TRM Weekly Roundup | March 27, 2025

🌎 The promise of crypto is global and so is our team! This week we cover policy, compliance, and investigations from the UK to Taiwan, Thailand, to the US. Ari Redbord , Angela Ang , and Isabella Chase take us on a trip across the #cryptoverse with these stories:

• FCA launches five year strategy
• Taiwan publishes draft Virtual Asset Services Act
• Thai authorities leverage blockchain intelligence in case against CSAM vendor
• Fidelity to launch stablecoin as it expands digital asset offerings
• Wyoming poised to be first state to issue stablecoin
• This week in crypto in Washington

🇬🇧 FCA launches five year strategy

On Tuesday, the UK’s Financial Conduct Authority (FCA) published their strategy for the next five years. Two elements stood out for digital assets.

First, the FCA prioritized becoming “a smarter regulator,” through more proportionate and proactive supervisory activities and an increased investment in “technology, people, and systems.” These efforts aim to enhance the regulator’s overall effectiveness by digitizing authorization processes and increase engagement.

Second, the strategy emphasizes “fighting financial crime” as a central pillar. The FCA identified tackling fraud and market abuse as key focus areas, both of which undermine the integrity of the digital asset ecosystem and require urgent attention from regulators.

On the topic of crime, the UK’s National Crime Agency (NCA) released its National Strategic Assessment 2025 of Serious and Organised Crime (SOC). This annual report outlines the current SOC threat facing the UK and what’s emerging on the horizon. The 2025 edition finds that the threat from SOC has grown since 2024, driven by fraud, illicit finance, drugs, and child abuse. In the area of illicit finance — particularly crypto — the NCA observed that criminals most frequently use Bitcoin and Tether for laundering activities in the UK, while some also rely on DeFi platforms and privacy coins such as Monero.

🇹🇼 Taiwan publishes draft Virtual Asset Services Act

On Tuesday, Taiwan's Financial Supervisory Commission (FSC) published the long-awaited draft of its special law on virtual assets – the Virtual Asset Services Act.

If passed, the Act would introduce a comprehensive licensing framework for a wide range of VASPs, including exchanges, brokerages, custodians, and underwriters of token offerings. All VASPs will be required to incorporate locally and maintain minimum paid-up capital ranging from NTD 10 million to 300 million (USD 300,000 to 9 million), depending on the nature of the services offered. The law also restricts the use of terms like “virtual assets” in company names to licensed entities only.

All licensed VASPs must adhere to common standards including client asset segregation, custody rules, and restrictions on lending of client virtual assets. Additional obligations apply to exchanges and custodians around listing policies and wallet management. The law also mandates VASP membership in a self-regulatory organization — the Taiwan VASP Association — which is tasked with setting codes of conduct, resolving disputes, and supporting industry education, under FSC oversight.

Stablecoin issuers based in Taiwan will need a dedicated license and must meet requirements such as full reserve backing, redemption at par, and regular audits. Meanwhile, foreign stablecoins may be offered by Taiwanese VASPs subject to listing standards and transparency on issuer obligations, similar to Japan’s approach.

The draft is currently open for public consultation until May 24. The FSC plans to submit the draft Act to Taiwan’s highest legislative body, the Executive Yuan, for review by end June 2025.

🇹🇭 Thai authorities leverage blockchain intelligence in case against CSAM vendor

Earlier this month, Thai authorities arrested a German national, identified only as “Steffen,” for operating a dark web platform that facilitated the sale of child sexual abuse materials (CSAM) in exchange for cryptocurrency. The site offered users access to illicit content in return for payments in Bitcoin and Monero.

The arrest followed a referral from US Homeland Security Investigations (HSI) to the Royal Thai Police , marking another example of effective cross-border collaboration in the fight against online child exploitation. The Thai Central Investigation Bureau’s Technology Crime Suppression Division (CIB-TCSD) seized multiple electronic devices during the arrest and worked alongside HSI to trace blockchain transactions from website users through intermediaries to cash-out points on international exchanges. Authorities report that Steffen earned more than USD 100,000 through the operation.

The takedown of this darknet CSAM operation shows the impact of dedicated law enforcement, cross-border collaboration and blockchain intelligence in protecting vulnerable communities and holding perpetrators accountable. This case highlights the importance of partnerships between US and Thai law enforcement, and the critical role of cryptocurrency tracing in uncovering global abuse networks.

TRM Labs remains committed to supporting HSI, the Royal Thai Police, and law enforcement agencies around the world in their mission to dismantle CSAM networks, disrupt crypto-facilitated abuse, and bring perpetrators to justice.

🏦 Fidelity to launch stablecoin as it expands digital asset offerings

Fidelity Investments is reportedly in the advanced stages of developing its own stablecoin, aiming to provide a digital cash equivalent within its expanding digital assets portfolio. This initiative aligns with Fidelity's broader strategy to integrate blockchain technology into its financial services, including plans for a tokenized US dollar money market fund.

Fidelity's engagement with digital assets dates back to 2018 with the launch of Fidelity Digital Assets , a subsidiary offering custody and trade execution services for institutional investors in cryptocurrencies like Bitcoin and Ethereum. In 2022, Fidelity expanded its services by allowing Bitcoin exposure in 401(k) retirement plans, becoming the first major retirement provider to do so, though this move attracted regulatory scrutiny. Additionally, Fidelity has ventured into the exchange-traded fund (ETF) space, filing for spot Bitcoin and Ethereum ETFs, with a spot Bitcoin ETF approved and launched in January 2024. The firm also provides institutional research and maintains a long-term investment thesis around Bitcoin as a store of value.

The development of a Fidelity-backed stablecoin represents a significant step in the firm's commitment to integrating digital assets into traditional financial services, potentially enhancing transaction efficiency and broadening access to digital currencies for its clients.

For more on how Fidelity has embraced digital assets listen to TRM Talks with Vanessa Targenian, Director of Research, Fidelity Center for Applied Technology®(FCAT) at Fidelity Investments .

🤠 Wyoming poised to be first state to issue stablecoin

Wyoming, according to Coindesk, is moving forward with plans to launch its own state-issued stablecoin — the Wyoming Stable Token (WYST) — by July 2025. The token will be fully backed 1:1 by US dollars held in state-owned accounts and aims to serve as a government-issued digital cash equivalent. The initiative is led by the Wyoming Stable Token Commission, established under state law in 2023 to oversee the design, issuance, and management of the stablecoin.

WYST is currently undergoing multi-chain testing on networks including Ethereum, Solana, Arbitrum, Optimism, Avalanche, Polygon, and Coinbase’s Base, reflecting the state’s focus on interoperability and broad access. Wyoming is working with LayerZero, a blockchain interoperability firm, to allow the stablecoin to move across different blockchain ecosystems seamlessly.

If launched on schedule, WYST would be the first stablecoin issued directly by a US state, marking a significant development in public-sector engagement with blockchain technology. It is being positioned as a transparent, regulated, and fully reserved digital asset for payments, state programs, and broader innovation use cases within, and potentially beyond, Wyoming.

For everything you need to know, listen to TRM Talks with Anthony Apollo , Executive Director of the Wyoming Stable Token Commission, where he discusses the project’s architecture, regulatory model, and public-private collaboration.

🇺🇸 This week in crypto in Washington

FDIC to eliminate reputational risk from bank supervision: Acting FDIC Chair Travis Hill announced plans to remove "reputational risk" considerations from bank supervisory practices. This move addresses concerns that subjective assessments have discouraged banks from engaging with crypto-related businesses, emphasizing the need for objective, quantifiable criteria in evaluating bank operations.

SEC initiates crypto regulatory roundtables: The Securities and Exchange Commission (SEC) held its inaugural public roundtable on March 21, focusing on the application of securities laws to digital assets. Led by Commissioner Hester Peirce, the discussion included industry experts such as former SEC Commissioner Troy Paredes, Miles Jennings from a16z crypto, Teresa Goody Guillén, partner at Baker Hostetler, and other securities law experts. This session marks a shift toward developing a tailored regulatory framework for cryptocurrencies, with additional roundtables planned to address trading, custody, tokenization, and DeFi.

DC Blockchain Summit 2025 highlights: The 10th annual DC Blockchain Summit convened policymakers, industry leaders, and innovators to discuss the future of blockchain technology and digital assets. Policy makers included Senator Ted Cruz (R-TX), Representatives Dan Goldman (D-NY) and Bryan Steil (R-WI), Wyoming Governor Mark Gordon (R-WY), House Majority Whip Tom Emmer (R-MN), and Donald Trump Jr., Executive Vice President of the Trump Organization. TRM’s Global Head of Policy Ari Redbord joined representatives from TRON and Tether to discuss the T3 Financial Crime Unit. The summit underscored a promising policy climate for blockchain and crypto, featuring discussions on regulatory clarity and innovation.

Upcoming SEC Chair confirmation hearing: Today, the Senate Banking Committee is scheduled to hold a confirmation hearing for Paul Atkins, President Trump's nominee to lead the SEC. Atkins, a former SEC commissioner, is known for his pro-crypto stance and has pledged to implement rational and coherent regulations for the cryptocurrency sector. His confirmation is anticipated to influence the SEC's approach to digital asset regulation.

Senate overturns DeFi broker rule: On Wednesday, the US Senate has voted 70–28 to once again pass a Congressional Review Act (CRA) resolution nullifying the IRS rule that would classify certain DeFi platforms as "brokers" required to report user transactions. This marks a bipartisan rejection of the rule, which critics argue is unworkable for decentralized systems — the resolution now heads to President Trump’s desk for final approval.

Stablecoin Laws Move In US Congress: This week, the STABLE Act was formally introduced in the House by Reps. Bryan Steil and French Hill, proposing a federal framework for payment stablecoins with reserve backing, audits, and state-federal coordination. At the same time, the GENIUS Act advanced out of the Senate Banking Committee, signaling growing bipartisan momentum behind stablecoin regulation. Next, the STABLE Act heads to markup in the House Financial Services Committee, while the GENIUS Act awaits full Senate debate — setting the stage for potential reconciliation later this year.

• 🤯 North Korea just pulled off the biggest crypto heist in history. But how did they do it — and how do we stop them? Ari Redbord sits down with North Korea experts Jean Lee (”The Lazarus Heist” and East-West Center , former The Associated Press North Korea Bureau Chief) and Nick Carlsen (TRM Labs, former Federal Bureau of Investigation (FBI) ) to uncover how North Korea built a cyber army, the Bybit hack, the role of Chinese money laundering networks, and how governments and private sector can fight back. Tune in now.
• 🤝 TRM Labs and the Canton Network are joining forces to strengthen risk management on privacy-enabled networks. We’re excited to announce our integration with the Global Synchronizer — the infrastructure powering the Canton Network to enable seamless interoperability across the financial ecosystem. As a Supporting Validator, we’ll provide on-chain AML monitoring for Canton Coin and USDC and contribute to the Global Synchronizer Foundation (GSF) as a General Member. Learn more about the partnership here.
• 🤩 We’ve got a new resource hub on our website! Browse all our latest reports, guides, white papers, case studies, webinars, events, TRM Talks, and more — and quickly access the resources you need. Check it out and start exploring for yourself here.