Japan’s leading securities firms are preparing to enter the cryptocurrency investment market as the country moves closer to introducing a new regulatory framework for digital assets.
According to a report by Nikkei Asia, major brokerage firms, including SBI Securities and Rakuten Securities, plan to introduce cryptocurrency investment trusts once Japan’s Financial Services Agency finalises the rules governing such products.
The move signals growing institutional interest in digital assets in Japan and follows the rapid expansion of crypto exchange-traded funds in the United States.
SBI Securities, part of SBI Group, and Rakuten Securities, a subsidiary of Rakuten Group, are expected to offer investment products that allow retail and institutional clients to gain exposure to cryptocurrencies through existing brokerage accounts.
The products are likely to include cryptocurrency investment trusts and exchange-traded funds linked to digital assets such as bitcoin.
By offering crypto exposure through traditional investment accounts, the companies aim to simplify access for customers who may not want to use dedicated cryptocurrency exchanges or manage digital wallets directly.
The report said the investment products will be developed by companies within the wider financial groups rather than by the brokerage businesses alone.
Interest in crypto investment products is expanding across Japan’s financial sector.
In a survey conducted by Nikkei, 11 additional firms said they are considering entering the market after the regulatory framework is completed. These companies include Nomura Securities, Daiwa Securities and Mizuho Securities.
The participation of large financial institutions could broaden access to digital assets for mainstream investors in Japan and increase competition within the country’s investment market.
Japanese financial groups have taken a cautious approach to cryptocurrencies in recent years because of regulatory uncertainty and past market volatility. However, the planned legal changes are encouraging firms to prepare new investment offerings.
Japan is currently revising how cryptocurrencies are classified under national financial laws.
In early April, the Japanese government approved a draft amendment that would classify cryptocurrencies as financial products under the Financial Instruments and Exchange Act. At present, cryptocurrencies are mainly treated as payment tools.
If approved by parliament, the revised law could take effect during fiscal 2027.
The proposed changes would place digital assets under a regulatory framework similar to traditional securities products. This could strengthen investor protection measures and create clearer compliance standards for financial institutions offering crypto-related products.
The reforms are also expected to support the launch of regulated crypto investment products, including spot cryptocurrency exchange-traded funds (ETFs).
Japan’s planned crypto investment products follow strong growth in the United States market.
Spot cryptocurrency ETFs were approved in the US in January 2024. Since then, bitcoin ETFs have attracted significant investor demand.
According to data provider SoSoValue, US spot bitcoin ETFs now hold more than $100 billion in net assets.
The rapid growth of the US market has increased interest among financial firms in other regions, including Japan, where regulators are now reviewing similar investment structures.
The introduction of crypto investment trusts and ETFs in Japan could mark a major shift in how traditional financial institutions participate in the digital asset industry.
Crypto.com is now the first cryptocurrency platform authorised by the UAE Central Bank to provide regulated cryptocurrency payment services within the nation’s financial system after receiving a Stored Value Facilities (SVF) licence from the UAE.
With a regulated framework, the clearance enables Crypto.com to facilitate digital asset payments for services related to the government. The technology would reduce volatility concerns and guarantee compliance with central bank rules by quickly converting cryptocurrency payments into UAE dirhams or certified stablecoins.
A major regulatory step has been taken with Crypto.com’s recent clearance in the UAE, which permits its licensed firm to process cryptocurrency payments for government services under Dubai’s Virtual Assets Regulatory Authority (VARA) framework. While settlements are made in dirhams, the licence creates a partnership with Dubai Finance that allows citizens to pay fees in digital assets. As the first site with exclusive access to these services, Crypto.com gains a solid foundation in the finance scene of the area.
The initiative is in line with the UAE’s larger efforts to incorporate digital finance into public processes while upholding regulatory control. In contrast to the compliance issues frequently encountered in the cryptocurrency sector, Crypto.com’s global strategy of obtaining licences and cultivating relationships with regulators is strengthened.
Dubai’s efforts to become a cashless economy are a part of a larger digital transformation plan that aims to make the emirate one of the world’s most developed economies. By 2026, the government wants 90 per cent of transactions to be cashless; this change is anticipated to boost the economy by billions of dirhams every year. Dubai is integrating digital payments into regular services, such as government transactions, making them as commonplace as card payments rather than treating cryptocurrency as a distinct entity.
In addition to drawing fintech innovation and foreign investment, this shift helps firms by lowering transaction friction, increasing efficiency, and promoting e-commerce growth. The goal is to establish a completely integrated financial ecosystem that smoothly integrates digital payments, blockchain, fintech, AI, and traditional banking.
Through bitcoin wallets connected to Crypto.com’s licensed platform, citizens of the UAE will be able to pay for permits, registrations, and other government services. The rapid conversion feature, which immediately converts cryptocurrency payments into UAE dirhams before they reach government accounts, is what makes it useful.
The UAE’s crypto licence may soon cover regular travel and shopping in addition to government services. According to reports, Dubai Duty Free and Emirates Airlines may use cryptocurrency payments when more permits are obtained. If put into practice, travellers might use digital assets to pay for services, book flights, and shop duty-free while retailers would still earn dirhams through rapid conversion.
The UAE’s changing crypto laws are changing the global market by showing that innovation and regulation can coexist. Through the VARA, which manages licensing and compliance for digital asset companies, Dubai has established organised frameworks rather than enforcing prohibitions. Global businesses, investors, and entrepreneurs who like to work in settings with clear regulations are drawn to this clarity.
The cryptocurrency payment system in the UAE is perhaps the beginning of a larger regional change in the Middle East. Gulf countries are already making significant investments in fintech, digital infrastructure, and diversification; Dubai’s example may inspire others to do the same. The area is well-positioned for the adoption of digital finance due to its high smartphone usage, sophisticated banking institutions, youthful, tech-savvy populace, and robust government support.
South Korean investors have withdrawn more than $41 billion from the cryptocurrency market over the past year, as falling bitcoin prices and collapsing trading volumes triggered a major shift towards traditional equities.
New data from the Bank of Korea showed the total value of virtual assets held by domestic investors fell to approximately $41.17 billion by the end of February 2026, down sharply from $82.76 billion at the market’s peak in January 2024.
The figures represent a decline of more than 50 per cent in just over 12 months, underlining the scale of capital flight from digital assets as investors seek safer and more stable returns elsewhere.
The decline coincided with a sharp slowdown across the wider crypto market, particularly in bitcoin trading activity, as reported by Bitcoin News. Meanwhile, average daily trading volume reportedly dropped from $11.62 billion in December 2024 to $3.06 billion by February 2026. Won-denominated exchange deposits also fell from $7.27 billion in late 2024 to $5.30 billion in February.
Analysts said the downturn was driven by a combination of falling cryptocurrency valuations and surging stock market performance, encouraging investors to rotate capital into equities.“The shift reflects an overall decline in valuation and a pivot toward more stable, interest-bearing domestic and international stock markets,” the report noted.
However, stablecoins continued to attract growing interest from South Korean investors. Holdings of dollar-pegged stablecoins climbed to a record $592.7 million in December 2024 before easing slightly to $412.5 million by February 2026. Stablecoin holdings are still more than double what they were in July 2024, when total holdings were only $60.1 million.
The crypto sell-off comes as global equity markets continue to outperform many digital assets. South Korean retail investors have increasingly redirected capital into domestic and international shares, particularly technology and artificial intelligence-related stocks, amid expectations of stronger long-term returns.
Despite the sharp decline in holdings, South Korea remains one of the world’s most influential retail crypto markets. The country has historically recorded some of the highest trading activity globally, with local investors playing a major role in bitcoin, ethereum and altcoin demand during previous crypto bull runs.
However, regulators have also tightened oversight of digital assets in recent years. South Korea will start taxing crypto gains at 22 per cent beginning January 2027. This will target investors who earn more than 2.5 million won (around $1,800) annually from digital assets. The policy is expected to affect about 13.26 million crypto investors.
According to officials, cryptocurrency revenues should be handled similarly to income from conventional investments. The National Tax Service is now collaborating with major exchanges like Upbit, Bithumb, Coinone, Korbit, and Gopax to build systems capable of managing the expected transaction volume.
Apart from this, South Korea is preparing to tighten oversight of digital assets through a proposed law that would bring stablecoins and tokenised real-world assets under existing financial regulations. A draft of the “Digital Asset Basic Act”, outlines a framework that integrates parts of the crypto sector into the country’s current legal system rather than creating entirely new rules.
South Korea will start taxing cryptocurrency gains at 22 per cent beginning January 2027, targeting investors who earn more than 2.5 million won (around $1,800) annually from digital assets, according to South Korea news outlet Edaily. The policy is expected to affect roughly 13.26 million crypto investors as the government tightens oversight of the rapidly growing market.
According to officials, cryptocurrency revenues ought to be handled similarly to income from conventional investments. Critics worry that the existing regulatory framework could not be robust enough to successfully implement these regulations. Industry watchers are keeping a close eye on South Korea’s strategy since it may have an impact on how other Asian markets regulate cryptocurrency.
Income from cryptocurrency lending and transfers will be subject to taxation in South Korea starting on January 1, 2027, under the category of “other income.” Any yearly earnings beyond 2.5 million won, or about $1,800, will be subject to a 22 per cent tax rate that combines a 2 per cent local surcharge with a 20 per cent national tax. However, given that stock traders have recently benefited from more favourable tax benefits, some contend that the comparatively low threshold is unjust to regular cryptocurrency investors.
Officials insist the framework was established in earlier amendments and will move forward as planned, emphasising that all income should be taxed equally. The National Tax Service is now collaborating with major exchanges like Upbit, Bithumb, Coinone, Korbit, and Gopax to build systems capable of managing the expected transaction volume.
South Korea’s cryptocurrency tax policies go beyond trading profits. After an individual’s yearly gains exceed 2.5 million won, or around $1,800, earnings from buying and selling assets like Bitcoin or Ethereum are taxable. The restrictions also apply to income from cryptocurrency lending, where investors lend their assets through exchanges or DeFi platforms. This type of income is managed in a manner akin to that of interest received in traditional finance.
The government is proceeding with the 2027 implementation in spite of opposition, supported by new reporting mechanisms under the Crypto-Asset Reporting Framework (CARF). Establishing uniform criteria so that investors and regulators can easily navigate the system is currently the actual challenge.
The question of why earnings from digital assets are regarded differently from those from traditional investments is at the heart of the fairness argument. Although many investors agree to pay taxes, they contend that cryptocurrency traders are subject to more stringent regulations than stock investors, who have recently benefited from more favourable tax treatment.
This, according to critics, establishes a two-tier system that discourages people from participating in the local cryptocurrency market. Since cryptocurrency transactions already resemble commodities that are governed by value-added tax laws, some are concerned about possible double taxation. Another problem is enforcement, which results in uneven compliance because users on domestic exchanges are simpler to monitor than those trading on decentralised or foreign platforms.
Although the government recognises these issues and sees the Crypto-Asset Reporting Framework as a step toward improved cross-border monitoring, detractors contend that regulations frequently fail to keep up with the speed at which technology is developing, leaving gaps, especially in decentralised systems.
The complexity tax in South Korea is anticipated to change the sector in a number of ways. Retail traders may go to more difficult-to-monitor offshore, decentralised platforms or reduce their speculative behaviour. Clearer laws may draw in more institutional investors, but domestic exchanges may have to pay more for compliance.
The tax could push everyday investors to move away from quick, short-term trades and instead focus on long-term, more strategic investing, with careful tax planning. At the same time, smaller platforms may struggle to keep up with the added reporting and regulatory requirements, while larger exchanges are better equipped to handle them.
The impending 22 per cent cryptocurrency tax in South Korea is indicative of a larger worldwide change in how governments handle digital assets. With regulation and taxation becoming commonplace, what was before seen as a specialised experiment is now being integrated into conventional financial institutions.
Rules in one nation may have an impact on other nations since international reporting systems like CARF are intended to promote cross-border cooperation. The 2027 implementation in South Korea is not solely a matter of domestic policy. Over the next ten years, it may influence how cryptocurrency taxes and regulations change globally.
Morgan Stanley has officially entered the retail crypto trading market with the launch of low-cost cryptocurrency trading on E*Trade, offering fees that undercut major rivals including Coinbase, Robinhood, Charles Schwab and Fidelity.
The Wall Street bank quietly launched a pilot version of the service on 6 May, enabling select E*Trade users to buy and sell Bitcoin, Ether and Solana directly through their brokerage accounts. The platform charges a flat 0.5 per cent transaction fee, or 50 basis points, making it one of the cheapest crypto trading options among major US financial institutions.
The move marks a significant expansion of Morgan Stanley’s digital asset ambitions as traditional banks intensify competition with crypto-native exchanges for retail investors.
Morgan Stanley’s pricing strategy immediately positions E*Trade among the lowest-cost crypto trading platforms in the market. Charles Schwab recently introduced spot Bitcoin and Ether trading at 75 basis points, while Fidelity charges roughly 1 per cent per transaction. Coinbase retail trading fees can exceed 0.5 per cent depending on account tier and payment method.
Although Robinhood markets itself as commission-free, its spreads reportedly range between 35 and 95 basis points, often resulting in higher effective trading costs for customers. Industry analysts believe the move could trigger an industry-wide fee war similar to the race towards ultra-low expense ratios in the Bitcoin ETF market.
The crypto trading pilot is expected to expand to all 8.6 million E*Trade customers later in 2026, potentially creating one of the largest retail crypto onboarding channels in the US brokerage industry.
Unlike crypto ETFs or fund-based exposure, the E*Trade service provides direct ownership of digital assets. Customers can hold Bitcoin, Ether and Solana inside their brokerage accounts without paying additional fund management fees.
The service does not currently support staking. Morgan Stanley partnered with crypto infrastructure provider Zerohash to power the platform’s backend operations, including liquidity, custody and trade settlement. The arrangement also removes the complexity of private key management for retail users.
The E*Trade launch forms part of Morgan Stanley’s broader expansion into digital assets and blockchain-based financial services. Earlier this year, the bank launched its MSBT Bitcoin ETF with a 0.14 per cent expense ratio. The fund reportedly attracted more than $100 million in inflows within days of launch.
According to media, the company is also developing additional crypto investment products tied to Ether and Solana while pursuing regulatory approvals that would allow direct crypto custody and staking services.
Morgan Stanley has also applied for a national trust bank charter through the Office of the Comptroller of the Currency, a move that could strengthen its position in digital asset custody infrastructure.
Morgan Stanley’s entry into retail crypto trading intensifies pressure on established crypto platforms such as Coinbase and Robinhood. Coinbase generated $3.32 billion in consumer transaction revenue in 2025 and recently launched commission-free stock and ETF trading to compete more directly with traditional brokerages. Meanwhile, the company has cut around 700 jobs, or roughly 14 per cent of its global workforce, as the company responds to weaker trading activity and accelerates a broader shift towards artificial intelligence-driven operations. Robinhood, meanwhile, generated approximately $901 million from crypto-related activity last year, accounting for roughly one-fifth of its annual net revenue.
According to Crypto News, Morgan Stanley may hold a major advantage through its vast distribution network. The firm’s 16,000 financial advisers oversee approximately $9.3 trillion in client assets, giving the bank access to an investor base that crypto-native firms struggle to match.
The bank is also preparing a proprietary digital wallet expected to launch in the second half of 2026. The wallet is designed to support cryptocurrencies alongside tokenised stocks, bonds and real estate assets as tokenisation becomes an increasingly important trend across global financial markets.
Morocco is shifting from prohibiting the use of cryptocurrencies to creating a framework for regulated digital assets. According to local media reports, authorities are re-evaluating previous prohibitions amid the growing global use of cryptocurrencies like Bitcoin and Ethereum. The change reflects growing awareness of blockchain-based financial systems and their ability to facilitate cross-border transactions. To mitigate risks associated with volatility, consumer protection, and financial stability, authorities simultaneously focus on implementing monitoring measures.
In 2017, Morocco took a strong stand against cryptocurrencies and outlawed their use and transactions nationwide. To support this decision, the authorities cited a number of issues, such as possible threats to financial stability, difficulties with regulatory compliance, and the potential for digital currencies to weaken the value of the national currency.
The absence of consumer protections was another concern raised by regulators, who cautioned that consumers can be vulnerable to fraud or losses for which they have no redress. Money laundering, capital flight, and tax evasion were among the other hazards mentioned because it is hard to track down anonymous transactions. Although the ban was intended to reduce these risks, it did not completely stop cryptocurrency use, as it was still used unofficially.
Between 2019 and early 2025, Morocco’s cryptocurrency user base increased from 3.65 million to over 6 million, accounting for approximately 16 per cent of the nation’s total population. This increase is especially noteworthy because it occurred in spite of a nationwide ban, demonstrating that public demand for digital currencies remained robust and flourished well beyond the purview of official regulation.
Morocco is now among the top 25 nations worldwide for cryptocurrency adoption, thanks to its rapid growth, according to Chainalysis. Morocco’s stance emphasises to politicians the necessity of addressing the reality of widespread use rather than relying solely on prohibition.
Morocco is moving from outright banning cryptocurrencies to regulating them. The goal of a proposed law that is nearing final approval is to bring cryptocurrency activity under state supervision instead of keeping it illegal. Reducing dangers like fraud and unstable finances while allowing for the controlled usage of digital assets is the aim. To align Morocco’s approach with broader practices and make it easier to incorporate into the global financial system, the proposed framework relies on international standards, such as those set by international organisations and the European Union.
Morocco’s proposed crypto law puts licensing requirements on service providers, including exchanges and custodians, to guarantee that only compliant organisations may operate. Another crucial factor is the possibility of cryptocurrencies becoming acknowledged as financial instruments, which would give them legal standing and establish a more open transaction system.
There are more obvious advantages to regulating cryptocurrencies in Morocco than to keeping them completely prohibited. Authorities may lower fraud and hold service providers accountable by implementing standards and licensing, which will give users and companies greater assurance.
Morocco is starting to regulate cryptocurrencies, which could have a big impact on the country’s economy. In addition to attracting investment and fostering innovation, a regulated market may increase financial access for those who do not use traditional banking institutions. With 16 per cent of people now using it, cryptocurrency is probably going to become more ingrained in daily financial transactions in the future.
Ahead of AIBC Asia, we’re taking a closer look at several countries in the region that have worked hard to try and become Asia’s next cryptocurrency hub. After years marked by regulatory uncertainty, governments are now competing to bring digital-asset activity onshore with clearer rules, licensed products and institutional-grade infrastructure.
No single winner has emerged yet, but the contours of a regional contest are taking shape across Hong Kong, Singapore, Japan and parts of Southeast Asia. In this article, we’ll be looking at the different countries and their policies regarding crypto.
We’ll also be taking a closer look at crypto regulation next month at AIBC Asia – the undisputed regional powerhouse in crypto events. The Asia roadshow conference will include panels on crypto, regulation and prediction markets, among other topics. Don’t miss out on tracks such as: The Future of Regulation in the Asian Digital Economy and Emerald City: Asia’s Digital Asset Frontier on the 02 June. For a more detailed look and for the full list of over 250 expert speakers, browse the agenda for AIBC Asia online.
In an effort to become Asia’s crypto hub, Hong Kong has become the region’s most visible crypto test case. Its authorities have decided to address compliance with a deliberate push to attract global capital.
In May 2025, the city’s Legislative Council passed the Stablecoins Ordinance, which came into force on 1st August. The move placed fiat-referenced stablecoin issuance under the supervision of the Hong Kong Monetary Authority and made marketing of unlicensed stablecoins illegal to curb retail risk.
The Hong Kong government also paired the legislation with pilot projects. According to blockchain compliance firm Elliptic, the HKMA entered the pilot phase of its tokenization programme, Project Ensemble, in November 2025. Participants include Standard Chartered, HSBC, Bank of China (Hong Kong), BlackRock and Franklin Templeton. The project used Hong Kong’s real-time gross settlement system to test interbank settlement of tokenized deposits.
Over time, Hong Kong’s market access also expanded. The Securities and Futures Commission had approved 11 licensed virtual-asset trading platforms by early 2026, while the launch of Asia’s first spot Bitcoin and Ether exchange-traded funds on April 30 marked a milestone.
Unlike Hong Kong, Singapore is Asia’s most tightly regulated crypto market. The city-state is unapologetic about its conservative position.
Amendments to the Financial Services and Markets Act now require all digital-token service providers, including overseas exchanges serving Singapore residents, to obtain a local licence from the Monetary Authority of Singapore (MAS) or exit the market. Authorities have also banned credit-card purchases of crypto and introduced minimum capital requirements to protect retail investments.
The approach has not reduced activity. The MAS issued 13 new digital payment token licences in 2024, bringing the total to 29 by November. Industry executives say Singapore’s willingness to facilitate banking relationships for licensed crypto firms remains a competitive advantage.
Singapore’s incumbents are also active. Vivien Khoo, co-founder of the Asia Crypto Alliance, noted that Singapore and Hong Kong now operate “fairly similar” licensing frameworks, making regulatory arbitrage increasingly difficult.
Japan, one of the first countries to regulate crypto exchanges, is revamping its model to stem an outflow of capital and talent.
The government is preparing to cut crypto capital-gains tax from as high as 55% to 20%, a reform that would bring digital assets closer to the taxation of equities. Regulators are also weighing rules that would require exchanges to hold emergency reserves to cover cyberattacks and operational failures.
In November 2025, Japan’s Financial Services Agency publicly backed a stablecoin pilot project involving the country’s three largest banks. This step was seen as critical for rebuilding confidence after a string of high-profile exchange scandals earlier in the decade. Together, tax reform and bank-backed stablecoins signal Tokyo’s intention to make crypto compatible with its existing financial system rather than a parallel industry.
South Korea is moving in the same direction, with a comprehensive digital-asset framework expected to take effect in 2026. Stablecoin legislation, described by Elliptic as a priority of President Lee’s economic growth agenda, is aimed at keeping Seoul competitive with Hong Kong, Singapore and Tokyo. South Korea already boasts one of the world’s most active retail trading communities, giving regulators an incentive to formalise oversight rather than suppress activity.
Elsewhere in Asia, growth is being driven by adoption rather than financial engineering. Central and Southern Asia led the world in crypto usage in 2024, while countries such as Indonesia, Malaysia and Thailand are gaining ground. Thailand is finalising rules for crypto ETFs and futures trading, positioning itself as a regulated gateway for retail and institutional investors in Southeast Asia.
Across the region, Asia had more than 326 million crypto users in 2024, according to industry estimates, reflecting a mix of speculative trading, remittances and decentralised finance use cases.
Rather than a single winner, Asia’s next crypto hub may be a network of specialised centres. Hong Kong leads on product innovation, Singapore on consumer protection, Japan on banking-grade pilots and tax reform, while other countries are doubling down on compliance.
What unites them is a coordinated licensing push that industry executives say is drawing offshore activity back onshore. With tokenised assets projected by Boston Consulting Group to reach $16 trillion by 2030, Asia’s bet is that regulatory clarity, not deregulation, will determine where the next phase of crypto finance takes root.
For a more in-depth look at the crypto industry in Asia, don’t miss out on AIBC Asia at the end of May. Taking place at the SMX Convention Center in Manila, AIBC Asia will bridge the worlds of AI, blockchain, crypto and the gaming industry, bringing over sixteen thousand key players together under one roof. If you haven’t already, get your ticket now by visiting our website to register.
Brazil has moved to restrict the use of stablecoins and cryptocurrencies in cross-border payments, banning electronic foreign exchange (eFX) companies from using digital assets to settle overseas remittances under new central bank rules.
The new resolution from the Central Bank of Brazil prohibits eFX firms from using cryptocurrencies such as Bitcoin and stablecoins to complete international transfers. The ban is set to take effect on 1 October.
The regulation requires that payments between Brazilian firms and overseas counterparts be processed through traditional foreign exchange channels or via non-resident real-denominated accounts held in Brazil.
The rules also prevent remittance providers from accepting Brazilian reais, converting them into digital assets and settling transactions via blockchain networks.
While crypto trading itself remains legal, the policy is expected to impact companies that had integrated stablecoin-based settlement into their cross-border payment systems, including firms such as Wise.
The regulatory shift comes amid strong growth in Brazil’s digital asset sector. Data from the country’s federal revenue service indicates that crypto transactions total between $6 billion and $8 billion per month, with around 90 per cent of that volume driven by stablecoins.
Brazil ranks among the world’s leading markets for crypto adoption, with an estimated 25 million users engaging in digital asset transactions.
Despite their reputation as a disruptive force in cross-border finance, stablecoins currently represent only a small fraction of global payment flows.
Research highlighted by McKinsey & Company shows that most stablecoin payment activity is concentrated in markets such as Hong Kong, Japan and Singapore, with relatively limited usage in regions like Latin America and Africa.
Analysts note that many of the advantages associated with cryptocurrencies, including faster transactions, lower costs and greater flexibility, are increasingly being matched by improvements within traditional financial systems.
Advances such as real-time payment rails, reduced foreign exchange costs and the use of application programming interfaces (APIs) are transforming cross-border payments without requiring a shift to entirely new infrastructure.
Brazil’s latest move reflects a broader trend among regulators seeking to balance innovation with financial stability and oversight. In 2025, crypto transactions linked to human trafficking grew sharply, rising 85 percent compared to the previous year. Much of this activity was tied to scam compounds in Southeast Asia, where people were tricked with fake job offers and then forced to run fraud schemes under threats of violence.
In order to transfer money across borders, trafficking networks, including those connected to so-called “international escort” services, have been using stablecoins more and more. These flows have been tracked across nations including Brazil, the US, and the UK. Blockchain openness has made it possible for investigators to track the money despite the size of these operations, providing a unique opportunity to destroy the networks behind these crimes.
India’s Enforcement Directorate (ED) is sharpening its focus on cryptocurrency fraud, terror financing, cyber-enabled crime and narcotics trafficking.
Speaking at the agency’s 70th ED Day event, as reported by The Economic Times, Director Rahul Navin said traditional financial crimes such as bank and real estate fraud have declined, largely due to regulatory frameworks like the Insolvency and Bankruptcy Code and the Real Estate Regulation and Development Act.
The agency’s enforcement activity has increased significantly over the past year. During 2025-26, the ED filed 812 charge sheets and 155 supplementary charge sheets. This is nearly double the numbers recorded in the previous financial year.
Navin said the agency currently maintains a conviction rate of 94 per cent, with around 2,400 money laundering cases pending trial across Indian courts. He expressed confidence that most of these cases would result in convictions.
The ED has also returned assets worth ₹63,142 crore (abouy $6.6 million) to victims of financial fraud, including homebuyers, investors and banks. Established in 1956, the agency operates under key legal frameworks including the Prevention of Money Laundering Act, the Fugitive Economic Offenders Act, and the Foreign Exchange Management Act.
The shift towards crypto-related offences comes as digital assets increasingly feature in financial crime investigations. Authorities have flagged concerns over their use in money laundering, cross-border transfers and illicit financing.
India’s tax authorities have recently intensified oversight of digital asset transactions, issuing notices to investors who failed to report crypto activity in previous financial years.
Using advanced data systems such as the Insight Portal and Checkpoint/Restore In Userspace (CRIU) risk engine, officials are analysing exchange data, PAN-linked Know-Your-Customer (KYC) records and bank transactions to detect discrepancies. In some cases, total trading volumes have been treated as deemed income, significantly increasing potential tax liabilities.
These notices, issued under Section 148A of the Income-tax Act, act as early warnings, allowing investors to clarify discrepancies before formal proceedings begin. However, failure to respond could lead to penalties or further investigation.
The enforcement push is part of a broader regulatory framework introduced in the Union Budget 2026. This budget introduced penalties for inaccurate crypto reporting and strengthened compliance requirements.
India is also on it’s way to use the OECD’s Crypto-Asset Reporting Framework starting in April 2027. This will allow for cross-border sharing of crypto transaction data. It is expected to improve oversight of offshore holdings and lower tax evasion risks.
Financial crime patterns have also changed. While traditional fraud linked to banking and real estate is declining, new-age risks tied to digital finance, cybercrime and globalised transactions are expanding rapidly.
As India strengthens both enforcement and regulatory frameworks, crypto-related compliance is set to become a central focus for authorities, investors and financial institutions alike. This is important as India’s cryptocurrency market recorded transactions worth ₹51,000 crore ($5.4 billion) in 2024–25, a 41 per cent increase on the previous year.
The rise reflects growing use of virtual digital assets amid evolving government policy and institutional activity. India has become one of Asia’s largest crypto markets, driven by younger investors and fintech adoption. Despite high taxation and the absence of formal regulation, digital assets such as Bitcoin, Ethereum and stablecoins are being used as alternative investment options.
A CEX.IO survey of 1,100 U.S. users demonstrates how the decline in cryptocurrency is impacting daily life. Nearly 47 per cent of Bitcoin’s circulation supply is lost, as it is currently selling close to $77,000 and roughly 40 per cent below its October 2025 top. According to the survey, 10 per cent of participants made major financial sacrifices in order to maintain their positions, while 36 per cent of respondents reduced daily spending due to cryptocurrency losses.
The survey also found that 37 per cent of participants delayed or cancelled purchases, including 21 per cent who postponed major financial decisions such as buying a home or car. Analysts describe the current cycle as a more gradual, less volatile downturn than in 2022, with limited panic selling. However, market data indicates the bear phase may continue into late 2026 as conditions evolve.
A recent survey shows how crypto losses are affecting the everyday lives of retail traders. About 36 per cent have cut back on non-crypto spending, and 10 per cent made significant sacrifices to keep their investments. The impact extends to bigger decisions, too. Around 37 per cent of users delayed or cancelled purchases, and for 21 per cent of those, it was a major milestone, such as buying a home, a car, or renovating a property. The pattern is similar to what happens during large economic disruptions, showing how deeply crypto investments influence personal finances.
Many crypto investors keep their holdings private, not out of secrecy but because these investments can be personal and complex. Only a small number of people fully share what they own or its value, since explaining crypto often requires discussing wallets, tokens and prices that change by the minute.
Unlike traditional assets, there are no simple statements to show, and decisions are usually made alone, which adds to the sense of independence. There is also an emotional side: losses can be hard to talk about, especially when they stem from personal choices.
During bear markets, this silence can turn into emotional isolation, with financial stress becoming something people deal with privately. Constant price swings and market uncertainty can affect sleep and mental wellbeing, making downturns not just a financial challenge but also a psychological one.
Bear market strains household budgets (Source: CEX.IO)
Many crypto investors are feeling cashflow pressure beneath the surface. About 38 per cent reported financial disruption, with some dipping into savings or emergency funds to cover daily expenses, resources meant for emergencies such as job loss or medical needs.
The stress shows up in other ways, too: 12 per cent admitted to missing or delaying bill payments because of crypto-related pressures. That’s a serious sign, since it affects essential obligations. And these numbers may understate the reality, as people are often reluctant to share financial struggles tied to personal investment choices.
Nearly half of retail investors have more than 30 per cent of their assets tied up in crypto, creating a heavy concentration in one volatile market. When prices fall, the impact ripples through the rest of their financial lives, making everyday stability harder to maintain.
Most traders haven’t changed how they earn money despite the financial pressure from crypto volatility. About 73 per cent continue with the same income streams, showing either resilience or a decision to wait things out rather than make big lifestyle changes. Only 9 per cent have taken on extra work, which suggests that while the strain is real, it hasn’t yet led to widespread shifts in how people approach their earnings.
Many investors say their biggest regret isn’t putting too much money into crypto but failing to set clear exit strategies. About 41 per cent wish they had defined rules for taking profits, underscoring the importance of planning in volatile markets. Despite setbacks, most still believe in Bitcoin’s future, 79 per cent are holding or adding to their positions. For many, this isn’t denial but conviction that the asset will recover over time.
Long-term Bitcoin holders have continued to add more than 1 million BTC in recent months, according to latest on-chain data, demonstrating their faith in the asset despite market volatility. Even while selling pressure has been mostly restrained, almost half of the whole Bitcoin supply is currently in the red. This combination implies that large holders are still demonstrating commitment by growing their positions even while many investors are experiencing unrealised losses.
The Monetary Authority of Singapore (MAS) is reviewing its capital framework for cryptocurrency firms as part of efforts to strengthen oversight of the digital asset sector. In order to ensure that licensed crypto service providers have adequate financial buffers to handle risks including market volatility and operational breakdowns, the proposed modifications seek to clarify capital requirements.
The Payment Services Act, which governs cryptocurrency operations in Singapore, mandates licensing, adherence to anti-money laundering regulations, and consumer protection measures. As authorities react to the expanding size and complexity of digital asset markets, the most recent assessment expands upon this framework. According to officials, the action is a part of a larger plan to strengthen Singapore’s standing as a regulated centre for fintech and cryptocurrency activity while striking a balance between innovation and financial stability.
The Basel Committee on Banking Supervision has set out rules on how banks should treat crypto assets in their capital calculations. The framework is intended to guarantee that banks have sufficient capital to offset possible losses resulting from volatile exposures. Global regulators concur that there are hazards associated with cryptocurrency, such as fluctuations in price, weaknesses in technology, and difficulties with liquidity. Although deadlines differ by jurisdiction, it was originally anticipated that these criteria would be implemented in January 2026.
Group 1 consists of some stablecoins and tokenised traditional assets. Because real-world assets support them or preserve price stability through reserves, these are regarded as lower risk. Lower capital requirements apply to banks that deal with these assets.
Group 2 includes cryptocurrencies like Ethereum, Bitcoin, and the majority of tokens on open blockchains that are unstable or unsupported. These are regarded as high-risk, and full capital deduction is frequently required due to severe capital charges. They are not considered stable financial instruments in a regulatory sense, but rather speculative holdings.
The goal is to adapt worldwide regulatory standards to Singapore’s unique financial landscape. Regulators warn that applying Basel’s framework unaltered might stifle innovation, particularly for blockchain-based assets that do not neatly fit into established categories. They advocate for a more flexible approach instead of depending on Basel’s strict classification system, warning against categorising all permissionless blockchain assets as high-risk Group 2 securities.
According to the proposal, if specific criteria are met, some cryptocurrency assets may be eligible as Group 1. As a result, their risk weights could be lower than those of other digital assets. A more sophisticated framework that strikes a compromise between risk management and room for innovation is presented in the proposal. The result may have an impact on how Singaporean institutional players interact with cryptocurrency assets.
Under Basel rules, cryptocurrencies on permissionless blockchains such as Bitcoin and Ethereum are generally classified as high risk. The reasons include a lack of centralised control, significant price volatility, and uncertain regulatory support. Heavy capital requirements discourage banks from holding these assets. The MAS has proposed a structure that is more adaptable. Rather than immediately labelling all permissionless assets as high-risk, MAS suggests assessing them based on predetermined standards.
Lower-risk holdings could include assets that exhibit stability, transparency, and efficient risk management systems. In contrast to Basel’s general regulations, this would enable banks to impose less onerous capital requirements. The proposal reflects the view that blockchain technology has evolved. Some newer assets exhibit stronger governance, improved liquidity, and more reliable infrastructure than earlier cryptocurrencies.
The MAS has proposed strict limits on banks’ exposure to crypto assets. Reclassified assets cannot exceed 2 per cent of a bank’s Tier 1 capital, serving as a safeguard against excessive risk. Additional controls apply to banks issuing crypto assets that create liabilities on their balance sheets. Such issuance must remain below 5 per cent of Tier 1 capital. These measures are designed to prevent banks from taking on disproportionate risks while allowing limited participation in the crypto sector.
The MAS initially intended to follow Basel’s 2026 timeline, but following input from the industry, implementation has been rescheduled until 2027. A smoother adoption process and time for modifications are made possible by the delay. The delay allows for more time for changes and a more seamless adoption process. MAS’s methodology may have an effect on how bitcoin assets outside of Singapore are classified. By giving Basel’s framework more flexibility, the proposal may have an impact on future international standards.
Singapore’s attempt to strike a balance between risk management and innovation is reflected in the consultation. The nation’s place in the changing environment of digital finance will depend on how the framework is implemented.
Enterprise adoption of Web3 is being held back not by technological limitations, but by the complexity of orchestration and control across systems, according to Serena Sebastiani, Chief Strategy & Venture Officer at Fuze.
Speaking exclusively at AIBC Eurasia 2026 in Dubai, Sebastiani said enterprises are struggling not with innovation, but with integration. “So in our space, technology rarely fails,” Sebastiani said. “What is really difficult is the orchestration layer and how you keep control of all the pieces and how you put your own ecosystem together.”
She explained that enterprises face mounting challenges in streamlining operations across fragmented systems, including fiat infrastructure, payment rails, liquidity and Web3 technologies. “It’s really around streamlining operations and having control of fiat, rails, liquidity, Web3 and the products and your clients more than technology itself that now evolves,” she added.
The comments come at a time when Web3 is transitioning from early experimentation to real-world implementation, but still lacks depth in enterprise-grade deployment.
According to Deloitte’s Q2 2025 CFO Signals survey, nearly one in four CFOs expect their finance functions to use digital currency within two years, with adoption rates even higher among larger enterprises (40 per cent). That said, CFOs still have doubts about digital assets. In the survey, about 43 per cent of respondents cited price volatility, 42 per cent complexities around accounting and controls, and 40 per cent cited lack of industry regulation as their top concerns about investing in crypto.
This gap highlights a broader industry challenge: while infrastructure and innovation have advanced rapidly, operational cohesion has lagged behind. Similarly, research from PwC shows that enterprise blockchain adoption is increasingly focused on efficiency gains, particularly in payments, settlements and supply chains, but integration complexity remains a top barrier.
Looking ahead, Sebastiani argued that mainstream Web3 adoption will depend less on breakthrough products and more on usability. “It’s really a matter of seamless integration,” she said. “There is maybe not one particular product or stream that will lead, it’s how we integrate from a user experience perspective.”
While decentralised finance continues to dominate the crypto landscape, she noted that poor user experience remains a significant hurdle. “DeFi is quite a space and is the largest adoption in crypto, but still, UX is not that great; it has to be improved,” she said. For Sebastiani, the benchmark for success is simple: accessibility for everyday users.
“I’ll be happy to see when my sister or my mother, who do not know anything about crypto, will start using AI, then we can say that we have facilitated that adoption,” she said.
Industry data strongly supports this view. Various studies, including digital asset technology solutions company ChainUp, show that between 60 per cent and 90 per cent of users abandon crypto onboarding before completing their first transaction, largely due to the complexity of wallet setup, gas fees, and identity verification. Meanwhile, over 80 per cent never return after a single use.
Sebastiani also highlighted regulatory clarity as a key enabler of enterprise adoption. “Regulatory frameworks are enablers eventually,” she said. “Regulators look at predictability, which enables the ecosystem to rely on trust.” She explained that clearer rules create a safer environment for institutions to integrate blockchain into both customer-facing services and underlying infrastructure.
(Source: AIBC World/YouTube)
Recent developments support this shift. In 2025, the European Union advanced its digital finance framework, while global regulators increased efforts to standardise crypto compliance, moves widely seen as unlocking institutional participation.
At the same time, major financial players are actively expanding into blockchain. JPMorgan Chase has issued tokenised debt on blockchain networks, signalling growing confidence in distributed ledger technology. Meanwhile, Goldman Sachs recently filed for a Bitcoin-focused exchange-traded fund (ETF), aiming to provide exposure to digital assets through regulated investment products.
As AI and blockchain converge, Sebastiani stressed the importance of governance and compliance. “It always goes back to safeguards and governance,” she said, pointing to evolving privacy regulations such as Europe’s Third Payment Services Directive (PSD3) framework.
She also noted advancements in privacy-preserving blockchain technologies. “It’s really about trust, compliance and governance,” she added. Industry-wide, technologies such as zero-knowledge proofs and confidential computing are gaining traction, enabling secure data sharing while maintaining regulatory compliance.
Despite rapid technological progress, Sebastiani reiterated that control and orchestration remain the central obstacles. “The challenge is how you keep control of all the pieces,” she said, underscoring the difficulty of managing interconnected systems.
The scale of the opportunity reflects the urgency of solving this issue. According to a report by global market research and consulting firm MarketsandMarkets, the global blockchain market is projected to grow from around $33 billion in 2025 to nearly $393 billion by 2030, at a CAGR of over 60 per cent.