PwC Releases the Global Crypto Regulation Report 2025
PwC has released the Global Crypto Regulation Report 2025, exploring the rapidly changing regulatory environment for digital assets and analyzing policy changes and emerging trends across more than 50 jurisdictions. The report also examines the shifts in the United States’ stance on cryptocurrency regulation, the implementation of the EU’s Markets in Crypto-Assets Regulation (MiCAR), and the increasingly established regulatory frameworks worldwide.
Top Ten Trends in Global Cryptocurrency Regulation for 2025
1. Clarification of U.S. Regulation
The regulatory policies in the U.S. regarding cryptocurrencies are expected to evolve in a more favorable direction by 2025, addressing the jurisdictional disputes between the SEC and CFTC, and providing clear guidance for the industry.
2. Asia Actively Formulating Regulatory Frameworks
Financial centers in Asia are strengthening regulations on cryptocurrencies. Hong Kong has introduced a licensing system for cryptocurrency OTC and custody services, while Singapore has released a regulatory framework for stablecoins.
3. Uncertainty During the EU’s MiCAR Transition Period
Although MiCAR has come into effect, cryptocurrency operators can continue to operate under their national regulations until mid-2026, which may lead to inconsistencies in domestic regulation due to varying implementation timelines among member states.
4. Emergence of Regulatory Frameworks in the Middle East and Emerging Markets
The UAE is establishing a comprehensive regulatory framework for crypto assets through authorities like Dubai’s VARA and Abu Dhabi’s FSRA, with other regions such as Bahrain and South Africa also introducing licensing systems for cryptocurrency exchanges and issuers.
5. Progress in the UK’s Crypto Asset Regulatory Framework
As the UK Treasury plans to regulate crypto assets and stablecoins by the end of 2024, the FCA has opened consultations on the relevant regulatory framework, with full implementation expected by 2026.
6. Strengthened Global Regulation of Stablecoins
Jurisdictions worldwide are beginning to introduce specific laws to ensure the reliability and reserve backing of stablecoins, with MiCAR fully regulating stablecoins, while the UK and Asia are developing regulatory systems for payment-based stablecoins.
7. Enhanced Data Governance
The increasing prevalence of blockchain and tokenization will necessitate stricter requirements for data accuracy and access control to mitigate risks related to fraud, cyber threats, and operational errors.
8. Stricter Anti-Money Laundering (AML) and Transparency Standards
Most jurisdictions have already implemented or are in the process of implementing the FATF’s Travel Rule, requiring cryptocurrency exchanges and service providers to adhere to transfer standards consistent with those in banking.
9. Increased Scrutiny of Decentralized Finance (DeFi) and Cryptocurrency Innovations
IOSCO and FATF have issued policy recommendations for DeFi, with regulators in the U.S. and EU considering the application of securities, fraud, and AML laws to DeFi, indicating that the principle of “same risk, same regulation” will apply to cryptocurrency services in the future.
10. Integration of Cryptocurrency into the Financial System
Multiple jurisdictions worldwide have launched regulatory sandboxes and pilot programs for security-type virtual currencies. The EU and UK are trialing the issuance of government bonds on the blockchain. As investment products related to cryptocurrencies receive approvals globally, it indicates a gradual integration into the financial system.
Wu Wei-tai, COO of PwC’s Financial Services, stated that the recent industry trends and market reactions indicate that the U.S. remains a key player in the future development of digital assets. The borderless nature of cryptocurrencies has led to heightened risks, prompting governments worldwide to actively formulate relevant regulatory measures to protect investors, maintain market stability, and encourage financial innovation.
Since 2023, Taiwan’s Financial Supervisory Commission has also announced the opening of professional investors to commission investments in virtual asset ETFs, launched a pilot for virtual asset custody services, and plans to release a draft virtual asset service law by the end of March 2025, based on foreign regulations, marking a significant leap in regulation that aligns with international trends.
Striking a Balance Between Encouraging Innovation, Protecting Investors, and Maintaining Financial Stability and Market Integrity
Wu Shang-tun, an accountant at PwC’s Financial Services, mentioned that the launch of the 2025 global regulatory and legislative frameworks will help the virtual currency market move out of uncertainty and toward clearer institutional regulations, promoting closer integration between fintech and traditional finance, thus leading to the maturation of certain application scenarios such as stablecoins and asset tokenization.
Meanwhile, operators should focus on strengthening compliance with laws and internal control systems. In terms of financial accounting, given that there are currently no specific regulations in international accounting standards regarding virtual currencies, this will be a key area for future observation.
Hu You-chen, an accountant at PwC’s Financial Services, expressed that the characteristics of virtual currencies in the financial sector contribute to cross-border payments and financial efficiency; however, international standard-setting bodies have pointed out the risks arising from virtual asset trading.
At present, Taiwan applies existing laws to the taxation of virtual asset trading, and there are no specific laws governing it, leaving many taxation issues and details to be clarified. To avoid regulatory arbitrage opportunities, a unified regulatory framework and international cooperation are needed globally. Taiwanese operators should continue to monitor the standard-setting directions proposed by international organizations in order to respond in advance.
Observations on the Movements of International Organizations
| International Organization | Time | Discussion Items | Recommended Direction |
|---|---|---|---|
| Financial Stability Board (FSB) | July 2023 / October 2024 | Recommendations on the regulation of crypto asset activities, global stablecoins (GSC), customer asset protection, conflict of interest, cross-border cooperation | The FSB points out that inconsistent implementation of regulatory frameworks makes cross-border activity regulation difficult, urging countries to establish and implement systems. The FSB also recommends more measures to regulate stablecoins to prevent market confidence crises that could lead to bank runs. |
| Basel Committee on Banking Supervision (BCBS) | December 2022 / July 2024 | Prudent handling of crypto assets, classification of first and second-class crypto assets, disclosure requirements and risk management | Related standards will be postponed to January 2026, becoming more stringent, including a ban on banks trading certain crypto assets and requiring banks to disclose information about their held crypto assets. |
| Financial Action Task Force (FATF) | March 2024 / June 2024 | Recommendation 15 and its interpretation, AML/CFT for virtual assets, implementation of the Travel Rule | The FATF calls on jurisdictions to implement related standards, including the Travel Rule, as soon as possible, and plans to issue a report in 2025 on the progress of various regions. |
| International Organization of Securities Commissions (IOSCO) | November 2023 / December 2023 / October 2024 | Regulatory policy recommendations for crypto assets and digital asset markets, DeFi policy recommendations, investor education and protection measures | IOSCO calls for enhanced regulatory cooperation to address cross-border issues and urges member countries to implement policy recommendations to protect investors and maintain market integrity. |
| Financial Stability Board (FSB) | October 2024 | The impact of tokenization on financial stability | The FSB suggests considerations for regulators and international organizations, including monitoring data gaps in the tokenization process, how tokenization applies to laws and regulatory frameworks, and cross-border information sharing. |
| Financial Stability Board (FSB) | November 2023 | The impact of multifunctional crypto asset intermediaries (MCIs) on financial stability | Due to the failure of certain regions to establish consistent regulatory frameworks, creating regulatory arbitrage opportunities, the FSB suggests that comprehensive implementation of regulatory frameworks will help address the vulnerabilities of MCIs. |
The Global Crypto Regulation Report 2025 is the third annual report published by PwC, summarizing the current regulatory status of cryptocurrencies across jurisdictions globally (including Taiwan) and analyzing the regulatory trends of international organizations, as well as the potential impacts of changes in the regulatory environment on cryptocurrency operators and financial institutions. Download the report