Digital asset law changes in the USA, China, and the UAE

In 2026, world digital asset legal guidelines are shifting from implementation to operational, with a serious concentrate on stablecoin oversight, tokenized real-world belongings, and tax compliance. Listed below are the important thing adjustments throughout February from the USA, China, and the United Arab Emirates.

The US

In 2026, U.S. cryptocurrency laws is coming into a transformative section targeted on finalizing market construction and implementing the primary main federal digital asset legal guidelines. The U.S. Readability Act, aimed toward implementation in 2026, is proposed U.S. laws designed to determine a regulatory framework for digital belongings, primarily granting the Commodity Futures Buying and selling Fee jurisdiction over most digital belongings. As William Quigley, a cryptocurrency and blockchain investor and co-founder of WAX and Tether (USDT), defined:

“The Readability Act, which is anticipated to turn out to be legislation this 12 months, goals to tell apart between commodities and securities, requiring exchanges and sellers to register with the CFTC and cling to client protections.” 

Treasury Secretary Scott Bessent known as for a “spring signing” of the invoice, noting that the 2026 midterm elections create important urgency to cross the laws earlier than the political window closes.

Present legislative standing of the Readability Act

China

Throughout February, Chinese language authorities strengthened their guidelines on digital funds by way of the sovereign digital yuan (e-CNY) and managed tokenization initiatives. New laws prohibit the unauthorized issuance of yuan-pegged stablecoins (each domestically and offshore) and mandate strict vetting for tokenized real-world belongings, reinforcing the dominance of the state-backed e-CNY. Key particulars relating to China’s 2026 stablecoin laws are as follows:

Ban on unauthorized stablecoins: A February 6, 2026, discover issued by eight authorities companies reiterated that each one digital foreign money actions are unlawful, particularly focusing on stablecoins that replicate sovereign cash. Yifan He, the founder and CEO of Pink Information Tech, defined: 

“I feel probably the most important side is that the authorities eliminated stablecoin from the definition of cryptocurrencies. In case you evaluate these two to the one from final November, stablecoin is now not talked about alongside cryptocurrencies and RWAs. The one point out is to state that ‘stablecoin pegged with fiat capabilities partially as cash’. It is a large coverage shift relating to stablecoin. This may imply greenlighting Chinese language banks in Hong Kong to use for the HK stablecoin license.”

No yuan-pegged stablecoins: The brand new laws ban any entity (together with international ones) from issuing stablecoins pegged to the renminbi (RMB) offshore with out express approval.

Offshore restrictions: Home Chinese language entities and their subsidiaries are strictly prohibited from issuing digital currencies or conducting RWA tokenization exterior China with out consent. As Yifan added:

“Serving to unlawful crypto enterprise from inside China (even for initiatives exterior China), together with promotion, IT growth, and advisory, will face extreme legal punishment. This goes subsequent stage.”

RWA tokenization guidelines: Whereas some market contributors see potential for a regulatory framework for tokenized, real-world belongings (RWA), the 2026 guidelines impose strict oversight on this sector, requiring approval for any RWA tokenization, particularly if it entails onshore belongings. As Yifan He defined: 

“Within the circulars, RWAs are completely banned. Previously two days, many individuals from the RWA business have tried to confuse folks with RWA and ‘tokenized safety’ and declare that the Chinese language authorities formally provides a transparent path to legalize RWAs. It isn’t. The trail is now a complete ban.”

However, “it provides a transparent path for ‘tokenized securities.’ That is the brilliant aspect of the circulars. However as a result of it’s about ‘securities,’ the issuance and buying and selling should undergo licensed entities. I don’t assume this brings any alternatives to the market, tech corporations, or crypto corporations. This can be a brand new enterprise for current underwriters and inventory exchanges. The IPOs and fundraising received’t be any simpler. Particularly, one main required step is that the house owners of the belongings to be ‘tokenized’ should obtain approval from CSRC, actually precisely the identical procedures as for Chinese language corporations to be listed in international inventory markets,” identified Yifan.

Separation from Hong Kong: Whereas mainland China maintains a strict ban, Hong Kong continues to pursue a separate, cautious pilot program for regulated, licensed stablecoin issuance, although that is anticipated to be beneath tight supervision. 

Hong Kong is at the moment implementing a complete multi-layered regulatory framework for digital belongings, with a number of important legislative milestones scheduled for 2026. The federal government goals to solidify town’s place as a worldwide digital asset hub by increasing licensing necessities to almost all kinds of crypto service suppliers and aligning tax transparency with worldwide requirements. 

For 2026, Hong Kong has prioritized the regulation of beforehand “over-the-counter” (OTC) and advisory companies:

• New licensing invoice: Regulators plan to submit a invoice to the Legislative Council in 2026 to determine licensing regimes for 4 new classes: Digital Asset (VA) Dealing (together with OTC desks), VA Custodians, VA Advisory Companies, and VA Asset Administration.
• Stablecoin licenses: Following the passage of the Stablecoins Ordinance in 2025, the Hong Kong Financial Authority (HKMA) is anticipated to challenge the primary batch of official stablecoin licenses within the first quarter of 2026.
• Banking requirements: Efficient January 1, 2026, Hong Kong will totally implement the Basel Committee requirements for crypto belongings, governing how banks handle capital necessities and credit score dangers when coping with digital belongings.
• Tax exemptions: Hong Kong is shifting towards excessive transparency for tax compliance whereas sustaining its aggressive “no capital beneficial properties” atmosphere.  The federal government plans to submit a invoice in 2026 to formally broaden tax exemptions for funds and household places of work to incorporate “digital belongings,” basically promising a 0% tax fee on crypto income for these qualifying institutional buyers.
• CARF implementation: Laws to implement the OECD’s Crypto-Asset Reporting Framework (CARF) is slated for completion in 2026.

The United Arab Emirates

As of February 2026, the UAE has strengthened its crypto regulatory framework, with the Dubai Monetary Companies Authority (DFSA) updating its guidelines on 12 January 2026 to shift token suitability assessments from the regulator to licensed companies. The Central Financial institution of the UAE (CBUAE) additionally authorised a dirham-backed stablecoin for institutional use on February 13, 2026. The brand new guidelines goal to extend market flexibility whereas guaranteeing excessive requirements of integrity for digital asset service suppliers. 

DIFC Updates (DFSA): Efficient January 12, 2026, the DFSA eradicated the “Acknowledged Crypto Tokens” record, requiring companies to conduct their very own due diligence, evaluation, and monitoring of tokens earlier than itemizing.

Stablecoin regulation: The CBUAE authorised the launch of a Dirham-backed stablecoin (DDSC) on the ADI Chain for institutional, cost, and settlement use circumstances as of 13 February 2026.  Erhan Kahraman, Former Chief Editor of Cointelegraph Turkey, mentioned: 

“I don’t see any main affect on using stablecoins within the MENA area, just because right here, it’s used extra as a ‘survival software’ slightly than a buying and selling asset. I do know that for the Western Hemisphere, stablecoins are the primary software for on- and off-ramping cryptocurrencies (i.e., you first purchase USDT after which use it for buying and selling). In distinction, folks in MENA use stablecoins as a gateway to a) cross-border funds/remittances and b) to affix the worldwide job market as people.” 

He continued: “Think about this: a freelancer wants to offer a number of authorized paperwork, equivalent to a ‘Financial institution Affirmation Letter,’ solely to start out working for a international firm (to obtain USD or Euro). That is extremely tough to offer for underbanked or unbanked populations discovered within the MENA area. Stablecoins remove that barrier. If you discover a job that pays in USDT, all they ever ask you about your monetary scenario is your crypto pockets handle. I imagine that’s making an enormous distinction for the underbanked inhabitants.”

Investor safety: Retail consumer protections stay strict, with obligatory appropriateness assessments and a ban on sure advertising and marketing practices.

Taxation 2026: Crypto exercise producing revenue is topic to company tax, whereas transfers of crypto are usually exempt from VAT, and mining rewards are handled as taxable revenue.

Compliance and licensing: UAE regulators are closely targeted on institutional-grade compliance and stopping monetary crime, emphasizing sturdy governance for licensing, in keeping with studies from 16 February 2026.