Abstract

The regulation of virtual assets such as cryptocurrencies, stablecoins, Non-Fungible Tokens (NFTs) and Decentralised Finance (DeFi) protocols, represents a contested arena where economic innovation intersects with geopolitical interests, financial stability concerns and ideological debates over sovereignty and globalisation. This article examines the politics underlying virtual assets regulation, tracing global trends shaped by global standard setters such as the Financial Action Task Force (FATF), Financial Stability Board (FSB) and the International Organization of Securities Commissions (IOSCO), while analysing national responses in key jurisdictions such as the United States, the European Union, China, India, the United Kingdom, Japan. The article also highlights regulatory development and responses in Ghana and Nigeria. Drawing on regulatory capture theory and comparative political economy, it argues that virtual assets regulation is not merely a technical exercise, but a politicised process influenced by lobbying, electoral dynamics and international power asymmetries. Global harmonisation efforts coexist with regulatory fragmentation, posing challenges for cross-border compliance and innovation. The analysis highlights implications for global financial governance and proposes pathways for more equitable regulatory frameworks.

Keywords: Virtual asset, Stablecoins, Cryptocurrency, Regulation