Regulatory updates

Korea sets VASP registration criteria and scraps the Travel Rule threshold

South Korea's cabinet approved amendments to the Enforcement Decree of the Act on Reporting and Using Specified Financial Transaction Information on 11 August 2026. Registration criteria took effect on 20 August: a debt ratio of 200% or below, no default in the past three years, no history as an insolvent financial institution, and expanded major-shareholder review. Separately, the KRW 1 million Travel Rule threshold is removed entirely — information sharing will apply to transfers of any value from February 2027, six months after promulgation. Existing providers have a one-year grace period on the debt-ratio, staffing, IT and internal-control requirements.

Korea: strengthened VASP review factors now in force

Act No. 21358 took effect on 20 August 2026, adding major-shareholder suitability, financial condition, social credibility and capacity to KoFIU's review factors for all pending and new VASP registrations.

ASIC extends AFSL no-action deadline to 30 September 2026

ASIC has extended its sector-wide no-action position from 30 June 2026 to 30 September 2026, giving firms dealing in digital asset financial products until end of September to apply for an AFSL or notify ASIC for market/CS facility licences. Implementation dates for the Digital Assets Framework Act have also been confirmed: the Act commences 9 April 2027, with an AFSL application window from April to October 2027 under regulatory relief.

Position confirmed: no transitional period for DTSP licensing

MAS has consistently maintained that in-scope digital token service providers serving only customers outside Singapore must be licensed or cease those activities, with no transitional period. MAS has stated it will grant DTSP licences only in extremely limited circumstances, citing money-laundering risk and its inability to supervise activity conducted substantively outside Singapore. Ongoing obligations include minimum base capital of S$250,000, a Singapore-based compliance officer, and annual audits.

Travel Rule stable; wider EU AML architecture continues to develop

No material change to the Transfer of Funds Regulation itself, which has applied without a transitional grace period since 30 December 2024. The surrounding framework continues to move: crypto-asset service providers are explicitly obliged entities under the Anti-Money Laundering Regulation (2024/1624), which becomes fully applicable in July 2027, and DAC8 tax reporting obligations begin to bite for platforms from 2026.

Travel Rule stable; sits alongside the incoming FSMA regime

No material change to the UK Travel Rule, which has applied since 1 September 2023 under Part 7A of the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017. It remains part of the current perimeter alongside financial promotions until the FSMA cryptoasset regime commences on 25 October 2027. The FCA has indicated it will consult on updates to the Financial Crime Guide relevant to cryptoasset firms.

Travel Rule adoption widens; FATF presses on implementation quality

Global adoption continues to broaden — a 2026 compliance assessment reported that 85 of 117 assessed jurisdictions, around 73%, had passed Travel Rule legislation, with enforcement reported in more than 70. FATF's 2025 Targeted Update found progress on AML regulation and enforcement but flagged continuing difficulty identifying persons conducting VASP activity, and its 2025 revision to Recommendation 16 pressed jurisdictions to clarify the chain of responsibility between originating and beneficiary VASPs. Fragmented national adoption and limited interoperability remain practical obstacles.

Crypto-asset module stable; stablecoin and payments rulebooks moving separately

No material change identified to the CBB Crypto-Asset (CRA) Module itself, which has been in force since February 2019 and amended periodically. Related frameworks have moved: the CBB Stablecoin Issuance and Offering Module is in force following the CBB's July 2025 rulebook letter, setting reserve, custody, AML/CFT and technology-governance requirements for approved stablecoins, and in May 2026 the CBB amended Rulebook Volumes 3 and 4, updating authorisation requirements for payment service providers and ancillary service licensees.

Crypto-asset module stable; stablecoin and payments rulebooks moving separately

No material change identified to the CBB Crypto-Asset (CRA) Module itself, which has been in force since February 2019 and amended periodically. Related frameworks have moved: the CBB Stablecoin Issuance and Offering Module is in force following the CBB's July 2025 rulebook letter, setting reserve, custody, AML/CFT and technology-governance requirements for approved stablecoins, and in May 2026 the CBB amended Rulebook Volumes 3 and 4, updating authorisation requirements for payment service providers and ancillary service licensees.

GENIUS Act rulemaking deadline passes without final rules

The statutory deadline for federal regulators to finalise stablecoin rules under the GENIUS Act expired on 18 July 2026 without finalised regulations issued. The Act's licensing regime takes effect on the earlier of 18 January 2027 or 120 days after final implementing regulations are issued, so the delay pushes the effective date outward.

Japan's Diet passes FIEA reclassification of crypto assets

The House of Councillors approved amendments to the Financial Instruments and Exchange Act on 15 July 2026, completing passage through both chambers. Crypto assets move from the Payment Services Act into the securities-law framework, with implementation targeted for fiscal year 2027. The change brings stricter insider-trading, disclosure and investor-protection obligations, raises penalties for unregistered operators (imprisonment up to 10 years, from three; fines up to 10 million yen, from three million), and removes a key obstacle to spot crypto ETFs. A separate proposal would cut the top tax rate on crypto gains from around 55% to a flat 20% from 2028. NFTs and stablecoins are not reclassified.

PSA scope narrows as crypto moves to FIEA oversight

Following the Diet's passage of the FIEA amendments, primary regulation of crypto assets shifts away from the Payment Services Act. The PSA framework — registration, segregation of user funds and AML obligations for exchanges, in place since 2017 — gives way to securities-law oversight from fiscal year 2027. Stablecoins remain regulated as electronic payment instruments and NFTs are outside the reclassification.

Korea announces National Asset Basic Act covering digital assets

South Korea's Ministry of Economy and Finance announced plans for a National Asset Basic Act that would classify virtual assets as official national assets alongside land, real estate and intellectual property, updating a framework dating from the 1950s. Separately, Korea's virtual asset tax regime is due to take effect in January 2027.

MiCA transitional period ends — full EU-wide application

All member-state grandfathering periods have now expired. ESMA's post-transition register lists 280 authorised CASPs, including Standard Chartered, authorised via its Luxembourg subsidiary on 29 June 2026. Firms without authorisation must cease providing crypto-asset services to EU clients.

Australian travel rule in force; market regulation bill progressing

The crypto travel rule took effect on 1 July 2026 under the expanded AML/CTF framework, with AUSTRAC registration having opened on 31 March 2026. VASPs must transmit originator and beneficiary information on transfers above a prescribed threshold expected to align with the FATF equivalent of around USD/EUR 1,000. Separately, the Digital Assets (Market Regulation) Bill continues through Parliament with bipartisan support, proposing a dedicated licensing framework for crypto platforms.

FCA publishes final rules for the UK cryptoasset regime

The FCA published Policy Statement PS26/9 setting out the final Handbook rules and guidance for regulated cryptoasset firms, completing its Crypto Roadmap. The authorisation gateway opens 30 September 2026 and closes 28 February 2027, with the regime commencing 25 October 2027.

Promotions regime remains the live perimeter until October 2027

Until the new FSMA cryptoasset regime commences on 25 October 2027, FCA oversight of crypto remains limited to financial promotions and anti-money-laundering controls. A consultation running to 13 July 2026 proposed removing the requirement for section 21 approvers of qualifying cryptoasset financial promotions to submit post-approval notifications, on the basis that most such promotions are already compliant. The 24-hour cooling-off period for new investors continues to apply.

PTSR transition ends; wider federal consolidation lands in September

The transition period under the Payment Token Services Regulation is reported to have ended, moving the framework into its operational phase — unlicensed payment token services and their promotion are prohibited. Separately, Federal Decree-Law No. 6 of 2025 consolidates UAE banking, insurance and payments regulation under a single framework, repealing the 2018 Central Bank Law and bringing technology providers facilitating financial services and virtual asset payment operators newly into scope, with full compliance required by 16 September 2026. Confirm exact effective dates against CBUAE Rulebook pages, which have shown differing effective-date metadata.

PTSR transition ends; wider federal consolidation lands in September

The transition period under the Payment Token Services Regulation is reported to have ended, moving the framework into its operational phase — unlicensed payment token services and their promotion are prohibited. Separately, Federal Decree-Law No. 6 of 2025 consolidates UAE banking, insurance and payments regulation under a single framework, repealing the 2018 Central Bank Law and bringing technology providers facilitating financial services and virtual asset payment operators newly into scope, with full compliance required by 16 September 2026. Confirm exact effective dates against CBUAE Rulebook pages, which have shown differing effective-date metadata.

VARA tightens AML expectations after thematic review

VARA issued updated AML guidance for licensed VASPs following its 2026 thematic review, which found gaps in data use and governance. Firms must base risk decisions on real operational data rather than assumptions, update Business Risk Assessments when material changes occur, and address emerging risks linked to AI and anonymous transactions.

SEC makes digital assets its first strategic regulatory objective

The SEC published a Draft Strategic Plan for fiscal years 2026-2030 designating digital assets and distributed ledger technology as the agency's first regulatory objective. This follows the March 2026 SEC-CFTC memorandum of understanding and the joint interpretive release on how federal securities laws apply to crypto-assets, which the CFTC endorsed and indicated it will follow in administering the Commodity Exchange Act.

European Commission opens consultation on the MiCA review

The Commission published a targeted consultation on the review of MiCA, with responses due by 31 August 2026. It will feed the Article 140 report on MiCA's application, which may be accompanied by a legislative proposal and is due by 30 June 2027. The consultation does not affect the existing authorisation regime or the 1 July 2026 transitional deadline.

CLARITY Act advances through Senate Banking Committee but stalls on the floor

The bill advanced through the Senate Banking Committee by 15-9 in May 2026 and sits on the Senate Legislative Calendar. No floor vote has been scheduled. A merged Senate draft released in July omitted the ethics provision sought by several Democrats, and disputes over law-enforcement access and stablecoin yield remain unresolved.

FINMA revises AML ordinance following FATF evaluation

FINMA published substantial revisions to the Anti-Money Laundering Ordinance during April and May 2026, responding to points raised in Switzerland's most recent FATF mutual evaluation. Reported changes include clarifying that crypto custody, staking-as-a-service and DeFi gateway services fall within the financial-intermediary definition where the provider exercises control over client assets, and lowering the threshold for simplified due diligence on occasional crypto transactions. Separately, reporting obligations to MROS were extended to crypto assets from 1 January 2026. Verify specifics against FINMA's published ordinance before relying on this summary.

VARA formalises derivatives regime and clarifies issuance rules

VARA's updated Exchange Services Rulebook formalises a comprehensive regulatory framework for exchange-traded derivatives linked to virtual assets, following a controlled pilot programme. The rules took effect immediately, with ETD services restricted to clients meeting strict eligibility and suitability standards. VARA separately issued guidance on how it expects the market to comply with the Virtual Asset Issuance Rulebook.

Grandfathering deadline approaching — July 2026

CASPs operating under national transitional regimes must obtain full MiCA authorisation by 1 July 2026 at the latest. Some member states have earlier deadlines already passed.

Authorisation gateway opens 30 September 2026

FCA confirmed application window: 30 September 2026 to 28 February 2027. Firms should begin preparing applications and familiarise themselves with SM&CR and FCA Handbook.

Cabinet approved FIEA amendment — crypto to be reclassified as financial instruments

Japan's cabinet approved a landmark bill to reclassify crypto assets under the FIEA, treating them as investment products like stocks and bonds. Penalties to increase substantially if passed by the Diet. Expected to take effect FY2027.

Japan cabinet approved landmark FIEA crypto reclassification bill

Crypto assets to be reclassified as financial instruments — the most significant shift in Japan's crypto regulatory framework since 2017. Insider trading ban, mandatory issuer disclosures, and sharply increased penalties proposed.

HKMA grants first stablecoin issuer licences

The HKMA granted the first licences under the Stablecoins Ordinance to Anchorpoint Financial Limited and The Hongkong and Shanghai Banking Corporation Limited. Licensing remains an ongoing process rather than a closed application window.

FinCEN and OFAC propose stand-alone BSA framework for stablecoin issuers

A joint notice of proposed rulemaking would implement the GENIUS Act's anti-financial-crime provisions, treating permitted payment stablecoin issuers as financial institutions under the Bank Secrecy Act through a new stand-alone framework at 31 CFR Part 1033 rather than the existing money-transmitter route. Comments closed 9 June 2026. Separately, on 7 April 2026 FinCEN proposed a broad overhaul of the AML framework across BSA-covered institutions.

OFAC proposes first mandated sanctions compliance programme requirement

In the joint rulemaking with FinCEN under the GENIUS Act, OFAC proposed for the first time to require a specific category of US financial institutions — permitted payment stablecoin issuers — to affirmatively maintain an effective sanctions compliance programme. Sanctions screening and blocking obligations continue to apply to virtual currency transactions on the same basis as fiat.

Australia's first comprehensive digital asset law enacted

The Corporations Amendment (Digital Assets Framework) Bill 2025 passed both houses on 1 April 2026. AFSL licensing deadline is 30 June 2026. Approximately 400 registered crypto platforms, only 10% currently ASIC-registered.

CMA expands federal virtual assets framework to eight activity categories

The UAE Capital Markets Authority issued a new Virtual Assets Framework expanding regulated activities from three categories to eight, adding a federal layer of harmonisation across the UAE for onshore activity while VARA continues to regulate within Dubai.

AUSTRAC AML/CTF obligations now mandatory

Existing digital currency exchange businesses must now comply with the reformed AML/CTF framework including Travel Rule.

FINTRAC steps up crypto enforcement; CARF reporting begins

Canada's enforcement posture has tightened sharply. By March 2026 FINTRAC had revoked 23 crypto-related MSB registrations, with reporting suggesting further revocations across the year, and the federal government stated it is strengthening enforcement and increasing transparency on compliance actions. FINTRAC now explicitly expects a risk-based approach to AML/CTF obligations. Separately, CARF crypto transaction reporting took effect from 1 January 2026 via Income Tax Act amendments, and a federal framework for fiat-backed stablecoins under Bank of Canada supervision is expected to come into force in 2027. Most crypto businesses require both FINTRAC MSB registration and CSA/CIRO registration — these are separate tracks.

FINTRAC steps up crypto enforcement; CARF reporting begins

Canada's enforcement posture has tightened sharply. By March 2026 FINTRAC had revoked 23 crypto-related MSB registrations, with reporting suggesting further revocations across the year, and the federal government stated it is strengthening enforcement and increasing transparency on compliance actions. FINTRAC now explicitly expects a risk-based approach to AML/CTF obligations. Separately, CARF crypto transaction reporting took effect from 1 January 2026 via Income Tax Act amendments, and a federal framework for fiat-backed stablecoins under Bank of Canada supervision is expected to come into force in 2027. Most crypto businesses require both FINTRAC MSB registration and CSA/CIRO registration — these are separate tracks.

SEC and CFTC confirmed payment stablecoins outside their jurisdiction

Joint SEC-CFTC interpretation confirmed that GENIUS Act-compliant payment stablecoins are not securities or commodities.

SEC and CFTC issued joint token taxonomy — pre-empts many CLARITY Act classification questions

Joint interpretation confirmed Bitcoin, Ether, Solana and XRP as digital commodities. Stated that most tokens are not securities. Formal rulemaking with full details expected within weeks.

SEC and CFTC issued landmark joint token taxonomy

First formal classification framework for crypto assets under US law. Ends decade of regulatory uncertainty. Bitcoin, Ether, Solana and XRP confirmed as digital commodities. Most tokens confirmed not to be securities.

SEC and CFTC signed MOU on overlapping jurisdiction

Formal truce on SEC-CFTC jurisdictional battle over digital assets. Joint Harmonisation Initiative established for aligned examinations and enforcement.

ASIC confirmed substance-over-form approach for DeFi

ASIC head of fintech confirmed regulatory obligations apply whenever identifiable parties influence a protocol's design or economic outcomes, regardless of claimed decentralisation.

CMA issued New Federal VASP Law — Decision No. 4/R.M/2026

Replaces all previous federal VASP rules. 8 activity categories, new capital requirements, acquisition threshold controls, and hard asset prohibitions. Compliance obligations began immediately.

CMA Decision No. 4/R.M/2026 issued — new federal VASP law

New federal VASP Decision replaces previous rules entirely. Establishes 8 licence categories, new capital requirements, hard prohibitions on specific asset classes.

FSMA (Cryptoassets) Regulations 2026 enacted

The legislation received Parliamentary approval and was published as SI 2026/102. Establishes the full statutory framework for cryptoasset regulation under FSMA.

Senate Agriculture Committee published Digital Commodity Intermediaries Act

Updated legislative text focusing on digital asset intermediaries under CFTC oversight. Senate markup scheduled for January 29, 2026.

FINMA published Guidance 01/2026 on crypto custody standards

Clarified requirements for segregation, bankruptcy protection, cold storage and third-party delegation. Swiss banks may hold crypto assets off-balance-sheet if properly segregated.

SFC consulted on new licensing for VA advisers and managers

Consultation launched on licensing VA advisory and portfolio management services. Removes existing 10% de minimis threshold — any portfolio investing in VAs regardless of allocation size will need licensing.

Federal CMA framework entered into force — structural reset of UAE federal crypto regulation

Capital Market Authority (CMA, formerly SCA) established with broad federal jurisdiction. Any VA traded in UAE must now be on CMA approved list. CMA has de facto veto over VARA-licensed platform listings. Unified VASP register launched.

Federal CMA framework entered into force — structural reset of UAE crypto regulation

Capital Market Authority (CMA) replaced Securities and Commodities Authority (SCA) with expanded powers. Federal token admission gateway now applies to all VAs traded in UAE. Unified VASP register launched.