In the first week of January 2025, a groundbreaking crypto regulatory framework came into effect in the European Union, marking a significant step toward standardizing oversight in the crypto industry. The framework, known as the Crypto Asset Markets Regulation (CAMR), introduces stricter compliance requirements for crypto exchanges, wallet providers, and DeFi platforms. Key provisions include mandatory licensing, enhanced customer due diligence, and real-time transaction monitoring to curb fraud and money laundering.
The regulation aims to close gaps exploited by bad actors in 2024, such as fraudulent ICOs and phishing schemes. Industry leaders have praised the framework for fostering greater trust and stability, although smaller firms have expressed concerns about the cost of compliance. Policymakers hope CAMR will set a global benchmark, encouraging other regions to adopt similar standards in 2025.