Source: Beosin
With the rapid development of blockchain and cryptocurrency, the direction of global Web3 regulation is undergoing profound changes. Entering 2025, governments and regulators are gradually adjusting their policies on this emerging field to adapt to the growth of the market and the needs of technological innovation. This article will explore the main trends in Web3 regulation in 2025 and analyze its far-reaching impact on the cryptocurrency market, technological innovation and investment opportunities, especially how virtual asset service providers (VASPs) can ensure compliance and meet the challenges of onchain anti-money laundering (onchain AML) in an increasingly stringent compliance environment.
1. The US SEC relaxes its cryptocurrency enforcement
The US Securities and Exchange Commission (SEC) has been relatively strict in regulating cryptocurrencies in the past few years, especially in the regulation of crypto exchanges, ICOs and token issuance. However, as the market matures and the government gradually recognizes the potential of blockchain technology, the SEC has recently shown a certain trend of policy relaxation. The US Congress has begun to promote the formulation of a clearer and more unified Web3 regulatory framework. This change will bring a more stable regulatory environment to the cryptocurrency industry, thereby promoting technological innovation and market development.
SEC's deregulation may bring more investment opportunities to the cryptocurrency market. Especially in a technology-friendly policy environment, the blockchain and crypto asset markets will have opportunities to flourish. Cryptocurrency not only provides new investment channels for traditional financial markets, but may also become an important tool for solving the problems of the global financial system. Especially in areas such as cross-border payments, smart contracts and decentralized finance (DeFi), the innovative advantages of blockchain technology are becoming increasingly apparent.
2. Diversification of global cryptocurrency regulatory policies
Although the regulatory policies in the United States tend to be relaxed, there are large differences in the regulatory attitudes towards cryptocurrencies around the world. Different countries have adopted different regulatory strategies based on their own economic conditions, technological development and political environment.
● Hong Kong: The Securities and Futures Commission (SFC) of Hong Kong has promoted the transparency and compliance of the cryptocurrency market by approving the Virtual Asset Service Provider (VASP) license. As of 2024, the Hong Kong Securities and Futures Commission has legally licensed seven cryptocurrency exchanges, and the issuance of this license has increased the transparency of the entire industry and further enhanced the trust of the market.
On December 6, 2024, the Hong Kong government announced the highly anticipated 《Stablecoin Bill》. This legislation provides a detailed regulatory framework for issuers of fiat-referenced stablecoins (FRS) and aims to make Hong Kong a leader in the global virtual asset field.
In addition, all OTC merchants need to apply for a license from the Hong Kong Monetary Authority (HKMA) to legally operate their business. The conditions for applying for a license will include the following aspects: Financial strength: OTC merchants need to prove that they have sufficient capital and financial management capabilities. Risk management: OTC merchants need to develop a comprehensive risk management system, including measures in anti-money laundering, anti-terrorist financing, and cybersecurity.
● South Korea: South Korea has implemented a strict cryptocurrency trading license system and imposed strong anti-money laundering obligations on virtual asset operators. Virtual asset service providers not only have to bear anti-money laundering responsibilities, but also need to conduct user classification and transaction monitoring. These measures show that South Korea has provided legal protection for the long-term development of the cryptocurrency industry while strengthening market supervision.
● Singapore: As an international financial center for blockchain and cryptocurrency, Singapore has a relatively loose regulatory framework. The Monetary Authority of Singapore (MAS) has licensed cryptocurrency service providers to ensure that these companies follow basic requirements such as anti-money laundering, customer identification (KYC) and transaction monitoring. In addition, the Digital Payment Token (DPT) service license issued by MAS also provides clear compliance guidance for related companies.
● Turkey: Turkey's supervision of cryptocurrency service providers has also become increasingly strict, requiring trading service providers to submit user identity information, especially for transactions exceeding a certain amount. These measures help to increase the transparency of transactions and prevent illegal capital flows.
The different regulatory policies of these countries show a trend: governments around the world are adjusting the regulatory framework of cryptocurrencies according to their own national conditions. Overall, more and more countries are beginning to recognize the potential of cryptocurrencies and trying to promote their healthy development through reasonable regulatory policies.
3. Government policies that support innovation promote the expansion of blockchain
Some countries, especially those technology-friendly governments, are actively promoting innovation in blockchain technology. For example, Natalie Lederman, partner at Sullivan & Worcester, pointed out that when Donald Trump was president, he publicly supported the cryptocurrency market and opposed excessive regulation. This policy support has created a favorable environment for the expansion of blockchain technology and venture capital investment.
The government plays a vital role in supporting innovation. Taking the United States as an example, as policies gradually relax, more and more blockchain startups will be able to obtain financing and further promote technological innovation. Blockchain technology itself will also become a key tool for solving security and privacy issues such as those brought about by generative artificial intelligence (AI). The decentralization and immutability of blockchain can provide guarantees for the transparency and traceability of AI data, thereby enhancing the trust of all sectors of society in AI technology.
4. VASP regulation: Globally strengthening transparency and compliance
With the strengthening of VASP (virtual asset service provider) regulation, more and more countries have begun to establish clear licensing systems. By establishing VASP licenses, regulators can ensure that cryptocurrency platforms meet compliance requirements and enhance market transparency. This not only helps to combat illegal activities such as money laundering and terrorist financing, but also helps to enhance investor confidence.
For example, Hong Kong, South Korea, and Singapore have begun to require cryptocurrency trading platforms to provide relevant legal documents and operation reports to ensure that the operations of these platforms comply with local laws and regulations. These regulatory measures will further enhance the legitimacy and transparency of the global crypto market and lay the foundation for the long-term and healthy development of the blockchain industry.
5. Security compliance companies help VASP compliance
With the rapid development of Web3 and the cryptocurrency market, how to comply with increasingly stringent global regulatory requirements has become one of the key challenges for virtual asset service providers (VASPs). Especially in the areas of anti-money laundering (AML), know-your-customer (KYC), and transaction monitoring, virtual asset service providers must implement strict compliance measures to avoid legal and regulatory risks.
6. Future challenges and opportunities of Web3 regulation
Although the global Web3 regulatory policy is gradually becoming clearer, it still faces many challenges. First, the lack of uniformity in the formulation of regulatory frameworks among countries may lead to compliance issues in cross-border transactions. Second, the decentralized nature of blockchain technology itself makes it difficult for regulators to intervene directly, which also increases the complexity of regulation. Finally, the high degree of innovation and rapid change in the cryptocurrency market also requires continuous adjustment and improvement of regulatory policies.
However, Web3 regulation also brings huge opportunities. First, the promotion of compliance will attract more institutional investors to enter the cryptocurrency market. Second, the global regulatory framework will promote cross-border cooperation between different regions and countries and promote the application of blockchain technology worldwide. Finally, the government's regulatory policy on Web3 will provide new impetus for innovation in blockchain technology and the cryptocurrency market.
7. Conclusion: Regulation and innovation go hand in hand, the future of Web3 is promising
In 2025, the global Web3 regulatory trend is moving towards a clearer and more comprehensive direction. The relaxation of regulation in the United States, the compliance requirements of European and Asian countries, and the global pursuit of transparency in the cryptocurrency market all indicate that the Web3 industry is moving towards a more mature stage. In this process, technological innovation and compliance supervision will advance in parallel and jointly shape the future of cryptocurrency and blockchain.
With the gradual improvement of global regulatory policies, Web3 technology will be applied in more fields, and blockchain will become an important tool for solving global financial, social, privacy and other issues. The healthy development of the cryptocurrency market is inseparable from the reasonable supervision of governments of various countries. The future of Web3 will be a new era that combines technological innovation with policy compliance.
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