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Outlook for 2025: Web3 supervision and innovation go hand in hand, and the future is promising
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2025-01-07 11:02 5,520

Source: Beosin

With the rapid development of blockchain and cryptocurrency, the direction of global Web3 regulation is undergoing profound changes. Entering 2025, countries and regulatory agencies are gradually adjusting their regulations on this emerging field to adapt to market growth and technological innovation needs. This article will explore the main trends in Web3 regulation in 2025 and analyze its profound impact on the cryptocurrency market, technological innovation and investment opportunities, especially how virtual asset service providers (VASPs) will fare in an increasingly stringent compliance environment. Ensure compliance and meet the challenges of onchain anti-money laundering (onchain AML).

1. The U.S. SEC relaxes cryptocurrency enforcement

The U.S. Securities and Exchange Commission (SEC) has had a stricter regulatory attitude towards cryptocurrency in the past few years, especially when it comes to crypto exchanges, ICOs and token issuances. on supervision. However, as the market matures and the potential of blockchain technology is gradually recognized, the SEC has recently shown a certain relaxation trend. The U.S. Congress has begun to promote the development of a clearer and 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 environment, the market for blockchain and encrypted assets will usher in opportunities for booming development. Cryptocurrencies not only provide new investment channels for traditional financial markets, but may also become an important tool to solve problems in the global financial system. Especially in the fields of cross-border payments, smart contracts, and decentralized finance (DeFi), the innovative advantages of blockchain technology are increasingly apparent.

2. Diversification of global cryptocurrency regulation

Although regulation in the United States tends to be relaxed, there are large differences in regulatory attitudes towards cryptocurrency around the world. Different regulatory strategies have been adopted based on their own economic conditions, technological development and environment.

●Hong Kong: The Hong Kong Securities and Futures Commission (SFC) has promoted transparency and compliance in the cryptocurrency market by approving a 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 trust in the market.

On December 6, 2024, Hong Kong announced the much-anticipated Stable Currency Bill. This legislation provides a detailed regulatory framework for issuers of fiat-referenced stablecoins (FRS) and aims to establish Hong Kong as a global leader in the field of virtual assets.

In addition, all OTC merchants need to apply for a license from the Hong Kong Monetary Authority (HKMA) in order to operate their business legally. The conditions for license application will include the following aspects: Financial strength: OTC merchants need to prove that they haveHave sufficient capital and financial management capabilities. Risk management: OTC merchants need to develop a complete risk management system, including anti-money laundering, anti-terrorist financing, network security and other measures.

● 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 perform user classification and transaction monitoring. These measures demonstrate that South Korea is strengthening market supervision while also providing legal protection for the long-term development of the cryptocurrency industry.

●Singapore: As an international financial center for blockchain and cryptocurrency, Singapore’s regulatory framework is relatively loose. The Monetary Authority of Singapore (MAS) regulates the licensing of cryptocurrency service providers to ensure that these businesses comply with 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 guidelines for relevant companies.

●Turkey: Turkey has also become increasingly strict in regulating cryptocurrency service providers, requiring transaction service providers to submit user identity information, especially for strict review of transactions exceeding a certain amount. These measures help increase transaction transparency and prevent illicit financial flows.

The different regulations of these countries show a trend: countries around the world are adjusting the regulatory framework of cryptocurrency according to their own national conditions. Overall, more and more people are beginning to recognize the potential of cryptocurrency and are trying to promote its healthy development through reasonable regulation.

3. Support innovation and promote the expansion of blockchain

Some companies, especially those that are technology-friendly, are actively promoting the innovation of blockchain technology. For example, Natalie Lederman, a partner at law firm Sullivan & Wooster, noted that while he was president, Donald Trump publicly expressed support for the cryptocurrency market and opposed excessive regulation. This support creates a favorable environment for the expansion of blockchain technology and venture capital investment.

Plays a vital role in supporting innovation. Taking the United States as an example, with the gradual relaxation, 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 in solving security and privacy issues such as those posed by generative artificial intelligence (AI). The decentralization and non-tamperability 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 supervision: strengthening transparency and compliance globally

With the strengthening of VASP (virtual asset service provider) supervision, more and more companies are beginning to establish clear licensing systems. By establishing a VASP license, regulators can ensure that cryptocurrency platforms meet compliance requirements and enhance market transparency. This not only helps combat illegal activities such as money laundering and terrorist financing, but also helps increase investor confidence.

For example, Hong Kong, South Korea, Singapore and other places have begun to require cryptocurrency trading platforms to provide relevant legal documents and operational reports to ensure that the operations of these platforms comply with local legal regulations. These regulatory measures will further enhance the legitimacy and transparency of the global encryption market and lay the foundation for the long-term healthy development of the blockchain industry.

5. Security compliance companies assist VASP compliance

With the rapid development of Web3 and cryptocurrency markets, how to comply with increasingly stringent global regulatory requirements has become one of the key challenges for virtual asset service providers (VASPs) . Especially in areas such as anti-money laundering (AML), customer identification (KYC), and transaction monitoring, virtual asset service providers must implement strict compliance measures to avoid facing legal and regulatory risks.

6. Future challenges and opportunities for Web3 regulation

Although global Web3 regulation is gradually becoming clearer, it still faces many challenges. First, the lack of uniformity in the formulation of regulatory frameworks across countries may lead to compliance issues in cross-border transactions. Secondly, the decentralized nature of blockchain technology makes it difficult for regulatory agencies to intervene directly, which also increases the complexity of supervision. Finally, the highly innovative and rapidly changing nature of the cryptocurrency market also requires constant adjustment and improvement of supervision.

However, the regulation of Web3 also brings huge opportunities. First, the advancement of compliance will attract more institutional investors to the cryptocurrency market. Secondly, a global regulatory framework will promote cross-border cooperation between different regions and promote the application of blockchain technology on a global scale. Finally, the regulation of Web3 will provide new impetus for innovation in blockchain technology and the cryptocurrency market.

7. Conclusion: Regulation and innovation go hand in hand, and the future of Web3 is promising

In 2025, the global Web3 regulatory trend is developing in a clearer and more comprehensive direction. Regulatory deregulation in the United States, compliance requirements in Europe and Asia, 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, jointly shaping the future of cryptocurrency and blockchain.

With the gradual improvement of global supervision, Web3 technology will be applied in more fields, and blockchain will become an important tool to solve global financial, social, privacy and other issues. The healthy development of the cryptocurrency market cannot be separated from the reasonable supervision of various countries. The future Web3 will be a new era that combines technological innovation and compliance.

Keywords: Bitcoin
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