Global crypto regulation is tightening as authorities confront vulnerabilities related to money laundering and tax evasion, while simultaneously establishing legitimate frameworks for digital assets.
From South Korea’s response to transnational money laundering and Africa’s emerging legal frameworks to the UK’s escalation of tax enforcement, authorities are demonstrating a determination to rein in and regulate digital assets. At the same time, exchanges face the challenge of maintaining compliance in the rapidly evolving crypto landscape.
To find out more, read on.
Korean exchanges and regulators react after surge in cross-border crypto transfers with Cambodia, implicating Huione Group
South Korean cryptocurrency exchanges are facing mounting scrutiny after transfers to and from Cambodia’s Huione Group increased 1,400 times year-over-year, reaching $8.9 million in 2024.
According to U.S. and U.K. authorities, the Phnom Penh-based Huione Group operates as a sanctioned transnational criminal network that allegedly launders digital assets from fraud and theft through its Huione Guarantee platform.
The dramatic increase persisted into 2025, with $2.2M transferred from January to October, primarily via the Tether stablecoin. Bithumb processed the most significant volume at $8.7M, while Upbit showed $257Min flows after a period of no previous activity. The scale raises critical questions about the effectiveness of transaction monitoring, despite Korea’s strict compliance regime.
Beyond crypto exchanges, Korean bank branches in Cambodia show concerning exposure, paying $1Min interest to Prince Group while holding$63.7M in frozen deposits. This dual vulnerability in the financial sector highlights systemic risks related to cross-border digital asset flows to high-risk jurisdictions.
Korean regulators now mandate enhanced anti-money laundering controls, pre-emptive account freezes, and coordinated restrictions with the Ministry of Foreign Affairs. Meanwhile, all five Korean exchanges—Upbit, Bithumb, Coinone, Korbit, and Gopax—have suspended transactions with Huione Group.
Why this matters:
This case shows how sanctioned entities exploit stablecoin liquidity for illicit cross-border transactions, despite protocols. Exchange compliance officers must address monitoring gaps, and regulators need tighter controls to combat money laundering by crime syndicates.
Read more on Korea Times.
Ten African countries developing crypto regulations show widespread DeFi adoption
With the Bank of Ghana’s recent announcement that crypto regulations will be in place by the end of 2025, the country became the tenth in Africa to have laws governing digital assets. Among those countries are Nigeria and South Africa, two of Africa’s largest economies.
Nigeria formally recognized cryptocurrency assets in April 2025, following the passage of the Investment and Securities Act. This Act defines all forms of crypto as securities and puts them under the authority of the Securities and Exchange Commission.
In 2022, South Africa recognized the advantages of cryptocurrency, declaring it a financial product and subjecting it to the jurisdiction of the Financial Sector Conduct Authority (FSCA). The FSCA has since issued dozens of licenses, with a range of international crypto firms setting up operations in the country.
As of October 10, 2025, a partnership between QR payment provider Scan to Pay and Bitcoin payments company MoneyBadger enables South Africans to pay with cryptocurrency at 650,000 stores nationwide. Meanwhile, a partnership between Ripple and local bank Absa empowers the bank to offer cryptocurrency custody services. South African lawmakers continue to refine regulations governing cryptocurrencies.
Other countries to watch as their crypto regulatory frameworks settle into place are Kenya, Botswana, Namibia, Tanzania, Rwanda and the island nations of Mauritius and the Seychelles.
Why this matters:
The formalization of crypto regulations in Nigeria, South Africa, and eight other African economies sets clear, enforceable standards that convert unregulated markets into supervised financial sectors. Regulators now have legal frameworks to license operators, enforce AML measures, and integrate crypto into their mainstream monetary systems.
Read more on Cointelegraph.
UK’s tax crackdown on unreported gains will catch many crypto investors as HMRC tightens crypto regulation
The somewhat relaxed approach to transaction reporting is over for UK crypto investors. Updated guidance from His Majesty’s Revenue and Customs (HMRC)regarding how crypto is treated for tax purposes makes it clear that every trading, swapping, buying, or selling event will be taxable. Additionally, all crypto activities will be considered income rather than capital gains.
HMRC now has increased enforcement power. Under the Organization for Economic Co-operation and Development’s (OECD) Crypto Asset Reporting framework, which all G7 countries are adopting, major exchanges must share KYC and transaction data directly with tax authorities. As a result, exchanges like Coinbase, Kraken, and Binance UK are already sending customer data to HMRC, which will be used to cross-check taxpayer filings. To make tax matters worse, the Capital Gains Tax (CGT) threshold for the 2024/25 tax year was cut to just £3,000, a massive reduction from £12,300in 2023/24. Penalties range from 10% to 200% of the tax owed, depending on whether the underreporting is deemed careless, deliberate, or deliberately concealed. Where evasion is proven, guilty parties could even face imprisonment.
As HMRC sends tens of thousands of letters to suspected crypto under-reporters, tax professionals are reporting a surge in crypto-related queries, and many retail investors are struggling to reconcile years of DeFi activity and forgotten exchange accounts before the current tax year closes.
Why this matters:
The UK’s crypto industry faces interesting and challenging times ahead. Investors, regulators, and law enforcement agencies will carefully observe how the stricter tax regulations affect crypto transactions and usage under the new regime.
Read more on Cryptoslate.
