07 March 2025

This has been one of the most volatile times in crypto history. Bitcoin continues to trade between $80,000 and $90,000 while altcoins, especially the big ones, appear clueless.

As we wait for bullish market action, something else is unfolding at a bullish rate – the changing regulatory stance across nations helmed by US in particular.

Today, in our Hot Take, we look at key trends that point to why 2025 is crypto’s year.

Let’s dive into it.

Top-3 stories of the week:

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The newsletter is put together by Giottus Crypto Platform. You can read all the previous issues of Cryptogram here.

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WEEKLY MACROS

• Total crypto market cap - $2.89 trillion - UP 9.9%    

• Bitcoin price - $88,061 - UP 11.3%

• The dollar index (DXY) - 103.98 - DOWN 3.2%

• Bitcoin Dominance - 61.3% -  UP 1%

• Crypto Fear and Greed Index - 34 - Market is in Fearful State

THE HOT TAKE

The Future Is Here: Crypto Regulation Shifts in 2025

The first-ever White House Crypto Summit is set to take place today, hosted by US President Donald Trump. This milestone event will bring together top CEOs, investors, and members of the Presidential Working Group on Digital Assets, including David Sacks, the White House’s crypto czar. The summit signals a significant shift in the US government's stance, showing increasing support for the crypto industry.

As the industry eagerly anticipates the discussions and outcomes of today’s summit, 2025 has already marked a pivotal shift in global crypto regulations. Nations worldwide are rolling out new policies and frameworks to provide greater clarity around digital assets, shaping the future of the industry like never before.

United States has become pro-crypto

• US Bitcoin Strategic Reserve – Trump has signed an executive order for the creation of a Bitcoin reserve for government holdings. While the reserve will be seeded with previously seized crypto, Trump refrained from committing to additional purchases, as yet. 

• SEC takes a new approach – The US Securities and Exchange Commission (SEC) is rolling back old, restrictive policies. One of its first major actions was repealing SAB 121, a rule that had prevented banks from holding crypto assets for their clients. The SEC’s new leadership, including former commissioner Paul Atkins, is seen as crypto-friendly, focusing on innovation rather than heavy enforcement.

• Crypto lawsuits dropped – In February 2025, the SEC dropped several lawsuits against major crypto companies, including Uniswap, Coinbase, Robinhood, Gemini, OpenSea, and Consensys. These firms were previously accused of operating without proper registrations. The decision to end these cases signals a major shift in how the SEC handles crypto regulation, moving toward a more lenient and business-friendly approach.

• The stablecoin bill – In early February, Senator Bill Hagerty introduced the GENIUS Act (Guiding and Establishing National Innovation in US Stablecoins). This bill aims to define stablecoins clearly, set licensing and reserve requirements for issuers, and split oversight between the Federal Reserve (for large issuers) and state regulators (for issuers managing less than $10 billion).

Not just the US - APAC has also pushed forward

• Hong Kong - Hong Kong’s Legislative Council is reviewing a new stablecoin bill as part of its push to become a crypto hub. The proposed law would require stablecoin issuers to get a license and hold high-quality reserves. Regulators are also planning new rules for crypto trading platforms, over-the-counter trading, and custodians.

• Malaysia - Malaysia is exploring new crypto regulations after talks between its Prime Minister, Abu Dhabi officials, and Binance founder CZ. The goal is to modernize the financial system and keep up with global crypto developments. Policymakers plan to study regulations in detail, involving the Treasury, Securities Commission, and central bank. Meanwhile, Malaysia’s Securities Commission has recently cracked down on unregistered crypto exchanges. 

• Thailand - Thailand is exploring spot crypto ETFs and a Bitcoin transaction sandbox in Phuket for select services. Additionally, last month, the securities regulator announced plans to develop a blockchain platform for tokenized securities, signalling the country's push toward crypto innovation.

• South Korea - South Korea’s financial regulator plans to lift restrictions on institutional crypto trading, allowing investors to open exchange accounts gradually. This move aligns with President Yoon’s push to boost the local crypto industry, including efforts to launch spot crypto ETFs. The regulator is also working on new rules for stablecoins, exchanges, and token listings. Additionally, it plans to amend the Financial Information Act to screen major shareholders of crypto service providers.

• Cambodia - Cambodia’s central bank has introduced new digital asset rules allowing banks to engage with tokenized assets and stablecoins, but not hold cryptocurrencies directly. However, banks may still provide crypto services like custody and trading for clients with approval. The rules also limit stablecoin use for payments, potentially to protect Cambodia’s Bakong payment system. Meanwhile, the country is aligning its framework with Basel crypto regulations.

Back home, India rethinks crypto policy while tightening tax rules

India is rethinking its crypto policy in response to evolving global trends and increased international support for digital assets. Economic Affairs Secretary, Ajay Seth, noted that with several countries adopting friendlier crypto regulations—especially in the US—India is considering a more adaptive approach to unlock its strong grassroots crypto adoption. Industry leaders, including prominent voices from the crypto community, believe that such changes could position India at the forefront of the Web3 revolution and boost the digital asset sector's contribution to the nation's GDP.

At the same time, India’s Budget 2025 has introduced tougher tax rules that add a new layer of complexity to the regulatory landscape. Cryptocurrencies are now classified as virtual digital assets, with a 70% penalty imposed on undeclared gains that applies retroactively to the past four years. Additionally, businesses involved in crypto transactions will be required to report detailed information on their activities by April 2025. While these measures aim to enhance tax compliance and financial oversight, industry experts warn that they could drive traders toward offshore platforms, potentially hampering the growth of the rapidly evolving crypto market.

Crypto taxes around the world

As of March 2025, crypto taxes vary worldwide—some countries have no tax, while others impose high rates or bans. Germany rewards long-term holding, Japan taxes up to 55%, and Egypt prohibits crypto. With changing regulations, global crypto taxation is still evolving.

Takeaway

The year 2025 is proving to be a turning point for crypto regulations worldwide. The US is taking a more supportive stance, with the SEC rolling back restrictive policies, dropping lawsuits, and introducing clear stablecoin rules. Meanwhile, countries in Asia-Pacific, such as Hong Kong, Thailand, and South Korea, are pushing for stronger crypto frameworks to encourage growth while maintaining oversight. At the same time, India is reconsidering its approach, balancing innovation with strict tax policies. These developments indicate that governments are shifting from outright bans and uncertainty to more structured regulations, aiming to integrate crypto into the financial system.

However, challenges remain, especially in taxation, as different countries take vastly different approaches. Some nations encourage crypto use with tax incentives, while others impose high rates or penalties on undeclared gains. As regulations continue to evolve, the future of crypto will depend on how governments balance financial security, innovation, and economic growth. With major economies shaping their policies, the crypto industry is on the verge of broader acceptance, but clear and fair rules will be key to its long-term success.

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If you have any questions or feedback for us, write to us at [email protected]. You can check out the previous issues here.

Disclaimer: Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Please do your own research before investing and seek independent legal/financial advice if you are unsure about the investments.