Stablecoin regulation: how to protect assets

In 2025, the U.S. passed the GENIUS Act, while the EU had previously introduced MiCA (Markets in Crypto-Assets Regulation), which entered into force in June 2023 and became fully applicable as of December 30, 2024—two distinct regulatory regimes creating new challenges for crypto-asset users. These laws complicate cross-border stablecoin operations, posing risks of account freezes and reduced liquidity. However, you can mitigate these risks by adopting a more conscious approach to using digital assets.

What Should Individuals Do to Avoid Blocks?

New regulations mandate strict AML screenings and transaction monitoring for links to sanctioned entities. To minimize risks:

1. Use Reliable Platforms.
   Register only on exchanges and services that comply with KYC/AML requirements. Before starting, ensure the platform is recognized in your jurisdiction of residence and has a transparent track record.

2. Diversify Your Assets.
   Hold stablecoins with different pegs (e.g., USDT, USDC, and equivalents in other currencies) to minimize regional risks associated with sanctions or reserves.

3. Verify Wallet Addresses Before Transferring.
   Using wallet verification tools allows you to identify links to "dirty crypto"—funds potentially associated with illegal activities. As emphasized earlier, AML screening reduces the risk of interacting with "toxic" addresses.

4. Store Stablecoins in Non-Custodial Wallets.
   Exchanges and centralized platforms can freeze your funds during transaction audits. Non-custodial wallets allow you to maintain full control over your assets.

5. Monitor Sanction Lists.
   For large transfers, always double-check the recipient's address for sanction flags. This is particularly important when dealing with counterparties in other countries.

Recommendations for Businesses and Payment Providers

For companies operating with stablecoins, the new rules require a revision of internal procedures:

1. Implement or Update KYC/AML Processes.
   Regular monitoring of addresses and transactions is critical. Use automated solutions for real-time screening.

2. Optimize Liquidity Management.
   The GENIUS Act requires compliance with strict reserve transparency standards. To minimize operational risk, distribute reserves across jurisdictions in advance.

3. Monitor Banking Counterparties.
   Systemic risks for issuers are intensifying. Hold reserves in banks with impeccable reputations and avoid long-term concentration of funds in a single jurisdiction.

4. Develop Force Majeure Scenarios.
   Drafting contractual provisions for cases of counterparty fund freezes or legal transaction delays provides greater flexibility during unforeseen events.

Why Is Independent Transaction Verification Important?

AML address screening has become an essential tool amidst growing regulatory requirements. For instance, if you plan to interact with an unfamiliar counterparty, a preliminary wallet check will help:

• Identify links to sanction tags
• Eliminate the risk of the received funds being frozen
• Secure your payment infrastructure

To automate this process, it is recommended to use services that provide API integration or regulatory reporting features.

Key Recommendation: Be Prepared for Change

The GENIUS Act and MiCA have changed the rules of the game for all participants in the stablecoin market. To avoid frozen funds or disrupted operations, start with informed decisions:

• Check addresses for sanction risks
• Use non-custodial wallets
• Work only with reliable platforms and issuers that publish reserve audits

The modern digital economy requires attention to detail. The stability of your digital assets depends on a proactive and responsible approach.