Web3 Reg News: Dividing Approaches

September 1, 2026 – September 15, 2026

In the first half of September, the global regulatory landscape is moving in different directions depending on whether you’re to the west of the Atlantic or the East. In North America, regulators are working to retain capital and foster institutional adoption with SEC Chair Paul Atkins proposing sweeping exemptions to bring crypto startups back to the United States, while Canada's banking regulator has officially cleared the way for traditional banks to launch tokenized deposits. Conversely, European authorities are grappling with strict surveillance mandates and political gridlock. Italy mandates zero-threshold sanctions screening for all crypto transfers, and Poland’s parliament fails to override a presidential veto on critical market regulations. Meanwhile, in the Asia-Pacific region, the grace period for digital asset compliance is rapidly coming to an end as Australia issues a final warning for impending licensing deadlines.

• Easing Rules and Embracing Tokenization

SEC Chair Seeks to Bring Crypto Innovators Back to the US 

In a concerted effort to reverse the offshore exodus of digital asset capital, US Securities and Exchange Commission (SEC) Chair Paul Atkins officially unveiled the ‘Regulation Crypto Assets’ proposal. Atkins argued that the previous administration's ‘regulation by enforcement’ aggressively pushed domestic founders overseas. The new proposal introduces specific fundraising exemptions designed to let crypto firms raise capital dynamically without navigating the prohibitive costs of standard 1930s-era securities registration. Atkins is also pushing Congress to pass the pending CLARITY Act, which would divide oversight cleanly between the SEC and the CFTC, arguing that only legislative action can guarantee durable, long-term rules that prevent future regulatory flip-flopping.

Canada Gives Banks Green Light on Tokenized Deposits 

Canada has cleared a major hurdle for blockchain-based banking with the Office of the Superintendent of Financial Institutions (OSFI) publishing a formal statement clarifying that tokenized deposits are not legally distinct from traditional bank deposits. Operating under a ‘technology-neutral’ approach, OSFI declared that putting fiat currency on a distributed ledger does not automatically transform it into a stablecoin, cryptocurrency, or a new legal asset. As long as the product remains a deposit liability of the bank, existing risk frameworks apply. This explicit clarification removes the foundational legal uncertainty for Canadian banks, paving the way for institutional on-chain settlement, programmable payments, and shared ledger systems.

• Clamping Down 

Italy to Gain Zero-Threshold Sanctions Screening 

Italy’s central bank is aggressively tightening its anti-money laundering and sanctions net as Banca d'Italia instructs all licensed Crypto-Asset Service Providers (CASPs) that every single crypto transfer - regardless of value - must undergo rigorous sanctions screening. In a move reminiscent of other countries attempting to stamp out smurfing issues, the regulator specifically ordered firms to remove any internal minimum transaction thresholds from their automated screening systems to prevent sanctioned individuals from structuring large illicit transfers into multiple micro-transactions. Authorities warned that instant-payment exemptions available to traditional fiat providers do not apply to crypto operators, placing immediate operational pressure on Italian exchanges to audit and recalibrate their compliance methods.

Australian Authority Issues Final Warning 

The Australian Securities and Investments Commission (ASIC) has issued a final warning to digital asset firms that the sector-wide ‘no-action’ position expires on the 30th of September, 2026. Any crypto business operating without applying for an Australian Financial Services (AFS) license, varying an existing license, or securing an authorized representative arrangement by that date will be operating illegally beginning on the 1st of October. The regulator warned that firms failing to secure their operational pathways could face severe civil and criminal penalties, including fines of up to 10% of their annual turnover. ASIC noted that over 45 licensing applications have already been lodged, signaling the definitive end of regulatory forbearance and a more complete integration of Australia’s crypto sector into traditional financial oversight.

• Political Gridlock 

Poland’s Crypto Regulation Stalls Again 

Poland’s digital asset market remains entirely without a dedicated supervisor following a major legislative failure on the 4th of September. The Sejm (Poland’s lower house) fell 25 votes short of the three-fifths majority needed to override President Karol Nawrocki’s third veto of a critical cryptocurrency regulation bill. The legislation would have designated the Financial Supervision Authority (KNF) as the national crypto watchdog, bringing the country in line with the EU’s MiCA framework. Despite intense pressure from Prime Minister Donald Tusk, who invoked the recent $94 million collapse of the Zondacrypto exchange as proof of the urgent need for oversight, the president’s veto stands. Nawrocki argued the government's bill imposes excessive compliance costs that would drive Polish businesses out of the country.