Cryptocurrency Needs Security: UBS Calls for Global Regulation of Bitcoin and Ethereum

Unified Crypto Regulation?

At the Annual Investment Summit 2025 held in Dubai, UBSs Group Risk Control Director, Stela Willemstein, emphasized the urgent need for global regulation of cryptocurrencies like Bitcoin and Ethereum. She stressed that a unified legal framework would not only enhance stability and security but also ensure that banks remain pivotal players in the emerging Web3 era. Willemstein highlighted that the rapid advancement of decentralized finance (DeFi), blockchain, and Web3 technologies necessitates harmonized regulatory conditions to foster long-term stability. Without these, the fast-evolving crypto market could face significant risks and uncertainties. Dubai has positioned itself as a leader in crypto regulation with the establishment of the Virtual Assets Regulatory Authority (VARA) in 2023. Despite this progress, Willemstein pointed out that global regulation remains fragmented. According to Swiss Fintech Avaloq, 39% of people in the Gulf States engage with cryptocurrencies, surpassing the global average of 30%, yet a cohesive regulatory framework is still lacking. Willemstein further asserted that security and stability must form the foundation of the new financial era. She believes that banks will continue to play a crucial role if they adhere to the high standards of traditional finance, particularly in anti-money laundering (AML) efforts. "The same standards that apply in traditional finance must be respected by all players in the crypto ecosystem," she stated.

Market Analysis

The summit also underscored the transformative potential of digital assets. Willemstein noted that the democratization of financial access could significantly boost financial literacy. Banks like UBS are actively working to develop the infrastructure needed for digital currencies and tokenized assets, aiming to enhance cross-border communication among banks, regulators, and market participants. A report from Reuters in October 2025 revealed that major banks, including UBS, Deutsche Bank, and Goldman Sachs, are developing stablecoins pegged to stable currencies like the US Dollar and Euro. These stablecoins are intended to reduce the volatility often associated with cryptocurrencies such as Bitcoin.

Innovation and Risk

While acknowledging the opportunities, Willemstein also warned about cyber risks and the need for improved public awareness regarding digital banking and information security. She envisions a future banking landscape by 2030 marked by artificial intelligence, virtual reality, and hyper-personalized services. "Using technologies like AI to create hyper-personalized services will completely transform the customer experience," Willemstein said, envisioning a future where even virtual reality sessions between clients and advisors could become commonplace. In conclusion, UBS sees itself as a bridge between innovation and regulation, striving to build an inclusive, transparent, and technologically advanced financial world that upholds the core values of trust, compliance, and security.