Web3 Reg News: Rules Mature and Evolve

June 16, 2026 – June 30, 2026

As we see the second half of 2026 looming, crypto enforcement and structural reform are on the horizon. In Europe, the European Banking Authority is investigating a strict, quantifiable methodology for penalizing compliance failures under the MiCA framework, whilst Hungary has decriminalized cryptocurrency trading as it moves towards MiCA standards. Meanwhile, major legislative milestones are reshaping emerging and established markets alike: Brazil is advancing a bill to codify its central bank rules into permanent federal law, Japan is cementing its push to regulate crypto assets akin to traditional stocks, and Rwanda is actively deploying its newly passed virtual asset law to position itself as East Africa's premier digital finance hub.

• Europe's Evolving Landscape

EBA Consults on Draft Methodology for MiCA Fines

The grace period for European compliance is rapidly closing, and the European Banking Authority (EBA) has published a consultation paper detailing a comprehensive draft methodology for setting fines under the Markets in Crypto-Assets (MiCA) regulation. Responsible for supervising issuers of significant asset-referenced tokens (ARTs) and e-money tokens (EMTs), the EBA has outlined a multi-step calculation for administrative penalties based on the severity, duration, and intent of the infringement. Under the proposal, fines could reach maximums of 12.5% of annual turnover for ART issuers and 10% for EMT issuers. This move marks a definitive push for active, punitive enforcement, ensuring that major digital asset issuers are held to the same rigorous standards as legacy financial institutions.

Hungary Reverses Course

Hungary has passed legislation to reverse its previously restrictive crypto laws, effectively decriminalizing peer-to-peer cryptocurrency trading. With the European Union launching infringement proceedings against the country earlier this year due to its failure to implement MiCA standards, the county has now yielded to the pressure. The new framework removes the immediate threat of criminal prosecution for individual traders, provided they adhere to standardized tax reporting protocols. This legislative reversal establishes a new environment for retail participants and could attract blockchain startups back to the region and reverse the loss of tech talent that stemmed from the previous laws.

• Legislative Maturation

Japan Moves to Classify Crypto as Stocks

Building on earlier legislative momentum, Japan is taking steps to reshape how cryptocurrencies fit into its financial system. By moving to officially classify and regulate crypto assets as financial instruments akin to traditional stocks, Japan aims to lower capital gains taxes to a flat 20% and pave the way for broader exchange-traded fund (ETF) approvals. Market analysts indicate that utility-driven and established tokens are set to be among the primary beneficiaries of this shift. The reclassification provides the legal clarity required for traditional financial heavyweights to confidently integrate these assets into their portfolios.

Brazil Introduces Crypto Bill  

Brazil is furthering digital asset adoption in Latin America with the introduction of Bill 2946. This proposed legislation seeks to elevate the regulatory guidelines previously established by the Brazilian Central Bank (BCB) into binding federal law. By codifying the BCB’s rules regarding Virtual Asset Service Provider (VASP) licensing, anti-money laundering (AML) controls, and strict consumer protections, Brazil is establishing permanent legal certainty. This federalization should insulate the crypto sector from future administrative or political shifts, ensuring a stable environment for both domestic growth and foreign direct investment.

Rwanda Enacts Virtual Asset Law 

With the enactment of its inaugural Virtual Asset Law, Rwanda's new regulatory architecture is now actively taking effect. The law successfully replaces a years-long prohibition on crypto with a sophisticated, structured oversight regime. Introducing strict licensing mandates, minimum capital requirements, and rigorous AML/CFT compliance standards for VASPs, the framework effectively mitigates systemic risks. This move comes with strict ongoing compliance requirements but aligns Rwanda with global standards, such as the Travel Rule, and provides a stable environment for innovation and development.