Continued regulations in Artificial Intelligence and cybersecurity tend to reshape the landscape of advancing technologies and will result in upcoming regulations in the crypto environment as well.
Since crypto platforms operate outside the traditional finance system, increased money laundering, fraud, and scams have been reported within the platform. This drove the need for a regulatory mechanism.
The future of cryptocurrency platform
Since the 2022 crypto market crash, there have been talks regarding the US enactment of new crypto regulatory guidelines, but unfortunately or fortunately not many changes have been made over the past two years.
However, the rise of regulatory firms and increased scrutiny in the crypto platform will pave the room for significant changes in the coming years. As Donald Trump promised the replacement of the head of the Securities and Exchange Commission, we can expect it’s resonation in the crypto market as well.
If new crypto legislation gets implemented, it will bring the Commodity Futures Trading Commission (CFTC) as the regulator of the crypto platform, replacing the SEC.
The introduction of new regulatory policies in the crypto market improves the stability of the platform and provides transparency and security to the platform, thereby broadening the scope of digital assets. Robust security measures along with AML compliance help in developing the trust of the public in the platform.
Crypto trends to expect in 2025
1. Entrance of crypto to the mainstream
With the threshold in popularity of cryptocurrencies, many business firms and organizations have shown a huge interest in cryptocurrencies. By 2025, the number of people using cryptocurrency will increase to a drastic maximum. From online shops to traditional markets, many firms will use crypto as a medium of exchange. There will be a huge increase in the number of apps and tools that help people guide how to use crypto. It will tend to become a part of our daily life.
2. Improved security
Even by claiming robust security measures, crypto platforms have been reported for increased frauds and scams. However, in 2025, the crypto platform will offer more security. Better encryption technologies, improved smart contracts, and more secure wallets can be expected in the years to come.
3. Rising regulations
Amidst the existing threat of scams and fraud within the platform, the government is planning to regulate the crypto network. Implementing strict rules and regulations will reduce the scams and money laundering on the platform and thereby increase public trust.
4. Enhancement in Decentralized Finance (DeFi)
DeFi has revolutionized the way of banking, allowing people to buy, sell, and lend crypto directly to each other without the need for intermediaries. In the coming year DeFi platform can even get bigger, providing a platform for services like loans, investments, and insurance. This will reduce the dependence on traditional banks and eliminate the risk associated with it.
5. Decentralization of Web3
Web3 is a major revolution in the internet world. The decentralization of Web3 can be expected in 2025, providing users more control over their data and resources. With the enhancement in Web3, 2025 will witness decentralized online platforms built with blockchain technology, furnishing people with more security and privacy.
Final Thoughts
The market of cryptocurrency has seen huge growth in the last few years and the trend is likely to continue in the coming years. Though new regulatory developments can limit the scope, at the end of the day they ensure the security and safety of the platform. In 2025, cryptocurrency will enter the mainstream market, creating an impact on day-to-day financial transactions.