International Coordination on Crypto Regulation: How Countries Are Aligning Rules for Digital Assets

When Bitcoin first appeared, no one thought it would need a global rulebook. But today, with trillions in value moving across borders in seconds, countries can’t afford to regulate crypto in isolation. A crypto exchange in Singapore, a stablecoin issuer in Switzerland, and a trader in Texas all interact on the same network. If one country says it’s legal and another says it’s a crime, chaos follows. That’s why international coordination on crypto regulation isn’t just important-it’s urgent.

Why Global Rules Matter for Crypto

Crypto doesn’t care about borders. A wallet can be accessed from anywhere. A smart contract runs on a global network. A stablecoin pegged to the US dollar can be bought by someone in Nigeria, held in Dubai, and traded in Tokyo-all in minutes. But laws? They stop at borders. That mismatch created a Wild West of enforcement. Some countries banned crypto. Others let it run free. Investors got confused. Exchanges got fined. Scams thrived.

The result? Market instability. Investor losses. And a growing risk that crypto could destabilize traditional finance. That’s why regulators realized: if they don’t work together, they’ll keep playing catch-up. And the losses will keep piling up.

The FSB’s Global Blueprint

The Financial Stability Board (FSB) stepped in as the main coordinator. In July 2023, it released its first full set of global recommendations for crypto regulation. The core idea? Same activity, same risk, same regulation. That means if a crypto firm offers lending, staking, or trading, it should be held to the same standards as a bank doing the same thing.

By October 2024, 93% of FSB member countries had plans to update their crypto rules. Eighty-eight percent were already working on rules for stablecoins-the digital tokens meant to hold steady value. And over half expected to fully align with the FSB framework by the end of 2025.

This isn’t just talk. The FSB’s framework directly addresses risks like sudden runs on stablecoins, where panic causes mass withdrawals and collapses. It also pushes for better oversight of decentralized finance (DeFi) platforms, which often hide behind code and anonymity. Without global standards, bad actors just move to the weakest jurisdiction. Coordination closes those loopholes.

The UK-US Tech Propensity Deal

While the FSB sets the tone, real action is happening bilaterally. The biggest breakthrough came on September 18, 2025, with the UK-US Tech Propensity Deal. This isn’t a treaty. It’s a working agreement between two of the world’s most powerful financial markets to align their crypto rules.

The deal focuses on three things: clarity for businesses, shared enforcement tools, and joint innovation testing. For the first time, crypto firms operating in both countries can expect similar rules around licensing, reporting, and asset classification. The SEC and CFTC in the US and the FCA in the UK are now sharing data, coordinating inspections, and even testing joint regulatory sandboxes.

Why does this matter? Because the US and UK together control over 40% of global crypto trading volume. If they agree on what’s allowed, it becomes the de facto global standard. Companies don’t want to build five different compliance systems. They’ll build one that meets the strictest common standard-and that’s what the UK-US deal is pushing toward.

Europe’s MiCA: The Risk-Averse Model

The European Union took a different path. Its Markets in Crypto-Assets (MiCA) regulation, fully implemented in 2025, is the world’s first comprehensive, binding crypto law. It requires every crypto issuer to publish a white paper. It forces exchanges to hold customer assets separately. It bans anonymous trading. It even regulates algorithmic stablecoins with extreme caution.

MiCA is strict. Some call it slow. But it’s predictable. Unlike the US, where regulators fight over jurisdiction, MiCA gives clear rules upfront. Firms know exactly what they need to do to operate legally across all 27 EU countries.

The EU isn’t copying the UK-US model. It’s watching it. And so far, it’s sticking to its own. That’s creating a two-track system: one based on innovation and flexibility (US/UK), and one based on control and protection (EU). Businesses now have to choose: adapt to MiCA’s rules for Europe, or follow the looser but riskier US/UK path for global markets.

IOSCO and FATF: The Silent Enforcers

Behind the scenes, two other groups are quietly shaping global rules. The International Organization of Securities Commissions (IOSCO) issued 18 policy recommendations in November 2023. These aren’t laws, but they’re binding for its 130 member regulators. They cover everything from how exchanges should handle custody to how to monitor DeFi protocols.

Then there’s the Financial Action Task Force (FATF). Its Recommendation 15, updated in 2025, forces crypto firms to collect and share customer data-just like banks do under anti-money laundering rules. By mid-2025, over 120 countries had adopted these rules. FATF is now auditing countries on compliance, with public reports naming those falling behind.

These aren’t flashy headlines. But they’re the real backbone of global coordination. Without FATF’s anti-money laundering rules, crypto would be a haven for criminals. Without IOSCO’s investor protections, retail traders would be left exposed.

The Big Gaps Still Left

Despite progress, big problems remain. First: enforcement. Just because a country has rules doesn’t mean it can enforce them. Many emerging economies lack the staff, tech, or legal power to monitor crypto firms. Offshore jurisdictions still offer shell licenses to unregulated platforms.

Second: stablecoins. Even with FSB guidelines, there’s no global standard for what backs them. Are reserves held in cash? Treasury bonds? Commercial paper? One issuer’s “stable” coin could be a time bomb if its assets suddenly lose value. The GENIUS Act in the US is trying to fix this, but it’s still in draft form.

Third: central bank digital currencies (CBDCs). Over 90% of central banks are now testing their own digital money. But what happens when a CBDC from China meets a private stablecoin from the US? Who sets the technical standards? Who decides if they can interact? No one has answers yet.

What’s Next? Sandboxes, Shared Data, and Real-Time Oversight

The next phase of coordination isn’t about signing more papers. It’s about building tools. The SEC’s Crypto Taskforce, led by Commissioner Pierce, proposed a cross-border regulatory sandbox-a shared testing zone where firms can try new products under rules agreed by multiple countries. No official launch yet, but the idea is gaining traction.

Regulators are also talking about shared data platforms. Imagine if the SEC, FCA, and EU regulators could see the same transaction flows in real time. No more delays. No more jurisdictional blind spots. That’s the goal.

For now, progress is uneven. But the direction is clear: crypto won’t be tamed by one country. It will be shaped by how well the world can work together.

What This Means for You

If you’re a trader: expect more consistent rules. Less surprise bans. More clarity on what’s legal in major markets.

If you’re a business: you’ll need to comply with multiple standards. MiCA for Europe. UK-US rules if you serve those markets. And FATF rules everywhere. There’s no single global license yet-but the path is getting clearer.

If you’re a crypto skeptic: this is the moment. Coordination doesn’t mean crypto will become mainstream overnight. But it does mean the wild risks are being addressed. The bad actors are being pushed out. The system is becoming safer.

Final Thought: Coordination Isn’t Uniformity

The world won’t have one crypto rulebook. Different countries have different values. The US wants innovation. The EU wants safety. China wants control. But coordination doesn’t mean sameness. It means alignment on the basics: transparency, accountability, and protection.

The goal isn’t to make everyone think the same. It’s to make sure no one can hide behind a border.