Weekly Digital Assets Regulatory Brief: Week 09-2026

Facts: The EU's proposed 20th sanctions package against Russia includes a crypto-focused ban that would prohibit all crypto transactionsA transfer of value or data recorded on a blockchain, verified by network participants, and permanently added to the distributed ledger involving Russian counterparties - not just listed entities, but any Russia-based counterparty. The package would also introduce a total ban on dealings involving Russia's CBDCDigital form of a nation's fiat currency issued and guaranteed by the central bank (digital ruble) within EU jurisdiction. This builds on the 19th sanctions package, which already targeted specific Russia-linked stablecoins including A7A5. The package includes the first use of the EU Anti-Circumvention Tool, targeting Kyrgyzstan as a Russian evasion hub. The draft has not yet been adopted by the Council.

Facts: The Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2025 have been laid before Parliament, bringing a wide set of cryptoasset activities into the Regulated Activities Order perimeter. Regulated activities will include issuance of qualifying stablecoins, operating qualifying cryptoasset trading platforms, safeguarding qualifying cryptoassets, and certain offers and admissions to trading. The FCA simultaneously published two consultation papers: CP25/40 on regulating cryptoasset activities and CP25/41 on admissions, disclosures, and market abuseArtificial interference with price or volume to mislead market participants for cryptoassets. The application gateway opens September 2026, with the new regime starting October 2027.

Facts: The OCC granted conditional approval to charter Foris Dax National Trust Bank, d.b.a. Crypto.com National Trust Bank, as a limited-purpose national trust bank. The conditional nature means Crypto.com must satisfy pre-opening conditions around capital, governance, risk management, internal controls, and compliance before commencing operations. A national trust charter reduces the need for multiple state money-transmitter and trust company licenses but does not confer FDIC deposit insurance or full commercial banking powers. The charter places Crypto.com under OCC safety and soundness, BSAU.S. anti-money laundering law applied to crypto businesses by FinCEN/AMLRegulatory framework requiring financial institutions to detect and prevent money laundering, terrorist financing, and other illicit financial activities, OFAC/sanctions, governance, and operational risk expectations.

Facts: The SECU.S. federal agency regulating securities markets and protecting investors Division of Trading and Markets updated its crypto FAQs to treat proprietary positions in qualifying "payment stablecoins" as having a ready market under Rule 15c3-1 (Net Capital Rule), applying a 2% capital haircut instead of the previous 100% deduction. Commissioner Hester Peirce published a statement titled "Cutting by Two Would Do" summarizing the rationale. The guidance also addresses Rule 15c3-3 (Customer Protection Rule) treatment of stablecoins. Peirce has invited comment on formally amending Rule 15c3-1 to explicitly address payment stablecoins.

Facts: The White House Crypto Policy Council has been convening banks and crypto firms around a March 1 target date to resolve the stablecoinA cryptocurrency pegged to a stable asset, such as USD or gold yield dispute blocking the CLARITY ActUS legislation defining the market structure and jurisdictional oversight for trading payment stablecoins's progress. The GENIUS ActUS law (July 2025) requiring payment stablecoin issuers to be regulated entities with 1:1 reserve backing contains an issuer-level yield ban (stablecoin issuers cannot pay interest on stablecoin balances), but the intermediary-level ban remains politically active - banks are pushing for deposit-like treatment that would restrict crypto platforms from offering yield on idle stablecoin balances. The CLARITY Act, which passed the House in July 2025, explicitly excludes stablecoins from its "digital commodity" definition but remains stalled over these unresolved provisions.

Facts: The SFC updated its list of licensed virtual assetFATF term for digital value representation tradable or transferable electronically trading platforms to add Victory Fintech Company Limited (brand: VDX) as the 12th fully licensed VATP, effective February 13 - the first new license since June 2025. Separately, the SFC issued its ASPIRe roadmap package on February 14, including: a circular on licensed corporations providing VA dealing services with financing capabilities; a high-level framework for virtual asset perpetual contracts offered to professional investors only; and a circular permitting affiliates of licensed VATPs to act as market makers, subject to conflict-of-interest safeguards. The SFC also set out a framework for VA brokers using omnibus accounts with SFC-licensed platforms to offer financing for VA dealing.

Facts: The FATFGlobal standard-setter for combating money laundering and terrorist financing February 2026 plenary (Mexico City, 11-13 February) added Kuwait and Papua New Guinea to the "jurisdictions under increased monitoring" (grey list); no jurisdictions were removed. FATF confirmed it will publish two additional reports: one addressing offshore VASPs and the second covering stablecoins paired with unhosted wallets. FATF reiterated its call for action on Iran and maintained other high-risk country designations. The plenary is also shifting toward effectiveness metrics - regulators will be judged on demonstrable enforcement outcomes, not just paper compliance with Recommendation 15 and the Travel RuleRequirement to share sender and recipient information for crypto transactions above a threshold.

Facts: AMLA published a consultation paper on draft regulatory technical standards under Article 53(10) of Directive (EU) 2024/1640 (AMLD6). The RTS establishes a methodology for periodic penalty payments and pecuniary sanctions, with criteria including repetition of breaches, cooperation with authorities, remediation speed, and whether policies and procedures were "manifestly inadequate." The framework explicitly structures how sanctions should increase for serious, repeated, or wilful breaches, and decrease where there is strong cooperation. It provides for business restrictions, authorization withdrawal, or suspension for very serious category-3/4 breaches. National competent authorities including BaFin, CySEC, FMA, and the Bank of Lithuania will apply these RTS once finalized.

Facts: The Basel Committee's cryptoasset prudential standard (SCO60), which formally took effect January 1, 2026, is now in the national implementation phase. The standard divides cryptoassets into Group 1 (tokenized traditional assets and qualifying stablecoins, eligible for preferential treatment) and Group 2 (unbacked crypto, facing a 1,250% risk weight - effectively requiring dollar-for-dollar capital). Targeted amendments have tightened the criteria for stablecoins to qualify for Group 1b preferential treatment. The standard includes exposure limits for Group 2 and a final disclosure framework for banks. US implementation is being shaped through the OCC GENIUS NPRM and Fed Vice Chair Bowman's testimony tying stablecoinA cryptocurrency pegged to a stable asset, such as USD or gold capital rules to Basel. Industry is pushing to revisit the permissioned/permissionless distinction and stablecoin treatment criteria.

Facts: NASAA published a letter urging Congress to protect investor protection and state regulatory authority in the CLARITY ActUS legislation defining the market structure and jurisdictional oversight for trading payment stablecoins and DCIA. NASAA raised concern about overbroad "exemptive authority" that would allow federal agencies to reshape digital asset regulation via exemptions without robust public rulemaking. The letter signals that even with a CLARITY-style framework, firms should plan for dual obligations: SECU.S. federal agency regulating securities markets and protecting investors/CFTCU.S. federal agency regulating derivatives markets including crypto commodity futures registration and ongoing state blue-sky, broker-dealer, agent, and investment adviser licensing exposure.

Facts: CySEC reminded Cyprus-authorized Crypto-Asset Service Providers that they must submit a MiCAThe EU's comprehensive regulatory framework for crypto-assets, establishing harmonized rules for issuers and service providers across all 27 Member States authorization application by February 27, 2026 to continue operating under transitional arrangements. CASPsEntity providing crypto services under EU MiCA requiring authorization and regulatory compliance can continue under the national regime until approved, rejected, or July 1, 2026 - whichever comes first.

Facts: The FCA fined seven social media influencers for issuing unauthorised financial promotions. This is the first major enforcement action under the FCA's crypto financial promotions regime, which brought cryptoasset promotion within the FCA's regulatory perimeter. The action demonstrates the FCA will actively police social media marketing of crypto products.

Facts: Hong Kong's SFC signed a Memorandum of Understanding with Kenya's Capital Markets Authority for cross-border regulatory cooperation on digital assets. The MoU applies to cross-border regulated entities - groups where an SFC-licensed VAFATF term for digital value representation tradable or transferable electronically firm has a related entity regulated by the CMA. It covers event-triggered notifications for major incidents, sanctions events, and cyber events, as well as coordinated thematic reviews on governance, AMLRegulatory framework requiring financial institutions to detect and prevent money laundering, terrorist financing, and other illicit financial activities/CFT, and technology risk.

Facts: Pakistan's Senate committee approved the Virtual AssetsFATF term for digital value representation tradable or transferable electronically Bill 2025, establishing the Pakistan Virtual Asset Regulatory Authority (PVARA) as an autonomous federal regulator. PVARA is empowered to license, regulate, and supervise all entities dealing in virtual assets. Any person or company offering virtual-asset services in or from Pakistan will require a PVARA license, with requirements around incorporation, operational capacity, compliance frameworks, and reporting. Unlicensed operators risk criminal and administrative sanctions. PVARA has simultaneously launched a regulatory sandbox for virtual assets.

Facts: The Central Bank of Brazil published Resolutions 517, 519, 520, and 521 establishing a comprehensive regulatory framework for virtual assetFATF term for digital value representation tradable or transferable electronically services, with transition periods for existing institutions. The framework includes crypto within the foreign exchangeA platform where users can buy, sell, or trade cryptocurrencies regulatory perimeter, affecting inbound and outbound flows. Brazil recorded approximately $42.8 billion in crypto transactionA transfer of value or data recorded on a blockchain, verified by network participants, and permanently added to the distributed ledger volume in H1 2025, up 20% year-over-year. Central bank officials have stated that approximately 90% of Brazil's crypto activity now involves stablecoins - primarily dollar-pegged tokens used for payments and cross-border transfers.

Facts: Bank Indonesia issued Regulation No. 10 of 2025 and an implementing regulation on the Payment System Industry, effective March 31, 2026. The regulations consolidate licensing and oversight of payment providers, capturing crypto-adjacent and tokenized payment schemes within the payment system perimeter.

Facts: Sri Lanka announced a forthcoming virtual assetsFATF term for digital value representation tradable or transferable electronically regulatory framework that will include travel-rule-type provisions for cross-border VASPs. The framework signals a licensing or registration requirement for any exchangeA platform where users can buy, sell, or trade cryptocurrencies, broker, custodian, or stablecoinA cryptocurrency pegged to a stable asset, such as USD or gold-related business with Sri Lankan clients, along with FATFGlobal standard-setter for combating money laundering and terrorist financing-style AMLRegulatory framework requiring financial institutions to detect and prevent money laundering, terrorist financing, and other illicit financial activities/CFT controls.

Facts: SARS (South African Revenue Service) published the Final External Business Requirements Specification (BRS) v1.5 for the Crypto-Asset Reporting Framework (CARF). Reporting Crypto Asset Service Providers (RCASPs) must carry out CARF-specific due diligenceProcess of verifying customer identity and assessing risk beyond general AMLRegulatory framework requiring financial institutions to detect and prevent money laundering, terrorist financing, and other illicit financial activities/KYCA process where exchanges and financial institutions verify user identity, and align data models with both CARF_SARS (local) and CARF_OECD (global standard) schemas.