USDThis Week in Crypto Regulation: Crypto Trading, Licensing & Stablecoins Gain Global Focus
Thailand SEC Approves USDT and USDC for ICOs and Trading, Effective March 16, 2025
On March 10, 2025, Thailand's Securities and Exchange Commission (SEC) announced the inclusion of USDT and USDC in its list of approved cryptocurrencies for initial coin offerings (ICOs) and trading pairs, effective March 16, 2025. This significant update expands the available cryptocurrencies for investment alongside Bitcoin, Ethereum, Ripple, and Stellar. The decision follows public consultations indicating strong support for stablecoins' recognition in the digital asset landscape. The new regulations aim to enhance liquidity and investment opportunities, allowing ICO issuers to accept USDT and USDC and enabling exchanges to list them as base trading pairs. This move is part of Thailand’s strategy to refine its regulatory framework, aiming for a balance between investor protection and market innovation. With the integration of these widely used stablecoins, the Thai SEC intends to promote stability and trust within the digital asset market, fostering greater participation and trading volumes.
Cayman Islands Requires VASP Licenses for Crypto Firms by April 1, 2025, with Compliance by June 30
The Cayman Islands is mandating that all cryptocurrency firms obtain a Virtual Assets Service Provider (VASP) license by June 30, 2025, with updated regulations taking effect on April 1, 2025. The new rules, under the Virtual Assets (Service Providers) (Amendment) Regulations 2025, enhance existing anti-money laundering (AML) and counter-terrorist financing (CTF) measures, requiring trading platforms and custodians to secure a license from the Cayman Islands Monetary Authority (CIMA) within 90 days. Key firms affected include Blockchain.com and Crypto.com, which must adapt their operational strategies accordingly. Compliance demands include disclosing asset types and amounts, expected revenue, and hardware locations. This regulatory push coincides with a decline in Bitcoin and Ethereum prices, with historical trends indicating that such announcements may lead to increased market volatility, reminiscent of past events like China's 2021 ban that triggered significant price drops before eventual recoveries.
UK Treasury Rejects Bitcoin Reserve Plans, Citing Volatility Concerns
The UK Treasury has announced it has no plans to establish a strategic bitcoin reserve, citing the cryptocurrency's volatility as unsuitable for the UK’s financial system. This response follows the recent creation of a bitcoin reserve by the US government under Donald Trump's administration, which aims to maintain BTC from civil and criminal forfeitures as reserve assets. The Treasury emphasized the historical instability of bitcoin compared to stable fiat currencies. In contrast, the UK currently holds approximately 61,245 BTC, valued at over $5 billion, primarily from a significant criminal seizure. While some accounting firms suggest selling the BTC could stabilize the UK economy, Bitcoin lobbyists advocate for retaining the assets to help support and increase BTC's value. The debate continues as the UK distinguishes its approach from the US, amidst varied opinions on the long-term strategies concerning cryptocurrency reserves.
El Salvador and Paraguay Sign MOU to Enhance Cryptocurrency Regulation Collaboration
On March 11, 2025, El Salvador and Paraguay signed a Memorandum of Understanding (MOU) aimed at enhancing cooperation in cryptocurrency regulation. This marks El Salvador's second regulatory commitment in recent months, following an agreement with Argentina in December. The collaboration, announced by Paraguay's SEPRELAD and El Salvador's CNAD, seeks to improve crypto sector supervision, strengthen anti-money laundering practices, and identify unauthorized operations in Paraguay. El Salvador, with its advanced regulatory framework, has positioned itself as a global leader in cryptocurrency oversight through the CNAD, which is the sole authority for licensing operators. Meanwhile, Paraguay has not yet recognized cryptocurrencies officially, advising citizens to avoid unregulated entities. This agreement highlights a growing commitment to international financial security, with El Salvador aiming to establish clear regulations and foster partnerships for safer digital asset operations in Latin America, while it remains uncertain if Paraguay will adopt a similar regulatory model.
South Korea to Release Institutional Crypto Investment Guidelines by Q3 2025
South Korea's Financial Services Commission (FSC) plans to issue comprehensive guidelines for institutional cryptocurrency investment by Q3 2025, marking a significant shift from its previous de facto ban. Announced during a meeting with local crypto experts, the FSC aims to also provide guidelines for non-profit organizations and crypto exchanges in April. The move is part of a broader strategy to enhance the regulatory framework for crypto, which includes a focus on stablecoins. As of November 2024, approximately 15.6 million people, or 30% of South Korea's population, engaged in crypto trading, indicating a robust retail market. FSC Vice Chairman Kim So-young emphasized the need for best practices in institutional investment and urged banks and exchanges to enhance anti-money laundering and cybersecurity measures. This initiative follows a period of increased global discussions on crypto, influenced by previous U.S. policy under Donald Trump.
Russia's Central Bank Proposes Crypto Purchases for Qualified Investors Under New Experimental Regime
The Bank of Russia is proposing a new experimental legal regime (EPR) to allow crypto purchases for a select group of qualified investors. This framework aims to address investment opportunities while enhancing market transparency and mitigating risks associated with cryptocurrencies. Eligible investors must meet specific criteria, including individuals with over 100 million rubles in assets or an annual income surpassing 50 million rubles, as well as corporate institutions and financial organizations. The EPR, set for three years, will serve as a trial environment for crypto regulation, establishing standards and monitoring risks. Qualified investors can access cash-settled derivatives and financial assets tied to crypto values without direct ownership. Despite these developments, the central bank continues to prohibit the use of crypto as a legal payment method domestically, although cryptocurrencies can be utilized for international trade to bypass Western sanctions.
Turkey Implements Comprehensive Crypto Regulations, Establishes Oversight for Exchanges and Custodians
On March 13, 2025, Turkey's Capital Markets Board (CMB) unveiled comprehensive regulations for crypto asset service providers (CASPs) including exchanges and custodians, granting full regulatory oversight. The framework mandates a minimum capital requirement of $4.1 million for exchanges and $13.7 million for custodians, excluding fixed assets and receivables. CASPs must establish compliance infrastructures, risk management teams, and price monitoring systems to detect suspicious activities. Reporting requirements are stringent, focusing on transaction data, including canceled transactions, as part of enhanced Anti-Money Laundering (AML) measures. Derivative transactions are banned, but exchanges can conduct initial coin offerings. Notably, the use of crypto for purchasing goods and services remains prohibited. The regulations, inspired by global standards like the EU's MiCA, will largely take effect by June 30, 2025, aligning Turkey’s crypto framework with international practices to bolster regulatory compliance and security.
Argentina Implements New Regulations for Virtual Asset Service Providers
Argentina has finalized regulations for virtual asset service providers (VASPs) through General Resolution No. 1058, published on March 13, 2025, by the National Securities Commission (CNV). The new rules establish mandatory registration, cybersecurity protocols, asset custody requirements, and measures against money laundering, aiming to ensure transparency, stability, and user protection in the crypto ecosystem. Registered VASPs must separate company and client funds, conduct annual audits, and report monthly to the CNV. Compliance deadlines are set with individuals required to conform by July 1, 2025, Argentine companies by August 1, and foreign firms by September 1. Noncompliance may lead to registration revocation or court-ordered blocking. Despite recent challenges, crypto adoption in Argentina remains robust, with a Chainalysis report noting the country surpassed Brazil in crypto inflows, receiving approximately $91 billion between July 2023 and June 2024, largely driven by the depreciation of the Argentine peso.
This article has been refined and enhanced by ChatGPT.
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