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Japan Tightens Security: Requires Reserves for Crypto Companies
Japan is preparing a new and comprehensive regulatory package to make the cryptocurrency market more secure. The Financial Services Agency (FSA) is working on a draft law requiring cryptocurrency exchanges in the country to establish mandatory liability reserves to protect users. This regulation aims to provide additional protection against losses, particularly those resulting from hacking attacks and operational errors.The FSA's recommendation will be included in the Financial System Council report to be convened on Wednesday. The report is expected to accelerate the regulatory process, and the relevant law is expected to be submitted to parliament during the regular Diet session in 2026.Japan already requires exchanges to hold user assets in cold wallets. However, cold wallet security isn't the solution. In 2024, the local exchange DMM Bitcoin lost approximately $312 million due to a breach involving Tokyo-based software company Ginco. This incident has once again demonstrated that asset custody measures alone are not sufficient. The FSA's new move aims to fill precisely this gap. With the new regulation, crypto exchanges will be required to establish emergency reserves to cover losses incurred by users as a result of potential attacks or technical glitches. The scope, oversight, and size of these reserves will be determined by the FSA. According to officials, the aim is to increase market confidence among both individual investors and institutional players by establishing a more robust trust infrastructure in the sector.Japan Takes Action on Crypto RegulationIn recent months, Japan has taken numerous steps to restructure not only security but also the sector's structure. The FSA announced that it is considering removing crypto assets from the current Payment Services Act and placing them under the Financial Instruments and Exchange Act. If this change is implemented, cryptocurrencies would gain full financial product status, similar to stocks and bonds.Tax reform is also on the agenda. A flat 20% tax rate is planned for digital asset gains. This approach could align crypto income with stock gains, creating a more predictable tax framework for investors.Meanwhile, Japan is also placing strategic importance on the stablecoin market. The country's first yen-backed stablecoin, JPYC, recently launched. New stablecoin projects, including those involving major local banks, are in the testing phase. Regulators believe that fiat-backed stablecoins will become a significant part of future payment systems.This market transformation has also spurred action from asset management companies. According to Nikkei, six major Japanese portfolio managers, including Mitsubishi UFJ Asset Management and Daiwa Asset Management, are preparing to launch the country's first crypto investment funds.
Critical Meeting on December 15: SEC Will Discuss Cryptocurrencies
The U.S. Securities and Exchange Commission (SEC) is preparing to hold a public roundtable on December 15th to address the growing privacy and financial oversight debates in the crypto sector. The meeting was organized by the SEC's Crypto Task Force and was shaped by the recent rise in privacy concerns among investors. The growing backlash within the crypto community has made it imperative for regulators to conduct a more comprehensive assessment of the issue. Sources close to the SEC state that the discussions will include both industry representatives and commissioners, but no policy recommendations will be made as a result of the meeting. The aim is to clearly outline existing issues and assess risks.Cases and Market Impacts That Spark Privacy DebatesAnalysts note that several critical events in the last two years have resurfaced the privacy issue as a major topic of discussion within the industry. The partial conviction of Tornado Cash developer Roman Storm in June, the prison sentence of Samourai Wallet developer in November, and the sharp increases in the prices of privacy-focused tokens during the same period have drawn the attention of both investors and developers to this area. Meanwhile, Ludlow Institute founder Naomi Brockwell stated on social media that privacy is a key factor in curbing authoritarian tendencies. According to Brockwell, when anti-privacy measures are taken, it threatens not only cryptocurrency but all digital rights.These discussions have revived an issue that stretches back to the very roots of crypto. The primary motivation for modern encryption technologies used in the industry was the secure and free individual communication championed by the early cypherpunk movement. Since then, the crypto community has maintained that privacy is a fundamental human right.Crackdown on open-source developers draws backlashLegal processes targeting developers have created significant unrest within the industry. Some legal experts argue that the Storm case and similar cases, where open-source developers are blamed solely for the code they write, sets a dangerous precedent. Critics argue that this approach could undermine the foundation of the open-source ecosystem.Bitcoin-supporting journalist Lola Leetz is also among those highlighting the issue. Leetz described blaming open-source developers as illogical, like "accusing the manufacturer of a tool of conspiracy because it was used in a crime." He argued that people should not be held responsible for how others use their tools.As the debate escalated, the Department of Justice released a striking statement. Matthew Galeotti, a member of the Department's Criminal Division, stated in August that prosecutions targeting developers simply for writing code had been halted. According to Galeotti, the creation of software without malicious intent cannot be criminalized; the department's purpose is not to regulate, but to inform developers about what actions could constitute crimes.Industry Focuses on December 15th MeetingThe upcoming SEC meeting is seen as a critical juncture in how the discussions will unfold. The session will discuss all recent cases, privacy tools, financial surveillance methods, and market impacts. Commissioner Hester Peirce (known as "Crypto Mom" in the crypto community) stated that the scope of the discussions will be broad and that they aim to directly listen to the industry's concerns. As discussions continue regarding the future of privacy-focused tools, the December 15th meeting looks set to be a critical meeting point for developers, investors, and regulators alike.
Historic Step from a US State: Bitcoin-Collateralized Municipal Bond
New Hampshire has approved the first Bitcoin-backed municipal bond in the US, marking a new chapter in the integration of crypto assets with traditional finance. The state's business support agency, the New Hampshire Business Finance Authority (BFA), greenlit a $100 million Bitcoin-backed conduit bond on November 17. This move is seen as a milestone that could enable the entry of digital assets into the $140 trillion global debt market.The approved structure allows companies to use overcollateralized Bitcoin held in private custody as debt instruments. Bitcoin assets will be held by BitGo, and investor protection will be provided entirely through this collateral. BFA acts solely as an intermediary, managing and approving the process; no government or taxpayers bear any risk.Wave Digital Assets and Rosemawr Management, a municipal bond specialist, are behind this financial innovation. The product is designed to align with the traditional framework governing municipal and corporate bonds. Wave co-founder Les Borsai states that their goal is to "combine traditional fixed-income markets and digital assets in a fully institutional and scalable model."The state government considers this step a strategic initiative. New Hampshire Governor Kelly Ayotte described this Bitcoin-backed bond as a "historic innovation" and highlighted the state's pioneering role in embracing technology. According to Ayotte, this model will open new investment channels without risking the state budget.How does Bitcoin collateral work?The mechanism of Bitcoin collateral is also noteworthy. According to the structure, borrowers must deposit approximately 160% of the bond value in Bitcoin as collateral. If Bitcoin's value falls below 130%, an automatic liquidation mechanism is activated, guaranteeing full repayment of bond investors. This model allows borrowing institutions to access capital without selling Bitcoin or incurring tax liabilities. BFA Director James Key-Wallace announced that the fees and potential collateral gains from these transactions will support entrepreneurship and job growth in the state through a new fund called the "Bitcoin Economic Development Fund." This aims to create a circular financial ecosystem that will create value for both the public and private sectors.This initiative follows the first US state legislature allowing the state treasury to invest in Bitcoin. Earlier this year, New Hampshire legalized the investment of up to 5% of public funds in digital assets, becoming the country's first "strategic Bitcoin reserve."According to experts, if this model proves successful, other states are likely to pursue similar Bitcoin-backed debt instruments. This move could set a precedent for the integration of crypto assets into mainstream financial infrastructure, particularly considering the $58.2 trillion US bond market.
Japan's Major Crypto Reform: 105 Coins in Question
Japan is preparing for a radical transformation in cryptocurrency regulations, a policy it has approached cautiously for years. The country's Financial Services Agency (FSA) has completed a comprehensive reform package that plans to classify 105 crypto assets as "financial products." This step is part of a strategic transformation aimed at both strengthening investor protection and re-establishing the country as a Web3 hub.Cryptocurrency Regulation in Japan: ActivityAccording to local sources, the FSA envisions the inclusion of these 105 crypto assets under the Financial Products and Exchange Act. This group includes assets such as Bitcoin, Ethereum, and the Shiba Inu, recently added to Japan's "Green List." The new classification imposes mandatory transparency obligations on exchanges. For each token, exchanges will be required to clearly disclose the issuer, blockchain technology, volatility level, and key technical specifications.The FSA does not want regulations to be limited to transparency and information sharing. The draft package proposes new sanctions for insider trading in crypto assets. Accordingly, those with access to non-public information, such as a token listing schedule, delisting decision, or the financial status of crypto companies, will not be able to trade in these assets. This step represents an adaptation of rules that have been in place in traditional markets for years to crypto.The second leg of the reform directly concerns investors. In Japan, crypto gains are currently taxed under the "miscellaneous income" category, with the rate reaching as high as 55 percent for higher-income brackets. The FSA is preparing to radically change this situation. If the proposal is passed, the tax rate for 105 approved crypto assets will be reduced to 20 percent, similar to that for stock gains. This will both provide relief for individual investors and make the country a more attractive hub for regional competition.The tax reform is expected to be evaluated in the next fiscal year. Legal changes are planned to be discussed during the regular parliamentary session in 2026.All these steps are considered one of the biggest policy shifts in Japan's approach to cryptocurrencies in years. Following the Mt. Gox collapse, the country was long associated with strict regulations; However, over the past two years, the government and the FSA have been actively working to strengthen the Web3 ecosystem. Last month, it was revealed that regulations that could allow banks to hold crypto assets like Bitcoin for investment purposes were being reviewed. Furthermore, the country's first yen-backed stablecoin, JPYC, officially launched at the end of October.The new approach, which elevates crypto to financial product status, offers clearer rules and stronger oversight for both local exchanges and institutional investors. The combination of investor protection and lower tax rates could pave the way for Japan to once again become a strong player in the crypto market.
UK Sets £20,000 Limit on Stablecoins
The Bank of England has announced its long-awaited draft regulation for sterling-denominated stablecoins. The new framework introduces holding limits of £20,000 for individuals and £10 million for businesses. The aim is to prevent sudden shifts of funds from banks to stablecoins amid the proliferation of digital currencies. The regulation also requires stablecoin reserves to be backed by government bonds and central bank accounts.Critical stablecoin development in the UKThe Bank of England (BoE) has released a draft new regulatory framework for sterling-denominated "systemic" stablecoins. This framework includes both collateral rules and temporary asset holding limits.According to the BoE, the new regulation will only cover stablecoins classified as "systemic" by HM Treasury and widely used in payment systems. Supervision for financial stability risks for these assets will be carried out by the Central Bank, while consumer protection and market conduct will be handled by the Financial Conduct Authority (FCA). "Non-systemic" stablecoins, such as USDT and USDC, which are primarily used in cryptocurrency trading, will not be included in this regime. These tokens will remain under the FCA's existing oversight.At the heart of the new framework are clear rules for managing stablecoin reserves. The BoE requires systemic stablecoin issuers to hold 60% of their reserves in short-term UK government bonds and the remaining 40% in interest-free accounts at the Bank of England. This regulation aims to both ensure rapid repayments and maintain public confidence.A more flexible structure is initially envisioned for issuers newly launched or transitioning from the FCA regime; these issuers will be able to hold up to 95% of their reserves in government bonds. The BoE is also considering central bank liquidity support for periods of market stress.Individual and institutional holding limits are also being introduced to prevent rapid outflows of funds from the financial system into digital currencies. Under the proposed plan, individuals will be able to hold a maximum of £20,000 (approximately $26,000) in systemic stablecoins, while businesses will be able to hold up to £10 million (approximately $13 million). While exceptions will be granted for the largest institutions, these limits will remain in place until the risks of the transition period are resolved.“Today’s proposals are a significant milestone in the UK’s path to implementing the stablecoin regime next year. Our aim is to protect confidence in money while supporting innovation,” said Sarah Breeden, the bank’s Deputy Head of Financial Stability. Breeden added that market feedback has been taken into account and that adjustments have been made accordingly to how stablecoin issuers interact with the central bank.However, the proposed limits have been met with criticism from the crypto community. Industry representatives argue that these restrictions are “overly cautious.” Tom Duff Gordon, Vice President of International Policy at Coinbase, told the Financial Times, “Capturing stablecoins is a negative step for both British savers and the City of London.” Breeden, responding to criticism, reminded the public that the UK's credit system differs from the US: "The majority of mortgages in the UK are provided by commercial banks. Therefore, temporary limits are necessary to prevent rapid deposit outflows."The BoE announced that the consultation period will last until February 10, 2026, after which it will publish detailed implementation guidance in conjunction with the FCA.
Big Step from CFTC: Leveraged Crypto Trading is on the Way
The US is on the cusp of a new era in crypto markets. Caroline Pham, the interim chair of the Commodity Futures Trading Commission (CFTC), announced that legislation is underway to authorize leveraged spot crypto trading. If implemented, investors will be able to trade spot crypto with leverage on regulated platforms within the US for the first time. This move could bring liquidity, which has long been diverted to offshore exchanges, back to the US and pave the way for the country to gain a more active position in the crypto markets.Critical crypto move in the USCaroline Pham, the interim chair of the US Commodity Futures Trading Commission (CFTC), confirmed that they are preparing to authorize leveraged spot crypto trading nationwide. Pham stated that they are in discussions with regulated US-based exchanges and that the first leveraged spot products could launch next month. In a post on X, Pham officially confirmed the process, saying, "We are working towards allowing leveraged spot crypto trading in the US." She also noted that despite the partial government shutdown, discussions with industry representatives are ongoing. The CFTC is reportedly considering issuing guidance for these products.This development follows the CFTC's "spot cryptoasset contracts" initiative launched in August. This initiative aimed to gather public input on rules for retail commodity transactions conducted with collateral or financing. According to Federal Register data, "leveraged or secured retail commodity transactions" fall under the CFTC's jurisdiction as long as delivery is not made within 28 days. This means that leveraged spot trading is legal in the US only for certain periods and under certain conditions.According to CoinDesk, Pham is currently in direct talks with large CFTC-registered financial institutions and crypto-focused platforms. These institutions include major players like CME, Cboe Futures Exchange, and ICE Futures, as well as Coinbase Derivatives, Kalshi, and Polymarket US. The focus of the discussions is on the creation of new spot crypto trading infrastructures that include leverage, margin, and financing. This will allow investors to access instruments previously only available on overseas exchanges through regulated US markets.Pham emphasized that this process aligns with the recommendations of the Presidential Working Group on Digital Assets. According to these recommendations, institutions should use their existing legal authority to regulate digital asset markets while Congress drafts new legislation. "We are swiftly utilizing our existing authority while continuing to work with Congress on regulatory clarity," Pham said.If the plan goes through, the US will become the first major economy to allow leveraged spot crypto trading within its borders. This step could increase both transparency and investor protection, but it could also lead to a significant repatriation of liquidity from overseas markets to the US. Leveraged spot trading in a regulated environment could accelerate the integration of digital assets into the US financial system by increasing the participation of institutional investors.
Canada's Stablecoin Move: The Digital Dollar Era Begins
Canada included a new bill to regulate stablecoins in its 2025 federal budget. The government aims to create a comprehensive framework for the secure, transparent, and consumer-friendly market entry of digital assets pegged to fiat currencies like the dollar.Canada Takes Action on StablecoinsAccording to the budget document, the new law will require stablecoin issuers to meet specific reserve standards, establish repayment policies, and establish risk management frameworks. It will also introduce additional measures to protect users' personal information and ensure the integrity of the system for national security. The document states, "This regulation will ensure the safe use of fiat-based stablecoins for both consumers and businesses."With the enactment of the law, the Bank of Canada will be allocated a total budget of $10 million between 2026 and 2028 to manage this process. In subsequent years, regulatory costs will be covered by fees charged to stablecoin issuers. The government is also preparing amendments to the Retail Payment Activities Act to include payment service providers using stablecoins. This step aims to oversee digital payments and blockchain-based financial services under the same umbrella.The Canadian Ministry of Finance and other agencies have reportedly held intensive discussions with industry representatives in recent weeks, particularly on how stablecoins will be classified and how to prevent potential capital flight to US dollar-backed tokens. However, details regarding the government's final stance on this matter have not yet been released.The new regulation aims to encourage safe innovation in the digital asset ecosystem and ensure that the stablecoin market develops in line with the Canadian economy. This is expected to ensure that both individuals and businesses can safely access digital payment instruments.Canada's move is part of a global movement towards stablecoin regulations. The US passed the GENIUS Act in July, which introduces comprehensive rules for dollar-backed cryptocurrencies. The European Union's MiCA regulation is already in effect. Japan and South Korea are also working on similar legal frameworks. According to market data, the global stablecoin supply stood at approximately $291 billion as of November 4, largely comprised of US dollar-backed tokens. Standard Chartered estimates that up to $1 trillion in deposits in developing countries could shift to US-backed stablecoins by 2028.
Trump Picks Fed Chair: Crypto-Friendly Names in the Race
Major change is imminent at the US Federal Reserve (Fed). The Donald Trump administration has selected five candidates for the new Fed Chair, replacing current Chairman Jerome Powell. Treasury Secretary Scott Bessent announced that the shortlist will be presented to Trump immediately after Thanksgiving, with the final decision to be announced before the end of the year. This development suggests that the central bank's direction could change significantly in 2026.Who are among the Fed Chair candidates?The list includes Christopher Waller, Michelle Bowman, Kevin Warsh, Kevin Hassett, and Rick Rieder. These names include both current Fed members and experienced economists from the private sector. Given Trump's criticism of Powell for being "slow on interest rate cuts," the new chair is expected to lean toward a pro-growth and more aggressive monetary policy.Christopher Waller is one of the most notable names on the list. Appointed to the Fed Board by Trump in 2020, Waller has consistently advocated for swifter action on interest rate cuts. Waller, who describes Bitcoin as "electronic gold," believes stablecoins can increase competition in the financial system. He recently stated that crypto companies should be given direct access to the Fed's payment infrastructure. He believes digital assets are now an integral part of the financial system.Michelle Bowman, the Fed's deputy chair for oversight, is known for her cautious yet open-minded approach to crypto. Bowman argued that regulators should not be "overly cautious" and that it would be beneficial for Fed employees to experience digital assets in small amounts. She emphasized the importance of firsthand experience, saying, "I wouldn't want to take lessons from someone who's never skied." The crypto community has responded quite favorably to this approach.Former Fed governor and Bush-era advisor Kevin Warsh is a more cautious member of the list. Although Warsh invested in crypto startups like Bitwise years ago, he disagrees with the idea that Bitcoin can replace the dollar. In a 2018 article published in the Wall Street Journal, he stated, “Bitcoin’s volatility makes it less of a reliable means of payment.” Despite this, his interest in central bank digital currencies (CBDCs) could lead to conflicting views within the Trump administration.Trump’s former economic advisor, Kevin Hassett, is notable for both his loyalty and his crypto investments. Hassett, a Coinbase shareholder, is expected to pursue a crypto-friendly policy. He was also in the news recently for his comments during the government shutdown debate.The final name of the five, Rick Rieder, is a Wall Street heavyweight. Rieder, who served as head of global fixed-income securities at BlackRock, played an indirect role in the rise of Bitcoin ETFs. He has previously stated that he sees Bitcoin as a portfolio diversifier and a hedge against inflation. However, he remains distant from the idea that digital assets can “solve the world’s monetary problems.”Trump’s choice to replace Powell could also determine the direction of the crypto markets. According to experts, a dovish (low-interest) candidate like Waller or Hassett could boost Bitcoin and altcoin prices by increasing liquidity. Conversely, a candidate focused on preserving market balance, like Rieder, could create a more cautious atmosphere.
$1.7 Trillion Giant's Crypto ETF Application: Many Altcoins at Stake
T. RowePrice, a traditional investment firm with approximately $1.77 trillion in asset management, has filed paperwork with the SEC for its first cryptocurrency-focused exchange-traded fund (ETF).T. Rowe, which manages $1.7 trillion, has made a move for cryptoAccording to the filing, the firm has filed an S-1 registration statement with the U.S. Securities and Exchange Commission (SEC) under the name "TROW Active Crypto ETF." This fund is notable for its actively managed structure; instead of passively tracking a specific index, the management team will be able to make selections based on market conditions. The filing includes the following: The fund will invest in eligible crypto assets; the number of these assets will normally be between 5 and 15, but this number can be increased or decreased as needed. Potential assets include Bitcoin, Ethereum, Solana, XRP, Cardano, Avalanche, Dogecoin, Shiba Inu, Litecoin, and Polkadot. Management has also stated that this fund aims to exceed the FTSECryptoUSListedIndex index annually.This is significant for the company. The move into crypto by an institution founded in 1937 and specialized in mutual funds for many years is considered a milestone. Analyst Nate Geraci described this move as a "surprise from outside the field," as traditional asset managers were still perceived as cautious on the crypto side.This development indicates a shift in the balance of power in the asset management world. Traditional investment giants are now seeking ways to become a part of the crypto market rather than shying away from it. As analyst Nate Geraci put it, "Waiting for crypto to disappear is not a strategy."However, the application's approval process faces a hurdle. Due to the US government shutdown, the Securities and Exchange Commission has limited resources, delaying the processing of new crypto ETF applications. In this case, the process is expected to reopen to allow T. Rowe Price's application to be processed quickly. To summarize, this application represents a significant opportunity for both the institution and its investors. It's a critical step for the institution in diversifying its asset management portfolio. For investors, as with most crypto ETFs, it offers the potential to access crypto through a regulated institution. However, there are some important points to consider: the volatility of crypto assets can be much higher than traditional assets, and active management strategies may not always be successful. Once the application is approved, details such as fee levels, portfolio structure, and risk management should be presented to investors.
UK Strikes HTX: FCA Files Lawsuit Against Crypto Exchange
The UK's financial regulator, the Financial Conduct Authority (FCA), has filed a lawsuit against crypto exchange HTX (formerly Huobi) in London's High Court. The agency alleges that the exchange engaged in illegal crypto promotions aimed at UK investors and violated financial promotion rules.FCA Strikes HTXThe FCA stated that the lawsuit is "part of its efforts to protect consumers and maintain the integrity of UK financial markets." The agency has previously issued warnings to UK consumers about HTX, stating that the platform operates without legal authorization.HTX is known to be linked to Tron founder Justin Sun. Sun is among the exchange's advisors and is also known as one of the largest holders of TRUMP, the official meme coin associated with US President Donald Trump. However, the FCA did not disclose whether Sun is named as a defendant in the case file. HTX did not respond to questions about the case.The FCA's lawsuit is the latest example of the UK's strict regulatory approach to the crypto market. In recent years, the country has been expanding its "financial promotion regime" to regulate the advertising and promotion of crypto platforms. The FCA has taken a particularly harsh stance against foreign-based exchanges providing unauthorized access to UK citizens.Last year, Binance similarly came under the FCA's radar, and its promotional activities were halted. Experts believe that the FCA's new case against HTX demonstrates the UK's continued policy of "fighting unlicensed crypto services."Financial regulators emphasize the high risk of crypto investments. In a public warning last year, the FCA emphasized that "the vast majority of crypto products are unregulated" and that investors' losses are not covered by the government.Meanwhile, the UK government aims to establish a regulated framework for cryptocurrency in the long term, rather than banning it entirely. Official exchange-traded products (ETPs) have been approved, allowing crypto assets like Bitcoin and Ethereum to be traded. The government also plans to appoint a "digital markets ambassador" to support the crypto market. The HTX case is seen as a key test of how regulations will be implemented during this transition period. If the FCA wins, it could set a precedent for other platforms operating unlicensed cryptocurrency promotions in the UK market. As for the market, no significant impact has been observed so far. With Bitcoin hovering around $108,000, investors are awaiting how the FCA's decision will impact HTX's UK operations.
Strategic Move from Russia: Foreign Trade Begins with Crypto
In Russia, cryptocurrencies are being legalized for use in foreign trade. The Russian Ministry of Finance and the Central Bank announced in a joint statement on October 21, 2025, that they had agreed on a regulation for the use of cryptocurrencies in international trade payments.Russia Takes Cryptocurrency StepFinance Minister Anton Siluanov stated that the regulation will legalize the cryptocurrency space, legalize activities, and strengthen control mechanisms. He said, "We believe this field should be legalized and legal regulations should be introduced for activities. This way, together with Rosfinmonitoring (the Russian Federal Financial Monitoring Service, the country's anti-money laundering and counter-terrorism financing agency) and control services, we will be able to maintain order in this area."The new regulation marks a significant shift in Russia's financial and foreign trade strategy. Cryptocurrencies will now be accepted as an alternative to traditional payment channels, and the regulatory framework aims to keep this market under control. According to Siluanov, the relevant infrastructure will be under state supervision, and certain criteria will be implemented for investors. However, in Russia, this move is seen not only as a financial regulation measure but also as part of a strategy shaped by international sanctions. Moscow, which has long been the target of various sanctions, is notably using cryptocurrencies as an "alternative payment tool." Research suggests that Russia is turning to crypto and other systematic payment models to reduce its reliance on traditional currencies like the dollar and euro in its foreign trade.Market and crypto impactsThis step has the potential to indirectly impact the trading volume of major crypto assets, particularly Bitcoin and Ethereum. The increased use of cryptocurrencies in international payments could alter liquidity channels. Meanwhile, increased regulatory oversight could both increase investor confidence and create new risks.Russia has been known to have a cautious approach to cryptocurrencies for years. However, it was recently reported that there were pilot projects involving crypto in foreign trade channels. Now, this practice will be supported by legal regulation.According to the draft law that has entered into force, for cryptocurrencies to be used in foreign trade:Operations must be conducted through a state-controlled system; Participating companies and investors must meet established criteria;Anti-money laundering (AML) and know-your-customer (KYC) mechanisms must be strengthened.Furthermore, Russia is not an environment where cryptocurrency activities are completely free; companies and transactions covered by the regulation will be subject to strict oversight. This presents a scenario where risks and opportunities must be evaluated together.This shift by Russia reflects its tendency to move away from traditional channels of the global financial system and toward alternative payment methods. As is well known, sanctions have restricted the country's access to financial systems it opposes. Under these circumstances, cryptocurrencies become an option that can provide flexibility in trade and payments.
Historic Step from Hong Kong: First Solana ETF Approved
The Hong Kong Securities and Futures Commission (SFC) has approved Asia's first spot ETF for Solana (SOL). This step marks the country's third crypto spot ETF, following the Bitcoin and Ethereum ETFs.Good news for Solana from Hong KongThe fund, managed by China Asset Management (Hong Kong), will begin trading on October 27. According to the Hong Kong Economic Times, the ETF will be listed on the OSL Exchange, with custody and clearing handled by OSL Digital Securities. Each trading unit will contain 100 shares, and the minimum investment will be approximately $100 (approximately HK$780).The new product is the first Solana fund to be approved, following the Bitcoin and Ethereum spot ETFs. ChinaAMC thus becomes the first manager to simultaneously launch a SOL-based fund in Asia and the US. The fund's management fee is set at 0.99 percent, while custody and administrative expenses are capped at 1 percent of total net asset value. The total annual expense ratio will be 1.99 percent. The ETF is not expected to distribute dividends to investors.Solana ranks sixth in the crypto market with a market capitalization of approximately $100.8 billion. SOL, trailing Bitcoin, Ethereum, Tether, Binance Coin, and Ripple, is ahead of USDC. According to the China AMC, SOL is used as the native token of a decentralized, open-source network; its value is not backed by any institution but is determined entirely by the balance of supply and demand.With this move, Hong Kong's city government provides greater access to the crypto asset market for individual investors. Investors can invest in the Solana ETF with small inflows. This is in line with Hong Kong's vision of a "regulated yet accessible" crypto market.Solana ETFs are also gaining momentum globally. The Solana Spot ETF, offered by 21Shares in the US, was approved by the Securities and Exchange Commission (SEC) earlier this month. The product offers direct access to Solana's spot price and supports staking features, potentially spurring institutional demand.Major fund managers such as VanEck, Bitwise, Grayscale, Franklin Templeton, Fidelity, and CoinShares have also received approval for similar Solana ETF applications. This strengthens Solana's position in the institutional investment ecosystem.While Solana has performed less favorably than Bitcoin and Ethereum since the beginning of the year, growing ETF interest and a succession of regulatory approvals have re-entered investor attention. Price momentum is expected to revive in the last quarter of 2025, driven by Solana's ETF approvals. At the time of writing, the SOL price is down slightly by 0.7 percent, around $184.
Fed Meets Tomorrow: Bitcoin and Stablecoins on the Agenda
The US Federal Reserve (Fed) will hold a "Payments Innovation Conference" on October 21st to discuss the future of new technologies in the payments field. The event will discuss Bitcoin, stablecoins, and blockchain-based payment systems. This development is considered a significant turning point in the US approach to the role of digital assets within the financial system.Fed Discusses CryptocurrenciesAccording to a statement released by the Fed on September 3rd, the conference will bring together regulators, financial institutions, and technology experts on October 21st. The main themes of the event will be the intersection of traditional and decentralized finance, stablecoin use cases, the impact of artificial intelligence on payments, and the tokenization of financial products. Fed official Christopher J. Waller, who will speak at the conference's opening, said, "Innovation in payments has always existed to meet the changing needs of consumers and businesses. Now is the time to examine the opportunities and challenges of these technologies together." This statement signals a shift in the US Federal Reserve's tone toward digital assets, which it has long distanced from. Until now, Bitcoin and stablecoins were largely viewed as speculative investment instruments or elements posing regulatory risks. However, the Fed's decision to address these assets in conjunction with the future of the financial system at an official event is being interpreted as a paradigmatic shift. Clarifying the regulatory framework for the use of stablecoins in payments could pave the way for new opportunities for both financial institutions and technology companies.The crypto community sees this step by the Fed as a hope that, in the long term, digital assets will gain a more institutional footing in the US financial system. The event's agenda is not limited to cryptocurrencies. Tokenization, AI-powered payment systems, and decentralized financial infrastructures will also be among the topics to be discussed. Experts believe these issues could pave the way for the Fed's future steps in the field of digital currencies and payments. The implications regarding the oversight of stablecoins and their role in interbank payments are particularly significant for the sector. Immediately following this meeting, the Federal Open Market Committee (FOMC) meeting, scheduled for October 28-29, will be closely watched by markets. Economists predict the Fed may consider cutting interest rates at this meeting. Chairman Jerome Powell stated last month that the bank has shifted to a "more neutral policy stance." However, there is still no consensus among members on the interest rate range encompassed by "neutral."This softening of the Fed's stance on cryptocurrencies could be a turning point in terms of both regulatory clarity and institutional participation. The official discussion of Bitcoin and stablecoins within payment systems is seen as a signal that a new chapter may be opening in US policies toward digital assets.
Wednesday's Crypto Summit in Washington: 10 High-Level Figures Heading to Senate
Washington will be the heart of the crypto world this week. Executives from Coinbase, Chainlink, Circle, Ripple, Uniswap, and many other giants will sit down with Senate Democrats. The agenda is clear: defusing the political tensions that have escalated over DeFi regulation and shaping the laws that will determine the future of the crypto market.A major cryptocurrency meeting will be held in the US: All eyes are on October 22nd.The tension between the crypto industry and politics in the US is entering a new phase. Executives from leading crypto companies will meet with Senate Democrats this week to discuss market structure legislation. It's also noteworthy that the meeting follows the leak of a controversial draft regulation for DeFi (decentralized finance).According to Fox Business correspondent Eleanor Terrett, the meeting will be chaired by Senator Kirsten Gillibrand on Wednesday, October 22nd. Because the meeting is being held on US time, it is likely to be extended to the evening of Turkey time or October 23rd. Gillibrand has long been a proponent of creating a clear and balanced framework for crypto regulations. In 2023, he co-authored the "Responsible Financial Innovation Act" with Republican Senator Cynthia Lummis and spearheaded the GENIUS Act, a bill designed for the stablecoin market.Who is attending the meeting?Among those expected to attend are Coinbase CEO Brian Armstrong, Chainlink CEO Sergey Nazarov, Galaxy Digital CEO Mike Novogratz, Kraken CEO David Ripley, Uniswap founder Hayden Adams, Circle Chief Strategy Officer Dante Disparte, Ripple Legal Director Stuart Alderoty, Jito CLO Rebecca Rettig, Solana Policy Institute President Kristin Smith, and Andreessen Horowitz (a16z) Legal Counsel Miles Jennings. The meeting follows the recently leaked proposal, "Preventing Illicit Financing and Regulatory Arbitrage Through Decentralized Finance Platforms," drafted by Democrats in the US Senate. The proposal defines anyone operating in or generating revenue from DeFi protocols as an “intermediary.” It also mandates that all DeFi interfaces and non-custodial wallets require user identity verification (KYC).Another criticism of the proposal is that it grants the Treasury Department the authority to ban any protocol based on “influenced individuals or entities.” Industry representatives likened this provision to a “direct government takeover of the industry.”Jake Chervinsky, legal director of the Blockchain Association, called this approach “unprecedented and unconstitutional.” Cardano founder Charles Hoskinson similarly criticized the Democratic Party for stifling the industry with an overly statist stance.For the crypto industry, this meeting is seen as a significant opportunity to re-establish communication between the legislature and the industry. However, experts believe it is unlikely that a concrete agreement will emerge from the meeting in the short term. The political climate in Washington remains highly polarized, and crypto legislation has become an ideological battleground between the two parties. However, it's hoped that this meeting, led by Gillibrand, could spark new dialogue, particularly regarding the future of the DeFi sector and how regulatory boundaries will be drawn. The industry will be closely watching this crucial meeting on Wednesday.
Japan Greenlights Crypto: Banks' Bitcoin and Altcoin Investments on the Table
The transformation of Japan's cryptocurrency market is accelerating. The country's Financial Services Agency (FSA) is considering new regulation that would allow banks to hold Bitcoin and other similar cryptocurrencies for investment purposes.Groundbreaking regulation in Japan: Banks will be able to invest in cryptocurrenciesAccording to the Japanese newspaper Yomiuri, the Japan Financial Services Agency (FSA) is developing a regulation that would allow banks to buy, sell, and hold Bitcoin and altcoins for investment purposes. The FSA's plan would ease conservative guidelines enacted in 2020 that prohibited banks from acquiring crypto assets. The regulator aims to allow banks to buy and sell cryptocurrencies just like stocks or government bonds with the new system. However, various measures, such as strict capital adequacy rules and risk limits, are also on the agenda to ensure this freedom does not jeopardize financial stability.Discussions within the Financial System Council will determine the direction of the regulation. These discussions are expected to set upper limits on the amount of cryptocurrencies banks can hold on their balance sheets. In this way, regulators aim to balance risk management with innovation.Cryptocurrencies are quite popular in JapanThe popularity of cryptocurrencies in the country is behind Japan's initiatives. The number of individual crypto accounts in the country has surpassed 12 million, a figure that has more than tripled in the last five years. With the FSA's new approach, crypto will be defined as a "legitimate" investment vehicle within the financial system.The FSA is also considering opening the door for banks to register as crypto asset service providers. This will allow traditional banks to hold the same license as exchanges and offer investors a more secure trading environment.Stablecoin initiativeMeanwhile, as reported last week, the stablecoin initiative of three major Japanese banks attracted attention. The three major banks (Mitsubishi UFJ Financial Group (MUFG), Sumitomo Mitsui Financial Group (SMFG), and Mizuho Financial Group) aim to establish a new blockchain-based infrastructure for corporate payments and cross-border transactions. In the first phase, a stablecoin pegged to the yen will be launched, with a dollar-pegged version expected to follow later. The project will operate on a system developed by fintech company Progmat Inc. and ensure interbank compatibility through a common technical standard.The primary use of these stablecoins will be payments between large companies. Mitsubishi Corporation is planned as the first user of the pilot application. Real-world trials are expected to begin before the end of the current fiscal year.Meanwhile, the FSA is taking steps to ensure that digital asset trading is a fair market. The agency is reportedly preparing to propose legal amendments that would explicitly prohibit transactions based on non-public information. Under these regulations, those who violate this prohibition will face fines proportional to the amount of illicit profits.
