Global Crypto Regulation Roundup

February 1st, 2026 – February 14th, 2026

The first half of February has presented a stark dichotomy in the global regulatory narrative: while the United Kingdom and China are moving forward with decisive, albeit significantly different, enforcement regimes, the United States and Poland are struggling with legislative gridlock. Elsewhere, the EU attempts to stymie Russian attempts to use cryptocurrency to avoid sanctions. With this news, February sees the acceleration of regulatory clarity and control, but it is not progressing with equal ease or in the same direction across jurisdictions.

• Global Regulatory Frameworks

US Regulators Pivot to Joint Framework as Legislation Stalls

With the CLARITY Act effectively paralyzed in Congress following Coinbase’s withdrawal of support, US regulators are exploring alternative paths to progress. In a significant shift from the ‘regulation by enforcement’ era of Gary Gensler, SEC Chair Paul Atkins and CFTC Chair Michael Selig have announced a new collaborative strategy, preparing to sign a Memorandum of Understanding (MOU) to formalize their jurisdictional split. Under this approach, the SEC will explicitly oversee tokenized securities, while the CFTC will take charge of digital commodities and collectibles. Crucially, Chair Atkins has floated the idea of an ‘innovation exemption’ in a move designed to allow new projects to launch without the fear of immediate litigation, encouraging growth and development in the crypto space.

UK Enacts Landmark Crypto Legislation

On the 4th of February, the United Kingdom officially made the Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2026. This sets a hard deadline for the industry: the 25th of October, 2027. From then, any business carrying out regulated activities, such as dealing, arranging, or issuing stablecoins, must hold a full FCA license or risk committing a criminal offence. The regulations introduce a comprehensive market abuse framework and explicitly ban public offers of qualifying cryptoassets unless a specific exemption applies. The legislation also clarifies that tokenized versions of traditional assets (like equities and bonds) are excluded from this specific definition, as they remain under existing securities laws. With HM Treasury estimating the initial cost of compliance at £24 million, firms must now prepare for the FCA’s application window, expected to open later this year.

Poland’s President Vetoes Crypto Bill for the Second Time

In a significant blow to Poland's regulatory roadmap, President Karol Nawrocki has vetoed the government’s crypto-assets bill for the second time. The legislation, intended to align Poland with the EU’s Markets in Crypto-Assets (MiCA) regulation, was rejected on the grounds that it was ‘practically identical’ to the version vetoed in December 2025. President Nawrocki cited concerns around overregulation and a lack of transparency, dismissing government arguments that the bill was essential for national security and countering Russian influence. This ongoing political standoff leaves Poland dangerously close to missing the July 2026 MiCA implementation deadline, creating uncertainty for local VASPs hoping for a smooth transition to the EU-wide regime.

• Security and Sanctions

EU Seeks to Close Crypto Loopholes with New Russia Sanctions

The European Union is preparing to tighten its financial blockade on Russia with a new sanctions package that specifically targets crypto loopholes. The proposed measures seek to impose a blanket ban on all cryptocurrency transactions with Russia, moving beyond the previous approach of targeting specific individuals and platforms. The initiative is designed to dismantle a network which officials believe is being used to circumvent existing financial restrictions. If adopted, this would effectively sever a key route for Russian cross-border payments, though critics have questions if it can be truly enforced.

China Vows to Tighten Restrictions on Offshore Yuan Stablecoins

Eight Chinese agencies, including the People’s Bank of China (PBOC), have issued a strict notice promising to tighten restrictions on virtual currency interactions. The directive explicitly prohibits domestic entities and their controlled overseas subsidiaries from issuing virtual currencies without official approval. In particular, the notice targets the ‘unauthorized offshore issuance’ of yuan-pegged stablecoins and mandates strict vetting for tokens backed by real-world assets (RWA). This does, however, hold some hope for those who see China’s inclusion of RWA in a legal framework as a step towards tokenisation opportunities (as long as they meet regulatory requirements). Regardless, this development signals that China will not shift on its traditional stance of protecting its monetary sovereignty and the digital yuan (e-CNY) from private sector competition.