A practical guide for updating Traditional Finance (TradFi) risk assessments for cryptocurrency

The cryptocurrency landscape has fundamentally shifted across global financial markets. Where regulatory uncertainty once kept traditional financial institutions at arm’s length from digital assets, recent developments across major jurisdictions have created increasingly permissive environments for institutional crypto adoption. The EU’s Markets in Crypto-Assets Regulation establishes uniform frameworks across 27 member states by July 2026, and the UK continues industry consultations with expectations of finalizing comprehensive rules in 2026. Similar regulatory clarity has emerged in the United States, with policy shifts and new legislation under the Trump Administration facilitating more participation and innovation. In July 2025, the Guiding and Establishing National Innovation for U.S. Stablecoins Act was signed into law, creating the first-ever federal regulatory framework for stablecoins, and the House passed the Digital Asset Market Clarity Act, demonstrating unprecedented legislative momentum for crypto adoption. However, these developments do not change the substantial compliance obligations and investigative complexities inherent to the financial sector.

The immutable, pseudonymous, and globally accessible nature of blockchain technology introduces complexities that require sophisticated capabilities and specialized expertise. This article examines how traditional financial institutions can adapt their compliance and risk management practices to address crypto-specific exposures while capitalizing on the new opportunities that crypto brings.

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