Bitcoin hit its all-time high of $108,268.45 on December 17, 2024 (File) | Photo credit: REUTERS
In the last month of 2024, the price of Bitcoin exceeded $100,000.
Cryptocurrency price increases are difficult to attribute to just one or two factors, but it’s safe to say that in this case, investor enthusiasm played a major role as it became clear that President-elect Donald Trump would return to the White House in 2025. and that he was taking a less conservative stance towards the US crypto economy.
During President Joe Biden’s term, and even during Trump’s first term, activities such as cryptocurrency mining and running crypto exchanges/platforms were viewed with suspicion by regulators, Democrats, and Republicans alike. However, in 2024, Trump has softened his stance towards crypto. Even conservative politicians view the asset class as a way to help establish U.S. dominance in the fintech sector.
Buoyed by these developments and the promise of change, Bitcoin reached its all-time high of $108,268.45 on December 17, 2024.
In 2025, let’s look at several possible developments in crypto that go beyond price rises and crashes.
WazirX’s legal journey continues
Since the July 18 cyberattack against the Indian stock exchange’s multi-signature wallet managed with the company Liminal, WazirX investors have struggled to access their locked crypto. As they exhaust their own legal options, the exchange is pushing for restructuring in Singapore. Many WazirX investors were forced to miss the Bitcoin price surge in the last two months of the year because of this.
WazirX announced in December that it was working on a restructuring plan to help users get recoveries. The exchange urged users to encourage the system, or possibly opt for a more uncertain timeline due to the Binance-WazirX legal dispute. It is clear that the restructuring of WazirX will be an emotional process for thousands of stranded Indian investors, whose ordeal will continue until the end of this year.
The complications of the WazirX case will also impact how Indian investors view local crypto companies. While many Indian crypto exchanges promise world-class trading standards and customer service, the reality is often very different. For example, WazirX rival CoinDCX has restricted one of the most basic functions a user can expect from its exchange: cryptocurrency withdrawals. The company cited user safety and compliance with the law as reasons for the policy, and said it was working on a way to allow withdrawals in a phased manner. Another crypto platform, CoinSwitch, also confirmed The Hindu that it did not allow crypto withdrawals for users.
Once bitten, twice shy, Indian crypto investors in 2025 are more likely to research and evaluate their options before wholeheartedly trusting an exchange that markets itself as an Indian player.
Trump’s foray into crypto
President-elect Donald Trump is preparing to return to the White House and has appointed several AI and crypto industry leaders and technologists to key positions. Former PayPal executive David Sacks will enter the new administration as “White House AI and crypto czar”, while US SEC Chairman Gary Gensler, known for his position tough on crypto entrepreneurs, will resign on January 20.
This sparked enthusiasm among investors, especially those in the United States and Asia, leading to huge gains for Bitcoin. Musk’s growing presence in the new US administration also bodes well for many US-based crypto investors, as he is a supporter of the Dogecoin meme currency.
Trump, meanwhile, is affiliated with cryptocurrency company World Liberty Financial Inc.
It’s unclear how involved the future president will be with the company once he takes office, and the project itself is still in its early stages. Nonetheless, for many, this indicates that existing regulations on this asset class may ease in the future or become more investor and business friendly.
Crypto Regulation on the Rise
As crypto investments and businesses become mainstream, it is inevitable that more countries around the world will implement or update their existing laws to regulate the sale of virtual assets and digital currencies.
One of the main areas of concern among Indian investors is the high tax rate on crypto gains, contrasting with little or no support from the government in cases of crypto losses due to hacks and scams. In 2025, there will likely be more discussions on how to treat Indian crypto investors and how crypto innovation can be used to a country’s advantage.
However, another point that will likely be explored in 2025 is where and how crypto litigation will take place. For example, Indian exchange WazirX handed over its post-hack restructuring exercise to Singapore’s legal system, leaving its Indian customers upset.
Countries like the United States have a better framework to handle crypto-related legal proceedings and extradite those who play a key role in the trial, but such a system is still lacking in India. Crypto investors are often governed by the decisions of crypto exchanges, rather than their government and financial regulators.
FTX payment procedure
Legal proceedings related to the collapse of crypto exchange FTX are largely over, but the question now is how to effectively distribute recoveries to affected users. This should be clearer in 2025.
The reason this step in the procedure is important is that it will establish a plan for how collapsed crypto businesses can be managed in order to recover funds and compensate affected investors.
Published – January 8, 2025 at 2:08 p.m. IST
