Fragmented Regulations Limit Stablecoin Adoption in International Finance: WTO | Crypto Regulation News
Crypto regulation news: Fragmented Regulations Limit Stablecoin Adoption in International Finance: WTO. This update explains what changed, why it matters for the crypto market, and what investors, exchanges, and blockchain companies should watch next.
Crypto Regulation Update
Fragmented regulatory regimes are limiting stablecoin adoption in international trade, according to Juan Marchetti, director of the trade in services and investment division at the World Trade Organization (WTO).“The constraint is not technology. It is actually regulation and the lack of development of regulatory frameworks,” said Marchetti during a Monday speech in Geneva, at the launch of WTO’s study on stablecoins in world trade.He cited an October 2025 report from the Financial Stability Board which found that only 39%, or 11 out of 28 surveyed jurisdictions, have finalized their stablecoin regulatory frameworks.Marchetti added that stablecoins may improve some of the main friction points of trade finance, but currently only account for 3% of total international payments due to fragmented regulatory regimes. The WTO’s report identified five friction points that may be improved by stablecoin adoption, including high costs, low speed, limited access, insufficient transparency and foreign exchange limitations.Stablecoins ability to ease friction in international payments. Source: Cointelegraph/WTOThe report also revealed that stablecoin payments in cross-border payments grew 35-fold between 2020 and mid-2024.Related: Metaplanet cuts Series 10 stock pool by 41%, plans Hong Kong subsidiaryEmerging economies stand to gain most from stablecoin adoption: WTODeveloping economies stand to benefit most from stablecoin adoption due to their ability to reduce remittance fees. However, these same countries have the least developed regulatory regimes to facilitate adoption, according to the WTO’s director. He said:“Contribution to trade will depend far less on the technology than on regulatory convergence, interoperability and the surrounding financial infrastructure, especially in developing economies that stand to gain.”Some of the largest global payment processors are exploring stablecoins to improve cross-border payments.In August, Mastercard partnered with stablecoin orchestration network Borderless to pilot how to bring more trust into cross-border stablecoin transfers through the payment processing giant’s Crypto Credential framework. In June, it announced plans to expand its settlement capabilities to include intraday, weekend and holiday card settlement, including settlement through stablecoins.Also in August, Western Union said it partnered with stablecoin infrastructure provider Rain to launch a digital wallet and Visa-branded card that enables users to hold and spend a US dollar-backed stablecoin in 37 markets, planning to expand it to more than 60 markets by the end of the year.Magazine: Why Australia’s $17B crypto opportunity depends on regulation
Why This Crypto Regulation News Matters
First, this development may affect exchanges, token listings, stablecoins, compliance rules, and market sentiment. In addition, it may influence licensing, reporting requirements, and future enforcement actions. As a result, traders and investors should watch the next legal and policy steps closely.
What to Watch Next
Watch for follow-up statements from regulators, court filings, exchange responses, and policy updates. In particular, any new guidance on licensing, enforcement, or stablecoin rules could have a direct impact on the broader crypto market.
