The cryptocurrency industry in 2025 experienced global hacking attacks, accelerated implementation of regulatory legislation, joint crackdowns by multiple Chinese ministries, and a profound restructuring of the industry ecosystem. Under the dual pressure of crisis and regulation, the crypto industry gradually moved away from the gray areas, and new industry boundaries and consensus have been formed. In February, the cryptocurrency exchange Bybit suffered one of the worst thefts in its history. $1.4 billion in assets were stolen by hackers linked to North Korea. This incident made the industry realize that operational risks such as custody security and signature process standardization have become core systemic risks threatening industry stability, and also forced the industry to accelerate the development of security solutions such as multi-party computation and on-chain custody. In April, global tariff conflicts escalated, and Bitcoin, as a risky asset, plummeted, hitting its lowest point of the year. This demonstrates that crypto assets have become deeply integrated into the global financial system, no longer isolated alternatives in traditional markets. Their price fluctuations are closely linked to global liquidity and geopolitical sentiment, and the transmission effects of macroeconomic factors are vividly reflected in the crypto market. In July, the Trump administration signed the GENIUS Act, which for the first time included payment-type stablecoins within the federal regulatory framework, clarifying issuance, reserve, and audit standards, and giving stablecoins a clear legal status. In September, the US SEC approved the universal listing standards for spot crypto ETPs, marking a crucial step in the commoditization and standardization of crypto assets and lowering the entry barrier for institutions. From late summer to autumn, Circle announced its IPO pricing, and Sweden's Klarna launched the stablecoin KlarnaUSD, signifying that stablecoins are upgrading from simple trading tools to global payment and settlement infrastructure. In October, Bitcoin briefly broke through a record high of $125,000, before a sharp correction triggered the liquidation of over $19 billion in leveraged positions. In December, the industry exhibited a trend of "simultaneous integration and tightening": Circle and Ripple received approval to establish or transform into the U.S. National Trust Bank; HashKey listed on the Hong Kong Stock Exchange; and the founder of Terra was sentenced to 15 years in prison for fraud, bringing an end to the previous round of industry chaos through accountability measures. Unlike the "compliance guidance" in some parts of the world, China's regulatory attitude towards virtual currencies has remained firm. In 2025, through the coordinated efforts of multiple ministries, the prohibited boundaries of the industry were further clarified. On November 28, the People's Bank of China, together with 13 departments including the Ministry of Public Security and the Cyberspace Administration of China, held a meeting on the coordination mechanism for combating virtual currency trading and speculation, sending a strong regulatory signal. The meeting reiterated that virtual currency-related business activities are illegal financial activities and do not have the same legal status or legal tender status as fiat currency. It also clearly defined for the first time that stablecoins, a form of virtual currency, have become a risk carrier for illegal activities such as money laundering, fundraising fraud, and illegal cross-border fund transfers because they cannot meet regulatory requirements such as customer identification and anti-money laundering. This definition continues the policy tone of the 2021 notice from ten departments, strengthening risk control in response to the recent surge in speculation using new concepts such as stablecoins and RWA (Real World Assets). The meeting clarified that the actions of overseas exchanges in attracting users to provide services to domestic residents through social media platforms also constitute illegal financial activities, and domestic service providers will be held accountable according to law. On December 5th, seven associations, including the China Internet Finance Association, jointly issued a risk warning. Further efforts are being made to close regulatory loopholes, clarifying that my country has not approved any real-world asset tokenization activities, prohibiting all institutions from engaging in virtual currency-related businesses, and reminding the public to be vigilant against the risks of illegal fundraising and illegal securities issuance, and to safeguard their own property security. Looking back at 2025, the structural transformation of the cryptocurrency industry has been completed. Globally, "compliance" and "risk prevention" have become two parallel themes. Legislative norms in the United States, regulatory consultations in the United Kingdom, and listing pilot programs in Hong Kong have formed differentiated compliance paths in different regions, but a dual-track strategy of encouraging compliance and cracking down on violations has become a consensus. Domestically, the zero-tolerance prohibitive policy continues to deepen, from clarifying the illegality of businesses to full-chain technical monitoring, from cracking down on domestic transactions to preventing cross-border risks, forming a comprehensive regulatory network. In 2025, while the asynchronous nature of global regulation will continue to present challenges, the clarification of industry boundaries is an irreversible trend. Whether it's "compliance access" in the global market or "prohibited red lines" in the Chinese market, the essence is to define rules to ensure that the integration of crypto technology and the financial system remains risk-controlled. In the future, competition in the cryptocurrency industry will no longer be a simple matter of technological iteration, but a comprehensive contest of strength in mechanism design, risk management, and compliance integration. Respect for rules and adherence to boundaries will become prerequisites for survival for all participants.