International
 
FATF Strengthens Global AML/CFT Standards with Key Updates
The Financial Action Task Force (FATF) updated its standards[1]  to combat money laundering (ML), terrorist financing (TF), and proliferation financing (PF), focusing on:
Risk-Based Compliance: Mandatory risk assessments for countries/institutions, aligning mitigation strategies with national frameworks.
Stricter Ownership Transparency: Centralized beneficial ownership registries to curb corporate abuse.
VASP Oversight: Licensing requirements, AI-powered compliance tools, and tighter cross-border crypto controls for virtual asset providers.
Global Enforcement: Enhanced intelligence sharing and UN sanctions alignment to tackle illicit flows.
The updates emphasize closing loopholes for sanctions evasion and financial crime, urging proactive compliance.
 
United States
 
President Trump Establishes US Crypto Strategic Reserve
U.S. President Donald Trump signed an Executive Order[2], to establish a strategic bitcoin reserve and U.S. Digital Asset Stockpile.  The Strategic Bitcoin Reserve will be capitalized with bitcoin owned by the Department of Treasury that was forfeited as part of criminal or civil asset forfeiture proceedings. It also established a U.S. Digital Asset Stockpile, consisting of digital assets other than bitcoin i.e. Ether, XRP, Solana and Cardano’s ADA, owned by the Department of Treasury that was forfeited in criminal or civil asset forfeiture proceedings.  Trump claimed “I will make sure the U.S. is the crypto capital of the world”.
 
OCC Greenlights Crypto Custody, DLT and Stablecoins Activities  
The U.S. Office of the Comptroller of the Currency (OCC), has explicitly reaffirmed that federally chartered banks may engage in crypto-asset custody, distributed ledger technology (DLT), and stablecoin-related activities under its oversight. In Interpretive Letter 1183[3], the OCC rescinded three prior restrictive letters, effectively unlocking critical opportunities for banks to:
Safeguard crypto-assets as custodians, securing digital holdings for clients.
Hold dollar reserves, managing dollar deposits that back compliant stablecoins.
Operate blockchain nodes, participating in independent verification networks to validate transactions.
This strategic shift provides regulatory clarity, and is a mainstream trust catalyst.
 
FDIC Eases Crypto Restrictions: New Guidance for Banks  
The FDIC has rescinded its 2022 policy (FIL-16-2022) requiring prior approval for crypto-related activities by supervised institutions. New guidance[4] clarifies that institutions may now engage in permissible crypto-asset activities without pre-approval, provided they manage associated risks (e.g., cybersecurity, consumer protection, anti-money laundering). The FDIC emphasizes compliance with laws and safe operational practices, while signaling future interagency collaboration and updated regulations to replace outdated crypto-related guidance.
 
SEC Exempts PoW Mining from Securities Rules
The U.S. Securities and Exchange Commission (SEC) Division of Corporation Finance SEC clarified[5], that proof-of-work (PoW) mining (self-mining/pools) does not require securities registration, if crypto assets are integral to a public permissionless network’s core operations (e.g., participating in consensus mechanisms or maintaining security/functionality). No Securities Act filings are needed for such activities.
 
Texas Senate Approves Landmark Bill to Create State-Backed Bitcoin Reserve  
The Texas Senate has passed SB-21[6], the Bitcoin Strategic Reserve Act, authorizing the creation of a state-managed fund to acquire and hold Bitcoin as a treasury reserve asset. The bill is now advancing to the Texas House of Representatives.  If enacted, Texas would become the first U.S. state to formally integrate Bitcoin into its balance sheet, positioning it as a strategic hedge against inflation and currency devaluation.
 
Kentucky’s Cements Bitcoin Rights with Landmark HB 701 Law
Kentucky has solidified its position as a cryptocurrency-friendly state with the official signing of House Bill 701[7] (HB 701), a groundbreaking Bitcoin Rights Bill designed to empower individuals and businesses in the digital asset space. Key provisions of HB 701:
Legalizes the use of digital assets and self-hosted wallets, ensuring residents retail control over their cryptocurrency holdings.
Prohibits local governments from imposing discriminatory zoning regulations against digital asset mining businesses, fostering growth in the industry.
Exempts home-based digital asset mining and commercial mining enterprises from requiring a money transfer license, reducing bureaucratic hurdles.
Establishes clear guidelines for individuals and businesses to legally operate blockchain nodes, reinforcing decentralized network participation.
Clarifies that mining or staking-as-a-service offerings do not qualify as securities under state law, providing regulatory certainty for service providers.
 
CANADA
 
Bank of Canada Study: Bitcoin Ownership Holds Steady at 10%
A Bank of Canada staff discussion paper[8] revealed that despite awareness of alternatives, Bitcoin remains Canadians’ dominant crypto, primarily held as an investment (median: Can$500) by men, younger demographics, and higher earners/educated individuals. Adoption for payments stays negligible.
 
EU and UK
 
Italy and ECB Forge New Stricter Crypto Audits and Expanded Eurosystem Access 
The Bank of Italy and CONSOB[9] have issued new guidelines[10], mandating stricter transparency for companies holding crypto-assets.  Issuers must now disclose detailed financial impacts of crypto holdings in their statements, ensuring stakeholders understand risks to financial performance and position where material. The rules extend to audit firms and statutory auditors, requiring them to report crypto-specific risks and tailor audit procedures to address heightened vulnerabilities. Auditors must adopt enhanced scrutiny when assessing engagement risks, prioritizing risk-based audit frameworks to ensure compliance and accuracy.  Meanwhile, the ECB’s parallel move to grant non-banks direct access to Eurosystem payment systems earlier in February 2025, marks a pivotal shift, broadening participation in Europe’s financial infrastructure while reinforcing the need for robust crypto oversight.
 
Cash Preservation & CBDCs: Riskbank’s Response to Sweden’s Digital Payment Shift 
 
Riksbank’s Payments Report[11] highlights the benefits of payment digitalization (speed, cost, convenience) but warns of challenges, urging rules to safeguard cash amid declining usage. It notes global CBDC exploration (e.g., ECB’s digital euro), which could indirectly impact Sweden despite its non-euro status. While a digital euro’s adoption in Sweden might necessitate an e-krona to protect monetary sovereignty, Riksbank suggests effects would likely remain limited.
 
Spain’s BBVA Gets Approval to Offer Bitcoin and Ether Trading 
 
Spain’s second biggest bank Banco Bilbao Vizcaya Argentaria (BBVA) received the green light from the Spanish Securities and Exchange Commission (CNMV) to offer bitcoin and ether trading services (buy, sell and manage) in Spain, via a bank application. Initially, the service will be rolled out to a small group of users and gradually extended to private customers in Spain over the coming months.  Other European banks engaged in crypto include Deutsche Bank (institutional custody), Sygnum Bank (full crypto banking), SEBA Bank (institutional & retail crypto services), HSBC (custody& tokenization projects) etc.
 
ESMA Clarifies Custody & Transfer of non-MiCA-Compliant Tokens are Permitted
 
The European Securities and Markets Authority (ESMA) has clarified that the Markets in Crypto Assets (MiCA) regulation does not explicitly prohibit EU crypto asset service providers (CASPs) from offering custody and transfer services for non-compliant stablecoins, such as USDT. In a statement to Cointelegraph[12], an ESMA spokesperson emphasized that custody and transfer activities “do not inherently constitute an ‘offering to the public’ or ‘seeking admission to trading’” for non-MiCA-compliant asset-reference tokens or e-money tokens. As such, these services remain outside the scope of explicit prohibitions under Titles III and IV of MiCA. However, ESMA urged CASPs to prioritize restricting services that facilitate the acquisition of non-compliant assets after March 31, 2024, aligning with MiCA’s phased implementation. While custody and transfers are permissible, this guidance underscores the need for CASPs to avoid enabling new exposure to non-compliant tokens post-deadline.
 
UK Tightens AML/CTF Oversight with Focus on Crypto
 
HM Treasury’s latest AML/CTF report[13] highlights a risk-based supervisory regime involving the FCA, HMRC, and Gambling Commission, emphasizing registration, compliance checks (desk reviews, on-site visits), enforcement penalties, and sector collaboration.  For crypto, 44 FCA-registered firms underwent 83 assessments in 2023–24, prompting remediation of MLR gaps. The FCA monitors unregistered crypto businesses (publicly listed) and applies “enhanced” supervision to 15 large non-registered firms advertising legally in the UK.
 
Germany’s Crypto Tax Rules: Key Obligations Simplified
Germany’s updated crypto tax guidelines[14] clarify strict reporting and documentation requirements for individuals and businesses.  Meticulous record-keeping, transparency with authorities, and using compliant tools are critical to navigating Germany’s evolving crypto tax landscape.  Key obligations include:
Record-Keeping Essentials:   Taxpayers must provide detailed transaction records, especially for decentralized (DEX) trades.  Centralized platforms track user accounts, but taxpayers remain responsible for retaining records.
Compliance Obligations:  Transactions via non-German exchanges trigger heightened disclosure duties. Reports must be complete, consistent, and verifiable. Authorities may accept plausible reports but can audit adjustments.
Audits & Estimates: If records are incomplete, tax offices estimate liabilities using available data (e.g., exchange histories, wallet screenshots). Estimates aim for accuracy, not penalties.
Business Requirements: Strict bookkeeping under commercial law and tax code. Crypto accounting software must comply with data integrity standards. Auditors can access digital systems.
High-Income Individuals: Earners over €500K (rising to €750K in 2027) must retain records for six years.
Transition Rules: New guidelines apply immediately, but pre-2024 filings using older methods won’t be challenged.
 
Middle East and Asia
 
Bank of Israel Shares Plans to Explore Potential Issuance of a Digital Shekel
The Bank of Israel has been exploring the possibility of issuing a Central Bank Digital Currency (CBDC), since 2017, which will be called the Digital Shekel (DS).  Although no decision has been made to issue a DS, the Bank of Israel has published[15] a document, to share the design to all stakeholders and receive their feedback.
 
India Explores RWA Tokenization Rules via IFSCA Consultation
India’s IFSCA has released a draft consultation paper[16] seeking stakeholder input to regulate tokenizing real-world assets (RWAs), including securities (stocks, bonds), commodities, IP, real estate, and financial products (deposits, receivables). The paper outlines regulatory challenges identified by the IFSCA and its Expert Committee, aiming to balance innovation with proportionate safeguards. The consultation targets collaborative solutions to address hurdles in asset tokenization.
 
Taiwan Introduces Cold Wallet Requirements for Crypto Custodians
Taiwan’s Financial Supervisory Commission (FSC) introduced new cold wallet storage requirements for virtual asset custodians, effective immediately. Under the new rules, crypto custodians must store at least 70% of customer assets in cold wallets if their core systems meet international security standards such as ISO 27001, ISO 27701, or SOC2 Type 2, otherwise, the cold wallet storage requirement increases to 80%.
 
Japan Eases Crypto Brokerage Rules, Expands Stablecoin Collateral
Japan’s Cabinet-approved[17]  reforms to the Payment Services Act (now Diet-bound) reclassify crypto brokerages as lower-regulation “intermediary businesses” and allow stablecoin issuers to back coins with short-term Japanese/U.S. bonds (under 3 months) alongside cash. The changes, set for smooth passage, aim to spur sector growth. Note: A proposed[18] crypto tax cut (55% → 20%) and new digital asset framework are also underway.
 
Türkiye Tightens Crypto Rules with Mandatory Licensing
Türkiye’s Capital Markets Board (CMB) now mandates[19] licensing and compliance standards for crypto exchanges, custodians, and wallet providers, centralizing oversight to align with global norms and tackle financial risks. The expanded framework covers all crypto asset services, reinforcing the CMB’s authority over the sector.
 
Australia Pioneers a Balanced Digital Asset Ecosystem
The Australian Government unveiled a strategic roadmap[20] to position the nation as a global leader in the digital asset sector. Central to this vision are new regulatory frameworks for Digital Asset Platforms (DAPs) and payment stablecoins, designed to foster innovation while safeguarding consumers. The reforms extend financial services laws to key platforms, exempting non-financial digital asset creators and small startups to avoid stifling growth. Collaborating with regulators like ASIC, the plan emphasizes international alignment (e.g., EU, Singapore) and addresses challenges like de-banking to ensure sector stability. Future initiatives include exploring central bank digital currencies (CBDCs), tokenization trials, and monitoring decentralized finance (DeFi). By balancing risk management with innovation, Australia aims to unlock economic opportunities, enhance market efficiency, and secure its place in the evolving digital economy.
 
South Korea Rules out Bitcoin as a Foreign Reserve
South Korea’s Central Bank, the Bank of Korea (BOK), has called out[21] for a cautious approach to an idea of including Bitcoin into its foreign reserves, citing the cryptocurrency’s high volatility and lack of intrinsic value as primary concerns. The BOK took this position during discussions about developing a stablecoin backed by the local currency, the South Korean Won (KRW). 
 
Latin America / Caribbean
 
Cayman Islands now Requires Licensing for Crypto Custody and Trading Firms
Cayman Islands will require crypto custody and trading under new regulations[22] effective April 1, 2025. Firms already operating have until June 29 to comply. The requirements are full disclosure of client assets, revenue models, and security protocols.
 
Africa
 
Nigeria to Tax Crypto Transactions to Boost Revenues
Nigeria plans[23] to amend current digital asset regulations to tax crypto transactions to boost revenues.  The proposed 0.5–1% capital gains tax on crypto profits and 10% VAT on exchanges effective April 2025, could generate up to 200 billion Nigerian Naira ($250 million) annually.   
 
Egypt’s Central Bank Issues Fourth Warning on Cryptocurrency Risks
The Central Bank of Egypt (CBE) has escalated its warnings about cryptocurrencies, issuing its fourth official alert[24] following reports of a fraudulent digital platform that illegally seized funds from Egyptian citizens. The platform allegedly lured victims with promises of “high returns” through cryptocurrency investments, highlighting the growing risks of scams in the sector.  Egypt’s Central Bank emphasized that no license has ever been issued or granted to engage in such trading activities in the Egyptian market due to the inherent high risks.
 
South Africa’s Regulatory Roadmap for Stablecoins: Navigating the Future
South Africa’s Intergovernmental Fintech Working Group (IFWG) is advancing its 2021 crypto asset regulation strategy by focusing on stablecoins—crypto assets pegged to external assets like the rand (ZAR). Recognizing their growing influence and unique risks, the Crypto Asset Regulatory Working Group (CAR WG) has launched a two-phase plan[25].
Phase 1 assesses ZAR-pegged stablecoins, mapping risks, regulatory gaps, and current impacts of existing crypto rules.  
Phase 2 aims to balance innovation with risk mitigation, exploring benefits, macroeconomic threats, and global best practices to shape a tailored regulatory framework.
This initiative underscores South Africa’s commitment to fostering fintech growth while safeguarding financial stability, ensuring crypto assets evolve within a secure, forward-looking ecosystem.
 
Conclusion
 
The global regulatory landscape for crypto and digital assets continues evolving dynamically across the globe in March 2025, as nations accelerated efforts to harmonize innovation with systemic oversight safeguards. The FATF’s reinforced AML/CFT standards set a high bar for transparency, mandating risk-based compliance and cross-border collaboration to combat financial crime—a framework echoed in Türkiye’s licensing mandates and the UK’s intensified crypto oversight. Meanwhile, the U.S. solidified its ambition to lead the digital economy through bold federal and state initiatives: President Trump’s Strategic Bitcoin Reserve, the OCC’s greenlight for bank custody services, and Texas’s groundbreaking Bitcoin treasury reserve bill exemplify a coordinated push to institutionalize crypto adoption.
 
Europe balanced enablement with vigilance, as ESMA’s MiCA guidance clarified permissible custody of non-compliant stablecoins and Italy’s stringent audit rules prioritized financial integrity. Asia-Pacific showcased strategic diversity—Japan’s eased brokerage rules and Australia’s innovation-friendly roadmap contrasted with South Korea’s rejection of Bitcoin reserves and Taiwan’s cold wallet mandates, reflecting regional priorities. Emerging markets like Nigeria and the Cayman Islands laid foundational regulations, taxing crypto transactions and enforcing licensing to harness growth while mitigating risks.
 
South Africa’s phased approach to stablecoin regulation and Israel’s exploration of a digital shekel underscored the global momentum toward CBDCs and asset tokenization. Yet, challenges persist: Egypt’s escalating crypto scams and Germany’s rigorous tax reporting requirements highlighted the enduring need for consumer protection and clarity.
 
March 2025 reaffirmed that crypto’s maturation hinges on agile, collaborative frameworks. As nations navigate this dynamic terrain, the dual mandate of fostering innovation and ensuring accountability remains paramount. The path forward demands global dialogue, adaptive policies, and shared standards to unlock the transformative potential of digital assets while safeguarding financial stability.
 


[1] https://www.fatf-gafi.org/content/dam/fatf-gafi/recommendations/FATF%20Recommendations%202012.pdf.coredownload.inline.pdf
[2] https://www.whitehouse.gov/fact-sheets/2025/03/fact-sheet-president-donald-j-trump-establishes-the-strategic-bitcoin-reserve-and-u-s-digital-asset-stockpile/
[3] https://occ.gov/topics/charters-and-licensing/interpretations-and-actions/2025/int1183.pdf
[4] https://www.fdic.gov/news/financial-institution-letters/2025/fdic-clarifies-process-banks-engage-crypto-related
[5] https://www.sec.gov/newsroom/speeches-statements/statement-certain-proof-work-mining-activities-032025?utm_medium=email&utm_source=govdelivery
[6] https://capitol.texas.gov/tlodocs/89R/billtext/html/SB00021I.htm
[7] https://apps.legislature.ky.gov/record/25rs/hb701.html
[8] https://www.bankofcanada.ca/2025/03/staff-discussion-paper-2025-4/#:~:text=Bitcoin%20ownership%20remained%20stable%20at,it%20primarily%20as%20an%20investment
[9] the Commmisione Nationale per la per le Società e la Borsa (CONSOB), is the public authority responsible for regulating the Italian financial markets.
[10] https://www.consob.it/documents/d/asset-library-1912910/comunicazione_consob_bi_20250306_en
[11] https://www.riksbank.se/globalassets/media/rapporter/betalningsrapport/2025/engelsk/payments-report-2025.pdf
[12] https://www.tradingview.com/news/cointelegraph:b73a4a03e094b:0-custody-and-transfers-of-non-mica-compliant-stablecoins-not-restricted-esma/
[13] https://assets.publishing.service.gov.uk/media/67d04713dbe565b4fe307835/AML_Annual__Report.pdf
[14]https://www.bundesfinanzministerium.de/Content/DE/Downloads/BMF_Schreiben/Steuerarten/Einkommensteuer/2025-03-06-einzelfragen-kryptowerte-bmf-schreiben.pdf?__blob=publicationFile&v=2  Note: Translated from original German version and translation is not binding
[15] https://boi.org.il/media/54dpz1ew/initial-design-for-the-digital-shekel-system.pdf
[16] https://ifsca.gov.in/Document/ReportandPublication/ifsca-consultation-paper-on-regulatory-approach-towards-tokenization-of-real-world-assets03032025111644.pdf
[17] https://www.blockhead.co/2025/03/10/japan-approves-crypto-brokerage-stablecoin-law-reforms/
[18] https://www.ccn.com/news/crypto/japan-crypto-tax-cut-digital-asset-regulations/
[19] https://www.resmigazete.gov.tr/eskiler/2025/03/20250313-5.htm
[20] https://treasury.gov.au/sites/default/files/2025-03/p2025-628504-s.pdf
[21] https://www.koreaherald.com/article/10442438
[22] https://www.coindesk.com/policy/2025/03/10/cayman-islands-now-requires-licensing-for-crypto-custody-and-trading-companies
[23] https://cointelegraph.com/news/nigeria-crypto-tax-revenue
[24] https://www.cbe.org.eg/en/news-publications/news/2023/03/08/warning-statement
[25] https://www.ifwg.co.za/Reports/IFWG%20South%20African%20Stablecoin%20Landscape%20Diagnostic.pdf