This week, pressure is mounting across the crypto landscape as regulators in the U.S., UK, and Australia take decisive steps to reshape the rules of engagement.
The U.S. moved to isolate a major laundering hub with alleged links to North Korea, while the UK advanced a bill to bring crypto firmly under financial regulatory oversight.
Meanwhile, Australia’s industry leaders are urging their re-elected government to accelerate crypto-specific legislation.
Find out more about each of these stories below.
FinCEN Proposes Ban on Cambodia’s Huione Group Over $4B in Alleged Crypto Laundering
On May 1, 2025, FinCEN designated the Cambodia-based Huione Group as a primary money laundering concern under Section 311 of the USA PATRIOT Act.
FinCEN alleges that Huione has been laundering illegal proceeds on behalf of the Democratic People’s Republic of Korea (DPRK) and other Southeast Asian Organized Criminal Groups (OCGs) in addition to perpetrating multiple convertible virtual currency or “pig butchering”, scams.
The document provided by FinCEN suggests that these issues go further than just systematic AML failures, and that officials in Huione maintained direct ties to an un-named DPRK Intelligence Officer as well as OCGs.
FinCEN alleges that Huione Group laundered $4 billion between mid-2021 and early 2025 through its subsidiaries, Huione Pay PLC, Huione Crypto, and Haowang Guarantee, including $37 million in CVC from North Korean cyber scams.FinCEN’s proposed rule will prohibit American institutions from having active accounts with the group, effectively severing Huione’s access to the US economy. The proposal is open for public comment for 30 days before potentially being implemented.
Why this matters:
While FinCEN’s proposed rule is not in place yet, removing access to the US Dollar financial system would be a serious blow to the Huione Group, a prominent institution in Cambodia. It should be noted that the company has itself previously acknowledged AML / CFT failings.
However, the allegations of insiders and close ties to OCGs and DPRK suggest negligence over incompetence. The story is a stark reminder to exchanges and similar companies of the importance of having strong compliance frameworks and ensuring appropriate counterparty due diligence is performed.
Learn more about this story at FinCEN.
UK Introduces Draft Bill to Bring Crypto Firms Under Financial Regulation
The UK’s Chancellor of the Exchequer, Rachel Reeves, introduced draft legislation to regulate cryptocurrency exchanges, dealers, and agents, aiming to curb misconduct while fostering legitimate innovation in the crypto-asset sector on April 29, 2025.
The proposed new laws will require crypto firms operating in the UK to comply with standards for transparency, consumer protection, and operational resilience, and bring crypto exchanges and businesses further under the wing of the financial regulations currently governing the traditional finance sector.
Approximately 12% of UK adults have engaged with cryptocurrencies, a significant rise from 4% in 2021. The legislation is expected to be finalized by the end of 2025, although critics warn that regulation could create a misleading sense of safety around inherently risky assets.
The UK’s initiative follows ongoing concerns by Bank of England Governor Andrew Bailey, who has expressed skepticism about Bitcoin, but acknowledges the need for regulating stablecoins. Reeves also discussed regulatory collaboration with U.S. Treasury Secretary Scott Bessent and plans to outline a broader financial services growth strategy, stressing the importance of financial services to the UK’s strategic approach to integrating crypto asset business into the economy.
Why this matters:
Both exchanges and regulators must be aware of the growing alignment between the UK’s crypto regulatory framework and that of the US, which aims to integrate the industry into existing financial regulation laws.
This is unlike the EU, which has ushered in laws specifically designed to govern the crypto industry and has expressed concerns that the US approach could introduce instability to the Euro. Industry role players should keep a keen eye on developments during Chancellor Reeves’ July 15 Mansion House speech.
Learn more about this story at Reuters.
Regional industry leaders urge Australia’s re-elected Labor Party to act quickly on crypto regulation
The Australian electorate returned Anthony Albanese’s Labor Government to power with a clear 54.9% majority on May 3, 2025. While the Labor and the opposition parties had all promised to shake up crypto legislation, only the opposition had promised action within 100 days of taking office.
Immediately, regional industry leaders sprang into action, imploring Albanese’s government to move quickly on crypto regulation.
Coinbase’s APAC managing director, John O’ Loghlen, urged the Labor government to establish a crypto-asset task force within its first 100 days in office to “[bring] forward legislation that protects consumers [and] promotes innovation.”
Additionally, Binance’s Joy Lam said that “timing is really quite critical now because obviously it’s something that has been discussed and kicked around for quite a few years.”
Caroline Bowler, the CEO of BTC Markets added that “everyone’s moving towards providing the regulatory framework that is needed for the industry to develop in a sustainable way. So, time is really of the essence now.”
In the meantime, the Australian Treasury has announced plans to release draft legislation regarding digital asset platforms and the modernization of payment systems by the end of June. The proposed regulatory framework involves using the existing Australian Financial Services License (AFSL) regime to regulate digital asset platforms and payment stablecoins, emphasizing the secure custody of client assets by centralized providers.
Why this matters
Although the track record of Australian governments on crypto adoption is largely commendable, industry leaders stress the urgency of the situation, noting that rivals such as the US, UK, and EU are advancing more quickly with their crypto regulatory frameworks. Australian authorities need to take these warnings seriously to remain competitive in the evolving global crypto market.
Learn more about this story at Cointelegraph.
