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Belarus Gives Green Light to Crypto Banks
Belarus has taken a significant step toward integrating digital assets into its financial system. President Alexander Lukashenko signed a new decree providing a legal framework for crypto banking. According to information reported by the Belarusian state news agency BELTA, Decree No. 19, signed on January 16th and titled "On Certain Issues Regarding Control in the Field of Crypto Banks and Digital Tokens," allows for the establishment and operation of crypto banks in the country. The legal definition for crypto banks has been clarifiedThe new regulation aims to strengthen Belarus's position in the field of financial IT innovation, while also ensuring that crypto banking activities are conducted within a regulated and supervised structure. With this decree, the concept of a "crypto bank" has been clearly defined for the first time in Belarusian law. Accordingly, crypto banks can operate as joint-stock companies that can offer digital token transactions alongside traditional banking, payment, and related financial services.The legal framework paves the way for crypto banks to work not only with blockchain-based products but also with integrated operations using classic financial instruments. Thanks to this structure, banks will be able to offer both token-based transactions and traditional payment and banking services under one roof. Officials emphasize that this model will serve as a bridge between the digital asset economy and classical finance.However, there are certain conditions for obtaining crypto bank status. Accordingly, these institutions must have a registered status in the High-Tech Park, Belarus's special economic zone focused on technology and innovation. In addition, these institutions are required to be included in a special crypto bank register maintained by the National Bank of Belarus. These criteria aim to both encourage the development of the sector and strengthen control mechanisms.Another notable element of the new system is the dual-layered supervisory model. In addition to being subject to the regulations applied to non-bank credit and financial institutions, crypto banks will also have to comply with the decisions of the High-Tech Park Supervisory Board. Officials state that this multi-level supervisory structure aims to provide supervision close to traditional banking standards without hindering the development of innovative financial services.With this decree, the Belarusian government plans for crypto banks to offer customers a hybrid product range. These products will combine the relatively stable structure of traditional banking with the speed and efficiency of token-based transactions. Thus, crypto banks will position themselves as intermediaries facilitating digital asset transactions while also providing access to payment systems and banking services. Since the establishment of the High-Tech Park, the country has offered relatively flexible regulations and tax advantages to attract blockchain and crypto projects. On the other hand, the Belarusian government also views crypto mining as a strategic area. At a government meeting in November, Lukashenko described crypto mining as one way to reduce global dollar dependence and argued that the country's surplus nuclear capacity should be utilized in this area. At the meeting in Minsk, Lukashenko, downplaying concerns about market volatility, stated that crypto assets are an inevitable part of the international search for alternative monetary systems.
New Crypto Law Prepared in Russia: Official Announcement
Russia is preparing to take another step towards opening the cryptocurrency market to individual investors. According to information reported by the state news agency TASS, Anatoly Aksakov, head of the Financial Markets Committee of the State Duma (the lower house of the Russian parliament), announced that a draft law is ready that would allow limited access to crypto assets for unqualified investors. The draft is expected to be on the agenda of the spring parliamentary session.Crypto removed from special regulationAccording to Aksakov, the new regulation aims to make cryptocurrencies a more ordinary financial instrument by removing them from the scope of "special financial regulation." Speaking in an interview with Russia-24 television channel, Aksakov stated, "A draft law has been prepared that removes cryptocurrencies from the realm of special regulation. This means that digital assets will become part of our daily lives." This approach marks a significant change in the long-ambiguous legal status of crypto assets in Russia.According to the draft law, individuals who do not have qualified investor status will not be able to enter the cryptocurrency market completely freely. Instead, an upper limit will be applied for retail investors. Under the current framework, this limit is capped at 300,000 rubles per person. This amount corresponds to approximately $3,800 at the current exchange rate. Aksakov emphasized that professional market participants will not be subject to such a limitation.The new regulation will not be limited to domestic individual transactions. Aksakov stated that if the law is adopted, cryptocurrencies could be used more actively in international transactions. In particular, cross-border payments and the positioning of tokens issued by Russia-based projects abroad are among the prominent goals of the regulation. This approach is considered part of Russia's search for alternatives to traditional financial infrastructures.These statements indicate that Russian authorities have recently adopted a more controlled but relatively flexible stance towards cryptocurrencies. In December, the Central Bank of Russia proposed a framework that would allow unqualified investors to trade cryptocurrencies provided they pass a risk awareness test. Under the same regulation, anonymous or privacy-focused crypto assets were to remain prohibited. Similarly, Russian Finance Minister Anton Siluanov announced that the finance ministry and the central bank were working on a joint approach that would allow limited participation of retail investors in the crypto market. Officials frequently emphasize that caps on transaction volumes and investment amounts are critical in mitigating potential financial and systemic risks.The increasing prominence of cryptocurrencies in the country is also reflected in the questions directed at public institutions. It is noted that among the millions of calls received by the Russian Social Fund throughout 2025, questions related to cryptocurrencies hold a significant place. Citizens question whether pension payments can be made in cryptocurrency or whether mining revenues affect social benefits, while officials remind them that all public payments are made only in rubles.On the other hand, cryptocurrency mining has also begun to gain more importance politically and economically. Some high-ranking officials argue that, although there is no physical cross-border movement, mining contributes to foreign exchange inflow and should be recognized as an export item. In this context, the Moscow Stock Exchange and St. Petersburg have discussed this issue. The St. Petersburg Stock Exchange has announced its readiness to launch cryptocurrency trading once the necessary legal framework comes into effect. According to the current schedule, the new regulations are expected to be implemented by July 1, 2026.
Clarity Act Postponed Until End of January: Bitcoin and 6 Altcoins on the List
A significant step has been taken toward the CLARITY Act (Digital Asset Market Clarity Act), which aims to bring long-awaited clarity to the cryptocurrency market in the US. The bill, introduced by Wyoming Senator Cynthia Lummis, is scheduled to be brought before the Senate in mid-January. This comprehensive text, prepared in addition to H.R. 3633, aims to clarify which institution will oversee digital assets and how.The 278-page draft stands out as the most up-to-date version of the "market structure" regulations that both Republicans and Democrats have been working on for months. Prepared by the Senate Banking Committee, the text aims to reduce the ongoing jurisdictional confusion in the US crypto markets and create a more predictable regulatory environment. At the heart of the CLARITY Act is the long-debated issue of the division of authority between the US Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) regarding the oversight of digital assets. The bill aims to reduce conflicts that create uncertainty in the markets by more clearly defining which type of crypto asset falls under the supervision of which institution.Supporters argue that this approach can limit market manipulation and create a more stable environment for both individual and institutional investors. The reduction of sudden and unpredictable enforcement processes is seen as critical for long-term institutional participation.New Status for Cryptocurrencies with ETFsOne of the notable sections of the draft text concerns regulations for cryptocurrencies with exchange-traded funds (ETFs). If a crypto asset's ETF is listed on a national exchange in the US, no additional disclosure will be required from the SEC. Details such as who controls the project or the token distribution structure will not be requested separately. In this context, altcoins with ETFs, such as XRP, Solana, Litecoin, Hedera, Dogecoin, and Chainlink, along with Bitcoin and Ethereum, are considered under the same status. This approach is seen as a significant milestone for the altcoin market. Interest Ban on Stablecoins, but Exceptions ExistThe bill also outlines a clear framework regarding stablecoins. Accordingly, users will not be able to earn interest or returns simply by holding stablecoins. However, rewards based on activities such as payments, transfers, providing liquidity, or active use within the platform are allowed. The Senate Banking Committee's draft aims to both protect the consumer and not completely restrict market activities with a "conditional return" approach.This provision remains one of the most controversial topics in the sector. Stablecoin revenues are cited as one of the biggest points of disagreement on the bill.Protection for DeFi DevelopersThe bill also includes the Blockchain Regulatory Certainty Act. Accordingly, DeFi developers who do not control user funds and only develop software will not be considered financial intermediaries. The aim is to bring oversight to structures that manage user assets while protecting open-source development and innovation.Criticisms and Political CalendarSupporters of the bill argue that the US could once again become the center of global crypto innovation. However, figures like Elizabeth Warren are warning that the SEC's powers could be weakened, creating risks for pension funds. Meanwhile, Senate Agriculture Committee Chairman John Boozman has postponed the committee's discussions on the CLARITY Act until the last week of January. This decision is interpreted as an indication that sufficient bipartisan support has not yet been secured. With the Senate Banking Committee expected to release the final text soon, the CLARITY Act is on track to become the most comprehensive framework for US cryptocurrency regulation to date. The final version of the bill and any proposed changes will be closely watched by markets in the coming weeks.
Dubai Takes a Firm Stake in Crypto: Privacy Tokens Banned
Regulations governing crypto assets at the Dubai International Financial Centre (DIFC), Dubai's financial free zone, have been significantly updated. The new Crypto Token Regulatory Framework, implemented by the Dubai Financial Services Authority (DFSA), came into effect on January 12th. The updated framework clearly defines privacy-focused crypto assets, narrows the definition of stablecoins, and directly assigns responsibility for token compliance to licensed companies. The most notable aspect of the new regulations concerns privacy tokens. The DFSA has banned the use of crypto assets designed to conceal transaction history or wallet holders across the DIFC. This ban covers not only trading but also marketing activities, exposure to funds, and derivative products based on these assets. Thus, all financial activities associated with privacy tokens are inaccessible to institutions under the DIFC umbrella. This decision comes at a time of increased market interest in privacy-focused cryptocurrencies. Recently, Monero (XMR) has seen new highs, while Zcash (ZEC) has also experienced a significant increase in trading volume. However, the DFSA believes that such assets are incompatible with global compliance obligations. The institution's approach is based on the Financial Action Task Force (FATF) standards, which mandate the identification of sender and receiver information in crypto transactions. The nature of privacy tokens, which makes this transparency difficult, is considered an unacceptable risk by the regulator.The ban is not limited to tokens alone. Licensed institutions under the DIFC are also no longer allowed to use or offer mixers, tumblers, or other tools that conceal transaction details. This step brings Dubai closer to the centers adopting the strictest stance against privacy-enhancing technologies. While the MiCA framework and upcoming AML restrictions on anonymous crypto activities in the European Union are moving in a similar direction, some centers, such as Hong Kong, theoretically allow privacy tokens but practically impose serious restrictions. Stablecoins are also on the agendaAnother critical aspect of the regulation was the changes made to the definition of stablecoins. The DFSA limited the stablecoin category, which it calls "Fiat Crypto Token," only tokens that are pegged one-to-one to fiat currency and backed by high-quality, liquid assets. It is stipulated that reserves must be sufficient to meet repayment demands even during periods of high market stress. In this context, algorithmic stablecoins were excluded from the definition of stablecoins. Projects like Ethena, which have attracted attention with their rapid growth, are not banned; however, within the DIFC, they are now considered standard crypto tokens, not stablecoins. One of the structural changes made within the framework was leaving the assessment of token suitability directly to the sector. The DFSA will no longer maintain a list of approved crypto assets. Instead, licensed companies operating in the DIFC will assess the suitability of the tokens they offer themselves, be obliged to document these assessments, and review them regularly. Charlotte Robins, DFSA's director of policy and legal affairs, notes that this approach represents a shift towards a more flexible and principles-based model. Across Dubai, however, the picture remains fragmented. The Dubai Virtual Assets Regulatory Authority (VARA), which operates outside the DIFC, imposed an explicit ban on privacy-enhanced cryptocurrencies in 2023. In Abu Dhabi, the Abu Dhabi Global Market (ADGM) is taking a more cautious, risk-based approach.
March 31 Criterion for Crypto Companies in Turkiye is on the Agenda
As the regulatory framework for the crypto asset market in Turkey becomes clearer, a significant timeline directly affecting crypto asset service providers (CASPs) has also been formalized. Accordingly, crypto asset service providers operating in Turkey must sign a contract with an authorized custodian and comply with the TÜBİTAK Information Systems and Technological Infrastructure Criteria by March 31st at the latest, in order to continue their operations uninterrupted. These contracts are also expected to be submitted to the Capital Markets Board (SPK). This step is seen as one of the most critical aspects of the new era, aiming to increase the security of user funds and reduce operational risks in the crypto asset market. The custody obligation mandates that both exchanges and other crypto service providers make their technical infrastructure compliant with stricter regulations. Thus, the aim is to bring companies operating in the crypto market in Turkey closer to international standards.Ziraat Bank and TÜBİTAK partnershipA notable development immediately following this regulatory process was the comprehensive cooperation protocol signed between Ziraat Bank and TÜBİTAK. This protocol, implemented between the two institutions, aims to develop joint products and solutions in the field of advanced technologies, primarily in crypto asset custody infrastructure. The collaboration covers critical areas such as cybersecurity, big data, artificial intelligence, blockchain, digital asset technologies, and quantum computing. By combining Ziraat Bank's financial expertise with TÜBİTAK's research and technology development capacity, the goal is to enable Turkey to achieve a more secure and competitive position in the digital finance ecosystem. The planned studies, particularly focused on the development of domestic and national technologies, are expected to create a strategic R&D ecosystem in areas such as cryptography and financial infrastructure design. The first concrete step under the protocol was the signing of the contract for the Digital Asset Custody Infrastructure. With the project, which is planned to be carried out in phases, the goal is to implement a completely domestic, national, and compliant crypto asset custody infrastructure in Turkey. The aim is for the developed architecture to create a new standard that will serve as a national reference for the Turkish digital finance ecosystem. In addition to crypto asset custody solutions, joint R&D studies are planned to be initiated in a wide range of technologies, from cybersecurity and artificial intelligence to big data and quantum technologies. These studies are expected to pave the way for new technology-based products in both the financial and public sectors. Ziraat Bank General Manager Alpaslan Çakar emphasized that the signed protocol is a strategic step in terms of Turkey's financial technology capacity. Çakar stated that this collaboration with TÜBİTAK strengthens the goal of creating a national standard in blockchain-based digital asset custody infrastructure. He added that joint products to be developed in areas such as cybersecurity and artificial intelligence will make a significant contribution to Ziraat Finance Group's digital transformation vision. TÜBİTAK President Prof. Dr. Orhan Aydın evaluated this collaboration as a strong example of inter-institutional technological partnership. Aydın stated that, in line with the National Technology Initiative vision, developing a system that will ensure the secure storage of digital assets is a priority goal, and added that the project will pave the way for new studies in fields such as blockchain, artificial intelligence, and big data in the future.
Crypto Alert in Washington: Critical Session on January 15th
Extensive legislative efforts aimed at regulating crypto assets in the US have gained momentum again after lengthy negotiations. Critical hearings scheduled for next week in Washington could open a new era for the digital asset market. The hearings, to be held simultaneously by two key Senate committees, will be decisive in terms of both the sharing of regulatory authority and controversial topics such as stablecoins. The Senate Agriculture Committee, responsible for the Commodity Futures Commission (CFTC), will consider the draft legislation on the crypto market on January 15th (possibly to January 16th, Turkish time). According to a committee spokesperson, a "markup" hearing will be held on this date. The fact that Senate Banking Committee Chairman Tim Scott also plans to hold a similar hearing in his committee on the same day indicates that the process will proceed simultaneously and intensely. This step, following months of negotiations, is seen as a significant milestone in crypto regulation. The main goal of the draft legislation is to clarify the sharing of authority over crypto assets. The ongoing jurisdictional dispute between the CFTC and the US Securities and Exchange Commission (SEC) is creating uncertainty for the sector. The Senate Banking Committee's draft aims to clarify which cryptocurrencies will not be considered securities through a new definition of "auxiliary assets." The Senate Agriculture Committee's draft grants broader powers to the CFTC, but as of November, the numerous square brackets in the text indicate a lack of consensus on critical issues. If both committees approve their drafts next week, the texts will be combined and sent to the Senate floor. After this stage, alignment with the "Digital Asset Market Clarity Act," or "Clarity" for short, passed by the House of Representatives during the summer, will be necessary. If a joint text emerges from both chambers, the regulation can be submitted to President Donald Trump for signature. However, the process is not limited to technical regulations. Politically and economically controversial issues are also expected to be raised in upcoming sessions. Chief among these is Trump's perceived conflicts of interest within the crypto sector. According to Bloomberg, Trump earned hundreds of millions of dollars through his family's crypto ventures. How this will be addressed in legislative discussions remains to be seen.Stablecoins are also on the agendaAnother important area of debate is yield-generating stablecoins. The Community Bankers Council, affiliated with the American Bankers Association, argued in a letter sent to the Senate this week that the stablecoin law, known as GENIUS, passed this summer, contains loopholes. According to bankers, these loopholes allow crypto companies to offer yields to stablecoin holders, potentially weakening the ability of local banks to collect deposits and extend loans.The crypto sector has responded harshly to these criticisms. Coinbase's Policy Director, Faryar Shirzad, stated that banks' main objection is not financial stability but competition. According to Shirzad, the fundamental reason for opposing reward mechanisms is that banks' protected revenue streams are threatened. Protecting the GENIUS law and yield-generating stablecoin models means lower costs, more options, and a more competitive payment system.
Crypto Regulation in the US May Slow Down: TD Cowen's 2029 Scenario
The timing of comprehensive regulation aimed at establishing clear rules for the cryptocurrency market in the US has become a subject of renewed debate. Investment bank TD Cowen stated that legislation regarding the structure of the cryptocurrency market could be delayed until 2027 due to political obstacles, with final implementation potentially taking until 2029. A note published by the company's Washington Research Group emphasized that the balance of power in Congress, particularly clauses concerning conflicts of interest, complicates the process.TD Cowen puts the brakes on cryptocurrency regulationsAccording to TD Cowen's assessment, while technically the draft law could advance this year, political calculations make delays more likely. The Democrats' belief that they can regain control of the House of Representatives in the 2026 midterm elections reduces motivation for a quick compromise. However, the note also states that party officials have been working on the technical language of the draft for months, and that uncertainty can always open the door to compromise.The most critical issue at the heart of the report is the regulations concerning conflicts of interest. Democrats are expected to seek provisions prohibiting high-ranking public officials and their families from owning or operating cryptocurrency companies. Donald Trump and his family's crypto projects are at the center of this debate. TD Cowen notes that such a clause would be unacceptable to Trump, but could remain on the table if the effective date were postponed for several years. The debate centers around the Trump family's activities in the crypto sector. According to Bloomberg's estimate last year, Trump earned approximately $620 million from crypto ventures linked to his family. These include partnerships with World Liberty Financial, which operates in the DeFi and stablecoin space, and a Bitcoin mining company. Furthermore, memecoins issued in the names of Trump and Melania Trump have also been the target of criticism in Congress. TD Cowen suggests that a possible compromise could be to postpone the effective date of the conflict of interest clause for three years, effectively excluding Trump. However, in such a scenario, Democrats might also request a postponement of the entire law for several years. This situation heightens the tension between the rapid clarity the industry expects and the political realities.The law in question is seen as the next major hurdle in US crypto regulation after the GENIUS Act, which included stablecoin regulation. The regulation aims to clarify fundamental issues such as the classification of digital assets, which institution will oversee which area, and what rules market participants will be subject to. Although the House of Representatives passed its own draft last year, the process in the Senate is progressing slowly.60 votes are needed to overcome an obstacle in the Senate. This makes it necessary for Republicans to secure the support of at least seven, or even eight or nine, Democratic senators in addition to potential opposition from within their own ranks. This balance gives the Democrats significant bargaining power to postpone the process until after the midterm elections.In conclusion, according to TD Cowen, the future of the crypto market structure law depends more on the political calendar than on technical preparations. While the industry prefers the regulation to be enacted during the Trump administration, the Democrats want to preserve the room to shape the rules in the event of a possible change of power.
Turkmenistan Opens Its Doors to Crypto: Mining and Trading Officially Legal
Turkmenistan, known as one of the most closed economies in Central Asia, has made a remarkable shift in its approach to crypto assets. Cryptocurrency mining and trading have been officially legalized in the country under the new "Virtual Assets Law," which came into effect on January 1, 2026. This step is seen as a concrete demonstration of Turkmenistan's pursuit of digitalization and diversification, given its long-standing economic model based on natural gas revenues.The law was signed in NovemberSigned by President Serdar Berdimuhamedov at the end of November, the law includes crypto exchanges and mining companies within a licensing framework. The regulation envisages a system overseen by the Central Bank and authorized public institutions, while clearly defining the legal and economic status of crypto assets. Accordingly, cryptocurrencies are considered "digital property" under civil law; however, they are not recognized as a means of payment that can replace the national currency, the manat.This approach shows that Turkmenistan prefers to act cautiously while opening its doors to crypto. The new law offers a limited and state-controlled cryptocurrency market rather than a free one. Domestic and foreign companies and entrepreneurs wishing to mine or operate cryptocurrency exchanges are required to obtain licenses from the relevant authorities. Licensed activities are subject to continuous monitoring; unregistered or unauthorized mining is explicitly prohibited. One of the most striking aspects of the regulation is the strict compliance and transparency rules. KYC (Know Your Customer) and AML (Anti-Money Laundering) obligations are mandatory for all licensed entities. The use of anonymous wallets and privacy-focused transaction methods is prohibited, aiming to ensure that all transactions are traceable. This framework distinguishes Turkmenistan from more liberal cryptocurrency hubs while aligning it with countries that have more conservative financial regulations. Allowing cryptocurrency mining is also closely linked to the country's energy strategy. Turkmenistan possesses the world's fourth largest natural gas reserves. The state aims to leverage its low-cost energy advantage to integrate energy-intensive mining activities into the economy in a controlled manner. Mining facilities are required to meet technical and safety standards, register equipment, and operate in a way that does not harm the national electricity grid. This aims to both utilize excess energy capacity and limit infrastructure risks.The law also includes advertising and promotional restrictions aimed at protecting investors. Clear risk warnings are mandatory in crypto-related advertisements, and promising guaranteed returns is prohibited. Furthermore, the use of brands and advertisements containing state names, symbols, or official connotations is prevented, aiming to prevent the perception that crypto projects are under state protection.According to experts, this step taken by Turkmenistan aims not to promote decentralized finance, but to create a new economic sphere under state control. The fact that cryptocurrencies are not accepted as a means of payment and that internet access is still tightly controlled clearly reveals the limitations of this initiative. Nevertheless, the provision of a licensed and predictable framework could attract foreign capital, especially in the mining and institutional investment sectors.
Starting January 1st: China Takes Critical Step Towards Digital Yuan
China is preparing for one of the most critical steps yet in its digital yuan project. The country's central bank announced that a new framework allowing commercial banks to pay interest on digital yuan balances will come into effect on January 1, 2026. With this change, e-CNY will cease to be merely "digital cash" and will effectively become "digital deposit money." The announcement was made public through an article by Lu Lei, Vice President of the People's Bank of China, published in the state newspaper Financial News. According to Lu, this regulation is a natural result of pilot studies that have been ongoing for about a decade and a testing process that has accelerated in the last five years. Although China is considered one of the world's leading countries in terms of technical capacity and scale of implementation in the CBDC field, adoption rates have not yet reached the expected level.Under the new framework, interest can be paid on balances held in verified digital yuan wallets in accordance with existing deposit pricing agreements. Furthermore, digital yuan balances will have the same protection as traditional bank deposits under China's deposit insurance system. This significantly strengthens the status of e-CNY within the banking system.The regulation also provides banks with greater flexibility in terms of balance sheet and liquidity management. Digital yuan balances can be actively used in banks' asset and liability management. For non-bank payment institutions, digital yuan reserves will be treated the same as existing customer reserves and a 100% reserve requirement will apply.Digital yuan usage is quite widespreadAccording to official data, the use of digital yuan in China has reached significant volumes. As of the end of November 2025, a total of 3.48 billion transactions were carried out, with a cumulative transaction volume of 16.7 trillion yuan. While these figures show that the e-CNY infrastructure is widely operational, they also indicate that its adoption rate in daily life remains limited. One of the main reasons for this is the long-standing dominance of mobile payment platforms in China. WeChat Pay and Alipay have largely determined user habits. The digital yuan is struggling to compete with this established ecosystem. Furthermore, concerns about centralized monitoring and anxieties associated with the social credit system are leading some to approach e-CNY with caution. Therefore, it appears that the use of paper money has not completely disappeared. On the other hand, the Beijing administration is also taking steps to expand the international use of the digital yuan. The central bank is planning pilot studies with Singapore to increase the use of e-CNY in cross-border payments. In addition, CBDC-based payment systems are on the agenda with markets such as Thailand, Hong Kong, the United Arab Emirates, and Saudi Arabia. The e-CNY International Operations Center established in Shanghai is also seen as an important part of this global expansion. Despite all these developments, China maintains its strict stance on cryptocurrencies. Cryptocurrency trading and mining activities have been banned in the country since 2021. While the Chinese government adopts blockchain technology as a strategic infrastructure, it prioritizes the digital yuan model, which is entirely controlled by the central bank.
New Crypto Tax Rules in The EU Will Come into Effect on January 1st
The European Union is preparing to implement a new measure that significantly tightens its oversight of the crypto asset market. The long-debated European Union Digital Tax Transparency Regulation (DAC8), adopted by the Union, will come into effect on January 1, 2026. With this regulation, crypto exchanges, brokerage firms, and crypto asset service providers will be obligated to report comprehensive data on their users and transactions to national tax authorities.In an official announcement on December 24th, it was emphasized that the new transparency rules only cover digital assets and create a fundamental change in existing crypto review methods. DAC8 expands the scope of the Directive that already regulates information sharing on tax matters between member states, including crypto assets in the system. Thus, crypto transactions will be placed within a reporting framework similar to traditional financial instruments such as bank accounts and securities.What do the new rules in the EU cover?According to the new rules, crypto exchanges and brokers will be required to collect details such as user credentials, transaction history, transfers, and wallet movements and transmit them to their respective national tax authorities. This data will then be shared with other EU member states. The aim is to monitor cross-border crypto activities more transparently and reduce the risk of tax evasion.DAC8 has also brought about significant debate within the crypto ecosystem. While some sector representatives find the regulation too harsh, EU sources argue that this step fills a long-standing gap. It was previously pointed out that some crypto activities remained outside standard tax reporting systems, and the new regulation aims to make digital asset transactions clearly traceable.On the other hand, DAC8 works together with MiCA, another key EU regulation for crypto, but focuses on different areas. MiCA, approved in April 2023, regulates issues such as the licensing of crypto companies, the protection of customer assets, and market behavior; while DAC8 mainly covers tax compliance and reporting obligations. In short, MiCA aims for market regulation, while DAC8 aims for financial transparency.The transition process to the new regime has also become clear. Crypto companies are required to update all their systems, from reporting infrastructure and internal control mechanisms to customer verification processes, by July 1, 2026. After this date, companies that fail to fulfill their obligations will face penalties according to the national legislation of the relevant country. The situation is also quite clear for individual investors. Tax authorities can cooperate with their counterparts in other EU countries in cases of possible tax evasion or underreporting. DAC8 allows for the freezing or seizure of crypto assets linked to unpaid taxes. Moreover, this authority will be valid even if the assets are held outside the investor's country of residence. The legal basis of DAC8 rests on the Administrative Cooperation Directive, approved by the Council of the 27 EU member states on May 16, 2023. This framework aims to integrate crypto asset service providers into the existing tax reporting system. The regulation is also designed to be compatible with the Crypto Asset Reporting Framework (CARF) and the Common Reporting Standard (CRS) developed by the OECD. According to authorities, the uncontrolled growth of the cryptocurrency market posed a significant obstacle to global tax transparency. With DAC8 and CARF, this sector is planned to be brought under stricter control. While tax years will be subject to reporting from 2026 onwards, individual investors will be required to submit their initial declarations by January 31, 2027. These dates are seen as the beginning of a new era for cryptocurrency taxation in the EU.
The Crypto Era Begins in Russia: Giant Exchanges Are Ready
Russia is preparing for a significant shift in its long-standing cautious and restrictive approach to the cryptocurrency market. The country's two largest exchanges, Moscow Exchange (MOEX) and St. Petersburg Exchange (SPB), have announced they are technically ready to launch cryptocurrency trading. Both exchanges state they can activate digital asset services once the legal framework is clarified.Significant crypto step in RussiaAt the heart of the prepared regulatory framework is a two-tiered market model designed by the Bank of Russia. This structure, spearheaded by the Bank of Russia, aims to legally recognize crypto assets while simultaneously controlling investor access with strict rules. The model makes a clear distinction between unqualified individual investors and professional, high-net-worth investors.The rules for individual investors are quite strict. Accordingly, unqualified investors will be able to invest a maximum of 300,000 rubles (approximately $3,300–$3,800) annually in cryptocurrencies. Furthermore, these investors will be required to pass a mandatory exam measuring their knowledge and risk awareness before entering the crypto markets. Transactions will only be possible through a single licensed brokerage firm, and access will be limited to the most liquid cryptocurrencies such as Bitcoin and Ethereum. Qualified investors, however, will have greater freedom. Professional investors and high-net-worth individuals will not face any transaction limits and will have access to a wider range of crypto assets. However, privacy-focused cryptocurrencies will remain inaccessible even to this group. Additionally, all investors, regardless of their status, will be required to pass risk awareness tests. The timeline for the regulation is also becoming clearer. According to the planned schedule, all necessary legal regulations are targeted to be completed by July 1, 2026. MOEX and SPB are expected to launch crypto trading operations throughout 2026, with the system fully operational and sanctions against unlicensed activities implemented by July 2027. Pilot applications are also being considered as early as March 2025. Statements by Russian Finance Minister Anton Siluanov also reveal that this transformation has political support. Siluanov stated that a cryptocurrency exchange for "super-qualified investors" will be established in cooperation with the Central Bank, and that cryptocurrency transactions will be brought under a legal framework to reduce the informal economy. However, it is specifically emphasized that these transactions will not be permitted for use in daily payments within the country.Under the new regulation, cryptocurrencies will be recognized as "tradable monetary assets." Nevertheless, their use for payments for goods and services within Russia will remain prohibited.
Access to 50 crypto platforms, including Coinbase, is blocked in an Asian country
Cryptocurrency market controls in the Philippines have entered a new phase. Internet service providers (ISPs) in the country have begun blocking access to some major global cryptocurrency exchanges in accordance with instructions from regulatory bodies enforcing local licensing rules. For example, Coinbase and Gemini platforms are inaccessible throughout the Philippines.Restrictions on 50 Crypto Platforms in the PhilippinesAccording to a report in the Manila Bulletin, these blocks were implemented following an official instruction sent by the Philippine National Telecommunications Commission (NTC) to internet service providers. The NTC requested the restriction of access to approximately 50 online cryptocurrency trading platforms that were found to be operating without authorization by the Bangko Sentral ng Pilipinas (BSP), which acts as the central bank of the Philippines.The BSP did not share an official list containing all the blocked platforms. However, with this step, practices that have long been carried out with de facto tolerance in the country are now being replaced by direct control and enforcement. In the current situation, compliance with local licensing requirements stands out as the main criterion for access to the Philippine market. The blocking of Coinbase and Gemini is seen as a continuation of similar steps taken previously in the country. The Philippines made its first serious move against unlicensed cryptocurrency exchanges in December 2023. At that time, Binance was given a 90-day period to comply with local regulations. The Philippine Securities and Exchange Commission (SEC) stated that this period was given to allow investors to withdraw their funds. After the period expired, on March 25, 2024, the NTC instructed local internet providers to block access to Binance. Approximately a month later, the SEC requested Apple and Google to remove the Binance app from their app stores. Following the implementation of the bans, the SEC also announced that it could not officially support any method for users to recover their funds. Recently, the Philippine SEC publicly announced 10 more cryptocurrency exchanges that it deemed operating without licenses. This list included globally known platforms such as OKX, Bybit, and KuCoin. These developments reveal that access to crypto in the country is increasingly tied to a stricter regulatory framework. On the other hand, while the Philippines is cracking down on unlicensed platforms, it is not completely closing the doors to compliant companies. On the contrary, local and international players operating in compliance with regulations continue to launch new crypto products. On November 19, licensed crypto exchange PDAX partnered with payroll service provider Toku to allow remote workers to receive their salaries in stablecoins. This system aims to convert earnings directly to Philippine pesos and reduce remittance fees and delays. Also, on December 8, digital bank GoTyme launched crypto services in the country as part of a partnership with US-based fintech company Alpaca. Thanks to this step, users can buy and store 11 different crypto assets through the bank's mobile application.
SEC files lawsuit against 7 crypto platforms: Allegations of $14 million fraud
The U.S. Securities and Exchange Commission (SEC) has filed charges against seven different entities for a wide-ranging cryptocurrency fraud targeting retail investors. The SEC alleges that these entities collected over $14 million from investors through an organized investment scam conducted via social media and messaging applications.Three cryptocurrency platforms and four investment “clubs” are involved.The lawsuit, filed Monday in Colorado District Court, alleges that three so-called cryptocurrency trading platforms and four investment clubs acted together to implement a scheme described as “investment trust fraud.” According to the SEC, this scheme aimed to gain the trust of investors, particularly through social media advertisements and closed messaging groups. The so-called trading platforms named in the lawsuit are Morocoin Tech Corp., Berge Blockchain Technology Co., Ltd., and Cirkor Inc.; while the investment clubs are AI Wealth Inc., Lane Wealth Inc., AI Investment Education Foundation Ltd., and Zenith Asset Tech Foundation. The regulator argued that these structures did not actually engage in any legitimate activity. According to the SEC, the fraudulent activity took place between January 2024 and January 2025. In the first phase of the process, users were invited to groups under the name "investment club" through advertisements on popular social media platforms. These groups were primarily managed via WhatsApp. Group administrators established trust with participants through one-on-one and group chats, presenting themselves as financial experts or professional investment advisors. In these chat rooms, investors encountered investment advice that, according to the SEC, gave the impression of being AI-powered. The aim of this content was to increase the clubs' credibility by creating the perception of regular and stable earnings. Investors were then asked to open accounts on platforms called Morocoin, Berge, and Cirkor and transfer funds to these accounts. However, according to the regulator, these platforms were entirely fake, and no real trading transactions took place. It was also alleged that the platforms' claims of offering state-licensed and legal cryptocurrency trading services were untrue. In the later stages of the fraud, investors were offered fake "security tokens." The SEC stated that both these tokens and the companies allegedly issuing them were fictitious. When investors tried to withdraw their money, they encountered a new obstacle. Allegedly, the suspects further increased the losses by demanding additional and upfront fees for withdrawals. The SEC announced that at least $14 million in total was misused through these methods, and that the funds were channeled through bank accounts and cryptocurrency wallets abroad. Laura D’Allaird, Head of the SEC's Cyber and Emerging Technologies Division, emphasized in a statement that this case highlights a widespread fraud pattern targeting retail investors. On the same day, the agency also issued an investor warning, reminding investors to be cautious about investment offers presented through social media and group chats. The SEC recommended that investors verify the offers and individuals they receive through Investor.gov.
SEC Announces Crypto Custody Requirements: 5 Critical Rules
The Trading and Markets Division of the U.S. Securities and Exchange Commission (SEC) has released new guidance aimed at reducing uncertainty regarding the custody of crypto asset securities. The statement clarifies how the “physical possession or control” requirement applicable to client assets by broker-dealers applies to tokenized assets residing on the blockchain. Focusing specifically on the physical possession requirements under Rule 15c3-3, the guidance details the conditions under which brokerage firms dealing with crypto assets can be considered compliant. The SEC statement defines “crypto asset securities” as tokenized representations of shares or debt instruments recorded on distributed ledger technology. This definition encompasses a rapidly growing area recently, with the migration of traditional financial products to the blockchain. The Trading and Markets Division emphasizes that the guidance aims to provide greater clarity on the application of existing federal securities laws to crypto assets. It also explicitly states that the guidance was prepared as a temporary step in response to requests from market participants. The new statement targets paragraph (b)(1) of Rule 15c3-3 under the Securities Exchange Act of 1934. This provision requires broker-dealers to immediately establish physical possession or control of fully paid and over-collateralized securities held in client accounts. The SEC states that the published guidance does not redefine the concept of control in general terms, but only offers an opinion on the physical possession aspect. It is also specifically emphasized that the statement is not a binding regulation, does not impose new obligations, and does not have legal enforcement.Five special cases listedThe most important element that stands out in the SEC's guidance is the listing of five special cases in which crypto assets can be considered within the scope of physical possession. Accordingly, for a broker-dealer to be able to offer direct custody services, they must first have immediate access to the relevant crypto asset and be technically capable of making transfers on the blockchain. This condition implies exclusive control over the private keys. The second condition requires brokerage firms to conduct comprehensive assessments of the blockchain network at reasonable intervals before and after commencing custody services. These assessments highlight elements such as network reliability, transaction speed and capacity, scalability, resilience to potential failures, and security features. The consensus mechanism, code transparency, maintenance complexity, and documentation quality are also among the considerations. Governance processes such as protocol updates, hard forks, airdrops, and token exchanges are also expected to be closely monitored. The third condition stipulates that the broker-dealer cannot claim physical possession if they are aware of serious security vulnerabilities or operational weaknesses in the blockchain they are custodians of. The fourth condition requires the implementation of strong policies and controls, consistent with industry best practices, to protect private keys against theft, loss, or unauthorized use. The fifth and final condition requires the existence of pre-planned procedures to be activated in the event of blockchain failures, network attacks, or similar disruptions. These plans also cover compliance with legal demands such as asset freezing, seizure, or token burning in accordance with court orders. SEC official Hester M. Peirce welcomed the guidance, which was released in a separate statement. Peirce stated that the text provides important clarity, especially for broker-dealers who want to offer crypto asset custody services. Noting that the emphasis on protecting private keys is consistent with established industry best practices, Peirce urged the Trading and Markets Division to promptly submit proposals to the Commission to update Rule 15c3-3 to fully cover crypto asset custody.
Fed Gives Green Light to Crypto: 2023 Restrictions Lifted
The US Federal Reserve (Fed) has withdrawn its 2023 guidance limiting interaction with crypto assets, marking a significant shift in its approach to innovation within the banking system. This decision allows banks under Fed supervision, particularly uninsured state banks, to operate more flexibly with cryptocurrencies and similar digital financial products. This move comes as US regulators have recently adopted a more positive stance towards digital assets, making it a closely watched development for the sector.What did the 2023 guidance cover?The guidance, published in 2023, stipulated that uninsured banks would be subject to the same rules as banks with federal deposit insurance. Based on the principle that "like pays like pays," this approach effectively prevented uninsured banks from conducting activities not permitted for national banks, such as crypto services. This created significant restrictions, particularly for crypto-focused banks, in terms of Fed membership and access to central bank systems. The Fed cited significant changes in the financial system over the past two years and the institution's evolving understanding of innovative products as reasons for withdrawing the guidance. The statement read, "The 2023 policy statement is no longer appropriate and has therefore been withdrawn." According to the Fed, the current framework is outdated in the face of rapidly evolving financial technologies. One of the first reactions from the sector came from Caitlin Long, CEO of the crypto-friendly Custodia Bank. In a post on social media, Long reminded that the 2023 guidance was used as the primary reason for rejecting her bank's application to open a "master account" with the Fed. A master account allows a financial institution to hold an account directly with the Fed and access the central bank's payment systems without the need for an intermediary. Long argued that the Fed used the guidance as a basis for the Custodia decision even before it officially came into effect, claiming this was illegal. The Fed's new move was not limited to simply revoking the old guidance. The institution also released a new policy framework for “innovative activities” for both insured and uninsured state banks under Fed supervision. This framework allows banks to launch products and services based on new technologies, such as cryptocurrencies, provided they meet specified risk management and compliance standards. Fed Vice Chair for Supervision Michelle Bowman emphasized that the goal of the new approach is to keep the banking sector both safe and modern. According to Bowman, when implemented responsibly, new technologies increase efficiency for banks and enable them to offer better products to customers. The Fed's goal is to encourage innovation without compromising the principles of financial stability and soundness. However, the decision was not unanimous within the Fed. Fed Board Member Michael Barr dissented, arguing that maintaining the principle of level treatment among banks is critical to preventing regulatory arbitrage. He stated that the new policy could encourage banks to adopt looser regulations, creating incentives incompatible with financial stability. Barr has been associated with the “Operation Chokepoint 2.0” debates in the past, which aimed to exclude crypto companies from the banking system, but he has also served as an advisor at Ripple and is known for supporting responsible stablecoin regulation.
