Crypto regulations shifted to stricter enforcement in 2025 Hristina Vasileva | usagoldmines.com

Crypto regulations are entering a more mature phase of the market, with mandatory enforcement instead of exploration or a grace period. The Skynet State of the Digital Asset Regulations Report detailed regions with more stringent rules and enforcement. 

Crypto activities in leading regions like the USA, the EU, Hong Kong, Singapore, the UAE, Japan, Turkey, and Brazil are now happening under a strict regulatory regime. Crypto activities are now more aligned with traditional financial regulations. 

‘Stablecoin regulation has converged with unusual speed. Across every major jurisdiction, regulators have arrived at a structurally similar framework: full fiat reserve backing, prohibition of algorithmic stabilization mechanisms, independent attestation of reserves, and licensing of issuers,’ stated the latest Skynet State of the Digital Asset Regulations Report. 

While previous regulatory pressure was mostly concerned with unregistered securities, this time, regulations focus on money laundering. AML and KYC rules are being applied to crypto, where they were previously reserved for banking and traditional finance. 

Each region has built and enforced frameworks for multiple crypto participants, especially exchanges, custodians, and stablecoin issuers.

Crypto regulations focus on payments

For the whole of 2025, the US Securities and Exchange Commission did not go after new token-based projects, abandoning its previous focus on applying securities law to crypto. The US GENIUS Act laid the basis for a new crypto regulation, now awaiting the Clarity Act to be voted into law to further regulate stablecoins. 

According to Skynet’s research, in H1 2025, over $90M were paid in AML fines and settlements.

Penalties from the SEC fell by 97% year-on-year, revealing the deep shift in crypto enforcement. The increased AML vigilance arrives after a 400% increase in sanctions evasion through crypto usage for 2025. 

Blockchain estimates state-driven sanctions evasion increased transaction volume by 694% in the past year, especially driven by Russia-linked networks and stablecoin infrastructure. The trend invited additional vigilance in screening stablecoins. 

The other major shift is the focus on smart contracts, which are now facing scrutiny and standards usually applied to financial market infrastructure. Independent smart contract audits are enforced in Hong Kong, the UAE, the EU, and in the USA at the state level. After a period of inherent risk, crypto activity now requires prudential standards similar to traditional finance. 

For crypto companies and projects planning a global presence, this means each new jurisdiction comes with its own set of compliance requirements for each new location. The former borderless era of payments is coming to an end, even for end users with self-custodied wallets. 

Crypto derivative trading switches to regulated regions

The shift to tighter regulations in 2025 was also reflected in trader behaviors. In the past week, IBIT derivative activity for BTC showed traders were flocking to a fully regulated market. For the first time, open interest on IBIT surpassed the derivative activity on Deribit.

Deribit, as an offshore platform, held the monopoly on BTC options trading. The platform reached $26.9B in open interest, with $27.6B for IBIT. 

Traders moved to BlackRock’s regulated trading venue on Nasdaq, showing that regulated markets held significant appeal. 

The current US framework places the Commodities Futures Trading Commission (CFTC) as the authority on derivatives. US crypto trading remains under a multi-agency regime, with wider authority coming through the Clarity Act, now awaiting Senate action. 

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This articles is written by : Nermeen Nabil Khear Abdelmalak

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