The cryptocurrency regulatory environment has undergone significant changes over the past decade, with a central question dominating the industry: What will the rules look like? Fortunately, this question has now been answered, with transparent and legally anchored rules emerging in Europe, the US, and Asia. However, regulatory clarity does not necessarily equal readiness, and the industry must now focus on implementation.
Regulatory Clarity and Implementation
As we approach 2026, the pressure will shift from interpretation to implementation, and crypto companies must demonstrate their ability to comply with the rules every day in areas such as custody, payments, liquidity access, and reporting. This will require a significant shift in focus, from intent and roadmaps to actual operational capabilities. Companies that can operate a compliant infrastructure without disruption will be well-positioned for success, while those that cannot will face significant challenges.
Regulatory gaps can have a direct impact on cash flows, leading to liquidity shortages, settlement errors, and balance sheet risks. Delays in licensing, the travel rule, and uneven oversight can all contribute to regulatory uncertainty, making it essential for companies to prioritize compliance by design. This approach involves building a crypto infrastructure that meets regulatory requirements by default, embedding compliance directly into systems, workflows, and transaction logic.
Compliance by Design
Compliance by design is not just a theoretical concept; it is already delivering visible results. For example, on December 11, 2025, JP Morgan arranged a $50 million commercial paper offering by Galaxy Digital to be conducted on Solana, with Coinbase and Franklin Templeton among the buyers and USDC used for the issuance and redemption. This transaction demonstrates the potential of compliance by design, enabling access to institutional capital and partners while maintaining regulatory readability.
However, implementing compliance by design is not without its challenges. Fragmented regulatory frameworks across regions can increase fixed costs and reward larger platforms, pushing smaller companies to consolidate or exit. Additionally, cybersecurity and operational resilience become mandatory mandates, as a major incident can trigger rapid de-risking by banks and payment partners.
Rewards and Challenges in 2026
In 2026, companies that prioritize compliance by design will be rewarded with access to banking, payments, liquidity, and institutional counterparties, even with stricter standards. Those that view compliance as an external layer will continue to pay for it through friction, settlement delays, limited liquidity, and partners quietly resigning. While compliance by design comes with limitations, the alternative is worse, and companies will feel the difference in 2026.
According to Carlos Martins, Head of Compliance at Currency.com, “Compliance by design is not just a theoretical concept; it is already delivering visible results. Companies that prioritize compliance by design will be rewarded with access to institutional capital and partners, while those that do not will face significant challenges.” With over 30 years of experience and senior positions at Credit Suisse (Gibraltar) Limited and SG Hambros Bank, Martins is a GFSC licensed EIF Director and Chairman of the Gibraltar Association of Compliance Officers.
Carlos Martins, a renowned expert in the field, emphasizes the importance of compliance by design in the crypto industry. As the industry continues to evolve, it is essential for companies to prioritize compliance and build a robust infrastructure that meets regulatory requirements.
For more information on compliance by design and its implications for the crypto industry, visit https://crypto.news/compliance-by-design-or-a-liquidity-squeeze-2026/
