Recap: Quarterly Crypto Policy Roundtable, Q1 2025

Last week, TRM’s policy experts — Ari Redbord, Angela Ang, and Isabella Chase — got together to reflect on what has proved to be a frenetic start to 2025 for the crypto ecosystem.

Read on for a recap of their discussion — spanning the turning of tides in US crypto policy, to MiCA implementation, to North Korea’s USD 1.5 billion hack of Bybit  — or watch the full recording below. 

United States: A new crypto policy landscape

The team unanimously agreed that the US had seen the most crypto policy action in 2025 by far. Following the Trump administration’s inauguration, an executive order was swiftly issued, outlining a new approach to stablecoin adoption, regulatory collaboration, and a ban on central bank digital currencies (CBDCs). The administration has emphasized a more coordinated effort among financial regulators — including the SEC, CFTC, DOJ, and Treasury — to craft a cohesive digital asset policy framework. 

Key highlights include the expectation of new legislation requiring full reserve backing, regular audits, and enhanced consumer protections for stablecoins, along with the potential for a national Bitcoin reserve, which has spurred broader conversations on the US’s role in the global crypto economy. The new administration also has a significant focus on illicit finance crackdowns, particularly targeting cartels, Chinese money laundering networks, and cross-border crime using crypto, alongside a shift in enforcement strategy by the SEC and CFTC, prioritizing fraud and scams over asset classification debates.

APAC: Balancing innovation and regulation

In APAC, regulators are closely monitoring developments in the US and are focused on maintaining competitive yet robust regulatory environments. 

The past few months have seen several innovation-forward initiatives across the region. For example:

• Hong Kong launched a new ASPIRe Roadmap, which aims to position the city as a global crypto hub by introducing custody regulations, OTC trading frameworks, and expanded token offerings for professional investors. 
• South Korea announced a phased easing of institutional crypto trading restrictions, set to allow over 3,500 eligible companies to engage in digital asset transactions by late 2025. 
• In Japan, reports suggest that regulators may classify crypto as securities, potentially paving the way for spot Bitcoin ETFs.

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Europe and sanctions: The evolving enforcement landscape

In Europe, the primary focus remains on MiCA implementation and sanctions enforcement. 

MiCA, which officially took effect on December 31, 2024, is undergoing continued refinements, particularly concerning stablecoin compliance and licensing for CASPs (Crypto Asset Service Providers). Additionally, the EU’s 16th sanctions package against Russia introduced designated crypto wallet addresses for the first time, signaling stronger enforcement mechanisms. The Digital Operational Resilience Act (DORA) has also gained prominence, especially in light of recent high-profile crypto exchange hacks, reinforcing the need for enhanced cybersecurity standards.

Hardening defenses against hacks and artificial intelligence

Outside of policy, perhaps the most pivotal event of the quarter has been North Korea’s record-breaking USD 1.5 billion hack of crypto exchange, Bybit. 

In a single attack, North Korea more than doubled its total haul from crypto heists in 2024. TRM Labs identified over USD 200 million moved within 48 hours, highlighting the increasing liquidity and efficiency in money laundering networks. Authorities are now assessing whether cold wallet storage mandates remain effective or if more technology-neutral security policies are needed. 

We are also seeing an increase in the use of AI by bad actors — often in combination with crypto — to accelerate the speed and scale of their illicit activity. TRM Labs' recent report on AI-enabled crime highlights the growing sophistication of AI-driven fraud, from deepfake-enhanced identity theft to the use of AI-generated phishing scams targeting financial institutions. AI is also being leveraged to automate money laundering processes, enabling illicit actors to rapidly obfuscate stolen funds at an unprecedented scale. 

To be effective in combating these evolving threats, AI fluency — among law enforcement, regulators, financial institutions, and compliance teams — is critical.

Looking ahead

Looking ahead, the pace of crypto policy developments in Q2 is set to be just as intense as what we saw this past quarter. In particular, Ari anticipates 30-60-90 day reports from US regulators, which will provide clearer insights into the policy and enforcement priorities. This will likely be keenly studied by the policymakers around the world, as they consider their own crypto policy stances.

With much to discuss, the team looks forward to meeting the digital asset community at the Point Zero Forum in Zurich in May for some interesting conversations.

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