The cryptocurrency sector is undergoing significant transformations as governments worldwide implement new regulations to address the rapid growth and integration of digital assets into the financial system. Recent legislative actions in the United States, Pakistan, and South Korea exemplify this global trend.
United States: The GENIUS Act and Its Implications
On July 18, 2025, President Donald Trump signed the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act into law. This landmark legislation introduces a comprehensive regulatory framework for stablecoins—cryptocurrencies pegged to stable assets like the U.S. dollar. The act mandates that issuers back their tokens with high-quality liquid assets and disclose their reserves, aiming to enhance transparency and consumer protection.
The GENIUS Act also paves the way for crypto firms to apply for bank licenses and act as custodians of their digital tokens, potentially bypassing traditional banks. This development could lead to a reconfiguration of the financial landscape, as crypto companies seek direct access to Federal Reserve services. However, the Federal Reserve has historically been cautious in approving such applications, and it remains to be seen how this dynamic will evolve.
Pakistan: Establishment of the Virtual Assets Regulatory Authority
In a significant move, Pakistan established the Pakistan Virtual Assets Regulatory Authority (PVARA) on July 8, 2025. Created under the Virtual Assets Ordinance, 2025, PVARA is tasked with licensing, regulating, and supervising virtual asset services and service providers across the country. The authority aims to ensure financial integrity, prevent illicit activities, and align with international standards such as those set by the Financial Action Task Force (FATF).
This initiative reflects Pakistan’s commitment to integrating digital assets into its financial system while safeguarding against potential risks associated with virtual currencies.
South Korea: Recognizing Crypto Startups as Venture Firms
South Korea’s Ministry of SMEs and Startups announced plans to lift restrictions that previously prevented crypto-related businesses from being classified as venture companies. Under the proposed amendment, crypto startups will gain access to key government benefits, including substantial tax cuts and real estate acquisition tax relief.
This policy shift is expected to bolster South Korea’s blockchain sector by integrating digital assets into the nation’s innovation and startup economy, signaling a more supportive stance toward cryptocurrency enterprises.
Global Impact and Market Response
These regulatory developments have had a notable impact on the cryptocurrency market. Bitcoin, for instance, is currently trading at $118,420, reflecting a slight increase from the previous close. Ethereum stands at $3,672.58, with a marginal decrease. These fluctuations indicate that while regulatory clarity can provide a boost to market confidence, the sector remains sensitive to policy changes and their potential implications.
Looking Ahead
As governments continue to refine their approaches to cryptocurrency regulation, the balance between fostering innovation and ensuring financial stability remains a central challenge. The recent actions in the United States, Pakistan, and South Korea highlight a global trend toward more structured oversight of digital assets. Stakeholders in the crypto space should stay informed and adaptable to navigate this evolving regulatory landscape effectively.
