PwC’s 2025 Global Crypto Regulation Report offers its third annual Global Crypto Regulation, which provides an overview of the progress made in crypto adoption. This report includes how regulators are addressing it in different jurisdictions and the impact on both the crypto and traditional finance (TradFi) sectors.It has been written for all industry role players, including governments, regulators, law enforcement agencies, investigators, exchanges, and their compliance teams.
Crystal Intelligence has provided this summary to help all players in the crypto industry understand the implications for them.
Global crypto regulation trends in 2025
This section provides an overall glimpse at crypto regulation globally, and focuses on the US, which is key to shaping the future of crypto’s integration into the broader financial framework.
The chart below shows the status quo in selected countries and jurisdictions, with a key at the foot of the chart.
From the PwC Global Crypto Regulation Report 2025, Pages 4 & 5
Global crypto regulation trends in 2025 by country, region, or jurisdiction
USA
In 2025, President Trump adopts a more crypto-friendly position, shifting away from former President Biden’s ‘regulation by enforcement’ approach. Legislators are reassessing a range of crypto bills that could establish clearer oversight and regulation. For compliance officers, this means aligning internal controls with a clearer U.S. regulatory outlook.
Asia
Asian financial centers like Hong Kong and Singapore are leading the way with improved crypto regulations that promote growth while mitigating risks. Both are implementing crypto exchange licensing regimes and stablecoin frameworks that ensure consumer protection without stifling innovation. Crystal sees these frameworks as key benchmarks for international licensing and exchange governance.
The European Union (EU)
Markets in Crypto-Assets Regulation (MiCAR) is in effect, but a transitional period, called ‘grandfathering,’ will allow firms to operate under their member-state rules until mid-2026. However, varying timelines between EU countries have created regulatory inconsistencies that could adversely impact business strategies and access to markets. Compliance teams must track member-state differences to avoid strategic blind spots.
The Middle East
Led by the United Arab Emirates (UAE) and Bahrain, several Middle Eastern countries are adopting comprehensive crypto regulatory frameworks to encourage fintech investment. The trend has spread to other emerging economies such as South Africa. These developments are crucial for investigative agencies tracing cross-border activity.
The United Kingdom (UK)
The UK indicated its intention to expand its crypto asset framework in late 2024, when His Majesty’s (HM) Treasury announced that a range of crypto assets and stablecoins would be brought under its regulatory wing. Meanwhile, the Financial Conduct Authority (FCA) initiated a ‘nuts and bolts’ consultation, and the full crypto framework will be implemented during 2026. Investigators and risk professionals should prepare for stricter enforcement and clearer operational guidelines.
General global crypto regulation trends in 2025
Increased stablecoin regulation worldwide: Scrutiny of stablecoins by regulatory authorities is increasing globally, with the EU already completely regulating them. The US, UK, and several Asian countries are developing regulatory frameworks for stablecoins as well. Crystal sees these frameworks as key benchmarks for international licensing and exchange governance.
Intensified AML and transparency requirements: Anti-money laundering (AML) laws for digital assets are tightening globally, and most jurisdictions are implementing the Financial Action Task Force’s (FATF) ‘Travel Rule,’ if they have not already done so. Meanwhile, regulators worldwide are targeting opacity and abuse by enforcing customer identification processes and sanctioning illicit mixing services.
Growth of crypto integration with the TradFi system: Governments are accelerating the blending of digital assets with TradFi, with several of them experimenting with crypto-specific digital sandboxes. For example, the EU and UK are piloting digital securities sandboxes while also testing the issuing of blockchain-based government bonds.
Increased emphasis on data governance: As uptake of blockchain and tokenization increases globally, authorities are enacting stricter data accuracy, security, and accessibility requirements for crypto firms, heightening the expectations of how crypto firms manage their customers’ data.
Greater scrutiny of crypto and DeFi innovation: Regulators worldwide are increasing their oversight role over DeFi and crypto projects, while authorities such as those in the US and EU are seeking to apply existing AML rules to DeFi protocols, foretelling a likely “same risk, same rule” approach.
Focus area: The crypto regulation landscape in the US
President Trump’s pro-crypto election platform, ascent to office, key appointments and dismissals, and adoption of crypto-forward executive actions while repudiating crypto-hesitant ones has blown open the markets. The US looks set to be a world leader as it heralds a new era for digital assets which will change the game for how digital asset business and governance look now and in future, both domestically and abroad.
Alignment in the US crypto regulation industry
Unlike the disjointed messaging of the past, blockchain projects, financial institutions (FIs), and regulators can innovate within a coherent regulatory framework:
- TradFi and decentralized finance (DeFi) will integrate more seamlessly owing to clearer custody and blockchain laws.
- The Securities and Exchange Commission’s (SEC) new digital assets framework will accelerate institutional investors’ entry into the market.
- So-called ‘crypto-native’ companies (which already have blockchain technology incorporated into their business architecture) will have a clearer regulatory path.
- The Digital Asset Working Group, which embeds innovation within a clear regulatory framework, was established by Executive Order.
Service and product innovation in US crypto regulation
As the regulatory framework becomes clear, the U.S. crypto landscape will be transformed for market entrants, and institutional adoption will accelerate.
1. Staked Exchange Traded Funds (ETFs): ETFS have been approved across various blockchain networks.
The SEC’s progressive new position on digital asset ETFs has ushered in a new phase of crypto investment opportunities:
- Increased mainstream interest in networks beyond Bitcoin and Ethereum.
- ETFs have improved liquidity and market depth.
- Investors have opportunities to create passive income.
2. Entrenched Stablecoin Regulation: The US looks set to embrace comprehensive stablecoin legislation, thus exploiting stablecoins’ full potential.
- Bank-issued stablecoins, backed by insured deposits.
- Greater consumer protections backed 1:1 with high-quality assets.
- Integrated with TradFi.
- A clear legal framework that lets fintech and TradFi entities compete fairly while achieving compliance.
New legislation such as the Guiding and Establishing National Innovation for U.S. Stablecoins Act of 2025 (GENIUS Act) and the Executive Order prohibiting a US Central Bank digital Currency (CBDC) implies that the stablecoin economy is market-driven, rather than state-controlled. This will include stablecoin issuers, who are reassured by the regulatory framework.
3. Market infrastructure and tokenized securities are expanding:
The Digital Asset Working Group’s incoming recommendations will raise tokenized securities adoption and ensure compliance with US securities requirements.
- Tokenized real-world assets (RWA) will become popular, and firms will flourish in refreshed regulatory clarity.
- Intermediaries and regular exchanges will integrate blockchain transactions and make capital markets more efficient.
- The SEC and the Commodity Futures Trading Commission (CFTC) will cooperate on classifying and integrating commodity and security assets.
These changes will improve transparency, shorten settlement times, and integrate blockchain tech within a sound regulatory regime.
Conclusion on US crypto regulation and its global footprint
The U.S. is shifting toward transparent, innovation-friendly crypto regulation, which will influence global crypto adoption policy. The industry should, however, be cognizant that cross-border and interstate, and federal-to-state legislative fluctuations carry the inherent risk of regulatory arbitrage.
Alongside Europe’s MiCAR and the progress observed in Asian countries such as Hong Kong, a clearer U.S. framework could create the groundwork for universal regulation standards, bolster adoption at an institutional level, and help develop a harmonized global digital asset ecosystem that assimilates into the wider financial system.
Views from global standard-setting bodies
Here, the report provides feedback and predictions from the world’s key standard-setters for crypto regulation.
The Financial Stability Board: the global crypto regulatory framework
The Financial Stability Board (FSB) first published its global regulatory framework for managing crypto assets in July 2023.
It recommended, firstly, bringing crypto asset actions into the regulatory fold, and secondly, planning for stablecoins. Its key principles include “same activity, same risk, same regulation,” promoting high-level, flexible, and technology-neutral guidelines for the crypto industry. The FSB outlines a global regulatory framework for crypto-assets and stablecoins, stressing the safeguarding of client assets and cross-border cooperation.
The FSB emphasizes the need for strong governance, risk management, and transparency in global stablecoin arrangements. Authorities must ensure timely redemption and robust regulatory compliance before GSC arrangements commence in their jurisdictions.
The FSB also reported in October 2024 that 93% of its members have plans for new or revised frameworks for crypto-assets, and 88% for stablecoins. Meanwhile, a majority of FSB members (62% for crypto-assets and 60% for stablecoins) expect to align with the FSB framework by 2025. However, many issuers and service providers operate without robust regulations, presenting challenges due to inconsistent implementation of the FSB framework.
Basel Committee on Banking Supervision’s global prudential standards
The Basel Committee on Banking Supervision (BCBS) finalized crypto asset exposure rules in July 2024, effective January 2026, requiring jurisdictions to align their regulations. Unbacked and unstable crypto assets face stricter treatment.
BCBS divides crypto assets into two groups:
- Group one: These crypto assets, like stablecoins and tokenized assets, follow Basel rules. Add-ons or fees apply for weak infrastructure or high risks.
- Group two: Group 2 crypto assets, including unbacked and algorithmic stablecoins, face conservative capital treatment, split into Group 2a (meeting hedging criteria) and 2b (not meeting).
- Disclosure requirements: Banks must report crypto activities and classifications annually. Semi-annual updates cover capital and liquidity and are monitored by regulators.
The Financial Action Task Force’s commitment to financial integrity
In July 2024, the Financial Action Task Force (FATF) released, alongside its annual report, its fifth update on jurisdictions’ compliance with Recommendation 15 (R.15) concerning virtual assets (VAs) and virtual asset service providers (VASPs).
Global implementation of R.15 remains weak, with 75% of jurisdictions only partially or not compliant, and many lacking risk assessments or regulatory decisions. The “Travel Rule” is poorly enforced, with 30% lacking legislation and weak implementation in compliant areas.
The FATF urges urgent action and will support struggling jurisdictions while monitoring progress and issue a follow-up report later in 2025.
A call to action from Standard-Setting Bodies (SSBs) for crypto regulation
The International Organization of Securities Commissions (IOSCO): In November 2023, IOSCO issued 18 recommendations for regulating crypto-asset service providers. They aim to align crypto rules with traditional finance, emphasizing investor protection and market integrity.
In December 2023, IOSCO issued nine DeFi recommendations on structure, risks, disclosures, enforcement, and cooperation. An October 2024 report urged better crypto risk education for retail investors.
The FSB: In November 2023, the FSB reported on the financial stability risks from multi-function crypto-asset intermediaries (MCIs). MCIs combine services like trading, custody, and token issuance. MCIs offer efficiencies but create vulnerabilities like leverage, liquidity mismatches, and operational risks. Combining functions without strong controls and transparency worsens these risks.
The FSB warned that a major MCI failure could disrupt the crypto ecosystem due to its centrality and interconnectedness. Though current threats are limited, stronger cooperation and regulation are essential.
In October 2024, the FSB reported that while DLT-based tokenization poses no immediate risk, rapid growth could threaten financial stability. The report warns that tokenization may heighten liquidity, leverage, and valuation risks, especially if regulation lags or products become overly complex.
The FSB urges better data collection, legal clarity, and global cooperation. Proactive oversight is vital to safeguard financial stability amid tokenization’s growth.
Worldwide crypto regulation developments in selected jurisdictions
The report then focuses on the crypto adoption and regulation status of selected countries and jurisdictions. Crystal will provide snapshots of PwC’s findings over the coming weeks.
Conclusions on the PwC crypto regulation report
This report offers a detailed and insightful foundation for understanding emerging regulatory models on the global crypto regulatory landscape. It is an exciting time for the crypto industry as the US looks primed to take on a leadership role in the integration of DeFi with TradFi. It can be read here.
It is an exciting time for the crypto industry as the US looks primed to take on a leadership role in the integration of DeFi with TradFi.
It is also a daunting time.
The inception and adoption of new technologies will challenge regulators and exchange compliance teams alike. Accelerating industry developments will no doubt usher in a flood of new criminal typologies which will keep law enforcement agencies and investigators on their toes, and blockchain intelligence companies will be tested to keep the global crypto ecosystem safe.
