“Global coin offerings” (ICOs/STOs/IEOs/IDOs and similar sales) sit in a fast-shifting regulatory map. In 2025, the EU’s MiCA regime is coming fully online, the UK is enforcing strict marketing rules, Hong Kong and Singapore have formal frameworks (including new stablecoin regimes), Dubai updated its VA rulebooks, and the U.S. SEC—despite softening its posture—still treats many tokens as securities. Meanwhile, hacks in H1 2025 already exceeded 2024’s total. If your capital touches non-compliant token sales, certain stablecoins, privacy tokens, or exchange-run yield programs, your exit and recoverability risks are elevated.
What “global coin offering” really means in 2025
Token sales take many forms—ICO, STO (securities-style), IEO/IDO (exchange or DEX-facilitated). Across major markets, regulators apply existing securities laws to these offerings when buyers expect profits from others’ efforts (the Howey test in the U.S.). IOSCO’s global recommendations and the SEC’s digital-asset framework are the reference points many supervisors follow or echo.
Regulation snapshot (by region)
- United States. The SEC approved spot Bitcoin ETFs (Jan 2024) and spot Ether ETFs (July 2024), yet continues to treat many token sales as securities; 2025 also saw the SEC dismiss its Binance suit and end the Ripple case, signaling a shift in approach—not a free pass.
- European Union. MiCA is live in phases: stablecoin (ART/EMT) rules since June 30, 2024; most CASP requirements from Dec 30, 2024; transitional “grandfathering” runs to July 1, 2026 in some cases. ESMA has warned firms not to mislead users about MiCA coverage.
- United Kingdom. The FCA financial-promotion regime (Oct 2023) mandates risk warnings, cooling-off, and appropriateness checks; the FCA has been actively reviewing compliance.
- Hong Kong. The SFC tightened custody standards for licensed VA trading platforms (Aug 15, 2025) and is consulting on mandatory licensing for VA dealers and custodians; a new HKMA stablecoin regime took effect Aug 1, 2025.
- Singapore. MAS finalized a stablecoin framework (Aug 2023) and continues to clarify requirements for Digital Token Service Providers and retail risk warnings.
- United Arab Emirates (Dubai). VARA issued comprehensive rulebooks and in May–June 2025 updated them—including a Virtual Asset Issuance Rulebook—raising the bar for VASP compliance.
Where investments are most at risk today
1) Non-compliant token offerings (securities exposure)
If an offering meets securities criteria (e.g., Howey in the U.S.) but isn’t registered or exempt, investors face trading halts, forced unwinds, rescission risk, and platform delistings. Courts allowed major SEC cases to proceed in 2024, and even with enforcement shifts in 2025, “investment contract” analysis still applies.
2) Stablecoins that don’t meet new regimes
Under MiCA, only compliant stablecoins can be widely offered in the EU; obligations include redemption rights, reserve and disclosure rules. Hong Kong and Singapore add their own redemption/time-bound and reserve standards. Non-compliant stablecoins may face marketing limits, de-listings, or geo-blocks—impacting liquidity and exit.
3) Privacy coins and assets under delisting pressure
Privacy tokens face mounting exchange restrictions due to AML/traceability expectations. Example: Kraken delisted Monero (XMR) across the EEA in late 2024; similar moves keep recurring as new rules arrive. Liquidity risk can spike quickly.
4) Exchange “staking” and yield programs
Centralized “staking-as-a-service” and yield-bearing products have been consistent SEC targets since 2023, resulting in shutdowns and penalties. Expect continued scrutiny around pooled staking, marketing of “rewards,” and disclosure.
5) Platform and custody risk (hacks, insolvency, rehypothecation)
H1 2025 already saw $2.17B stolen from crypto services (including the Bybit mega-hack), surpassing all of 2024; regional exchanges have also reported breaches. Hot-wallet compromise, poor key management, and lax operational security remain acute threats.
6) Misleading promotions & influencer-led sales
The UK has tightened crypto advertising—mandating standard risk warnings, 24-hour cooling-off for first-time buyers, and sanctions for non-compliance. If a token sale reaches you via non-compliant promotions, that’s a red flag in itself.
Due-diligence checklist before you commit capital
Step 1 — Classify the token in your jurisdiction.
Is it likely a security, e-money/stablecoin, commodity, or something else? Map it to local tests (e.g., Howey) and see whether the issuer/exchange has the correct permissions.
Step 2 — Read the whitepaper and legal docs for claims about regulation.
In the EU, watch for MiCA-related statements (stablecoin redemption rights, reserves). Be wary of firms using “regulation” mainly as a marketing pitch.
Step 3 — Check the venue.
If you’re buying via an exchange/broker, confirm licensing (e.g., CASP in EU, FCA permissions/approvals for promotions in the UK, SFC-licensed in Hong Kong, MAS licensing in Singapore, or VARA VASP status in Dubai).
Step 4 — Inspect tokenomics & controls.
Look for unlock schedules, treasury custody, admin keys, upgrade rights, and audit history. If returns are “guaranteed,” walk away. (Regulators repeatedly warn on this point.)
Step 5 — Evaluate operational security.
Prefer venues with cold-storage policies, independent attestations, proof-of-reserves with liabilities, and incident-response disclosures. Recent theft data shows why this matters.
Step 6 — Consider regulated exposure instead.
Where available, spot-crypto ETFs (BTC, ETH) reduce direct custody risk and simplify tax/reporting, though market risk remains.
Red flags specific to coin offerings
- Unregistered sale to the public while promising “profit sharing” or “dividends.”
- Use of aggressive influencers without compliant risk warnings (UK focus).
- Privacy-coin sales targeting regions where liquidity is shrinking due to exchange delistings.
- Stablecoin claims without clear redemption mechanics, reserve attestations, or jurisdictional permissions under MiCA/HKMA/MAS.
Portfolio risk controls you can implement today
- Cap single-token exposure; size positions as if the asset could gap 50–100%. (ESMA repeatedly flags volatility.)
- Keep exchange balances minimal; use hardware wallets for long-term holds and split custody when feasible. (Hacks are trending higher again in 2025.)
- Prefer jurisdictions and products with clear, enforced rules (EU MiCA, UK FCA, HK/Singapore frameworks, Dubai VARA).
FAQ
Are coin offerings legal?
Depends where you live and the token’s characteristics. Many offerings are treated as securities sales if buyers expect profit from others’ efforts, which triggers registration/disclosure.
What’s the safest way to get crypto exposure if I’m worried about custody?
Consider regulated routes like spot BTC or ETH ETFs (jurisdiction-dependent). They remove direct private-key risk but still carry market risk.
Are stablecoins “safe” under MiCA?
MiCA improves consumer protections (reserves, redemption), but only for compliant issuers/coins. Non-compliant stablecoins may face offer/marketing limits in the EU.
Why are privacy coins frequently delisted?
AML/traceability expectations from regulators push centralized venues to drop or limit them, shrinking liquidity and raising exit risk.
