What shaped crypto policy in 2024?
The key trends and predictions of worldwide cryptocurrency regulatory developments in 2024 and beyond.
2024 proved to be a significant year in the realm of cryptocurrency policy. For much of the year, two opposing forces were at work:
- Advancing regulatory actions, greater acceptance from large organizations, and continued innovation.
- Challenges from elections, the global political landscape, and regulatory bodies facing resource limitations.
The final months of the year saw the United States elections take center stage alongside Bitcoin reaching new price records.
Our annual study, the Global Crypto Policy Review & Outlook 2024/25, examines crypto policy changes across 24 regions. Together, these areas represent about 70% of the world’s crypto activity. The study highlights major regulatory changes, enforcement actions, and new ideas in each area.
This year, for the first time, we’ve included insights from
TRM’s Crypto Adoption and Illicit Exposure Report
.
This report attempts to measure how widely cryptocurrency is used in different places, while also looking at local economic conditions. We found that high crypto adoption doesn’t always mean that regulations are mature. Crypto hubs like Singapore, Hong Kong, the UAE, and Switzerland actually show lower rates of domestic crypto use. This might be because they have a global digital asset focus, and already advanced digital payment systems.
So, what large-scale themes influenced crypto policy around the world in 2024?
Adoption on the Rise
Putting Regulatory Plans into Action
While 2023 was about creating frameworks, 2024 focused on putting them in place. Throughout Europe, the Middle East, and Asia, important regulatory structures became effective this year.
Of the 24 regions we studied – representing about 70% of global crypto activity – around 70% made progress in setting up regulations. At the same time, policy development continued, with over 60% of these areas introducing new guidelines or positions for digital assets.
ETFs and large organizations joining in
The approval of Bitcoin ETFs in January, plus the market’s response to the U.S. election, may have been the biggest market events of 2024. With ETFs gaining approval and the increasing trend of tokenization, 2024 was a year when large organizations put more resources into crypto assets.
Ongoing Advancements
During 2024, we also saw an increase in experimental projects, regulatory sandboxes, and requests for details on digital asset topics. Along with a growing acceptance of Supervisory Technology (SupTech), regulators around the world looked to technology for help with their problems. Of the 24 regions we examined, just under half took steps to support digital asset advancement.
Facing Changes
Elections Taking Place
In 2024, elections took place in 50 countries, involving two billion people. The degree to which cryptocurrency issues swayed voters varied. Of the 24 areas we reviewed, almost 60% held elections this year.
Although early predictions suggested digital assets would have a significant influence, crypto generally remained a secondary concern. Specifically, elections in the UK, France, India, and South Africa gave limited attention to crypto, with few mentions during campaigns. Even after elections, new governments in these countries have done little to actively support or regulate cryptocurrency. Broader economic and social issues remained the primary political focus.
The U.S. election was an exception. Though crypto was a secondary issue, the results suggest changes in crypto laws, policy, and enforcement in 2025 and later.
World Political Situation
The year 2024 was increasingly tense politically, with conflicts growing in the Middle East, Africa, and Europe. Sanctions were used to restrict malicious actors, who increasingly turned to crypto assets to avoid these sanctions. By November 2024, 82 crypto addresses were under U.S. sanctions, compared to 60 in 2023.
Furthermore, unlike 2023, which saw a decrease in crypto hacks and ransomware, 2024 saw an increase in attacks. By early November, the number of hacks in 2024 was almost 25% higher than in the same period of 2023.
Regulatory Abilities
Regulators around the world began to feel stretched as artificial intelligence, digital assets, and tokenization competed for limited resources. They also had to handle the cost of living crisis, remain competitive, and support the green transition. The growing issue of fraud and consumer protection also weighed heavily on regulators, who sought to use different regulatory and technological tools to solve these problems.
Overall, 2024 was a year of significant change in crypto policy and financial regulations worldwide. Almost every region is currently discussing what their future digital financial system will look like.
As different regions take their own approaches, let’s navigate the shifting landscape of global crypto policy and regulations — and look forward to what 2025 may bring.
Disclaimer: This is not financial or legal advice.
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2024 Highlights
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Regional Developments
Americas
Argentina
Argentina’s cryptocurrency regulatory strategy evolved significantly in 2024. The country prioritized stricter oversight and economic integration due to high inflation and rising public interest in digital currencies.
In March 2024, the CNV mandated that all Virtual Asset Service Providers (VASPs) register to comply with Financial Action Task Force (FATF)’s anti-money laundering standards. This action addresses money laundering concerns and aims to align with international standards, while acknowledging crypto’s ability to help Argentina’s economic problems.
President Javier Milei’s administration also introduced a tax amnesty on crypto holdings declared before March 31, 2025, to encourage individuals to declare their crypto assets without immediate tax consequences. Some in the crypto community argued taxing crypto contradicted President Milei’s pro-crypto stance. Still, Milei continues to encourage crypto adoption, highlighting cryptocurrencies as a means of exchange autonomous from the state, but “still trustworthy.”
Amidst mixed policies, Argentina continues to show a strong trend of crypto adoption. This highlights crypto’s popularity for practical uses, like protecting against inflation and enabling financial independence.
Brazil
Brazil planned to enforce registration requirements for VASPs this year, following a virtual asset law in December 2022 and the designation of BCB as the competent regulator for VASPs in June 2023.
However, implementing the registration process, initially planned for June 2024 by BCB, has been delayed. The Bank started an initial consultation in December 2023 to create thorough rules for digital assets and VASP activities. But in mid-2024, it announced it would delay the rollout of new laws for further consultation.
While details on the broader regulatory framework are still awaited, in December 2024, the Bank released a consultation on foreign exchange and rules for VASPs’ foreign exchange activities. These include restrictions and reporting requirements on cross-border crypto transactions and non-resident trading activity, and perhaps most notably, a ban on stablecoin transfers to unhosted wallets. BCB Governor Roberto Campos Neto has also said the Bank plans to regulate stablecoins and asset tokenization in 2025.
Brazil, like many other regions, is exploring central bank digital currency (CBDC) integration through its Digital Real (Drex) pilot, with a wider rollout expected soon. Pix, Brazil’s instant payment system, gained rapid adoption following its November 2020 introduction, and is now used by 99% of the adult population in Brazil. A similar trajectory might be expected for Drex, given Brazil’s high digital and crypto adoption rates.
More Drex action in 2025, and details of the regulatory frameworks, are expected.
Canada
2024 was a calm year for crypto regulation in Canada, which already has a relatively established system. Still, Canada saw its first international exchange registration this year, with Coinbase successfully registering as a Restricted Dealer with the CSA in April.
CSA also extended its deadline for crypto asset trading platforms (CTPs) to stop offering stablecoins that don’t meet CSA-specified conditions. These conditions include being pegged to the U.S. dollar or Canadian dollar, redeemable for the underlying fiat currency at par value within a reasonable period, fully backed by liquid assets held with a qualified custodian for the benefit of the stablecoin holder, with adequate public disclosures on governance, operations and reserve assets.
The CSA acknowledged stablecoins “may have certain uses” for Canadian crypto customers. However, it put these conditions in place with “certain standards to help ensure that investors receive the information they need about the assets they are purchasing, including the risks associated with them.”
Citing technical issues highlighted by CTPs, the CSA has extended the compliance deadline of April 30, 2024 to December 31, 2024. It has also invited submissions on an appropriate long-term regulatory framework for stablecoins; watch for developments here in 2025.
Mexico
In 2024, Mexico took the FATF helm, with Eliza de Anda Madrazo, Director-General at the Mexican Ministry of Finance and Public Credit, succeeding Singapore’s T. Raja Kumar in July. The Mexican presidency has pledged to support “low-capacity” jurisdictions in implementing regulation for VASPs, emphasizing financial inclusion. Mexico itself is currently rated “largely compliant” on FATF Recommendation 15 regarding virtual assets, with Travel Rule implementation being the key outstanding item. Mexico is currently in the process of implementing the Travel Rule; look for progress on this in 2025.
In June, Mexico elected its first female president, Claudia Sheinbaum, from the ruling Morena party. Morena has not articulated any policy stance on crypto, although it did introduce a 20% capital gains tax on crypto, on top of a 16% VAT and up to 35% in income tax. Sheinbaum is expected to maintain party positions, although it remains to be seen if Mexico’s stance on crypto will be influenced by the outcome of the U.S. elections.
United States (U.S.)
In 2024, the U.S. government worked across agencies, Congress, and the judiciary to regulate and enforce digital asset compliance. But the biggest event was the November 2024 election that saw a decisive victory for Donald Trump and Republican lawmakers up and down the ballot.
Elections
The 2024 U.S. election results could significantly reshape cryptocurrency regulation in America. With Trump’s victory and Republican control of both the House and Senate, there may be faster progress on crypto-related legislation.
A Republican-led government will likely prioritize economic growth and innovation, seeing digital assets as a strategic opportunity to boost U.S. competitiveness. We may see policies that focus on clear regulatory frameworks for crypto rather than the restrictive enforcement of the past few years.
With a Republican majority in Congress, key crypto-related bills — especially those on stablecoins and market structure — are expected to gain momentum. Stablecoin regulations have gained bipartisan interest, as lawmakers seek to set standards for reserve-backed digital assets to ensure safer, more transparent markets.
Market structure reforms could also become a legislative priority. These reforms would help clarify the roles and responsibilities of regulatory agencies like the SEC and CFTC, creating guidelines for crypto companies to comply and innovate. This would streamline regulatory processes and provide businesses with the confidence to invest in long-term growth and innovation within the U.S. market. While stablecoin and market structure bills have been voted out of committee, a Republican-controlled Congress could push them toward passage.
The new administration is expected to adopt a more lenient approach to enforcement, which could be a game-changer for crypto businesses in the U.S. Reduced enforcement actions would signal a friendlier regulatory environment, encouraging companies to expand and innovate domestically without fear of punitive measures.
This shift could attract more capital and talent to the U.S., countering competitive regulatory environments in Europe and Asia, which have recently drawn in crypto companies. Trump’s win and a supportive Republican Congress may foster a favorable climate for the U.S. crypto industry, where legislative clarity and a pro-business approach could spur growth, cementing America’s leadership in blockchain innovation on the global stage.
Prior to the election, there was increased activity in the regulatory, legislative, and judicial branches.
Executive branch
In the executive branch, agencies like the Department of Justice (DOJ), Financial Crimes Enforcement Network (FinCEN), and Office of Foreign Assets Control (OFAC) used criminal prosecutions, sanctions, enforcement actions, and other authorities to target mixing services, ransomware groups, non-compliant exchanges, and other entities.
U.S. authorities focused on the Russian illicit finance ecosystem, with FinCEN naming PM2BTC a primary money-laundering threat under Section 311 of the USA PATRIOT Act due to its extensive ties to Russian cybercrime. OFAC also imposed sanctions on Russian-based exchanges Netex24 and Bitpapa, underscoring a focused effort to disrupt financing channels for cybercriminal groups.
U.S. regulators collected a record-breaking USD 19 billion in settlements from crypto companies, marking nearly two-thirds of the total USD 31.92 billion accumulated since 2019. Including the over USD 4 billion settlement with Binance (which occurred in November 2023), the 2024 totals are even more daunting.
This surge in settlement figures underscores a sharp uptick in regulatory enforcement. The primary contributor to 2024’s high settlement total was FTX and its affiliated trading firm, Alameda, which paid a substantial USD 12.7 billion to the CFTC in an August settlement. This figure contributed to an overall 78% increase in settlement values compared to 2023, which recorded USD 10.87 billion in payments. This year’s figures reflect an astounding 8,327% rise from 2022, highlighting a recent regulatory clampdown on crypto-related activities.
Along with FTX, other high-profile cases included Terraform Labs, which settled with the SEC for USD 4.47 billion over its algorithmic stablecoin TerraUSD (UST) collapse in 2022, and Genesis, which paid USD 2 billion in a settlement with the Office of the Attorney General after its bankruptcy filing in January 2023.
While enforcement actions were the focus, the SEC approved the first Bitcoin ETFs on January 10, 2024, setting forth a flurry of institutional activity.
Legislative branch
The legislative branch pushed forward new digital asset laws to clarify regulatory standards and protect consumers. The Stablecoin Trust Act, projected to pass in 2025, would introduce federal licensing for stablecoin issuers, with strict requirements for reserve transparency, segregated reserves, and audits overseen by the Federal Reserve and Office of the Comptroller of the Currency (OCC).
The Financial Innovation and Technology for the 21st Century (FIT) Act progressed through committee, proposing a dual-regulatory framework to address digital asset classifications as either securities or commodities. This framework would designate oversight to the SEC for securities-like tokens and to the CFTC for commodities — aiming to enhance clarity and support market stability while fostering innovation in the crypto sector.
Judicial branch
In the judicial branch, federal courts played a pivotal role — particularly through the Ripple case, which provided a nuanced interpretation of securities laws as applied to digital assets. Judge Analisa Torres’ ruling divided Ripple’s XRP sales into programmatic sales (on exchanges) and institutional sales (with direct contracts), determining that only the latter met the criteria of an “investment contract” under the Howey Test.
This decision suggests that certain digital asset transactions may not inherently qualify as securities, depending on transaction structure and investor expectations. However, this ruling is case-specific and is already facing an appeal from the SEC, leaving room for further judicial scrutiny.
Looking ahead to 2025, key policy questions will center on the new administration and Republican-led Congress. Will this be the year the U.S. finally designates a primary regulator and passes a comprehensive market structure bill? Could stablecoin legislation reach the President’s desk? Critically, will the SEC and other executive agencies maintain their aggressive enforcement stance, or shift toward a more collaborative approach in regulating this emerging sector? While the answers remain uncertain, 2025 promises to be a pivotal, unpredictable year for crypto policy in the U.S.
Europe, Middle East, and Africa
Austria
Like many EU member states, Austria spent much of 2024 actively laying the groundwork for the Market in Cryptoasset Regulations (MiCA) implementation. In August, the government formally designated the FMA as the country’s national competent authority for MiCA, initiating its authorization process. The FMA issued an information document to assist Crypto Aasset Service Providers (CASPs) in developing their authorization applications. At present, there are two CASPs registered under the former regime who will have to seek reauthorization under MiCA. Austria is applying a 12-month grandfathering period until the end of 2025.
In May, Austrian authorities coordinated a major enforcement action against a crypto investment scam. The scam, which operated from December 2017 to February 2018, stole EUR 6 million from investors. This resulted in six arrests and the seizure of EUR 750,000, plus EUR 1.4 million in property and vehicles.
Austria’s crypto market also made significant strides in integrating with traditional financial services this year. In January, Raiffeisen Bank launched crypto trading for retail customers through a partnership with Bitpanda. Later in the year, the bank expanded this product to 55 banks across Austria.
Like other EU member states, Austria will spend 2025 putting MiCA into practice and refining its authorization and supervision practices.
Denmark
When is a DeFi project decentralized enough to be exempt from MiCA? This was the big question Denmark tried to answer in 2024.
In June, the Danish FSA published a paper on this topic, which attracted significant interest. The paper presented a principle-based approach to evaluating whether a project is genuinely decentralized, considering the project’s architecture and management. The DFSA paper emphasized that determining the legal status of a project currently requires a case-by-case assessment. This paper will likely be used by the EU Commission, who will produce a report on developments in the crypto asset market by the end of 2024 or early 2025.
In May, the Danish parliament passed legislation to make the necessary amendments for the introduction of MiCA and the Transfer of Funds Regulation by their respective deadlines. The government appointed the DFSA as the competent authority, granting pre-existing CASPs an 18-month grandfathering period to transition to MiCA. As with Austria, 2025 will be about MiCA requirements bedding into Denmark’s cryptoasset framework.
European Union (EU)
Two dates in 2024 defined the year for crypto assets in Europe: June 30 and December 30, when the two halves of the Market in Crypto Assets Regulation (MiCA) came into force.
The first half of MiCA introduced rules for stablecoins, while the second focused on regulations for CASPs. Almost all of the year’s policy work centered around these two dates — but the EU also prepared for the Travel Rule and the transition to the Anti-Money Laundering Authority (AMLA). This summary provides a brief overview of developments related to MiCA and the Anti-Money Laundering Package. Other noteworthy files, like the AI Act, DORA, and DAC8, have been skipped for brevity.
MiCA and stablecoins
MiCA — the EU’s flagship regulation on crypto assets — creates a new regulated asset class for crypto assets and establishes a regulatory framework tailored to their nuances. While the MiCA text has been available since 2023, 2024 focused on finalizing details through technical rules and guidance documents. The EU Commission delegated the task of creating these documents to the EBA and ESMA.
The EBA produced guidance for stablecoin issuers to meet the June 30 implementation deadline. The EBA released technical requirements covering authorizations, governance, white papers, recovery plans, and reporting requirements. The June 30 implementation was not as smooth as anticipated. Confusion arose over whether Electronic Money Token issuers needed an Electronic Money License in addition to a MiCA authorization to operate. This caused uncertainty and could necessitate an amendment to the Payment Services Regulation to clarify when transfers are payments and thus require additional licensing. Despite this, several ‘MiCA compliant” stablecoins were announced in 2024, including the first from Circle.
ESMA handled the rules related to CASPs. Two packages of rules were finalized ahead of December, with a third on market abuse, investor protection, and operational resilience finalized just weeks ahead of the December 30 deadline. The first package on authorizations was challenged by the EU Commission, which led to delays to the authorization processes in several member states. In addition to its core MiCA work, ESMA also published a paper on the categorization of smart contracts in 2024, dividing them into five distinct categories.
Illicit finance
It was a busy year in the EU on the illicit finance front.
In January, the EBA issued new guidance on AML/CFT risk factors, including details for crypto, which included requirements for self-hosted wallets and the treatment of DeFi. Significant progress was made on the Anti-Money Laundering Package (AMLP), with Frankfurt chosen as the headquarters for the new Anti-Money Laundering Authority and three candidates shortlisted to lead the organization. The Anti-Money Laundering Regulation (AMLR) entered into force on July 9 and will apply from July 10, 2027.
The implementation of the EU’s Transfer of Funds Regulation (also known as the Travel Rule) is due to be completed on December 30. Guidance for this is available here.
Sanctions
One unexpected development in 2024 was a clause within the 14th Sanctions Package against Russia’s war of aggression. While additional packages were expected, the 14th stood out because it gave the EU the ability to designate crypto asset service providers (among other entities) outside the EU if they facilitated the transfer of dual-use goods or weapons to the Russian state. Although no CASPs were listed, this is an area to watch closely in the coming year. This work was further complemented by the EBA’s new guidance on EU restrictive measures, which will assist CASPs in meeting EU sanctions obligations.
Looking to 2025, the next major event for the EU will be the EU Commission’s report on developments in the crypto asset market. This report will assess changes in the market since MiCA was first written and may suggest regulatory approaches to DeFi, NFTs, lending, and staking — ranging from additional guidance to a potential MiCA II.
Whether a MiCA II emerges will depend largely on the priorities of the new European Commissioners. Maria Luis Albuquerque will serve as the Commissioner for Financial Services and the Savings and Investments Union. Her broad portfolio includes digital finance, payments, anti-money laundering (where she will oversee the introduction of the new AML Authority), and external security, where she will ensure the effectiveness of EU sanctions. Valdis Dombrovskis is slated to take on the role of Commissioner for Economic Affairs and Productivity, which will include overseeing the next steps on the digital Euro.
France
The snap elections in June and July stood out as the biggest policy event for France’s calendar this year.
Despite overlapping with the first implementation deadline of MiCA, the snap election didn’t significantly impact France’s work on crypto assets. Ahead of the June 30 stablecoin kick-off, French authorities granted Circle an Electronic Money Institution (EMI) License, allowing Circle to announce its status as the first “MiCA compliant” stablecoin issuer in Europe.
In August, the AMF advanced its framework for MiCA readiness by announcing the opening of applications for authorization for CASPs. CASPs or DASPs (Digital Asset Services Providers), as they are known in France, that are already operational will have an 18-month grandfathering period to transition to a MiCA authorization, during which time they will not be able to passport their services into other countries.
France also contributed to the DeFi discussion. In June, the AMF published a summary of responses to its 2023 discussion paper on DeFi. Respondents generally supported the idea of developing a separate regulatory framework for DeFi to enable growth while managing risk appropriately.
On tokenization, Deputy Governor of the Banque de France, Denis Beau, gave a speech in April acknowledging the opportunities DLT holds for financial services. But he stressed that these must be balanced with financial stability and the need for central bank money.
Looking towards 2025, the big policy question will be whether Macron calls another election in June 2025. In the intervening months, it is unlikely that the current government does much on digital assets other than continue to implement MiCA.
Germany
Enforcement actions
Germany had an especially strong year for enforcement against the illicit use of cryptocurrencies. Starting in February, law enforcement in Saxony reportedly seized 50,000 BTC, worth over USD 2 billion. The seizure related to an ongoing case involving two individuals who ran a piracy site until 2013. The accused voluntarily transferred the funds to a wallet controlled by the German federal police, the BKA.
In June, German authorities announced the arrest of an individual — who had applied to be a security guard at the European Football Championship — for suspected terrorism. The individual was accused of sending USD 1,700 in cryptocurrency to an address linked to the Islamic State Khorasan Province (ISKP).
In August, Germany announced a significant sting operation targeting illicit crypto ATMs operating in the country, resulting in the seizure of 35 machines.
In September, authorities turned their eye to illegal cryptocurrency exchanges, closing 47 for facilitating the “underground economy.”
Another big win this year for Germany was Frankfurt being chosen to be the home of the EU’s new Anti-Money Laundering Authority (AMLA). From mid-2025, AMLA will set AML rules in Europe and supervise the bloc’s riskiest institutions.
The crypto market
Germany’s crypto market also enjoyed a good year. In April, Germany’s largest state-backed lender, Landesbank Baden-Württemberg (LBBW), announced a partnership with Austrian exchange Bitpanda to offer crypto custody services to customers. Later in the year, Germany’s second-largest financial institution, DZ Bank, partnered with Boerse Stuttgart Digital to provide customers with custody and trading services. Commerzbank followed suit, with a trading offering for its institutional clients.
More broadly on crypto regulation, Germany spent much of the year preparing for the implementation of MiCA and the Travel Rule. BaFin will be the country’s national competent authority, and there will be a 12-month grandfathering period.
South Africa
In 2023, South Africa introduced a regulatory framework that integrates cryptocurrency into its financial system.
As of April 2024, the Financial Sector Conduct Authority (FSCA) has licensed 138 CASPs. These regulations require platforms to meet strict anti-money laundering (AML) and counter-terrorist financing (CTF) standards, improving consumer protection and market integrity. This makes South Africa one of the first countries in Africa to mandate licenses for crypto exchanges. In April, the country’s Financial Intelligence Centre (FIC) issued a draft directive to strengthen the implementation of the Travel Rule — a key issue that must be resolved if South Africa is to be removed from FATF’s gray list in 2025.
Throughout the year, South Africa’s central bank also continued work on its CBDC project. In May, it progressed to the next phase. The project looks at the development of both a retail and a separate wholesale CBDC — to better understand whether or not these are appropriate for the country.
In 2025, South Africa will be evaluating the impact of its initial service provider licenses and how these drive legitimate activity in the jurisdiction.
Switzerland
Switzerland continues to establish itself as a prominent hub for crypto asset activity. In spring 2024, FINMA’s annual report detailed its 2023 efforts in overseeing trading, custody of payment tokens, and staking. For 2024, FINMA focused on refining the country’s regulatory landscape, particularly concerning tax policies and stablecoins.
In May, the Federal Council launched a consultation on whether Switzerland should join the Organisation for Economic Co-operation and Development’s (OECD) Crypto Asset Reporting Framework (CARF), aimed at ensuring equal treatment of crypto assets under tax reporting laws. The consultation, which closed in September, is expected to report early next year. Another consultation in August sought to determine which countries Switzerland would exchange information with regarding crypto tax data.
In July, FINMA issued guidance to mitigate risks associated with stablecoins, especially for issuers and banks providing guarantees. The guidance highlighted concerns about stablecoins using bank guarantees to bypass obtaining a banking license, as well as the money laundering risks posed by the secondary market for stablecoins.
Regarding financial crime, the Federal Office of Police released a National AML/CFT risk assessment for crypto assets in January. The report noted that since the first crypto risk assessment in 2018, there have been notable developments, such as an increase in Swiss crypto users, more financial institutions engaging in crypto activities, and rising reports of suspicious activity related to crypto misuse. The assessment called for improved data sharing, enhanced domestic and international cooperation, and stronger oversight by authorities due to the increasing money laundering and terrorist financing risks associated with virtual assets.
The regulator’s pragmatic approach led to increased participation from traditional financial institutions in 2024. For instance, in January, FINMA approved the retail tokenized securities trading platform Taurus, expanding Switzerland’s offerings to retail customers. In September, it was reported that the country’s stock exchange was exploring the launch of a platform for trading digital assets. In 2025, it is likely that Switzerland will continue to support the adoption of digital assets by financial institutions.
United Arab Emirates (UAE)
Licensing and regulation
The UAE continued to refine its regulatory approach to digital assets this year, maintaining its status as the region’s leading crypto hub.
A major theme in 2024 was the UAE’s efforts to perfect its digital assets payments landscape. In March, the country advanced its CBDC project towards the creation of a digital Dirham, launching cross-border CBDC pilots with India and a proof of concept for a domestic CBDC.
The Central Bank of the UAE (CBUAE) introduced a comprehensive licensing system for stablecoins. This system requires stablecoins to be backed by UAE Dirhams, stabilizing them and enhancing consumer protection. The CBUAE expects this framework to boost the domestic cryptocurrency market, attract international players, and facilitate the adoption of stablecoins by major financial institutions. This appeared to be working in August when Tether announced it plans to offer a Dirham-backed stablecoin in the near future.
In June, the DFSA actively amended its Crypto Token Framework. These changes apply to crypto tokens within the DIFC and address areas like funds, custody, financial crime, and token recognition. By aligning with the latest international standards set by the International Organization of Securities Commissions (IOSCO) and the Basel Committee, these updates ensure the framework keeps pace with market developments.
Lastly, in October, the UAE introduced a legal status for DAOs operating in the RAK Digital Asset Oasis, providing further clarity regarding tax obligations and governance structures.
Illicit finance
Regarding illicit finance, the UAE began witnessing the impact of the Travel Rule, which authorities implemented in late December 2023. That month, the Abu Dhabi Global Market (ADGM) issued fresh guidance to help firms navigate the Rule. The UAE’s successful implementation of the Travel Rule was vital in securing its removal from the FATF gray list in February 2024, a considerable achievement.
Innovation and sustainability
While promoting innovation, the UAE also introduced some restrictions. In May, the Abu Dhabi Agriculture and Food Safety Authority (ADAFSA) banned cryptocurrency mining on agricultural farms, citing concerns about energy consumption and its potential impact on food production. This decision highlights the delicate balance the UAE must strike between fostering innovation and maintaining sustainability.
Additionally, in September, the Virtual Assets Regulatory Authority (VARA) revised rules on financial promotions, requiring companies promoting digital asset investments to include a disclaimer warning about the extreme volatility of such investments.
1 Abu Dhabi Global Market (ADGM) under FSRA since 2018, Dubai International Financial Centre (DIFC) under DFSA since November 2022, Emirate of Dubai under VARA since February 2023, and the UAE under SCA since January 2023.
United Kingdom
The UK had a slightly mixed year on crypto. New legislation was frustrated by the election, but law enforcement had several successes disrupting the illicit use of crypto.
Regulatory framework