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Jan 12, 2026From record on-chain volumes to geopolitics-driven crypto crime, 2025 structurally shifted how regulators and institutions engaged with digital assets, with stablecoins at the center.
As crypto markets entered 2026, one theme became increasingly clear: Last year was less about speculation and more about infrastructure, regulation, and real-world use. Across jurisdictions, regulators and institutions moved from theory to implementation, reshaping how digital assets are supervised and used.
A defining feature of this shift was the rise of stablecoins. While Bitcoin
BTC $90,837 continues to dominate crypto market capitalization, stablecoins now account for more than half of all on-chain transaction volumes globally. Their increasing role in payments, remittances, and trading has placed them firmly in the center of regulatory attention, particularly as governments grapple with financial stability and compliance risks.
In this week’s episode of Byte-Sized Insight, Cointelegraph explores how these changes played out in practice, drawing on insights from Matthias Bauer-Langgartner, head of policy for Europe at Chainalysis.
Stablecoins aren’t on the sidelines
Bauer-Langgartner said, “2025 has been a year of stablecoins.”
He began by highlighting that this isn’t particularly new, as their dominance has been building for years. According to Chainalysis data, stablecoins now “clearly dominate the crypto assets landscape with more than 50% of transactional volumes,” even as Bitcoin retains roughly half of total market capitalization.
That growth has made stablecoins attractive for legitimate use cases and for illicit ones.
He added that criminals favor stablecoins because they are liquid, globally accessible, and avoid volatility. Still, that same structure creates enforcement leverage.
“Centralized stablecoin issuers typically have the ability to freeze or even burn stablecoins,” he said, calling it “an extremely powerful tool to combat financial crime.”
Crypto crime turns geopolitical
Beyond individual scams and hacks, 2025 also marked a shift toward state-linked crypto activity.
Bauer-Langgartner said, “2025 has really been, in many, many instances, a record year also for crypto crime.” Chainalysis recorded $154 billion in illicit crypto flows, a 162% increase year-over-year.
In the episode, he also broke down specific sanctioned stablecoins and state-backed networks used for sanctions evasion.
Despite the surge, Bauer-Langgartner said illicit activity still represents a small share of overall usage. “Even with the increase we’ve seen, it’s still under 1% of overall activity,” he said, underscoring the challenge regulators face as adoption accelerates.
He also highlighted Europe’s ongoing implementation of the Markets in Crypto-Assets Regulation and how it, along with other global frameworks, is taking shape and creating a more structured industry.
Listen to the full episode on Cointelegraph’s Podcasts page, Apple Podcasts or Spotify. And remember to check out Cointelegraph’s full lineup of other shows!
view source>> cointelegraph
Developcoins Market View
2025 reshaped the crypto landscape, with stablecoins now accounting for over 50% of on-chain volumes. Their use in payments, trading, and remittances has drawn global regulatory focus, while frameworks like Europe’s MiCA bring structure and compliance. Centralized stablecoins give regulators leverage against illicit activity, keeping crime under 1%. Developcoins monitors these trends to guide strategic positioning in digital assets.