Cryptocurrency Regulations: Global Trends and Energy Impacts
Global cryptocurrency rules are changing fast, with governments tackling energy use, money laundering, and tax evasion. For instance, British Columbia has permanently banned new crypto mining connections to its hydroelectric grid starting fall 2025. This follows an earlier 18-month pause and stems from worries about huge energy consumption. Charlotte Mitha, BC Hydro’s President, stressed the need to handle growth carefully to keep the grid stable. Existing miners like Bitfarms and Iren might keep running, but this ban shows the clash between crypto mining and sustainable energy. Anyway, it’s arguably true that such moves could push miners to areas with cheaper power.
Key Regulatory Developments Worldwide
Countries are taking different paths on crypto oversight. Kazakhstan closed 130 illegal crypto platforms in 2025, grabbing $16.7 million. Australia is weighing powers to limit crypto ATMs due to money laundering fears. The UK ended its ban on crypto exchange-traded notes for everyday investors. South Korea widened its crypto seizures to include cold wallet assets. These steps reveal a global push for tighter control while trying to balance innovation and public safety.
Energy Consumption and Mining Bans
Crypto mining is under fire for its environmental toll. British Columbia’s ban targets operations that suck up lots of electricity. Advocates such as Daniel Batten push back on negative green stories, but governments are prioritizing energy security. On that note, this might force miners to relocate to places with abundant, low-cost power.
Anti-Money Laundering Measures
Financial watchdogs are beefing up anti-money laundering rules for digital money. Kazakhstan now requires sender ID checks for big transactions. Australia’s AUSTRAC could get authority to ban risky crypto products. South Korea’s Financial Intelligence Unit noted 37,000 suspicious transactions by August 2025. These efforts match FATF tips to fight illegal finance.
Market Implications and Future Outlook
Regulatory shifts affect crypto uptake and investment. The UK’s ETN unban might boost its crypto market by up to 20%. Tax perks in the UK let people hold ETNs in pensions. South Korea seized over $108 million in crypto from tax dodgers. International teamwork through plans like the EU’s MiCA regulation aims to standardize rules. Tech advances in blockchain analysis and AI tracking improve enforcement. As David Geale of the FCA put it, “The market has evolved, and products have become more mainstream and better understood.” Deddy Lavid from Cyvers added that “AI tools can analyze patterns to catch anomalies early.” Looking ahead, clearer rules should cut uncertainties and support steady growth.
We’re seeing unprecedented demand from traditional and emerging industries. The Province’s strategy empowers BC Hydro to manage this growth responsibly, keeping our grid reliable and our energy future clean and affordable.
Charlotte Mitha
Since we restricted retail access to crypto ETNs, the market has evolved, and products have become more mainstream and better understood. In light of this, we’re providing consumers with more choice, while ensuring there are protections in place.
David Geale
Kazakhstan’s Crypto Crackdown and AML Enforcement
Kazakhstan has ramped up its crypto oversight, shutting 130 platforms tied to money laundering and confiscating $16.7 million in 2025. The Financial Monitoring Agency (AFM) also took $642,000 from illegal mining. New anti-money laundering laws demand verification of the sender’s ID for deals over 500,000 tenge ($925). The AFM is thinking about mobile app or SMS confirmations for extra safety. Despite the crackdown, Kazakhstan encourages crypto use through moves like paying fees with stablecoins. The AFSA’s public list has 20 okayed platforms, including Bybit and WhiteBIT, backing legal operations.
Global Regulatory Alignment
Kazakhstan’s method fits global trends. Turkey is drafting laws to freeze crypto accounts, and Dubai’s VARA has penalized unlicensed firms. This echoes FATF advice to combat money laundering and terror funding. The mix of enforcement and adoption help makes Kazakhstan a Central Asian crypto leader.
All bank card top-ups with an amount exceeding 500,000 tenge ($925) will require mandatory verification of the sender’s Individual Identification Number (IIN).
Kairat Bizhanov
These platforms differ from conventional centralized crypto exchanges (CEXs). These platforms function more like traditional currency exchange offices and are commonly referred to as crypto exchangers.
AFM spokesperson
Australia’s Crypto ATM Regulations and Industry Response
Australia’s financial authorities want to expand AUSTRAC’s powers to restrict or ban crypto ATMs, citing money laundering risks. Minister Tony Burke proposed draft laws allowing bans on high-risk crypto items. Australia hosts 2,008 crypto ATMs, ranking third worldwide. Private firms like Localcoin, Coinflip, and Bitcoin Depot run over half the network. Industry players say current rules are enough, pointing to security layers like Know Your Customer checks and blockchain analysis. This regulatory step is a middle ground versus New Zealand’s full ban, aiming to balance innovation and control.
Impact on Crypto Adoption
Regulatory doubt might slow crypto adoption in Australia. Traditional ATMs are declining, and banks stay tight. The fight between new ideas and fear-based rules could shift activities to less watched spots. Still, fair policies that address risks without blocking progress are key for market expansion.
I’m not pretending for a minute that everybody who goes in and uses a crypto ATM is a problem, but proportionately what’s happening is a significant problem in an area which is much harder for us to trace.
Tony Burke
We’re changing that because we think Australia is a market that we want to be in, and it’s a market that we want to grow, so we’re going to build a local team here.
Saad Ahmed
UK’s Crypto ETN Ban Lift and Market Implications
The UK Financial Conduct Authority (FCA) has lifted its four-year ban on crypto exchange-traded notes (ETNs) for retail investors. Crypto ETNs are debt securities that give exposure to cryptos without owning them directly. Firms like BlackRock, Bitwise, and CoinShares are getting ready to launch ETNs. The FCA’s setup requires ETNs to trade on approved exchanges with consumer safeguards. Tax benefits include holding ETNs in pensions from October 2024 and in Stocks & Shares ISAs from April 2026. IG Group research forecasts the UK crypto market could grow up to 20% after the restart.
Operational Considerations
Delays in retail access might happen as the FCA checks prospectuses. This careful approach differs from the US, where spot crypto ETFs started sooner. The ban lift boosts UK competitiveness, aided by efforts like the UK-US Transatlantic Taskforce. By offering regulated entry, the UK aims to blend crypto with traditional finance.
Since we restricted retail access to crypto ETNs, the market has evolved, and products have become more mainstream and better understood. In light of this, we’re providing consumers with more choice, while ensuring there are protections in place.
David Geale
While several respondents called for retail access to cryptoasset ETFs, ETFs marketed to UK retail investors are unable to invest directly into cryptoassets under our current regulatory framework for funds. This framework would need to be updated before retail investors could access cryptoasset ETFs.
FCA
South Korea’s Crypto Seizures and Enforcement Technologies
South Korea’s National Tax Service (NTS) is expanding crypto seizures to cover cold wallet assets. Under the National Tax Collection Act, the NTS can ask for account info from local exchanges, freeze accounts, and sell assets. In the last four years, the NTS has taken and sold over $108 million in crypto from more than 14,000 people. This crackdown comes as crypto use soars, with investor numbers surging nearly 800% to about 11 million by June. The Financial Intelligence Unit (FIU) reports a jump in shady crypto deals, with providers sending nearly 37,000 suspicious reports by August 2025.
Technological Enforcement Measures
The NTS uses crypto-tracking software to review transaction histories. Tech tools include blockchain analytics, AI monitoring, and forensic checks. Services like Cyvers and Lookonchain offer tracking for regulators. Vietnam’s use of face scans to break a $39 million laundering ring shows high-tech enforcement power. These actions have mixed effects on adoption, possibly scaring off investors over privacy but drawing big players with lower risks.
We analyze tax delinquents’ coin transaction history through crypto-tracking programs, and if there is suspicion of offline concealment, we will conduct home searches and seizures.
NTS spokesperson
AI tools can analyze patterns in hiring data and on-chain transactions to catch anomalies early, stopping breaches before they happen.
Deddy Lavid of Cyvers
Global Regulatory Convergence and Future Outlook
The worldwide crypto rulebook is shifting toward stricter oversight. British Columbia’s mining ban, Kazakhstan’s platform shutdowns, Australia’s ATM limits, the UK’s ETN unban, and South Korea’s grabs highlight this trend. Global coordination is growing through frameworks like the EU’s MiCA regulation. Regional differences remain due to economies and politics. Tech progress in blockchain analysis and AI tracking strengthens regulatory muscle. Contrasting views range from supportive setups in the UAE to restrictive ones in Vietnam. Balanced, risk-focused approaches are becoming best practices. The future points to more mature regulations, with clearer systems likely to reduce confusion and attract big investors.
If passed, Masak could freeze or close accounts suspected of illicit use across payment systems, electronic money institutions, banks, and cryptocurrency exchanges.
Bloomberg report
The surge in crypto adoption also led to an increase in crypto-related tax evasion cases in the country.
Hankook Ilbo report
