Crypto regulation in the world: weekly digest #147

USA

A group of 20 Democratic U.S. senators introduced the «End Crypto Corruption Act of 2025» in response to mounting concerns over conflicts of interest and potential corruption involving government officials and cryptocurrency projects. The legislation specifically targets senior government officials, including the President, Vice President, members of Congress, Senate-confirmed executive appointees, certain special government employees, and their immediate families.

The bill would prohibit these officials and their spouses and dependent children from issuing, launching, or creating any cryptocurrency or digital asset. Promoting, endorsing, or sponsoring any cryptocurrency or digital asset, including via social media or public appearance will be also prohibited as well as using cryptocurrencies as political or electoral tools.

The proposed restrictions would apply during the officials' terms in office and continue for one year after leaving office. Violations could result in substantial civil and criminal penalties, including financial fines and potential court proceedings. Meanwhile, the bill does not prohibit the routine purchase, sale, or holding of cryptocurrencies as private investments, as long as these activities are available to the general public and do not involve promotion or endorsement.

The proposal is a direct response to recent controversies involving President Donald Trump and his family, who have launched and promoted tokens such as $TRUMP and $MELANIA, as well as their involvement in the World Liberty Financial DeFi project. Lawmakers argue these activities create opportunities for «pay-to-play» access, raise national security concerns, and undermine public trust in government. The bill also references high-profile figures like Elon Musk, who was holding a special government employee role, as subject to these restrictions.

The «End Crypto Corruption Act of 2025» follows failed attempts at broader stablecoin regulation and reflects heightened partisan tensions over crypto policy, especially regarding the Trump administration's ties to digital assets. It represents a significant move by Senate Democrats to prevent conflicts of interest and potential corruption arising from government officials' involvement in cryptocurrency projects.

United Kingdom

Beginning January 1, 2026, all cryptocurrency firms operating in the United Kingdom - including foreign companies serving UK customers - will be required to collect and report detailed information on every customer transaction. This sweeping new regulation is part of the UK’s adoption of the Crypto-Asset Reporting Framework, a global standard designed to combat tax evasion and align crypto transparency with that of traditional finance.

Firms that fail to comply or submit inaccurate/incomplete data may face fines of up to £300 per user. HM Revenue and Customs will provide further instructions, but authorities are already urging firms to begin preparations and data collection to ensure readiness for the 2026 deadline.

The UK’s move follows the OECD’s CARF, aiming to standardize crypto tax reporting internationally. While the EU’s MiCA regulation focuses more on stablecoin issuers and volume limits, the UK’s approach emphasizes transaction-level transparency and reporting across all crypto assets, with fewer restrictions on innovation and foreign issuers.

Thailand

Thailand is preparing to launch a state-backed digital investment token, known as the «G-Token», with the aim of attracting investments and broadening retail access to government bonds. The Ministry of Finance plans to issue 5 billion baht (approximately $150 million) worth of these tokens within the next two months, following cabinet approval.

The G-Token is designed to raise funds for the government's current budget borrowing plan and to «test the market» for digital investment products. The initiative specifically targets retail investors, allowing individuals to participate in government bond investments for as little as $3-significantly lowering the traditional barriers to entry, which have favored institutional and high-net-worth participants.

The Thai government has stated that returns on G-Tokens will surpass those currently offered by commercial bank deposits, which are around 1.25% for a 12-month fixed deposit-well below the central bank's policy rate. G-Tokens will be tradable on licensed digital asset exchanges in Thailand, although these platforms will not be accessible to non-Thai citizens residing in the country.

Despite being linked to government bonds, officials emphasize that G-Tokens are not classified as debt instruments. The move is part of Thailand’s broader strategy to expand its cryptocurrency framework and digital economy. The country has recently introduced tax exemptions for crypto earnings and approved major stablecoins for trading.

News from other countries:

• Wyoming is preparing to launch its own government-backed stablecoin called the Wyoming State Token (WST), with an expected release around July 2025. The stablecoin will be fully backed by cash and U.S. Treasury securities, including repurchase agreements, and will be overcollateralized to maintain price stability. Interest generated from the reserves will be allocated to Wyoming’s school foundation fund, supporting public goods like education.

• The U.S. Department of Justice has decided to proceed with the prosecution despite a recent internal memo advising against «regulation by prosecution» in unclear regulatory areas. While the DOJ has dropped one charge related to operating an unlicensed money transmitting business, the trial will move forward on charges that Storm knowingly transmitted funds linked to criminal activity, conspired to commit money laundering, and conspired to violate U.S. sanctions laws. These charges stem from allegations that Tornado Cash was used to launder over $1 billion in cryptocurrency, including funds tied to the North Korean hacking group Lazarus.

• Russia is preparing to launch a regulated cryptocurrency trading platform under an experimental legal regime that will initially be accessible only to a limited group of highly qualified or «super-qualified» investors. This initiative is part of a broader effort by the Russian government and the Central Bank to regulate crypto investments while maintaining strict controls on general public access.

We continue to highlight the news of the world of crypto regulation worldwide. Please stay with us!