Visa Expands Stablecoin Settlement to CEMEA Amid Global Regulatory Shifts: A Watershed Week for Crypto Adoption and Oversight
Introduction: A Tale of Two Crypto Worlds
This week encapsulated the dual trajectory of the digital asset industry: accelerating institutional adoption amidst a rapidly solidifying global regulatory perimeter. In a landmark development, payments titan Visa announced a significant expansion of its stablecoin settlement capabilities into the Central and Eastern Europe, Middle East, and Africa (CEMEA) regions through a partnership with crypto infrastructure firm Aquanow. This move, which facilitates round-the-clock transaction processing for its regional network using stablecoins like USDC, stands in stark contrast to simultaneous crackdowns and rule-making from Beijing to London. As China’s central bank doubled down on its comprehensive crypto prohibition and the UK finalized sweeping tax reporting mandates, the industry also witnessed pivotal moments from South Korea, the U.S., and Uruguay, painting a complex picture of a sector navigating its path to maturity.
Visa and Aquanow: Pioneering 24/7 Stablecoin Settlement in Emerging Markets
The partnership between Visa and Aquanow represents a strategic deepening of traditional finance's foray into digital assets. This integration is not a pilot program but a fully-fledged service expansion, enabling Visa’s extensive regional issuer and acquirer network to process transactions using approved stablecoins. The specific mention of USDC highlights a continued preference for regulated, transparent stablecoins in institutional contexts.
The most operationally significant feature is the "continuous 365-day settlement capabilities." This directly addresses a key inefficiency of traditional financial systems, which often operate on business-day schedules, by leveraging the always-on nature of blockchain networks. For merchants and financial institutions in the CEMEA region, this can translate to improved cash flow and reduced settlement risk. This expansion builds upon Visa's earlier experiments with USDC on the Ethereum blockchain, demonstrating a clear trajectory from testing to scaled implementation in high-growth markets.
Global Regulatory Whiplash: China's Prohibition vs. The UK's Reporting Framework
While Visa pushes forward with integration, national regulators are drawing starkly different boundary lines.
The People’s Bank of China (PBoC) left no room for ambiguity. Following a multi-agency meeting, it reaffirmed that all digital asset operations "remain illegal within the country." The statement was particularly pointed regarding stablecoins, highlighting their "usage risks." The PBoC’s declaration that "virtual currencies do not have the same legal status as fiat currencies, lack legal tender status, and should not and cannot be used as currency in the market" reinforces China's long-standing position, effectively quarantining its financial system from the global crypto ecosystem.
Conversely, the United Kingdom is taking a regulatory rather than prohibitive approach. The government confirmed in its 2025 Budget that new regulations will require cryptocurrency traders to provide personal information to trading platforms beginning January 1, 2026. This initiative, known as the Cryptoasset Reporting Framework (CARF), was developed through international OECD agreements. It mandates that service providers automatically share customer data—including transaction details and tax reference numbers—with HM Revenue & Customs. This move aligns the UK with other jurisdictions like the European Union, focusing on tax compliance and transparency instead of outright bans.
Industry Under the Microscope: Exchanges, Mining, and Legal Reckonings
The week also highlighted operational and legal challenges within the core crypto industry.
Tether, the world's largest stablecoin issuer, announced the cessation of its Bitcoin mining activities in Uruguay. The company cited "prohibitive energy costs" as the primary driver for this strategic withdrawal. Local media reported that Tether confirmed to Uruguay’s Ministry of Labor and Social Security it would lay off 30 of its 38 employees in the country. This decision underscores the volatile economics of Bitcoin mining, where profitability is intensely sensitive to regional energy prices.
In South Korea, major exchange Upbit addressed a serious security vulnerability following a theft estimated at $30 million. The breach was detected on November 26, involving abnormal Solana-based outflows of SOL, ORCA, RAY, and JUP tokens. In response, Upbit immediately halted withdrawals and transferred remaining assets to cold storage. The incident served as a stark reminder of the persistent security challenges facing even the largest exchanges and the critical importance of robust internal wallet systems.
The legal saga surrounding Terraform Labs continued as its founder, Do Kwon, petitioned the U.S. District Court for the Southern District of New York to limit his prison term to five years. The November 26 filing presented a 23-page argument from Kwon’s legal team asserting that a five-year term would constitute sufficient punishment. This development is a key moment in the ongoing regulatory reckoning for projects deemed to have violated securities laws.
The Institutional On-Ramp Accelerates: Licensing and Services for a New Era
Parallel to the regulatory clampdowns, there was significant progress in building regulated bridges between traditional finance and digital assets.
Australia advanced its crypto licensing legislation with the introduction of the Corporations Amendment (Digital Assets Framework) Bill 2025 to parliament. The bill requires financial licenses for cryptocurrency platforms, formalizing their status within the country's financial regulatory regime.
Securitize, a tokenization specialist backed by BlackRock and Ark Invest, achieved a significant milestone by receiving full European Union regulatory approval to operate a digital trading and settlement system. With this authorization, Securitize claims to be the only firm licensed to operate tokenized securities infrastructure in both the EU and United States, positioning it as a key player in the emerging Real-World Asset (RWA) tokenization space.
Echoing this institutional focus, Animoca Brands announced it will prioritize stablecoin development and RWA initiatives in the coming year. Chief strategy officer Keyvan Peymani stated in a CNBC interview that the company will “launch into the stablecoin initiative in a major way” while introducing an RWA marketplace representing “a whole new sector for us.”
Further building out regulated services, Binance launched "Binance Prestige," a new offering targeting ultra-high-net-worth individuals, family offices, and private funds. Similarly, MoonPay secured a New York Trust Charter, authorizing it to safeguard customer digital assets and facilitate over-the-counter trades.
In one of the most watched regulatory developments, prediction market platform Polymarket received an Amended Order of Designation from the U.S. Commodity Futures Trading Commission (CFTC). This approval enables fully regulated U.S. operations by permitting intermediated access through futures commission merchants and traditional brokerage channels.
Looking Ahead: Japan's Proposal and Monad's Launch
The forward-looking developments of the week offered a glimpse into the industry's future structure and technology.
Japan's Financial Services Agency plans a 2026 parliamentary submission of legislation requiring cryptocurrency exchanges to maintain reserves for customer compensation. The proposed rules would mandate exchanges set aside funds to cover potential losses from cyberattacks or security incidents, a measure that would significantly enhance consumer protection.
On the technological frontier, the Monad blockchain launched with its accompanying MON token airdrop. The development team described Monad as a “high-performance network” designed to support DeFi, payments, stablecoins, and institutional high-frequency finance applications, representing the next generation of layer-1 platforms aiming for greater scalability.
A final note came from traditional finance, where JPMorgan Chase abruptly terminated the bank accounts of Strike CEO Jack Mallers in September without explanation. This event highlights the ongoing friction between innovative crypto-native firms and the established banking sector.
Strategic Conclusion: Navigating the New Map of Digital Finance
The events of this week collectively chart a new map for the digital asset industry. The expansion by Visa demonstrates that utility-driven adoption of blockchain technology by major financial incumbents is accelerating independently of speculative token markets. The focus on stablecoins like USDC for settlement underscores their growing role as critical plumbing for global finance.
Simultaneously, the regulatory landscape is crystallizing into distinct models: comprehensive prohibition (China), rigorous transparency and tax reporting (UK, Australia), and formal licensing regimes (EU, US via CFTC). For businesses and users, this means operating in an environment where jurisdictional clarity is increasing, but fragmentation remains a challenge.
The strategic takeaways are clear:
- Watch Stablecoins & RWAs: The focus from Visa and Animoca Brands signals that stablecoins and real-world asset tokenization are becoming primary vectors for institutional capital and product development.
- Compliance is Non-Negotiable: The rollout of CARF in the UK and licensing in Australia shows that global tax compliance and regulatory adherence are becoming baseline requirements for survival and growth.
- Security Remains Paramount: The Upbit incident and Japan’s proposed reserve requirements reinforce that security and consumer protection are critical to maintaining trust and achieving mainstream acceptance.
As this new phase unfolds, market participants should monitor how other global payment networks respond to Visa's move, how the implementation of CARF-style frameworks progresses internationally, and which jurisdictions emerge as leaders in balancing innovation with robust consumer protection. The era of wild-west expansion is giving way to a period of structured growth under increasingly defined rules of the road.