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Blockchain’s Next Phase: Regulatory Shifts Powering Innovation

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Blockchain’s Next Phase: Regulatory Shifts Powering Innovation

Unlocking Blockchain’s Future Through Regulatory Clarity

Blockchain technology has evolved from a niche innovation into a transformative force reshaping finance, logistics, healthcare, and governance. According to a 2023 report by Grand View Research, the global blockchain technology market is expected to reach $1.43 trillion by 2030, expanding at a CAGR of approximately 90%.
However, the momentum of Web3 adoption has often been slowed by one major obstacle: regulatory uncertainty.
That tide is turning. Around the world, governments and institutions are introducing regulatory clarity that is unlocking blockchain’s next phase—from legal frameworks for tokenization and crypto exchanges to sandbox environments encouraging real-world blockchain applications.
This blog explores the global regulatory landscape shaping Web3’s evolution, highlights how institutions are responding, and offers predictions on what’s next for blockchain compliance.
blockchain technology market
Blockchain Technology Market

1. Key Regulatory Shifts Driving Mainstream Blockchain Adoption

United States
In July 2023, the Financial Innovation and Technology for the 21st Century Act (FIT21) passed the U.S. House Financial Services Committee. The bill aims to clarify regulatory oversight of digital assets by defining the respective roles of the SEC and CFTC, streamlining how tokens are classified and how custody and trading platforms are governed.
In early 2025, the bipartisan GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins) was introduced in the Senate to create a national framework for payment stablecoins. It requires 1:1 reserves, independent audits, and strong AML compliance from issuers.
In March 2025, the Senate Banking Committee approved the GENIUS Act by an 18–6 vote, signaling strong bipartisan momentum toward consistent federal regulation of blockchain-based financial products (Mayer Brown, 2025).
European Union
In April 2023, the EU passed the Markets in Crypto-Assets Regulation (MiCA), which takes effect in 2024. MiCA provides a comprehensive legal framework for crypto assets, with specific provisions for stablecoins, exchange licensing, and consumer protection.
Asia-Pacific
Hong Kong: In 2023, Hong Kong legalized retail crypto trading through a new licensing regime for virtual asset trading platforms, positioning itself as a global Web3 hub. According to a DLA Piper analysis, the move was accompanied by strengthened investor protection rules introduced by the Securities and Futures Commission (SFC), which began approving licenses for compliant platforms — further solidifying Hong Kong’s position as a trusted and forward-looking jurisdiction for blockchain and digital asset development.
Singapore: The Monetary Authority of Singapore (MAS) continues to evolve its Payment Services Act to support innovation in crypto and digital finance while maintaining market integrity. In 2023, MAS introduced new measures for digital payment token services — including regulatory provisions for custodial wallet providers and mandatory safeguards for user funds. According to MAS’ official release, these updates reflect Singapore’s commitment to fostering responsible crypto innovation through regulatory clarity, reinforcing its role as a leading hub in Asia’s digital asset ecosystem.
Global Leaders Shaping Blockchain Policy
Global Leaders Shaping Blockchain Policy
United Arab Emirates (UAE)

The UAE has rapidly established itself as a global leader in blockchain regulation and adoption. In November 2024, the country exempted all crypto transactions from value-added tax (VAT), aligning them with traditional financial services and sending a strong pro-innovation signal to the market, according to (CoinDesk, 2024).

To further attract blockchain companies, Dubai’s DMCC and Abu Dhabi’s ADGM offer dedicated free zones with tailored crypto licensing frameworks, fostering regulatory clarity for exchanges and startups alike.

This strategic positioning has paid off: hedge fund giant Brevan Howard confirmed that a significant portion of its crypto trading activity is now based in the UAE, citing the country’s clear and sensible regulations (Reuters, 2024).

Pakistan

In March 2025, Pakistan established the Pakistan Crypto Council (PCC) under the supervision of the Finance Ministry to oversee the integration of blockchain technology and digital assets into the nation’s financial system. This initiative aims to create a regulatory framework that fosters innovation while ensuring investor protection (The Express Tribune).

In April 2025, Changpeng Zhao (CZ), co-founder of Binance, was appointed as a strategic advisor to the PCC. His role focuses on shaping Pakistan’s crypto regulation, infrastructure, and adoption roadmap — reinforcing the country’s ambition to catch the next wave of blockchain innovation (The Economic Times).

India

India maintains a stringent tax regime for cryptocurrencies, imposing a 30% tax on gains and a 1% tax deducted at source (TDS) on all trades. Despite this, the country has witnessed a surge in crypto trading, particularly in smaller cities where young individuals are turning to digital assets to supplement their incomes amid limited job growth. ​(Reuters, 2025)

In 2025, India signaled a shift in its approach by advocating for global coordination on cryptocurrency regulation during its G20 presidency. The government engaged in discussions to develop a national crypto framework, emphasizing the need for a collective effort to address the challenges posed by digital assets. ​

Further highlighting its evolving stance, India is reviewing its cryptocurrency policies in response to global regulatory changes, including recent developments in the United States. This reassessment aims to align India’s approach with international standards and address the cross-border nature of crypto assets (Reuters, 2025).

2. Institutional Impact: How Enterprises Are Embracing Blockchain

With clearer regulatory guardrails, institutional adoption of blockchain has accelerated:

BlackRock , made headlines in March 2024 by launching the BlackRock USD Institutional Digital Liquidity Fund (BUIDL) on the Ethereum blockchain — marking the first tokenized fund from a major U.S. asset manager. The fund invests in U.S. Treasury bills and repo agreements, demonstrating how traditional assets are now entering blockchain rails. In March 2025, Securitize announced that the fund had surpassed $1 billion in assets under management (AUM), signaling a major milestone in the growth of the tokenization ecosystem (PR Newswire, 2025).
JPMorgan, through its rebranded blockchain unit Kinexys (formerly Onyx), is processing over $2 billion in daily notional volume for tokenized settlements. The platform has surpassed $1.5 trillion in cumulative value, signaling blockchain’s viability at enterprise scale (The Full FX, 2024).
Blockhain Adoptation by Institutions
Blockhain Adoptation by Institutions

3. The GENIUS Act & Global Policy Changes Shaping the Industry

Blockchain Regulation Shaping the Industry
Blockchain Regulation Shaping the Industry
As Web3 continues to mature, regulatory alignment is expanding beyond national borders. Governments and global bodies are increasingly working together to establish standards that ensure responsible blockchain innovation.
From National Acts to Global Collaboration: The United States’ introduction of the GENIUS Act and other nation-level frameworks signals a broader shift toward regulatory harmonization. While these developments have been covered in earlier sections, their influence extends well beyond national borders—laying the groundwork for globally aligned standards in the blockchain ecosystem.
Global Crypto Policy Roadmap (G20, FSB, IMF): In 2025, under India’s presidency, the G20 officially endorsed a joint crypto policy roadmap developed by the Financial Stability Board (FSB) and the International Monetary Fund (IMF). The roadmap outlines global priorities for crypto asset regulation, encouraging countries to establish consistent legal frameworks while managing financial stability risks.
IOSCO’s Global Standards for Crypto Markets: The International Organization of Securities Commissions (IOSCO) is actively setting cross-border regulatory standards for stablecoins, exchanges, and custody providers. These efforts are essential to eliminate jurisdictional arbitrage and enable secure, scalable Web3 innovation across markets.
Together, these efforts reflect a global regulatory convergence—transforming fragmented national strategies into coordinated global action. This not only supports cross-border compliance but lays the foundation for blockchain’s seamless integration into the global financial system.

4. What’s Next? Predictions on the Future of Blockchain Regulation

As global policy frameworks continue to evolve, the focus of blockchain regulation is shifting from foundational groundwork to practical execution. While efforts like the G20 crypto roadmap and IOSCO standards represent major strides toward global alignment, there remain crucial areas where regulation is expected to expand and deepen.

Cross-Border Harmonization

Although global regulatory alignment is underway, true cross-border harmonization remains an ongoing challenge—particularly when it comes to enabling the seamless exchange of tokenized assets across jurisdictions and blockchain networks. A 2024 report by Axelar Foundation and Metrika, developed in collaboration with Citi, Deutsche Bank, Mastercard, and Northern Trust, underscores the need for unified frameworks that can facilitate interoperability across chains and national borders (Reuters, 2024).

Reflecting this momentum, South Korea announced it will begin regulating the cross-border trade of virtual assets in 2025, requiring firms to register with authorities and report to the Bank of Korea—illustrating growing global consensus around cross-border oversight (Reuters, 2024).

AI x Blockchain: Regulating the Intersection

As artificial intelligence and blockchain converge, regulators are being forced to confront new challenges around explainability, ethics, and automated decision-making. Blockchain offers a decentralized, tamper-proof foundation that can improve the transparency of AI systems. However, combining the two technologies—especially in applications like smart contracts and autonomous agents—raises regulatory questions about liability, data privacy, and auditability.

A recent preprint from arXiv highlights how blockchain can support AI transparency, but also flags the need for clearer accountability standards. Meanwhile, in the financial sector, the lack of explainability in AI-based decisions (e.g., in credit scoring) is pushing regulators worldwide to prioritize policies that ensure ethical usage, audit trails, and compliance with laws like GDPR.

ext phase lies in the tokenization of real-world assets (RWAs)—from real estate and government bonds to commodities and precious metals. A standout example is Lexim Gold, a platform offering fractional ownership of physical gold through blockchain tokens. Developed in collaboration with Codora, Lexim Gold leverages secure smart contracts and built-in compliance logic to ensure transparency, auditability, and seamless integration into regulated environments. Based in Dubai—a jurisdiction known for its forward-looking crypto regulations—Lexim Gold demonstrates how regulatory-ready infrastructure can power scalable tokenization solutions.

Globally, governments are following suit. Regulatory sandboxes in Switzerland, Japan, and the UAE are actively enabling the tokenization of real-world assets through controlled experimentation and legal frameworks.

According to a report by BCG and ADDX, tokenization could unlock up to $16 trillion in value by 2030, ushering in a new era of programmable, fractional, and globally tradable financial instruments.

As regulators catch up with innovation, the next chapter of blockchain will be shaped by how well legal systems evolve to accommodate new paradigms—from AI-augmented smart contracts to tokenized economies that span continents. Clarity, interoperability, and compliance will be the pillars driving global adoption.

Conclusion

The blockchain industry is no longer waiting for regulation—it’s being powered by it.

From the FIT21 Act in the U.S. to the MiCA framework in Europe, and from UAE’s tax-free blockchain zones to Pakistan’s strategic leap with CZ, regulators across the globe are shifting from resistance to enablement—ushering in a new era of clarity and collaboration.

For institutions, this means a more stable investment environment. For developers, it opens fertile ground for compliance-first innovation. And for users, it builds trust in the reliability and safety of blockchain-powered services.

At Codora, we stand at the intersection of innovation and compliance. Whether you’re building secure blockchain infrastructure, launching a tokenization project like Lexim Gold, or exploring AI-integrated smart contracts, our solutions are designed to meet today’s evolving regulatory demands.

Codora continues to drive real-world impact—engineering blockchain platforms, enabling tokenized finance, and building secure, scalable smart contract infrastructure that aligns with today’s evolving regulatory standards.

Whether you’re building your first tokenized product, launching a DeFi protocol, or modernizing legacy systems with Web3 infrastructure—we’re here to help.
Reach out to us at hello@codora.io for your blockchain development, smart contract engineering, and tokenization project needs.

The next phase of blockchain is here—and it’s built on clarity, collaboration, and code.

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