How global cryptoasset regulations are progressing, and what to expect in 2025

This year is poised to be a consequential year for cryptoassets globally. As the maturity of this relatively new asset class continues to gain momentum, with increasing institutional adoption and expanding use cases across various sectors, the cryptoassets market is poised for growth, and mainstream adoption.

This CoinSwitch Public Policy blog captures a range of key events expected in 2025, as well as reports to be put out by various standard-setting bodies/watchdogs, aimed at regulating different aspects of cryptoassets. It also highlights India’s efforts in understanding and regulating digital assets. A Public Policy Tracker for this year is also available at the end of this blog.

Global Policy Scan

The fast-paced developments following President Donald Trump’s victory in the 2024 US Presidential election has sent several policymakers across the global back to their drawing boards to reshape the policy outlook for digital assets.

Soon after taking the Presidential oath, President Trump on January 23 ordered the creation of a cryptoasset working group tasked with proposing new digital asset regulations and exploring the creation of a national digital asset stockpile, making good on his promise to quickly overhaul US digital asset policy. The order also banned the creation of a US Central Bank Digital Currency (CBDC), which could compete with existing cryptoassets. The US Securities and Exchange Commission (SEC) has announced a new crypto task force, led by Commissioner Hester Peirce, dedicated to developing clear regulatory frameworks, marking a shift away from its previous enforcement-focused approach to digital assets.

Meanwhile, the US isn’t the only jurisdiction poised to make regulatory progress.

The European Union’s Markets in Crypto-Assets (MiCA) regulation went into full effect on 30 December 2024, making the EU the first major jurisdiction to establish a comprehensive regulatory framework for crypto.

Several G20 countries and financial hubs including the United Kingdom (UK), United Arab Emirates (UAE), Singapore and Hong Kong are also actively writing rulesor fine-tuning the existing regulations creating a more conducive environment for acceptance and growth of digital assets.

For instance:

• Hong Kong’s top financial regulator has released a new roadmapto further develop its cryptoasset industry with proper regulation as the region continues its drive to become a global virtual asset hub. The Securities and Futures Commission (SFC) has outlined 12 major initiatives to enhance the security, innovation and growth of Hong Kong’s virtual asset market under a five- pillar “ASPIRe” roadmap, which stands for Access, Safeguards, Products, Infrastructure and Relationships.
• Indonesia’s securities regulator, which recently began to oversee the cryptoasset market, has unveiled new rules for digital assets to be approved for listing on exchanges
• South Korea is moving towards institutional cryptoasset adoption with a newly unveiled roadmap from the Financial Services Commission/Korea Financial Intelligence Unit (FSC and KFIU respectively). The plan will unfold in two phases starting in 2025, beginning with corporate cryptoasset transactions for liquidation purposes, followed by a pilot program allowing select institutions to trade cryptoasset under strict regulatory conditions.
• According to local media reports, the Financial Services Agency, Japan (JFSA) is considering classifying certain cryptoassets as financial securities, a move that could pave the way for the approval of spot cryptoasset ETFs in Japan

Financial Stability Board (FSB)

At the behest of G20, the Financial Stability Board (FSB) is conducting a thematic peer review on the implementation of its global regulatory framework for crypto-asset activities. The objective of the review is to examine progress made by FSB member and select non-member jurisdictions in implementing the FSB’s global regulatory framework, including any lessons learnt.

The FSB has distributed a questionnaire to relevant jurisdictions to collect information and is, separately, conducting a stakeholder consultation until March 28. The FSB expects to publish the peer review report in October 2025, ahead of the G20 Finance Ministers and Central Bank Governors Meeting (October 15-16). As with any peer review, the report will not set new policies but could recommend actions for consideration by member jurisdictions and international bodies to address common challenges.

Financial Action Task Force (FATF)

The meeting of the Financial Action Task Force (FATF) Plenary, the decision-making body, concluded in Paris on February 21. Delegates from over 200 jurisdictions, including India, attended the three-day event. The global money laundering and terrorist financing watchdog, will be holding public consultations on three key topics this year.

• Plenary agreed changes to the FATF Standards to better support a risk-based approach and financial inclusion, recognising that around 1.4 billion people around the world still do not have a bank account. Recommendation 1 aims to ensure countries apply a risk-based approach to their anti-money laundering and counter-terrorist financing and proliferation financing measures. The changes will encourage financial institutions applying simplified measures where risks are lower, and thus facilitating people’s access to financial services. There will be public consultation on the new guidance soon.
• FATF also agreed to consult on potential revisions to its Recommendation 16 on payment transparency which would improve standardisation and quality of originator and beneficiary information in payment messages. This should help achieve greater transparency and security, avoid duplication and foster more effective compliance processes by financial institutions, while also supporting faster, cheaper payments. The FATF seeks the broadest range of views as it aims to support the use of new technologies without compromising defences against illicit finance. Separately, a targeted update on implementation of the FATF standards on VAs and VASPs (R15) is also likely.
• FATF will seek information on best practices and challenges on identifying, assessing, understanding and mitigating Proliferation Financing risk. The public consultation will also seek views on how the FATF can support the private sector to meet their Complex Proliferation Financing obligations.

Private Sector Collaborative Forum

The FATF’s annual Private Sector Collaborative Forum will take place in Mumbai from March 25-27, 2025, and will bring together representatives from the financial sector, non-financial businesses and professions, civil society, academia, FATF members and other stakeholders.

International Organization of Securities Commissions (IOSCO)

IOSCO, global standard setter for securities regulation, finalised its Policy Recommendations for Crypto and Digital Asset (CDA) Markets in November 2023. This was followed by the publication of its Policy Recommendations for Decentralized Finance (DeFi) in December 2023.

As part of Phase 1 of IOSCO’s Implementation Roadmap, a full stocktake survey of the current state of implementation across the IOSCO membership is currently being undertaken. This work is led by the Implementation Working Group of IOSCO’s Board-level Fintech Task Force. This year, the Task Force will support the IOSCO Assessment Committee in conducting a pilot assessment of the implementation of the CDA recommendations in member jurisdictions. The IOSCO Assessment Committee will be undertaking a full assessment in 2026. The two-year work plan will also be released this year outlining its priority areas of focus.

India’s Virtual Digital Assets (VDAs) Regulatory Discussion Paper

India’s long-awaited VDA policy/regulatory discussion paper, initially expected in September 2024, remains under review as the government re-evaluates its position on digital assets, possibly following the recent changes in the US stance on digital assets. According to Reuters, Department of Economic Affairs Secretary Shri Ajay Seth explained in an interview that the government is revising the discussion paper because “multiple jurisdictions have changed their stance toward cryptocurrency in terms of usage, acceptance, and the importance of cryptoassets.”

The DEA Secretary emphasized that since these assets “don’t believe in borders,” India’s approach cannot be unilateral. In another media interview, the secretary said the discussion paper will be ready in the next “couple of months.”

New Income Tax Bill Introduced in Parliament

Finance Minister Nirmala Sitharaman introduced the new Income Tax Bill, 2025 in the Lok Sabha on February 13. The Bill marks a significant step toward simplifying the language and structure of the Income Tax Act, 1961. The new Bill which has been sent to 31-member Select Committee of Lok Sabha for examination, incorporates key changes related to Virtual Digital Assets (VDAs) proposed in the Finance Bill, 2025 on February 1.

The definition of VDA has been expanded to include “crypto-asset” for the first time. The Bill proposes a new obligation to furnish information on transactions of crypto-asset, the details of which have been published in a blog here. There are no further changes proposed on the VDA taxation which was introduced in 2022. The Budget Session of Parliament will reconvene after a recess on March 10.

At CoinSwitch we will not only be closely studying the outcome of these events, but also actively contributing to some of these policy papers and also attending select events. As India’s largest cryptoasset platform, CoinSwitch remains deeply committed to advancing policy frameworks to support a clear and innovation-friendly regulatory environment for VDAs.

Public Policy Tracker 2025

Tentative list; subject to change
* Exact timelines could not be confirmed.