Cryptocurrency regulatory changes influencing the market

When Bitcoin, the original cryptocurrency, launched, it was a niche concept understood by few, and even fewer people bought into its long-term prospects. Fifteen years later, the world does not seem to have enough cryptocurrencies and digital assets. Innovation in space moves quickly, but regulations have lagged. Many countries and regional blocs do not have clear-cut long-term regulatory strategies, but this might be about to change.

America first

2025 brought with it a change in government in the United States. Beyond a new president, the two houses of parliament are “controlled” by the Republican party. Trump is bullish on crypto and recently debuted a project that enriched him and his business prospects. When you have someone like this in the Oval Office, it’s not beyond the imagination to expect favorable changes to how the US regulates crypto and digital assets. Bitcoin recently surpassed its previous all-time high while reaching a level it has never been able to achieve on any crypto trading platform.

America significantly influences global digital assets because its financial and regulatory decisions significantly impact how people invest in projects. There haven’t been many changes to crypto regulations during Trump’s first month in office. Still, it’s not impossible for the new president to “convince” his party members and Democratic party sympathizers to push regulatory changes through Congress. The US currently controls global trade by using its currency as the international currency for trade. The country would also love to own the crypto product or currency that has become the go-to for most people worldwide.

The status quo

A handful of countries have driven a large portion of global crypto progress. Some countries are large, powerful, and prosperous, like the USA, France, and Japan. However, unexpected countries like Nigeria, Thailand, and Peru are making waves and driving growth in space.

A report from the Atlantic Council analyzed how 60 countries globally regulate cryptocurrencies within their jurisdictions. The findings were eye-opening. Some countries, like Ecuador, Algeria, and Tunisia, completely banned and regulated all or most forms of cryptocurrencies as of the time the report was published. In contrast, countries like Ireland, the Philippines, and Canada allow most crypto activities within their jurisdictions.

One thing to remember is that nothing ever remains the same in this space, and realities change faster than most people can keep track of. Today’s reality might not align with tomorrow’s ambitions, so making smart long-term decisions is essential. Of the 60 Countries studied, cryptocurrencies were entirely banned in 10, restricted or partially banned in 17 countries, while 33 countries could freely interact with this asset class due to its legality. 2024 was an essential year for crypto regulations globally; 2025 might prove to be more critical.

What are some general themes in crypto in 2025 and beyond?

Most countries are going online

Crypto and other digital assets have become a fact of life that countries can no longer overlook. The countries that hold out are putting their economies and citizens at a disadvantage. These nations are interested in doing things their way, thereby retaining a bit of control, but that might not be enough in the long run.

Countries want to control crypto

Over 90% of countries in the Atlantic Council report had plans to launch Central Bank Digital Currencies (CBDCs). Reiterating that control is a recurring issue for many of these states, they fail to realize that the sort of power they desire goes against the foundational principles of cryptocurrencies. Time will tell whether this concept will prove to be a success or not.

More rxplicit Rules for Financial Institutions

One of the significant hurdles to crypto adoption was uncertainty and regulatory headaches for banks and other financial institutions. In some cases, these financial institutions weren’t given any directives from governments for months or years until the government-appointed regulators developed rules that may have retroactively punished these banks. More countries are officially and legally defining what it means to facilitate cryptocurrency transactions.

Why should you care?

Investing in digital currencies is an endeavor everyone should approach with a long-term mindset. You want to invest in products, processes, and services that make sense now and in the future. Suppose you invest in a country with shifting crypto regulations after every election. You might lose proceeds and valuations if the government charges you for “back-dated” taxes and fees — so investing in the correct jurisdictions is in your best interest.

Historical data and current trends suggest that 2025 is becoming one of the most significant years in history because of the proposed regulatory changes and introductions to crypto and digital assets. Will you be there to capitalize on the proposed changes while taking advantage of this unique scenario?