The Shifting Sands of Cryptocurrency Regulation: A Path Towards Global Cooperation

The growth of cryptocurrencies has raised critical questions for global financial governance. As digital assets challenge regulatory boundaries and national monetary sovereignty, multilateral responses have become increasingly necessary. This report examines global efforts to regulate cryptocurrencies, focusing on the roles of the Financial Action Task Force (FATF), the Financial Stability Board (FSB), and the Basel Committee on Banking Supervision (BCBS). While these institutions have developed important standards on anti-money laundering, financial stability, and bank exposure, their effectiveness is hindered by limited transparency, non-binding instruments, and uneven implementation. Additionally, the United States’ recent pivot towards a more crypto-friendly stance under the second Trump administration risks weakening multilateral cooperation at a time when coordination is increasingly vital. In contrast, the European Union has maintained a risk-averse approach aligned with multilateral norms and continues to advance internal regulation through MiCA and the Digital Euro. This report calls for stronger EU leadership in sustaining effective global crypto governance.