The global cryptocurrency industry is gearing up for another pivotal year in 2025, as regulators in Europe, Asia and elsewhere adopt or expand rules intended to strengthen oversight and protect investors.
Developments in 2024 – from the closure of anonymous Bitcoin ATMs in Spain to new guidelines in the Philippines – offer a glimpse of the stricter regulatory measures that are expected to shape the market in the coming year.
Europe: anonymous vending machines with uniform rules
End of anonymous Bitcoin ATMs in Spain
Spain’s once-thriving network of anonymous Bitcoin ATMs is shutting down under newly enforced European Union rules. For transactions above €990, operators must now verify the identity of users.
The abrupt change is part of broader EU efforts to strengthen anti-money laundering efforts, particularly after years of largely unregulated crypto activity.
“These unregulated transactions are being phased out,” noted one industry observer, citing the EU’s goal of combating money laundering and terrorist financing.
A Bitcoin ATM, source: BNC
Application of MiCA in December 2024
The Markets in Crypto Assets (MiCA) Regulation – introduced in May 2023 and gradually rolled out this year – imposes strict know-your-customer (KYC) requirements and increased control over cryptocurrency transactions. The European Securities and Markets Authority (ESMA) has confirmed that the latest wave of MiCA rules will come into force on December 30, 2024, covering market abuse and insider trading.
Despite the gradual implementation of MiCA, industry experts warn that businesses and regulators are still unprepared.
“The cryptocurrency industry is not ready for MiCA” said Delphine Forma, Head of UK and EU Policy at Solidus Labs. “Regulators are not ready… Some countries have not even implemented implementing laws. »
Looking ahead to 2025, ESMA and other European authorities plan new guidance on the classification of cryptoassets, including asset-referenced tokens (ART) and electronic money tokens (EMT).
The objective, according to a press release published in December 2024 by the three EU supervisory agencies, is to “facilitate consistency in the regulatory classification of crypto-assets” and reduce the risk of regulatory arbitrage.
Philippines: new standards for service providers
Across the globe, the Philippine Securities and Exchange Commission (SEC) is charting its own course with a draft proposal dubbed “SEC Rules on Crypto-Asset Service Providers.” Unveiled in late 2024, the rules outline registration requirements, minimum capital thresholds and disclosure obligations for companies offering trading, custody or other crypto services.
The SEC’s decision aims to guard against fraud and market manipulation. According to the draft rules, service providers must also strengthen their cybersecurity frameworks, aligning with the country’s national cybersecurity plan. Observers say the rapid growth of the user base in the Philippines is one of the main reasons for stricter monitoring.
US outlook: eyes on possible executive orders
In the United States, industry officials expect a shift in crypto policy with the inauguration of President-elect Donald Trump next month. Trump, who campaigned on a promise to defend cryptocurrencies, is reportedly considering several executive actions that could reshape the industry. Proposals include creating a government-run Bitcoin reserve, creating a dedicated crypto council and ensuring businesses have better access to banking services.
However, the practical effect of these orders remains unclear. Independent agencies like the Federal Reserve and other banking regulators are not legally required to change their supervisory frameworks based on presidential direction alone.
“(They) are not going to change policy on the ground from day one,” said Jonah Krane, a partner at financial firm Klaros Group. “But they will tell you what direction this administration wants to go.”
Does reinforced surveillance meet the industry’s ambitions in 2025?
As the 2024 regulations begin to take effect, many predict that 2025 could be the year crypto finds itself at a crossroads between rapid innovation and increased government oversight. On the one hand, advanced technologies like artificial intelligence promise greater efficiency and new financial products. On the other hand, concerns about market manipulation, illicit activities and insufficient consumer safeguards continue to drive stricter rules around the world.
The industry’s next challenge will be to adapt to these changing regulations while maintaining the open, decentralized ethos that initially fueled crypto’s popularity.
