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Crypto regulations continue to evolve rapidly, and 2025 is shaping up to be a pivotal year for crypto policy worldwide.
What does this mean for developers building in this space? In this post, we’ll break down the latest trends in global crypto regulations and explore the real-world impact on businesses and builders.
Canada’s Rapid Regulatory Evolution
Canada is leaping ahead with a regulatory approach that many observers are closely watching. In early 2025, the Canadian Securities Administrators (CSA) published amendments to National Instrument 81-102, a statement of rules related to securities markets adopted in all 13 provinces and territories, setting out clear criteria and custody requirements for crypto investment funds.
These changes include:
- Custody requirements: Crypto assets must be held by qualified custodians that meet rigorous standards.
- Custodians must store crypto assets in cold wallets unless they are needed for transactions
- Best practices for custodians include:
- Using segregated wallets
- Practicing blockchain reconciliation
- Implementing multisig security
- Following cybersecurity protocols
- Having adequate insurance (judged by fund managers)
- Valuation methods: Funds must apply transparent valuation methods for crypto holdings.
- Only crypto assets that are (1) listed on a recognized exchange, or (2) used as underlying assets in specified derivatives traded on such exchanges are permitted for direct investment by Public Crypto Asset Funds.
- Investment limits: Retail-focused funds face limits when exposed to highly volatile tokens.
- Only alternative mutual funds and non-redeemable investment funds can directly hold crypto assets.
- Mutual funds that are not classified as alternative can hold crypto asset derivatives up to 10% of its net asset value (NAV) at the time of purchase.
Meanwhile, Canada’s Office of the Superintendent of Financial Institutions (OSFI) also aligned its new guidelines with the Basel Framework, classifying assets based on risk:
- Group 1 - Tokenized traditional assets (e.g. tokenized bonds or fiat-backed stablecoins)
- Group 2 - Volatile crypto tokens (e.g. Bitcoin or Ethereum)
By laying down specific and transparent rules, Canada is removing much of the uncertainty that has held back institutional adoption of blockchain, bringing crypto closer to the traditional financial system.
US, El Salvador, and the Push for International Coordination
The United States Securities and Exchange Commission (SEC) is reportedly exploring a cross-border regulatory sandbox with El Salvador. This sandbox could allow US-licensed brokers to obtain digital asset licenses in El Salvador, testing non-securities token issuances in a controlled setting. While still in its early stages, this kind of cooperation could be a blueprint for the international harmonization that many have been calling for.
US: First Crypto Bill Passed to Create a Regulatory Framework for US Dollar Pegged Stablecoins
On June 17th, the US advanced the bipartisan GENIUS Act, aimed at establishing the nation’s first clear pro-growth regulatory framework for payment stablecoins. This law introduces federal licensing, reserve requirements, and consumer protection. Following the bill’s progress, key players like Circle and Coinbase have expanded their stablecoin initiatives and Ripple is seeking US banking licenses to position themselves within the emerging regulated landscape.
Asia-Pacific: Clarity in Japan and Singapore
In the APAC region, Japan continues to lead with forward-looking, structured crypto frameworks and developments in 2025.
Japan’s Revised Payment Services Act (2023, updated in 2025) allows only licensed banks, trust companies, and registered funds transfer service providers to issue yen-backed stablecoins under strict licensing, reducing risks from overseas crypto exchange collapses.
In addition, Japan’s Financial Services Agency (FSA) continues to tightly regulate exchanges and is proposing amendments to the Financial Instruments and Exchange Act (FIEA), including:
- Classifying cryptocurrencies as financial products (moving them from their current status as “crypto-assets” under the Payment Services Act)
- Introducing a flat 20% tax rate on crypto gains on par with securities capital gains (crypto currently taxed at rates up to 55%)
- Enabling the approval of Bitcoin ETFs in Japan
The FSA plans to submit these proposed amendments to Japan’s parliament by early 2026 and could greatly expand Japan’s crypto market accessibility once implemented.
Meanwhile, financial companies like SBI (one of Japan’s leading financial institutions) and Minna-no-ginko (Japan’s first digital bank) are participating in Japan’s growing stablecoin market and streamlining digital payments, reducing processing time and fees, and cutting out intermediaries.
While stablecoin use is growing rapidly, illicit use is also evolving through increasingly complex laundering schemes. Effective risk mitigation requires global coordination, regulatory upgrades, and tech-enabled solutions. In this evolving landscape, developers are expected to build systems that comply with emerging legal frameworks. This could mean building:
- Smart contracts that are restricted to using whitelisted stablecoin token contracts
- Mandatory AML/KYC integration, including transaction monitoring and whitelisting
Japan’s push for compliant infrastructure has already spurred new initiatives like Japan Smart Chain, a sovereign Layer 1 network, tailored to meet these compliance needs. For more information on Japan Smart Chain, see our latest blog.
In Singapore, the Monetary Authority of Singapore (MAS) takes a similar balanced approach to Japan, with a licensing-first model that encourages innovation and mandates strong compliance for custody, AML/KYC, and transaction monitoring.
China’s Crypto Stance and Stablecoin Ambitions in Hong Kong
China, by contrast, maintains strict bans on most crypto activities, yet has been full steam ahead on the central bank digital currency, the digital yuan (e-CNY), despite its dwindling usage and adoption both inside and outside of China.
Last week, China’s largest e-commerce giants JD.com and Alibaba lobbied the People’s Bank of China to authorize stablecoins backed by offshore yuan to be explored in Hong Kong, with discussions ongoing but not yet confirmed for immediate launch. JD.com and Ant Group plan to leverage Hong Kong’s new regulatory framework for stablecoins, which takes effect on August 1, to first issue a Hong Kong dollar-pegged stablecoin.
This move would allow small Chinese suppliers selling on Alibaba or JD.com to accept payments from overseas customers in HKD or RMB stablecoins, and could really challenge the US dollar’s dominance in digital payment. As of May, RMB share of international payments on SWIFT was only 2.89% compared to USD which accounted for 48.46%.
Source: SWIFT
The Rise of EU and IMF Standards
The European Union’s Markets in Crypto-Assets (MiCA) regulation is live, unifying crypto regulation across all EU member states. It provides a single playbook for:
- Standardized token classification
- Licensing for crypto service providers
- Consumer protection mandates
Meanwhile, the International Monetary Fund (IMF) continues to push for broader coordination, calling on countries to adopt common standards and prioritize risk management. Their message is clear: fragmented rules create loopholes and risks for both consumers and developers. The global trend? More clarity, higher standards, and a greater emphasis on investor protection and risk transparency.
Developer Challenges: How to Future-Proof your Web3 Project
As developers, regulatory ambiguity is a top pain point that can threaten time-to-market. Conflicting laws across jurisdictions slow launches and eat into precious engineering time. What’s legal in Canada might be off-limits in the US, or only partially permitted in the EU.
For teams building cross-border applications, the compliance matrix can be a nightmare to navigate. The risks of non-compliance are significant and can mean anything from hefty fines to complete project shutdowns. The cost isn’t just financial; it’s the lost momentum, extra engineering hours, and the mental overhead of playing regulatory catch-up.
Ask yourself: how do you future-proof your app when tomorrow’s rules aren’t written yet?
If you need hands-on help, our team specializes in helping developers and enterprises adjust to new compliance requirements without losing momentum or missing critical release windows.
Book a free consultation with Curvegrid’s experts to discover how we can help you build compliant, scalable Web3 solutions no matter how regulations change. Talk to our team today at contact@curvegrid.com.
Disclaimer: Some parts of this article have been written by AI. For errata, please write to contact@curvegrid.com
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