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Japan's lower house has moved forward with a bill that would classify crypto assets as financial instruments. The legislation advanced another step on June 10 after receiving approval from the House of Representatives Committee on Finance and Financial Affairs. If it is also approved by the upper house, the House of Councillors, it will take effect in 2027.Under the bill submitted by the government in April, crypto assets would be evaluated under a regulatory framework similar to that applied to stocks. This would mean stricter trading rules for the sector. At the same time, a reduction in the tax rate on crypto gains is also on the table, with the current maximum rate of 55% potentially being replaced by a fixed 20% rate, the same level applied to stocks and bonds.At present, Japan's top financial regulator, the Financial Services Agency (FSA), mainly regulates crypto assets under the Payment Services Act and treats them as a means of payment. The new regulation would fundamentally change this approach. Crypto-related businesses would come under much broader oversight.Crypto Momentum Builds in JapanThe regulatory development comes at a time when Japan's crypto sector is gaining momentum, particularly in the stablecoin space.In 2023, the country clarified its stablecoin framework through amendments to the Payment Services Act. Those changes introduced the concept of "electronic payment instruments" into legislation, allowing registered service providers and banks to issue and manage stablecoins.Following the creation of this regulatory foundation, several industry moves followed. Fintech company JPYC Inc. announced in October 2025 that it had launched JPYC, the first legally recognized yen-based stablecoin. In February 2026, SBI Holdings and Startale Group introduced JPYSC, a trust bank-backed yen stablecoin designed for institutional and cross-border use cases.Japan's three megabanks, MUFG Bank, Mizuho Bank and SMBC, are also planning to begin live commercial transactions within the fiscal year ending in March 2027 with a stablecoin they will jointly issue. SBI Shinsei Bank, according to Nikkei, is also considering launching a crypto rewards program for deposit customers this autumn.Tax Reform: The Step the Sector Has Long AwaitedFrom the perspective of crypto investors, the most concrete impact of this regulatory shift will be felt on the tax side. In Japan, crypto income is currently classified as "miscellaneous income" and is subject to marginal tax rates of up to 55%. This has long been seen as a deterrent for crypto investors in the country.If the new framework is adopted, crypto gains will be subject to the same fixed 20% tax rate applied to stocks and bonds. This change would serve as a major incentive for both retail investors and institutional players looking to include crypto assets in their portfolios.The Global ContextWith this move, Japan is clarifying its own framework at a time when the United States continues to debate whether crypto assets should be treated as securities. Europe’s MiCA regulation has entered into force, while Hong Kong has accelerated its licensing processes. In this context, Japan’s step can be read as a reflection of how regulatory clarity is increasingly becoming a decisive competitive factor for the global crypto sector.The bill will now be submitted to the upper house. If approved, Japan’s crypto regulatory architecture will be significantly reshaped as of 2027.
Russian Deputy Finance Minister Ivan Chebeskov said Russia plans to introduce transaction fees and restrictions on Western-linked cryptocurrencies. Speaking to reporters on June 9 at the St. Petersburg International Economic Forum (SPIEF 2026), Chebeskov said the proposed measures aim to steer Russian investors away from assets considered “unfriendly.”Under the draft framework, Russia would create a system consisting of economic incentives, technical restrictions and recommendation mechanisms. Chebeskov said, “There may be both technical protective measures and various practices such as economic incentives, commissions or recommendations that encourage citizens to hold other assets.”Which cryptocurrencies are being targeted?The draft defines tokens issued by entities under the jurisdiction of countries included in Western sanctions lists as “unfriendly.” The main assets falling under this classification are USDT, USDC and BNB.The common thread is clear: the issuers of these three assets, Tether, Circle and Binance, have previously frozen wallets or restricted access for Russian users at the request of foreign authorities. Russia frames this situation directly as a sovereignty issue.Freedom Global analyst Vladimir Chernov estimates that possible fees could range between 0.5% and 2% for “unfriendly” token transactions, while dollar-linked stablecoins could face fees of up to 3%. Chernov also stressed that excessively high fees could push users toward informal channels.What will retail investors be able to buy?According to statements from Central Bank Deputy Governor Vladimir Chistyukhin, starting July 1, 2026, Russian citizens without qualified investor status will be allowed to trade only three tokens: Bitcoin, Ethereum and USDT.USDC and BNB were excluded from the retail investor list because their issuers can freeze assets at the request of foreign authorities. Tether carries the same risk; in fact, Russian officials initially considered banning USDT entirely. After objections from the industry, that decision was rolled back, but access was left open in a restricted form with new protective mechanisms added.Ruble-linked stablecoins are expected to gain priority for inclusion on the list.Where does the bill stand?The measures announced by Chebeskov have not yet become law. The bill titled “On Digital Currency and Digital Rights” was approved in the first reading in the State Duma on April 21, 2026, by a vote of 327 to 13.The first reading established the basic framework: five licensing categories for crypto operators, broad supervisory powers for the Bank of Russia, the ongoing ban on domestic crypto payments and a clear opening for cross-border crypto swaps used to bypass sanctions.The main points of contention will take shape during the second reading. Anatoly Aksakov, chairman of the Duma Financial Markets Committee, aims to finalize the main framework by July 2026 and bring implementation rules into force by July 2027. The fee structure for unfriendly assets sits at the center of the negotiations.The scale of the numbersAccording to Chainalysis data, Russia processed approximately $376 billion worth of cryptocurrency transactions between July 2024 and June 2025. This was the highest recorded volume across Europe.Legal expert Yuriy Brisov says Russian investors pay around $15 billion in commissions to foreign crypto exchanges every year. The law aims to redirect this revenue to licensed domestic platforms.Another piece of data completes the picture: according to the Bank of Russia’s Financial Stability Report dated June 1, retail crypto investments stood at only 3.8 billion rubles, or roughly $44 million. The deep gap between $376 billion in transaction volume and $44 million in investment size shows that Russia’s crypto weight lies not in domestic portfolios, but in cross-border flows.Two options for foreign exchangesThe regulatory framework directly affects not only individuals, but also international exchanges. Starting in July 2026, foreign platforms without operating permission or a physical office in Russia could be fully blocked. Roskomnadzor is reportedly preparing DNS-level filtering tools similar to those used against YouTube.Binance, which has excluded Russian users from its services, and HTX, which was added to the United Kingdom’s sanctions list last month, are among the platforms facing the most direct pressure. The options are clear: comply with Russia’s licensing rules or lose access to millions of users.
Dozens of leading crypto companies, including Coinbase, Kraken, Uniswap and Andreessen Horowitz, have sent a joint letter to the U.S. Congress calling for legal protections for software developers to be added under the CLARITY Act. The letter argues that developers working on open-source blockchain infrastructure should not face legal liability for illegal actions committed by third parties.The signatories also include Aave, 1inch, Block, BitGo, Aptos Labs, Zcash, Solana Labs, Galaxy Digital, Ledger and Hyperliquid. Point of tension: Developer liabilityThe CLARITY Act, currently being considered in the Senate, aims to clarify the legal status of digital assets and the boundaries of regulatory authority. However, several key issues remain unresolved. The scope of developer protections and whether stablecoins should be allowed to pay interest are among the main points of disagreement in the final stage of negotiations.In their letter, crypto companies raise a concrete concern: those who develop open-source software or build blockchain infrastructure could face excessive legal burdens due to user behavior or third-party misuse beyond their control. According to the industry, this risk seriously weakens the DeFi development environment in the United States.The White House is involvedDiscussions on the issue are not limited to Capitol Hill. According to Fox Business reporter Eleanor Terrett, administration officials met with law enforcement representatives at the White House on Wednesday. The agenda focused on concerns over whether the CLARITY Act could undermine efforts to combat illicit finance.This concern remains one of the biggest obstacles preventing the bill from moving to the Senate floor. Some Democratic senators have made clear that they will not support the bill unless they believe law enforcement concerns have been adequately addressed.The meetings followed a broad industry pressure campaign. That campaign included a public meeting attended by former law enforcement officials and a private event involving crypto industry supporters.What the industry wantsThe core demand in the companies’ letter is clear: blockchain development activity cannot grow in the United States unless legal uncertainty is resolved. If developer protection provisions are included in the bill, the legal risks for those working on open-source DeFi infrastructure would be significantly reduced.Although it remains unclear when the bill will come up for a vote, negotiations in Congress are continuing alongside White House-level discussions and intense lobbying efforts from the industry.
Access to crypto derivatives in the United States has been heavily restricted for years. A large part of global trading activity moved overseas, while U.S. investors were forced to turn to offshore platforms for these products. That picture is now changing.The Commodity Futures Trading Commission (CFTC) has cleared the way for perpetual futures contracts, widely known as “perps,” to be offered domestically. Under the Commission’s latest move, Kalshi and Coinbase will be able to offer these products to users in the United States.What are perpetual futures contracts, and why do they matter?Perpetual futures contracts are derivative instruments that allow investors to take positions based on an asset’s price movement without directly buying the asset itself. Their difference from standard futures contracts is simple: they do not have an expiration date. A position can remain open until the investor decides to close it.This feature has made perps one of the most liquid and widely used products in the crypto derivatives market. However, the vast majority of these trades have taken place on offshore exchanges for years. U.S. users could not access this market.Coinbase CEO Brian Armstrong put the scale of the issue clearly. Until now, U.S. users had no access to roughly 80 percent of the global crypto market. Perpetual futures and options made up a significant part of that 80 percent. Armstrong said, “That is now changing.”What did the CFTC do?The Commission’s Division of Clearing and Risk, Division of Market Oversight and Market Participants Division issued a joint staff advisory on Friday. This advisory is not a formal rulemaking, meaning it does not carry permanent legal status. However, it clearly states that CFTC-registered exchanges may list perpetual futures contracts.In the advisory, Commission staff emphasized that demand for 24/7 trading has increased due to the impact of blockchain technology and decentralized infrastructure. In this environment, the staff’s aim is to explain the risks linked to continuous trading and how existing regulations address those risks. In a sense, the document offers a roadmap to the market.CFTC Chair Brian Quintenz described the decision on X as a historic step. “Today, the CFTC took a historic step enabling a bitcoin perpetual contract to be listed by a CFTC-registered exchange. This decision opens the door for one of the most liquid crypto asset markets to operate within the U.S. regulatory framework,” he said.Green light for Kalshi and CoinbaseThe CFTC authorized KalshiEX LLC to list BTCPERP, a perpetual contract linked to the price of Bitcoin. For Coinbase Financial Markets Inc., the Commission adopted a “no-action” position regarding the company’s plan to offer digital commodity derivatives products.Coinbase’s reaction to the development was openly enthusiastic. Armstrong described it as “a big day for U.S. traders and Coinbase.” What does it mean for the market?The perps market has long been the center of gravity for crypto derivatives. In terms of daily trading volume, it has frequently surpassed the spot market. Most of this volume has flowed through offshore exchanges such as Binance, Bybit and OKX. U.S. users either accessed these platforms through VPNs or missed out on this market entirely.The CFTC’s move creates an opportunity for domestic exchanges operating within a regulated framework to bring this liquidity onto their own platforms. Still, it is important to remember that the decision is advisory in nature and does not represent a formal regulatory change. A new administration or a step at the congressional level could change the picture again. For now, however, the CFTC’s message is clear: the U.S. wants to play a larger role in the crypto derivatives market.
Aave Labs, one of the biggest names in decentralized finance, has cleared an important regulatory threshold in the UK. The company’s UK subsidiaries, Push Labs Ltd. and Push Virtual Assets Ltd., have received registration approval from the Financial Conduct Authority (FCA) as cryptoasset exchange providers.The two companies, both operating under the “Push” brand, are now registered under the UK’s anti-money laundering rules. In addition, the company also holds Electronic Money Institution (EMI) authorization under the Electronic Money Regulations 2011. Together, these approvals give Aave Labs the ability to build end-to-end fiat-to-crypto infrastructure in the UK.For now, the practical goal is clear: allowing users to transfer money directly from their bank accounts to Aave with zero fees, without leaving the app.Aave Labs founder and CEO Stani Kulechov said the FCA EMI authorization and cryptoasset registrations provide the regulatory foundation needed to offer zero-fee on-chain consumer financial products in the UK.A Growing License Map in EuropeThese approvals mark the continuation of Aave Labs’ regulatory expansion across Europe in recent months. In November 2025, the company’s Irish subsidiary received a Crypto-Asset Service Provider license from the Central Bank of Ireland under MiCA. That license gives the company passporting rights across the entire European Economic Area.After Brexit, the UK remained outside the EU framework, which meant a separate license was required. Aave Labs has now completed that step as well. The company is now positioned to operate under regulatory coverage both in continental Europe and in the UK.Aave also remains the largest on-chain lending market by total value locked.Funding, Products, RegulationThe timing of these approvals is also notable. In April, the Aave DAO approved a $25 million grant to the company. Around the same period, development work on Aave V4 and the GHO stablecoin also gained momentum. Taken together, the picture shows Aave Labs following a systematic path beyond its DeFi protocol identity and moving into licensed consumer finance.There is also continued activity on the FCA side. In April, the regulator launched a consultation process on stablecoin issuance rules, trading platforms and custody services. Formal licensing applications are expected to open in September 2026, while the broader framework is expected to come into force in October 2027.Aave Labs has secured its approvals before this timetable is fully finalized. While much of the sector is still waiting in line, the company has already taken its place in the UK.At the time of writing, AAVE was trading at around $82.81.
Paxos subsidiary Paxos Securities Settlement Company (PSSC) has received official registration from the U.S. Securities and Exchange Commission (SEC) as a clearing agency. The company became the first and only blockchain infrastructure firm to receive this approval after a seven-year regulatory process.The registration was granted under Section 17A of the Securities Exchange Act of 1934. With this status, PSSC is authorized to operate as a central securities depository in the United States. The approval is a temporary registration, subject to the company meeting ongoing regulatory requirements.Paxos CEO and co-founder Charles Cascarilla summarized how the company reached this point in his statement: “This registration is the product of a seven-year journey. We began with our No-Action letter in 2019, then launched our pilot program with some of the world’s largest and most sophisticated financial institutions. Most importantly, it gives our partners access to the most comprehensive infrastructure that can continue to evolve alongside the market and blockchain technology.”Pilot program ongoing since 2020Since February 2020, PSSC has been offering clearing and settlement services for U.S. equities under the SEC’s no-action relief. The pilot program was conducted with the participation of “leading global financial institutions.” In 2022, a blockchain-based trial launched in partnership with State Street enabled same-day settlement, or the “T+0” model, for equity trades.Based on the findings from this process, the company argues that blockchain infrastructure offers concrete advantages in both cost and speed compared to traditional post-trade processes.Where traditional finance meets blockchainThis step comes at a time when traditional capital markets and blockchain technology are becoming increasingly intertwined. The Depository Trust & Clearing Corporation (DTCC) also recently announced its own tokenization service with the support of major Wall Street firms. Paxos’ SEC registration stands out because it places this convergence within a concrete regulatory framework.Paxos already has partnerships with major names including PayPal, Interactive Brokers, Mastercard and Mercado Libre. The company also issues PayPal’s PYUSD stablecoin and the Pax Gold (PAXG) token. Last October, due to a technical error, the company accidentally minted 300 trillion PYUSD and then burned the amount. Following that incident, Paxos received conditional approval to become an OCC national trust bank; this status would allow the company to operate under a single federal framework instead of a state-by-state regulatory patchwork.Paxos’ registration is a sign that blockchain infrastructure can no longer be ignored in institutional finance. Seven years of negotiations with the SEC and pilot programs may serve as a reference point not only for Paxos, but also for other companies trying to move forward in this field. Moving infrastructure layers such as clearing and settlement onto blockchain has mostly remained a theoretical debate until now. PSSC’s official registration brings that discussion onto a real regulatory footing.
The New York State Department of Financial Services (NYDFS) has approved a BitLicense for Mastercard, granting the company authorization to conduct digital asset activities. The license is valid under one of the strictest crypto regulatory regimes in the United States.The company announced on Wednesday that Mastercard Transaction Services (U.S.) LLC had received the license. The move aligns with Mastercard’s broader strategy around blockchain-based payment and settlement infrastructure.Companies have been subject to BitLicense rules since 2015New York introduced the BitLicense framework in 2015, imposing strict standards on crypto companies in areas such as capital requirements, cybersecurity, compliance, and consumer protection. Licensed firms are also required to operate under the ongoing supervision of NYDFS.Although the framework has drawn criticism from the industry due to high compliance costs and lengthy approval processes, supporters argue that it provides institutional players with a clear foundation for operating digital asset businesses.With this decision, Mastercard joins a relatively short list of companies that have received the license recently. Crypto financial services firm Galaxy obtained a BitLicense earlier this month, while Bitcoin payments app Strike received approval in March. Since the regime was launched, around two dozen companies have been granted approval for virtual currency licenses.Mastercard Chief Product Officer Jorn Lambert commented on the development, saying: “Clear regulatory frameworks play a critical role in building trust as new forms of digital value move from experimentation to practical application.”Mastercard’s push into stablecoin infrastructure has taken concrete shape in recent months. In March, the company agreed to acquire stablecoin payments firm BVNK for $1.8 billion. Analysts interpreted the deal as a sign that stablecoins are no longer a niche crypto product, but are increasingly becoming part of mainstream financial infrastructure.These digital tokens, pegged to fiat currencies such as the U.S. dollar, are being used more widely in cross-border payments, treasury management, and institutional settlement. Blockchain transfers can take place around the clock and, in many cases, are completed much faster than transactions through the traditional banking system.Mastercard said the BitLicense approval supports its strategy for digital currencies, including stablecoins and tokenized deposits. The company emphasized that it will maintain the compliance and operational standards adopted across its global payment network.Investment by major payment networks in blockchain infrastructure is part of a broader transformation across the sector. Traditional banking and blockchain-based payment systems are beginning to take shape not as competing structures, but as parts of an interconnected ecosystem. With this move, Mastercard has positioned itself among the institutions moving early in that transformation.
Italy-based Banca Sella announced that it has completed the mandatory notification process with the country’s central bank, Banca d’Italia. With this step, the bank became the first bank in Italy to gain a legal basis for offering cryptocurrency services. The group plans to open digital asset custody and transfer services to certain customer segments by the end of 2026.Active by year-endAccording to Banca Sella’s statement, the bank aims to launch digital asset custody and transfer services within this year. While these services will only be offered to specific customer categories, the bank also signaled that it does not plan to limit its crypto offering to these two products.Andrea Tessera, the group’s Head of Digital Banking, commented on the development as follows: The shift toward instant, interoperable, and programmable payment models, together with the tokenization of money and assets, is radically transforming financial infrastructure in Europe and globally. Banca Sella’s new services are positioned directly within this transformation.The bank is not taking this step from scratch. The group has long been investing in both technological infrastructure and human resources in the fields of distributed ledger technology, blockchain, and digital assets. Since 2022, the bank has participated in pilot programs run under Banca d’Italia’s Fintech Milano Hub. It is also among the founding members of the Qivalis consortium, which brings together 37 European banks and aims to launch a euro-pegged stablecoin.A milestone for MiCA complianceThe completion of the notification submitted to Banca d’Italia places Banca Sella in the position of Italy’s first bank that can begin offering services under Europe’s crypto regulatory framework, MiCA. MiCA stands out as a comprehensive EU regulation covering crypto assets and industry participants.The group’s focus is not limited to its current services. Banca Sella says it is also closely monitoring other developments in tokenization, especially the Pontes and Appia projects carried out under the Eurosystem with coordination from the European Central Bank.Europe ahead of the USThis picture once again highlights the regulatory gap between Europe and the United States. Apart from some exceptions in the investment banking segment, much of the US banking sector is still waiting for comprehensive legislation that would clarify the limits and opportunities in crypto. The Clarity Act remains stalled in Congress without making progress, and serious questions remain over whether it will become law this year.By contrast, Europe has paved the way for banks to enter crypto services by implementing a comprehensive and functioning regulatory framework such as MiCA. Banca Sella’s move is a concrete example of how this framework is being received in the traditional finance world.
The European Central Bank opposed a proposal to give euro stablecoin issuers access to ECB liquidity during an informal EU meeting in Cyprus. According to Reuters, which cited three sources, ECB President Christine Lagarde and other central bankers directly rejected the idea.The proposal came from the Brussels-based think tank Bruegel. A policy note signed by Lucrezia Reichlin, Bo Sangers and Jeromin Zettelmeyer was discussed during the two-day meeting of EU finance ministers and central bank governors in Cyprus. The authors argued that more flexible rules and ECB backing were necessary for the euro stablecoin market to emerge from the shadow of dollar-denominated tokens.Lagarde and the officials accompanying her did not support this approach. They stressed that if stablecoin issuers were to withdraw large-scale deposits from European banks, banks’ funding costs could rise and credit supply could decline. Several officials also opposed the idea of turning the ECB into a structure that provides guarantees for stablecoin firms; such a role has traditionally been reserved only for supervised banks. Finance ministers, meanwhile, reportedly failed to reach a consensus.Lagarde’s stance was not particularly surprising. A few days earlier, speaking at a Banco de España forum, the ECB president had said that “the case for promoting euro-denominated stablecoins is much weaker than it appears.” Lagarde has made it clear that she prefers tokenized commercial bank deposits and the ECB’s wholesale payment projects, Pontes and Appia. She wants private stablecoin issuers to remain outside the central bank’s protective perimeter.“Digital Dollarization” DebateBruegel approached the issue from a competition perspective. The think tank warned that if EU rules remain heavier than the GENIUS Act, which came into force in the United States in July 2025, both issuance and trading activity could move offshore. It described the possible result as “digital dollarization.”Central bankers at the meeting did not give much weight to this warning. Instead, they argued that redemption restrictions should apply to all stablecoins, regardless of origin. Their reasoning was clear: without such a safeguard, European branches could face serious liquidity pressure if foreign investors tried to redeem reserves en masse.As this debate continues, the European Commission is reviewing the Markets in Crypto-Assets Regulation, known as MiCA, which has been in force since 2024. MiCA requires stablecoin issuers to keep a large share of their reserves in bank deposits and liquid assets. The U.S. framework contains lighter requirements; supporters describe this approach as a strategy to preserve dollar dominance through regulated tokens.Banks Are Moving AheadWhile the regulatory debate remains unresolved, private issuers are not staying on the sidelines. The Amsterdam-based Qivalis consortium has brought together 37 banks from 15 countries and aims to launch a MiCA-compliant euro stablecoin in the second half of 2025. ABN Amro, Rabobank, Nordea and Intesa Sanpaolo recently joined the founding partners, which already included BNP Paribas, ING, UniCredit, CaixaBank and Danske Bank. Reuters also framed Societe Generale’s earlier, smaller-scale steps within this broader trend.Bruegel’s research, based on Artemis data, shows that global stablecoin supply increased by roughly one-third in 2025, reaching $300 billion. Euro-denominated tokens account for only 0.3% of that total; the largest player is Circle’s EURC. Still, stablecoin transactions based in Europe made up 38% of global volume in the final quarter of 2025, a striking figure when compared with their market share.Digital Euro Remains on the AgendaThe ECB continues to work on the digital euro with a 2029 target. At the Nicosia meeting, EU finance ministers confirmed that the project would move forward. European banks had previously kept their distance from a retail CBDC, arguing that it could drain deposits from the banking system. The concerns now being raised over private stablecoins point to the same underlying issue.
The Bank of England (BoE) has unveiled a comprehensive strategy centered on tokenization to transform the country's financial infrastructure. Speaking at the City Week 2026 conference in London, the Bank's Deputy Governor for Financial Stability, Sarah Breeden, said the retail payment system would be reshaped and incorporate multiple forms of currency. According to Breeden, the goal is to establish a multi-layered payment environment consisting of tokenized deposits, regulated stablecoins, and a potential retail central bank digital currency (CBDC). "People should be able to pay with tokenized bank deposits, regulated stablecoins, and potentially a retail CBDC," said Breeden.Stablecoin regulations to be finalized this yearThe central bank plans to release draft regulations for systemic stablecoins next month; final rules are expected to be ready by the end of the year. Since rapid stablecoin adoption could bring risks, temporary caps on the amount of stablecoins in circulation may also be considered in the early stages. Breeden emphasized that shared ledger technology has the potential to make payments both cheaper and faster, adding that smart contracts will make payment processes more efficient through automation.Banks will be directed towards tokenized depositsThe BoE also wants to include banks in this transformation. Breeden explicitly stated that banks need to innovate in tokenized deposits and that they are working on a next-generation retail infrastructure that will enable interbank payments. Currently, such payments can mostly only occur between customers of the same bank.On May 18, the central bank and the Financial Conduct Authority (FCA) launched a consultation process for a joint tokenization program based on the Bank-FCA Digital Securities Sandbox. Launched in 2024 and running until January 2029, the sandbox allows firms to establish real trading platforms and clearing systems for tokenized securities. Euroclear, HSBC, and the London Stock Exchange Group (LSEG), along with 16 other firms, are expected to transition to the platform by the end of 2026.Digital Pound and CBDC studies continueThe Central Bank will also continue to support the UK government's Digital Gilt initiative, a pilot for tokenized government bonds. The results of the BoE's CBDC design phase will be shared with the public this year.In his speech, Breeden also touched upon the impact of artificial intelligence on the financial system, saying that the bank has taken serious steps to support the responsible adoption of AI, including in agency payments and commerce.These steps by the UK are not an isolated initiative. On the same day, Japan's ruling Liberal Democratic Party (LDP) officially adopted a strategy to build the country's future financial system on artificial intelligence and blockchain technologies; tokenization, stablecoins, and agency commerce are among the three key components of this strategy. In the UK, Breeden emphasized the need for joint action between the industry and the government, concluding his speech by saying, "We need to show that we are deepening the tokenized finance ecosystem and that it is yielding tangible results."
US President Donald Trump signed an executive order that could pave the way for crypto and fintech firms to have direct access to the Federal Reserve's (Fed) payment infrastructure. The order directs the Fed to review its current regulatory framework and consider new access options for non-bank entities.120-Day Deadline for the FedUS President Donald Trump, in an executive order signed on Tuesday, directed the Federal Reserve to conduct a comprehensive review of access to payment infrastructure for fintech and crypto companies.The order, titled "Integration of Financial Technology Innovation into Regulatory Frameworks," requests that the federal government remove regulations deemed to be "overburdening" fintech innovation. Companies operating digital assets and blockchain-based services are also included in this assessment. The Fed's current regulatory framework grants reserve banks the authority to approve or reject payment system access applications. Under the Federal Reserve Act, this access is generally limited to licensed depositories; therefore, some crypto firms have had to apply for a federal charter license.Trump's executive order asks the Fed to take two concrete steps: to review the current framework regulating access to reserve bank payment accounts and services, and to evaluate options for expanding this access to fintech and crypto firms. The order also demands that the 12 Federal Reserve banks clarify, from a legal standpoint, whether they can independently grant access to payment accounts. The Fed is expected to submit a report on this within 120 days. These accounts are known as "master accounts." If crypto firms are granted this access, companies will be able to connect directly to the core US payment infrastructure without needing intermediary banks.The Kraken SparkThe issue has been the subject of intense debate since March, when the Kansas City Fed opened a "limited purpose account" for Payward, the parent company of the crypto exchange Kraken. The account provides access to high-value dollar swaps for institutional clients; however, it includes restrictions such as the non-accrual of interest on reserves. Kraken Co-CEO Arjun Sethi described the decision as "the meeting of crypto infrastructure and sovereign financial rails." The approval drew strong criticism from the Bank Policy Institute, which acts on behalf of major banks. The institute criticized the Fed for announcing the decision before finalizing its policy framework for "narrow" master accounts, which the Fed publicly released in December. Narrow master accounts are defined as central bank accounts that lack standard features such as earning interest on reserves or borrowing from the discount window, and provide limited access to payment systems. A parallel movement is underway in Congress. Last month, Democrat Sam Liccardo and Republican Young Kim jointly introduced the Payments Access and Consumer Efficiency Act (PACE), which would allow non-bank entities access to Fed payment services under certain conditions. While still in its initial stages, the bill has already garnered support from the cryptocurrency sector.
Japan's ruling Liberal Democratic Party (LDP) has officially approved a noteworthy policy proposal for the future of the financial sector. The proposal aims to establish a new generation financial system centered on artificial intelligence and blockchain technologies. This step could advance Japan's regulatory approach to digital assets, tokenization, and stablecoins. Titled "Next-generation AI & Onchain Finance Concept," the proposal was prepared by a project team within the LDP led by Seiji Kihara. Submitted to the party earlier this month, the text received official approval from the LDP Policy Research Council on Tuesday. Thus, the proposal has moved beyond being merely an internal party effort and has become a framework that can be transformed into government policy.AI and blockchain are becoming the new infrastructure of financeAt the heart of the plan is the idea of an automated financial infrastructure operating on blockchain networks and capable of processing transactions around the clock. According to the LDP, the widespread adoption of AI-powered systems will also transform the way financial services operate. In particular, in the new trading model called "agent commerce," AI tools are expected to select products and services on behalf of people, manage payment processes, and initiate financial transactions. At this point, blockchain technology is seen as a significant complementary element in the proposal. The text emphasizes that blockchain's immutable record structure, verifiability, and programmability are compatible with AI-based trading systems. In other words, Japan wants to combine the decision-making and transaction initiation power of AI with the secure and transparent infrastructure of blockchain. One of the notable aspects of the proposal was tokenized deposits. The LDP specifically states that tokenizing the Bank of Japan's current account deposits is important. This approach could enable traditional banking infrastructure to work more compatibly with blockchain-based systems. Tokenized deposits could help create a more controlled bridge between bank money and digital asset technologies. Yen-denominated stablecoins also held a separate place in the proposal. The LDP prioritized ensuring legal clarity and mitigating systemic risks in the stablecoin sector. This emphasis reveals that Japan is trying to protect financial stability while supporting stablecoins. The proposal also states that it supports a joint stablecoin issuance project by Japan's three largest banks. This development shows that Japan wants to establish a more institutional and publicly supported model in the field of digital finance. The regulatory framework for stablecoins and digital asset services in the country has become clearer in recent years. The new proposal, however, does not limit this framework only to the cryptocurrency market; it offers a broader transformation plan that also includes banking, payment systems, artificial intelligence, and international cooperation. The LDP's proposal also calls for stronger cooperation with Asian countries in the fields of AI and blockchain. In this context, the Japan Financial Services Agency was asked to prepare a five-year roadmap that will encourage public and private sector investments. Such a roadmap could create a more predictable investment environment for both domestic financial institutions and technology companies. Following official approval, the LDP will work with relevant institutions and stakeholders to transform the proposal into government policy. Seiji Kihara, in a statement made via X, said that this is truly a "concept" and that the subsequent process will be built step by step. According to Kihara, the most important part will be the follow-up work that will be done after this stage.
Polish lawmakers have approved a bill incorporating the European Union's cryptocurrency regulation, MiCA, into national law. According to Reuters, the government-backed bill passed parliament on Friday, bringing the long-awaited legal framework for the country's digital asset market closer to completion. The regulation is seen as a crucial part of Poland's compliance process, which must be completed by July. According to the country's financial supervisory authority, failure to take this step on time could result in local crypto companies losing their licenses to offer cryptocurrency services in the country. The approval of the law comes at a time of increased pressure on the cryptocurrency market in Poland. Prosecutors are investigating fraud against Zondacrypto, known as Poland's largest digital asset exchange. The investigation has resulted in thousands of users losing access to their funds, with total losses exceeding 350 million zlotys, or approximately $95.93 million. Zondacrypto Investigation Fuels Political DebateThe Zondacrypto case is not only being treated as a matter of financial oversight in the country. The investigation has also increased political tensions in Warsaw. Polish Prime Minister Donald Tusk claimed in April that Russian mafia money and Russian secret services played a role in the processes connected to the exchange.Tusk reiterated a similar assessment earlier this month at a government meeting, citing information he received from security services. The Prime Minister said that "the Russian mafia and its money" were involved in the organization of the Zondacrypto exchange. These statements showed that crypto regulation is being debated not only in terms of investor protection, but also in terms of national security and money laundering risks. However, these allegations are considered part of the investigation process. While the legal process regarding the exchange continues, user losses and withdrawal problems have strengthened calls for stricter oversight of crypto companies in Poland.Timeline for MiCA Compliance is TighteningThe European Union's MiCA regulation introduces common rules for companies issuing crypto assets and crypto service providers. This framework aims to establish a more standardized structure across the EU in areas such as licensing, supervision, consumer protection, transparency, and market integrity.The law adopted by Poland also aims to adapt this regulation to local legislation. This will clarify the rules under which crypto companies in the country will operate, the powers of supervisory bodies, and the sanctions that will be applied in case of violations.The bill also includes high fines for obstructing supervision. According to the government's draft text, the maximum fine for such violations is set at 25 million zloty, or approximately $6.9 million. In the alternative text presented by President Karol Nawrocki, this fine was set at 20 million zloty, approximately $5.5 million.Political uncertainty is not entirely overNevertheless, the political risks facing the law have not completely disappeared. President Nawrocki previously vetoed two crypto regulatory bills supported by the Tusk government. Nawrocki argued that these proposals placed an excessive burden on crypto companies and could drive firms out of Poland. The government bill passed on Friday was one of four different cryptocurrency proposals that began being debated in the Sejm on Tuesday, May 12. The other proposals were reportedly submitted by Nawrocki, the Poland 2050 Party, and the Confederation Party.Additionally, a separate proposal submitted by four MPs from the Law and Justice Party aims to completely ban cryptocurrency activities in Poland. However, Sejm President Włodzimierz Czarzasty stated that this ban proposal would only be considered after work on the four main regulatory bills is completed.A New Era for the Crypto Market in PolandPoland's MiCA compliance process stands out as part of a broader transformation in Europe where the crypto sector is being brought to a more regulated footing. The Zondacrypto investigation revealed why this process is considered more urgent within the country. The law could introduce clearer rules for crypto companies, but it could also increase compliance costs for the sector. Therefore, the debate in Poland is progressing along two main axes: protecting users and reducing the risk of illicit financing on one side, and the possibility of innovative companies leaving the country on the other.
A critical week has begun for the CLARITY Act, a long-awaited bill for the U.S. crypto market. The Senate Banking Committee is preparing to review the bill on May 14, aiming to bring clearer federal rules to the crypto asset market. According to Reuters, the committee session will take place at the Dirksen Senate Office Building in Washington, D.C., and will be a key step in determining whether the bill can move forward in the Senate process.The CLARITY Act aims to clarify under which conditions crypto assets should be treated as securities and under which conditions they should be considered commodities. In this respect, the bill could give a legal framework to the long-running jurisdiction debate between the SEC and the CFTC. For crypto companies, this process could mean lower risks linked to lawsuits, enforcement actions and regulatory uncertainty while operating in the United States. For Bitcoin, XRP and the broader altcoin market, the issue is not limited to regulation; it is also being watched closely because of its potential impact on institutional capital flows.Markets prepare for three scenariosThree main scenarios stand out ahead of the May 14 session. If the bill passes through the committee without major changes, the crypto market could see it as a historic regulatory breakthrough. In that case, short-term risk appetite around Bitcoin may strengthen, while expectations for ETF growth and institutional demand could revive.In the second scenario, the bill could advance with some amendments. This would show that the process has not completely stalled, though it could require further reconciliation between the House and Senate versions. According to Galaxy Digital’s assessment, for the CLARITY Act to reach the White House, it must first pass the Banking Committee, then secure 60 votes in the Senate, be aligned with other Senate texts and eventually be reconciled with the version previously passed by the House.The third scenario is a delay in the vote or the bill getting stuck in committee. Analysts believe such a development could put short-term pressure on Bitcoin and the broader crypto market. Investors see this bill as an important opportunity to move away from the “regulation by enforcement” era in U.S. crypto policy.Democratic votes are at the center of the processAccording to Galaxy Digital, several Democratic members of the Senate Banking Committee could play a key role in the bill’s progress. In the firm’s assessment, Ruben Gallego and Angela Alsobrooks are viewed as more constructive toward a crypto framework, while Mark Warner, Catherine Cortez Masto, Andy Kim and Raphael Warnock are seen as more conditional “deal-maker” figures. Lisa Blunt Rochester is being watched as a possible swing vote.This picture shows that Republican support alone may not be enough for the bill to move forward. Kara Calvert, Coinbase’s vice president of U.S. policy, also said at Consensus 2026 that the CLARITY Act would need 60 votes in the Senate and bipartisan support to become law.Stablecoin provision remains controversialOne of the most sensitive parts of the bill is stablecoin yield. The compromise prepared by Senator Thom Tillis and Senator Angela Alsobrooks would ban passive yield on idle stablecoin balances, while allowing rewards linked to activity such as payments, transfers or platform use. According to Reuters, banking groups argue that this area is still too broad, while crypto companies say a full ban on third parties offering stablecoin yield would be anti-competitive.DeFi oversight, protections for open-source software developers, anti-money laundering rules and ethics provisions restricting government officials from profiting from crypto holdings are also among the disputed topics in the bill. Galaxy Digital notes that these issues may not derail the process on their own, but together they create serious risks that could complicate the timeline.Why it matters for BitcoinFor Bitcoin investors, the CLARITY Act sends an important signal about how the U.S. crypto market could become integrated into the institutional financial system. Clearer rules could reduce legal risk for exchanges, custody firms, ETF issuers and banks. In the medium term, this could translate into more institutional products, stronger liquidity and broader investor participation.According to current market data, Bitcoin is trading slightly above $81,000. During the day, it moved between $80,397 and $82,394. The May 14 committee process may not determine Bitcoin’s short-term direction on its own. Still, every signal from Washington could quickly reshape regulation-driven expectations in the Bitcoin market.
South Korea has finally announced its long-delayed cryptocurrency tax. The country's Ministry of Finance confirmed that the tax on virtual asset gains will go into effect as planned in January 2027. This marks one of the first clear public statements from the government regarding the regulation, which has been postponed several times. The announcement came at an emergency virtual asset taxation forum held at the National Assembly Members' Office Building in Seoul. According to Edaily, a South Korean news outlet, the forum was organized by People's Power Party lawmaker Park Soo-young and the Korea Tax Policy Association. Moon Kyung-ho, Director of the Income Tax Office at the Ministry of Finance, stated, "We will implement the virtual asset taxation as planned in January of next year." Under the current Income Tax Law, gains from the transfer or lending of crypto assets will be categorized as "other income" starting January 1, 2027. Investors whose annual crypto earnings exceed 2.5 million won, or approximately $1,800, will be subject to tax. The tax rate will be 22% overall. 20% of this will be income tax, and 2% will be local tax.The regulation is said to affect approximately 13.26 million investors. This number also shows how broad an individual investor base the crypto market has reached in South Korea. In recent years, transactions made through large platforms such as Upbit and Bithumb have become more of a focus for both regulators and politicians in the country.Tax guide to be published in 2026Moon Kyung-ho said that the National Tax Service is continuing its preparations for the new system. It was reported that the institution held multiple working-level meetings with the country's five largest cryptocurrency exchanges. These exchanges include Upbit, Bithumb, Coinone, Korbit, and Gopax, all operated by Dunamu. The draft notification is expected to be submitted to legislative review in 2026. In his statement to reporters after the forum, Moon retracted the word "soon," clarifying that the notification will be published later in the year, not immediately. This detail shows that the technical framework of the application is still in the final stages.South Korea's crypto tax has been postponed twice before. Initially expected to come into effect earlier, the regulation was pushed back from 2025 to 2027 due to political disagreements, industry objections, and concerns about the technical readiness of exchanges. Recently, the ruling People's Power Party's proposal to completely abolish the tax has reignited the debate. The sector is also reacting negatively to proposed changes to anti-money laundering regulations.While the tax debate continues, the South Korean crypto sector is also reacting negatively to proposed changes to anti-money laundering regulations. DAXA, which represents the 27 registered virtual asset service providers in the country, argues that the new rules are impractical.According to the proposal, exchanges would be required to flag all overseas-linked transfers of 10 million won or more as suspicious transactions. According to DAXA, this requirement could increase the number of reported cases from approximately 63,000 last year to over 5.4 million. Industry representatives state that an increase of this scale would make compliance processes practically unmanageable.The Financial Services Commission and the Financial Intelligence Unit proposed these changes on March 30. The public consultation period will continue until May 11. The final rules are expected to be announced in July.
