As 2024 transitions into 2025, the cryptocurrencies market faces a series of pivotal developments. These events, ranging from regulatory changes in the European Union to significant moves by major exchanges, could shape the trajectory of the industry. Here are six critical events to watch in the coming days.
EU Regulations Set to Transform Crypto Landscape
The European Union’s new regulations, effective December 30, aim to enforce stricter anti-money laundering (AML) measures and expand the travel rule guidelines to include cryptocurrency service providers. The European Banking Authority (EBA) has confirmed that crypto exchanges operating within the EU will now be required to report details of fund and asset transfers under Regulation 2023/1113.
Additionally, the much-anticipated Markets in Crypto-Assets (MiCA) regulations will come into effect across the EU’s 27 member states. However, some nations, like Portugal, have yet to finalize implementing legislation, delaying the appointment of regulatory authorities. This gap underscores ongoing challenges in harmonizing crypto regulations across the bloc.
Tether (USDT) Faces Delisting in the EU
As part of MiCA compliance, several European exchanges have delisted Tether (USDT) due to its lack of licensing under the new framework. Competitor Circle, which secured a license earlier this year, stands to benefit from this move. Exchanges must remove unlicensed stablecoins by December 30, pushing investors to explore alternatives and potentially increasing euro-based trading.
Kraken Finalizes Monero (XMR) Delisting
Kraken’s decision to discontinue support for Monero (XMR) will reach its final stage. By December 31, users must withdraw their holdings, after which any remaining XMR assets will be automatically converted to Bitcoin (BTC). This move reflects broader industry trends of delisting privacy-focused coins due to regulatory pressures.
Russia Implements Seasonal Mining Restrictions
Russia will enforce seasonal mining restrictions in three Siberian regions—Irkutsk, Buryatia, and Transbaikal—during peak winter energy demand. These restrictions will run from January 1 to March 15, 2025, and later from November 15, 2025, to March 15, 2026, reflecting the country’s effort to balance energy consumption with cryptocurrency mining activities.
FTX’s Chapter 11 Plan to Take Effect
On January 3, 2025, FTX will implement its court-approved Chapter 11 restructuring plan. This milestone marks the beginning of claim distributions, expected within 60 days for approved claims in the convenience category. The plan aims to address the fallout from one of the industry’s most high-profile collapses.
Macro Trends and Cryptocurrencies
Global financial markets remain subdued heading into the new year. In the U.S., attention turns to the ISM Manufacturing PMI data, while any policy updates related to former President Donald Trump could spark market volatility. The absence of a year-end rally in U.S. equities adds further uncertainty to the broader economic outlook.
The Bit Journal’s Perspective
As the crypto market navigates these critical developments, investors should brace for heightened volatility and new opportunities. For more insights into the rapidly evolving cryptocurrency space, stay connected with The Bit Journal.
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