DSG FINTECH UPDATE — OCTOBER 2025
United States
Senate Schedules Cryptocurrency Tax Hearing Following IRS Corporate Tax Relief: On October 1, the Senate Finance Committee held a hearing, entitled “Examining the Taxation of Digital Assets,” after the Treasury Department and Internal Revenue Service (IRS) issued interim guidance easing Corporate Alternative Minimum Tax (CAMT) compliance for digital asset companies. Notice 2025-49 allows companies to exclude unrealized gains and losses on digital assets held as fair value assets from CAMT income, potentially saving companies from tax liability. Chairman Crapo’s (R-ID) opening statement is available here, and Ranking Member Wyden’s (D-OR) is available here, with witness testimonies available here. More here.
FDIC to Review Proposed Rules on Regulator Use of Reputation Risk: On October 3, the Federal Deposit Insurance Corporation (FDIC) announced its Board of Directors will consider a notice of proposed rulemaking regarding the use of reputational risk by regulators. The notice follows President Trump’s August executive order “guaranteeing free banking,” and how regulators assess reputation risk could result in “politicized or unlawful debanking.” More here.
Massachusetts Hearing Reviews Bitcoin Reserve Bill: On October 7, Massachusetts State Senator Peter Durant testified before the Joint Committee on Revenue regarding his proposed Bitcoin Strategic Reserve, which would allow the state treasury to invest up to 10 percent of the Commonwealth Stabilization Fund in cryptocurrency and add seized digital assets to a reserve. More here.
Coinbase Launches Staking Services for New York Residents Following State Approval: On October 8, Coinbase announced that New York residents can now stake cryptocurrency assets, including Ether and Solana, following approval from state regulators, with the company crediting Governor Kathy Hochul for providing regulatory clarity. More here.
Democratic Senators Propose DeFi “Restricted List” Framework: On October 9, Democratic members of the Senate Banking Committee sent a counterproposal to Republicans that would impose Know Your Customer (KYC) rules on cryptocurrency application frontends, including non-custodial wallets, and permit the Treasury Department to create a “restricted list” for DeFi protocols deemed too risky. The proposal, introduced by Senators Mark Warner (D-VA), Ruben Gallego (D-AZ), Andy Kim (D-NJ), Raphael Warnock (D-GA), Angela Alsobrooks (D-MD), and Lisa Blunt Rochester (D-DE), would also strip protections from crypto developers and potentially penalize U.S. nationals who generate “recurring revenues” from restricted protocols. More here.
Representative Downing Introduces Bill to Codify Trump’s 401(k) Cryptocurrency Executive Order: On October 14, Representative Troy Downing (R-MT) introduced legislation in the House Financial Services Committee to codify President Trump’s Executive Order 14330, which allows 401(k) retirement accounts to include “alternative assets.” More here.
New York City Mayor Establishes Office of Digital Assets and Blockchain Technology: On October 14, New York City Mayor Eric Adams announced the creation of the Office of Digital Assets and Blockchain Technology through executive order, appointing Moises Rendon, who has served as the city’s digital assets and blockchain policy adviser since April 2024, as head of the new office. Adams stated the initiative aims to grow the city’s economy, attract talent, expand opportunities for underbanked communities, and improve government accessibility through emerging technologies. More here.
Senate Banking Ranking Member Warren Letter to Treasury on Strengthening GENIUS Act Implementation: On October 20, Senate Banking Committee Ranking Member Elizabeth Warren (D-MA) sent a letter to Treasury Secretary Bessent urging Treasury to implement the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act with stronger safeguards for financial stability, consumer protection, national security, and anti-corruption. Senator Warren raised concerns about how the law’s “light-touch” framework could enable conflicts of interest, illicit finance, and systemic risk, as she called for Treasury to propose rules addressing corruption safeguards, anti-money-laundering (AML) gaps, Big Tech issuance risks, and inadequate capital and operational controls for stablecoin issuers. She also urged Treasury to publicly commit to avoiding any use of the Exchange Stabilization Fund or Federal Reserve emergency lending facilities to bail out stablecoins. The letter is available here.
Senator Lummis Letter to CFPB on Finalizing Open Banking Rule: On October 21, Senator Lummis (R-WY) sent a letter to Acting Consumer Financial Protection Bureau (CFPB) Director Russ Vought in support of the Personal Financial Data Rights (Open Banking) rule and for its swift finalization. Senator Lummis highlighted Section 1033 of the Dodd-Frank Act, calling for the CFPB to establish clear, consumer-driven data-sharing rules that promote innovation and preserve U.S. leadership in financial technology. She emphasized how open banking is critical to integrating digital assets by promoting competition, allowing consumers to provide their data to digital asset exchanges, and for stablecoin issuers to facilitate faster and cheaper payments. She cited Wyoming’s open banking and digital asset laws as a model for promoting innovation and financial inclusion, as she warned against large banks restricting account connectivity to digital asset exchanges. The letter is available here.
International Bodies
Abu Dhabi Regulator Prohibits Cryptocurrency Mining on Agricultural Land: On October 1, the Abu Dhabi Agriculture and Food Safety Authority (ADAFSA) announced a prohibition on using agricultural land for cryptocurrency mining operations within the emirate. Violators will face fines of 100,000 AED ($27,229), suspension of municipal services, confiscation of mining hardware, and disconnection from the electrical grid. ADAFSA stated that cryptocurrency mining activities conflict with regional sustainability policies and fall outside the scope of permitted economic uses for farmlands. More here.
European Central Bank Selects Technology Partners for Digital Euro Development: On October 2, the European Central Bank (ECB) announced framework agreements with seven technology providers to develop components for a potential digital euro, including fraud detection, risk management, secure payment information exchange, and software development. The ECB clarified that final decisions on launching the central bank digital currency (CBDC) will only occur after the Digital Euro Regulation is adopted, with framework agreements including no current payment obligations and safeguards allowing scope adjustments based on legislative changes. More here.
No Companies Apply for Vietnam Crypto Pilot Program Amid Regulatory Barriers: On October 5, Vietnam’s Deputy Minister of Finance Nguyen Duc Chi confirmed that no companies have applied to participate in the country’s five-year digital asset trading pilot program despite the government launching Resolution 05/2025 nearly a month prior. Licensed crypto asset service providers must maintain minimum capital of 10 trillion dong ($379 million), comparable to full commercial bank requirements and significantly higher than Singapore, Hong Kong, and Japan’s $1 to 5 million thresholds. Vietnam’s regulations also prohibit the issuance of crypto assets backed by fiat currencies or securities, excluding most stablecoins, including USDT and USDC, as well as tokenized securities. More here.
EU Regulator Seeks Expanded Authority Over Cryptocurrency Exchange Oversight: On October 6, European Securities and Markets Authority (ESMA) Chair Verena Ross confirmed that the European Commission is developing plans to transfer supervision of cryptocurrency exchanges and other digital asset operators from national regulators to ESMA’s centralized authority. Ross said that the reform would address market fragmentation and support a more integrated capital market across the EU, as the current Markets in Crypto-Assets (MiCA) framework allows national authorities to issue licenses independently. More here.
Dubai Regulator Takes Action Against Nineteen Unlicensed Crypto Operators: On October 7, Dubai’s Virtual Assets Regulatory Authority (VARA) issued financial penalties and cease-and-desist orders against 19 companies operating without licenses. The companies were penalized for offering cryptocurrency services without approval and violating VARA’s marketing rules. VARA’s Enforcement Division stated the actions reinforce the regulator’s mandate to ensure only firms meeting the highest compliance and governance standards operate in Dubai’s digital asset ecosystem. More here.
Kazakhstan Shuts 130 Crypto Platforms and Seizes $17 Million Over Illicit Activity: On October 8, Kazakhstan’s Financial Monitoring Agency (AFM) shut down 130 cryptocurrency platforms involved in money laundering schemes in 2025 and seized $16.7 million in various cryptocurrencies linked to illegal operations. As part of efforts to curb illicit financial activity, Kazakhstan is introducing mandatory Individual Identification Number verification for all bank card top-ups exceeding 500,000 tenge ($925). More here.
UK Removes Ban on Cryptocurrency Exchange-Traded Notes: On October 8, the UK Financial Conduct Authority (FCA) announced the removal of its ban on cryptocurrency exchange-traded notes (ETNs), allowing retail investors to access these products via FCA-approved exchanges. FCA Executive Director of Payments and Digital Finance David Geale stated that the market has evolved since the original ban, with products becoming more mainstream and better understood, prompting the decision to provide consumers with additional investment options while maintaining protective measures. The ban is being lifted alongside new tax treatment policies that will allow crypto ETNs to be held in registered pension schemes from October 8 and in Stocks & Shares Individual Savings Accounts from April 2026, while the FCA’s ban on retail access to cryptocurrency derivatives remains in place. More here.
Uganda Launches CBDC Pilot as Kenya’s Crypto Bill Clears Final Stage: On October 9, Uganda launched a CBDC pilot as part of a broader tokenization initiative, with blockchain infrastructure company Global Settlement Network partnering with Ugandan developer Diacente Group to tokenize $5.5 billion in real-world assets. The launch coincides with Kenya’s virtual asset service provider bill passing through parliament, awaiting President William Ruto’s signature to become law. More here.
Bank of France Calls for Centralized EU Crypto Oversight Under ESMA: On October 9, Bank of France Governor François Villeroy de Galhau stated at the ACPR-AMF Fintech Forum in Paris that the European Securities and Markets Authority (ESMA) should receive direct oversight authority for major cryptocurrency firms under the Markets in Crypto-Assets (MiCA) framework to ensure consistent rule application and reduce regulatory arbitrage. More here.
South Korea Expands Crypto Asset Seizures to Include Cold Wallets: On October 10, South Korea’s National Tax Service (NTS) announced it will conduct home searches and confiscate cold wallet devices and hard drives from tax delinquents suspected of concealing cryptocurrency assets offline. Under South Korea’s National Tax Collection Act, the NTS can request account information from local exchanges, freeze accounts, and liquidate assets at market value to cover unpaid taxes. More here.
UK Financial Regulator Establishes Framework for Fund Tokenization on Blockchain: On October 14, the UK FCA announced a roadmap to enable asset managers to adopt blockchain technology for fund tokenization, aiming to provide regulatory clarity and promote innovation in asset management. FCA Executive Director of Markets Simon Walls stated that tokenization could drive fundamental changes in asset management by increasing competition, reducing costs, and broadening investment access to private markets and infrastructure. The framework includes guidance for operating tokenized fund registers under existing rules, simplified dealing processes for both traditional and tokenized fund units, and blockchain-based settlement capabilities, with the FCA committing to explore regulatory evolution as tokenization adoption expands. More here.
Japan Develops Regulations to Address Cryptocurrency Insider Trading: On October 14, Japan’s Securities and Exchange Surveillance Commission is preparing to introduce regulations prohibiting cryptocurrency insider trading, with authority to investigate suspicious activity and impose fines based on profits from illegal trades. The Financial Services Agency plans to finalize regulatory framework details through a working group by the end of 2025, with an amendment to the Financial Instruments and Exchange Act proposed in 2026, addressing the current absence of insider trading rules covering cryptocurrency and the Japan Virtual and Crypto Assets Exchange Association’s lack of monitoring systems for suspicious trading. More here.
Bank of England Clarifies Stablecoin Holding Limits as Temporary Measure: On October 15, Bank of England Deputy Governor Sarah Breeden clarified that proposed restrictions on stablecoin holdings and transaction sizes will be temporary measures designed to ensure financial stability during the transition period. The Bank of England plans to launch a consultation before year-end seeking feedback on limit levels and implementation pathways. More here.
Swiss Regulator Files Complaint Against FIFA’s NFT: On October 17, Switzerland’s Gambling Supervisory Authority (GESPA) filed a complaint against FIFA’s non-fungible token (NFT) platform FIFA Collect, alleging it operates as an unlicensed gambling provider under Swiss regulations. GESPA stated that platform competitions featuring user rewards such as airdrop campaigns and challenges constitute gambling due to the element of chance in claiming rewards, with participation requiring monetary stakes and prize distribution determined by random draws or similar procedures. More here.
UK Tax Authority Increases Cryptocurrency Compliance Letters: On October 18, HM Revenue & Customs (HMRC) issued nearly 65,000 warning letters to cryptocurrency investors in the 2024-25 tax year, more than double the previous year’s 27,700 letters. The “nudge letters” are designed to prompt investors to voluntarily correct tax filings before formal investigations begin. More here.
Bolivia’s President-Elect Plans Blockchain Reform: On October 20, Bolivian President-elect Rodrigo Paz plans to implement blockchain technology and smart contracts in public procurement processes to address government corruption. Paz’s official government platform includes proposals to use blockchain technologies to automate state purchasing contract processes and remove discretionary decision-making, while also establishing a program allowing citizens to declare cryptocurrency assets into a new foreign-exchange stabilization fund designed to steady the currency and finance essential imports. More here.
British Columbia Implements Permanent Ban on New Cryptocurrency Mining Grid Connections: On October 20, British Columbia announced a permanent prohibition on new cryptocurrency mining operations connecting to its electricity grid as part of broader measures addressing electricity demand management. The announcement cited cryptocurrency mining’s high electricity consumption relative to local job creation and tax revenue generation as rationale for the ban, while also implementing caps on electricity availability for AI and data centers with a competitive allocation process launching in January 2026. More here.
Thai Regulators Raid Alleged World Iris Scanning Site and Arrest Suspects: On October 24, Thailand’s Securities and Exchange Commission (SEC) conducted a joint operation with the Cyber Crime Investigation Bureau to raid an iris scanning location allegedly connected to World’s WLD token exchange services, announcing the arrest of suspects for potentially operating without required licenses under local digital asset laws. More here.
African Countries Develop Cryptocurrency Regulatory Frameworks Amid Growing Adoption: On October 25, the Bank of Ghana Governor announced that cryptocurrency regulations will be implemented by the end of 2025, following draft guidelines published last year. Ten African countries have developed or are developing specific legal frameworks for digital assets as lawmakers respond to increasing cryptocurrency usage and seek to balance industry-favorable conditions with consumer protection requirements. More here.
Japan Launches First Yen-Backed Stablecoin JPYC: On October 27, Tokyo-based fintech firm JPYC launched Japan’s first yen-backed stablecoin, backed one-to-one by bank deposits and government bonds with a 1:1 exchange rate to the yen. JPYC President Noriyoshi Okabe stated the stablecoin has attracted interest from seven companies planning to incorporate it into their services, with the company targeting an issuance balance of 10 trillion yen over three years. More here.
Australian Regulator Expands Digital Asset Oversight Framework Ahead of New Licensing Requirements: On October 29, the Australian Securities and Investments Commission (ASIC) detailed expanded expectations for digital asset regulation, stating that many digital assets already meet the definition of financial products under the Corporations Act 2001 and require licensing. ASIC’s proposed revision to Information Sheet 225 broadens the scope from “crypto assets” to “digital assets” and introduces 13 practical examples explaining when tokens, staking programs, and tokenized products require financial services licenses, with fiat-backed stablecoins potentially treated as non-cash payment facilities and wrapped tokens as derivatives. More here.
Basel Committee Reviews Bank Cryptocurrency Asset Rules Amid Market Changes: On October 31, it was announced that the Basel Committee on Banking Supervision is preparing to revise its 2022 guidance on bank cryptocurrency exposure next year, following concerns that existing standards treat stablecoins with the same capital charges as higher-risk assets like Bitcoin and Ether. The Committee recently held discussions about previous rules, which the U.S., UK, and EU have not fully implemented, with revision needs arising from rapid stablecoin growth and U.S. regulation through the GENIUS Act. Market participants have criticized the equivalence between regulated, asset-backed stablecoins and riskier crypto assets, while the EU’s Markets in Crypto-Assets Regulation framework already allows stablecoins to receive capital treatment equivalent to their backing assets. More here.