Institutional crypto regulations around the world

Crypto regulatory changes are consistently making headlines. Institutional crypto has its own set of rules and regulations, some of which differ from retail crypto regulations. And while some countries and central banks welcome crypto trading and assets, they have not applied the same enthusiasm for any institutional involvement with digital assets. We’ve rounded up a few updates on recent changes in institutional crypto regulatory frameworks around the world as of 2025. 

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South Korea

South Korea announced its most recent change in institutional crypto policy by allowing institutions to interact with digital assets for the first time since it was banned in 2017. Since December of that year, the Financial Services Commission (FSC) stopped institutional investors from investing in virtual asset markets, citing market volatility and price uncertainty. 

The FSC announced in mid-February that that ban would soon be lifted, in a phased approach. 

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Japan

South Korea’s nearby neighbor, Japan, has increasingly expanded their crypto regulations beyond retail coin usage. In 2024, Japan lifted regulations that prevented institutional investors from utilizing digital assets. The Limited Partnership Act for Investment meant that crypto assets were added to the list of assets that investment limited partnerships could acquire or hold, although it still limits them from investing with crypto assets. 

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Honduras

Several other nations have banned institutional crypto trading within their borders. Honduras, for instance, enacted a ban in 2024. The reason the Honduras Central Bank and the Honduras National Banking and Securities Commission (CNBS) gave for the ban was the sector’s lack of regulation and concerns about fraud. There are no regulations for any kind of crypto in Honduras, institutional or otherwise. The only exception to these rules is the Prospera special economic zone on the island of Roatan, where Bitcoin is legal tender and can be used to pay taxes and make payments. 

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Argentina 

Argentina has long been known as a crypto-friendly country. However, after pressure from the International Monetary Fund, a number of friendly policies were rolled back, including institutional interactions with crypto. In 2022, the Central Bank of Argentina said, “Financial institutions can’t transact or facilitate transactions to their clients in digital assets trading, including crypto assets and those whose income is determined by crypto’s value fluctuation.” This meant a complete ban, as there were no regulated crypto assets in the country at the time. 

However, 2024 saw a reversal of many of these opinions and legislations. The CNV (the National Securities Commission) announced at the end of 2024 that it would now allow Bitcoin and other cryptocurrencies into Open Common Investment Funds, officially opening the door to digital assets working with and alongside traditional investment products in the country for the first time. 
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European Union

The Markets in Crypto Assets (MiCA) regulatory framework is now being used across the European Union. This has not only had an impact on retail crypto and the day-to-day trading and owning of cryptocurrencies and digital assets but also institutional. The framework allowed for the inclusion of crypto-assets in investment products, and opened up new opportunities for interested institutional investors. The creation of this framework has led to enhanced regulatory confidence. 
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2025 and institutional crypto 

Globally, regulations around institutional crypto remain in almost constant flux. Even in markets in which governments have adopted a digital assets-friendly approach, institutional frameworks are often more complicated or slower to be adopted. This is because institutions require much more clear regulations, often involve larger amounts of assets, and require heightened security to ensure their safety.  2025 will be an essential year for the further development of institutional crypto and how it is regulated.

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