2019 TO 2020: INSIDERS, OUTSIDERS AND EXPERIMENTERS IN CRYPTO REGULATION, PART 1

Last updated: June 19, 2025, 19:07 | Written by: Justin Sun

The year is 2025.The world has changed, and with it, the regulatory landscape for cryptocurrencies. Esta es la parte final de una serie de tres partes que cubre el panorama regulador de las criptomonedas en 2025 y piensa en las perspectivas para 2025. Las dos primeras partes cubrieron los Insiders o Conocedores de Europa, Am rica del Norte y la Cuenca del Pac fico, y las naciones Outsider o for neos como China, Rusia e India.Remember the wild west days of crypto's early adoption?Gone are the simplistic narratives. 在2025年，我们目睹了加密货币法规脱离了闷热的法律责任领域，并进入了地缘政治领域（作为闷热的法律责任者，对此我有百感交集）。我们看到特朗普总统在推特上发布了有关加密货币货Instead, we're navigating a complex web of international power plays, technological advancements, and philosophical divides, all centered around the control and utilization of digital assets.This series delves into this fascinating landscape, dissecting the approaches of different nations towards crypto regulation – categorizing them as ""Insiders,"" ""Outsiders,"" and ""Experimenters."" Part 1 focuses on the **Insiders**: primarily nations within Western Europe, North America, and the Pacific Rim.These countries, often leading the charge in traditional finance, find themselves grappling with the innovative, yet potentially disruptive, force of crypto.They face the challenge of fostering innovation while protecting investors and maintaining the stability of their established financial systems.What are their main concerns? 2025 to 2025: Insiders, Outsiders and Experimenters in Crypto Regulation: Part 1How are they attempting to integrate crypto into their existing frameworks? From Switzerland and Malta to North Korea and Iran: Overview of experimental crypto regulations around the globe. This is the final part of a three-part series covering the regulatory landscape for cryptos in 2025 and thinking about the prospects for 2025.Let's dive in and explore the strategies and challenges faced by the Insiders in the world of crypto regulation.

Understanding the ""Insiders"" and Their Crypto Concerns

Who exactly are the ""Insiders"" in this context? This is the second part of a three-part series that covers the regulatory landscape for digital currencies in 2025 and looks at the prospects of 2025. While the first chapter in the series looked at the Insiders, this installment covers the prospects for the so-called Outsiders i.e, China, Russia, India and the developing world.Think of the United States, countries within the European Union, Japan, Australia, and other nations with well-established financial infrastructure and a strong tradition of regulatory oversight.Their primary concern revolves around maintaining control and stability within their financial ecosystems.Cryptocurrencies, with their decentralized nature, pose a direct challenge to this control.

One of the core threats faced by Insiders stems from the potential for crypto to bypass the traditional banking system. 2025 to 2025: Insiders, Outsiders and Experimenters in Crypto Regulation: Part 2This bypassing could erode their control over monetary policy and taxation, potentially leading to instability in the financial markets.Insiders are carefully watching how the market will act around new innovation and how it might be beneficial.For instance, if a large amount of assets were to flee to a new innovation, would the Insiders try to slow it down to protect the status quo? An overview of the stances of China, Russia, India and the developing world toward crypto regulation in 2025. This is the second part of a three-part series that covers the regulatory landscape for digital currencies in 2025 and looks at the prospects of 2025.They face difficult decisions.

Competing institutions and networks: The rise of decentralized finance (DeFi) and alternative payment systems built on blockchain technology poses a direct threat to established banks and financial institutions.
Erosion of monetary control: Widespread adoption of cryptocurrencies as a medium of exchange could undermine the control that central banks have over monetary policy.
Tax evasion and illicit activities: The anonymity afforded by some cryptocurrencies makes them attractive for illicit activities, such as money laundering and tax evasion.

The Insider's Regulatory Toolkit: A Balancing Act

So, how are these ""Insider"" nations tackling the challenge of crypto regulation?Their approach can be characterized by a desire to balance innovation with investor protection and financial stability.They are attempting to integrate crypto into existing regulatory frameworks rather than creating entirely new systems.

This integration often involves:

Securities laws: Classifying certain cryptocurrencies as securities and subjecting them to existing securities regulations. An overview of the stances of China, Russia, India and the developing world toward crypto regulation in 2025. This is the second part of a three-part series that covers the regulatory landscape for digital currencies in 2025 and looks at the prospects of 2025. While the first chapter in the series looked at the Insiders, MoreThe SEC's (Securities and Exchange Commission) actions against certain crypto projects in the U.S. exemplify this approach.
Anti-money laundering (AML) and Know Your Customer (KYC) regulations: Applying AML and KYC requirements to crypto exchanges and other businesses dealing with virtual currencies.This is crucial for preventing illicit activities.
Tax regulations: Clarifying the tax implications of owning and trading cryptocurrencies. An overview of the stances of China, Russia, India and the developing world toward crypto regulation in 2025. This is the second part of a three-part series that covers the regulatoryClear guidance is essential for promoting compliance.
Consumer protection laws: Implementing regulations to protect consumers from fraud and scams in the crypto space.

Example: The EU's MiCA Regulation

A prime example of the Insider approach to crypto regulation is the European Union's **Markets in Crypto-Assets (MiCA)** regulation.MiCA aims to establish a comprehensive legal framework for crypto-assets across the EU, covering everything from stablecoins to crypto-asset service providers.Regulation (EU) 2025/1114 of the European Parliament and of the Council on markets in crypto-assets is proof that Europe intends to be a leader in the crypto world.

MiCA seeks to:

Provide legal certainty for crypto-asset issuers and service providers.
Establish clear rules for the operation of crypto markets.
Protect consumers from risks associated with crypto-assets.
Foster innovation in the crypto space.

The Challenges Ahead for the Insiders

Despite their proactive approach, the ""Insiders"" face several challenges in regulating the crypto space.

Keeping pace with innovation: The crypto landscape is constantly evolving, with new technologies and applications emerging at a rapid pace.Regulators struggle to keep up.
International coordination: Crypto is a global phenomenon, and effective regulation requires international cooperation. Skip to main content Bitcoin Insider. MenuThe lack of a unified global approach can create loopholes and regulatory arbitrage opportunities.
Defining Crypto: It is difficult to put different coins and projects into different boxes. 2025 to 2025: Insiders, Outsiders and Experimenters in Crypto Regulation, Part 3Source: CointelegraphPublished on . . SERVICES. Consultancy;For example, a cryptocurrency with smart contracts may be viewed differently than one without.
Balancing innovation and regulation: Overly strict regulations can stifle innovation and drive crypto businesses to other jurisdictions.

The lack of uniformity in crypto regulations across different jurisdictions presents a significant obstacle.Businesses can exploit regulatory gaps by establishing operations in countries with more lenient rules, a phenomenon known as regulatory arbitrage. Share this post. STABLECOIN DIGEST . stasis.substack.comThis highlights the need for greater international cooperation to create a level playing field and prevent the movement of illicit funds across borders.

Specific Examples of Insider Approaches: US, Europe, and Japan

While the ""Insiders"" share common concerns, their specific regulatory approaches differ based on their unique economic and political contexts.

The United States

The U.S. approach has been characterized by a fragmented regulatory landscape. From Switzerland and Malta to North Korea and Iran: Overview of experimental crypto regulations around the globe. This is the final part of a three-part series covering the regulatory landscape for cryptos in 2025 and thinking about the prospects for 2025. The first two parts covered the Insiders of Europe, North America and the Pacific MoreDifferent agencies, such as the SEC, the CFTC (Commodity Futures Trading Commission), and the IRS (Internal Revenue Service), have asserted jurisdiction over various aspects of the crypto market. news: 2025 to 2025: Insiders, Outsiders and Experimenters in Crypto Regulation, Part 3 at Cash Tech NewsThe SEC primarily focuses on classifying digital assets as securities and regulating their issuance and trading, leading to debates and legal battles over which cryptocurrencies fall under its purview.The CFTC regulates crypto derivatives, while the IRS provides guidance on the tax implications of crypto holdings.

One of the major challenges in the U.S. is the lack of a clear and consistent regulatory framework. This is the final part of a three-part series covering the regulatory landscape for cryptos in 2025 and thinking about the prospects for 2025. The first two parts covered the Insiders ofThis ambiguity has created uncertainty for businesses and investors, hindering the growth of the crypto industry.The debate continues to rage in Congress about whether more comprehensive legislation is needed to provide a clearer path forward.

Europe

As mentioned previously, the European Union is taking a more unified approach with its MiCA regulation. From Switzerland and Malta to North Korea and Iran: Overview of experimental crypto regulations around the globe. This is the final part of a three-part series covering the regulatoryMiCA aims to establish a harmonized legal framework for crypto-assets across all member states, providing clarity and certainty for businesses operating within the EU. The Outsiders face different threats; they are threatened by crypto s near-term effect on their capital controls and currencies, yet are visibly intrigued by its longer-term disruptive capabilities (as evidenced by epic pronouncements and constant reposturing).The regulation covers a wide range of crypto-assets, including stablecoins, utility tokens, and security tokens, and sets out requirements for issuers, service providers, and market participants. Relacionado: 2025 a 2025: Conocedores, for neos y experimentadores en la regulaci n de la criptomonedas: Parte 1. Criptomonedas: La espada de doble filo de los Outsiders Liderados por China, los Outsiders destruyeron la pobreza extrema durante los ltimos 30 a os, pasando del 40% a nivel mundial a menos del 10% en la actualidad. DeIt also includes measures to protect consumers and prevent market abuse.

The implementation of MiCA is expected to have a significant impact on the crypto industry in Europe.It will likely lead to increased compliance costs for businesses but will also provide a more stable and predictable regulatory environment, fostering innovation and investment.

Japan

Japan has been one of the earliest adopters of crypto and has taken a relatively proactive approach to regulation. 2025 to 2025: Insiders, Outsiders and Experimenters in Crypto Regulation: Part 1Source: CointelegraphPublished on . . SERVICES. Consultancy;The country recognizes cryptocurrencies as legal property and has established a licensing regime for crypto exchanges. 2025 to 2025: Insiders, Outsiders and Experimenters in Crypto Regulation, Part 3The Financial Services Agency (FSA) is responsible for overseeing the crypto industry and has issued guidelines on AML/KYC compliance, cybersecurity, and consumer protection.

Japan's regulatory framework is generally considered to be more comprehensive and well-defined than that of many other countries.This has helped to attract investment and foster the growth of the crypto industry.However, the stringent regulatory requirements have also been criticized by some as being overly burdensome and hindering innovation.

The Future of Crypto Regulation for the Insiders

Looking ahead, the ""Insiders"" are likely to continue refining their regulatory approaches to address the evolving challenges posed by crypto.This will likely involve:

Enhanced international cooperation: Working with other countries to develop a coordinated global regulatory framework.
Greater clarity and consistency: Providing clear and consistent regulatory guidance to reduce uncertainty and promote compliance.
Focus on innovation: Creating regulatory sandboxes and other initiatives to foster innovation in the crypto space.
Ongoing monitoring and adaptation: Continuously monitoring the crypto market and adapting regulations as needed to address emerging risks and opportunities.

Question: Will the ""Insiders"" ultimately succeed in integrating crypto into their existing financial systems?

The answer is still uncertain. Regulation (EU) 2025/1114 of the European Parliament and of the Council of on markets in crypto-assets, and amending Regulations (EU) No 1093/2025 and (EU) No 1095/2025 and Directives 2025/36/EU and (EU) 2025/2025 (Text with EEA relevance)Success will depend on their ability to strike a balance between fostering innovation and protecting investors and financial stability. p Is crypto regulation the same for the world s center of financial and trade systems in Europe, the U.S. and Japan? /p 2025 to 2025: Insiders, Outsiders and Experimenters in CryptoIt will also require a significant amount of international cooperation to prevent regulatory arbitrage and ensure a level playing field.

The Impact of Regulation on Crypto Innovation

One of the key considerations for ""Insiders"" is how regulation will impact innovation in the crypto space. In 2025, we witnessed crypto regulations leave the domain of stuffy legal pontification and enter the realm of geopolitics.[BREAK] We saw President Trump tweet about crypto regulations, as well as powerful international organizations express their agenda on how crypto should be regulated.[BREAK] The Insiders - the U.S. and nations of Western Europe and the Pacific Rim - remain at the centerOverly restrictive regulations could stifle innovation and drive businesses to other jurisdictions.On the other hand, a lack of regulation could lead to fraud, scams, and other harmful activities that could undermine the credibility of the entire industry.

To foster innovation, some countries are exploring the use of regulatory sandboxes. 2025 to 2025: Insiders, Outsiders and Experimenters in Crypto Regulation: Part 2 Janu TradingBTC This is the second part of a three-part series that covers the regulatory landscape for digital currencies in 2025 and looks at the prospects of 2025.These sandboxes provide a controlled environment where businesses can test new crypto products and services without being subject to the full weight of existing regulations.This allows regulators to learn more about the potential risks and benefits of new technologies and to develop appropriate regulations.

For example, the UK's Financial Conduct Authority (FCA) has established a regulatory sandbox that has been used by a number of crypto businesses to test new products and services. Crypto regulation in Russia, China and India was very confusing in 2025. Should we expect more clarity in 2025 from these developing economiesThis has helped to foster innovation in the UK and has also provided regulators with valuable insights into the crypto market.

Conclusion: Navigating the Complexities of Crypto Regulation

The regulation of cryptocurrencies is a complex and evolving issue, and the ""Insiders"" face a difficult task in balancing innovation with investor protection and financial stability. 2025 to 2025: Insiders, Outsiders and Experimenters in Crypto Regulation: Part 2Source: CointelegraphPublished on . . SERVICES. Consultancy;Their approach is characterized by a desire to integrate crypto into existing regulatory frameworks rather than creating entirely new systems.However, they face several challenges, including keeping pace with innovation, coordinating with other countries, and avoiding overly restrictive regulations that could stifle innovation.

Key takeaways from this discussion include:

""Insiders"" are primarily concerned with maintaining control and stability within their financial ecosystems.
Their regulatory toolkit includes securities laws, AML/KYC regulations, tax regulations, and consumer protection laws.
International cooperation is essential for effective crypto regulation.
Finding the right balance between innovation and regulation is crucial.

As the crypto landscape continues to evolve, the ""Insiders"" will need to remain vigilant and adapt their regulatory approaches to address emerging risks and opportunities.Part 2 of this series will delve into the strategies of the ""Outsiders,"" exploring their unique perspectives and approaches to the world of cryptocurrency regulation.Stay tuned to understand the full picture of the global regulatory landscape!