2025-12-26 02:24:55

The EU's digital asset regulatory landscape is quietly shifting.

Starting from January 1st next year, crypto assets will be incorporated into the EU's unified tax reporting system. This milestone marks a watershed—signaling that the crypto market is beginning to be integrated into mainstream financial frameworks and is no longer in a gray area.

On the surface, this is just a policy adjustment, but the underlying signals are worth deep reflection. It represents the evolution of crypto assets from "marginal finance" to "institutionalized assets," with rules becoming more transparent and enforceable.

Regulation is always a double-edged sword. On one hand, the anonymity and operational flexibility of projects will be constrained, and users will need to adapt to more compliance requirements. But on the other hand, this opens the door for regulatory normalization—establishing compliance pathways and removing barriers for large-scale traditional financial capital to enter.

From this perspective, it’s not just about "restrictions," but also about industry filtering. Projects that can build on a compliant foundation and achieve sustainable development may, in fact, attract more institutional attention and capital inflows.

The key question then arises: as the regulatory framework gradually improves and rules become clearer, will institutional funds become more proactive in entering the market? If so, the actual impact of this policy shift could far exceed the superficial meaning of "compliance."

Regulation is not the end, but a new starting point for market evolution.

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.

13 Likes

Reward
13
5
Repost
Share

Comment

0/400

CodeAuditQueen

· 3h ago

Basically, it's about bringing the gray areas into the spotlight, and vulnerabilities will be exposed more thoroughly. Institutions need to pass compliance checks before entering the market, and their tech stacks must withstand audits. Only then will we know who truly builds reliably. Wait, does this mean that non-compliant projects are being directly filtered out? What are those projects that only focus on anonymity still playing? Smart contract overflow checks are necessary, and data structure bugs in the tax reporting system can be just as deadly. I wonder how many project audit reports will fail next year.

View OriginalReply0

DefiPlaybook

· 3h ago

According to data, the EU's wave of tax reporting system integration is actually a warning shot — the barriers for traditional financial institutions to enter are indeed decreasing, but the real question is, how many projects can hold out until that day? --- It’s worth noting that the so-called "compliance screening" often results in the clearance of 30-40% of small-cap tokens. This is not just a matter of survival of the fittest; it’s a direct survival pressure test. --- Clarifying rules does not equal accelerated capital inflow; it also depends on the recognition of on-chain risk control models by traditional finance. There is a significant data gap in this area. --- From three perspectives — liquidity, compliance costs, and market expectations — none currently seem certain to move in a positive direction. --- While the improvement of regulatory frameworks is a fact, the assumption that "institutional funds will actively enter" is itself worth questioning; TGE liquidity is still on a downward trend. --- Based on on-chain data, projects affected in the EU account for about 23% of TVL. Those truly waiting for policy dividends are actually the projects that already have filings; others? They might just be collateral damage.

View OriginalReply0

SellTheBounce

· 3h ago

Compliance is here, and the spring for bagholders has arrived. History has shown us that after each policy favorable news, it's the best opportunity to sell. Don't be fooled by the phrase "institutions entering the market"; there are always lower points.

View OriginalReply0

MEVEye

· 3h ago

Another "regulation" is coming, essentially just to push out non-compliant projects.

View OriginalReply0

DegenTherapist