Tag Archives: regulatory

Why crypto surged while stocks fell: The regulatory breakthrough changing everything

Why crypto surged while stocks fell: The regulatory breakthrough changing everything
Market activity today unfolded under heavy geopolitical tension, with the Iran conflict driving volatility across global risk assets. Investors traded in the fog of war, where headlines about supply disruptions triggered rapid portfolio shifts. Asian equities weakened, with Japanese and Hong Kong futures pointing lower, while Australian stocks fell more than one per cent. US S&P 500 contracts slid 0.9 per cent as uncertainty mounted. Oil extended gains for a second session on Middle East supply concerns, pushing inflation expectations higher. Bond markets reacted with the 10-year Treasury yield reaching 4.16 per cent. Gold held near US$5,192 per ounce, though its stability reflected caution more than conviction. Traditional markets moved in lockstep with conflict narratives.

Against this stress, cryptocurrency gained 0.64 per cent, lifting the total market cap to US$2.39T. Crypto showed a negative 37 per cent correlation with the S&P 500 and a negative 53 per cent with gold, signalling decoupling from traditional flows. Digital assets responded to regulatory progress and institutional validation instead. A White House announcement on March 11 ended the prior administration’s war on crypto and flagged a potential market bill by April. This shift reduced a major overhang on institutional participation. Markets priced in higher odds of favourable US legislation, creating a fundamental tailwind that outweighed geopolitical headwinds.

Institutional moves reinforced this optimism. Mastercard expanded its Crypto Partner Program to include Ripple and Binance, validating real-world use cases for payments and custody. Such partnerships lower adoption barriers for enterprise clients. Speculative capital also rotated into higher-beta altcoins. The Altcoin Season Index rose 2.56 per cent, while low-cap tokens like Origin Protocol saw volumes surge over 2200 per cent without project-specific news. Excess liquidity chased asymmetric opportunities in a more permissive regulatory environment. Institutional groundwork and retail speculation combined to create self-reinforcing momentum that kept crypto buoyant as equities faltered.

Technical structure now guides the near-term path. The market faces resistance at the 23.6 per cent Fibonacci level of US$2.4T. A decisive break above, especially on a weekly close, could target US$2.46T. Failure to hold US$2.33T, the 50 per cent Fibonacci level, might renew selling pressure and trap prices in consolidation. These levels reflect collective psychology around regulatory clarity as a structural shift. The Fibonacci framework gives traders a common language for managing risk at this inflection.

Negative correlations with traditional assets reveal an important insight. Crypto’s move appears to be dollar- and liquidity-driven rather than conventional risk-on. When equities fall amid war fears, and gold holds steady while crypto rises amid regulatory news, maturity is evolving. Digital assets increasingly respond to their own catalysts, especially policy developments affecting compliance and institutional access. This does not make crypto immune to macro shocks, but the market now weighs regulatory signals more heavily than short-term geopolitical noise. The White House pivot represents the most significant such signal in years.

Sustainability depends on follow-through. Concrete legislative progress by mid-April is needed to maintain bullish momentum. Traders should watch ETF flows and whether altcoin volume persists. The next US CPI release could reintroduce inflation concerns affecting all risk assets. The current setup favours cautious optimism. Regulatory momentum provides a foundation, partnerships add utility, and technical levels offer clear risk parameters. The key question is whether altcoin momentum holds if Bitcoin fails to break US$2.4T. A rejection might trigger consolidation without invalidating the broader regulatory thesis.

I view this regulatory inflection as a structural game-changer. Years of ambiguous policy discounted digital asset valuations, especially for institutional capital needing compliance clarity. The White House’s commitment to an April bill begins removing that discount. This does not guarantee immediate adoption, but it shifts the probabilities toward greater integration with traditional finance. Mastercard partnerships exemplify this integration. When payment giants embrace crypto rails, they build infrastructure lasting beyond any news cycle. Speculative altcoin rotations reflect a market testing new permissiveness, typical in early regulatory transitions where uncertainty drives broad experimentation.

Negative correlations with equities and gold support crypto maturing into a distinct asset class. Past crises saw digital assets move with conventional risk flows. Today’s divergence suggests a nuanced reality where investors separate geopolitical risk from regulatory risk. When regulatory conditions improve while geopolitical tensions worsen, decoupling emerges. This does not promise permanent macro insulation, but policy developments can outweigh short-term geopolitical noise in determining direction.

In conclusion, traditional assets grappled with war-related uncertainty, while crypto advanced amid regulatory clarity. The 0.64 per cent gain to US$2.39T, with negative correlations to equities and gold, reflects a market responding to its own catalysts. Policy shifts, institutional partnerships, and speculative rotation created a bullish impulse now testing technical levels. A break above US$2.4T could open the path to US$2.46T, while a break below US$2.33T signals consolidation. The broader narrative remains cautiously optimistic. Regulatory momentum supports sustained institutional adoption even as short-term trading stays headline-sensitive. The coming weeks will show whether Washington’s promises become legislative reality, but crypto’s divergence underscores its evolving role in the global financial system.

 

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

www.anndy.com
j j j

Building a Crypto Hub on Quicksand: The UK’s Regulatory Contradictions

Building a Crypto Hub on Quicksand: The UK’s Regulatory Contradictions

On paper, Britain wants to be a global center for digital-asset innovation. In practice, the way the government and the Financial Conduct Authority (FCA) are building the rulebook could smother the very ecosystem they claim to champion. The ambition is real. The execution, so far, is wobblier.

The Draft Statutory Instrument (SI) on crypto assets is a genuine milestone. It signals a desire to move past the reactive, enforcement-first posture that dogged the U.S. for years. Instead of waiting for firms to implode—or to break rules—the UK is attempting a structured, rules-based approach from the outset. That’s commendable. But good intentions don’t outweigh bad design or halting rollout.

Consider retail access. In August, the FCA green-lit crypto exchange-traded notes (ETNs) for UK investors—a cautious but welcome gesture toward mainstream exposure. Yet it still bars crypto exchange-traded funds (ETFs), even as the U.S., Canada, and parts of Europe have normalized them. The split is hard to justify. If ETNs are tolerable for retail, why not ETFs, which typically offer comparable exposure with greater transparency and liquidity? The inconsistency reads less like risk-based regulation and more like institutional inertia, and the mixed signals feed skepticism about what, exactly, the UK is trying to protect.

Then there’s decentralized finance. DeFi is no longer a boutique experiment; it’s a rapidly scaling pillar of the crypto economy, with billions locked across protocols that operate without central intermediaries. Yet the UK has drawn no clear line between DeFi and regulated centralized finance (CeFi). Without definitions and boundaries, firms don’t know when they fall under FCA oversight. That uncertainty is toxic to investment and hiring: startups hesitate to build, investors hesitate to allocate, and talent gravitates to jurisdictions where rules—strict or not—are at least legible.

The compliance burden compounds the problem. Take the proposal for automated tax reporting to HMRC. As an anti-evasion tool, it sounds sensible. But crypto’s founding ethos—privacy and user sovereignty—doesn’t vanish at the first sight of a spreadsheet. Requiring granular, near-real-time reporting from exchanges is likely to push privacy-conscious users offshore to less transparent venues, ironically heightening systemic risk. And the costs won’t be shared evenly: global incumbents can absorb new teams and bespoke systems; a London-based DeFi protocol or early-stage wallet provider may find the overhead prohibitive. Regulation should widen the field, not entrench the biggest players.

To its credit, the FCA has not tried to do this in a vacuum. Its Crypto Roadmap aims to phase in rules, consult widely, and avoid the blunt instruments seen elsewhere. The emphasis on operational resilience and anti-financial-crime controls is prudent. Crypto markets remain vulnerable to hacks, scams, and manipulation; insisting on basic hygiene borrowed from traditional finance helps professionalize an industry that has too often resembled the Wild West.

But professionalism isn’t the same as suffocation. The missing word in much of the current approach is proportionality. Not every firm presents the same risk profile. A non-custodial wallet developer should not face the capital and control obligations of a centralized exchange holding billions in customer assets. The Draft SI’s trajectory suggests a one-size-fits-all mindset that will send builders underground—or abroad.

Founders in the UK ecosystem are cautiously optimistic, but their optimism is conditional. They want regulation—clear, predictable rules calibrated to the realities of open-source software, smart contracts, and programmable finance. What they fear is a regime that looks progressive in speeches and consultation papers but functions, day to day, as a bureaucratic moat—shielding legacy finance while feigning enthusiasm for disruption.

Meanwhile, the global race is already on. After stumbling, the U.S. regained momentum with approvals of spot Bitcoin ETFs. The EU’s MiCA, for all its complexity, offers a comprehensive rulebook firms can plan around. Singapore and Switzerland—traditionally conservative—have cut discernible paths for digital-asset businesses. If the UK keeps moving in half-steps, opening one door while bolting the next three, it will drift from contender to spectator.

What’s needed now is less process theater and more decisions. Finalize the SI with workable definitions for DeFi. Rationalize the treatment of listed crypto products so ETFs and ETNs aren’t arbitrarily split. Build tiered, risk-scaled obligations so small non-custodial developers aren’t treated like systemically important custodians. And use the FCA’s Roadmap to publish guidance in gray areas quickly, rather than waiting for perfect legislation to catch up with imperfect reality.

Regulation that ignores how the industry actually operates will fail, however noble the preamble.

The UK has advantages others envy: deep financial expertise, credible courts, and a tech-savvy public ready to participate in a digital economy. But advantages are not entitlements. If the government and the FCA truly want a crypto hub, they must stop treating rules as barricades and start treating them as infrastructure—built thoughtfully, collaboratively, and with an eye on where finance is heading, not where it’s been. Otherwise, the next wave of financial innovation will break—just not on British shores.

 

Source: https://intpolicydigest.org/building-a-crypto-hub-on-quicksand-the-uk-s-regulatory-contradictions/

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

www.anndy.com
j j j

Crypto Isn’t The Real Threat – It’s Regulatory Chaos

Crypto Isn’t The Real Threat – It’s Regulatory Chaos

The Crypto Crossroads: How Fragmented Regulation Threatens A Global Financial Revolution

Last spring, I was watching a young entrepreneur named Chinedu send $500 to his family in rural countryside using Bitcoin. “This is how I survive,” he said, tapping his phone. “Traditional banks charge too much, and our currency is falling daily.” Just weeks later, I was told he was detained by authorities for operating an unlicensed crypto exchange.

This duality, crypto as both lifeline and liability, defines the global debate.

The Surging Adoption: A Silent Revolution

Between 2023 and 2025, the number of people globally using cryptocurrency has significantly increased. In 2023, there are approximately 420 million people who own cryptocurrency. In 2024, this number grew to 562 million people, and in 2025, the total is estimated to be around 580 million users, potentially reaching as high as 861 million by other reports.

This explosive growth has been driven not by speculative frenzy alone, but by real-world utility: remittances, inflation hedging, and access to financial services for the unbanked. In 2024 alone, global crypto adoption surged by 172%, with India, Nigeria, and Indonesia leading the charge.

  • The United States and European Union have seen steady growth, but the most dramatic shifts are happening in the Global South.
  • Nigeria’s 33 million crypto users, the highest per capita in Africa, rely on digital assets to bypass a collapsing currency and banking system.
  • In Vietnam, peer-to-peer trading volume has exploded as citizens use Bitcoin to shield themselves from inflation and currency controls.
  • Even in India, where a 30% tax on crypto gains and 1% TDS have created regulatory uncertainty, over 100 million people trade digital assets, a testament to the demand for financial sovereignty.

The numbers tell a clear story: crypto is no longer a fringe phenomenon. It’s a global movement reshaping how people store value, send money, and access financial services. Yet for every success story, there’s a cautionary tale.

The Regulatory Maze: Progress Amidst Paralysis

A recent report analyzing 24 jurisdictions, representing 70% of global crypto exposure, found that 70% made regulatory progress in 2025. But “progress” is a relative term.

While Switzerland’s “Crypto Valley” offers clear frameworks for blockchain businesses, and the UAE’s VARA licenses over 100 firms, the United States remains a fractured landscape where the SEC, CFTC, and state regulators each stake competing claims of jurisdiction. In China, a total ban has driven crypto underground, while El Salvador’s bold Bitcoin-as-legal-tender experiment has faced IMF criticism for its economic risks.

The European Union’s Markets in Crypto-Assets (MiCA) regulation, implemented in 2024, has created a unified framework for stablecoins and asset-referenced tokens. This has attracted firms like Coinbase and Binance to establish European headquarters, but critics argue MiCA’s strict compliance requirements stifle innovation. Meanwhile, the U.S. remains stuck in regulatory limbo. The SEC’s aggressive stance against crypto exchanges has led to lawsuits against giants like Coinbase and Binance, while the CFTC claims authority over Bitcoin as a commodity. This ambiguity has created a “regulatory chill,” where startups avoid the U.S. market entirely.

The UAE, however, has emerged as a model for balanced regulation. Dubai’s Virtual Assets Regulatory Authority (VARA) requires strict AML checks, licensing, and transparency, yet also offers tax incentives and clear guidelines for businesses. As a result, over 100 crypto firms now operate in Dubai, creating thousands of jobs and positioning the UAE as a global crypto hub. This success proves that regulation doesn’t have to mean restriction; it can foster innovation while protecting consumers.

The Double-Edged Sword: Inclusion vs. Instability

Critics argue crypto fuels crime, but data tells a different story: the UN estimates less than 1% of illicit finance involves cryptocurrency, compared to 2-5% in traditional banking. The real danger isn’t the technology, it’s the lack of coherent regulation. When countries ban crypto outright, they push users into unregulated spaces where scams and fraud thrive. When they regulate too strictly, they stifle innovation.

El Salvador’s 2021 Bitcoin law promised financial inclusion for the unbanked, but today only 12% of Salvadorans regularly use it. The government’s Chivo wallet has been plagued by security breaches, and the IMF warns that Bitcoin’s volatility threatens economic stability. Salvadorans still rely on crypto for remittances; 80% of the population receives money from abroad, and traditional remittance fees can exceed 10%.

In Nigeria, the Central Bank’s ambiguous stance has created a gray zone where legitimate businesses operate in fear of sudden crackdowns. While crypto adoption has soared, the lack of clear regulations leaves users vulnerable to scams. A report found that 35% of crypto-related fraud cases stemmed from unregulated exchanges, a direct consequence of regulatory uncertainty.

Conversely, countries like Singapore and Switzerland have struck a balance. Singapore’s Payment Services Act requires crypto exchanges to register with the Monetary Authority, ensuring consumer protection while fostering innovation. Switzerland’s “Crypto Valley” in Zug offers clear tax guidelines and business-friendly policies, attracting over 1,000 blockchain companies. These nations prove that regulation can be both rigorous and enabling.

The Path Forward: Toward Harmonized Global Standards

The path forward lies in global cooperation. The Financial Action Task Force (FATF) has issued guidelines for crypto regulation, but adoption is inconsistent. Meanwhile, the EU’s MiCA framework and the U.S.’s push for stablecoin legislation show promise. As PwC’s 2025 report notes, “countries that develop balanced regulatory frameworks will lead the next wave of financial innovation.”

Stablecoins, digital assets pegged to fiat currencies, are becoming a critical focus. The U.S., UK, and several Asian countries are developing regulatory frameworks for stablecoins, recognizing their potential to revolutionize payments while mitigating volatility risks.

The EU’s MiCA regulation has already set standards for stablecoin issuers, requiring reserves to be fully backed and audited. This could pave the way for stablecoins to become a bridge between traditional finance and crypto.

The U.S. remains a key player in this evolution. With Bitcoin ETFs approved in 2024 and growing bipartisan support for clearer regulations, Washington has finally established a coherent framework of crypto-friendly legislation. But without coordination with global partners, the U.S. risks becoming a regulatory outlier, driving innovation overseas while losing its competitive edge.

My Perspective: The Real Threat Isn’t Crypto, It’s Regulatory Chaos

Having been involved in this space for over a decade, I’ve seen crypto’s potential to empower the unbanked and disrupt monopolistic financial systems. I’ve also seen how regulatory chaos creates winners and losers. In India, a 30% tax on crypto gains has driven traders to offshore exchanges, while in Nigeria, regulatory ambiguity has left users vulnerable to scams. Meanwhile, the UAE’s clear rules have attracted global firms, creating jobs and economic growth.

The solution isn’t bans or blind enthusiasm, it’s collaboration. The global crypto market cap reached $1.2 trillion in early 2024, rebounding from the volatility of 2022. As of the time of writing, the current market cap is $4.05 trillion. This is 3 to 4 times more than the previous year. Also, bear this in mind, I think this is not the peak of this current bull run. The figures could double at their peak. In my humble opinion, this isn’t a bubble waiting to burst; it’s a foundational shift in how money works.

Consider this: 40% of the world’s population remains unbanked. For them, crypto isn’t a speculative asset; it’s a lifeline. In Venezuela, citizens use Bitcoin to buy groceries as the bolivar collapses. In Kenya, mobile crypto platforms enable microloans for small businesses. In the Philippines, remittances sent via crypto cost 80% less than traditional channels. These aren’t fringe cases, they’re the future of finance.

Of course, for every success story, there’s a cautionary tale. China’s total ban has driven mining operations underground, creating environmental and security risks. El Salvador’s Bitcoin experiment has strained public finances in 2022, with the government losing hundreds of millions on its Bitcoin holdings. These are the past, its value has rocketed. But will this happen again? These issues aren’t due to crypto itself; they’re due to poor implementation and lack of foresight.

The Choice Before Us

The crypto revolution isn’t coming, it’s here. The question isn’t whether we’ll embrace it, but how we’ll govern it. As the world watches India, Nigeria, and the UAE navigate this new landscape, one truth is clear: the countries that get regulation right will reap the rewards. The rest will be left behind.

Global adoption is growing at an unprecedented pace, but fragmented regulation is the real threat. When governments prioritize fear over innovation, they sacrifice economic opportunity for their citizens. When they embrace collaboration and balance, they unlock a future where finance is inclusive, efficient, and resilient.

“Crypto isn’t the problem. The problem is when governments don’t understand it.”

In 2025, the world has a choice: to let regulatory chaos stifle a financial revolution, or to harness its potential for the benefit of all. The time for decisive action is now.

 

Source: https://www.benzinga.com/markets/cryptocurrency/25/09/47787445/crypto-isnt-the-real-threat-its-regulatory-chaos

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

www.anndy.com
j j j