Global authorities adjust cryptocurrency regulations to strike a balance between fostering innovation and maintaining stability

Regulators worldwide are adjusting their approaches to cryptocurrency oversight as financial institutions and lawmakers strive to encourage innovation while managing associated risks. Recent policy shifts in Hong Kong, Switzerland, Brazil, and the European Union highlight the dynamic nature of crypto regulation. The Securities and Futures Commission (SFC) in Hong Kong has rolled out new guidelines that permit domestic crypto exchanges to tap into international liquidity pools, an effort designed to establish the

as a leading center for digital assets in the region, as outlined in the . Despite these changes, market response has been muted so far, with Chainalysis reporting that Hong Kong trails countries like India and Japan in terms of crypto uptake. The SFC’s strategy focuses on working with foreign partners for market monitoring and requires clients to give clear consent for trades that cross borders.

Elsewhere, Swiss crypto bank AMINA has obtained

. The Markets in Crypto-Assets (MiCA) regulation, which aims to standardize rules across the EU, has drawn attention from authorities such as Austria’s Financial Market Authority (FMA), which advocated for tighter controls last September. AMINA’s adherence to MiCA demonstrates the sector’s increasing sophistication, though the industry still faces hurdles as it keeps pace with technological change.

In Brazil, a proposed 30% tax on undisclosed crypto holdings has sparked political controversy.

, which has passed the National Congress, would let investors legitimize unreported assets by paying a 30% charge—split evenly between taxes and penalties—over a two-year period. This initiative comes as Brazil’s crypto market experiences rapid growth, with $1.7 trillion in transactions recorded from mid-2024 to mid-2025. While some critics warn that the tax could place an undue burden on smaller investors, supporters argue it is essential for bringing the sector into the formal economy and increasing state revenue.

On the global stage, authorities are also reassessing capital rules for banks dealing with digital assets. The Basel Committee on Banking Supervision is

, which assigned a 1,250% risk weight to cryptocurrencies not backed by assets, such as . The United States and other countries have advocated for updates, arguing that the original framework is outdated given the emergence of stablecoins. The revisions are intended to better address liquidity concerns and systemic risks, while also encouraging banks to participate in the digital asset space.

Enforcement remains active, with Australian authorities recently

in connection with a crypto-related criminal scheme, confiscating $37.9 million in digital currencies. Europol has cautioned that crypto-related crime is becoming more advanced, calling for stronger international cooperation among enforcement agencies.

The trend toward balanced regulation is clear across different regions, as seen in Hong Kong’s liquidity measures, Brazil’s tax initiatives, and the EU’s MiCA rules—all aiming to support innovation while safeguarding financial stability.