Expert Predictions For Crypto In 2025

The UK government has made a plan to regulate cryptocurrency over the next two years, introducing rules that are clearer to bring order to the sector. This involves drafting laws, consulting businesses, and establishing a regulatory framework by 2026.

The Prudential Regulation Authority has requested companies disclose their cryptocurrency activities and holdings by March 2025. This information will help assess risks in the financial system linked to digital currencies.

The Financial Conduct Authority has also launched a Crypto Roadmap to guide the development of rules. In September 2024, the UK passed a law recognising cryptocurrency as personal property, giving legal certainty to ownership and transactions in the market.

 

What Changes Are Being Made To Stablecoin Regulation?

 

Fiat-backed stablecoins, tied to traditional currencies, will no longer be regulated under payment systems. Instead, they will be addressed as part of broader cryptocurrency rules.

Under the new structure, stablecoin issuers will not need to hold reserves solely at central banks. This adjustment gives issuers greater operational flexibility while maintaining oversight through general crypto regulations.

Businesses creating sterling-backed stablecoins may benefit from this clarity, though they will need to prepare for stricter authorisation requirements and stronger focus on risk management practices.

 

How Popular Is Cryptocurrency In The UK?

 

The UK ranks 12th worldwide in cryptocurrency adoption, with about 12% of the population owning digital currencies. The average investment value per individual stands at £1,842.

Interest in cryptocurrency is growing, with over 7 million UK adults involved in buying, selling, or holding digital assets. Many see it as a way to diversify their finances, and user-friendly platforms have made it easier to participate.

Despite this, the adoption rate in the UK remains lower compared to countries such as India and Nigeria, where cryptocurrencies are a more popularly used financial systems.

 

What Role Do Officials And Regulators Play In Crypto Policies?

 

The UK government is attempting to regulate crypto activities such as trading platforms and market standards. Economic Secretary to the Treasury Tulip Siddiq confirmed that the proposals from 2023 would be fully implemented.

The FCA and Bank of England are working together to manage regulations for cryptocurrency trading and payment systems. They want to create rules that address financial risks while accommodating industry needs.

Ongoing consultations and feedback from businesses are shaping these policies. This dialogue helps regulators draft practical rules that can be implemented effectively while supporting innovation.

 

What Can Be Expected For Crypto Regulation In 2025?

 

Draft regulations for the UK’s cryptocurrency framework are expected in early 2025, with the full system ready in 2026. This timeline gives companies the opportunity to prepare for compliance.

They will be preventing money laundering, protecting consumers, and being transparent in operations. Businesses that act early to align with expected requirements will find it easier to navigate the upcoming changes.

This regulatory clarity could attract global cryptocurrency firms to the UK. For local businesses, particularly those working with stablecoins, the new framework creates a more predictable and supportive environment to grow.

As for the crypto industry as a whole, experts have gathered to predict what they think the 2025 year will look like, and here’s what they shared…

 

Our Experts:

 

• Jorge Lesmes, Vice President & Client Partner, Banking, NTT DATA UK&I
• Alessandro Hatami, Managing Partner, Strategic Consultancy Pacemakers
• Lux Thiagarajah, Director of Growth, OpenPayd
• Russell Shor, Senior Market Specialist, Tradu
• Daniel Fogg, CEO, RootstockLabs
• Sean Hill, Crypto Asset Specialist and Senior Manager, Menzies LLP
• Jonathan Dixon, Head of Trade Surveillance, eflow Global
• James Strudwick, Executive Director, Starknet Foundation
• Cassie Craddock, Managing Director for UK & Europe, Ripple
• Phil Larratt, Director of Investigations, Chainalysis
• Matthias Bauer-Langgartner, Head of Policy Europe, Chainalysis
• Javier Rodriguez-Alarcon, Chief Commercial Officer, XBTO
• Philippe Bekhazi, Co-founder and CEO, XBTO
• Erald Ghoos, General Manager, OKX Europe
• Kurt Wuckert Jr, CEO and Founder, Gorilla Pool

 

Jorge Lesmes, Vice President & Client Partner, Banking, NTT DATA UK&I

 

 

“A digital gilt could modernise government borrowing, but only if we address practical implementation hurdles head-on. How will businesses adopt and integrate digital gilts into their existing trading and investment practices? Distributed ledger technology (DLT) for gilt issuance could enable instantaneous settlement, drastically reducing counterparty risk during volatile periods like the 2022 LDI crisis – but we must ensure the proper safeguards are in place.

“We’ve heard a lot of talk about Central Bank Digital Currencies (CBDCs), and this could serve as an important testing ground for the infrastructure and trust needed to underpin a future CBDC. A successful digital gilt programme might even lay the groundwork for wider adoption of digital financial instruments. However, the regulatory framework needs to be crystal clear from the outset to maintain the trust that makes gilts such a cornerstone of global financial markets.

“Market participants need a clear understanding of how digital gilts will operate within the existing financial system. For example, how will a fund manager used to traditional platforms integrate these new assets without disrupting their workflow or compliance processes? The UK has an opportunity to set a global standard here, but success will depend on striking the right balance between innovation and maintaining the robust, trusted nature of gilt markets”

 

Alessandro Hatami, Managing Partner, Strategic Consultancy Pacemakers

 

 

The Normalisation of Cryptocurrencies

“2025 will be the year when cryptocurrencies enter the mainstream. CBDCs will start to become standard as a type of currency in parallel to Fiat currencies; Meanwhile stablecoins will become normalised as a commodity because several stablecoins reserves are tied to commodities. The US, EU and China are starting to regulate cryptocurrencies more closely.

“Progress in the US towards a CBDC issued by the Federal Reserve is set to be slow because of the strong growth and lobbying by dollar linked Stablecoins such as Tether and USDC. The Chinese government’s drive to enhance the State’s social controls is likely to see a further push into driving the adoption of the eYuan by Chinese consumers.

“Meanwhile plans for the digital Euro will forge ahead, setting high standards in technological advancement and social responsibility. The future of the digital pound is unclear as the new government has had its hands full dealing with inflation and fluctuating interest rates: 2025 may bring more clarity.”

 

Lux Thiagarajah, Director of Growth, OpenPayd.

 

 

What can we expect in the cryptocurrency space in 2025?

“In 2025, we can expect cryptocurrency to grow significantly for a couple of reasons, primarily, macroeconomic and regulatory factors. Trump’s anticipated policies could provide support for the crypto market, especially with global interest rates levelling off and potential investor interest in higher yields. Stripe’s acquisition of Bridge has already pushed stablecoins further into the mainstream, signalling stablecoins becoming a central part of the payments ecosystem.

“Another key theme is tokenisation, although it may be less prominent than stablecoins. Tokenisation could revolutionise asset classes by allowing broader accessibility to investments. Additionally, clearer regulations from Washington may bring stability, encouraging more institutional involvement. However, there is a risk that if the administration does not fully support crypto as anticipated, the regulatory landscape may remain unpredictable​.”

How do you think regulations will affect the market dynamics?

“Regulation is going to be key in 2025, likely bringing legitimacy, resiliency, and, most importantly, trust to the crypto market. With regulation increasing, the crypto market will begin to become more appealing to major institutions. While crypto traditionalists may fear the idea of tighter regulation, it’s essential for crypto to compete with established asset classes and attract significant investment, ultimately stabilising and growing the market.”

Which blockchain innovations do you believe will have the most significant impact in the next few years?

“In the coming years, stablecoins and CBDCs will likely transform payments and financial stability. However, we are also excited to see how blockchain in gaming will drive user ownership and new revenue models, accelerating blockchain’s mainstream adoption across various industries.”

What factors do you think will drive mainstream adoption of cryptocurrencies?

“This is going to be an exciting year for the industry with mainstream cryptocurrency adoption being in sight! This adoption will be driven by regulatory clarity, a crypto-friendly U.S. government, and increased institutional investment. As regulations build trust, major institutions and banks may feel more secure entering the crypto space.

“This could lead to substantial asset allocation from major funds, legitimising crypto as a competitive asset class, causing essentially a domino effect. With fewer “bad players” like SBF, the market will hopefully gain stability, inviting broader public and institutional engagement.”

Which specific use cases do you believe will gain traction in 2025?

“The use of stablecoins in cross-border payments and FX trading could shift traditional EUR/USD trades towards EUR/USDC transactions, where the exchange rate remains EUR/USD but at least one leg is settled using stablecoins.”

 

Russell Shor, Senior Market Specialist, Tradu

 

 

“As 2024 draws to a close, the cryptocurrency market faces a transformative moment. The election of President Trump and Vice President Vance has brought optimism, with pro-cryptopolicies and reduced regulatory hurdles expected to encourage growth.

“Bitcoin’s halving in April tightened supply, pushed prices toward $100,000, and reinforced its appeal as a counter-inflationary asset. Additionally, speculation around a “cryptoczar” role and increased institutional interest, driven by spot Bitcoin ETFs, signals a shift from retail-driven momentum to broader adoption.

“Looking ahead to 2025, Bitcoin’s uptrend, marked by higher troughs and peaks, suggests potential for further gains. Institutional involvement could accelerate demand, but volatility and market sensitivity remain challenges. With favourable policies, growing adoption, and a capped supply, Bitcoin is set for an intriguing year.”

 

Daniel Fogg, CEO, RootstockLabs

 

 

The Growth of Bitcoin
“Bitcoin has seen substantial growth over the past year, especially within the final two months of 2024. It now sits at number 8 on the highest market cap list – flying above silver, Meta and Tesla. That said, there is some uncertainty about how long this period might last.

“We already saw the momentum of bitcoin slow down at the end of November as it struggled to break past the $100k value mark, eventually doing so after a two-week back and forth within the $90k range. Also, historically, Bitcoin has seen a drop following presidential inaugurations, dipping around February time.

“Thankfully, if it does drop again, I don’t expect it to be by much. The Trump administration has been very pro-cryptocurrency, and by the end of next year, I fully expect Bitcoin to be in a higher position than it currently is. Bitcoin is reaching a $1.7 billion market cap, indicating the dominance of big tech in the current market, and there isn’t a future where that doesn’t continue to grow over the next year; with regulatory changes being introduced and stronger support for digital currency from the US government.

“As bitcoin continues to rise in value and get propped up by the government, so too will we see an influx of new holders and builders of bitcoin who had previously been on the fence about it. Communities like Rootstock, which are dedicated to supporting users of BTC, will also benefit from additional members. This will almost certainly lead to greater support for BTC in-turn, with new DeFi programmes like Collective Rewards being created to reward active users of the blockchain.”

 

Sean Hill, Crypto Asset Specialist and Senior Manager, Menzies LLP

 

 

“As cryptocurrency continues to operate on a global scale, FCA regulatory efforts will play a significant role in shaping the future of the industry. However, it must be said that implementing new regulations will need careful consideration and input from all industry stakeholders to ensure that the UK remains competitive, safe and trading.

“Implementing market abuse controls and disclosures will improve market transparency and is likely to build confidence in crypto. Stablecoin regulation will help too, helping the market stablise through regular audits and steady cash reserves while standing to boost its adoption across retail and institutional investors. Prioritising consumer protection and market education will be vital in implementing these measures and helping consumers to make safer, more informed decisions on cryptoasset investments.

“However, the dark side of doing so will arise from the costs required to implement and maintain such expectations. This could negatively impact smaller projects and start-ups with more limited resources and initial funding, making an offshore move a more interesting prospect. Government incentives may well negate these issues, and are likely to be called upon by market leaders to help generate domestic investments.”

 

Jonathan Dixon, Head of Trade Surveillance, eflow Global

 

 

“The crypto industry will face several dramatic events in 2025 on both sides of the Atlantic. In the USA, the resignation of Gary Gensler from the SEC and the pro-crypto sound bites that have emerged from Donald Trump may signal a softening of the regulation through enforcement that has occurred throughout the last administration. Secondly, a Senate and Congress controlled by a single party, with a mandate for change, may lay the groundwork for crypto legislation to be passed.

“In Europe, MAR comes into force at the end of 2024, with Title VI preventing grandfathering for Trade Surveillance. We will see a requirement for Central Limit Order Books (CLOBs) that touch EU clients having surveillance programmes in place. This should enhance the quality and security, in the longer term, of Centralised Exchanges (CEXs).

“I foresee greater consumer protections being put in place as the market matures and a gradual harmonisation of global regulatory requirements; requirements that may largely mirror those in Traditional Finance.”
 

 

James Strudwick, Executive Director, Starknet Foundation

 

 

“One of the most anticipated developments in crypto for 2025 will be Ethereum’s Pectra upgrade. Split into two phases, the upgrade will enhance Ethereum’s scalability, accessibility, and cost-efficiency. A key feature of Pectra is PeerDAS (Peer Data Availability Sampling), which is designed to significantly expand Ethereum’s data availability and reduce Layer 2 transaction costs. For Layer 2 solutions like Starknet, this could bring transaction fees close to zero, making Ethereum-based applications more affordable and accessible for everyday users.

“Alongside this, the Verge upgrade is a further enhancement that will improve the running of Ethereum by making it more secure and accessible. This will be achieved by introducing stateless verification, which reduces the hardware requirements for running Ethereum nodes, allowing them to operate on everyday devices like smartphones and smartwatches. Verge will also integrate advanced cryptographic technologies into Ethereum’s core infrastructure, enabling faster, more secure transactions and enhanced scalability.

Together, these upgrades will help bring Ethereum closer to becoming a network capable of truly meeting the demands of mass adoption.”

 

Cassie Craddock, Managing Director for UK & Europe, Ripple

 

 

“Large financial institutions will double down on crypto offerings – but will need to seek out expert guidance to flourish

“2024 marked a pivotal turning point for institutional interest in crypto and blockchain solutions. Major players are making bold moves. Asset managers like Blackrock and abrdn are tokenising their money market funds, while SocGen FORGE has issued a euro-denominated stablecoin which will soon debut on the XRPL.

“As we move into 2025, those financial institutions still waiting on the sidelines will realise that internal pilots alone won’t be sufficient to drive meaningful progress. Equally, the complexities of legacy banking systems demand more than their isolated efforts and to truly scale tokenisation solutions, collaboration will be key.

“By working with advisors and seasoned industry partners, institutions can move beyond pilots, developing robust business cases, selecting and building on the best tools to scale their offerings, and ensuring compliance with emerging regulatory standards.”

 

Phil Larratt, Director of Investigations, Chainalysis

 

 

“When the digital asset market is booming, it’s typical to see an increase in fraud – investment scams, ponzi schemes, ICOs, approval phishing and the use of drainers. The current bull market we’re experiencing is set to continue into 2025, so the proliferation of this type of financial crime will be a key challenge facing the industry next year.

“There has been significant progress by law enforcement (LE) and government agencies to combat this; we’ve seen a number of proactive successes in 2024 where blockchain analysis has been used to identify criminals and disrupt their operations through enforcement action. We’ve also observed regulators and the police issuing official advisories and crime prevention advice. However, owing to the sheer volume of this type of crime – for example, 40% of all crime in the UK is fraud – raising awareness more broadly and preventing victimisation is going to be critically important in stopping the fraud epidemic over the next year.

“It’s also evident that the public sector alone can’t solve these challenges, and an ecosystem-wide holistic response is needed. Public sector organisations will need to work in partnership with knowledgeable industry players to share intelligence more expeditiously and implement more proactive data-driven initiatives to disrupt novel crime types. This will lead to a safer blockchain ecosystem.

“Furthermore, despite significant success disrupting the cybercrime ecosystem in 2024, ransomware will remain a pervasive threat next year. Chainalysis data shows that this year remains on track to be the highest-grossing year yet for ransomware payments, so we can expect this to continue. Law enforcement and other government agencies will have to continue to innovate, holistically targeting the threat actors behind the attacks but also the wider cybercrime ecosystem that enables this offending.

“The disruption of Lockbit as part of Operation Cronos was a great example of how international partners can work together to deploy high impact enforcements, and this will need to continue in 2025 to prevent further proliferation of this type of crime.

“Finally, criminals beyond just cybercrime will continue to utilize cryptocurrency technology to launder the funds generated by their illicit activities. In 2024, we saw traditional cash-rich organised crime groups utilising international money laundering services to convert their ill-gotten gains to cryptocurrency to import firearms and purchase drugs from cartels. In 2025, as the bull market continues, we expect that more traditional and less tech-savvy criminals will also adopt/ leverage cryptocurrencies to further their illicit activity and make their business models more effective.

“In response, law enforcement and governments, from front line detectives in local forces, to national agencies investigating hostile state activity, will need to be equipped and empowered with the education, tools, reliable data and expert support required to successfully disrupt illicit activity across the full range of crime types.

“And although we can already see more proactivity from these bodies compared to previously, there is still a huge amount of work to do to raise awareness across so they can fully exploit the opportunities afforded through blockchain investigations, developing intelligence, securing evidence and seizing assets.”

 

Matthias Bauer-Langgartner, Head of Policy Europe, Chainalysis

 

 

“One of the key themes for the crypto industry as we enter into 2025 will be the dynamic regulatory landscape. We have a new government coming into power in the US that promises to create a robust framework for the industry. The UK is also promising to ramp up its efforts in the space too. However, while we don’t know what either of these will look like as of yet, we do know what the EU has in store – the implementation of phase two of MiCA.

“While phase one of MiCA, the so-called stablecoin regime, is already applicable since 30th June this year, the full regulatory framework for crypto asset service providers (CASPs) will become applicable on December 30. These regulations set a high bar, requiring a more sophisticated governance model, risk assessment and mitigation frameworks, and higher capital requirements. Additionally, the EU’s Crypto Travel Rule (TFR) will kick in simultaneously with MiCA, as will the EU’s cyber security act (DORA) – aiming at further market integrity and stability, but increasing the complexity of operating a CASPs in the EU.

“This complexity will require significant efforts by CASPs in the EU – with particularly smaller firms struggling more to cope given their often more restricted resources to quickly adapt to regulatory changes and maintain compliance. As a result, we could see some market consolidation over the next year, with firms pooling resources to survive the challenging landscape. However, in the mid- to long-term, we should expect to see the market expand as traditional finance firms enter the space and build out their own compliant offering.

“What we can also expect to see over the next year is an increase in adoption – both institutional and retail. MiCA brings regulatory clarity to institutions, giving them a clear path to building operations in the space. Additionally, it enhances trust, credibility and market integrity, and crucially establishes more consumer protection mechanisms – all of which will make the industry more attractive to retail customers. Once the short-term compliance hurdles are overcome, the EU will be an attractive region for native and non-native crypto businesses to offer services.”

 

Javier Rodriguez-Alarcon, Chief Commercial Officer, XBTO

 

 

“2025 is set to be a key growth year for the crypto industry. Investor adoption is on the rise thanks to the positive momentum, increasing market maturity and growing regulatory clarity globally.

“For this optimistic trajectory to endure, it is critical for digital asset businesses and projects to prioritise partnerships with reputable market makers.

“With more tokens expected to enter the market, projects are poised to capture the attention of a rapidly growing audience. This era of innovation will also bring new opportunities to invest in tokens with unique and transformative use cases. By working with rigorously vetted market makers, the industry can continue to build trust, protect investors, and solidify its position as a cornerstone of the global financial ecosystem.”

 

Philippe Bekhazi, Co-founder and CEO, XBTO

 

 

“The crypto market has gone from strength to strength in 2024, with Bitcoin breaching the $100,000 milestone. As the industry sets up for another key growth year, the bull market could continue well into 2025.

“Regulatory clarity is increasing globally, with MiCA set to take full effect from 30th December and the UK confirming plans to regulate the market by 2026. In the U.S., significant shifts are expected with leadership changes at the SEC, signaling potential adjustments in the regulatory landscape. As a more pro-crypto administration takes shape, digital assets are likely to become more integrated into the broader economy, fostering increased adoption among market participants.

“Bitcoin won’t be the only asset to benefit from this increased regulatory clarity and investor attention. We’re witnessing the early signs of an altcoin resurgence, with legacy protocols regaining attention and new projects launching offering unique and compelling use-cases. Additionally, we can expect a surge in alt-coin ETF launches, as institutions aim to capitalise on the success of the Bitcoin and Ethereum ETFs. Investor demand is at an all-time high and the market is responding accordingly.”

 

Erald Ghoos, General Manager, OKX Europe

 

 

“2025 will bring with it a transformative shift for the crypto industry – particularly in the European landscape. Bitcoin’s recent all-time high serves as a strong indicator of the growing trust and interest in digital assets. Coupling this with Europe’s new incoming MiCA regulations and the industry is on the precipice of a pivotal moment. We’ll see the introduction of a much-needed framework that promises greater clarity, security and stability.

“With MiCA, European investors — both retail and institutional — will gain access to clearer, safer opportunities within crypto markets in 2025. Retail participation has surged across the continent, with heightened activity especially in regions where regulatory guidance and infrastructure support investor confidence. Meanwhile, institutional players are increasingly turning to regulated custodial services as they enter the maturing European crypto ecosystem.”

 

Kurt Wuckert Jr, CEO and Founder, Gorilla Pool

 

 

Bitcoin Will Hit New All-Time Highs—But It’s Not All Good News

“BTC’s price rally, bolstered by institutional investments like BlackRock’s ETF and MicroStrategy abandoning their core business to focus on BTC investment, will likely push the asset to unprecedented heights. However, this growth will continue to be driven by speculation rather than genuine utility. As BTC remains incapable of scaling for everyday commerce, the disconnect between price and economic function will deepen—highlighting the cracks in a market that’s more hype-driven than substance-driven.

 

BSV Will Prove Bitcoin Can Scale

“2025 will mark the public deployment of Teranode, making BSV the first Layer 1 blockchain capable of millions of transactions per second. This breakthrough will redefine what’s possible in blockchain scalability and provide a blueprint for blockchains designed for high-velocity commerce and data integrity solutions. While other chains debate incremental upgrades, BSV will lead with a live example of scalability at scale.

 

AI Missteps Will Highlight Blockchain’s Role in Data Integrity

“AI’s rapid deployment will yield both innovation and catastrophe. When a critical misstep occurs—whether due to biased or false data—calls for transparent, tamper-proof data systems will explode. Blockchain will emerge as a key technology for ensuring that AI models are built on verified, high-quality datasets. This could mark the beginning of blockchain’s integration with AI in meaningful ways.

 

Stablecoins Will Dominate, But Trust Will Be a Growing Concern

“Stablecoins will continue their rise as fintechs like PayPal and Stripe expand adoption – putting pressure on Tether and Circle. These tokens will become increasingly integral to global remittance and micropayments.

“However, the lack of transparency in stablecoin reserves (looking at you, Tether) will spark regulatory scrutiny and calls for blockchain-based, provable reserves instead of promises. The trust gap in stablecoins may drive innovators toward solutions rooted in public, auditable blockchains.

 

Geopolitical Tensions Will Drive Cybersecurity Adoption

“With tensions likely to escalate between the U.S. and China under the Trump administration, cyberattacks will rise sharply. This will push governments and enterprises toward blockchain-secured cybersecurity solutions. From tamper-proof logs to decentralised threat monitoring, blockchain will become a linchpin in securing critical infrastructure.

 

Ethereum and other EVM Chains Will Face Scalability Pressure

“Ethereum’s reliance on Layer 2, cross-chain bridges and rollups will become increasingly evident as the network struggles to scale. Meanwhile, the success of Layer 1 solutions with unbounded scalability will amplify the narrative that Ethereum is too complex for mass adoption without sacrificing usability. This will benefit Solana to a point, and then there will be network-wide catastrophes as popular blockchains crumble under their own technical debt.

 

Crypto’s “Big Reset”

“As major players like Coinbase and Binance face increasing regulatory challenges, the crypto market will consolidate and professionalise. Smaller, speculative projects will fade, leaving a more streamlined industry. This reset could create space for genuine innovation to thrive, particularly in public blockchains focused on utility over hype.

“Closing Thought: 2025 will be the year where crypto’s speculative era meets the hard demands of real-world application. The winners will be the projects that can scale, secure, and simplify commerce. Everyone else? They’ll be left behind.”