title: Cryptocurrency Regulation in 2025 description On the regulation of cryptocurrencies in 2025. Told by Holiverse CEO Lado Okhotnikov Н1 Cryptocurrency Regulation: How New Laws Will Change the Market in 2025 keywords Lado Okhotnikov, Holiverse, regulation The cryptocurrency market remains a battleground for decentralization advocates and regulators. In 2024, the fervor reached its peak: this was facilitated by global economic changes, increased regulatory activity in different countries, as well as the consequences of lawsuits against large cryptocurrency exchanges – #FTX and Binance. The cryptocurrency market needs new legislation. We will look at different aspects of this topic to understand how new regulatory laws can change the financial market in 2025. And also get acquainted with the outside opinion on the future of regulators and #DeFi projects. Problems of government regulation of cryptocurrencies One of the main problems of the cryptocurrency industry is the lack of a transparent approach to government regulation of cryptocurrencies at the international level. Different countries take different approaches. Cryptomarket regulation in the USA The US Securities and Exchange Commission considers many cryptocurrencies as securities, which means they are subject to strict financial supervision rules. This has led to many lawsuits related to unregistered ICOs and the sale of tokens without appropriate licenses. As a criterion for assessing cryptocurrency, the regulator chose the Howey test, which was developed by the US Supreme Court in 1946 to determine whether a transaction involving cryptocurrencies is classified as a securities transaction. Critics of this method reasonably note that cryptocurrencies, unlike shares, do not provide the owner with the right to own a share in any company and do not give the right to distribute income from this ownership. The United States is expected to address the issue of cryptocurrency regulation in 2025. The presidential election campaigns have clearly shown how relevant this issue is for millions of citizens. Cryptocurrency regulation in China China has completely banned cryptocurrency transactions, including mining and trading. The ban has not only caused a massive migration of miners to other regions of the world, but has also led to the development of over-the-counter cryptocurrency trading. This has given rise to semi-legal services for exchanging yuan for tokens, bypassing public exchanges. Such transactions resemble peer-to-peer trading, when transactions are carried out directly between participants without the intermediaries. Such transactions are difficult to track, they are ideal for the regime of restrictions on cryptocurrency mining and trading and, of course, are in the “shadow” economy of the country. China is gradually introducing some concessions for the circulation of tokens, however, it is too early to talk about complete freedom. The Celestial Empire has international settlements using cryptocurrencies, and is also developing a new national cryptocurrency pegged to the yuan. But it is not yet known how soon a ready-made solution will appear. Europe and MiCA The European Union has long sought to create uniform standards for regulating cryptocurrencies. But the problem was that many European countries introduced their own laws, which somewhat fragmented the market. Such a variety of approaches made it difficult for international companies and investors to work, as they had to adapt to different legal regimes. In 2025, the EU is expected to finally adopt MiCA — the directive on cryptocurrency markets. It will unify the rules for the circulation of cryptocurrencies throughout European countries and will regulate the activities of digital service providers and token issuers. The Directive also sets requirements for licensing, transparency, risk management and corporate governance for crypto companies. Trials against cryptocurrency exchanges In 2024, lawsuits against cryptocurrency platforms developed. The results of the proceedings affected not only the current exchange rates but also the entire industry as a whole, thus demonstrating the imperfection of the current legislation. Binance case The largest cryptocurrency exchange #Binance faced numerous accusations from the regulator in 2024. The exchange was accused of violating the rules of securities trading, money laundering, and insufficient protection of users from fraudulent schemes. Changpeng Zhao, CEO of Binance, stated that many of the accusations are attempts to restrain the development of the crypto market and force the industry to follow old rules that do not take into account the nature of decentralized finance. FTX The bankruptcy of FTX exchange in 2022 was a shock to the entire crypto market. This event was followed by numerous investigations and lawsuits aimed at compensating losses to affected investors. Despite the fact that the founders of the exchange were ready to compensate losses to affected investors, the lack of legislation played a bad joke here: it took a long time before the issue was resolved, since the regulator could not decide in what form the compensation should be received by the affected participants. These examples show how important objective intervention is to ensure fair play in the digital asset market. Without proper control, abuses are possible not only on the part of crypto bankers, but also by irresponsible representatives of the regulator, which threatens trust in cryptocurrencies as a whole. International regulation trends: Меtaverses The development of virtual reality and artificial intelligence poses a new task for the state – regulating the activities of metaverses. Now many countries are just beginning to develop a regulatory framework for managing digital worlds. China, for example, licenses the activities of virtual spaces. This is due to the increase in the number of crimes. Cybercriminals quickly adapt to new technologies and find ways to use them to their advantage: this includes phishing – gaining access to personal data; and stealing accounts; and many other ways of robbing users and platform owners. Here are some examples that show the vulnerability of virtual spaces to criminals. In July 2024, there was a data leak of users of the Roblox metaverse. Hackers managed to gain access to millions of accounts, including personal messages and purchase history. In early 2022, an incident occurred in the Decentraland metaverse, when an unknown user created a fake NFT project and collected millions of dollars from gullible investors, after which he disappeared. In 2022, a harassment scandal erupted in the Horizon Worlds metaverse: one of the metaverse users faced harassment. Governments and development companies must cooperate to create effective legal and technical protection systems to ensure user safety and maintain trust in new technologies. Lado Okhotnikov, the CEO of Holiverse, on the interaction of government regulators and DeFi projects Lado Оkhotnikov, the CEO and founder of Holiverse metaverse , noted that only when there are clear and understandable rules it is possible to create an atmosphere of trust and stability necessary for successful business. The industry is ready to cooperate and follow established standards, but only if this cooperation is transparent. Because this is the only way to achieve sustainable development and trust from society. However, in reality, it is unlikely that a fair approach can be achieved. Fears about transparency were confirmed just the other day: #Coinbase General Counsel Paul Grewal announced on the social network X (Twitter) that he received data related to the so-called “Operation Chokepoint 2.0”. According to him, this is a government campaign aimed at restricting financial access for law-abiding crypto companies in the United States. Meanwhile, Ripple Labs CEO Brad Garlinghouse has been waging a legal battle with regulators for years, trying to prove that the XRP cryptocurrency is not a security. The dispute has dragged on. Garlinghouse is confident that the truth will prevail, but regulators are not giving up and each new round of proceedings is backed up with new arguments and tons of documents. There are about fifty more such examples. Take at least BitClout, Consensys, Andreessen Horowitz (a16z), and Union Square Ventures, which also faced pressure from regulators. Some had to prove their legitimacy, others had to adapt to suddenly tightened rules. Disclaimer : This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses. The post Cryptocurrency Regulation: How New Laws Will Change the Market in 2025 appeared first on Times Tabloid .
