Selected Global Crypto Regulatory News – January 2025
United States
President Trump Signs Landmark Crypto-Friendly Executive Order
U.S. President Donald Trump signed the “Strengthening American Leadership in Digital Financial Technology” Executive Order (EO), a significant step towards fostering innovation and ensuring regulatory clarity in the crypto space. Key provisions of the EO include:
• Establishment of a working group on crypto regulations, with a goal to develop a clear regulatory framework on crypto.
• Evaluation the creation of a national cryptocurrency stockpile, to create reserves in digital assets.
• Protection of crypto individuals and private-sector entities, to use public blockchains, deploy software, engage in mining, transact Peer-To-Peer without unlawful censorship and maintain self-custody digital wallets.
• Promotion of a lawful dollar backed stablecoin worldwide.
• Prohibition of a U.S. Central Bank Digital Currency (CBDC), as it prevents the establishment, issuance or promotion of a CBDC in the U.S.
CRS Report: Crypto Market Structure, Regulatory Challenges & Policy Considerations
The Congressional Research Service (CRS) January “In Focus” report examines the crypto market structure, regulatory frameworks and policy considerations. Key points include:
• Crypto regulation: There is no comprehensive regulatory framework for crypto. Regulators rely on existing regulatory frameworks, applying them based on the specific crypto product, use case and context.
• MSB Framework: Cryptocurrency exchanges often register as Money Service Businesses (MSBs) in order to operate, subject to state-based licensing, federal registration with the Financial Crimes Enforcement Network and compliance with AML/KYC programs under the Bank Secrecy Act.
• Policy Issues: Congress is divided on whether policy should foster, ignore, or quarantine the crypto industry, raising some policy issues. Key debates include: Are current regulatory authorities sufficient, or is congressional action required? If new regulatory authority is required, who should be the primary regulator? Is it better to create a new, overarching structure, or is a refinement of the existing framework sufficient?
SEC Rescinds SAB 121, Opening Door for Banks to Custody Bitcoin
The Securities and Exchange Commission (SEC) issued Staff Accounting Bulletin (SAB) No. 122 removing the barriers for banks to custody Bitcoin and crypto. Until now, SAB 121 required institutions holding bitcoin and crypto assets for customers to classify those customer assets as liabilities on their balance sheets, which created significant accounting, operational and financial burdens for banks and custodians. Financial institutions can now adhere to established standards from the Financial Accounting Standards Board (FASB) or other international accounting guidelines. This move signals a significant shift in the SEC’s approach to regulating bitcoin and crypto and paves the way for greater financial integration.
Acting SEC Chairman Launches New Crypto Task Force
Securities and Exchange Commission (SEC) acting Chairman Mark T. Uyeda announced the formation of a new crypto task force dedicated to developing a comprehensive and clear regulatory framework for crypto assets. Commissioner Hester Peirce will lead the task force, which will focus to help draw clear regulatory lines, provide realistic paths to registration, craft sensible disclosure frameworks, and deploy enforcement resources judiciously.
Acting FDIC Chairman Highlights Crypto Priorities
Travis Hill became acting chairman of Federal Deposit Insurance Corporation (FDIC) and issued a statement emphasizing his commitment to maintaining a safe, sound, and resilient banking system. Key FDIC priorities involving digital assets involve:
• Promoting transparency in fintech and digital assets to foster innovation and technology, while addressing technology costs for community banks.
• Conducting a thorough review of regulations and guidance to ensure they foster economic growth.
CFTC Commissioner Kristin Johnson’s remarks on the Future of Financial Regulation
In her keynote address at the University of Chicago Law School, Commodity Futures Trading Commission (CFTC) Commissioner Kristin Johnson highlighted the evolving intersection of technology and the financial markets. She noted: “We stand, once again on the frontier of technological development in markets, including increasingly advanced computing, predictive analytical models, and algorithmic trading, and digital trading, clearing and settlement”. Commissioner Johnson pointed out the importance of applying governance principles tested over time to the regulation of digital asset markets. These principles include:
• Segregation of Customer Assets: Customer assets should be protected in the event of a liquidity or solvency crisis. The CFTC expressly requires segregation of customer funds in certain contexts to mitigate systemic risks.
• Governance: The CFTC mandates that registered entities establish boards of directors, including independent directors, risk management committees, and executive officers that include chief compliance and risk officers who possess the requisite skills and expertise.
• Compliance with AML/KYC laws and regulations: Drawing on its experience in financial market regulation, the CFTC highlights that robust AML/KYC regulations protects not only market integrity and stability, but also national security interests.
NYDFS Issues Meme Coins Consumer Alert and Notice
The New York State Department of Financial Services (NYDFS) warned New Yorkers and N.Y. licensed entities about the risks associated with sentiment-based virtual currencies or otherwise referred to as “meme coins .” These coins are often created on unlicensed platforms that lack the department’s consumer protection standards. Meme coins are typically owned by a small group, are not widely traded, and are highly volatile. Consumers face risks of fraud, including “pump-and-dump” schemes and manipulative “wash trades,” which artificially inflate prices before creators profit and prices collapse. Even on regulated platforms, meme coins can experience rapid and unpredictable price declines. NYDFS advises consumers to verify platforms through the “Regulated Entities” section on their website.
Donald and Melania Trump Issue Meme Coins Attracting Significant Attention
As Donald Trump prepared to assume office, he introduced the “$Trump” meme coin on the Solana blockchain. The coin debuted on January 19 with a price of $7.0 and experienced a meteoric rise, reaching a max price of $75 and a max market cap of $15 billion, within the same day. By January 31, the price had dropped to approximately $25.5, and with a market cap of $5.1 billion is down over 63% from its all-time high. Similarly, Melania Trump unveiled the “$Melania” meme coin”, which debuted at $7.8 at January 20, reaching a max price of $13 withing the same day, touching a max market cap of 2.2 billion. By January 31, the price had dropped to approximately $2 and with a market cap of $360, down over 80% from its all-time high. The launch and market performance of Donald and Melania Trump’s meme coins, despite the recent consumer alert from the New York State Department of Financial Services (NYDFS), serves as a case study of the challenges regulators face in curbing risky behavior in a highly speculative and celebrity-driven segment of the crypto market.
White House EO Focuses on Quantum-Resistant Technologies and Crypto Security
The White House’s latest Executive Order (EO) on cybersecurity, highlights the growing importance of quantum resistant technologies. Among its key initiatives the EO mandates federal agencies to defend against quantum computing attacks, by implementing quantum-resistant key establishment protocols. This reflects broader concerns about the potential of quantum computing to undermine cryptographic systems. When assessing the risks of quantum computing and Bitcoin, a study published in 2022 by Universal Quantum, estimated that breaking Bitcoin’s encryption would require a quantum computer:
• 13 million qubits to break it within a day,
• 300 million qubits to break it within an hour and,
• 1.9 billion qubits to break it within the ten-minute mining window.
As of 2025 the most advanced quantum computers have only surpassed the 1,000 qubits threshold , which suggests that Bitcoin remains secure from quantum threats for now. Nevertheless, the Bitcoin community is well-aware of these challenges and the rapid pace of quantum technology threats and is likely to implement protocol upgrades to adopt use quantum-resistant cryptography when necessary.
U.S. Judge Presses SEC for Clarity on Crypto Guidelines, Following Coinbase Petition
A U.S. judge has called on the Securities and Exchange Commission (SEC) to explain its lack of clear guidelines for the crypto sector, specifically regarding the conditions under which crypto assets qualify as securities. Coinbase, in its petition, argued that the existing securities-law framework does not address certain unique attributes of digital assets, making compliance economically and technically impractical. The petition also criticized the SEC for exacerbated these difficulties by failing to articulate a clear and consistent position about when a digital asset is a security, thus, falls under federal securities laws.
Oklahoma Becomes the Latest U.S. State to Establish a Strategic Bitcoin Reserve
The proposed Strategic Bitcoin Reserve Act positions Oklahoma to prepare for a future where digital assets play a pivotal role in the global economy. In recent months, several U.S. states have introduced similar bills, signaling a growing trend. Notable examples include Pennsylvania (November 2024), Ohio and Texas (December 2024), New Hampshire, North Dakota, Massachusetts and Wyoming (January 2025).
DoJ Says $9 Billion in Bitcoin Stolen in 2016 Hack Should Be Returned to Bitfinex
The U.S. Department of Justice stated that roughly 120,000 Bitcoin – worthed today roughly $12 billion – and other tokens, stolen from crypto exchange Bitfinex in 2016 and recovered by the Government, should be returned to the exchange. The DOJ argued that under the Mandatory Victim Restitution Act, there is no legal basis to classify Bitfinex or its account holders as victims of the specific offenses for which the defendants were convicted.
BitMEX Fined $100 Million for Violating U.S. Banking Laws
A U.S. judge fined $100 million HDR Global Trading Limited, the legal entity owning and operating BitMEX. BitMEX pleaded guilty in July 2024 and received a sentence that includes two years of probation. This penalty is in addition to approximately $110 million already paid in prior criminal and civil cases. The company claims it has corrected its past mistakes and become compliant, stating it was slow to adapt during a period of regulatory uncertainty
CANADA
Blackrock launches a new BTC ETF on CBOE
Asset management company Blackrock, is launching a new Bitcoin Exchange Traded Fund (EFT) on CBOE Canada, a stock exchange based in Toronto. The ETF is designed to give Canadian investors access to BlackRock’s iShares Bitcoin ETF, a fund that seeks to reflect generally the performance of the price of bitcoin.
EU and UK
EBA and ESMA Joint Report on Crypto-Assets and DeFi Developments
The European Banking Authority (EBA) and the European Securities and Markets Authority (ESMA) have published a joint report analyzing developments in crypto assets, focusing on Decentralized Finance (DeFi) and crypto lending, borrowing and staking. This report contributes to the European Commission’s MiCAR report to the European Parliament and Council. Key findings include:
• DeFi Adoption: DeFi remains niche, with value locked in DeFi protocols representing 4% of global crypto market value. EU adoption, while above the global average, lags behind countries like the US and South Korea.
• DeFi Risks: DeFi hacks have generally evolved in correlation with the DeFi market size. Since flows on DEXs represent 10% of spot crypto trading volumes globally, DeFi protocols present significant risks for ML/TF.
• Maximal Extractable Value (MEV): MEV has widespread implications on DeFi, requiring technical solutions to address its negative externalities.
• Crypto Lending and Staking: The report examines both centralized and decentralized business models, including collateralized debit positions , collateral debt markets and pooled lending. These services are provided by EU-based Crypto-Asset Service Providers (CASPs), some of which also are regulated entities.
• Engagement: Evidence suggests limited involvement by EU consumers and financial institutions in crypto lending, borrowing, and staking.
ESMA Public Statement on non-MiCA Compliant ART and EMTs
The European Securities and Markets Authority (ESMA) published a statement reinforcing the position related to the offer of Asset-Reference Tokens (ARTs) and Electronic Money Tokens (EMTs) – also referred to as stablecoins – in the EU under Market in Crypto Assets regulation (MiCA). The statement provides guidance on the compliance timeline for Crypto Asset Service Providers (CASPs) with titles III and IV of MiCA. National Competent Authorities are tasked with ensuring compliance by CASPs with ARTs or EMTs no later than the end of Q1 2025. In practice, this means that CASPs are expected to stop supporting trading of all non-MiCA compliant ARTs and EMTs.
EU Regulators Grant MiCA Licenses to Virtual Asset Service Providers
Four digital assets companies: MoonPay, BitStaete, FinTech ZBD and Hidden Road, have secured Markets in Crypto Assets (MiCA) licenses in the Netherlands. These licenses issued under MiCA regulations, enable VASPs to passport their license and operate across all 27 EU member states. Similarly, Socios, OKX, Crypto.com and Bitpanda have received approval from the Malta Financial Services Authority (MFSA), further expanding their operational capabilities within the EU. Notably, in Germany, Bitpanda became the first VASP to obtain a MiCA license from Germany’s Federal Financial Supervisory Authority (BaFin).
France’s AMF Report DLT Market Infrastructure Pilot Regime
The Autorité des Marchés Financiers (AMF) released a report on implementing the European Pilot Regime for Distributed Ledger Technology (DLT) market infrastructures. The regime enables the issuance, recording, transfer, and storage of tokenized financial instruments on dedicated infrastructures, aiming to promote innovation while ensuring investor protection, market integrity, and financial stability. It introduces three categories of participants:
• DLT Multilateral Trading Facilities: Platforms trading only DLT financial instruments.
• DLT Settlement Systems: Systems that settle transactions on DLT financial instruments.
• DLT Trading and Settlement Systems: New participants combining both trading and settlement of DLT financial instruments, not covered by existing regulations
Activities are limited to an initial three-year period, extendable to six years, while participants can benefit from regulatory exemptions.
UK’s BoE Shares Progress Update on a Digital Pound
The Bank of England (BoE), in collaboration with HM Treasury, continue exploring the possibility of introducing a digital pound. Although no decision has been made to move forward with implementation, the BoE shared a progress update outlining its efforts over the past years. The update highlights the next stages of exploration. Key initiative include the launch of the Digital Pound Lab later this year, a sandbox environment to enable hands-on experimentation, to test functionality, uses cases and potential business models.
Italy’s Intesa Sanpaolo Bank Makes History With $1M BTC Purchase
Intesa Saopaolo, Italy’s largest bank with a market capitalization of $71.4 billion has reportedly acquired 11 BTC, currently valued over $ 1 million. The acquisition marks the first direct BTC purchase by a traditional banking institution, signaling step towards broader institutional adoption of cryptocurrencies.
Middle East and Asia
Hong Kong Court Serves Tokenized Legal Notice to Illegal Tron Wallets
Hong Kong has reportedly used tokenized legal notices to target anonymous crypto wallets to freeze containing stolen assets. For unreachable recipients, notices have historically been published in newspapers or online. This novice approach marks a shift from traditional methods, such as in-person delivery, registered mail or fax.
Singapore Restricts Access to Polymarket Over Illegal Gambling Concerns
Singapore’s Gambling Regulatory Authority reportedly issued a ban against Polymarket, a U.S.-based crypto prediction market platform, which has been accused of offering illegal gambling products in the city-state. Polymarket offers a platform where investors can place bets on various future events, including economic indicators, weather patterns, awards, as well as political and legislative outcomes.
Governments of Japan, U.S. and Korea Issue Joint Statement on DPRK Crypto Thefts
The United States, Japan, and the Republic of Korea joined to provide a new warning to the blockchain technology industry regarding the ongoing targeting and compromise of a range of entities across the globe by Democratic People’s Republic of Korea (DPRK) cyber actors. The statement highlights that DPRK poses a significant threat to the integrity and stability of the international financial system. The three governments strive together to prevent thefts, including from private industry, by the DPRK and to recover stolen funds with the ultimate goal of denying the DPRK illicit revenue for its unlawful weapons of mass destruction and ballistic missile programs.
Taiwan to Propose Draft Law Allowing Banks to Issue Stablecoins
The Taiwan Financial Supervisory Commission (FSC) plans to introduce a Virtual Asset law by June 2025, allowing Taiwan banks to issue stablecoins for the first time. The amendment of the law in the future will require all stablecoins issued in Taiwan to be approved by the FSC, including issuer qualifications and reserve allocation.
Qatar’s Central Bank Introduces Regulatory Sandbox for FinTech Companies
Qatar’s Central Bank (QCB) launched the Regulatory Sandbox for FinTech companies, within the framework of Qatar National Vision 2030, recognizing the importance of financial technology in the development of the banking and financial sector in the country. The Regulatory Sandbox is a safe space that allows companies and financial institutions providing technological solutions to test their innovative products in an environment managed by the QCB.
Kazakhstan Shut Down 36 Unlicensed Crypto Exchanges
Kazakhstan’s Financial Monitoring Agency announced that it had shut down 36 crypto exchanges within 2024, operating without a license. Such entities with poor KYC processes facilitate unvetted fiat-to-crypto and crypto-to-crypto transfers. Kazakhstan will continue efforts to combat money laundering in the region.
Jordan Approves Virtual Asset Regulation Framework
Jordan’s Cabinet approved a plan to develop a comprehensive legal framework, to regulate virtual and digital assets within a year. The Cabinet has mandated the Jordan Securities Commission (JSC) to develop the necessary legal, procedural and technical frameworks for the licensing and accreditation of international virtual asset trading platforms. The initiative underscores the increasing significance of virtual assets in the global financial landscape, reflecting the government’s commitment to providing opportunities for Jordanian youth to engage in the digital economy.
ByBit Temporary Restricts Services in India Amid Regulatory Requirements
Dubai-based crypto-exchange Bybit announced temporary restrictions for Indian users due to recent regulatory developments. Effective Jan 12, 2025, Indian users will temporarily be unable to open new trades or access any products on the Bybit platform, with the exception of withdrawals, which will remain available for user convenience.
Latin America
Nubank Expands USDC Rewards Program to All Customers
Nubank, a Brazilian neobank announced it is expanding the feature that rewards holders of the digital dollar USDC to all users of Nubank Cripto in Brazil. This expansion allows daily returns on a minimum balance of 10 USDC in their wallets at a fixed rate of 4% per year. The decision came after a pilot program that tested variable rates with a small group of users throughout the past year. In 2024, the amount of USDC held by Nubank customers increased tenfold and now around 30% of them have this asset in their portfolios.
Tether Plans Relocating Headquarters to El Salvador
Tether, the issuer of the USDT stablecoin, announced they are about to complete formalities to relocate its headquarters from British Virgin Islands to El Salvador after receiving a Digital Asset Service Provider (DASP) license. This move aligns with El Salvador’s initiative to become a crypto trading hub.
Africa
Kenya Releases Draft National Policy on VAs and VASPs
Kenya’s National Treasury released the Draft National Policy on Virtual Assets (VAs) and Virtual Asset Service Providers (VASPs), along with the Virtual Asset Service Providers Bill, 2024. This initiative aims to regulate and integrate virtual assets into Kenya’s financial ecosystem, promoting growth while mitigating associated risks.
South Africa Considers Pension Fund Investments in Crypto Assets
South African crypto exchanges are advocating for regulatory changes to remove restrictions prohibiting pension funds from investing in crypto assets. They argue this could enable citizens from the increasing value of crypto assets, especially Bitcoin. Currently, Regulation 28 under the Pension Fund Act limits exposure to high-risk classes to safeguard retirement savings.
Conclusion
January 2025 witnessed notable advancements in cryptocurrency regulation worldwide. The United States introduced landmark policies, including a pro-crypto Executive Order and SEC reforms, signaling a shift toward regulatory clarity. The European Union advanced MiCA implementation, issuing new licenses and enforcement directives. Meanwhile, Asia and the Middle East focused on compliance and enforcement, with Hong Kong utilizing tokenized legal notices, and Singapore tightening access to prediction markets.
Latin America and Africa pursued growth-focused strategies, exemplified by El Salvador’s emergence as a crypto hub and Kenya’s proposed national framework. These developments underscore a global trend toward balancing regulation with innovation, fostering a more secure, compliant, and inclusive digital asset ecosystem.
[1] https://crsreports.congress.gov/product/pdf/IF/IF12405
[1] https://www.sec.gov/newsroom/press-releases/2025-30
[1] https://www.fdic.gov/news/press-releases/2025/statement-acting-chairman-travis-hill
[1] https://www.cftc.gov/PressRoom/SpeechesTestimony/opajohnson15
[1] https://www.dfs.ny.gov/consumers/alerts/rapidly-prolif-sentiment-based-vc
[1] Meme Coins are cryptocurrencies or digital assets inspired by internet memes, characters, or trends. They are typically supported by enthusiastic online communities and are generally intended to be light-hearted and fun. Examples include Dogecoin, Shiba Inu etc. Source: https://www.coinbase.com/learn/crypto-basics/what-is-a-memecoin
[1] https://www.sussex.ac.uk/broadcast/read/57183
[1] https://www.spinquanta.com/newsDetail/ab2b9158-0907-4028-95b7-f8c5efdd9a2b
[1] https://www2.ca3.uscourts.gov/opinarch/233202p.pdf
[1] https://www.okhouse.gov/posts/news-20250115_1
[1] https://www.courtlistener.com/docket/67625365/202/united-states-v-lichtenstein/
[1] https://blog.bitmex.com/message-from-bitmex-2/
[1] Maximum Extractable Value (MEV) is the maximum amount of value miners or network validators can extract by rearranging and reordering transactions waiting for confirmation. Examples of MEV in DeFi markets include: Arbitrage, Front-Running, Back Running etc. MEV is a complex, systemic problem for public blockchains, particularly for smart contract blockchains with significant volume, such as Ethereum. MEV can influence transaction costs, market efficiency, and blockchain security, however, it can also introduce inefficiencies and unfairness, which highlight the need to address its risks while preserving the integrity and inclusivity of decentralized systems. Source: https://www.ey.com/en_us/insights/financial-services/an-introduction-to-maximal-extractable-value-on-ethereum?utm_source=chatgpt.com
[1] A collateralized debt position (CDP) is a mechanism under which borrowers are able to take out loans from DeFi protocols by locking up crypto collateral they own in a smart contract, minting or borrowing new assets (typically, stablecoins) against that collateral.
[1] In collateralized debt markets (CDM), borrowers lock up collateral to take out loans, but instead of minting or borrowing new assets (e.g. stablecoins) directly from the protocol (like in CDP), they borrow assets from other users (lenders) who deposit their assets into the DeFi lending protocol. Source: https://www.esma.europa.eu/sites/default/files/2025-01/ESMA75-453128700-1391_Joint_Report_on_recent_developments_in_crypto-assets__Art_142_MiCA_.pdf
[1] https://www.bankofengland.co.uk/report/2025/digital-pound-progress-update
[1] https://markets.ft.com/data/equities/tearsheet/summary?s=ISP:MIL Data as of 18 Jan 2025.
[1] https://cointelegraph.com/news/hong-kong-tokenized-legal-notice-tron
[1] https://www.mofa.go.jp/files/100779661.pdf
[1] https://www.qcb.gov.qa/Documents/SandBox_FAQ_Eng_Final%20_NS%20(002).pdf
[1] https://www.gov.kz/memleket/entities/afm/press/news/details/913888?lang=kk
[1] https://international.nubank.com.br/consumers/nubank-expands-usdc-rewards-program-to-all-customers/
[1] https://www.treasury.go.ke/wp-content/uploads/2025/01/DRAFT-NATIONAL-POLICY-ON-VAs-AND-VASPs.pdf [1] https://www.sanlam.co.za/retirementfunds/Pages/regulation-28.aspx