This week, Bitcoin reached the $100k mark again and many analysts already speculate on the Bitcoin price prediction 2025, with a few forecasts in place that they might be at the right level to reach an all-time peak of 90k. But this is contrary to the position of traditional finance institutions that begin to embrace them and provide it with a context. Such organizations include the European Union, while Ireland and Italy are two nations that are transforming to meet this challenge. The changes and reactions of crypto markets are discussed below.
Ireland Changes to Cryptocurrency Legislation
Ireland’s Finance Minister, Jack Chambers, revealed the government was to develop new legislation in updating regulations regarding how digital assets and cryptocurrencies are dealt with and safeguarded. As noted by newspaper The Irish Examiner, it will aim to place the country within European Union regulation, specifically related to cryptocurrency use and security, of which should come into place before December 30th.
The country has also announced that it will begin action detailed in the National Payment Strategy. It came with further announcements about healthcare and other financial matters. This move follows several other European countries also introducing fresh legislation. However, none of this seems to have hurt the prices of cryptocurrency, which have recently rocketed.
How Have the Crypto Markets Responded
The head of the crypto pack, Bitcoin, has reached its all-time high, with some of the best weeks ever. Last month, it had increased by a third. After going down to $53,000 in September, it picked up even more. As of Tuesday, it pushed up to 80k. This led some to predict a Bitcoin price in 2025 as high as 100k per Bitcoin.
The record high for the cryptocurrency was earlier set in March at $73,700. This was partly due to the introduction of Bitcoin ETFs in January. This allowed people to trade in exchange-traded funds that handled Bitcoin. Despite a few minor outpourings, they have had a very favorable year. The past week has seen increased inflows into these ETFs, also buoying the prices.
Further Response to EU Crypto Directives
Italy is another country that has this week announced changes in the face of global regulatory trends. It has divulged that its capital gains tax on cryptocurrency profits will move from 26% to 42%. This gives a hike of over 60%.
According to Bloomberg, the government has done so because they believe the “phenomenon is spreading.” They also stated it was a move to create revenue for families and businesses. However, many see it as a way to improve the country’s stagnant economy.
Outside of the European Union, the United Kingdom has also declared plans for new crypto regulation. It believes that the rules of its present jurisdiction are confusing for taxpayers. In normal circumstances, this income would be reported as capital gains tax and would be taken into account separately when tokens are sold. On the other hand, money gotten from staking and crypto mining is considered income. The government expects to increase another £10 million annually through the clarification of this issue.
What is MiCA?
Many of these changes are because of Mica. Mica is short for Market in Crypto-Assets (MiCA) Regulation. The European Union introduced this, which comes into stages- the next phase being December 2024. It focuses on two core aims.
The first is to allow a framework for the European financial industry. It will let them offer new digitized products and services to clients. This will help financial institutions see forthcoming products on the market and build products around tokens.
It also focuses on making the markets more secure and the safety of the cryptocurrencies stronger against cybercrime and fraud. This would involve upgrading the regulations to curb any undesirable activities.
Despite it having no effect on the crypto markets and, in fact, boosting them at times, there are voices that demand that the framework be tweaked. This shall be on data disclosures related to an intention to offer crypto assets services and an application for authorization as a crypto asset service provider. The European Securities and Markets Authority has asked for this.
What Will the Outcome Be?
For students at the University of Washington, particularly those in the tech sector, it signals another mainstream shift towards cryptocurrency acceptance. In changing regulations, crypto becomes more mainstream. As it has more real-world applications, those studying technology jobs are provided with more opportunities. It will also result in added funding for research and development, some of which may come through the university itself.
It is hard to tell the outcome, as cryptocurrency has always bucked trends in the past.
We are also entering new phases, where governments, unions, and states are beginning to incorporate cryptocurrency into traditional finance. While this makes crypto lose some of its initial decentralized appeal, this has not impacted prices. In fact, it has swelled the desire for Bitcoin on the open market. If this continues to increase, now is the best time to be buying before it gets too mainstream and the price increases.
Specializing in comprehensive guides and step-by-step solutions, Rishabh has built a reputation for demystifying complex technical issues and providing practical advice on resolving common “not working” errors across various devices and platforms. His articles are a go-to resource for tech enthusiasts and everyday users alike, offering clear, concise, and effective solutions to enhance digital experiences.
