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By 2026, global digital asset regulations are changing from implementation to performance, with a greater focus on stablecoin oversight, tokenized real-world assets, and tax compliance. Here are the key changes during February from the United States, China, and the United Arab Emirates.
Summary
- From testing to enforcement: By 2026, digital asset policy is transitioning from pilots to active legislation with stablecoins, RWA tokens, and institutional tax compliance.
- The US pushes for market structure transparency: The Clarity Act is moving towards finalization, aimed at formalizing CFTC oversight and strengthening US leadership in the crypto infrastructure.
- Global models are different: China is tightening state control around e-CNY and banning most RWAs, while Hong Kong and the UAE are expanding licenses and regulating stablecoin structures.
the United States
In 2026, US cryptocurrency law enters a transition phase focused on finalizing market structure and implementing the first major digital asset laws. The US Clarity Act, which is intended to take effect in 2026, is a proposed US law designed to establish a regulatory framework for digital assets, primarily giving the Commodity Futures Trading Commission jurisdiction over many digital assets. As William Quigley, cryptocurrency and blockchain investor and founder of WAX and Tether (USDT), explains:
“The Clarity Act, which is expected to become law this year, aims to distinguish between commodities and securities, requiring exchanges and dealers to register with the CFTC and comply with consumer protections.”
Treasury Secretary Scott Bessent called for a “spring signing” of the bill, noting that the 2026 midterm elections create a greater urgency to pass legislation before the political window closes.
The current legal status of the Clear Law
| The body | Version | Status (as of Feb 16, 2026) |
| The house | HR 3633 | It passed (294-134) in July 2025 |
| Senate Agriculture | DCIA (S. 3755) | Updated at 12-11 on Jan 29, 2026 |
| Senate Banking | CLARITY Act (Senate Draft) | It is suspended; The markup has been postponed from January 14, 2026 |
China
In February, Chinese authorities tightened their rules on digital payments with the sovereign digital yuan (ie CNY) and token control projects. The new rules prohibit the unauthorized issuance of yuan-pegged stablecoins (both domestically and overseas) and mandate stricter inspections of real-world assets with the token, strengthening the governance of the government-backed e-CNY. Important details about China’s stablecoin regulations for 2026 are as follows:
Ban unauthorized stablecoins: The notification dated February 6, 2026, issued by eight government agencies reiterated that all virtual currency activities are illegal, targeting in particular stable coins that replicate state money. Yifan He, founder and CEO of Red Data Tech, explained:
“I think the most important aspect is that the authorities have removed stablecoin from the definition of hidden funds. If you compare the two with that of last November, stablecoin is no longer mentioned alongside cryptocurrency and RWAs. The only thing that is mentioned is that ‘stablecoin is stuffed with fiat activities in part as money’. This is a big change in policy regarding stablecoin. This may mean that the Hong Kong license is used for greenlighting banks of Chinese.”
No stablecoins have a yuan peg: The new rules prohibit any entity (including foreign) from issuing stablecoins pegged to renminbi (RMB) offshore without express permission.
Maritime restrictions: Domestic Chinese enterprises and their subsidiaries are strictly prohibited from issuing virtual currency or making RWA tokens outside of China without permission. As Yifan adds:
“Helping an illegal crypto business from inside China (even projects outside of China), including promotion, IT development, and consulting, will face severe criminal punishment. This is going to another level.”
RWA tokenization rules: While some market participants see the potential of a regulatory framework for tokenized, real-world assets (RWA), the 2026 regulations impose strict oversight on the sector, requiring approval of any RWA token, especially if it involves offshore assets. As Yifan He explains:
“In the circular, RWAs are completely banned. In the past two days, many people from the RWA industry have tried to confuse people about RWA and ‘branded security’ and said that the Chinese government is officially providing a clear path to legalize RWAs. It is not the case. The path is now completely banned.”
However, it “provides a clear path to ‘branded securities.’ This is the bright side of circles. But because it is about ‘securities,’ issuance and trading must go through licensed companies. I don’t think this brings opportunities to the market, technology companies, or crypto companies. This will be a new business for existing underwriters and stock exchanges. IPOs and fundraising will not be easy. In particular, one major step required is that owners of assets to be ‘tokenized’ must obtain approval from the CSRC, which are exactly the same procedures as Chinese companies to be listed on foreign stock markets,” Yifan noted.
Separation from Hong Kong: While mainland China maintains a strict ban, Hong Kong continues to pursue a separate, careful testing program for licensed stablecoin issuance, although this is expected to be subject to strict supervision.
Hong Kong currently operates a comprehensive, multi-layered regulatory framework for digital goods, with several key legislative measures planned for 2026. The government aims to strengthen the city’s position as a hub for global digital assets by expanding licensing requirements for almost all types of crypto service providers and harmonizing tax transparency with international standards.
By 2026, Hong Kong has prioritized pre-regulation of “over-the-counter” (OTC) and advisory services:
- New license fee: Regulators plan to submit a bill to the Legislative Council in 2026 to establish licensing rules for four new categories: Virtual Asset (VA) Transactions (including OTC desks), VA Custodians, VA Advisory Services, and VA Asset Management.
- Stablecoin Licenses: Following the passage of the Stablecoins Ordinance in 2025, the Hong Kong Monetary Authority (HKMA) is expected to issue the first batch of official stablecoin licenses in the first half of 2026.
- Banking standards: Starting January 1, 2026, Hong Kong will fully implement the Basel Committee’s standards on crypto assets, which govern how banks manage capital requirements and credit risks when dealing with digital assets.
- Tax exemption: Hong Kong is transitioning to higher transparency in tax compliance while maintaining its competitive “no profit” environment. The government plans to submit a bill in 2026 to legally expand the tax exemption for capital and family offices to include “digital assets,” essentially promising a 0% tax rate on crypto profits for these qualified institutional investors.
- Implementation of CARF: The legislation implementing the OECD’s Crypto-Asset Reporting Framework (CARF) is scheduled to be completed by 2026.
United Arab Emirates
As of February 2026, the UAE has strengthened its crypto regulatory framework, the Dubai Financial Services Authority (DFSA) is revising its regulations on January 12, 2026 to move the evaluation of the validity of tokens from the regulator to authorized firms. The Central Bank of the UAE (CBUAE) has also approved a dirham-based stablecoin for institutional use on February 13, 2026. The new rules aim to increase market flexibility while ensuring a high level of integrity for digital asset service providers.
DIFC Updates (DFSA): Effective January 12, 2026, the DFSA removed the list of “Recognized Crypto Tokens”, requiring firms to conduct due diligence, testing, and monitoring of tokens prior to listing.
Stablecoin Regulation: The CBUAE approved the introduction of a stablecoin (DDSC) based on the Dirham on the ADI Chain for institutional use, payment, and settlement cases from February 13, 2026. Erhan Kahraman, Former Editor-in-Chief of Cointelegraph Turkey, said:
“I don’t see a big impact on the use of stablecoins in the MENA region, because here, it is used more as a ‘survival tool’ than a trading asset. I know that in the Western Hemisphere, stablecoins are the main tool for cryptocurrencies on-and off-raping cryptocurrencies (i.e., you start buying USDT and use it for trading). In contrast, people using the MENA currency crossing gateway a) payments/withdrawals and b) joining the global job market as individuals.”
He continued: “Think about this: a freelancer needs to provide a lot of legal documents, like a ‘Bank Confirmation letter,’ just to start working for a foreign company (to accept USD or Euro). This is incredibly difficult to provide for unbanked or unbanked people located in the MENA region. Stablecoins remove that barrier. If you get a job that pays in USDT, I believe your financial address is cryptocurrency. It’s a big difference for people. those who are in need of money.”
Protection of investors: Customer protection for sales remains strong, with mandatory eligibility checks and the prohibition of certain marketing practices.
Tax for 2026: Crypto activity that generates income is subject to corporate tax, while crypto transfers are generally exempt from VAT, and mining rewards are considered taxable income.
Licensing compliance: UAE regulators are focusing on institutional compliance and financial crime prevention, emphasizing strict governance for licensing, according to reports dated February 16, 2026.
