Crypto Licensing Breakthrough: How Five Major Nations Set New Rules in 2025

This article was first published on Deythere.

Crypto regulation in 2025 went from confusion to clarity. Following years of fragmented rules, enforcement actions and regulatory ambiguity, some governments finally presented clear licensing requirements related to crypto that dictate who can operate, how licenses are granted and what compliance entails. 

These changes are important because licensing is the basis of trust in crypto markets as it dictates where exchanges can conduct business, how stablecoins come into existence and also how investors are safeguarded.

United States Crypto Licensing Regulations 2025

The U.S. passed important blockchain licensing rules in 2025. In July 2025, the GENIUS Act was passed which provided a federal licensing framework for stablecoins. 

Under the law, an insured bank can issue payment stablecoins through a subsidiary after obtaining approval from the FDIC. 

This makes way for the first uniform federal roadmap for stablecoin issuers, replacing the old patchwork where companies had to hold dozens of state money-transmitter licenses. 

The GENIUS Act established concrete timeframes and rules for approvals, greatly streamlining the previous “regulation by enforcement”. 

In effect, U.S. crypto licensing regulations in 2025 now offer a single rulebook for stablecoins. Corporations know exactly which set of the federal standards apply nationwide, which minimizes legal ambiguity and reduces compliance costs.

European Union Crypto Licensing Regulations

In the European Union; 2025 ticked the rollout of the Markets in Crypto-Assets (MiCA) regulation; which unified licensing across all 27 member states. 

As of January 2025; MiCA licensed crypto asset service providers (CASP) received an “EU Passport”; which means that one authorization in one country automatically covers the entire single market. 

A company approved in the Netherlands, for example, can now conduct business in Germany and France and the other nations of the European Union without applying for new licenses there. 

Regulators see MiCA’s passporting as a way to simplify cross-border operations under single EU rules. The change clarifies crypto licensing regulations in Europe, by removing the requirement of multiple national approvals. 

The result is a single authorization process for over 450 Million users with one license. Though debates persist about supervision, the MiCA launch makes it obvious that crypto companies can legally scale across Europe on a harmonized basis.

United Arab Emirates (Dubai) Crypto Licensing Rules

In May 2025, Dubai’s Virtual Assets Regulatory Authority (VARA) released Rulebook Version 2.0, its extensive makeover of its crypto-licensing regime. 

This update consolidated and clarified previous guidance into an activity-based framework. Specifically, VARA also defined clearer definitions and uniform rules of all financial activities. For instance, such terms as “qualified custodian” and collateral requirements were specifically defined, while the compliance requirements were made uniform. 

According to VARA official press statement, they intend to achieve “clearer definitions for collateral wallet arrangements, and harmonized compliance requirements across all licensed activities. 

The regulator also gave  a clear deadline for firms to adhere, making expectations crystal clear. These changes translate that Dubai’s crypto licensing rules are now predictable: firms have a clear checklist for every activity, bringing guesswork down. 

In other words, Dubai has transitioned from an experimental approach to a mature, rule-based framework aligned with global financial standards

Hong Kong Crypto Licensing Regulations 2025

Hong Kong concentrated on stablecoins in 2025. The HKMA introduced a new licensing regime under the Stablecoins Ordinance in August, which makes the issuance of fiat-backed stablecoins a regulated activity. 

Under the new system, any firm that prints or issues fiat-backed stablecoins will require a license from the Hong Kong Monetary Authority. The rules set very clear capital, reserve and disclosure requirements for stablecoin issuers. 

By carving out this dedicated license, Hong Kong took away the lack of clarity over whether stablecoins should fall under other finance laws. Reports add that such a framework provides a clear capital obligation and reserve structure. It gives global players a channel into Asian digital asset markets. 

Hong Kong’s crypto licensing provisions 2025 specifically touches on stablecoins: what will the license be obtained for; and under which conditions. This specialized regime includes protections such as a legal “safe harbor” for businesses without local marketing, helping to address issues with cross-border licensing.

United Kingdom Crypto Licensing Regulations

In 2025 the UK simplified its approach by folding crypto into existing financial law. HM Treasury released draft regulations to bring crypto asset activity within the scope of FSMA. 

Instead of a new separate regime, crypto trading, exchanges, wallet services and even stablecoin issuance will now need authorization under FSMA just like banks or securities firms. 

The Financial Conduct Authority (FCA) then came forward in late 2025 with some consultation papers on how such rules might be implemented (for instance regarding capital standards for stablecoins and controls to prevent market abuse). 

Through incorporating crypto into FSMA, the UK established one not two separate crypto law. What this results in is that UK-based crypto companies with experience of UK financial service compliance can now apply their existing compliance processes to crypto activities

In practical terms, the UK’s Crypto Regulations 2025 now treat qualifying crypto assets as a type of specified investment under FSMA and therefore consistent licensing and regime enforcement under well known rules.

 2025 Crypto Licensing Reforms by Jurisdiction.

Conclusion

Crypto licensing regulations are taking shape in prominent markets. Five governments have gone from grey to defined, allowing crypto operators to plan more confidently. 

The US debuted a federal stablecoin law (GENIUS Act), the EU launched its single-license MiCA passport, Dubai’s VARA released Rulebook 2.0 with Specific Rules, Hong Kong enforced a stablecoin licensing regime, and the UK consolidated all crypto under FSMA. 

Each reform balances innovation with protections: firms know precisely the capital, custody and AML requirements to get a license. 

In every case, crypto licensing laws increase certainty without reducing quality. For both companies and investors, the question is no longer “Can we get a license?” but “Which regulatory environment is the best fit for our business?” The clarity this year helps to do that. 

Glossary

Crypto Licensing: Regulations that stipulate that cryptocurrency companies (exchanges, wallets, token projects) must acquire express permission from authorities or licenses before they can legally function.

Stablecoin: A crypto tied to the value of a stable asset, typically fiat (like USD). Examples include USDC. 

MiCA (Markets in Crypto-Assets): An EU regulation establishing a common framework for crypto assets and service providers throughout the EU.

VARA (Virtual Assets Regulatory Authority): Dubai’s crypto regulator for all those people who are humbled by the sheikhs popping bottles in the club. VARA grants licenses and rulebooks for crypto activities in Dubai’s free zones. Its Rulebook 2.0 (2025) explains how VASPs are required to act in line with the FATF guidance.

FSMA (Financial Services and Markets Act 2000): The law in the United Kingdom on financial services. In 2025, cryptoassets were brought within the scope of FSMA, so that crypto firms require authorization under the same law as banks and securities companies.

VASP (Virtual Asset Service Provider): A term for any business involved in crypto assets, such as exchanges, custodians, and payment services. 

Passporting: An EU system whereby a license issued by one member state; enables a company to do business in all countries of the European Union without having to acquire new licenses. 

Frequently Asked Questions About Crypto Licensing in 2025.

Which five governments clarified crypto licensing in 2025?

The US, EU, UAE (Dubai), Hong Kong and UK; all made new revisions to their crypto licensing frameworks. These initiatives are the U.S. GENIUS Act (stablecoin law), implementation of EU’s MiCA, Dubai’s VARA Rulebook 2.0, stablecoin licensing in Hong Kong and UK’s crypto laws under FSMA.

What is the U.S. GENIUS Act? 

The GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins) is a federal statute enacted in 2025 that permits FDIC-insured banks to issue payment stablecoins through a subsidiary. It provides a defined application process and standards under federal regulators, establishing a single licensing regime for stablecoin issuers. 

What is EU MiCA passporting? 

MiCA (Markets in Crypto-Assets), which entered into force in 2025, is an EU regulation. Its passporting system ensures that a crypto-assets service provider licensed by one EU country can serve across all member states. In other words, one license is applicable for the whole of EU

What changed with Dubai’s VARA Rulebook 2. 

In May 2025, the Dubai’s Virtual Assets Regulatory Authority issued the Rulebook Version 2. This new code of play amalgamates the old rule set into a single document. It added definitions for terms (such as qualified custodian), accorded requirements across activities, and reinforced those on trading and lending

Is it necessary to obtain any licences if I issue stablecoins in Hong Kong? 

Yes. The stablecoin issuer license was introduced in Hong Kong in 2025. Any company issuing a fiat-backed stablecoin will have to apply for permits from the HKMA as of August 1st, 2025.

References

fdic

cointelegraph

vara

hkma

skadden

reuters