Regulatory Storm Hits Stablecoin Market
Stablecoins have evolved from being just a tool for crypto traders to becoming a regulated financial instrument across major markets. The rollout of new regulatory frameworks between 2023 and 2026 has created a complex web of compliance obligations that businesses must navigate.
New regulations include the GENIUS Act in the US, Europe's Markets in Crypto-Assets (MiCA) regulation, and the Financial Conduct Authority's (FCA) crypto regime in the UK. Other parallel frameworks have been delivered by regulatory bodies in Singapore, Hong Kong, Dubai, and the FATF Travel Rule.
The question now is no longer whether stablecoin activity is regulated but which specific rules apply to each business, depending on their operational role. For example, a bank, wallet provider, payments processor, or card programme might all handle the same stablecoin but face different obligations due to their function.