#Stablecoin Regulation Crackdown#

Global Tightening in Stablecoin Regulations Has Begun!

What Happened in 2025, What Kind of Measures Did Which Countries Take?

US – GENIUS Act in Effect
• On July 18, 2025, President Trump signed the GENIUS Act, implementing the first federal regulation for stablecoins.
• The law imposes the following obligations on exporters:
• 100% cash or Treasury bond reserve requirement
• Monthly audit and independent reserve reports
• Anti-money laundering (AML) compliance
• While Congress members cannot directly benefit from stablecoin projects, this restriction does not apply to the President. (Trump has a stablecoin investment ).
• Critics argue that the law could protect large firms, but the crypto sector sees this law as an important step.

European Union – MiCA in Effect
• The MiCA regulation will come into effect by the end of 2024.
• Main materials:
• Algorithmic stablecoins have been banned
• Ineligible coins such as USDT, DAI, and TUSD have been removed from exchanges until March 31, 2025.
• 1:1 reserve requirement, regular audits, and licensing conditions
• Exchanges now only support these assets for storage or withdrawal purposes; there is no permission for trading.

Hong Kong – New Licensing Law
• With the law enacted at the beginning of 2025, stablecoin issuers are required to obtain a license from the HKMA.
• Requirements:
• Capital adequacy
• Reserve transparency
• User refund guarantee

Canada – New Rules Started (31 December 2024)
• Only stablecoins that comply with the rules can be traded on exchanges, for example, USDC.
• Transparent financial reporting and regular audits have become mandatory.

Brazil – Transfer to Own Wallets May Be Banned
• It was proposed to impose restrictions on self-custody transfers of foreign stablecoins to personal wallets.
• This proposal gathered public feedback until February 2025.

FATF – Emphasis on Money Laundering Risk
The June 2025 report stated that stablecoins and DeFi are risky in terms of money laundering.
• New global guides specific to these areas are expected to be published by 2026.

Why Are Strict Regulations Coming to Stablecoins?
1. Systemic Risk Concern:
• Especially opaque projects like Tether (USDT) carry systemic risks similar to the collapse of TerraUSD.
Regulators are afraid that these projects threaten the financial system.
2. Money Laundering and Illegal Use:
• According to reports from the US and FATF, some stablecoins were used in North Korea-backed hacks and illegal activities.
3. Consumer Protection and Transparency:
To prevent users from suffering losses, 1:1 reserves, audits, and refund mechanisms are now made mandatory.
4. Integration with the Financial System:
• The USA wants to create stablecoin systems integrated with banks.
• Although the Fed is still cautious, there are plans to connect some stablecoins to payment infrastructures.

Result:
This is just a beginning

Stablecoins are becoming not just cryptocurrencies, but a fundamental part of the financial system. That's why:
• Inspections are increasing
• Legal frameworks are becoming clearer.
• Farewell to algorithmic coins
• Projects like USDT are struggling, while regulation-friendly coins like USDC are coming to the forefront.