San Francisco-based startup Waterlily has raised $7 million in seed funding to expand its AI-driven platform for long-term care planning. Founded by Lily Vittayarukskul, the company helps families and financial advisors predict care costs and create tailored financial strategies. Using machine learning and data from government and insurance sources, Waterlily provides personalised recommendations on funding options, such as life insurance and long-term care policies.
Waterlily’s technology was inspired by Vittayarukskul’s personal experience of caring for her aunt, which exposed the financial and emotional strain of long-term care. The platform’s predictive AI can be used for individuals over 40, offering insights into when and how they may need care. The startup already serves major insurance carriers, including Prudential, and hundreds of independent advisors.
With its latest funding round, Waterlily plans to enhance its AI models, expand its team, and strengthen its partnerships. The company is also exploring international expansion to markets such as the UK and Canada, aiming to bridge the gap in long-term care planning and ensure more families are prepared for the future.
Vodafone has achieved a world first by making a video call via satellite using a standard smartphone, marking a significant breakthrough in mobile technology. The call, made from the remote Welsh mountains where there was no network signal, was received by CEO Margherita Della Valle. Vodafone used AST SpaceMobile’s BlueBird satellites, which provide speeds of up to 120 megabits per second, to enable the video call, which included voice, text, and data transmission.
This satellite technology is part of Vodafone’s broader plan to expand satellite connectivity across Europe by 2026. The company aims to offer users a full mobile experience, including video calls, even in areas where traditional network coverage is unavailable. Vodafone is also an investor in AST SpaceMobile, alongside major companies like AT&T, Verizon, and Google.
The race to deploy satellite services is heating up, with competitors like Apple, T-Mobile, and SpaceX already working on satellite-based connectivity. Apple’s iPhones, starting from the iPhone 14, offer satellite texting for emergency services and location sharing. Other companies are testing similar services, with plans for voice and data connectivity in the future.
British astronaut Tim Peake, who attended the launch of Vodafone’s space-to-land gateway, hailed the ability to connect via satellite as an ‘incredible breakthrough.’ Peake, who spent six months aboard the International Space Station, highlighted the importance of staying connected while in remote environments and expressed interest in future space missions.
Paul McCartney has raised concerns about AI potentially ‘ripping off’ artists, urging the British government to ensure that upcoming copyright reforms protect creative industries. In a recent BBC interview, McCartney warned that without proper protections, only tech giants would benefit from AI’s ability to produce content using works created by artists without compensating the original creators.
The music and film industries are facing legal and ethical challenges around AI, as models can generate content based on existing works without paying for the rights to use the original material. In response, the UK government has proposed a system where artists can license their works for AI training, though it also suggests exceptions for AI developers using unreserved rights materials at scale.
McCartney emphasised that while AI has its merits, it should not be used to exploit artists. He highlighted the risk that young creators could lose control over their works, with profits going to tech companies rather than the artists themselves. ‘It should be the person who created it’ who benefits, he said, urging that artists’ rights be prioritised in the evolving landscape of AI.
The UK government has demanded urgent action from major social media platforms to remove violent and extremist content following the Southport killings. Home Secretary Yvette Cooper criticised the ease with which Axel Rudakubana, who murdered three children and attempted to kill ten others, accessed an al-Qaeda training manual and other violent material online. She described the availability of such content as “unacceptable” and called for immediate action.
Rudakubana, jailed last week for his crimes, had reportedly used techniques from the manual during the attack and watched graphic footage of a similar incident before carrying it out. While platforms like YouTube and TikTok are expected to comply with the UK‘s Online Safety Act when it comes into force in March, Cooper argued that companies have a ‘moral responsibility’ to act now rather than waiting for legal enforcement.
The Southport attack has intensified scrutiny on gaps in counter-terrorism measures and the role of online content in fostering extremism. The government has announced a public inquiry into missed opportunities to intervene, revealing that Rudakubana had been referred to the Prevent programme multiple times. Cooper’s call for immediate action underscores the urgent need to prevent further tragedies linked to online extremism.
The UK‘s Competition and Markets Authority has appointed former Amazon executive Doug Gurr as its interim chairman, signalling the government’s push to boost economic growth and support the tech sector. Gurr, who brings extensive experience at Amazon, including leading the company’s UK and China operations, will guide the CMA as it fosters competition in industries such as cloud services and AI. The move aligns with the UK’s broader strategy to streamline regulations and position itself as a pro-business nation.
Gurr’s appointment comes amid a critical phase in the CMA’s investigation into the domestic cloud services market, which has been scrutinising Amazon’s dominant position. While Gurr will serve in an interim role, the government hopes his commercial background will help drive pro-business decisions that stimulate growth. This marks a shift from the previous chair, Marcus Bokkerink, whose tenure was shorter than expected, possibly due to dissatisfaction among government officials.
Industry experts note that Gurr’s appointment is timely, as the CMA is stepping up its oversight of Big Tech, particularly with the expanded powers under the Digital Markets, Competition, and Consumers Act. Critics and lobby groups like the Open Cloud Coalition closely watch how the CMA will handle its regulatory responsibilities, particularly in the cloud services sector, where Amazon holds a significant market share. They urge the CMA to maintain a strong stance on promoting fairness and competition.
As the CMA navigates its investigations and enforces new rules, stakeholders are keen to see how Gurr’s leadership will shape the future of competition regulation in the UK. The outcome could have far-reaching implications for businesses and consumers, particularly in the rapidly evolving tech landscape.
Marcus Bokkerink has been removed from his position as chair of the Competition and Markets Authority (CMA) by the UK government, marking a shift in regulatory practices aimed at boosting economic growth. The CMA, a key agency overseeing mergers and competition, had recently paused the high-profile Microsoft-Activision Blizzard merger, showcasing its regulatory power. Bokkerink, appointed in 2022, was expected to serve a five-year term but will now step down as part of the government’s effort to realign regulatory bodies with its economic priorities.
This decision reflects a broader governmental push to reduce barriers to economic expansion. Prime Minister Keir Starmer, Chancellor Rachel Reeves, and Business Secretary Jonathan Reynolds recently sent a letter to several regulators, including the CMA, urging them to prioritize growth. Government insiders have suggested that the move signals a serious commitment to reshaping the regulatory environment to encourage investment and economic development.
The removal of Bokkerink, a former senior partner at Boston Consulting Group, comes as the government continues to focus on attracting international investment, with key figures like Reeves and Reynolds attending the World Economic Forum in Davos to further this goal. The government’s efforts to reshape regulatory culture align with its broader strategy to make economic growth the country’s top priority.
UK citizens will soon be able to carry essential documents, such as their passport, driving licence, and birth certificates, in a digital wallet on their smartphones. This plan was unveiled by Peter Kyle, the Secretary of State for Science, Innovation and Technology, as part of a broader initiative to streamline interactions with government services. The digital wallet, set to launch in June, aims to simplify tasks like booking appointments and managing government communications.
Initially, the digital wallet will hold a driving licence and a veteran card, with plans to add other documents like student loans, vehicle tax, and benefits. The government is also working with the Home Office to include digital passports, although these will still exist alongside physical versions. The app will be linked to an individual’s ID and could be used for various tasks, such as sharing certification or claiming welfare discounts.
Security and privacy concerns have been addressed, with recovery systems in place for lost phones and strong data protection measures. Kyle emphasised that the app complies with current data laws and features like facial recognition would enhance security. He also reassured that while the system will be convenient for smartphone users, efforts will be made to ensure those without internet access aren’t left behind.
The technology, developed in the six months since Labour took power, is part of a push to modernise government services. Kyle believes the new digital approach will help create a more efficient and user-friendly relationship between citizens and the state, transforming the public service experience.
Britain’s Competition and Markets Authority (CMA) has opened an investigation into the dominance of Apple and Google in the smartphone ecosystem. The probe will examine their operating systems, app stores, and browsers to determine whether their ‘strategic market status’ stifles competition and innovation, particularly for businesses developing content and services.
CMA Chief Executive Sarah Cardell emphasised the potential for more competitive mobile ecosystems to drive innovation and boost economic growth in the UK. Both Apple and Google defended their practices, with Apple highlighting its ecosystem’s support for jobs in Britain and Google pointing to Android’s openness as a driver of choice and affordability.
The investigation, the CMA’s second under new regulatory powers, will explore whether Apple and Google are leveraging their dominance unfairly by prioritising their apps and services or imposing restrictive terms on developers. A conclusion is expected by October 22, 2025, as Britain continues to tighten its oversight of major tech companies.
Gloucestershire is poised to benefit significantly from the UK government’s push to expand AI development. Prime Minister Rishi Sunak’s AI Opportunities Action Plan, backed by leading tech firms pledging £14 billion in funding, is expected to create over 13,000 jobs and stimulate economic growth. The county, home to the government intelligence hub GCHQ, is uniquely positioned to leverage this investment, with major developments like Cheltenham’s Golden Valley cyber park and the Minster Exchange project at the forefront of the initiative.
Local experts and educators are optimistic about Gloucestershire’s role in AI advancement. Neil Smith, Managing Director of Reform IT, highlighted the region’s potential to develop talent and establish itself as a centre of excellence for AI development. Institutions such as the University of Gloucestershire and Berkeley Green UTC are already offering specialist courses in AI and cyber security. Gareth Lister, an educator, emphasised the need to integrate AI programming, cloud computing, and cybersecurity more prominently into school curriculums to prepare young people for emerging opportunities.
Dr Will Sayers, head of the University of Gloucestershire’s School for Computing, believes the county’s well-established cyber industry is a significant advantage. He pointed to the potential for local companies to form partnerships and capitalise on the government’s AI investment. With the growing focus on developing skilled talent and fostering innovation, Gloucestershire is on track to become a key player in the UK’s AI and cyber sectors.
Blockchain and cryptocurrencies: transformative forces in modern economies
Blockchain is a digital ledger technology that records transactions securely, transparently, and immutable. It functions as a decentralised database, distributed across a network of computers, where data is stored in blocks linked together in chronological order. Each block contains a set of transactions, a timestamp, and a unique cryptographic hash that connects it to the previous block, forming a continuous chain.
The decentralised nature of blockchain means that no single entity has control over the data, and all participants in the network have access to the same version of the ledger. This structure ensures that transactions are tamper-proof, as altering any block would require changing all subsequent blocks and gaining consensus from the majority of the network. Cryptographic techniques and consensus mechanisms, such as proof of work or proof of stake, secure the blockchain, verifying and validating transactions without the need for a central authority.
Initially introduced as the underlying technology for Bitcoin in 2009, blockchain has since evolved to support a wide range of applications beyond cryptocurrencies. It enables smart contracts—self-executing agreements coded directly onto the blockchain—and has found applications in industries such as finance, supply chain management, healthcare, and voting systems. Blockchain’s ability to provide transparency, enhance security, and reduce the need for intermediaries has positioned it as a transformative technology with the potential to reshape the way information and value are exchanged globally. Cryptocurrency is a form of digital or virtual currency that relies on cryptography for security and operates on decentralised networks, typically powered by blockchain technology. Unlike traditional currencies issued and regulated by governments or central banks, cryptocurrencies are not controlled by any central authority, which makes them resistant to censorship and manipulation.
At its core, cryptocurrency functions as a digital medium of exchange, allowing individuals to send and receive payments directly without the need for intermediaries like banks. Transactions are recorded on a blockchain, ensuring transparency, immutability, and security. Each user has a unique digital wallet containing a private key, which grants them access to their funds, and a public key, which serves as their address for receiving payments.
Cryptocurrencies often rely on consensus mechanisms like proof of work or proof of stake to validate transactions and maintain the integrity of blockchain. Bitcoin, the first cryptocurrency, was launched by an anonymous entity known as Satoshi Nakamoto, to create a decentralised and transparent financial system. Since then, thousands of cryptocurrencies have emerged, each with its own unique features and use cases, ranging from smart contracts on Ethereum to stablecoins designed to minimise price volatility.
Cryptocurrencies can be used for various purposes, including online payments, investments, remittances, and decentralised finance. While they offer benefits such as lower transaction fees, financial sovereignty, and global accessibility, they also face challenges like regulatory uncertainty, price volatility, and scalability issues. Despite these challenges, cryptocurrencies have become a transformative force in the global economy, driving innovation and challenging traditional financial systems.
Regulation necessity
The need for cryptocurrency regulation arises from the rapid growth and widespread adoption of digital assets, which present both opportunities and risks for individuals, businesses, and governments. While cryptocurrencies offer numerous benefits, such as financial inclusion, decentralised finance, and cross-border transactions, their unique characteristics also create challenges that necessitate oversight to ensure the integrity, stability, and safety of financial systems.
One primary reason for regulation is to protect consumers and investors. The crypto market is highly volatile, with prices often experiencing extreme fluctuations. This instability exposes investors to significant risks, and the lack of oversight has led to numerous cases of fraud, scams, and Ponzi schemes. Regulation can establish safeguards, such as requiring exchanges to implement transparency, security measures, and fair practices, which help protect users from financial losses.
Another critical driver for regulation is the need to combat illicit activities. The pseudonymous nature of cryptocurrencies can make them attractive for money laundering, terrorist financing, tax evasion, and other illegal purposes. By enforcing Know Your Customer (KYC) and Anti-Money Laundering (AML) requirements, regulators can minimise these risks and ensure that digital assets are not exploited for unlawful activities.
Regulation is also necessary to enhance market stability and confidence. The crypto space has seen incidents such as exchange hacks, sudden bankruptcies, and the collapse of major projects, which have caused significant disruptions and undermined trust in the ecosystem. Regulatory frameworks can help ensure the resilience and security of the infrastructure supporting cryptocurrencies, fostering a more stable environment.
Furthermore, as cryptocurrencies increasingly integrate into the global economy, regulation is vital to maintain financial stability. Unregulated digital assets could potentially disrupt traditional economic systems, challenge monetary policies, and create systemic risks. By introducing clear rules for the interaction between cryptocurrencies and traditional finance, regulators can prevent market manipulation and mitigate risks to the broader economy.
Finally, regulatory clarity can encourage legitimacy and adoption. A well-regulated crypto market can attract institutional investors, foster innovation, and create opportunities for businesses while addressing the concerns of sceptics and governments. Clear and consistent regulatory frameworks can also ensure fair competition and enable the crypto industry to coexist with traditional financial systems.
Cryptocurrency regulation is necessary to protect users, prevent misuse, stabilise markets, safeguard economies, and promote broader adoption. Striking the right balance is essential to supporting innovation while addressing risks, enabling cryptocurrencies to realise their full potential as a transformative financial tool.
The future of crypto regulation worldwide
Global crypto regulation is a complex and evolving landscape, as governments and regulatory bodies around the world approach the issue with varying degrees of acceptance, restriction, and oversight. Cryptocurrencies, by their nature, operate on decentralised networks that transcend borders, making regional or national regulation a challenging task for policymakers. Governments worldwide are introducing rules to govern digital assets, with organisations like the International Organization of Securities Commissions (IOSCO) and the World Economic Forum (WEF) emphasising the need for consistent global standards. IOSCO has outlined 18 key recommendations for managing crypto and digital assets, while the WEF’s Pathways to the Regulation of Crypto-Assets provides an overview of recent regulatory developments and highlights the necessity of international alignment in overseeing this rapidly evolving industry.
Although regulatory discussions around crypto assets have been ongoing for years, recent crises, including the collapse of crypto-friendly banks and platforms like FTX, have heightened the urgency for clear rules. These incidents have accelerated the drive for stricter accounting and reporting standards.
Some countries have adopted pro-crypto stances, recognising the technology’s potential for economic growth and innovation. These nations often implement clear regulatory frameworks that encourage blockchain development and crypto adoption while addressing risks such as fraud, money laundering, and tax evasion. For instance, countries like Switzerland, Singapore and El Salvador have established themselves as crypto-friendly hubs by offering favourable regulatory environments that support blockchain startups and initial coin offerings (ICOs).
Conversely, other nations take a more restrictive approach, either banning cryptocurrencies outright or imposing strict controls. Many countries have implemented comprehensive bans on cryptocurrency trading and mining, citing concerns over financial stability, capital flight, and environmental impacts. Some governments are cautious about the use of cryptocurrencies in illicit activities such as money laundering and terrorism financing, leading to calls for stricter KYC and AML requirements. At the international level, organisations such as the Financial Action Task Force (FATF) have introduced guidelines aimed at harmonising cryptocurrency regulations across borders. These guidelines focus on combating financial crimes by requiring cryptocurrency exchanges and service providers to implement measures such as customer identification and transaction reporting. In addition to regulating existing cryptocurrencies, many central banks are exploring the development of Central Bank Digital Currencies (CBDCs) These government-backed digital currencies aim to provide the benefits of cryptocurrencies, such as faster payments and increased financial inclusion, while maintaining centralised control and regulatory oversight.
Overall, global cryptocurrency regulation is dynamic and fragmented, reflecting the varying priorities and perspectives of different jurisdictions. While some countries embrace cryptocurrencies as tools for innovation and financial empowerment, others prioritise control and risk mitigation. The future of crypto regulation is likely to involve a blend of international cooperation and national-level policymaking, as regulators strive to strike a balance between fostering innovation and addressing the challenges posed by this transformative technology.
Let us examine a few examples of regulations.
US cryptocurrency regulation progress
The United States has made slow but steady progress toward establishing a regulatory framework for cryptocurrencies. Legislative efforts like the Financial Innovation and Technology for the 21st Century Act (FIT21) and the Blockchain Regulatory Certainty Act aim to define when cryptocurrencies are classified as securities or commodities and clarify regulatory oversight. Although these bills have yet to gain significant traction, they lay the foundation for future advancements in crypto regulation.
However, Donald Trump’s incoming administration has pledged to position the US as a global leader in cryptocurrency innovation. Plans include creating a Bitcoin strategic reserve, revitalising crypto mining, and pursuing deregulation. The expected nomination of cryptocurrency advocate Paul Atkins as SEC chair has fueled optimism within the industry, raising hopes for a more collaborative and forward-thinking approach to digital asset regulation.
While deregulation is a priority, the sector still requires new rules to address its complexities. Key areas for clarification include defining when crypto assets qualify as securities under the Howey test and refining enforcement strategies to focus on fraud prevention without stifling innovation. Addressing the treatment of secondary crypto trading under securities laws could further enhance the competitiveness of US-based exchanges and keep crypto projects in the country.
By balancing deregulation with essential safeguards, the incoming administration could foster an environment of growth and innovation while ensuring compliance and investor protection. The groundwork being laid today may help shape a thriving future for the US cryptocurrency landscape.
Russia strengthens crypto rules
Russia has taken a significant step in regulating cryptocurrency by introducing new rules aimed at integrating digital assets into its financial system while maintaining economic stability. As of 11 January 2025, the Bank of Russia requires contracts involving digital rights—such as cryptocurrencies, tokenised securities, and digital tokens—used in foreign trade to be registered with authorised banks. This applies to import contracts exceeding RUB 3 million and export contracts over RUB 10 million, underscoring the country’s intent to balance oversight with operational efficiency in international trade.
The regulations also mandate residents to provide detailed documentation on crypto transactions tied to these contracts. These include records of digital asset transfers or receipts used as payments, along with information on related foreign exchange operations. This level of scrutiny is designed to enhance transparency and mitigate risks, reflecting Russia’s broader goal of establishing a secure and efficient framework for digital assets.
While the move could promote wider adoption of cryptocurrencies by offering regulatory clarity, it also imposes additional compliance obligations on businesses and investors. As digital assets gain prominence in the global economy, Russia aims to leverage their potential while ensuring they are used responsibly within its financial system.
The Bank of Russia’s initiative represents a pivotal moment in the evolution of the nation’s digital financial landscape. Market participants will need to adapt to these changes and navigate the new regulatory environment as Russia positions itself at the forefront of crypto regulation.
China’s complex crypto landscape
China has had a complicated relationship with cryptocurrency, once holding the largest market for Bitcoin transactions globally before a crackdown began in 2017. Despite these regulatory restrictions, the blockchain industry in China remains a leader, with over 5,000 blockchain-related companies. China’s government continues to restrict domestic cryptocurrency trading and initial coin offerings (ICOs), citing concerns over volatility, anonymous transactions, and lack of centralised control. However, major blockchain companies like Binance and Huobi remain influential, and China still leads in blockchain projects globally.
Legally, China does not recognise cryptocurrency as legal tender. Instead, it considers them virtual commodities. Since 2013, the government has implemented several regulations aimed at restricting cryptocurrency trading and protecting investors. These regulations include a ban on domestic cryptocurrency exchanges, and ICOs, as well as the participation of financial institutions in cryptocurrency activities. Although the country has not passed comprehensive cryptocurrency legislation, the government has consistently emphasised that trading virtual currencies carries risks for individuals.
China has also addressed the taxation of cryptocurrency profits. Income generated from trading virtual currencies is subject to individual income tax, specifically categorised under ‘property transfer income.’ Tax authorities require individuals to report the purchase price and taxes, with the government stepping in to determine prices if proof is not provided. The approach demonstrates China’s ongoing control over cryptocurrency activities within its borders.
Despite the regulatory restrictions, China’s blockchain sector remains robust and influential. The government is clearly focused on managing the risks associated with digital currencies while fostering blockchain innovation, which is likely to continue to influence global cryptocurrency trends.
EU’s comprehensive crypto framework
At the forefront of regulatory efforts is the European Union, which unveiled its comprehensive regulatory framework known as the Markets in Crypto-Assets Act (MiCA) in 2020. After nearly three years of development, MiCA was approved by the European Parliament in April 2023, with the enactment date set for 30 December 2024. The MiCA framework aims to create legal clarity and consistency across the EU, streamlining the regulatory approach to crypto assets. Before MiCA, crypto firms in the EU had to navigate a complex landscape of varying national regulations and multiple licensing requirements, but the new legislation provides a unified licensing structure, which will apply across all 27 member states.
MiCA applies to all crypto assets that fall outside traditional EU financial regulations, covering everything from electronic money tokens (EMTs) and asset-referenced tokens (ARTs) to other types of crypto assets. These assets are defined based on how they function and are backed. EMTs, for example, are digital assets backed by a single fiat currency, while ARTs are pegged to a basket of assets. MiCA does not automatically apply to non-fungible tokens (NFTs) unless they share characteristics with other regulated assets. Additionally, decentralised applications (dApps), decentralised finance (DeFi) projects, and decentralised autonomous organisations (DAOs) may not be fully subject to MiCA, unless they do not meet the criteria for decentralisation.
Businesses that offer crypto-asset services, known as crypto-asset service providers (CASPs), are at the heart of MiCA’s regulatory scope. These include entities involved in cryptocurrency exchanges, wallet services, and crypto trading platforms. Under MiCA, CASPs will need to obtain authorisation to operate across the EU, with a unified process that eliminates the need for multiple licenses in each country. Once authorised, these businesses can offer services across the entire EU, provided they comply with requirements around governance, capital, anti-money laundering, and data protection.
MiCA also introduces important provisions for stablecoins, particularly fiat-backed stablecoins, which must be backed by a 1:1 liquid reserve. However, algorithmic stablecoins—those that do not have explicit reserves tied to traditional assets—are banned. Issuers of EMTs and ARTs will be required to obtain authorisation and provide whitepapers, outlining the characteristics of the assets and the risks to prospective buyers. MiCA’s regulations are designed to protect consumers, reduce market manipulation, and ensure that crypto activities remain secure and transparent.
This regulatory shift is expected to reshape the crypto landscape in the EU, offering businesses and consumers clearer protections and encouraging market integrity. As MiCA comes into effect in 2025, its impact is likely to reverberate beyond Europe, as other nations look to adopt similar frameworks for managing digital assets.
Japan’s evolving crypto regulations
Japan is considering lighter regulations for cryptocurrency intermediaries that are not crypto exchanges. The Financial Services Agency (FSA) recently proposed this to the Financial System Council, following Japan’s early cryptocurrency regulation after the Mt. Gox hack. Currently, crypto intermediaries such as apps or wallets that connect users to exchanges must register as crypto asset exchange service providers (CAESPs), but many do not handle customer funds directly.
To reduce the regulatory burden, the FSA is exploring a system where intermediaries would register, provide user information, follow advertising restrictions, and potentially be liable for damages. They might also be required to maintain a security deposit, with exchanges absorbing liability for affiliated intermediaries. This proposal aims to create a more flexible regulatory framework for crypto-related businesses that do not operate exchanges.
Brazil’s new crypto market law
In late 2022, the National Congress approved a bill regulating the cryptocurrency market, focusing on areas like competition, governance, security, and consumer protection. The Central Bank of Brazil (BCB) and the Securities and Exchange Commission (CVM) will oversee its implementation. While there was no specific crypto regulation before, the new law will require companies, including exchanges, to obtain licenses, register with the Brazilian National Registry of Legal Entities (CNPJ), and report suspicious activities to the Council for Financial Activities Control (COAF).
The regulation mandates KYC (Know Your Customer) and KYT (Know Your Transaction) practices to combat money laundering. It also aligns with the Penal Code of Brazil, enforcing penalties for fraud and crimes. Notably, exchanges must separate client assets from company assets, a provision not yet included in the law but proposed by the Brazilian Association of Cryptoeconomics (ABCripto).
The law was set to take effect between May and June 2023, with full implementation, including licensing rules, expected by 2025. While the decentralised nature of the global crypto market presents challenges, the new regulatory framework aims to offer greater security and attract more investors to the growing Brazilian crypto market.
UK push for crypto regulation
The United Kingdom has taken significant steps to regulate digital currencies, mandating that any company offering such services must obtain proper authorisation from the Financial Conduct Authority (FCA). This regulation is part of a broader effort to establish a clear and secure framework for digital assets, including cryptocurrencies and digital tokens, within the UK financial ecosystem. One area of particular focus is stablecoins, which are digital currencies pegged to stable assets, such as the US dollar or the British pound. Stablecoins have garnered attention for their potential to revolutionise the payments sector by offering faster and cheaper transactions compared to traditional payment methods.
The Bank of England has proposed new regulations specifically targeting stablecoins to maximise their benefits while addressing potential risks. These proposed rules aim to strike a balance between encouraging innovation in digital payments and ensuring the financial system’s stability. The regulations are designed to ensure that stablecoins do not pose risks to consumer protection or the integrity of the financial market, particularly in terms of preventing money laundering and illicit financial activities.
This move highlights the UK’s proactive approach to digital asset regulation, aiming to foster a secure environment where cryptocurrencies and blockchain technologies can thrive without undermining the broader financial infrastructure. The efforts also underscore the UK’s commitment to consumer protection, ensuring that individuals and businesses engaging with digital currencies are properly safeguarded. With this comprehensive regulatory approach, the UK is positioning itself as a leader in the integration of digital currencies into traditional finance, setting a precedent for other nations exploring similar regulatory frameworks.
Kenya΄s crypto regulation attempt
Kenya’s journey with cryptocurrency regulation has evolved from scepticism to a more open stance as the government recognises its potential benefits. Initially, in the early 2010s, cryptocurrencies like Bitcoin were viewed with caution by the Central Bank of Kenya (CBK), citing concerns over volatility, fraud, and lack of consumer protection. This led to a public warning against the use of virtual currencies in 2015. However, the growing global interest in digital currencies, including in Kenya, continued, with nearly 10% of Kenyans owning cryptocurrency by 2022, driven by factors such as financial inclusion and the appeal of blockchain technology.
A turning point for Kenya came in 2018, when the government set up a task force to explore blockchain and the potential of AI, building on the success of mobile money services like M-Pesa. By 2023, the country began assessing money laundering risks associated with virtual assets, signalling a shift in attitude toward cryptocurrencies. By December 2024, the government introduced a draft National Policy on Virtual Assets and Virtual Asset Service Providers (VASPs), outlining a regulatory framework to guide the development of the market.
The proposed regulations include licensing requirements for cryptocurrency exchanges and wallet providers, as well as measures to prevent money laundering and countering and terrorist financing. Consumer protection and cybersecurity are also central to the framework, ensuring that users’ funds and personal data are safeguarded. The draft regulations are open for public consultation until 24 January 2025, with the government seeking input from industry players, consumer groups, and the public.
Kenya’s path from opposition to embracing cryptocurrency reflects a broader trend towards digital financial innovation. By creating a balanced regulatory environment, Kenya hopes to position itself as a leader in Africa’s digital financial revolution, fostering economic growth and financial inclusion, much like the success it achieved with M-Pesa.
The need for a global approach
As we already explained, the international nature of cryptocurrency markets presents unique regulatory challenges. Cross-border activities increase the risk of fraud and investor harm, highlighting the necessity of consistent global standards. The WEF emphasises that international collaboration is “not just desirable but necessary” to maximise the benefits of blockchain technology while mitigating risks.
Differences in market maturity, regulatory capacity, and regional priorities complicate alignment. However, organisations such as IOSCO or the Financial Stability Board (FSB) stress the role of international bodies and national regulators in fostering a unified regulatory framework. A global approach would not only enhance consumer protections but also create an environment conducive to innovation, ensuring the responsible evolution of cryptocurrency markets.
As the crypto ecosystem evolves, governments and international organisations are working to balance innovation and regulation. By addressing the challenges posed by digital assets through comprehensive, coordinated efforts, the global community aims to create a stable and secure financial environment in the digital age.
