2024 has proven to be a recovery year for crypto with Bitcoin ETFs being approved in the U.S. in January, followed by Ethereum ETFs approval in May, as well as significant changes in the EU’s stance on the asset. As blockchain technology continues to evolve and bring changes to various traditional sectors, what can we expect to change in terms of crypto regulation in 2025? Let’s explore some of the key upcoming regulatory trends and what kind of impact they may have on the industry.
Trump Victory Signals Improved Crypto Regulations in the U.S.
The new U.S. president-elect, Donald Trump, is known for his more crypto-friendly stance and has addressed the topic of digital currencies during his campaign. His victory signals a more supportive environment for the industry, which has already been reflected in several currencies, such as Dogecoin, going up significantly since the elections. Crypto enthusiasts are now eagerly waiting for the upcoming Binance listings and are ready to make their moves.
However, these aren’t the only changes we can expect to arise from Trump’s victory. His administration is reportedly set to make some significant adjustments to cryptocurrency regulations. One major change it’s considering is the transfer of significant authority from the Securities and Exchange Commission (SEC) to the Commodity Futures Trading Commission (CFTC). SEC has historically had a more aggressive stance towards digital assets and this shift in the authority could foster innovation and attract investment, particularly in assets such as Bitcoin and Ether.
As crypto fans have predicted, we’re currently seeing a bull run in which prices are going up, and regulatory changes are incoming. Kristin Smith, the CEO of the Blockchain Association, a lobbying group from D.C. said that we should expect less hostility from the government and that the new administration’s stance on crypto is positive news for all parts of the ecosystem.
The U.K. Government’s Plan for a New Regulatory Framework
The UK’s labor party, which has swept into power in 2024, is gearing up to introduce a thorough new regulatory framework for cryptocurrencies, stablecoins, and staking services. These changes are to be implemented in 2025 and aim to unify the fragmented measures currently in place and provide a clear pathway for the country to become one of the world’s hubs for digital assets.
Tulip Saddiq, who serves as the country’s economic secretary, presented the new vision at the City & Financial Global Tokenization Summit in London. The new legislation plans to align the country’s crypto landscape with global developments in the industry, including the Markets in Crypto-Assets (MiCA) which was introduced in the EU.
Perhaps the best news for crypto enthusiasts in the U.K. is that the party plans to deliver this new regulatory regime in just one phase. Prime Minister Keir Starmer said that this approach would be simple and more logical, highlighting the government’s intent to resolve some long-standing legal ambiguities swiftly. These moves may come as a result of the country’s push to remain competitive as other countries continue to take more crypto-friendly stances. Siddiq has said that the delays in establishing a regulatory framework in the U.K. have driven crypto companies to more favorable locations.
Other Countries Embracing New Crypto Regulations
While there’s been a lot of talk about new crypto regulations in the U.S. and the U.K. as their new administrations are set to create clearer frameworks, other countries are making strides to adopt new policies and foster innovation in the crypto world. Rwanda has reported that it will look to establish its crypto regulations in Q1 of 2025. The National Bank of Rwanda (NBR) is partnering with the Capital Markets Authority in Rwanda to introduce new guidelines. However, with only a few countries in the world having established crypto regulations, the government said it will not rush with the process.
South Korea is also said to be preparing to introduce regulations regarding cross-border transactions involving digital assets in late 2025. The country’s Ministry of Finance has said that companies making transactions in crypto will have to pre-register with regulatory bodies and report their transactions to the Bank of Korea on a monthly basis. The country has already introduced new laws in 2024, looking to target fraudulent crypto trading that has proven to be a significant issue.
Another country that continues to adopt new crypto regulations is Russia. The country’s long-awaited Digital Ruble will be arriving in 2025, marking a significant step forward in the country’s stance on digital currencies. The lawmakers in the country have also previously passed a new law allowing the use of cryptocurrency payments for international transactions despite the continued sanctions. It’s been reported that Russia is adopting digital currencies more and more as a way to challenge Western sanctions. The government has also proposed a 15% tax on crypto income from trading and mining, starting in 2025.
Conclusion
With the recent developments in the political scene in the U.S. and major changes in regulatory frameworks in the rest of the world, 2025 is set to be a transformative year for the crypto industry. Clearer regulations and more supportive policies will open up new opportunities and some long-standing challenges are finally about to be addressed.
