maturity. For traders, the new framework will offer enhanced security and a more trustworthy environment, especially through stricter KYC/AML protocols and clearer tax obligations. However, increased compliance costs and tighter restrictions may challenge innovation and drive some activity to unregulated platforms. Striking the right balance will be crucial. 

If Brazil can maintain regulatory rigor while fostering innovation, it stands to become a regional leader in digital finance. The next phase of implementation will determine whether Brazil becomes a blueprint for emerging market regulation or a cautionary tale of regulatory overreach.

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Crypto regulations in Brazil: What the Central Bank is planning

MiCAR establishes a clear and unified regulatory framework for crypto across the EU, simplifying compliance for businesses and traders. Learn more here.

The European Union (EU) is spearheading crypto’s move from regulatory limbo to defined domain. With the approval of the 

, the EU has become the first major region to implement a sweeping legal framework for digital assets. This landmark move aims to bring much-needed clarity, consistency and consumer protection to the progressive crypto universe. This article breaks down what crypto regulations are, the scope of MiCAR, the challenges involved and what it all means for traders and the industry. 

Crypto regulations are legal and procedural frameworks established by governments to oversee the issuance, trading and use of digital assets. They vary from supportive rules to outright bans, aiming to ensure market integrity and protect users.

The Markets in Crypto-Assets Regulation (MiCAR) is a pioneering comprehensive legal framework established by the European Union to regulate crypto assets and related services across EU member states. 

, it became fully effective from December 2024, with a transition period (as specified by member states) for existing businesses to adapt to the new framework. 

MiCAR was designed to enhance consumer protection and transparency, support financial stability and push innovation in digital finance within the EU. It introduces uniform rules for crypto asset issuers and service providers, including requirements for transparency, disclosure, authorization and supervision. The regulation covers specific types of crypto assets: 

The European Union has taken a proactive and comprehensive approach to cryptocurrency regulation, while still supporting responsible innovation in digital finance. With the full implementation of MiCAR in December 2024, the EU is enforcing standardized, bank-like rules for crypto asset issuers, service providers and trading platforms across all member states. This includes transparent operations, strong governance and requirements for licensing.

In addition to MiCAR, the EU has introduced complementary regulations, such as the so-called 

. Part of the Transfer of Funds Regulation (TFR), this rule mandates that crypto transactions include detailed originator and beneficiary information to enhance transparency and combat illicit activities. This move aligns with international standards set by the Financial Action Task Force (FATF). 

The EU has also extended bank-like regulatory standards to crypto activities through other regulations, including the 

 (DORA) and enhanced taxation measures under directives like 

. These rules tighten reporting obligations for crypto transactions, ensuring greater transparency across member states, though variations in national tax treatments may still exist.

While MiCAR provides much-needed legal certainty and harmonization, there are still some national differences in the civil law basics and taxation that could evolve over time. Meanwhile, EU policymakers and the European Central Bank (ECB) have independently conducted studies and trials for central bank digital currencies (

, which we may see in the future in parallel to decentralized cryptocurrencies. 

As regulations continue to develop, updates will likely address overlaps with payment services and emerging market risks, ensuring that the EU remains at the forefront of global crypto regulation.

In May 2025, Bybit secured a MiCAR license from Austria’s Financial Market Authority (FMA) , marking a major step in its European expansion. With this license, Bybit can now offer regulated crypto services across 29 EEA countries via its new European headquarters in Vienna. 

This move reflects Bybit’s strong commitment to compliance, transparency and user protection, as it gears up to hire over 100 professionals and deepen ties with local communities and universities to drive blockchain innovation across the region.

What are the regulatory issues with cryptocurrency?

Cryptocurrency regulation faces several key challenges that complicate global oversight and enforcement efforts.

The EU’s MiCAR introduces a unified regulatory framework across all EU member states. This harmonization reduces the complexity of navigating disparate national laws, simplifying cross-border trading and enabling CASPs to operate more efficiently within the EU's single market. For traders, MiCAR enhances consumer protection through stringent requirements regarding transparency, disclosure and the prevention of market abuse, building greater trust and stability in the crypto ecosystem. 

MiCAR also mandates that CASPs obtain authorization and adhere to anti-money laundering (AML) and antiterrorist financing (ATF) regulations, aligning the crypto sector with traditional financial services standards. This alignment is expected to attract institutional investors by providing a clearer legal framework and reducing the risks perceived to be associated with crypto investments.

However, the regulation imposes compliance costs and operational adjustments, particularly for smaller firms and startups that may lack the resources to meet the new requirements. Despite these challenges, MiCAR elevates the EU to a leadership position in crypto regulation, potentially setting a global benchmark and influencing regulatory approaches in other jurisdictions. 

The EU’s MiCAR sets the stage for a more stable and transparent crypto market. By creating clear rules for consumer protection and market integrity, MiCAR helps simplify the regulatory landscape across Europe, offering both traders and businesses a clearer path forward. While there are still hurdles, such as compliance costs and differences in national tax laws, MiCAR offers a solid foundation for crypto’s growth. What’s clear is that the EU is betting big on regulated innovation — and the rest of the world will be watching.

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Crypto regulations in the EU: MiCAR and what it means

This article will explore what MiCAR entails, detail Bybit EU's journey to obtaining this license and introduce the tangible benefits that it brings to crypto traders and investors in the EEA.

 (Bybit EU) recently achieved a major milestone by 

 in Austria. This is a landmark development for users across the European Economic Area (EEA). This article will explore what MiCAR entails, detail Bybit EU's journey to obtaining this license and introduce the tangible benefits that it brings to crypto traders and investors in the EEA.

What is the Markets in Crypto-Assets Regulation (MiCAR)?

, or MiCAR, is a comprehensive framework established by the European Union to regulate the crypto asset market. Introduced by the European Commission in 2020 and formally approved in 2023, MiCAR's full implementation started on Dec 30, 2024, with certain provisions for 

The primary goal of MiCAR is to create a harmonized regulatory environment for crypto assets across all EU member states. It aims to enhance transparency, ensure robust consumer protection, prevent illicit activities such as money laundering and guarantee the stability of the crypto market within the region. MiCAR applies to 29 countries within the EEA. It aims to establish a unified standard for crypto asset service providers (CASPs) and foster a safer, more reliable ecosystem for everyone involved.

In May 2025, Bybit achieved a significant regulatory milestone: Bybit Europe, operating under Bybit EU GmbH, 

 from Austria's Financial Market Authority (FMA). This officially designates Bybit EU as a regulated CASP and grants passporting rights, enabling us to offer regulated products and services to nearly 500 million people across 29 EEA member states.

Bybit chose Austria as its EEA hub because of the country’s forward-thinking regulatory environment and strong commitment to financial innovation. In addition to obtaining this license, Bybit has established Bybit EU's official European headquarters in Vienna. This new base will be pivotal for our operations throughout the EEA, allowing us to better serve the European crypto community with localized and compliant offerings.

What does this licensure mean for EU crypto users?

This development brings important changes designed to enhance the trading experience for our users in the EEA. Bybit EU GmbH is now the dedicated entity for residents within this region. The EEA includes Austria, Belgium, Bulgaria, Croatia, Cyprus, the Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, the Netherlands, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, Spain and Sweden (Note, however, that services via Bybit EU will not be available to Maltese residents at this time.)

Effective immediately, new users residing in the EEA can no longer register on the global Bybit platform. Instead, they’re invited to pre-register on the new 

. Starting Jul 1, 2025, the full Bybit EU platform will go live. On this date, existing users from eligible EEA countries will also be able to onboard to the new, fully licensed European platform, ensuring they can continue to access our services within a compliant framework.

Benefits for EU crypto traders and investors

The MiCAR framework — and Bybit EU's compliance with it — brings numerous advantages for our users. MiCAR's stringent standards translate to enhanced security measures, greater operational transparency and significantly improved consumer protection. Its framework is designed to reduce risks associated with fraud and financial crime, providing a safer trading environment.

Bybit EU is focused on delivering a suite of tailored and regulated products and services specifically for the European market. Initially, this will include seamless fiat on-ramp and off-ramp solutions, 

 for everyday crypto spending. Bybit is also establishing a dedicated EU customer support team to ensure users across the EEA receive timely assistance in various languages. This commitment to regulatory compliance and user-centric service is designed to boost trust and provide a reliable platform for all your crypto activities.

Bybit EU's MiCAR license is more than just regulatory approval — it's a foundational step toward fostering broader crypto adoption across Europe. This license allows us to tap into a vibrant market of nearly 500 million people, offering them secure and compliant access to the world of digital assets. Bybit is committed to investing in Austria's dynamic fintech and blockchain ecosystem, and to cultivating local talent and driving innovation. Our plans include hiring over 100 professionals in Vienna in order to support our European expansion.

, "We are actively collaborating with regulators and pursuing licenses globally to ensure our users can access our innovative platform with the highest levels of regulatory and compliance assurance."

Existing EEA users can switch over to Bybit EU from July 1, 2025. All eligible new users from the EEA can 

Beginner

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Bybit EU and MiCAR: What European traders need to know

The US is shifting toward lighter, innovation-friendly crypto regulation, with moves like the FIT21 Act, a repeal of SAB 121 and a more lenient SEC approach.

, but the rules governing it remain a tangled web of state laws, federal agency guidelines and developing court rulings. With the US moving toward clearer policies, crypto investors and innovators are left navigating a fragmented regulatory space. This article discusses current US crypto regulations, explores major regulatory challenges and the country’s stance on crypto, and examines the relevance of current US rules to traders and the larger industry.

Crypto regulations are legal frameworks set by governments to manage the creation, trading, taxation and use of digital assets. These regulations aim to protect consumers, prevent illegal activities and maintain market integrity.

The US regulatory stance on cryptocurrency in 2025 is moving toward greater clarity and support for innovation, though a unified federal framework is still in the works. 

, passed by the House of Representatives in 2024, aims to establish comprehensive rules for digital assets but has yet to be fully implemented. Signaling a more crypto-friendly direction, the Trump administration issued an 

 in January 2025 to create the President’s Working Group on Digital Asset Markets, with the goal of “providing regulatory clarity and certainty.” Chaired by David Sacks, the group is tasked with reviewing current laws and recommending reforms to encourage responsible innovation.

Federal agencies are gradually shifting their approach. The Securities and Exchange Commission (SEC), traditionally strict with crypto enforcement, has formed a dedicated 

. This group is working to simplify registration processes, outline disclosure expectations and provide clarity as to which tokens qualify as securities. Notably, the SEC has softened its stance on certain categories of cryptocurrencies, such as 

, indicating they may no longer be treated as securities.

Banking regulators have also relaxed their oversight. The Federal Reserve 

 prior guidance requiring banks to notify regulators before engaging in crypto-related activities, opting instead for standard supervisory oversight. Likewise, the Federal Deposit Insurance Corporation (FDIC) has 

 that banks can participate in permissible crypto activities without prior approval as long as they manage risks appropriately.

State-level regulations, however, remain highly fragmented. 

 with crypto-friendly policies, offering clear licensing and legal protections that attract 

 businesses. In contrast, some states still maintain stricter or underdeveloped frameworks, resulting in a regulatory patchwork that complicates compliance for companies operating across state lines.

In other developments, the federal government has launched the 

, an unprecedented move that integrates digital assets into national infrastructure planning. While this initiative signals strong institutional interest, it also introduces new compliance challenges for both government agencies and market participants.

What regulatory issues exist for cryptocurrency?

Cryptocurrency regulation in the US in 2025 continues to grapple with several persistent challenges, despite efforts to establish clearer frameworks. 

As crypto matures from the fringes of finance into the mainstream, clear rules and oversight are needed to protect individuals and to nurture a stable, trustworthy ecosystem that benefits everyone involved.

The US is transitioning toward a pro-innovation crypto regime, with emphasis on deregulation, legislative clarity and strategic asset management. Its nascent administration has signaled a significant departure from the previous enforcement-heavy approach, prioritizing regulatory clarity and industry growth. Key actions include the January 2025 executive order establishing an interagency task force to review and potentially rescind restrictive regulations, alongside the SEC’s dismissal of high-profile cases against Coinbase, Robinhood Crypto and OpenSea. 

Meanwhile, the SEC’s Crypto Task Force, led by Hester M. Peirce, aims to streamline registration paths for tokens and clarify jurisdictional boundaries, particularly for meme coins, which the SEC no longer classifies as securities. In addition, the 

 removes barriers for banks offering crypto custody services, thus encouraging institutional participation.

Bipartisan efforts are gaining momentum in the push to formalize crypto oversight, with stablecoin regulation leading the charge. Key proposals like the 

 are pushing for requirements such as 1:1 reserves, regular audits and greater transparency from issuers, bringing stablecoins more in line with traditional financial standards. 

 and SEC are working out jurisdictional boundaries, and Congress is expected to pass market structure legislation that will determine whether crypto assets are classified as securities or commodities. These moves are designed to reduce the regulatory landscape’s current fragmentation, as stablecoins now face a patchwork of state-level regulations that drive up compliance costs.

The US federal government is moving toward a clearer and more innovative crypto regulatory regime, making efforts to streamline oversight, push institutional adoption and integrate digital assets into economic strategy. However, until federal policies fully align and state differences are reconciled, the regulatory environment for crypto in the US remains complex and dynamic. Traders and industry players need to understand this complex but maturing environment in order to navigate risks and grab emerging opportunities.

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Crypto regulations in the US: Navigating a complex landscape

Vietnam is establishing a crypto regulatory sandbox and legal framework to bring clarity, security and oversight to its fast-growing digital asset market.

With a tech-savvy population and high rates of crypto adoption, Vietnam is a hotbed of crypto activity. About 17 million of the population own digital assets, as blockchain market flows into Vietnam reached $105 billion from 2023–2024, 

. However, the absence of a clear legal framework has posed challenges for investors, businesses and regulators. Recognizing the need for structured oversight, the Vietnamese government has initiated decisive steps to establish comprehensive regulations for the crypto sector. 

This article delves into Vietnam's current stance on cryptocurrencies, its implementation of a regulatory sandbox, collaborative efforts with industry leaders like Bybit — and the broader implications for traders and the crypto industry.

Vietnam currently lacks a formal legal framework that specifically addresses cryptocurrencies and digital assets. As a result, these digital currencies operate in a regulatory gray zone — neither fully legal nor banned. Existing financial laws only recognize electronic money tied directly to fiat currencies, such as prepaid bank cards and e-wallets, leaving cryptocurrencies like 

This lack of legal clarity has pushed many crypto-related businesses to register in jurisdictions with clearer regulations, such as Singapore and the United States, before operating within Vietnam. A workaround that has led to the loss of potential tax revenue has weakened the competitiveness of Vietnam’s domestic market in the growing digital economy.

Still, despite this uncertainty, Vietnam ranks among the top countries globally for crypto ownership and trading volume, and the stark contrast between widespread adoption and the absence of clear regulations points to the urgent need for a comprehensive legal framework. Recognizing this, the Vietnamese government has begun drafting new regulations to bring clarity and oversight to the digital asset space.

A regulatory sandbox is a controlled environment that allows financial technology innovations to be tested in real-world conditions for a limited time under the watchful eye of regulators. It provides a safe space in which to experiment with new products and services, while ensuring that consumer protection and market stability remain a priority.

How does Vietnam’s regulatory sandbox initiative work?

Vietnam’s regulatory sandbox is designed as a safe, controlled space in which financial technology innovations — including those involving digital assets and cryptocurrencies — can be tested under regulatory supervision. It operates under a multi-agency governance structure, with the 

This committee is responsible for licensing participants, supervising operations, assessing potential risks and ensuring the overall stability of the fintech ecosystem. It works closely with the State Bank of Vietnam (SBV), which was officially assigned to develop the sandbox under newly minted 

, as well as other key agencies like the Ministry of Finance and the Ministry of Public Security.

. The Ministry of Finance is responsible for developing legal guidelines and licensing service providers, while the Ministry of Public Security focuses on combating fraud, money laundering and other criminal activities within the digital asset market. Lastly, the State Bank of Vietnam monitors the impact of digital assets on the country’s monetary policy and overall financial system.

, businesses must undergo a formal assessment process. Eligible participants include credit institutions, independent fintech startups or fintech firms partnering with banks. After passing initial evaluations by the SBV, approved entities receive a registration certificate signed by the prime minister. These businesses then enter a testing phase lasting one to two years that allows regulators to observe how the businesses’ operations function in a live but supervised environment.

 preventing money laundering, managing digital asset transactions, regulating crypto mining activities and establishing oversight for the issuance, ownership and trading of 

. This initiative will roll out gradually, starting with the launch of financial centers in Ho Chi Minh City and Da Nang in 2025. 

 using crypto assets are expected to begin by Jul 1, 2026. 

How Bybit is supporting Vietnam in its path toward regulatory clarity

Bybit is closely collaborating with the Vietnamese government, particularly the Ministry of Finance, to contribute to the development of a regulatory sandbox. This controlled testing environment allows new crypto regulations to be explored and fine-tuned before being rolled out nationwide. During the 

, Nguyen Van Thang, Bybit CEO Ben Zhou emphasized the importance of building a secure, transparent and innovation-friendly crypto ecosystem that protects investors and upholds market integrity.

 is its technical support for Vietnam’s pilot crypto trading platform, which is operating within the sandbox framework. This initiative enables regulators to safely observe real-time crypto transactions and better understand market behavior. Bybit brings its deep expertise in areas like system architecture, transaction monitoring and the implementation of robust compliance tools, such as 

 (KYC) protocols — essential elements for ensuring digital assets aren’t misused, and that regulatory standards are met.

Enabling Vietnam’s crypto infrastructure

But Bybit’s involvement goes beyond technology. The exchange is also focused on empowering Vietnamese regulators through hands-on training and capacity building. These sessions are designed to equip officials with the skills and knowledge needed to effectively oversee a fast-growing crypto market. The 

 has been tasked with working directly alongside Bybit to explore future steps, a move that reflects the Vietnamese government’s confidence in Bybit’s global track record and regulatory experience.

While mainly focused on compliance, this collaboration is also a forward-looking partnership aimed at creating a balanced regulatory environment that nurtures innovation while ensuring financial stability. Bybit is helping Vietnam lay the foundation for a legal framework that can adapt to the rapid evolution of crypto technology. In doing so, the country is firmly positioning itself as a leader in the digital economy.

Vietnam’s move to establish a crypto regulatory sandbox (and eventually, a full legal framework) means greater security and peace of mind for individual investors and traders. The sandbox enforces strict KYC and AML protocols, reducing the risk of 

. With clear rules expected by May 2025, traders will finally have legal certainty, allowing them to operate confidently without fear of running afoul of unclear or outdated regulations.

For the crypto industry, the sandbox offers a rare opportunity to test new products and services under the watchful eye of regulators without immediately facing the full weight of compliance laws. This creates room for innovation that will help exchanges, token issuers and startups build trust and scale faster. The government’s support for building financial centers in cities like Ho Chi Minh City and Da Nang adds momentum, turning Vietnam into a potential regional hub for crypto businesses and investors.

As the framework takes shape, clearer licensing and operational guidelines will enable crypto platforms to run with greater transparency and reliability, boosting confidence for both institutional players and everyday users. Integration with national data systems will also strengthen transaction monitoring, and reduce risks related to energy-heavy mining operations or illicit activity. With major industry players like Bybit helping to realize this vision, Vietnam is laying the groundwork for a secure and innovation-friendly market.

Ultimately, this regulatory shift benefits everyone: Traders get protection and clarity, and industry players gain a supportive environment in which to grow. Vietnam will be positioning itself as a forward-looking nation that’s ready to welcome the future of finance, attracting foreign investment, driving adoption and unlocking new revenue streams to support economic growth.

Vietnam is taking bold steps toward regulating its crypto market through a structured regulatory sandbox and partnerships with industry leaders like Bybit. These efforts aim to create legal clarity, protect investors and encourage innovation. For traders and businesses alike this marks a turning point, ushering in a safer, more transparent and opportunity-rich environment as Vietnam embraces an alpha role in the global digital economy.

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Crypto regulations in Vietnam: A path toward regulatory clarity

Explore how upcoming US stablecoin regulations may impact assets like USDC and USDT — who stands to benefit, and which stablecoins face greater risks.

Stablecoins are tremendously popular in the crypto industry, with assets like 

, Sky Dollar (USDS) and numerous others used for on-ramping, off-ramping, value storage and transfers to ensure stability and rate predictability. For instance, the USDT stablecoin usually features higher trading volumes than even Bitcoin (BTC) or any other cryptocurrency on the market. As of the time of this writing (Apr 8, 2025), three out of the top seven crypto assets by daily trading volumes are stablecoins — USDT, USDC and First Digital USD (FDUSD).

Given the popularity and active use of stablecoins, regulatory bodies around the world have taken measures to control the operation of these assets. The European Union (EU), UK and key crypto hubs in Asia (such as Hong Kong and Singapore) have passed laws providing varying levels of regulatory oversight for stablecoin cryptocurrencies. Unlike these jurisdictions, the US has yet to implement comprehensive federal-level laws regarding stablecoin issuance, trading and other operations.

However, 2025 might finally see the first US legal framework addressing stablecoin regulation. It’s expected that a couple of legislative acts concerning stablecoins — the STABLE Act and GENIUS Act — will be considered by the US House of Representatives and the Senate in the coming months, and may be enacted later this year. If implemented, these laws will bring significant clarity to the regulation of stablecoins in the US market. 

As a result of these regulatory changes, some stablecoin assets are widely expected to benefit, while others might find themselves in a more challenging situation.

In this article, we’ll examine the current and expected stablecoin regulatory landscape in the US, compare it with frameworks used in other countries worldwide and discuss which stablecoins may see their standing and popularity boosted by the changes — and which ones are likely to face difficult choices.

 are a cornerstone of the modern crypto trade. Collectively, stablecoin cryptocurrencies typically account for more than half of the daily trading volumes in the crypto market. These assets — many of which are pegged to one of various established fiat currencies — serve as islands of rate stability in a market known for its high volatility. 

As crypto users move their funds between the 

 and traditional banking systems, stablecoins provide the necessary predictability. Their fiat pegs are also a vital magnet for investors who prefer to hold their funds in crypto, but want to maintain their investments’ value without exposure to the market's typical wild fluctuations.

Moreover, individuals and businesses around the world use stablecoins for crypto payments, and for settling transactions that adhere to contractual payment terms. Stablecoins also act as a key bridge between the worlds of crypto and traditional finance, creating potential for the mass adoption of cryptocurrency by the mainstream user community of retailers, investors and consumers.

With so many important use cases, it's no wonder that stablecoin regulation is critical for users, regulatory bodies, asset issuers and all other relevant parties.

Regulation for stablecoins in the US vs. other countries

Yet, as of April 2025, the US still lacks a comprehensive federal-level regulatory framework for stablecoins. There are several laws, both at the federal and state level, that address some aspects of stablecoin operations, but this regulatory environment is patchy and only partially addresses critical stablecoin-related processes.

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