Global Crypto Adoption Top 30 Regions: 2025 Regulatory Developments and 2026 Policy Outlook (Part I)
2025 marked a pivotal inflection point for the global crypto market, as regulatory clarity and market momentum began to converge. Following a marked shift in policy tone under the Trump administration, crypto regulation entered a phase of accelerated implementation and structural maturation. Throughout the year, stablecoins moved decisively into the regulatory mainstream, becoming a central focus for policymakers worldwide. Enhanced regulatory certainty catalyzed institutional adoption, with asset tokenization gaining broad traction across jurisdictions. At the same time, the market was shaken by the largest crypto theft in history—the Bybit hack, underscoring the urgency of strengthening cross-jurisdictional cooperation and closing avenues for regulatory arbitrage.
At the turn of the year, Starlabs Consulting conducted a comprehensive review of regulatory developments across 30 jurisdictions accounting for over 70% of global crypto market activity, and formulated a forward-looking assessment of the 2026 policy landscape. This analysis aims to provide top-down insights into the future trajectory of the digital asset ecosystem.
1. India 🇮🇳
| 2025 Cryptocurrency Adoption Ranking | #1 |
| Lead Regulatory Authority | Financial Intelligence Unit – India (FIU-India) |
| Regulatory Landscape | Since March 2023, virtual digital asset service providers are required to complete AML registration. |
Since March 2023, virtual digital asset service providers (VASPs) have been required to register for AML compliance. In 2025, FIU-India significantly strengthened enforcement of this regime, issuing warnings to 25 offshore crypto platforms operating in India without registration, including Huione, BC.game, Paxful, Changelly, CEX.IO, LBank, BingX, BitMEX, and others.
By year-end 2025, 50 service providers had completed FIU registration, reflecting the continued expansion of what remains the world’s most active crypto market. Nevertheless, comprehensive regulatory clarity remains elusive. The long-anticipated policy discussion paper on crypto assets failed to materialize once again.
In early 2025, Economic Affairs Secretary Ajay Seth stated that India was reassessing its crypto stance amid shifting global attitudes—comments that coincided with the rollout of crypto-friendly policies in the United States and fueled market expectations of a regulatory pivot. However, as 2025 concluded, no formal framework had been released.
Institutional signals remain mixed. The Reserve Bank of India (RBI) continues to oppose the inclusion of crypto assets within the regulatory perimeter, while the Ministry of Commerce has emphasized the merits of the central bank digital currency, the e-rupee, reiterating that the government “neither promotes nor prohibits crypto,” leaving risks to market participants.
Indian financial institutions have largely concentrated their digital asset initiatives on the e-rupee, with several banks preparing to participate in deposit tokenization pilot programs led by the central bank.
Outlook for 2026: Whether India can reconcile internal policy divergences and articulate a coherent regulatory pathway remains a key uncertainty.
2. United States 🇺🇸
| 2025 Cryptocurrency Adoption Ranking | #2 |
| Lead Regulatory Authority | FinCEN, SEC, CFTC, OCC, Federal Reserve, U.S. Treasury, NYDFS |
| Regulatory Landscape | AML registration requirements for virtual currency issuers and exchanges have been in place since March 2013, with New York’s BitLicense regime implemented in 2015. In 2025, the U.S. moved decisively to close regulatory gaps, culminating in landmark stablecoin legislation and the anticipated passage of a comprehensive market structure bill (FIT21 Act), expected to take effect in early 2026. |
Executive branch
In January 2025, during his first week in office, President Trump issued an Executive Order on Digital Assets, emphasizing innovation, opposing retail CBDCs, and establishing the President’s Working Group on Digital Asset Markets (PWG). In July, the PWG released a 163-page whole-of-government framework, the most comprehensive federal crypto policy document to date, addressing market structure, stablecoins, payments, AML/CTF safeguards, and banking integration.
Notably, the report urged regulators to provide clarity even in the absence of congressional action.
- Under SEC Chair Paul Atkins, the agency launched a sweeping modernization effort. Initially formed as a crypto task force led by Commissioner Hester Peirce, the initiative evolved into “Project Crypto”, the SEC’s first comprehensive digital asset rulemaking program. The project seeks to clarify when tokens constitute securities, explore safe harbors for early-stage development, and update custody and trading rules for on-chain settlement. The SEC approved standardized listing criteria for spot commodity ETFs and established a cross-border enforcement team targeting offshore fraud and market manipulation. Atkins’ reliance on exemptions and interpretive relief marked a sharp departure from the enforcement-centric approach of prior leadership.
- The CFTC, under Acting Chair Caroline Pham, launched a “crypto sprint” to align registration, margin, and reporting standards with congressional and PWG guidance. Coordination with the SEC reached unprecedented levels, including joint statements, roundtables, and harmonized terminology.
✨ Starlabs note: On December 22, 2025, Pham announced her departure and was succeeded by Michael Selig. Pham subsequently joined crypto payments firm MoonPay.
- The Treasury continued aggressive enforcement against scams, ransomware, and sanctions evasion, while supporting a balanced stablecoin framework.
- The Federal Reserve was barred from issuing a retail CBDC and instead focused on wholesale tokenized Treasury and interbank payment pilots.
- The OCC reopened pathways for national banks to provide custody services and issue stablecoins under strict oversight.
- At the state level, NYDFS tightened capital and audit requirements, issued warnings on meme-coin risks, and expanded the use of blockchain intelligence tools.
- California’s DFPI advanced implementation of the Digital Financial Assets Law (DFAL), publishing final rule proposals in April 2025 with compliance deadlines set for July 1, 2026.
- Wyoming launched FRNT, the first U.S. state-issued stablecoin, supported by cash and short-term Treasuries and deployed across seven blockchains.
Legislative branch
Congressional momentum reached historic levels in 2025. The GENIUS Act established a federal framework for stablecoin issuance, reserves, audits, and supervision.
The House passed the CLARITY Act, delineating SEC and CFTC jurisdiction, defining token reclassification from securities to commodities, and creating registration pathways for trading platforms. The Senate is currently reviewing the bill.
Lawmakers also revisited crypto taxation, seeking to narrow reporting obligations introduced under the 2021 infrastructure bill.
Outlook
Market structure legislation is widely expected to pass in 2026. Regulators must issue implementing rules for the GENIUS Act by July 18, 2026, with the law taking effect in early 2027. Leadership changes at the SEC could further accelerate the shift toward a rules-based regulatory paradigm.
Internationally, the U.S. is actively shaping standards through the G20, FSB, and FATF, supporting dollar-based stablecoins and tokenized markets while countering financial crime.
For the first time, U.S. crypto regulation is transitioning from fragmented enforcement to a coordinated legislative framework, positioning the country as a central architect of the future digital financial system.
3. Pakistan 🇵🇰
| 2025 Cryptocurrency Adoption Ranking | #3 |
| Lead Regulatory Authority | Pakistan Virtual Assets Regulatory Authority (PVARA) |
| Regulatory Landscape | Licensing framework in development |
After years of oscillation between restrictive and permissive stances, Pakistan accelerated toward regulatory clarity in 2025. In March, the government established the Pakistan Crypto Council (PCC) to promote innovation and sustainable development, chaired by entrepreneur Bilal bin Saqib, who was appointed the country’s first Minister of State for Crypto and Blockchain.
In May, PCC announced a partnership with World Liberty Financial, affiliated with the Trump family, and unveiled plans for a strategic Bitcoin reserve fund.
Pakistan also established PVARA as a dedicated regulator responsible for licensing, monitoring, and supervising VASPs. Applications are open to globally regulated VASPs that can demonstrate robust AML/CFT and KYC compliance.
Meanwhile, the State Bank of Pakistan (SBP) is preparing a digital currency pilot and advancing virtual asset legislation. SBP clarified that crypto assets are not illegal, but advised financial institutions to refrain from participation until a formal licensing framework is in place.
Outlook for 2026: Pakistan has taken meaningful steps toward regulatory certainty, with momentum expected to continue.
4. Philippines 🇵🇭
| 2025 Cryptocurrency Adoption Ranking | #4 |
| Lead Regulatory Authority | Bangko Sentral ng Pilipinas (BSP), Philippines SEC |
| Regulatory Landscape | Since January 2021, the BSP has licensed VASPs (with new licenses suspended from September 2022); from May 2025, the SEC will assume responsibility for licensing crypto asset service providers (CASPs). |
In May 2025, the Philippine SEC introduced a new Crypto-Asset Service Provider (CASP) licensing regime, complementing BSP’s earlier VASP framework. While BSP treats virtual assets primarily as a form of money service, the SEC framework extends to crypto assets with securities characteristics, creating a dual-regulatory landscape.
Under the CASP regime, exchanges, custodians, intermediaries, and ICO issuers must obtain SEC authorization, comply with AML/CTF rules, maintain minimum paid-up capital of PHP 100 million (~USD 1.8 million), and establish a physical presence in the Philippines. Additional requirements cover market integrity, asset segregation, advertising standards, and cybersecurity.
The SEC also launched a thematic regulatory sandbox to support innovation under controlled conditions.
Conversely, in August 2025, BSP indefinitely extended its suspension on new VASP licenses, citing rising risks to consumer protection and financial stability.
Stablecoin activity continues to expand. PDAX rolled out stablecoin-based remittances and payroll solutions; Coins.ph received sandbox approval to issue a peso-pegged stablecoin (PHPC); and four banks announced plans to issue PHP stablecoins on Hedera.
Outlook for 2026: Market attention will center on how the SEC operationalizes the CASP framework and coordinates with BSP oversight.
5. Brazil 🇧🇷
| 2025 Cryptocurrency Adoption Ranking | #5 |
| Lead Regulatory Authority | Central Bank of Brazil (BCB) |
| Regulatory Landscape | Authorization of VASPs effective from November 2025 |
2025 marked a watershed year for Brazil’s digital asset ecosystem, with the long-awaited VASP authorization regime taking effect in November.
Following extensive consultations since assuming regulatory authority in 2023, BCB issued three resolutions defining asset scope, authorization requirements, and the interaction between crypto activities, FX transactions, and cross-border operations.
From February 2, 2026, exchanges must comply with AML/CFT, disclosure, and transparency standards, and meet minimum capital requirements ranging from BRL 10.8 million to 37.2 million (USD 2–6.9 million). Existing VASPs benefit from a 270-day transitional period, expiring October 30, 2026.
Crypto transactions—particularly those involving stablecoins and cross-border transfers—are now integrated into Brazil’s FX and payments framework, with enhanced reporting obligations for transactions exceeding USD 100,000.
BCB Deputy Governor Gabriel Galipolo noted that 90% of Brazil’s crypto usage over the past three years involved stablecoins. Meanwhile, Brazil’s CBDC project Drex underwent a strategic pivot in August 2025, abandoning its blockchain-based architecture in favor of collateral-focused solutions, potentially delaying DLT adoption in payments.
Outlook for 2026: The market will closely monitor the implementation impact of the VASP regime on crypto and payments innovation.
6. Indonesia 🇮🇩
| 2025 Cryptocurrency Adoption Ranking | #6 |
| Lead Regulatory Authority | Otoritas Jasa Keuangan (OJK) |
| Regulatory Landscape | CASP licensing regime effective January 2025 |
In January 2025, Indonesia transferred crypto oversight from the commodities regulator Bappebti to the financial regulator OJK, introducing a formal CASP licensing regime. Exchanges and custodians must now obtain licenses and comply with AML/CTF, consumer protection, and data governance standards.
Bappebti-licensed entities were grandfathered into the new regime, while pending applicants transitioned to OJK review. As of October 2025, 29 CASP licenses had been issued, including 15 exchanges.
OJK continues to roll out supplementary rules, including key-person fit-and-proper tests and cybersecurity guidelines, and is exploring a single investor identification system to strengthen KYC and AML enforcement.
7. Vietnam 🇻🇳
| 2025 Cryptocurrency Adoption Ranking | #7 |
| Lead Regulatory Authority | Ministry of Finance (expected) |
| Regulatory Landscape | Previously operating in a gray area, a licensing pilot will begin in 2026. |
After years in a legal gray zone, Vietnam made a decisive move toward regulatory clarity in 2025. In June, the National Assembly passed the Digital Technology Industry Law (DTI), granting legal status to crypto and tokenized assets, effective January 1, 2026.
In September, the government approved a crypto services pilot program, restricting trading to licensed platforms and limiting issuance to foreign investors with real-asset backing. Stablecoins and security-backed tokens are prohibited. Licensing criteria are stringent, including minimum registered capital of VND 10 trillion (~USD 380 million) and majority local ownership, with no more than five licenses to be issued.
Outlook for 2026: The pilot regime is expected to reshape Vietnam’s crypto landscape, with enforcement against unlicensed offshore platforms commencing six months after the first license issuance.
8. South Korea 🇰🇷
| 2025 Cryptocurrency Adoption Ranking | #8 |
| Lead Regulatory Authority | Financial Services Commission (FSC), Korea Financial Intelligence Unit (KoFIU), Financial Supervisory Service (FSS) |
| Regulatory Landscape | The VASP licensing regime has been implemented since July 2024. |
Following the implementation of a VASP licensing regime in July 2024, 2025 proved transformative.
In February, the FSC unveiled a phased roadmap for institutional crypto trading.
- Phase I (June 2025) permits corporate trading for liquidation purposes.
- Phase II introduces a pilot allowing select institutions to trade under strict safeguards.
Approximately 3,500 companies, including listed firms, may qualify. Enhanced AML controls, independent custody, and disclosure requirements apply.
President Lee Jae-myung, elected in June, advanced pro-crypto policies, including spot crypto ETFs and KRW stablecoins. Financial institutions have already launched stablecoin pilots, while the FSC is expected to submit a stablecoin bill in early 2026.
In 2025, lawmakers from multiple parties introduced several stablecoin-related legislative proposals, and the FSC is expected to submit a draft stablecoin bill to the legislature in early 2026. Meanwhile, the central bank continues to monitor stablecoins’ impact on monetary policy and is seeking regulatory authority to address associated risks.
As stablecoin regulation advances, Korean financial institutions are actively developing related business. In September, Woori Bank and Korean crypto custodian BDACS successfully completed a proof of concept (PoC) for the KRW1 stablecoin on the Avalanche blockchain; Shinhan Bank, Nonghyup Bank, and Kbank completed the first-phase test of a Korea–Japan cross-border stablecoin remittance project.
Institutional adoption in Korea showed an encouraging start in 2025. In 2026, the market will closely watch whether policy incentives continue to be released to further consolidate Korea’s growth momentum.
9. 日本 🇯🇵
| 2025 Cryptocurrency Adoption Ranking | #9 |
| Lead Regulatory Authority | Japan Financial Services Agency (JFSA) |
| Regulatory Landscape | Since April 2017, cryptocurrency exchange service providers have been required to complete Anti-Money Laundering (AML) registration. From October 2018, industry self-regulation measures were implemented to strengthen governance and operational standards. |
In 2025, Japan shifted cryptocurrency regulation from the Payment Services Act (PSA) to the Financial Instruments and Exchange Act (FIEA), effectively treating crypto assets as securities. In March, the ruling Liberal Democratic Party’s Web3 working group released a proposal to define crypto assets as an independent asset class, marking the first formal articulation of this idea. The proposal continued to evolve throughout 2025, and the JFSA has put forward concrete plans under the new regulatory framework.
The JFSA noted multiple regulatory gaps in the crypto sector—such as unclear token whitepapers, false disclosures, unregistered operations, investment fraud, hacks, and market manipulation—while the FIEA, leveraging its established provisions in traditional capital markets, can more effectively address these issues. Investors are particularly focused on the planned reduction of crypto tax rates from 55% to 20% in 2026, aligning them with traditional capital gains tax rates.
Meanwhile, stablecoins have been gaining momentum under the 2023 regulatory framework. In March 2025, the JFSA granted SBI VC Trade the first electronic payment service provider license, authorizing it to issue USDC; in August, JPYC received the first funds transfer service provider license, allowing issuance of its yen-pegged stablecoin; in November, the JFSA announced support for pilot stablecoin projects by major Japanese banks.
The JFSA also published a research report highlighting that stablecoins “can mitigate the price volatility of traditional crypto while enabling fast, low-cost remittance and payments.” The report emphasized anti-financial-crime measures, including address blacklisting, immediate freezing of illicit assets, and public-private cooperation through the T3 Financial Crime Task Force, which froze over USD 300 million in illicit assets in its first year.
Looking ahead, Japan is reportedly considering regulatory reforms to allow banks to acquire and hold crypto assets for investment, potentially accelerating institutional adoption. Additionally, the new prime minister is expected to bring fresh political momentum to the crypto sector.
10. Thailand 🇹🇭
| 2025 Cryptocurrency Adoption Ranking | #15 |
| Lead Regulatory Authority | Thai SEC |
| Regulatory Landscape | AML registration required for crypto businesses since January 2020 |
Thailand continued to expand its digital asset framework. In March 2025, the SEC approved USDC and USDT trading. In May, the government announced G-Token, a tokenized government bond with a minimum investment of just THB 100 (~USD 3).
Additional initiatives included approval of carbon credit tokens, a Tourist DigiPay program enabling crypto payments, and a five-year capital gains tax exemption for crypto trading on regulated exchanges.
The SEC is also developing crypto ETF guidelines, expected in early 2026.
11. United Kingdom 🇬🇧
| 2025 Cryptocurrency Adoption Ranking | #17 |
| Lead Regulatory Authority | BaFinancial Conduct Authority (FCA) |
| Regulatory Landscape | Since January 2021, the BSP has licensed VASPs (with new licenses suspended from September 2022); from May 2025, the SEC will assume responsibility for licensing crypto asset service providers (CASPs). |
Cryptocurrency and Stablecoin Regulation
The UK laid the foundation for a comprehensive crypto regulatory framework in 2025. The FCA conducted a series of intensive consultations: first issuing a discussion paper on crypto market abuse and listing/disclosure requirements (DP24/4), followed by a broader consultation covering trading venues, intermediaries, lending/staking, and DeFi (DP25/1). In addition, it sought feedback on stablecoin issuance and custody (CP25/14) and the prudential regime for crypto firms (CP25/15), with final rules expected in 2026. To maintain the UK’s competitiveness in asset management, the regulator also launched a fund tokenization proposal in October 2025.
Meanwhile, the HM Treasury released a high-profile draft statutory instrument, bringing “qualifying crypto assets” and “qualifying stablecoins” under the Financial Services and Markets Act, meaning that related activities must be conducted by FCA-authorized entities.
In September, the UK and US jointly launched the Future Markets Transatlantic Working Group to optimize capital market access and coordinate crypto regulation. The group is expected to deliver short- and long-term reform recommendations within 180 days, strengthening cross-border collaboration.
In November, the Bank of England (BoE) issued a consultation paper to establish a regulatory framework for systemically important GBP stablecoins. The BoE clarified that large-scale digital currency arrangements will be subject to regulation similar to traditional payment systems. The most controversial provision introduces temporary holding limits: £20,000 (~$26,300) per individual and £10 million (~$13 million) per entity. According to the BoE, this measure aims to prevent rapid inflows from bank deposits into stablecoins during the transition period. However, crypto industry groups argue that such limits may suppress adoption or push issuers offshore, especially as US and EU jurisdictions move toward more flexible, risk-based regulation. The BoE indicated that these limits will be removed once the full regulatory framework is implemented and systemic risks are controlled.
Anti-Money Laundering and Sanctions
Regarding anti-money laundering, the UK 2025 National Risk Assessment raised the money laundering risk of crypto assets to “high,” while maintaining the terrorism financing risk at “medium.”
The OFSI (Financial Sanctions Implementation Office, HM Treasury) issued its first assessment of crypto asset sanctions threats, providing much-needed guidance on indirect exposures for firms on the blockchain. OFSI recommends tracing at least 3–5 hops of transactions or following funds to a recognizable service before reporting suspicious exposures. The report also highlighted that, since 2022, UK-linked entities’ exposure to the Russian exchange Garantex has increased significantly.
The UK has also actively targeted online activities suspected of facilitating Russian sanctions evasion. In May, the ruble stablecoin A7A5 issuer A7 was sanctioned for providing financial services undermining Ukrainian sovereignty. In August, sanctions were imposed on crypto exchanges Grinx and Meer, linked to the A7A5 stablecoin, which reportedly processed approximately $9.3 billion in transactions over four months.
Looking ahead to 2026, the market will monitor whether the UK can translate the momentum from the consultation phase into regulatory outcomes, establishing a clear and competitive regulatory framework.
12. Argentina 🇦🇷
| 2025 Cryptocurrency Adoption Ranking | #18 |
| Lead Regulatory Authority | Comisión Nacional de Valores (CNV) |
| Regulatory Landscape | VASP registration required since March 2024 |
2025 was a turbulent year for crypto policy in Argentina. The government not only strengthened oversight of service providers but also introduced a regulatory framework for tokenized assets for the first time, while addressing market integrity issues following controversy over a “presidential-endorsed” meme coin. In February, President Javier Milei briefly promoted a little-known meme coin, $LIBRA, on social media, causing the token to surge and then collapse, triggering a judicial investigation. Although no charges have been filed, the incident highlighted risks posed by misinformation, market manipulation, and retail investor vulnerability under a weak regulatory environment.
On the regulatory front, Argentina enhanced its VASP registration regime in 2025. The system, launched in March 2024 under General Resolution No. 994 (GR 994), was updated with General Resolution No. 1058, effective May 2025, introducing additional registration requirements covering AML, client asset segregation, cybersecurity, auditing, and corporate governance. VASPs previously registered with the CNV under GR 994 were required to submit supplementary materials compliant with the new rules by Q3 2025 to maintain registration.
In June, Argentina issued GR 1069 and GR 1081, formally establishing a CNV-regulated legal framework for tokenized assets, to be piloted in a regulatory sandbox for one year. CNV Chairman Dr. Roberto E. Silva stated that the goal is to create a modern regulatory framework that supports the growth of Argentina’s capital markets.
Overall, 2025 laid the groundwork for a clearer and more innovation-friendly regulatory environment. In 2026, focus will shift to the practical implementation of these frameworks and their translation into concrete regulatory expectations.
13. Mexico 🇲🇽
| 2025 Cryptocurrency Adoption Ranking | #19 |
| Lead Regulatory Authority | Banco de México (Banxico) |
| Regulatory Landscape | Authorization required for financial institutions operating virtual assets from March 2019 |
In 2025, as the rotating chair of the Financial Action Task Force (FATF), Mexico’s digital asset regulatory trajectory underwent significant evolution under global scrutiny. While emphasizing financial inclusion, the country actively promoted the development of international standards better suited to emerging markets.
In July, Mexico enacted major revisions to the Anti-Money Laundering Law (LFPIORPI), introducing new obligations for reporting entities, including risk assessments, appointment of compliance officers, and periodic compliance audits, while expanding the scope of high-risk activities subject to AML requirements. Notably, the scope of virtual asset activities was broadened to include services provided by non-financial entities such as VASPs, with clearer thresholds and conditions for virtual asset operations.
In the financial sector, regulators and enforcement authorities have maintained a cautious approach. The 2018 Fintech Law restricts virtual asset activities to licensed financial institutions authorized in advance by Banxico, with very few licenses issued.
Overall, Mexico’s regulatory path is prudent, shaped both by its FATF chairmanship and by a clear recognition of the growing integration of digital assets into the national economy.
14. South Africa 🇿🇦
| 2025 Cryptocurrency Adoption Ranking | #23 |
| Lead Regulatory Authority | Financial Sector Conduct Authority (FSCA) |
| Regulatory Landscape | CASP licensing effective October 2022 |
In 2025, South Africa took a series of measures to deepen understanding of the crypto industry, support more effective regulation, and develop future regulatory frameworks, including for stablecoin arrangements. In March, the Crypto Asset Regulatory Working Group (CAR WG) under the Intergovernmental Fintech Working Group (IFWG) published a stablecoin market diagnostic report, exploring local stablecoin use cases, potential risks, and benefits. The report noted that six local stablecoins had been issued, all by non-bank entities, but identified regulatory gaps specific to stablecoins. Based on these findings, the CAR WG will proceed to a second phase, formulating comprehensive regulatory recommendations for stablecoins.
In April, South Africa became one of the first African countries to make progress in implementing the FATF Travel Rule. By June 2025, the FATF announced that South Africa had substantially completed all necessary action items, making it eligible for removal from the FATF “grey list,” pending on-site evaluation.
✨ Starlabs note: South Africa was grey-listed in February 2023, required to implement 22 action items related to AML/CTF capacity building, regulatory mechanisms, enforcement, and international cooperation, none of which involved crypto.
In October, the FSCA issued a comprehensive information request to over 240 licensed CASPs to support effective regulation, consumer protection, and market integrity and efficiency. The request covered business models, trading volumes, risk management, AML/CTF (including use of blockchain intelligence tools), and consumer protection measures, including a dedicated section on stablecoin operations and compliance with South African Reserve Bank currency exchange controls.
Overall, 2025 saw significant progress in South Africa’s crypto industry awareness and regulatory framework. In 2026, the country is expected to further clarify its stablecoin regulatory policy and its approach to CASP supervision.
15. Germany 🇩🇪
| 2025 Cryptocurrency Adoption Ranking | #24 |
| Lead Regulatory Authority | Bundesanstalt für Finanzdienstleistungsaufsicht (BAFin) |
| Regulatory Landscape | MiCA framework effective for stablecoin issuers from June 2024 and for CASPs from December 2024 |
In 2025, MiCA licensing accelerated in Germany, with BaFin approving 20 CASPs, representing 30% of all approvals in the EU and ranking first among member states.
Germany’s MiCA licensing regime, implemented in 2025, successfully capitalized on the institutionalization of the crypto sector. The licensing framework not only attracted numerous crypto-native firms to establish Germany as a key EU hub but also granted licenses to traditional German financial institutions and fintech companies. For example, on August 1, 2025, BaFin approved the first MiCA-based euro stablecoin, issued by AllUnity, a joint venture of DWS (Deutsche Bank), Flow Traders, and Galaxy Digital. The ERC-20 asset, built on Ethereum, provides regulated real-time cross-border euro payments for financial institutions, fintech companies, and corporates.
Germany and France jointly reaffirmed support for the digital euro and MiCA, stating: “Under MiCA, we aim to build a vibrant European crypto market and enhance the international competitiveness of MiCA-compliant European crypto service providers.”
On the enforcement front, Germany participated in several high-profile actions in 2025. In March, German authorities, together with counterparts in the US, Netherlands, and Finland, successfully dismantled operations of the sanctioned exchange Garantex. In April, authorities seized infrastructure of the crypto exchange eXch, implicated in laundering funds stolen in the Bybit hack, confiscating over €25 million in crypto assets.
✨ For more updates on regulatory developments in top crypto-adopting countries, see Starlabs Consulting’s next article: “Global Crypto Adoption Top 30 Regions: 2025 Regulatory Developments & 2026 Policy Outlook (Part II)”.
