Crypto News Round-Up — September 2025

This week’s headlines underscore how regulators and institutions are steering the crypto industry through innovation and risk. From the UK to the EU and Switzerland, authorities are adjusting rules while banks pilot blockchain, and market participants remain wary after major security breaches. Below we summarize the latest developments in global crypto policy, infrastructure and security.

• UK to adjust crypto rules (Financial Times)
• EU members clash over crypto oversight (Reuters)
• Swiss banks pilot blockchain payments (Reuters)
• Huge hack at crypto firm Bybit (Financial Times)

UK to adjust crypto rules

The UK’s Financial Conduct Authority (FCA) plans to fold cryptocurrency providers into its regulatory framework starting next year, but with several exemptions for the unique nature of digital assets. The regulator says traditional finance rules “cannot simply be applied” to crypto. For instance, requirements on senior management and some customer-cooling-off protections will be relaxed due to crypto’s extreme volatility (Financial Times).

At the same time, the FCA is tightening combat measures for operational risks. Officials emphasized they want to support industry growth while acknowledging that crypto investment “remains high risk.” The FCA’s consultation seeks feedback on how to align consumer protections and complaint mechanisms with the new crypto regime (Financial Times).

• Allows crypto firms more flexibility under UK rules, potentially boosting innovation.
• Lightens certain regulatory burdens (e.g. senior manager regime) to attract crypto businesses.
• Signals that regulators consider consumer-protection rules may need adjustment for crypto.
• Emphasizes that despite relaxed rules, investors should beware high risk in crypto markets.

EU members clash over crypto oversight

Malta’s financial regulator has publicly opposed a plan by France, Italy and Austria to centralize crypto supervision under Europe’s main securities watchdog, ESMA. While the move would harmonize oversight of major crypto firms, Malta warned that such centralization could add “bureaucracy” and reduce efficiency just as the EU aims to boost competitiveness (Reuters).

Backers of an EU-wide supervisor say it would address inconsistent rules across member states, but critics worry it could stifle local innovation. ESMA’s chief has signaled openness to a bigger role, yet significant disagreement persists. For now, the debate shows a split in Europe’s approach: some states want uniform crypto rules, while others prefer to keep control closer to home (Reuters).

• Highlights division in the EU: crypto rules may continue to vary by country.
• Potential centralized oversight could simplify licensing, but may slow approvals.
• Could determine whether Europe adopts a unified or fragmented crypto market.
• Outcome will influence where crypto businesses choose to operate in Europe.

Swiss banks pilot blockchain payments

Three major Swiss banks – PostFinance, Sygnum and UBS – successfully executed a real payment of Swiss francs using a public blockchain. In a pilot organized by the Swiss Bankers Association, the banks settled deposits instantly on a shared ledger. The test proved “immediate and definitive settlement” between institutions was possible via blockchain (Reuters).

Bankers said this experiment could streamline future interbank payments by integrating blockchains into automated processes. By showing that a public chain can settle cash transfers instantly, the pilot highlights blockchain’s potential to improve efficiency and transparency in financial transactions (Reuters).

• Marks a milestone: traditional banks are testing blockchain for real-world payments.
• Instant settlement on a shared ledger could greatly speed up transfers and reduce costs.
• Paves the way for more widespread use of blockchain infrastructure in banking.
• Demonstrates cooperation between regulators and industry to explore new tech.

Huge hack at crypto firm Bybit

Crypto exchange Bybit reported that hackers stole roughly $1.5 billion worth of digital assets in one of the largest thefts ever. This massive breach has drawn international attention to security in the industry (Financial Times).

Regulators say the incident underscores the need for stricter oversight. The UK FCA specifically cited the Bybit hack when stating it will enforce tougher operational risk controls on exchanges under its upcoming regime. The fallout from the breach is prompting calls for higher security standards across the crypto sector (Financial Times).

• Shows that even big exchanges can suffer catastrophic losses to hackers.
• Underscores the importance of robust security and insurance for crypto platforms.
• Likely to trigger more stringent regulation and audits of crypto firms’ defenses.
• Reminds investors that crypto assets can be very risky and are usually uninsured.

Cryptocurrency markets remain extremely volatile and speculative. This summary is for informational purposes only, not investment advice. Always do your own research before buying or selling crypto, and be aware that you may lose all of your investment.

Bottom Line

The latest news highlights a crypto industry in transition. Regulators in the UK and EU are actively shaping new rules that aim to balance innovation with consumer protection, while leading banks are experimenting with blockchain to modernize payments. At the same time, dramatic hacks remind everyone of the sector’s vulnerabilities. Going forward, regulatory clarity and improved infrastructure could make crypto more mainstream, but investors must remain cautious given the high risks and market swings. Ultimately, these developments point to a maturing market – one where due diligence and a long-term view will be more important than ever.