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In 2026, global digital asset laws are shifting from implementation to operational, with a major 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 experimentation to enforcement: In 2026, digital asset policy is shifting from pilots to operational law with stablecoins, tokenized RWAs, and tax compliance at the center.
- U.S. pushes market structure clarity: The Clarity Act advances toward finalization, aiming to formalize CFTC oversight and solidify US’ leadership in crypto infrastructure.
- Diverging global models: China tightens state control around e-CNY and bans most RWAs, while Hong Kong and the UAE expand licensing regimes and regulated stablecoin frameworks.
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The United States
In 2026, U.S. cryptocurrency legislation is entering a transformative phase focused on finalizing market structure and implementing the first major federal digital asset laws. The U.S. Clarity Act, aimed at implementation in 2026, is proposed U.S. legislation designed to establish a regulatory framework for digital assets, primarily granting the Commodity Futures Trading Commission jurisdiction over most digital assets. As William Quigley, a cryptocurrency and blockchain investor and co-founder of WAX and Tether ($USDT), explained:
“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 adhere to consumer protections.”
Treasury Secretary Scott Bessent called for a “spring signing” of the bill, noting that the 2026 midterm elections create significant urgency to pass the legislation before the political window closes.
Current legislative status of the Clarity Act
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China
During February, Chinese authorities strengthened their rules on digital payments through the sovereign digital yuan (e-CNY) and controlled tokenization projects. New regulations prohibit the unauthorized issuance of yuan-pegged stablecoins (both domestically and offshore) and mandate strict vetting for tokenized real-world assets, reinforcing the dominance of the state-backed e-CNY. Key details regarding China’s 2026 stablecoin regulations are as follows:
Ban on unauthorized stablecoins: A February 6, 2026, notice issued by eight government agencies reiterated that all virtual currency activities are illegal, specifically targeting stablecoins that replicate sovereign money. Yifan He, the founder and CEO of Red Data Tech, explained:
“I think the most significant aspect is that the authorities removed stablecoin from the definition of cryptocurrencies. If you compare these two to the one from last November, stablecoin is no longer mentioned alongside cryptocurrencies and RWAs. The only mention is to state that ‘stablecoin pegged with fiat functions partially as money’. This is a huge policy shift regarding stablecoin. This might mean greenlighting Chinese banks in Hong Kong to apply for the HK stablecoin license.”
No yuan-pegged stablecoins: The new regulations ban any entity (including foreign ones) from issuing stablecoins pegged to the renminbi (RMB) offshore without explicit approval.
Offshore restrictions: Domestic Chinese entities and their subsidiaries are strictly prohibited from issuing virtual currencies or conducting RWA tokenization outside China without consent. As Yifan added:
“Helping illegal crypto business from inside China (even for projects outside China), including promotion, IT development, and advisory, will face severe criminal punishment. This goes next level.”
RWA tokenization rules: While some market participants see potential for a regulatory framework for tokenized, real-world assets (RWA), the 2026 rules impose strict oversight on this sector, requiring approval for any RWA tokenization, especially if it involves onshore assets. As Yifan He explained:
“In the circulars, RWAs are totally banned. In the past two days, many people from the RWA industry have tried to confuse people with RWA and ‘tokenized security’ and claim that the Chinese government officially gives a clear path to legalize RWAs. It is not. The path is now a total ban.”
Nevertheless, “it gives a clear path for ‘tokenized securities.’ This is the bright side of the circulars. But because it is about ‘securities,’ the issuance and trading must go through licensed entities. I don’t think this brings any opportunities to the market, tech companies, or crypto companies. This will be a new business for existing underwriters and stock exchanges. The IPOs and fundraising won’t be any easier. Especially, one major required step is that the owners of the assets to be ‘tokenized’ must receive approval from CSRC, literally exactly the same procedures as for Chinese companies to be listed in foreign stock markets,” pointed out Yifan.
Separation from Hong Kong: While mainland China maintains a strict ban, Hong Kong continues to pursue a separate, cautious pilot program for regulated, licensed stablecoin issuance, though this is expected to be under tight supervision.
Hong Kong is currently implementing a comprehensive multi-layered regulatory framework for digital assets, with several significant legislative milestones scheduled for 2026. The government aims to solidify the city’s position as a global digital asset hub by expanding licensing requirements to nearly all types of crypto service providers and aligning tax transparency with international standards.
For 2026, Hong Kong has prioritized the regulation of previously “over-the-counter” (OTC) and advisory services:
- New licensing bill: Regulators plan to submit a bill to the Legislative Council in 2026 to establish licensing regimes for four new categories: Virtual Asset (VA) Dealing (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 quarter of 2026.
- Banking standards: Effective January 1, 2026, Hong Kong will fully implement the Basel Committee standards for crypto assets, governing how banks manage capital requirements and credit risks when dealing with digital assets.
- Tax exemptions: Hong Kong is shifting toward high transparency for tax compliance while maintaining its competitive “no capital gains” environment. The government plans to submit a bill in 2026 to formally expand tax exemptions for funds and family offices to include “digital assets,” essentially promising a 0% tax rate on crypto profits for these qualifying institutional investors.
- CARF implementation: Legislation 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 Financial Services Authority (DFSA) updating its rules on 12 January 2026 to shift token suitability assessments from the regulator to authorized firms. The Central Bank of the UAE (CBUAE) also approved a dirham-backed stablecoin for institutional use on February 13, 2026. The new rules aim to increase market flexibility while ensuring high standards of integrity for digital asset service providers.
DIFC Updates (DFSA): Effective January 12, 2026, the DFSA eliminated the “Recognized Crypto Tokens” list, requiring firms to conduct their own due diligence, assessment, and monitoring of tokens before listing.
Stablecoin regulation: The CBUAE approved the launch of a Dirham-backed stablecoin (DDSC) on the ADI Chain for institutional, payment, and settlement use cases as of 13 February 2026. Erhan Kahraman, Former Chief Editor of Cointelegraph Turkey, said:
“I don’t see any major impact on the use of stablecoins in the MENA region, simply because here, it’s used more as a ‘survival tool’ rather than a trading asset. I know that for the Western Hemisphere, stablecoins are the main tool for on- and off-ramping cryptocurrencies (i.e., you first buy $USDT and then use it for trading). In contrast, people in MENA use stablecoins as a gateway to a) cross-border payments/remittances and b) to join the global job market as individuals.”
He continued: “Imagine this: a freelancer needs to provide multiple legal documents, such as a ‘Bank Confirmation Letter,’ only to start working for a foreign company (to receive USD or Euro). This is incredibly difficult to provide for underbanked or unbanked populations found in the MENA region. Stablecoins eliminate that barrier. When you find a job that pays in $USDT, all they ever ask you about your financial situation is your crypto wallet address. I believe that is making a huge difference for the underbanked population.”
Investor protection: Retail client protections remain strict, with mandatory appropriateness assessments and a ban on certain marketing practices.
Taxation 2026: Crypto activity generating income is subject to corporate tax, while transfers of crypto are generally exempt from VAT, and mining rewards are treated as taxable income.
Compliance and licensing: UAE regulators are heavily focused on institutional-grade compliance and preventing financial crime, emphasizing robust governance for licensing, according to reports from 16 February 2026.
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