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FCA Regulation of Crypto in the UK: Eyes on 2027
The United Kingdom is preparing to take a significant step to bring the crypto asset sector under a broader framework. According to a statement from the Treasury, crypto companies operating in the country will come under the direct supervision of the Financial Conduct Authority (FCA) from 2027. The new regulation aims to treat digital assets similarly to traditional financial products, while strengthening consumer protection and maintaining London's ambition to be a global crypto hub.Crypto mobility in the UKThe rapid increase in crypto asset ownership in the UK is among the main reasons for this step. According to official data, approximately 12% of the adult population in the country already owns cryptocurrency. This rate makes crypto no longer a niche area for regulators, but a financial activity affecting a wide audience. The government believes that the need for regulation is not a choice, but a necessity.Under the new framework, crypto exchanges, brokerage platforms, and companies offering digital wallet services will be subject to FCA oversight. These companies will be expected to meet similar standards to traditional financial institutions in areas such as transparency, operational resilience, and consumer rights protection. Officials believe this approach provides a clear roadmap for serious and long-term players operating in the sector, while also helping to push fraud and malicious activities out of the system. Consumer safety is central to the regulatory plan. Recently, there has been a significant increase in fraud cases and financial losses related to crypto investments in the UK. The government aims to mitigate these risks and restore investor confidence by bringing the crypto sector under official supervision. Chancellor of the Exchequer Rachel Reeves emphasized that the rules to be introduced will both protect consumers and support responsible innovation. The regulatory process is not limited to this development in 2027. The FCA and the Bank of England are already working on detailed regulations on issues such as crypto trading, custody services, token issuances, and market manipulation. It is stated that a separate framework is under consideration, especially for stablecoins, and that regulations in this area are considered critical for financial stability. Authorities plan to clarify most of these rules by the end of 2026. Meanwhile, the UK has also taken steps to strengthen the legal status of crypto assets. New regulations recognize Bitcoin and similar digital assets as property, making them inheritable and legally recoverable. This provides crypto asset owners with a more solid legal foundation. Internationally, London aims to increase cooperation with the US. The planned "Transatlantic Task Force" aims to ensure regulatory alignment between the two countries and support innovative projects. On the other hand, a ban on crypto-related political donations is also on the agenda due to concerns about transparency and ownership.
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15 Dec 2025
SEC Gives Green Light to DTCC: Stocks and Bonds Moving to Blockchain
Depository Trust & Clearing Corporation (DTCC), considered the backbone of the US securities markets, has crossed a critical threshold in the field of tokenization. In a statement, the institution announced that its subsidiary, Depository Trust Company (DTC), received a "no-action letter" from the US Securities and Exchange Commission (SEC). This letter signifies a three-year authorization for the tokenization and offering of certain real-world assets (RWAs) on blockchains. Important Approval from the SECThis approval is not a direct license from the SEC, but rather an official opinion stating that no sanctions will be applied to the proposed activity. However, its impact on the market is significant. This step paves the way for the controlled tokenization of certain stocks, exchange-traded funds (ETFs), and Treasury bonds in the US for the first time. According to information shared by DTCC, the authorization will allow the tokenization of shares of companies included in the Russell 1000 index, ETFs tracking major US indices, and US Treasury bills, bonds, and long-term debt instruments. DTC plans to offer this service through its ComposerX platform on pre-approved Layer-1 and Layer-2 blockchain networks. The service is expected to be rolled out gradually in the second half of 2026. Tokenization refers to the creation of digital representations of traditional financial assets on the blockchain. The aim is to speed up exchange processes, reduce operational costs, and increase liquidity. DTCC specifically emphasizes that these tokenized assets will carry the same investor rights, ownership structure, and legal protections as their traditional counterparts. In other words, the resulting tokens are not merely technical representations but are financial instruments with legal backing. DTCC President and CEO Frank La Salla states that this development is a significant milestone in the transition to digital markets. According to La Salla, tokenization can only scale up if the legal certainty and security standards provided by existing market infrastructures are maintained. Brian Steele, Head of Clearing & Securities Services, states that this initiative aims to bring the operational resilience and security built over the years to the digital asset world. The inclusion of DTCC in the system shows that tokenization will no longer be limited to experimental projects or limited pilot studies. The institution is responsible for the clearing and custody of trillions of dollars worth of transactions in the US and global markets. According to 2025 data, DTC alone handles the custody and asset services of over $100 trillion worth of securities. Therefore, this step signals a structural change in terms of market architecture, collateral management, and liquidity flows. This development is also seen as part of a broader shift in the regulatory climate in Washington. Recently, both the SEC and the Commodity Futures Commission (CFTC) have adopted a more flexible and technology-open approach to digital assets. Tokenization initiatives by institutions such as JPMorgan, BlackRock, Coinbase, and Kraken also support this transformation. DTCC states that stablecoin distributions or tokenized deposit-like structures could be integrated into the system in later stages, but this would require additional regulatory approvals.
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12 Dec 2025
Crypto Exchange Gemini Receives License From CFTC: The Era Of Prediction Markets Begins
Gemini has obtained a Designated Contract Market (DCM) license from the US Commodity Futures Commission (CFTC), granting it the right to offer regulated prediction markets in the US. Announced on December 10, 2025, this decision marks the official completion of the five-year licensing process that began in March 2020. This step is critical for Gemini to expand its business model and establish a more robust revenue structure to meet expectations.Prediction markets meet with customersThe new license allows its subsidiary, Gemini Titan, to offer binary event contracts, also known as binary prediction contracts. These contracts operate on clear, yes-or-no questions such as, "Will Bitcoin close the year above $200,000?" The scope of the authorization is not limited to prediction markets; the company can also expand into a wider range of derivative products such as crypto futures, options, and perpetual contracts if it so chooses. This move means Gemini has established a fully compliant structure that will allow it to directly compete with emerging forecasting platforms like Kalshi and Polymarket in the US. The sharp increase in interest in forecasting markets, particularly during the US election cycle, strengthens the demand for a regulated and overseen platform. In the last two years, Kalshi and Polymarket have reached record volumes, and the CFTC's previously more cautious approach has softened significantly under Acting Chair Caroline Pham. Pham argues that forecasting markets could become an economically significant sector "as large as mainstream finance," and is taking steps to encourage innovation among industry players. The timing of the license is also noteworthy for Gemini. The company's shares have experienced a significant decline in value since its IPO in September 2025; opening at $37, the share closed at $11.36 on December 10th. Therefore, opening up to regulated derivatives and forecasting markets stands out as a strategic shift aimed at increasing revenue diversification and supporting long-term growth. Tyler Winklevoss's recent inclusion on the CFTC's CEO Innovation Council also signals a strengthening dialogue between Gemini and regulatory bodies.Market conditions make this strategy even more necessary. Bitcoin and Ethereum have experienced wide-ranging fluctuations in the last year, while networks frequently attracting institutional attention, such as Solana, have seen sharp pullbacks. This volatility is accelerating Gemini's desire to expand its product portfolio during a period of drastic changes in investor behavior.Despite renewed interest, Gemini is not the first US exchange to enter this space. Crypto.com is developing joint prediction platforms with different brands, while test code for a prediction module integrated into Coinbase's wallet is noteworthy. Furthermore, Robinhood becoming a large distribution partner, sometimes accounting for more than half of Kalshi's volume, demonstrates the rapidly increasing competition in the sector.Gemini's DCM license places the company among the limited number of platforms that can offer regulated prediction and derivatives markets in the US. This license is not unique to Gemini; This is also significant as a symbolic step indicating a shift in the CFTC's approach to digital assets and predictive products towards a more innovation-friendly era.
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11 Dec 2025
Banks in the US Have Been Given Full Authority to Handle Cryptocurrency Transactions
A long-awaited breakthrough has occurred in the US banking system. The Office of the Comptroller of the Currency (OCC), in a letter dated December 9th, authorized banks to act as intermediaries in cryptocurrency transactions. This officially removes one of the biggest uncertainties surrounding the entry of traditional financial institutions into the crypto market.The OCC's announcement allows banks to operate using a "riskless principal" model. In this model, banks match buy and sell orders on behalf of their clients, but do not add the asset to their own balance sheets. Thus, they are not exposed to price volatility. In other words, banks will function as a kind of crypto intermediary; offering a regulated, fast, and more secure alternative for clients.In the last few years, particularly during the 2021-2024 period, both the Fed and the OCC had adopted a very cautious approach to crypto assets. Liquidity risks and volatility warnings were prominent, and banks' crypto initiatives were limited to strict supervision and temporary pilot programs. Now, this approach is undergoing a radical transformation. The letter explicitly states that banks can now move towards full-scale integration and that crypto transactions will be conducted under OCC oversight.With this authorization, the OCC emphasized that enabling customers to access crypto through a regulated bank is critical for both security and transparency. It is expected to create an alternative, especially to unregulated or poorly supervised exchanges. By having banks act as a bridge between the customer and the counterparty, the risk of investors being exposed to unknown exchanges or anonymous trading markets will be reduced.This transformation creates a new business model not only for customers but also for banks. Traditional financial institutions will be able to offer crypto brokerage services within their own structures; trading infrastructures can be integrated into the banking system. Thus, the long-discussed "crypto trading through banks" model is truly becoming a reality in the US. This step is expected to facilitate access to crypto assets for millions of Americans.14 banks have appliedOCC Chairman Jonathan Gould stated at a blockchain conference that the technological transformation of banks is inevitable. “Custody and electronic custody services have been conducted digitally for decades. There’s no reason for us to view digital assets differently,” said Gould, emphasizing that the banking system has the capacity to evolve from the telegraph to the blockchain era. Gould also noted that they received 14 new bank applications this year, some of which were digital asset-focused. This figure is almost equal to the total for the last four years. According to the OCC, this indicates that crypto-integrated banking models could rapidly become widespread. Despite some objections from industry representatives, the OCC is clear: a crypto-compatible banking structure will both provide better service to customers and support local economies. Moreover, the OCC has been overseeing crypto-focused national trust institutions like Anchorage Digital for years. Therefore, it sees no risk in managing these new processes.
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10 Dec 2025
CFTC Launches Critical Pilot Program for Bitcoin, ETH, and USDC
The U.S. Commodity Futures Trading Commission (CFTC) has taken one of the most concrete steps toward bringing crypto assets to the center of regulated finance. The agency has officially launched its "digital asset pilot program," which opens the door to the use of Bitcoin, Ether, and USDC as collateral in derivatives markets. The program both demonstrates the regulatory body's transformation in its approach to crypto and focuses on the integration of tokenized assets into traditional finance. The announcement came from Caroline Pham, the CFTC's de facto Chair. Pham has long been a prominent figure within the agency in updating the framework for crypto assets; she previously launched the "Crypto Sprint" initiative and last week announced that Bitnomial was the first exchange to list regulatory-approved spot crypto products.Pham summarized the goal of the new program as "maintaining the global leadership of U.S. markets by embracing responsible innovation." According to her, the ability to use tokenized assets as collateral will help market participants manage capital more efficiently and enhance the real-time monitoring capacity of regulators. The pilot program is initially limited to Bitcoin, Ether, and USDCAccording to the framework announced by the CFTC, futures brokers (FCMs) will be able to accept only BTC, ETH, and USDC for the next three months. Participating institutions will report the total amount of digital assets held in their client accounts to the CFTC weekly. Furthermore, any operational issues, disruptions, or system errors that could affect digital assets used as collateral will be required to be immediately reported to the regulator.This framework allows the CFTC to monitor market behavior in a gradual and controlled manner while also generating valuable data on how the use of tokenized collateral works in practice.The CFTC also released new guidance jointly prepared by its three divisions on the same day. These guidances clarify how real-world assets, such as tokenized U.S. bonds and money market funds, are valued under the current regulatory framework. Topics such as custody, segregation, valuation shards, and operational risk have been redefined. The agency also withdrew its staff advisory, issued in 2020, which restricted FCMs from accepting virtual currencies as collateral. The CFTC stated that this guidance was outdated with the enactment of the GENIUS Act. The GENIUS Act, passed this summer, specifically sharpened the framework for stablecoin use.Strong support from the industry: "A milestone for the US"Leading figures in the crypto industry welcomed the move. Coinbase Chief Legal Officer Paul Grewal said the decision "proves once again that digital assets provide real benefits in terms of speed, cost, and risk management in payments." Circle President Heath Tarbert emphasized that the use of regulated stablecoins will improve settlement processes and support 24/7 trading.Crypto.com CEO Kris Marszalek described the decision as "a significant step toward making the US a global hub for crypto innovation." Ripple CEO Jack McDonald also stated that recognizing tokenized assets as collateral will increase capital efficiency and strengthen the competitiveness of US financial markets.
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9 Dec 2025
Critical Victory for Ondo (ONDO): SEC Closes File
The U.S. Securities and Exchange Commission (SEC) has closed its two-year investigation into Ondo Finance without recommending any charges. This development marked a significant turning point for both ONDO and the future of the US tokenization space. The investigation, which began in October 2023, assessed whether Ondo's processes for tokenizing US Treasury securities were compliant with existing securities laws and whether ONDO tokens should be classified as a security.According to a company spokesperson, Ondo received official notification at the end of November that the investigation was fully closed. This development confirmed a significant shift in the agency's approach to crypto-related filings since the SEC's new Chairman, Paul Atkins, took office. The withdrawal or dismissal of several high-profile cases filed during the Biden administration, along with the easing of pressure on companies like Coinbase, Ripple, and Kraken, all indicate that the US regulatory landscape is shifting more pro-crypto.The closure of the investigation also paved the way for Ondo to pursue a more robust expansion strategy within the US. The company recently registered as an investment advisor and acquired Oasis Pro Markets, an SEC-registered broker-dealer, ATS operator, and transfer agent. This structure provides Ondo with a regulatory-compliant operating space for the tokenization of real-world assets and a more comprehensive infrastructure for institutional investors.Meanwhile, the SEC has transformed tokenization from a mere monitoring agency to an active policy area. At last week's Investor Advisory Committee meeting, the agency discussed the potential impact of tokenization on the issuance, trading, and settlement of publicly traded stocks. Chairman Atkins emphasized in his remarks that distributed ledger technology could be a "transformative force" in the capital markets.ONDO price risesAmid these developments, the ONDO price has also been experiencing significant market volatility. According to a screenshot of the coin, the token is trading at $0.4966 today, demonstrating a significant increase in investor interest over the past 24 hours. Looking at the price changes:• 5.32% increase in the last hour,• 7.30% increase in the 24 hours,• 8.12% increase in the 7 days. In contrast, the 30-day price performance remains weak at -25.99%. This chart suggests that despite the short-term recovery, investors have not fully moved past the correction experienced over the past month.How Ondo's momentum unfolds from now on will largely depend on the company's plans to expand its US operations and the new tokenization solutions to be announced at the Ondo Summit in New York in February.
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8 Dec 2025
Abu Dhabi Grants Comprehensive License to Binance: A First
Binance has received full authorization from the Financial Services Regulatory Authority (FSRA) of the Abu Dhabi Global Market (ADGM), becoming the first crypto exchange globally to receive this approval. This step represents a significant milestone in the company's long-standing goal of regulatory compliance. Binance's entire operation, from spot and derivative transactions to custody operations, is now under a single, end-to-end regulatory framework, ensuring stronger assurance of risk management and user protection.Binance Receives Approval from ADGMADGM is a legal framework known for its clear rules and robust oversight mechanisms, closely following traditional financial standards. Binance's full compliance with this framework represents a critical step toward achieving the structural separation, accountability, and operational transparency that global regulators demand of crypto exchanges.Binance's CEO described the approval as a "strategic milestone" for the company and the industry. The statement emphasized that moving global operations to a structure closely overseen by ADGM demonstrates the company's solid foundation and commitment to responsible innovation. New Structure: Three Separately Licensed Companies Under the Nest BrandAccording to ADGM regulations, Binance will operate through three separate, local, and licensed entities. This approach aims to both reduce risks and strengthen regulatory oversight by separating the exchange's entire trading cycle.Nest Exchange Limited (formerly Nest Services): With its status as a Recognized Investment Exchange, it will be responsible for spot and derivative transactions.Nest Clearing and Custody Limited: Authorized as a Recognized Clearing Institution and will manage clearing, settlement, and digital asset custody processes.Nest Trading Limited (formerly BCI Limited): With its broker-dealer license, it will conduct OTC transactions, asset conversions, and over-the-counter trading activities.This structure stands out as a cryptocurrency version of the traditional exchange, clearing, and brokerage distinction. It also allows the regulator to independently oversee each function.Strong Framework for User ProtectionThe FSRA license places Binance users under one of the world's most stringent consumer protection regimes. All processes, including transaction execution, custody, risk management, and asset security, will be regularly audited. This is a key factor in boosting confidence among both institutional and individual investors.ADGM Chairman Ahmed Jasim Al Zaabi stated that Binance's entry into the region reinforces Abu Dhabi's rise as a global financial and innovation hub. Binance Co-CEO Richard Teng stated that the new structure strengthens its commitment to "compliance, transparency, and user protection."There has been no clear statement regarding whether the exchange will relocate its global operations to Abu Dhabi in the future; however, the company has been searching for a permanent international headquarters for some time.Binance.com is expected to fully operate under the ADGM framework as of January 5, 2026. With this transition, users will see clearer operational processes, enhanced custody services, and a regulatory-compliant trading infrastructure. Binance recently announced that it has surpassed 300 million registered users and remains the world's largest crypto platform by volume.
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8 Dec 2025
Legal Protection for Crypto: UK Approves Law
The United Kingdom has taken a historic step, putting years of debate surrounding crypto asset regulations behind it. The Property (Digital Assets etc.) Act 2025, which came into force on Tuesday, officially defines digital assets as a "third category of property." This gives Bitcoin, stablecoins, and other digital assets a distinct class of property under English law, separate from physical assets and contract rights.Critical crypto legislation in the UKThe legislation passed both houses of parliament without amendment and was signed into law with the assent of King Charles III. This demonstrates the broad political consensus the process has enjoyed. CryptoUK, a leading UK industry organization, stated that this step provides a long-awaited "clear legal basis" for the crypto industry. The association emphasized that courts have considered crypto property for years, but that clearly codifying this principle into law would eliminate uncertainty in areas such as criminal investigations, asset recovery cases, and inheritance law. Bitcoin Policy UK CEO Susie Ward commented on the decision as "now your satoshis are legally protected." The organization's policy director, Freddie New, described this development as "the biggest change to English property law since the Middle Ages." The statements indicate that the reform is a turning point not only for the crypto ecosystem but also for the English legal system.This regulation was first proposed by the independent legal body Law Commission in 2023. The proposal was then brought before the House of Lords in September 2024 and, as a short draft bill, was finalized in 2025. The main purpose of the bill was to strengthen the legal definition of what digital assets are, how they are owned, and how they should be protected.CryptoUK states that the new framework will be particularly effective in three areas: proof of ownership, recovery of stolen assets, and the treatment of crypto assets in bankruptcy and inheritance proceedings. Until now, a significant portion of crypto-related cases in the UK have been proceeded by judges' interpretations; Now, the written law provides a standardized approach to this area.The UK isn't content with simply defining crypto assets; it's also working to accelerate financial regulation. The Bank of England (BoE) recently published a draft new regulatory framework for sterling-backed stablecoins. The bank emphasizes that stablecoin use will become widespread in payment systems in the coming years and that preparations should be made now. BoE Deputy Governor Sarah Breeden stated that the country doesn't want to lag behind the US, saying the new rules will come into effect "at the same pace as the US."With this latest step, the UK has become one of the few countries that has moved closer to defining crypto assets in terms of both ownership and financial regulation.
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3 Dec 2025
Chainlink ETF Opens for Trading in the US: LINK Price Jumps 15% in One Day
Chainlink's native token, LINK, debuted strongly on Tuesday. Grayscale's initial listing of a Chainlink-focused exchange-traded fund (ETF) in the US quickly boosted the asset's price. LINK rose 13-15% intraday to $13.9, marking one of the most notable recoveries following a weak market outlook in recent weeks. A Critical Step for ChainlinkThe new product is trading on the NYSE Arca under the ticker symbol GLNK. Grayscale's Chainlink Trust, which launched as a private placement in 2021 and moved to OTC Markets in 2022, has now been converted into a fully public ETF. This step makes access to LINK easier and more regulated for both retail and institutional investors.According to Grayscale, GLNK offers investors the opportunity to gain exposure to Chainlink through traditional brokerage firms within a regulated framework. However, because the fund does not fall under the Investment Company Act of 1940, it lacks some of the consumer protections found in traditional ETFs. The fund's operating principle is based on holding LINK on behalf of investors and providing indirect access to the performance of these assets.The Chainlink ecosystem itself demonstrates that this interest is no coincidence. LINK powers the decentralized oracle network, already one of the most critical components of the blockchain world. This network securely transfers off-chain data (such as price feeds, weather forecasts, election results, or other API-based data sets) to smart contracts. It also supports cross-chain infrastructure, enabling data and asset transfers between different blockchains that don't communicate with each other. This infrastructure, used in a wide range of applications from DeFi and NFTs to gaming applications and enterprise solutions, contributes to the safekeeping of tens of billions of dollars in value.With the launch of the ETF, Chainlink's social media accounts also emphasized the "opportunity to invest in the fundamental bridge between the real world and blockchain." GLNK's volume exceeding 860,000 shares on its first day of trading demonstrates rapid investor interest. According to Yahoo Finance data, the fund has approximately $27.8 million in net assets and a 2.50% expense ratio.LINK's price action has been quite volatile in recent months. The token has lost approximately 39% of its value since the beginning of the year and has experienced declines of up to 47% in the past year. Therefore, analysts believe the new ETF could create price stability in the medium term. The recent entry of similarly themed ETFs for assets such as Solana, Litecoin, and XRP, particularly in the US, demonstrates a diversified interest in traditional capital.Grayscale's rapid transition from its product line to an ETF format is also noteworthy. The company previously transitioned from trust structures to an ETF model for assets such as Dogecoin and Solana. As the number of crypto-related securities products continues to grow in the US, Chainlink's acquisition of its own fund is a significant milestone in the sector.
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3 Dec 2025
Japan Offers Major Tax Cuts on Cryptocurrencies
The Japanese government is preparing to implement one of the most comprehensive regulatory packages regarding the taxation of crypto assets. Crypto gains, currently subject to a progressive income tax of up to 55%, will be taxed at a flat rate of 20% under the 2026 tax reform, under the same scope as mutual funds and stocks. This change is expected to increase the trading volume of individual investors and strengthen Japan's global competitiveness.Japan's Crypto ProposalAccording to the proposed reform, crypto gains will be separated from business income and wage earnings and moved into a separate income category. This means investors' crypto trading profits will no longer fall into progressive tax brackets; instead, a single flat rate of 15% income tax and 5% residence tax will be applied. This regulation is expected to be included in the final tax package to be announced in December 2026.The tax reform is driven by Japan's desire to encourage individual investors and its efforts to align with international practices. A comparative study conducted by the Financial Services Agency (FSA) noted that crypto assets are classified as property in the US and taxed at rates ranging from 0% to 37%; the UK applies rates between 20% and 28% for capital gains; and France has adopted a 30% flat tax model. Japan's 20% flat rate creates a framework more compatible with these countries and has the potential to increase competition in the domestic market.Beyond tax reductions, the FSA is also preparing structural classification changes. The new framework, which covers Bitcoin, Ethereum, and approximately 100 tokens, will redefine crypto assets as "financial products" under the Financial Instruments and Exchange Act. This will allow banks, insurance companies, and institutional brokerage firms to offer crypto products or provide custody services under certain conditions. This is expected to increase institutional participation and generate higher volume on domestic exchanges.The agency is also preparing a token whitelist of approximately 150 assets. Crypto assets included on this list will benefit from more flexible tax treatment, banking custody services, and market access. Tokens that remain unlisted will remain subject to existing strict regulations. With this approach, the FSA aims to both increase institutional compliance and enhance its oversight power by more clearly categorizing market risk.The tax reduction isn't just a technical adjustment for Japan. For years, the country has faced the problem of individual investors preferring offshore platforms due to high tax burdens, and the concentration of trading volumes in foreign markets rather than domestic exchanges. The 20% flat rate has the potential to reverse this trend and re-introduce the crypto ecosystem.Japan is also targeting young individuals and small investors in its comprehensive investment reform package designed to revitalize its capital markets. According to local media, the government is also considering a plan to extend some of the tax benefits to products suitable for investment by minors.All of these steps are expected to be enacted during 2026, and the new tax regime will take effect in fiscal 2027. If the process progresses as planned, Japan will have one of the most competitive legal frameworks for crypto taxation both in the Asia-Pacific region and among G7 countries.
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2 Dec 2025
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.
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25 Nov 2025
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.
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21 Nov 2025
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.
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19 Nov 2025
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.
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17 Nov 2025
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.
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10 Nov 2025