Crypto regulation in the world weekly digest #153

FATF

The FATF has issued a new annual report «Targeted Update on Implementation of the FATF Standards on Virtual Assets and Virtual Asset Service Providers», that provides the sixth global review of how countries are adopting and enforcing AML/CFT standards, particularly Recommendation 15, which applies to virtual assets VASPs.

The FATF notes that since 2024, jurisdictions — including those with significant VASP activity — have made notable progress in developing and enforcing AML/CFT regulations for virtual assets and VASPs. About 76% of surveyed jurisdictions have conducted risk assessments related to VAs/VASPs, up from 71% in 2024. However, many still face challenges in fully applying risk-based mitigation and supervision measures effectively.

The report emphasizes the importance of licensing or registering VASPs and conducting supervisory inspections. Jurisdictions are encouraged to address risks posed by offshore VASPs and enforce compliance through sanctions or other measures. The FATF underscores the urgent need for jurisdictions to enact and operationalize the Travel Rule, which mandates the sharing of customer information during VA transfers to combat illicit finance. Effective supervision and enforcement of this rule remain critical priorities.

Countries are urged to maintain and publicize up-to-date registries of licensed or registered VASPs to facilitate due diligence and cooperation among jurisdictions. The report highlights ongoing threats such as state-sponsored hacks, fraud, scams (estimated at $51 billion), and cross-border laundering networks exploiting anonymity and fragmented enforcement in the crypto space.

Since amending Recommendation 15 in 2018 and adopting its Interpretive Note in 2019, FATF has been actively guiding jurisdictions to close gaps in AML/CFT frameworks related to virtual assets. This report reflects ongoing efforts to strengthen global standards and address the dynamic risks posed by virtual assets and VASPs, aiming to safeguard the financial system while supporting legitimate crypto innovation.

Turkey

Turkey is implementing significantly stricter controls on cryptocurrency transactions as part of a comprehensive regulatory overhaul aimed at combating money laundering, illicit financial flows, and ensuring financial integrity in its fast-growing crypto market.

New forthcoming regulations mandate crypto platforms to collect detailed source and purpose data for every transaction, requiring users to provide a transaction description of at least 20 characters. Withdrawal delays are imposed: a 48-hour delay for most withdrawals and a 72-hour delay for the first withdrawal from any account, especially when the global Travel Rule does not apply.

Also, daily and monthly limits on stablecoin transfers have been introduced to prevent rapid illicit fund movements: $3,000 per day and $50,000 per month. Platforms fully compliant with Travel Rule obligations may apply double these thresholds. Exemptions exist for liquidity provision, market making, and arbitrage transactions if properly monitored by platforms.

The Capital Markets Board of Turkey has been granted full regulatory control over CASPs, including exchanges, custodians, and wallet providers. New licensing and operational guidelines require CASPs to comply with strict capital adequacy requirements (e.g., exchanges must hold at least $4.1 million, custodians $13.7 million). The regulatory framework includes executive background checks, shareholder disclosures, and operational standards to ensure compliance with both national and international regulations.

Platforms failing to meet these regulations risk administrative and financial sanctions, including license denial or cancellation. These regulatory reforms reflect Turkey’s effort to harmonize with global standards, particularly the EU’s MiCA regulation.

Brazil

Brazil’s Central Bank has proposed new accounting rules for virtual assets, aiming to standardize how financial institutions recognize, measure, derecognize, and disclose cryptocurrencies and tokens in their financial statements. The draft regulation, now open for public consultation as of June 2025, addresses both proprietary holdings and assets held on behalf of clients, reflecting the growing importance of digital assets in the financial system. Key features include:

• Initial recognition of acquired assets at purchase price.

• Assets received through services like staking or mining recorded at fair value when the performance obligation is fulfilled.

• Similar fair value recognition for free distributions such as airdrops.

• Disclosure requirements in financial notes covering value fluctuations, asset characteristics, and related obligations.

• Different rules depending on whether assets are acquired, received, issued, or held in custody.

This framework aims to enhance transparency, comparability, and quality of financial reporting related to virtual assets among Brazilian banks and financial institutions. In parallel, Brazil has introduced a new crypto tax regime effective mid-2025, featuring a flat 17.5% capital gains tax on all crypto transactions, eliminating the previous monthly exemption of R$35,000. This tax applies to domestic and offshore holdings, including self-custody wallets and DeFi assets, with quarterly reporting requirements to the Receita Federal. The new tax rules increase compliance burdens but simplify the tax rate structure for all crypto investors.

News from other countries:

• Bolivia has seen a rapid and significant adoption of cryptocurrencies in retail purchases, driven by severe economic challenges including high inflation, a depreciating local currency, and dollar shortages. Since the lifting of a crypto ban in June 2024, crypto transactions surged by over 630% year-over-year, totaling more than $430 million through official channels by mid-2025. Around 86% of virtual asset transactions are by retail users, including small businesses and individual consumers. In cities like Cochabamba, shops, beauty salons, and street vendors increasingly accept cryptocurrencies such as Bitcoin and stablecoins like Tether (USDT) for everyday goods and services, from electronics to food and cosmetics.

• Kenya has proposed the creation of a joint crypto regulatory body as part of its Virtual Asset Service Providers (VASP) Bill introduced in 2025, aiming to establish a comprehensive multi-agency framework for overseeing digital asset providers.

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