Global Regulations Evolve as Bitcoin Surpasses $100K

New York, USA, June 9, 2025— Bitcoin’s surge past $100,000 in December 2024 has prompted governments worldwide to reassess their regulatory frameworks, as the cryptocurrency’s growing influence reshapes global markets. A recent International Monetary Fund report underscores that while some countries are fostering Bitcoin’s growth through supportive policies, others are imposing stricter controls to mitigate risks like financial instability and illicit transactions, creating a complex landscape for digital assets.

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U.S. Embraces Crypto-Friendly Policies

The United States has played a pivotal role in Bitcoin’s climb to $100,000, driven by a shift toward pro-cryptocurrency policies under the incoming Trump administration. The nomination of Paul Atkins, a cryptocurrency advocate, as the next Securities and Exchange Commission (SEC) chair signals a lighter regulatory touch, boosting market confidence.

Since the approval of spot Bitcoin exchange-traded funds (ETFs) in January 2024, $9 billion in inflows have been recorded in Q1 2025, according to financial data from Bloomberg. However, the Commodity Futures Trading Commission (CFTC) remains vigilant, monitoring Bitcoin futures for signs of speculative manipulation, reflecting ongoing concerns about market stability.

This approach marks a departure from previous SEC enforcement actions, which targeted crypto firms for unregistered securities offerings. The U.S. is now exploring a unified federal framework to classify cryptocurrencies like Bitcoin as commodities or securities, aiming to harmonize regulations across states and encourage innovation while safeguarding investors.

Did you know?
Bitcoin’s market capitalization at $100,000 exceeds $2 trillion, rivaling the GDP of major economies like Italy and South Korea.

Divergent Approaches in EU and Asia

The European Union’s Markets in Crypto-Assets (MiCA) regulation, fully enforced in 2024, establishes a standardized framework across its 27 member states, prioritizing anti-money laundering measures and investor protection. While MiCA enhances market transparency, its stringent compliance requirements have increased costs for crypto businesses, potentially stifling smaller firms.

In Asia, regulatory responses vary widely. Japan recognizes Bitcoin as legal property under its Financial Services Agency, and Singapore has strengthened transparency rules to curb illicit activities. In contrast, China’s 2021 ban on crypto trading and mining remains in place, with its digital yuan gaining prominence. India permits Bitcoin trading but imposes a 30% tax on gains, and a proposed bill to ban private cryptocurrencies introduces further uncertainty.

These varied policies highlight the global challenge of fostering innovation while managing risks. The IMF report suggests that coordinated international standards, as discussed by the G20, could reduce regulatory disparities and enhance market stability, though differing national priorities slow progress.

Analytical Insight: Regulatory Influence on Market Trends

On-chain analytics from Glassnode reveal that 68% of Bitcoin’s trading volume in Q1 2025 occurred in jurisdictions with clear regulatory frameworks, such as the U.S. and Japan, underscoring the link between policy clarity and institutional investment. Since November 2024, institutional players like BlackRock have purchased $22 billion in Bitcoin, driving its $100,000 milestone.

In contrast, restrictive regulations in China and India have pushed trading to decentralized platforms, increasing risks of unregulated activity. The IMF estimates that global regulatory harmonization could reduce Bitcoin price volatility by 12%, but excessive restrictions in regions like the EU may redirect capital to less-regulated markets, potentially creating new volatility hubs.