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In 2026, global digital asset laws will move from enforcement to operation, with a primary focus on stablecoin oversight, tokenized real-world assets, and tax compliance. Key changes from the US, China, and UAE during February include:
summary
From experimentation to enforcement: In 2026, digital asset policy will move from experimentation to operational law centered around stablecoins, tokenized RWA, and tax compliance. US advances market structure clarity: The Clarity Act is moving towards finalization, aimed at formalizing CFTC oversight and strengthening US leadership in crypto infrastructure. Diversification of global models: China has tightened state controls on e-CNY and banned most RWAs, while Hong Kong and the UAE are expanding their licensing regimes and regulated stablecoin frameworks.
US
In 2026, U.S. cryptocurrency law will enter a transformation phase focused on finalizing the market structure and enacting the first major federal digital asset law. The US Clarity Act, which is scheduled to go into effect in 2026, is a proposed US law aimed at establishing a regulatory framework for digital assets, primarily by giving the Commodity Futures Trading Commission jurisdiction over most digital assets. William Quigley, crypto and blockchain investor and co-founder of WAX and Tether (USDT), explains:
“The Transparency Act, expected to be enacted this year, aims to differentiate between products and securities and requires exchanges and dealers to register with the CFTC and comply with consumer protections.”
Treasury Secretary Scott Bessent called for a “spring signature” on the bill, noting the urgent need to pass the bill before the political window closes due to the 2026 midterm elections.
Current legislative status of transparency laws
China
During February, Chinese authorities tightened rules on digital payments through the Sovereign Digital Yuan (e-CNY) and controlled tokenization projects. The new regulations prohibit the unauthorized issuance of renminbi-pegged stablecoins (both domestic and offshore), mandate strict vetting of tokenized real-world assets, and strengthen the dominance of state-backed electronic renminbi. Here are the key details about China’s 2026 stablecoin regulations:
Prohibition of unauthorized stablecoins: A notification issued by eight government agencies on February 6, 2026 reiterated that all virtual currency activities are illegal, specifically targeting stablecoins that replicate sovereign money. Yifan He, Founder and CEO of Red Data Tech, explained:
“I think the most important thing is that the authorities have removed stablecoins from the definition of cryptocurrencies. If you compare the two with the definition from last November, stablecoins are no longer mentioned alongside cryptocurrencies and RWA. This is a major policy shift regarding stablecoins, which could mean allowing Chinese banks in Hong Kong to apply for a Hong Kong stablecoin license.
Ban on stablecoins pegged to the Yuan: The new regulations prohibit any entity (including foreign companies) from issuing stablecoins offshore pegged to the Renminbi (RMB) without explicit approval.
Offshore Restrictions: Entities within China and their subsidiaries are strictly prohibited from issuing virtual currencies or conducting RWA tokenization outside of China without consent. Mr. Yifan added:
“Collaboration with illegal cryptocurrency businesses from within China, including promotion, IT development, and advice, even for projects outside China, will face severe criminal penalties. This takes it to the next level.”
RWA Tokenization Rules: Some market participants foresee the possibility of a regulatory framework for tokenized real-world assets (RWA), but the 2026 rules impose strict oversight on this area, with RWA tokenization requiring approval, especially when land-based assets are involved. Yifan explained:
“The circular states that RWA is completely prohibited. For the past two days, many in the RWA industry have been trying to confuse people with RWA and ‘tokenized security’ and claiming that the Chinese government has officially given a clear path to legalizing RWA, but that is not the case. That path is now a total ban.”
Nevertheless, “this provides a clear path to ‘tokenized securities.’” This is the bright side of the circular. However, since this concerns “securities”, issuance and trading must go through a licensed entity. I don’t see this creating any opportunities for the market, for technology companies, for cryptocurrency companies. This will be new business for existing underwriters and stock exchanges. IPOs and fundraising will be easier than ever. “One particularly important necessary step is that the owners of the assets to be ‘tokenized’ must obtain CSRC approval, which is literally the exact same procedure for Chinese companies to list on foreign stock markets,” Yifan pointed out.
Separation from Hong Kong: While mainland China maintains strict bans, Hong Kong continues to pursue a separate and careful pilot program for regulated and licensed stablecoin issuance, which is expected to be under strict supervision.
Hong Kong has now introduced a comprehensive multi-layered regulatory framework for digital assets, with several key legislative milestones scheduled for 2026. The government aims to solidify the city’s position as a global digital asset hub by extending licensing requirements to nearly all types of crypto service providers and bringing tax transparency in line with international standards.
For 2026, Hong Kong has prioritized the regulation of previous “over-the-counter” (OTC) and advisory services.
New Licensing Bill: The regulator plans to submit a bill to the Legislative Council in 2026 that would establish a licensing regime for four new categories: virtual asset (VA) trading (including OTC desks), VA custodians, VA advisory services, and VA asset management. Stablecoin License: Following the passage of the Stablecoin Ordinance 2025, the Hong Kong Monetary Authority (HKMA) plans to issue the first batch of official stablecoin licenses in the first quarter of 2026. Banking Standards: From January 1, 2026, Hong Kong will fully implement the Basel Committee Standards for Cryptoassets, which govern how banks manage capital requirements and credit risk when dealing with digital assets. Tax Free: Hong Kong is moving towards greater transparency in tax compliance while maintaining a competitive “no capital gains” environment. The government plans to submit a bill in 2026 that will formally expand the tax exemption for funds and family offices to include “digital assets,” and promises to effectively reduce the tax rate on cryptocurrency profits to 0% for these qualified institutional investors. Implementation of CARF: The legislation to implement the OECD’s Crypto Asset Reporting Framework (CARF) is expected to be finalized in 2026.
united arab emirates
As of February 2026, the UAE has strengthened its regulatory framework for cryptocurrencies, with the Dubai Financial Services Authority (DFSA) updating its rules on January 12, 2026, transferring the suitability assessment of tokens to companies licensed by the regulator. The Central Bank of the United Arab Emirates (CBUAE) also approved a dirham-backed stablecoin for institutional investors on February 13, 2026. The new rules aim to increase market flexibility while ensuring high standards of integrity for digital asset service providers.
DIFC Update (DFSA): From January 12, 2026, the DFSA has removed the “Approved Crypto Tokens” list, requiring companies to conduct their own due diligence, evaluation, and monitoring of tokens prior to listing.
Stablecoin Regulation: The CBUAE has approved the launch of a dirham-backed stablecoin (DDSC) on the ADI chain for institutional, payments and settlement use cases, effective February 13, 2026. Erhan Karaman, former editor-in-chief of Cointelegraph Turkey, said:
“I don’t see a big impact on the use of stablecoins in the MENA region, simply because stablecoins are used here as a ‘survival tool’ rather than a trading asset. I know that in the Western Hemisphere, stablecoins are the main tool for crypto on-ramping and off-ramping (i.e. first buying USDT and then using it for trading). In contrast, people in MENA are using stable coins as a gateway across borders.” b) To participate as an individual in the global job market. ”
He added: “Imagine: just to start working for a foreign company (to receive USD or EUR), a freelancer has to submit multiple legal documents such as a ‘bank confirmation’. Stablecoins remove that barrier. When finding a job that pays in USDT, the only thing they ask about your financial situation is your cryptocurrency wallet address. I believe that’s making a huge difference for businesses and people who don’t have a bank account. ”
Investor protection: Protection of private customers remains strict, with mandatory suitability assessments and bans on certain marketing practices.
Taxation in 2026: Revenue-generating crypto activities are subject to corporate tax, but crypto transfers are generally exempt from VAT and mining rewards are treated as taxable income.
Compliance and Licensing: According to a February 16, 2026 report, UAE regulators have focused on institutional-level compliance and the prevention of financial crimes, and emphasized robust governance regarding licensing.
