Global Crypto Regulation Picks Up Speed, with Europe Leading the Charge – Fintech Schweiz Digital Finance News – FintechNewsCH

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As we move into 2024, countries worldwide are enhancing their regulatory and legislative measures concerning cryptocurrencies and digital assets. The main focus is on protecting consumers, combating financial crimes, and ensuring economic stability, all while encouraging innovation.

The PwC Global Crypto Regulatory Report 2025, published in April, underscores notable developments in the global crypto regulatory environment. It notes that by early 2025, 15 jurisdictions had implemented comprehensive legislative frameworks for cryptocurrencies, evidencing growing governmental efforts to regulate this flourishing sector.

Europe at the Forefront

Europe continues to lead in crypto regulation globally, driven by European Union initiatives and prominent financial centers across the region.

The Markets in Crypto-Assets Regulation (MiCAR) represents a pivotal piece of legislation designed to regulate the crypto industry across all EU nations. Its primary aim is to establish a unified set of rules that ensures consumer protection, market integrity, and financial stability, while facilitating the growth and acceptance of blockchain and distributed ledger technology (DLT).

This cohesive legal framework encompasses a wide spectrum of crypto-assets, including cryptocurrencies, security tokens, and stablecoins, and applies to all market players, such as crypto-asset issuers, trading platforms, exchanges, and custodial wallet providers. It allows traditional financial entities to participate in crypto-market activities and grants EU-wide passporting rights to crypto-asset service providers.

MiCAR will be rolled out in two stages. The initial phase, effective from June 30, 2024, focuses on the regulation of asset-referenced tokens (ART) and e-money tokens (EMT). The subsequent phase, commencing December 30, 2024, will address other crypto-assets and crypto-asset service providers (CASPs).

MiCA implementation timeline, Source: European Securities and Markets Authority, June 2023

Although MiCAR has been fully in effect since December 2024, it includes transitional measures to facilitate the adaptation process. Crypto businesses operating legally under national regulations before December 30, 2024, receive an 18-month grace period until July 01, 2026, to either secure a MiCAR license or cease operations if they do not meet the new requirements. This provision is referred to as the “grandfathering clause.”

Moreover, MiCAR provides a streamlined authorization pathway for firms already registered under national laws by the cut-off date. Instead of starting over, these entities can undergo an expedited licensing process to achieve MiCAR compliance.

MiCA transitional timeline for entities already providing crypto-asset services, Source: European Securities and Markets Authority

Diverse National Timelines

Despite the EU’s aim to create a cohesive regulatory framework, various member states have established different timelines for the transitional period, leading to discrepancies across the union.

For instance, Austria, Germany, Ireland, Italy, and Spain have shortened the transition period to 12 months (with a national deadline of December 30, 2025). Sweden has chosen a nine-month period (September 30, 2025), while the Netherlands and Poland have opted for a more restrictive six-month transition (June 30, 2025). Lithuania has set the earliest compliance deadline, requiring adherence by June 01, 2025.

MiCAR forms part of the EU’s Digital Finance Strategy, which aims to cultivate a competitive and innovative digital financial sector within the EU. In conjunction with MiCAR, this strategy encompasses the Digital Operational Resilience Act (DORA), which addresses cybersecurity vulnerabilities and risks, along with the Digital Euro initiative, which proposes a central bank digital currency (CBDC) complementing cash and existing electronic payment solutions.

The EU’s single market for digital assets, Source: PwC Global Crypto Regulation Report 2025, Apr 2025

UK Progresses in Crypto-Asset Regulation

In parallel to the EU, the UK has also enhanced its regulatory framework for crypto-assets. In late 2024, HM Treasury confirmed the inclusion of a wide array of crypto-asset and stablecoin activities within the regulated financial services sphere.

On April 29, 2025, draft legislation aimed at regulating crypto-assets was released, with objectives to strengthen consumer protections and enhance the integrity of the crypto market.

Under the proposed regulations, crypto exchanges, dealers, and agents will face oversight comparable to that of traditional financial institutions, with obligations concerning transparency, operational resilience, and consumer safety.

Regulatory consultations in 2025 will address issues related to stablecoins, custody, prudential, conduct and firm standards, admissions and disclosures, market abuse, trading platforms, intermediation, lending, and staking. The UK Financial Conduct Authority (FCA) is expected to issue all policy statements and final regulations in 2026.

The Crown Dependencies of Jersey and Guernsey, along with the Isle of Man, have each developed comprehensive regulatory frameworks for crypto. These jurisdictions, well-known for their offshore financial services, are strategically positioning themselves as compliant and competitive centers for next-generation finance.

In the Isle of Man, crypto-asset operations fall under the jurisdiction of the Financial Services Authority, with regulations tailored to the nature of the underlying services. This includes security tokens, stablecoins, and e-money tokens, which may align with investment or electronic money definitions.

In Jersey, virtual asset service providers (VASPs) must register with the Jersey Financial Services Commission (JFSC) and comply with AML/CFT regulations, while Guernsey has established a specific regulatory framework targeting VASPs, providing a clear structure for individuals and entities looking to manage or launch crypto assets.

Crypto regulation at a glance (1/2), Source: PwC Global Crypto Regulation Report 2025, Apr 2025
Crypto regulation at a glance (2/2), Source: PwC Global Crypto Regulation Report 2025, Apr 2025

Emerging Markets and Stablecoin Regulation: Key Trends for 2025

The PwC report identifies several regulatory trends influencing the global crypto landscape in 2025. A significant development is the emergence of new regulatory frameworks for crypto in emerging markets. For example, Bahrain recently refined its licensing framework for digital assets. Additionally, in February 2025, Hong Kong announced plans to create new licensing systems for over-the-counter (OTC) trading of virtual assets and for custody services, which will provide greater regulatory clarity for the sector.

In the United Arab Emirates (UAE), regulatory frameworks for crypto-assets have been established by authorities such as Dubai’s Virtual Assets Regulatory Authority (VARA) and the Abu Dhabi Global Market (ADGM) Financial Services Regulatory Authority (FSRA). New regulations are reportedly being developed to address market manipulation issues.

A further trend is the increasing regulation of stablecoins, with jurisdictions such as Hong Kong, Singapore, and the UK taking steps to introduce or amend regulations governing stablecoins to ensure their reliability and proper reserve backing.

Featured image by quatroxproduction on Freepik

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