Crypto regulation in the world weekly digest #151

USA

The U.S. Securities and Exchange Commission is undergoing a significant policy shift regarding DeFi regulation. Under the new leadership of Chairman Paul Atkins and the Trump administration, the SEC is moving away from the more restrictive regulatory approach of the previous administration and is actively considering deregulation and exemptions for DeFi platforms.

On June 13, 2025, the SEC officially rescinded several proposed rules from the Biden era, including those targeting DeFi protocols, crypto custody, and the expansion of the definition of «exchange» to include DeFi systems. The most notable rollback was the withdrawal of Rule 3b-16, which would have classified many DeFi protocols as securities exchanges, subjecting them to the same regulations as traditional financial exchanges. The SEC also abandoned stricter crypto custody requirements that would have forced investment advisers to use regulated «qualified custodians» for digital assets, a move that was widely criticized by the crypto industry for being impractical.

SEC Chairman Paul Atkins has announced plans for an «innovation exemption» specifically designed to ease regulatory barriers for DeFi platforms. This exemption aims to allow on-chain financial products and services to be launched more quickly and with less risk of enforcement action against developers, particularly when their software operates without centralized administration. Atkins emphasized that software developers should not be held liable for how decentralized code is used, signaling a shift toward protecting innovation and open-source development in the DeFi space.

The policy changes reflect the priorities of the Trump administration, which has committed to sweeping deregulation in both crypto and traditional financial marketы. The SEC’s new approach has been welcomed by much of the crypto industry, with many seeing it as an opportunity for more flexible and innovation-friendly governance.

DeFi platforms and developers are no longer at immediate risk of being regulated as securities exchanges or being forced to comply with stringent custody requirements. The SEC is signaling a willingness to engage directly with DeFi innovators to craft more balanced regulations that protect investors without hampering technological progress.

South Korea

South Korea’s ruling Democratic Party, under President Lee Jae-myung, has introduced a landmark legislative proposal — the Digital Asset Basic Act — that aims to legalize and regulate the issuance of stablecoins by domestic companies. This move is designed to modernize the country’s financial system, encourage innovation, and reduce reliance on foreign stablecoins.

The proposed law allows South Korean companies to issue their own stablecoins, provided they meet strict requirements. These tokens must be pegged to stable assets, such as the South Korean won or major fiat currencies, to ensure price stability.

Requirements for Issuers:

• Minimum equity capital of 500 million won (approximately $366,000–$368,000).

• Sufficient reserves to guarantee redemptions, ensuring holders can convert stablecoins back to fiat currency at any time.

• Approval from the Financial Services Commission, South Korea’s main financial regulator.

• Compliance with registration, reporting, and anti-money laundering obligations.

Regulatory Oversight:

• The FSC will oversee the approval and ongoing supervision of stablecoin issuers.

• The bill proposes the creation of a new Digital Asset Committee or Presidential Committee for Digital Assets to coordinate and oversee digital asset policy.

The South Korean government aims to establish a won-based stablecoin market to curb capital outflows, as a significant portion of crypto trading in South Korea currently involves foreign stablecoins like USDT and USDC. President Lee has emphasized that this will help prevent «national wealth from leaking overseas». By setting clear rules and regulatory standards, the government seeks to improve transparency, build investor trust, and foster competition in the domestic crypto market.

Brazil

A new bill has been proposed in Brazil by a deputy from President Lula's political party (the Workers' Party) that aims to restrict Bitcoin mining and impose taxes on cryptocurrency trading activities.

Following the bill proposal only licensed entities would be allowed to mine Bitcoin in Brazil, with miners required to obtain licenses and comply with strict environmental standards to reduce the energy-intensive mining's environmental impact. Cryptocurrency trading would also be restricted to licensed traders, and a daily tax would be imposed on trading activities, potentially generating government revenue and providing a regulatory framework to protect consumers and financial stability.

The bill is still in early legislative stages and reflects Brazil's growing interest in regulating the cryptocurrency industry amid global regulatory scrutiny. This proposal is part of a broader trend where governments seek to regulate decentralized digital currencies to address environmental concerns, market stability, and consumer protection.

Separately, Brazil is also considering legislation to integrate Bitcoin into its national financial system, including a bill to create a Sovereign Strategic Bitcoin Reserve managed by the Central Bank and Ministry of Finance, allowing up to 5% of foreign reserves in Bitcoin. This bill focuses on secure custody, audits, and AI monitoring, aiming to diversify reserves and enhance financial resilience.

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