Skynet State of Digital Asset Regulations Report

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The global regulatory environment for digital assets has moved past the exploratory phase and into full enforcement. Across major jurisdictions, including the United States, European Union, Hong Kong, Singapore, the UAE, Japan, Turkey, and Brazil, frameworks are active, enforceable, and increasingly aligned with traditional financial regulation.

Our Skynet State of Digital Asset Regulations Report finds that the primary regulatory risk has shifted. Securities classification, once the dominant concern, has been overtaken by anti-money laundering (AML) enforcement. In H1 2025 alone, AML-related fines and settlements exceeded $900 million, while SEC crypto enforcement penalties fell 97% year-over-year. At the same time, smart contract security audits have become statutory or quasi-statutory requirements in most jurisdictions, and prudential standards now mirror those applied to traditional financial market infrastructure.

For companies operating or planning to scale globally, the implications are that multi-jurisdictional licensing is now a baseline requirement; AML compliance budgets must align with the scale of enforcement; and security audits are recurring, jurisdiction-specific costs, rather than one-time exercises.

Key Findings

• Global enforcement is active and widespread. Regulatory frameworks are now enforceable across the US, EU, Hong Kong, Singapore, the UAE, Japan, Turkey, Brazil, and other major markets.
• AML enforcement is now the primary regulatory risk. AML-related fines and settlements exceeded $900 million in H1 2025, with major actions including $504 million (OKX) and$297.4 million (KuCoin). European AML fines increased by 767% over the same period.
• Securities enforcement has declined in relative importance. SEC crypto enforcement penalties fell by 97% year-over-year, while the DOJ and FinCEN actively expanded.
• Stablecoin regulation has entered the implementation phase. Binding requirements on reserves, redemption rights, governance, and disclosure are now enforceable across major jurisdictions. The challenge has shifted to managing cross-border regulatory friction and compliance costs.
• Security audits are now required for licensing and token admission. Independent smart contract assessments are mandated or indirectly required in most jurisdictions, including Hong Kong, the UAE (VARA/ADGM), the EU (DORA), and the US at the state level (NYDFS, Wyoming).
• Prudential standards now mirror traditional finance. Exchanges, custodians, and issuers are subject to requirements covering capital adequacy, asset segregation, liquidity management, and recovery planning.
• Basel standards create a structural divide between asset classes. Effective January 1, 2026, the Basel cryptoasset framework differentiates between Group 1 assets (tokenized traditional instruments and qualifying stablecoins) and Group 2 assets (unbacked tokens like BTC and ETH), with significantly higher capital requirements applied to the latter.
• Tokenization is scaling under existing securities law. Rather than bespoke frameworks, most jurisdictions are applying modified traditional securities regulations to tokenized assets, with initiatives such as Franklin Templeton’s on-chain fund, Singapore’s Project Guardian, and Brazil’s Piloto Drex demonstrating institutional adoption.

Read the full report to learn more about global digital asset regulation and relevant statistics.

FAQs

What is the biggest regulatory risk for digital asset companies in 2026?

AML compliance is now the primary regulatory risk. Enforcement actions and penalties tied to transaction monitoring and sanctions compliance have surpassed those related to securities classification.

How much have AML-related fines increased?

AML-related fines and settlements exceeded $900 million in H1 2025, with European AML fines rising 767% over the same period.

Are smart contract audits now mandatory?

In most jurisdictions, yes. Independent smart contract security assessments are either explicitly required or indirectly mandated through broader cybersecurity and operational resilience frameworks.

What challenges do stablecoin issuers face today?

The main challenge is no longer legal recognition, but managing fragmented global requirements, including conflicting reserve rules, lack of license passporting, and rising compliance costs.

How do Basel standards impact digital assets?

The Basel framework introduces different capital treatments for asset classes. Tokenized traditional assets and qualifying stablecoins receive standard risk weighting, while unbacked assets like BTC and ETH face significantly higher capital charges, limiting their institutional viability.