The Web3 compliance landscape is shifting fast in 2025. The European Union and the UK are rolling out strict new rules that directly impact blockchain technology and crypto service providers.
The EU’s new rules for Crypto-Asset Service Providers (CASPs) now zero in on investor protection, market integrity, and Anti-Money Laundering (AML) controls. The UK’s framework keeps changing, too, tightening up on reporting, oversight, and consumer protection.
As a Web3 founder or operator in these regions, you have to juggle regulations while keeping your business moving forward.
Our tracker cuts through the legal fog. Here, you’ll find the updated regulatory requirements that actually matter, explained in plain language.
Expect practical timelines, clear breakdowns of key digital regulation developments, and steps you can take to keep innovating without facing compliance challenges.
Understanding Regulatory Bodies in the EU and UK
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Several major regulatory bodies now oversee the EU and UK digital assets. Knowing who they are is the first step in building a solid compliance strategy for 2025.
The European Securities and Markets Authority (ESMA) stands at the center of EU crypto regulation. Under the Markets in Crypto-Assets Regulation, ESMA issues guidelines and coordinates and helps to maintain consistency across the EU, while National Competent Authorities (NCAs) supervise CASPs directly.
The European Banking Authority (EBA) pays close attention to stablecoin regulations and watches how they might affect financial stability. They also keep tabs on how traditional banks interact with crypto markets. The EBA works alongside ESMA to analyze risks and developments in crypto-assets.
Over in the UK, the Financial Conduct Authority (FCA) acts as the main regulator for crypto businesses. The FCA requires crypto asset firms to register and comply with anti-money laundering (AML) and counter-terrorist financing (CTF) rules.
Data Protection Authorities (DPAs) in the UK and EU enforce privacy and securities laws that impact blockchain projects. You’ll need to make sure your personal data management lines up with the general data protection regulation in the EU and UK GDPR in Britain.
Financial Intelligence Units (FIUs) keep an eye out for suspicious transactions and enforce AML requirements. Their rules affect both traditional financial institutions and crypto service providers.
These bodies are starting to collaborate more often, through groups like the European Supervisory Authorities, which include ESMA, EBA, and EIOPA and international forums. This trend toward more collaboration will likely keep growing in 2025.
The Need For An Operations-Focused Web3 Compliance Tracker
You have to take a proactive approach to your compliance standards. Without effective regulation tracking, you might miss key deadlines, leading to penalties or damaging your business reputation.
An operations-focused tracker helps you:
- Stay up-to-date with relevant laws and deadlines
- Assign compliance tasks to the right people
- Document your compliance work
- Lower your risk of costly penalties
Using a smart tracker helps you concentrate on what really counts—growing your business. But since the rules can get pretty complicated, it’s a good idea to bring legal experts to provide valuable guidance and eliminate risks.
Why Choose Legal Nodes For Web3 Compliance
Legal Nodes operates in 20+ countries and helps Web3 founders understand and manage their global compliance needs through a single platform.
When partnering with Legal Nodes, you get your Virtual Legal Officer (VLO), who turns your business challenges into personalized legal solutions.
Your VLO collaborates with vetted legal pros who are well-versed in the key regulations of their jurisdictions, including the EU and UK. From a dedicated DPO to a UK GDPR Representative, Legal Nodes covers all your needs. It saves you time and helps you avoid costly mistakes.
This combination of global and local insights ensures your Web3 business remains safe and allows you to grow with greater confidence.
Key services include:
- KYC & AML compliance setup and maintenance
- Privacy and data protection compliance
- Formation of legal entities in favorable jurisdictions
- Licensing support and ongoing regulatory compliance
- Legal opinions for token issuance
- Tax planning, structuring, and optimization
Legal Nodes gives you a legal roadmap that’s actually tailored to your project. It helps you move through regulations in multiple countries with less stress.
Why Web3 founders love Legal Nodes:
- Deep expertise in blockchain regulations
- Streamlined compliance across borders
- Connections to local legal, tax, and privacy experts
- Transparent pricing structure for early-stage businesses
- Clear, no-nonsense explanations of legal steps
- Support that adapts as laws change
If you’re ready to build your Web3 project with more confidence (and less worry), Legal Nodes is a good place to start.
Key Areas of Web3 Compliance
The innovation from Web3 technology companies requires a strong sense of responsibility. Regulations are catching up, and projects that get on board with compliance early have a leg up.
It’s not just about avoiding fines and improving operational efficiency; it’s about building trust, bringing in serious partners, and making sure your platform is ready for the future.
Compliance plays a key role if you want to grow sustainably in the decentralized world. Here’s what to keep an eye on.
Web3 Company Setup
Starting a compliant Web3 company in the UK or EU in 2025 requires careful planning around regulations and company structure, as compliance is complex and impacts costs and operations.
Keep these regulations in mind.
- MiCA (EU 2023/1114 & 2023/1115): Since December 2024, MiCA mandates all crypto-asset service providers (CASPs) in the EU to obtain a MiCA license. This regulation lays out what you need for registration, governance, consumer protection, and market integrity. Make sure your services meet MiCA's definitions and requirements. Prepare your documents and send your MiCA application to the relevant national authority.
- AMLD 5 (EU 2018/843 & UK MLRs 2017): The EU and UK impose strict KYC (Know Your Customer) and AML (Anti-Money Laundering) requirements on crypto firms, especially at fiat on/off-ramps. You must implement strong identity verification and transaction monitoring systems to comply with these rules and prevent financial crime.
- eMD 2 (2009/110/EC & UK EMR 2011): These rules define electronic money and set safeguarding rules critical for stablecoin projects. Assess whether your token qualifies as electronic money. If it does, you need to apply for an Electronic Money Institution (EMI) license to comply with EU and UK regulations.
Your company structure must account for cross-border operations in the EU and UK markets. Consider establishing entities in both jurisdictions to ensure compliance with local licensing and supervisory requirements.
Web3 Tax And Accounting
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Web3 businesses in the EU and UK face real tax and accounting challenges in 2025. How you track, report, and pay taxes on digital assets can make or break your operations.
DAC 8/CARF (Directive 2023/956)
While the DAC8 directive was adopted in October 2023, EU Member States have until December 31, 2025, to transpose it into national law.
From January 2026, crypto exchanges and wallet providers must report detailed user transactions-including crypto-to-fiat trades, crypto-to-crypto swaps, NFT transfers, and large-value merchant payments-to tax authorities by January 31, 2027.
This includes transfers to self-hosted wallets and cross-border information sharing. You need to:
- Check your data collection systems for gaps
- Make sure you're logging every transaction
- Collect customer tax IDs and transaction details
- Pick a reliable compliance reporting vendor
- Prepare for automatic cross-border tax information exchange
VAT on NFTs (VAT Directive 2006/112 + new guidance)
NFTs now count as digital services under EU VAT rules. You'll have to:
- Update your checkout process to collect customer location data
- Charge VAT based on where your customers’ live
- Register for One-Stop Shop (OSS) if you're selling NFTs across the EU
- Use specialized accounting for NFT sales
UK Finance Act 2022 (Crypto tax rules)
In the UK, crypto gains are taxed either as miscellaneous income or trading profits depending on transaction volume and business status. To comply, you should:
- Set up dedicated accounting ledgers for token transactions
- Track cost basis for all digital assets
- Document high transaction volumes with proper audit trails
- Consider specialized Web3 accounting services if you operate as a money services business
Early preparation for DAC8 reporting and VAT compliance is key to avoid penalties and ensure smooth cross-border operations in the UK and EU.
Web3 Agreements And Contractual Compliance
Web3 operations in the UK and EU require carefully prepared contracts that bridge traditional legal frameworks and blockchain technology, ensuring regulatory compliance while leveraging decentralization.
eIDAS Regulation (EU 910/2014) & UK e-signature Law
These laws establish that electronic signatures, including those used for DAO governance documents or smart contracts, must be legally binding and equivalent to handwritten signatures.
Qualified Electronic Signatures (QES) should be created using certified devices and backed by qualified certificates for full legal effect.
To comply:
- Use qualified trust service providers for signature creation and verification
- Maintain audit trails of all signature events
- Ensure cross-border recognition of signatures
PSD2 (EU 2015/2366) & UK Payment Regulations
PSD2 governs payment services in the EU and sets out requirements for Strong Customer Authentication (SCA) and secure communication protocols when linking traditional bank accounts with Web3 wallets or payment services.
Contracts between banks and Web3 service providers must cover data protection, security standards, breach response, liability allocation, and service level agreements. It is especially relevant for services bridging fiat and crypto payments, such as payment initiation services (PIS).
Web3 Legal Memos & Licenses
Legal memos help clarify whether a Web3 project or its components (like tokens, protocols, or dApps) fall into certain regulatory categories, like VASP/CASP, e-money, or payment services.
This analysis helps avoid expensive mistakes, such as operating without the necessary license or accidentally triggering extra regulatory requirements.
MiCA Licensing Regime
Under MiCA, projects must determine if they qualify as a Crypto-Asset Service Provider (CASP) or an Issuer, based on how their token functions and whether securities laws apply. It affects licensing, compliance obligations, and operational scope.
CASPs must meet capital requirements (€50,000–€150,000), have local senior management and office presence, and comply with governance, AML, and consumer protection rules.
MiCA licenses are passportable across the EU, enabling cross-border operations with a single authorization.
A tailored legal memo from experts familiar with blockchain and EU law is key to clarifying your MiCA obligations.
EMD 2 vs. VASP Definition
Stablecoin projects face a regulatory choice between obtaining an Electronic Money Institution (EMI) license under EMD2 or a CASP (formerly VASP) license under MiCA.
This decision depends on the token’s design and affects capital requirements, compliance costs, and market access.
A UK vs. EU licensing gap analysis helps identify the most efficient path for your stablecoin’s regulatory compliance, because post-Brexit, the UK and EU have separate licensing regimes.
Data Privacy Concerns (B2B & B2C)
Web3 companies operating in the UK and EU must prioritize data privacy compliance amid evolving digital regulations in 2025.
GDPR (EU 2016/679) & UK Data Protection Act 2018
Wallet addresses are now considered personal data if linked to individuals, requiring updated privacy policies and Data Processing Agreements (DPAs) with vendors who process such data on your behalf.
Your immediate actions should include:
- Updating privacy policies to reflect wallet address protection
- Revising Data Processing Agreements with all vendors
- Implementing “privacy by design” principles in new product development
- Maintaining Records of Processing Activities (ROPA)
- Establishing lawful bases for processing personal data
ePrivacy Directive (2002/58) & UK PECR
Even if your protocol is decentralized, your dApp landing pages and websites must follow cookie-banner consent rules. Accountability documentation helps reduce data protection risks.
Required implementations:
- Consent Management Platform (CMP) on all web properties
- Regular audits of tracking scripts
- User-friendly consent withdrawal mechanisms
For fintech and Web3 platforms, GDPR compliance costs have jumped since 2024. Budget for these technical compliance measures.
User-generated content on Web3 platforms brings extra issues around data ownership and right-to-be-forgotten requests. Spell out who owns what data and how users can exercise their privacy rights in your ecosystem.
Digital Operational Resilience (DORA EU 2022/2554)
The EU’s Digital Operational Resilience Act (DORA), effective from January 17, 2025, sets a unified framework to strengthen the digital security and operational resilience of financial entities, including crypto exchanges, DeFi platforms, and wallet providers across the EU.
It protects the financial sector from ICT (Information and Communication Technology) risks, cyber threats, and operational disruptions to ensure secure financial transactions.
DORA applies to all financial entities and their critical third-party ICT service providers, including cloud and infrastructure services.
Here's what you need to do:
- Assess your current ICT risk management against DORA’s detailed requirements
- Map and evaluate all third-party ICT providers to find vulnerabilities
- Establish robust incident management and mandatory reporting protocols
- Implement regular resilience testing, including independent penetration tests
- Maintain comprehensive documentation and audit trails of ICT risks and incidents
- Conduct regular resilience testing, including independent penetration tests
- Stay updated on evolving delegated acts and technical standards under DORA
Read our article on DORA compliance to learn more.
Web3 Compliance Watchlist & Upcoming
Stay alert for upcoming regulatory challenges that could impact your blockchain operations.
MiCA Delegated Acts
The EU's Markets in Crypto-Assets (MiCA) framework expanded with new delegated acts focused on stablecoin reserve rules in Q3 2025, focusing on reserve requirements, governance, and transparency.
These provisions demand:
- Stricter liquidity requirements (minimum 60% in cash reserves)
- Monthly disclosure reports on reserve assets
- Independent auditing processes for stablecoin issuers
Regulators hope these rules will boost the stability of the digital asset market and protect consumers from stablecoin failures.
UK FS Bill on Stablecoin Regulation
The UK's Financial Services and Markets Bill brings comprehensive crypto compliance measures targeting stablecoins. You should prepare for:
- Registration requirements
- Capital adequacy standards similar to those of traditional financial institutions
- Consumer protection mechanisms, including redemption rights
Authorities plan to implement these by late 2025, which doesn't leave you much time to adapt.
EBA's Draft AML Guidance for Wallet Providers
The European Banking Authority is finalizing new anti-money laundering guidance for crypto wallet providers. The draft includes:
- Enhanced KYC requirements for high-value transactions
- Real-time transaction monitoring thresholds
- Mandatory suspicious activity reporting frameworks
You'll need to put these measures in place as part of the EU's broader blockchain compliance strategy if you want to avoid penalties or restrictions.
Conclusion About Web3 Compliance
The new blockchain regulations require greater transparency, consumer protection, and operational resilience. Your ability to adapt will directly impact your long-term success in Web3.
UK and EU tech professionals need to engage with policymakers to help shape a supportive regulatory environment. This collaboration is key to creating a space for Web3 innovation to thrive.
Remember, compliance isn’t just about avoiding fines. The mid-year regulatory fines review shows the authorities are getting serious about enforcement, with several high-profile cases already this year.
Understanding global policy changes and market opportunities will put your business in good stead for growth. The jurisdictions with the clearest regulations are already seeing investment and activity.
Legal Nodes can help you understand your obligations and implement compliance strategies for your project.
FAQs About Web3 Compliance
What is Web3 compliance?
Web3 compliance means following the regulations and legal frameworks that govern blockchain and cryptocurrency activities. In 2025, companies have to meet specific rules for crypto-asset services in the EU and the UK.
These rules aim to protect users and keep the market stable. They cover anti-money laundering, consumer protection, and financial integrity.
What is the meaning of Web3?
Web3 is the next evolution of internet services, built on decentralized technologies like blockchain. The idea is to cut down on reliance on big tech companies and create user-owned platforms.
Unlike the old web, Web3 focuses on user ownership of data and digital assets. The UK is working on Web3-friendly regulations to support innovation and protect consumers.
What is the Web3 protocol?
Web3 is a mix of standards and technologies that make decentralized apps possible. It includes blockchain networks, smart contracts, and decentralized storage.
Popular protocols are Ethereum, Polkadot, and Solana. Each one comes with its own compliance requirements you'll need to know if you want to operate legally.
What is required for Web3?
You'll need a few essentials to get started in the Web3 space.
- Technical infrastructure: You'll want blockchain nodes, wallets, and some decent development tools.
- Regulatory compliance: Following the laws that apply wherever you're operating is important.
- Security measures: Keep users and their assets safe from cyber threats—don't skimp here.
- Clear policies: Be upfront with users about how you handle their data and assets. Transparency actually matters.
Web3 companies should focus on growth, regulatory compliance, and revenue management to succeed in 2025's regulatory landscape.
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