In Europe, the Markets in Crypto-Assets Regulation (MiCA) became fully applicable on , with stablecoin rules having applied since . This framework aims to harmonize crypto-asset services across the EU, though transitional periods for existing crypto-asset service providers (CASPs) may extend into and, in some cases, until .
Across the Atlantic, the U.S. saw the passage of the Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act), signed into law by President Donald Trump on . This legislation established a federal regulatory framework for payment stablecoins, mandating 1:1 backing with low-risk assets and federal oversight. Additionally, the Digital Asset Market Clarity Act of 2025 (CLARITY Act) passed the House of Representatives on , seeking to clarify jurisdictional boundaries between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).
Asia also experienced significant regulatory movements. Hong Kong launched a public consultation on , regarding the implementation of the OECD’s Crypto-Asset Reporting Framework (CARF) and amendments to the Common Reporting Standard (CRS 2.0), with the consultation period ending on . In Japan, a proposal emerged to reduce crypto capital gains tax to a flat 20% as part of its tax reform, a substantial decrease from the previous rate that could reach up to 55%.
The regulatory landscape in highlighted a divergence in approaches, particularly between the U.S. and the EU. Charlyn Ho of Rikka noted that the U.S. administration adopted a strategy of supporting large technology companies and favoring minimal AI regulation, opting out of a coordinated global approach to AI governance. This stance, according to Ho, has turned regulation into a competitive tool, with the EU responding by partially deregulating AI after observing startups relocating to the U.S..
In Hong Kong, enforcement bodies gained experience in crypto-related matters, leading to the first criminal prosecutions against participants in the JPEX scandal. Joshua Chu of the Hong Kong Web3 Association emphasized that extending the rule of law into new areas requires innovation to protect victims of cybercrime and provide effective legal remedies. Prediction market platform Polymarket also made headlines, receiving CFTC approval on , to operate as a regulated exchange in the U.S.. This followed a exit from the U.S. market after a $1.4 million fine from the CFTC for operating an unregistered derivatives platform.
Experts cite several reasons for these shifts. Charlyn Ho indicated that the passage of legislation like MiCA and the GENIUS Act provided much-needed clarity, moving the crypto legal landscape toward more defined regulatory frameworks. Joshua Chu highlighted that governments are increasingly operating under fiscal pressure, making crypto wealth an unavoidable target for taxation. This is evident in Hong Kong’s consultation on crypto asset reporting and Japan’s proposed tax amendments, which aim to align crypto taxation with traditional investment products.
The specific outcomes of the criminal prosecutions related to the JPEX scandal in Hong Kong remain to be tested, as mentioned by Joshua Chu. Furthermore, the long-term impact and adoption rates of MiCA across all EU Member States, given varying transitional periods, are yet to be fully observed. The definitive timeline for legislative amendments in Hong Kong regarding crypto asset reporting and the precise date of the international AI conference mentioned are also not explicitly detailed.
Looking into , legal experts anticipate further developments in taxation, prediction markets, super apps, and privacy. Yuriy Brisov of Digital & Analogue Partners expects prediction markets, currently largely unregulated, to become a more significant trend. He also foresees the emergence of “super apps” combining multiple functions, including prediction markets, commodity trading, and AI agents, which will challenge regulators to adapt. Charlyn Ho expressed a desire for more progress in privacy and cybersecurity laws, noting that existing frameworks like GDPR, negotiated around the time cloud computing was the primary focus, do not adequately contemplate decentralized systems.
As the regulatory environment for digital assets continues to evolve, readers should remain informed about changes in their local jurisdictions. Individuals and businesses involved with crypto assets are advised to consult official government resources and legal experts regarding new tax reporting requirements, such as those being considered in Hong Kong and Japan. Users of decentralized platforms, including prediction markets and emerging “super apps,” should be aware of the varying regulatory statuses and potential legal uncertainties. Furthermore, individuals concerned about privacy in decentralized systems should monitor developments in privacy-enhancing technologies and legislative adjustments to existing data protection laws.
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