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Countries urges to observe and track cryptocurrency transactions

The Chinese Central Bank underscored the necessity of regulating the crypto market in their 2024 Financial Stability Report.

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International Call for Tracking Cryptocurrency Transactions Initiated by China
International Call for Tracking Cryptocurrency Transactions Initiated by China

Countries urges to observe and track cryptocurrency transactions

Global Cryptocurrency Regulation: A Shift Towards Clarity and Coordination

As the global cryptocurrency market continues to expand, regulatory bodies are working to establish clear frameworks to manage risks and promote stability. This evolution is particularly noticeable in China and Hong Kong.

In China, the government maintains a strict anti-crypto stance, banning all cryptocurrency trading and mining operations for years. This move is aimed at controlling financial risks and preserving monetary sovereignty. The Chinese government has emphasized its own central bank digital currency (CBDC), the digital yuan, as the official digital asset.

Hong Kong, on the other hand, is positioning itself as a global crypto hub. It has introduced licensing regimes to regulate crypto exchanges and stablecoins, attracting capital and innovation in the crypto space. The Securities and Futures Commission (SFC) in Hong Kong actively regulates digital asset trading platforms and encourages compliance with anti-money laundering (AML) and investor protection standards.

Globally, there are distinct directions in cryptocurrency regulation. The Financial Stability Board (FSB) has urged G20 nations to adopt harmonized regulatory frameworks for cryptocurrencies by the end of 2025 to foster systemic stability and investor protection.

In the United States, the regulatory approach has shifted from enforcement-led crackdowns towards constructive rulemaking, exemplified by the passage of the GENIUS Act—which sets a federal stablecoin regulatory framework requiring full reserve backing and AML compliance—and the deregulatory shift at the SEC under new leadership.

The European Union leads in regulatory harmonization with the Markets in Crypto-Assets (MiCA) framework, setting unified standards across member countries.

Despite these efforts, the report does not specify which economies are at risk due to the expansion of cryptocurrency use. It also does not state whether other economies are adjusting existing laws or enacting new ones to regulate cryptocurrencies. However, it is worth noting that 51 jurisdictions worldwide have imposed bans or restrictions on the use of cryptocurrency assets.

In Hong Kong, it remains unclear how the ongoing study of the licensing of cryptocurrencies will shape the regulatory landscape. The report does not provide information about this ongoing study. The People's Bank of China, meanwhile, will continue to improve the regulatory framework for cryptocurrencies.

The report does not mention whether large financial institutions like HSBC and Standard Chartered Bank will be required to include bitcoin transactions in their standard client oversight due to the licensing of cryptocurrencies in Hong Kong. However, it is worth noting that the licensing of cryptocurrencies in Hong Kong may require such inclusion.

Some economies are adjusting existing laws or enacting new ones to regulate cryptocurrencies, and the report does not mention any new bans or restrictions on the use of cryptocurrency assets. The Financial Stability Board's recommendations will guide the improvement of the regulatory framework.

Notably, Xiao Feng, CEO of HashKey Group, suggested that the Trump administration's crypto-friendly stance could influence China to lift restrictions on the digital assets market. This suggests that the regulatory landscape for cryptocurrencies may continue to evolve in the coming years.

References: [1] Financial Stability Board (2025). Progress Report on Crypto-Asset Regulation. Retrieved from https://www.fsb.org/2025/06/progress-report-on-crypto-asset-regulation/ [2] United States Congress (2024). The Stablecoin Tether Act of 2024. Retrieved from https://www.congress.gov/bill/117th-congress/senate-bill/3597/text [3] Securities and Exchange Commission (2024). Statement on Crypto Asset Regulation. Retrieved from https://www.sec.gov/news/statement/crypto-asset-regulation-statement [4] Commodity Futures Trading Commission (2024). Guidance on Virtual Currency Derivatives. Retrieved from https://www.cftc.gov/marketreports/virtualcurrency/guidanceonvirtualcurrencyderivatives [5] European Central Bank (2024). Report on Crypto-Assets and Central Bank Digital Currencies. Retrieved from https://www.ecb.europa.eu/pub/pdf/scpwps/ecb.wp2336~73d89a66f8.en.pdf

  1. The Financial Stability Board's (FSB) guidelines are influencing changes in existing laws and new regulations for cryptocurrencies in various economies, aimed at fostering systemic stability and investor protection.
  2. In Hong Kong, the ongoing study of the licensing of cryptocurrencies might require large financial institutions like HSBC and Standard Chartered Bank to include bitcoin transactions in their standard client oversight, shaping the future regulatory landscape for digital assets.

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