I. Introduction
In 2025, global cryptocurrency regulation is reaching a historic turning point. What was once considered a gray area in the crypto asset sector is now gradually being intervened and reshaped by the 'visible hand' of government. From the introduction and review of a series of milestone crypto bills in the U.S. to the formal implementation of (Stablecoin Regulations) in Hong Kong, major global economies are almost synchronously moving from vague, passive, or even suppressive attitudes to actively constructing clear regulatory frameworks. This global policy shift signals that the crypto industry is bidding farewell to the savage growth era and moving towards a new phase characterized by compliance and accelerated integration with traditional finance.
This article aims to comprehensively sort out and deeply analyze the significant progress of global crypto policies since 2025 and to look forward to their profound impact on the future market landscape. We will first focus on the United States, dissecting its series of measures in legislation, administration, and regulation; then, we will turn our attention to the global stage, reviewing the policy dynamics of key jurisdictions such as the EU, Hong Kong, Singapore, and the UAE; subsequently, we will reveal the interplay between policies and markets through the analysis of market prices, institutional movements, and on-chain data; finally, we will distill several core trends of future global cryptocurrency policies to provide forward-looking references and insights for investors navigating this transformative landscape filled with opportunities and challenges.
II. The Interconnection Effect Between Crypto Policies and the Market
Since 2025, the crypto market has shown a clear policy interconnection effect, repeatedly performing a 'buy on expectation, sell on fact' trend. The policy hand is bringing norms and guidance to the crypto industry while reshaping the operational logic of the market.
1. The Interconnection of Crypto Policies and Market Prices
At the beginning of 2025, Bitcoin continued the upward momentum from the end of the previous year, briefly breaking historical highs and surpassing the $100,000 mark in early January. This surge largely reflected the expectations of a Trump victory and his promised 'crypto-friendly' policies. However, market sentiment also experienced fluctuations: due to the delay in specific policy details in mid-January, Bitcoin prices significantly corrected in February, dropping from the early January high (around $105,000) to about $70,000, with a monthly decline exceeding 17%. This volatility reflects investors' sensitivity to policy realization — expectations drove the rise, while delays triggered corrections. At the beginning of March, when Trump hinted on social media about establishing a national strategic crypto reserve, the market reignited: after the weekend announcement, Bitcoin surged by 20%, with altcoins like XRP skyrocketing by 25% in two days. However, the subsequent formal executive order did not include plans for the government to directly purchase Bitcoin, leaving the market feeling that 'the good news had been fully priced in,' and Bitcoin retreated approximately 6% after a brief spike.
As July approached with America's 'Crypto Week,' legislative benefits gradually materialized, resulting in a short squeeze in the market. In early to mid-July, Bitcoin broke through previous highs and continued to set records, surpassing $120,000 on July 14. During this period, multiple favorable factors converged: the series of bills (GENIUS, CLARITY, etc.) soon to be passed by the House of Representatives were seen as a milestone in establishing the industry’s outlook, prompting investors to position themselves early; at the same time, the SEC shifted its stance and accelerated the approval of spot Bitcoin and Ethereum ETFs, leading to sustained and strong capital inflows into Bitcoin spot ETFs, driving prices to new heights. Crypto-related stocks also rose in tandem, with U.S. listed mining companies and major holders’ stock prices strengthening. Digital asset investment funds recorded net inflows as high as $3.7 billion in a single week, raising the industry's managed asset scale to a historic high of $211 billion. Among them, Bitcoin-related products attracted $2.7 billion, dominating the inflows, while Ethereum and others also received considerable incremental funds. It can be said that policy dividends hastened capital to 'run into the market,' directly propelling significant market increases.
2. Exchange Liquidity and Institutional Trends
The improvement in the regulatory environment in 2025 is also reflected in the trading market structure. First, the liquidity of compliant exchanges in the U.S. has significantly rebounded. With clearer U.S. regulations and institutional entry, the order depth for Bitcoin on several licensed exchanges (such as Coinbase) has dramatically increased, and the U.S. market has regained dominance over 1% depth liquidity in Bitcoin globally. The clear and professional enforcement environment has created positive feedback: deeper liquidity attracts more capital, further enhancing market thickness. Additionally, the behavior of institutional investors has changed significantly — besides the influx of ETF funds, U.S. listed companies and traditional institutions have rekindled their enthusiasm for investing in Bitcoin. Strategy has repeatedly increased its holdings in Bitcoin throughout 2025, and by July, its position had reached 628,791 Bitcoins, accounting for 2.994% of the total Bitcoin supply. Furthermore, multiple Wall Street asset management firms have taken advantage of favorable policies to launch new cryptocurrency trusts and fund products, providing compliant exposure to clients. According to CoinShares report statistics, in the first seven months of 2025, digital asset investment products have seen cumulative net inflows exceeding $10 billion, far surpassing the total for all of 2024. Even within traditional hedge funds, crypto assets have begun to be viewed as compliant components of investment portfolios.
Source: https://bitbo.io/treasuries/microstrategy
3. On-chain Data and Liquidity
Long-term holders are becoming the absolute majority of Bitcoin supply. According to a Coinbase research report, as of August 2025, approximately 85% of Bitcoin supply is held in long-term wallets, with the proportion available for trading dropping to a historic low. A significant amount of Bitcoin has not returned to exchanges after the early surge but remains continuously stored in cold wallets. Correspondingly, the balance of Bitcoin on exchanges is showing a declining trend, indicating that investors are more inclined to hoard Bitcoin for the long term rather than engage in frequent trading.
The supply of stablecoins and on-chain liquidity has significantly rebounded. After a stagnation in 2022-2023, compliant stablecoins began to grow again in 2025, indicating that funds are searching for entry channels. The increase in stablecoin issuance is seen as a leading indicator of restored risk appetite. Particularly against the backdrop of U.S. regulations clearly supporting dollar stablecoins, the market value of compliant stablecoins like USDC has stopped declining and rebounded, with monthly increases reaching billions of dollars. These stablecoins provide new liquidity to the market. On-chain data shows that the daily trading volume of dollar stablecoins grew by 28% year-on-year in 2025, with the total on-chain payment transaction volume for the year even surpassing that of Visa and Mastercard combined. This highlights the increasingly important role of stablecoins in global capital flows and reflects how regulation is pushing them from the gray area into mainstream payment networks.
Source: https://defillama.com/stablecoins
In summary, the market response in 2025 can be summarized as: the clarification of policies leads to a dual increase in incremental funds and holding willingness. Bitcoin, with its trustworthiness and liquidity, becomes the biggest beneficiary, not only achieving new price highs but also climbing to a peak in market capitalization dominance in recent years. Ethereum follows closely, solidifying its position as 'digital silver.' Most competing coins are relatively lagging behind or even marginalized due to regulatory pressures or lack of new narratives. On-chain, mainstream assets are accelerating their concentration towards long-term investors, and trading behavior is becoming more rational. All of this signifies that the crypto market is gradually emerging from the wild era and moving towards a mature and stable phase.
III. Progress of U.S. Crypto Policies
1. Breakthrough in Cryptocurrency Legislation
The year 2025 saw a milestone breakthrough in cryptocurrency legislation in the United States. In addition to the recently passed GENIUS Act and CLARITY Act, multiple other significant legislative proposals related to cryptocurrencies are being advanced, covering key areas such as CBDC prohibition, Bitcoin strategic reserves, consumer protection, mining, and taxation.
GENIUS Act: On July 18, Trump signed the (GENIUS Act), marking the first comprehensive cryptocurrency legislation passed by the U.S. Congress, focusing on stablecoin regulation and prohibiting the payment of interest on them, signifying an important step for the U.S. in digital asset policy. The GENIUS Act stipulates: only federally insured financial institutions (banks, credit unions, and specially approved compliant institutions) may issue payment stablecoins; issuers must maintain a 1:1 backing of fiat currency or high-quality reserve assets and undergo monthly reserve disclosures and regular audits; all stablecoin issuers must also comply with (the Bank Secrecy Act), implementing anti-money laundering and anti-terror financing measures. The act aims to provide a clear regulatory framework for the stablecoin industry and is viewed as a 'banking license' system for stablecoins.
CLARITY Act: Following closely, the U.S. House of Representatives also reviewed another significant bill (the CLARITY Act). This bill aims to clarify the criteria for defining digital assets as securities or commodities and delineate the regulatory responsibilities of the SEC and CFTC regarding cryptocurrencies. The CLARITY Act seeks to grant the Commodity Futures Trading Commission (CFTC) broader regulatory authority over non-security crypto assets while establishing a pathway for certain tokens that meet decentralization and functional standards to transition from securities to commodities, thus ending the previous 'regulatory gray area.' The CLARITY Act has already passed the House and is awaiting Senate review.
The CBDC Prohibition Act: Concurrently with the GENIUS and CLARITY Acts, measures have been advanced to set federal prohibitions against issuing a U.S. Central Bank Digital Currency (CBDC), which has passed the House and is awaiting presidential signature or Senate collaboration. This act aims to safeguard financial privacy and restrict the Federal Reserve's expansion of intervention in the digital currency space.
The BITCOIN Act: Proposed by Senator Cynthia Lummis on March 11, 2025, and co-sponsored by bipartisan lawmakers. The act aims to centralize Bitcoin obtained by the federal government through confiscation into a 'strategic Bitcoin reserve' and requires the development of a purchasing plan, suggesting a goal of acquiring 1 million BTC over five years. It has currently been submitted to the Senate Banking Committee for review and has not yet entered the voting phase.
DCCPA: Jointly initiated by several senators, this act seeks to classify most crypto assets as 'commodities' under the supervision of the CFTC while enhancing consumer protection measures. The act started in 2022 and is still under consideration.
FIT21 Act: Passed by the House in May 2024 but has yet to be voted on in the Senate. Its goals are similar to the CLARITY Act, clarifying the regulatory responsibilities of the CFTC and SEC, defining standards for decentralized blockchain businesses, and providing exemptions for small-scale issuances, also incorporating stablecoins into the regulatory framework and clarifying anti-fraud enforcement powers.
Additionally, some states, such as Texas, passed a state-level 'Bitcoin Strategic Reserve' bill in June 2025, allowing the government to invest in digital assets with a market value of at least $500 billion (such as Bitcoin). The White House Digital Asset Working Group released a comprehensive 160-page report recommending the acceleration of tax code updates (such as redefining income from mining, staking, etc.), the establishment of regulatory sandboxes, and the simplification of banking access systems, aligning its content with several proposals (CLARITY, GENIUS, Anti-CBDC).
2. Shift in Administrative Measures and Regulatory Agencies
While advancing legislation, administrative authorities and regulatory agencies have also taken a series of significant measures to reverse the uncertain attitude towards the crypto industry observed in recent years, beginning to coordinate all regulatory agencies from the top down and formulate a 'one chess' strategy for digital assets.
In January 2025, the newly inaugurated Trump administration issued a presidential executive order titled (Strengthening America’s Leadership in Digital Financial Technology), explicitly prohibiting the development or use of any U.S. Central Bank Digital Currency (CBDC). This executive order reversed the previous administration's supportive stance towards exploring CBDCs, halting the possibility of the Federal Reserve issuing a digital dollar under the guise of safeguarding financial privacy and monetary independence, and instead emphasized support for dollar-backed stablecoins to maintain the dollar's dominance in the digital age. This order also highlighted the protection of citizens' rights to participate in blockchain networks (including mining, node validation, and self-custody), demanding that no legal policies improperly restrict these activities. More importantly, the executive order revoked the Biden administration's 2022 cryptocurrency executive order and the related framework from the Treasury Department, establishing the White House Digital Asset Market Working Group, led by the newly appointed “crypto czar” — former PayPal executive David Sacks. This working group convenes high-level officials from the Treasury Department, the Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC), and the Department of Justice, requiring each agency to present a unified digital asset regulatory framework report within 120 days to eliminate regulatory overlap and vacuums. On August 7, Trump signed an executive order allowing alternative assets such as private equity, real estate, and cryptocurrencies to enter 401(k) retirement savings plans, opening the door to approximately $12.5 trillion in retirement account funds.
Regarding the SEC, with the change in ruling parties, 2025 saw a significant policy shift at the U.S. Securities and Exchange Commission. Paul Atkins, the SEC chairman nominated by Trump, made establishing a digital asset regulatory framework the SEC's primary task after taking office. He adopted a relatively lenient regulatory stance, actively promoting the loosening of cryptocurrency regulations, including the approval of ETFs, regulatory guidance, and settlement of litigations. On July 31, Atkins launched a plan called 'Project Crypto,' aimed at comprehensively updating U.S. securities regulations to adapt to the blockchain and digital asset markets. He instructed SEC staff to develop clear guidelines for determining which crypto tokens are classified as securities and to draft disclosure and exemption plans to lower compliance thresholds. He also requested the SEC collaborate with companies wishing to issue tokenized securities to promote pilot programs for the on-chain listing of traditional financial assets.
3. Financial and Accounting Policies
In the financial management and accounting standards, the U.S. also introduced supporting measures in 2025 to integrate crypto assets with the traditional financial system. In January 2025, the SEC issued SAB 122, withdrawing the controversial 2022 accounting guidance on crypto custody, SAB 121. Previously, SAB 121 required banks and other institutions to record customer-held crypto assets as both liabilities and equivalent assets on their balance sheets, a rule criticized by the banking industry for causing excessive capital requirements and hindering banks from providing digital asset custody services. Congress attempted to overturn SAB 121 in 2023, but it was vetoed by Biden.
Now, the SEC has withdrawn this requirement, allowing custodial institutions such as banks to no longer need to make high provisions on their balance sheets for holding clients' crypto assets. The American Bankers Association (ABA) welcomed this, stating that it would 'allow banks to act as custodians of digital assets with greater peace of mind.' It is evident that the U.S. is removing barriers for traditional financial institutions to participate in the crypto space from an accounting standards perspective, facilitating the entry of compliant funds.
4. Strategic Reserves and Macro Policies
The Trump administration also incorporated Bitcoin and other digital assets into the national strategic vision. In March 2025, the White House issued an executive order to establish a 'Strategic Bitcoin Reserve' and a 'Digital Asset Reserve Account.' According to this order, the federal government will concentrate Bitcoin obtained from law enforcement seizures into the strategic reserve, ceasing to sell or liquidate them, and authorizing the Treasury and Commerce Departments to study budget-neutral solutions to increase Bitcoin holdings without adding taxpayer burdens. At the same time, government agencies must report their holdings of all crypto asset balances to the Treasury and the President's Digital Asset Working Group to achieve centralized management of state-owned crypto assets.
The Trump administration emphasized that this initiative aims to make the U.S. one of the 'first countries to establish an official Bitcoin reserve' to leverage the strategic value of Bitcoin as 'digital gold.' U.S. officials estimate that previous sporadic disposals of seized Bitcoins have cost taxpayers over $17 billion in potential value. The new policy attempts to correct this by 'locking up' these assets for national needs. The U.S. initiative to reserve crypto assets is a first globally, reflecting a significant shift in U.S. policy from past high-pressure regulation to viewing crypto assets as strategic resources.
In summary, since 2025, the U.S. has introduced concentrated measures across various levels of legislation, administration, and regulation, referred to within the industry as the 'Spring of Regulation.' Under the leadership of the Trump administration, the U.S. is attempting to position itself as the 'global crypto capital,' reversing previous vague and suppressive policies through stablecoin legislation, clearer market structure bills, and executive orders. These measures have had an immediate impact on the market: investor sentiment has improved significantly, and new funds have begun to flow into the U.S. compliant market.
IV. Progress of Crypto Policies in Other Countries
In addition to the U.S., many countries and regions around the world are also accelerating the improvement of their respective cryptocurrency regulatory frameworks in 2025, focusing primarily on stablecoins, anti-money laundering, and market regulations.
European Union: The EU's (Markets in Crypto Assets Regulation (MiCA)) officially came into full effect at the end of 2024, providing member states with a unified regulatory blueprint for crypto assets. MiCA brings the issuance and service of crypto assets under EU financial regulation, establishing strict rules for stablecoins: only entities with an electronic money institution license or credit institution status can issue stablecoins denominated in a single fiat currency (EMT), while tokens supported by a basket of assets (ART) must be established and regulated within the EU. Stablecoin issuers must meet capital requirements, and reserve assets must be of high quality and liquid, with regular disclosures of reserve composition and audit reports. The implementation of MiCA makes the EU the first major economy to formulate comprehensive crypto legislation. In the first half of 2025, regulatory agencies in various member states (such as the European Securities and Markets Authority (ESMA) and the European Banking Authority (EBA)) were busy drafting technical standards for MiCA, while exchanges, custodians, and other crypto service providers began applying for cross-EU licenses. This unified regulation brings a certain level of attractiveness to the EU market, and it is expected that by the end of 2025, a number of compliant trading platforms and stablecoin issuers will emerge in Europe.
United Kingdom and Australia: The UK passed the (Financial Services and Markets Act) in 2023, which includes provisions for regulating stablecoins and other crypto assets. This law empowers the Treasury and the Financial Conduct Authority (FCA) to classify the issuance and service of crypto assets as regulated financial activities. Between 2024 and 2025, the UK government will successively consult on specific rules, expecting to establish detailed guidelines for stablecoin issuance and crypto trading platform operations by the end of 2025, aligning them with the regulation of traditional financial institutions. The UK has an overall positive attitude, hoping that by improving laws, it can attract crypto businesses back to London. Australia also took action in 2025: following the release of the 'Token Mapping' report in 2022, the Australian government stated it would propose rules for crypto asset custody and exchange licensing in 2025, along with refining tax guidelines for digital assets.
Hong Kong: Hong Kong is actively exploring becoming a testing ground for China's cryptocurrency policy, looking into open exchange operations and public chain technology development, and establishing a regulatory sandbox environment to provide references for cryptocurrency policies in mainland China. Hong Kong is committed to becoming Asia's compliant crypto center. The Hong Kong Securities and Futures Commission (SFC) implemented a licensing system for virtual asset trading platforms as early as June 2023. In 2025, Hong Kong regulatory authorities further expressed support for the development of compliant stablecoins and tokenized securities. The (Stablecoin Ordinance), which came into effect on August 1, explicitly requires any issuer of stablecoins pegged to the HKD to obtain a license in Hong Kong, or else it would be illegal. Reserve assets must be high liquidity and high-quality assets, and their value must equal the nominal value of the circulating stablecoins, and they are subject to regulation and audits by the Monetary Authority. These measures indicate that Hong Kong aims to achieve a balance between investor protection and innovative development to attract global compliant crypto businesses. Currently, several large exchanges and crypto funds have chosen to set up offices in Hong Kong or seek licenses, and market liquidity has also rebounded.
Singapore: Singapore had previously adopted an open attitude towards the crypto industry, attracting a large number of industry companies and talent. However, the collapse of the FTX trading platform in 2022 led to huge losses for Singapore's sovereign funds like Temasek, and incidents involving the collapses of well-known cryptocurrency trading platforms such as Three Arrows Capital and Terraform Labs damaged Singapore's reputation as a financial hub in Asia. From 2023, the Monetary Authority of Singapore (MAS) gradually tightened relevant regulatory measures, requiring recognized stablecoins to meet standards for value stability, reserve custody, and capital adequacy, with issuers needing to obtain corresponding licenses. This led to exchanges like Binance, Bybit, and Huobi failing to obtain licenses and exiting the Singapore market by the end of 2023. In 2025, MAS continued tightening cryptocurrency trading regulations, mandating that digital token service providers serving only overseas clients must obtain a license from the authority to continue operating in Singapore after June 30, or else they must shut down their trading platforms to curb financial crimes such as money laundering utilizing cryptocurrencies. In terms of investment and innovation, Singapore launched sandbox programs like 'Project Guardian' to explore institutional decentralized finance. Overall, Singapore's attitude towards the crypto industry is 'encouraging innovation, prudent regulation.'
UAE: In recent years, the UAE has actively positioned itself as a crypto-friendly jurisdiction. The Central Bank of the UAE introduced the (Regulation of Payment Token Services) rules at the end of 2024. This set of rules defines fiat-backed stablecoins as 'payment tokens' and adopts a tiered access policy: locally issued Dirham (AED) pegged stablecoins can apply to become qualified payment tokens for domestic payment settlements, while foreign-issued stablecoins (like USDT, USDC) cannot be used as payment means within the country and may only be used for investment trading purposes. The UAE encourages local banks or institutions to issue AED stablecoins and explore government-supported multi-asset reserve stablecoins (backed by government bonds or gold, etc.). Regulations also prohibit the issuance or use of algorithmic stablecoins and anonymous privacy coins within the country to prevent systemic risks and money laundering. Additionally, the Dubai Virtual Assets Regulatory Authority (VARA) has also successively issued rules on token issuance and marketing between 2023 and 2025, requiring crypto companies operating in Dubai to be licensed and comply with a series of norms regarding advertising disclosure and investor protection. Overall, the UAE is establishing a multi-tiered crypto regulatory system, making it one of the most attractive crypto hubs in the Middle East while ensuring financial security.
Thailand: Thailand has implemented a series of supportive and regulatory measures in 2025. On one hand, the Thai government announced that, starting January 1, 2025, capital gains from digital asset transactions conducted through licensed crypto trading platforms would be exempt from capital gains tax for five years to encourage compliant trading development. This effectively provides tax incentives for investors to participate in crypto investments within a regulated environment, likely enhancing the attractiveness of the Thai market. On the other hand, the Thai Securities and Exchange Commission revised regulations in April 2025, requiring overseas crypto service providers (exchanges, brokers) that provide services to Thai citizens to register in Thailand and obtain a license; otherwise, they would be deemed illegal operations. Meanwhile, the SEC has strengthened its regulation of crypto advertising, investor suitability, and other aspects.
Pakistan: Pakistan has shifted from a previously vague or even prohibitive stance on crypto to embracing virtual assets to drive financial modernization. In July, the Pakistani government officially approved the (2025 Virtual Assets Bill), establishing the Pakistan Virtual Assets Regulatory Authority (PVARA) as an independent regulatory body responsible for licensing and overseeing the country's cryptocurrency and virtual asset service providers. This framework is similar to the VARA model in Dubai, aiming to introduce licensure and risk management to the domestic crypto industry. The Governor of the State Bank of Pakistan, Jameel Ahmad, stated that a digital rupee (CBDC) pilot is about to start, and legislation will establish a licensing and regulatory foundation for virtual assets. Pakistan has also formed a Crypto Committee (PCC) to promote innovative projects such as blockchain and Bitcoin mining, even inviting Zhao Changpeng, the founder of the world's largest exchange, as an advisor, and plans to establish a national Bitcoin reserve. Overall, Pakistan is attempting to transition from strict suppression to proactive regulation, hoping to carve out a share in the emerging digital finance sector.
Turkey: As an emerging market country with a large crypto user base, Turkey implemented strict new regulations in 2025 to combat illegal activities and maintain financial stability. The Financial Crimes Investigation Board has begun to enforce a series of anti-money laundering regulations for crypto: all crypto transactions must undergo mandatory real-name authentication, and transactions exceeding 15,000 lira must be reported and reviewed; a delayed settlement mechanism is set for all transactions — ordinary transfers must take 48 hours to complete, and first withdrawals must wait 72 hours. At the same time, new regulations impose limits on the circulation of stablecoins: personal daily stablecoin transaction limits cannot exceed the equivalent of $3,000, and the cumulative monthly total cannot exceed $50,000. Finance Minister Mehmet Simsek stated that this move aims to 'prevent the laundering of illegal gambling and fraud funds through cryptocurrencies.' Given that an estimated one-fifth of Turkey's population has participated in crypto investment, and the country ranks third in global trading volume, the new regulations will have a broad impact on the market. In the short term, new regulations may reduce on-site liquidity, but in the long run, they will help cleanse illegal fund flows, enhancing the legitimacy and transparency of Turkey's crypto ecosystem.
India: The Indian government's stance on cryptocurrency remains cautious and conservative, though some signs of softening attitudes have emerged. Since 2022, India has imposed a 30% heavy tax on crypto trading profits and a 1% tax deducted at source (TDS), leading to a sharp decline in domestic trading volumes. However, during its presidency of the G20 in 2023, India pushed for the IMF and FSB to formulate a global regulatory framework for crypto assets, indicating its inclination towards unified action under international rules. As of 2025, India has yet to introduce specific crypto legislation, and domestic crypto exchanges continue to operate under challenging conditions. However, government officials have repeatedly stated that they will not impose a blanket ban on crypto but will await international consensus. Regarding CBDCs, the Reserve Bank of India is gradually expanding the pilot scope of the digital rupee. In the future, India may choose to adjust its domestic policies after global standards become clearer.
Russia: Russia has implemented a 'dual' crypto regulatory strategy. Domestically, the use of cryptocurrencies as a means of payment remains strictly prohibited, while the promotion of the digital ruble (CBDC) is accelerating to strengthen state control over the monetary system. However, at the international level, to circumvent Western financial sanctions, Russia has taken a noticeably open attitude towards cryptocurrencies. At the beginning of 2025, the (Bill on the Use of Digital Financial Assets in International Settlements) officially came into effect, providing a legal framework for Russian importers and exporters to use cryptocurrencies for trade settlements with friendly countries. This bill authorizes specific enterprises to use mainstream cryptocurrencies like Bitcoin and Ethereum, as well as stablecoins, in foreign transactions to bypass the SWIFT system. Additionally, the Russian government is actively promoting the standardized management and taxation of the cryptocurrency mining industry, aiming to convert the country's abundant energy advantages into national fiscal revenue and foreign exchange reserves, realizing a strategic intent of 'nationalizing crypto mining.'
In addition to major economies, some small countries are also exploring crypto pathways. Bhutan, a small country in South Asia, continued to deepen its 'green mining' strategy in 2025, combining Bitcoin mining with its abundant hydropower resources to support national fiscal revenue and economic development. In April 2025, the Bhutanese government announced plans to jointly build multiple sustainable mining centers with international enterprises, aiming to become Asia's 'green crypto mining hub.' On the other hand, El Salvador continued to expand its national Bitcoin strategy, announcing the establishment of a 'Bitcoin National Wealth Fund' in 2025 to strengthen the country's Bitcoin reserve scale after making Bitcoin legal tender in 2021. Furthermore, the Salvadoran government launched a dedicated Bitcoin bond issuance project, planning to utilize the raised funds to build a 'Bitcoin City' and further strengthen Bitcoin's strategic support for the national economy.
Overall, policies around the world in 2025 have manifested similarities and differences: developed economies place greater emphasis on establishing comprehensive regulatory frameworks, while emerging markets focus more on preventing financial crimes and leveraging crypto opportunities. Stablecoin regulation is a common focal point, with Europe, America, and Hong Kong already establishing regulations to ensure stablecoins have adequate reserves and controlled issuance. Exchange regulation and anti-money laundering measures are also high-frequency themes, as countries begin to apply KYC/AML standards to crypto trading activities similar to those in traditional finance. It is expected that the legal status and regulatory requirements for cryptocurrencies in major jurisdictions worldwide will gradually become clearer.
V. Global Trends and Prospects for Crypto Policies
Looking ahead to the remainder of 2025 and beyond, cryptocurrency policy may exhibit the following trends, which could have a profound impact on the global market landscape:
1. Accelerating Global Regulatory Convergence: The U.S. policy direction may encourage major global economies to converge towards similar regulatory frameworks. On one hand, the GENIUS Act sets a benchmark for stablecoin regulation, and its requirements regarding compliant reserves and licensing could serve as a reference model for other countries. For instance, regulatory agencies in Japan and South Korea have reportedly begun evaluating the implications of the new U.S. regulations for their own stablecoin policies, while the EU will observe how the U.S. implements this act to adjust its own regulatory details. On the other hand, the challenges posed by the division between securities and commodities, which the CLARITY Act seeks to address, are common challenges faced by many countries. If the U.S. successfully classifies tokens with certain market value and decentralization as non-securities, it could provide regulatory insights for jurisdictions like the UK and Singapore, which seek to develop crypto finance, reducing the vacuum of regulatory uncertainty. Meanwhile, cross-border regulatory cooperation will also strengthen. Under the G20 framework, the IMF and the Financial Stability Board (FSB) proposed high-level guidelines for regulating crypto assets in 2023, and it is expected that by the end of 2025, countries will formulate their own regulations based on these principles and engage in information sharing.
2. Market Structure Becomes More Institutionalized and Commoditized: The shift in U.S. regulation is expected to bring traditional finance significantly into the crypto space. By the end of 2025, the CFTC may launch a regulatory framework for on-chain commodity trading, guiding more commodities and indices to trade in tokenized forms on-chain and incorporating them into compliance supervision. This will further commoditize and financialize the crypto market, deeply integrating the digital asset market with traditional commodity markets. Additionally, more types of crypto ETFs and investment products will be introduced. Following Bitcoin and Ethereum ETFs, regulators may permit a basket of crypto index ETFs, options ETFs, and other products to facilitate institutional allocations. Bitcoin may gradually display macro sensitivity similar to gold or the Nasdaq index, becoming an 'alternative asset' in institutional asset allocation.
3. Competition and Division of Regional Compliance Centers: In Asia and the Middle East, places like Hong Kong, Singapore, and Dubai are competing to create regional crypto hubs. Hong Kong has attracted many well-known trading platforms and projects due to its backing by mainland China and its robust financial infrastructure, coupled with the intensive rollout of exchange and stablecoin regulatory systems between 2023 and 2025. Singapore continues to be a breeding ground for blockchain startups with its sound legal system, tax advantages, and business-friendly environment. The collaboration between the two places is expected to establish Asia's important position in the global crypto landscape. The UAE (Dubai) and Saudi Arabia in the Middle East are also eager to catch up by attracting crypto companies pressured from Europe and America through lenient tax systems and open regulations. In the coming years, we may see a multi-centered pattern: North America with crypto financial centers like New York and Miami, Europe with Switzerland and Paris actively embracing regulations, Asia shining with both Hong Kong and Singapore, and the Middle East using Dubai as a stronghold. These compliance highlands will dominate the flow of compliant funds and projects.
4. New Opportunities in Technology and Compliance Integration: Clear policies will unleash new momentum for industrial innovation. Once it is clear which behaviors are prohibited, companies can boldly invest in allowed directions. For instance, the U.S. bans CBDCs but supports private stablecoins, which may trigger a surge in bank-issued dollar stablecoins, with traditional banks and fintech companies collaborating to launch various compliant stablecoins to fill payment gaps, representing significant market potential. The issuance of security tokens is expected to gain traction, with compliant exchanges listing on-chain stocks and bonds. Blockchain technology will see more applications in traditional areas such as supply chain finance and trade settlements. Even decentralized identity (DID) and zero-knowledge proof Web3 technologies may find applications in privacy compliance and digital identity verification, leading to innovations in compliance technology.
5. Evolution of Investor Behavior: Policy evolution will also profoundly influence investor sentiment. After experiencing the regulatory pressures of 2022-2023, global investors have demonstrated stronger compliance awareness and risk management consciousness in the rebound of 2025. In the near future, we may see U.S. pension plans officially allowing allocations to Bitcoin ETFs, and some countries' sovereign wealth funds openly announcing allocations to digital assets as a long-term strategy. All of these will further strengthen the market's fundamentals and reduce the proportion of excessive speculation. Of course, in the new policy environment, the market may also witness new volatility patterns — for instance, due to institutional algorithmic trading participation, short-term market fluctuations may closely follow macro news and liquidity changes, requiring investors to adapt to the rhythm of an institutionalized market, different from the emotional ups and downs driven purely by retail investors in the past.
Conclusion
The cryptocurrency world in 2025 is undergoing a profound transformation from disorder to order. Compliance has become the main theme, with major global economies extending their 'visible hands' to this emerging field almost simultaneously, either by enacting laws or issuing guidelines to bring crypto assets into the mainstream financial system. In the long term, this policy evolution will profoundly shape the infrastructure and investment environment of the crypto industry. Clearer rules will drive out bad money and retain good money, allowing the industry to move away from the savage growth phase and into a new stage of compliant and orderly development. For ordinary investors, this means that crypto investment is no longer an adventure adrift in a gray area but is expected to gradually become a legally protected, transparent, and sustainable asset allocation choice.
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