Original Beosin Compliance Team Beosin January 7, 2025 08:53 Japan
With the rapid development of blockchain and cryptocurrencies, the global direction of Web3 regulation is undergoing profound changes. Entering 2025, governments and regulatory agencies around the world are gradually adjusting their policies toward this emerging field to meet the growing market and technological innovation demands. This article will explore the main trends of Web3 regulation in 2025 and analyze its far-reaching impact on the cryptocurrency market, technological innovation, and investment opportunities, especially how VASPs can ensure compliance and face challenges in on-chain anti-money laundering (AML) in an increasingly stringent compliance environment.
1. The SEC in the United States relaxes cryptocurrency enforcement.
The U.S. Securities and Exchange Commission (SEC) has had a relatively strict regulatory attitude toward cryptocurrencies in recent years, especially regarding the regulation of cryptocurrency exchanges, ICOs, and token issuances. However, with the maturation of the market and the government's gradual recognition of the potential of blockchain technology, the SEC has recently shown a tendency toward policy relaxation. The U.S. Congress has begun to promote the establishment of a clearer and unified Web3 regulatory framework, which will bring a more stable regulatory environment for the cryptocurrency industry, thus promoting technological innovation and market development.
The SEC's relaxed regulation may bring more investment opportunities to the cryptocurrency market. Especially in a technology-friendly policy environment, the market for blockchain and crypto assets will welcome flourishing development opportunities. Cryptocurrencies not only provide new investment channels for traditional financial markets but may also become important tools for solving challenges in the global financial system. Particularly in areas such as cross-border payments, smart contracts, and decentralized finance (DeFi), the innovative advantages of blockchain technology are increasingly evident.
2. Diversification of global cryptocurrency regulatory policies
Although the regulatory policies in the United States are becoming more relaxed, there are significant differences in the regulatory attitudes toward cryptocurrencies globally. Different countries adopt different regulatory strategies based on their own economic conditions, technological development, and political environments.
● Hong Kong: The Securities and Futures Commission (SFC) of Hong Kong has promoted transparency and compliance in the cryptocurrency market by approving Virtual Asset Service Provider (VASP) licenses. As of 2024, the Hong Kong Securities Commission has legally licensed seven cryptocurrency exchanges, and the issuance of these licenses has increased the transparency of the entire industry and further enhanced market trust.
On December 6, 2024, the Hong Kong government announced the highly anticipated (stablecoin regulatory draft). This legislation provides a detailed regulatory framework for the issuance of fiat-referenced stablecoins (FRS), aiming to make Hong Kong a leader in the global virtual asset field.
In addition, all OTC merchants need to apply for licenses from the Hong Kong Monetary Authority (HKMA) to operate legally. The conditions for license application will include the following aspects: Financial strength: OTC merchants need to demonstrate sufficient capital and financial management capabilities. Risk management: OTC merchants need to establish comprehensive risk management systems, including measures for anti-money laundering, counter-terrorism financing, and cybersecurity.
● South Korea: South Korea has implemented a strict licensing system for cryptocurrency trading and imposed strong anti-money laundering obligations on virtual asset operators. Virtual asset service providers not only bear anti-money laundering responsibilities but also need to conduct user classification and transaction monitoring. These measures indicate that South Korea is strengthening market regulation while also providing legal guarantees for the long-term development of the cryptocurrency industry.
● Singapore: As an international financial center for blockchain and cryptocurrencies, Singapore's regulatory framework is relatively relaxed. The Monetary Authority of Singapore (MAS) manages licensing for cryptocurrency service providers to ensure these businesses comply with basic requirements such as anti-money laundering, customer identity verification (KYC), and transaction monitoring. In addition, the digital payment token (DPT) service license issued by MAS also provides clear compliance guidance for related enterprises.
● Turkey: Turkey's regulation of cryptocurrency service providers is also becoming increasingly stringent, requiring trading service providers to submit user identity information, especially conducting strict reviews for transactions exceeding specific amounts. These measures help improve transaction transparency and prevent illegal fund flows.
The different regulatory policies of these countries show a trend: governments around the world are adjusting their regulatory frameworks for cryptocurrencies based on their own national conditions. Overall, an increasing number of countries are beginning to recognize the potential of cryptocurrencies and are attempting to promote their healthy development through reasonable regulatory policies.
3. Government policies supporting innovation promote the expansion of blockchain
Some countries, especially those with technology-friendly governments, are actively promoting innovation in blockchain technology. For example, Natalie Lederman, a partner at Sullivan & Worcester LLP, pointed out that Donald Trump publicly expressed support for the cryptocurrency market during his presidency and opposed excessive regulation. This policy support creates a favorable environment for the expansion of blockchain technology and venture capital investment.
Governments play a crucial role in supporting innovation. Taking the United States as an example, as policies gradually relax, more and more blockchain startups will be able to secure funding and further drive technological innovation. Blockchain technology itself will also become a key tool for addressing security and privacy issues brought about by generative artificial intelligence (AI). The decentralization and immutability of blockchain can ensure the transparency and traceability of AI data, thus enhancing public trust in AI technology.
4. VASP regulation: Strengthening transparency and compliance globally
With the strengthening of VASP (Virtual Asset Service Provider) regulation, more and more countries are beginning to establish clear licensing systems. By establishing VASP licenses, regulatory agencies 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 boost investor confidence.
For example, regions such as Hong Kong, South Korea, and Singapore have begun to require cryptocurrency trading platforms to provide relevant legal documents and operational reports to ensure that these platforms operate in compliance with local laws. These regulatory measures will further enhance the legitimacy and transparency of the global cryptocurrency market, laying the foundation for the long-term healthy development of the blockchain industry.
5. Security compliance companies like Beosin assist VASPs with compliance
With the rapid development of Web3 and the cryptocurrency market, how to comply with increasingly strict global regulatory requirements has become one of the key challenges for Virtual Asset Service Providers (VASP). Especially in the areas of anti-money laundering (AML), customer identity verification (KYC), and transaction monitoring, VASPs must implement stringent compliance measures to avoid facing legal and regulatory risks.
In this context, blockchain security and compliance companies like Beosin play a crucial role in helping VASPs meet compliance challenges. As a leading provider of blockchain security and compliance solutions, Beosin's services cover various functions including anti-money laundering monitoring, identity verification, and transaction monitoring.
Through these services, Beosin not only helps virtual asset service providers comply with global compliance requirements but also enhances platform transparency and boosts user trust. At the same time, Beosin's compliance solutions can provide platforms with the ability to respond quickly to regulatory changes, enabling them to remain competitive in a constantly changing regulatory environment.
6. Future challenges and opportunities in Web3 regulation
Although global Web3 regulatory policies are gradually becoming clearer, numerous challenges remain. First, countries lack uniformity in the formulation of regulatory frameworks, which may lead to compliance issues in cross-border transactions. Second, the decentralized nature of blockchain technology itself makes it difficult for regulatory agencies to intervene directly, increasing the complexity of regulation. Finally, the high level of innovation and rapid changes in the cryptocurrency market also necessitate continuous adjustments and improvements to regulatory policies.
However, the regulation of Web3 also brings significant opportunities. First, the advancement of compliance will attract more institutional investors into the cryptocurrency market. Second, the global regulatory framework will promote cross-border cooperation between different regions and countries, driving the application of blockchain technology worldwide. Finally, government regulations on Web3 will provide new momentum 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 towards a clearer and more comprehensive direction. The relaxation of regulations 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 regulation will advance in parallel, jointly shaping the future of cryptocurrencies 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 reasonable regulation by governments around the world. The future of Web3 will be a new era combining technological innovation and policy compliance.