Crypto regulation in the world weekly digest #160

UAE

UAE airlines are making significant moves toward accepting cryptocurrency payments. In July 2025, Emirates signed a Memorandum of Understanding (MoU) with Crypto.com to integrate Crypto.com Pay into its payment systems. This partnership will allow Emirates customers to pay for flights and in-flight purchases using popular cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), and Tether (USDT). However, the full integration is planned for 2026 and will involve converting crypto payments instantly to Emirati dirhams at the current exchange rate at purchase — meaning Emirates will not hold or settle funds in cryptocurrency directly.

Additionally, Air Arabia, a major UAE low-cost airline, has also started accepting crypto payments, working with the blockchain-based travel platform Travala. This enables passengers to use BTC, ETH, and USDT for booking flights and related services. The adoption of crypto for flight bookings is part of a wider trend in the UAE’s regulatory and business environment, positioning the country as a hub for digital assets and financial innovation.

Currently, the practical implementation at Emirates and other UAE airlines is underway, and customers can expect crypto payment options to go live within the next year, depending on technical and regulatory alignment. In the meantime, some bookings via global travel agents like Travala already allow the use of cryptocurrencies for UAE-based airlines.

Russia

The U.S. Treasury's Office of Foreign Assets Control recently took additional significant actions against Russian crypto platforms. On August 14, 2025, OFAC re-designated the cryptocurrency exchange Garantex Europe OU, which had facilitated over $100 million in transactions linked to ransomware actors and other cybercriminal activities since 2019. OFAC also sanctioned Garantex's successor platform, Grinex, which was created by Garantex employees to continue sanctions evasion efforts.

In addition, sanctions were imposed on three executives of Garantex and six associated companies in Russia and the Kyrgyz Republic, including entities like Independent Decentralized Finance Smartbank and Ecosystem (InDeFi Bank) and Exved, which reportedly facilitated cryptocurrency trade to circumvent U.S. sanctions. This move builds on OFAC's earlier sanctions against cryptocurrency exchanges like Cryptex, PM2BTC, and others that have facilitated illicit financial activities.

This action highlights the continued U.S. commitment to disrupting cryptocurrency exchanges that facilitate cybercrime, ransomware payments, and sanctions evasion by Russian-linked actors. It also follows a multinational crackdown in March 2025, where Garantex's primary domain was seized and millions in cryptocurrency were frozen.

The U.S. Treasury emphasized that abusing digital assets for such illicit purposes threatens national security and damages the reputation of legitimate digital asset service providers. The enforcement targets the infrastructure and individuals supporting these criminal activities in the crypto space, aiming to restore integrity to the industry.

Vietnam

Vietnam is actively advancing plans to establish a national, regulated crypto exchange as part of a broader digital asset strategy. The Vietnamese government is preparing to launch a pilot cryptocurrency exchange by 2025. This move comes amid strong public crypto engagement — 21.2% of Vietnamese reportedly hold digital assets. The pilot aims to enforce licensing, transaction reporting, and anti-money laundering rules to ensure a careful balance between innovation and financial stability.

A prominent initiative involves Military Bank, a state-controlled lender under the Ministry of National Defense, partnering with Dunamu, parent of South Korea’s Upbit exchange. This partnership was formalized in August 2025, and Dunamu will support the exchange buildout with technology, compliance, and workforce training. The exchange is part of a government-led initiative to establish a securely regulated digital asset market.

Vietnam’s National Assembly passed the Digital Technology Industry Law in June 2025, which will take effect on January 1, 2026. This law legally recognizes cryptocurrencies, NFTs, and other digital assets, providing protection, clear categories, and legal certainty for trading and ownership. The Ministry of Finance is finalizing policies for the pilot exchange, expected to be located in an international financial center. The structure allows for multiple licensed exchanges, not a single monopoly, and priorities include asset liquidity and robust cybersecurity. The government is working with both domestic and international entities, including Bybit, to design regulatory sandboxes. These test environments allow controlled piloting of digital asset platforms to refine frameworks around compliance, know-your-customer, anti-money laundering, and consumer protection. The country’s plans involve a coordinated, multi-agency pilot phase for regulated digital asset exchanges. The new legal framework and high consumer adoption rates signal a supportive environment that’s likely to strongly influence both regional policy and future investment in Southeast Asia’s crypto sector.

News from other countries:

• Kazakhstan launched the first spot Bitcoin ETF in Central Asia on August 13, 2025. The ETF, called Fonte Bitcoin Exchange Traded Fund OEIC Plc (ticker: BETF), is listed on the Astana International Exchange (AIX). It is denominated in US dollars and physically backed by Bitcoin held in secure cold storage under custody by the US-regulated asset custodian BitGo. The fund is insured up to $250 million, providing strong investor protection.

• Ethiopia, where crypto mining is very popular, has announced a definitive plan to phase out all cryptocurrency mining operations by 2025 due to concerns over energy security and the high electricity consumption of mining activities. The state-owned Ethiopian Electric Power (EEP) will terminate existing mining permits and stop issuing new electricity supply agreements to crypto mining companies.

• Do Kwon, the co-founder of Terraform Labs and creator of the TerraUSD and Luna cryptocurrencies, has pleaded guilty to charges of conspiracy to commit fraud and wire fraud related to the collapse of his crypto projects. The collapse in 2022 led to losses estimated at around $40 billion, affecting thousands of investors worldwide.

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