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SEC Greenlights Crypto: State Trusts Grant Custody Authority
The U.S. Securities and Exchange Commission (SEC) has made a significant decision regarding digital assets. In a no-action letter, the agency announced that investment advisors can use state-licensed trust companies as "qualified custodians." This decision paves the way for institutional investors to store crypto assets like Bitcoin and Ethereum more securely and legally. A Solution to Long-Term UncertaintyFor years, one of the biggest challenges for investment advisors has been the uncertainty surrounding which institutions can hold digital assets. Traditional regulations have deemed only large federal banks and certain large corporations authorized for custody. The SEC's new approach allows state-licensed trust companies to offer the same custody services, provided they meet strict oversight and security requirements.This step allows advisors under the Investment Advisers Act of 1940 to hold crypto assets under regulated conditions, just as they do with cash and securities. However, companies must adhere to strict requirements such as cold storage, independent auditing, cybersecurity measures, and the separation of client assets from company funds.Initial Industry ReactionsBloomberg Intelligence analyst James Seyffart described the decision as "a textbook example of the clarity expected for the digital asset space." According to Seyffart, the industry has long been demanding this recognition. In the US, banks were indirectly pressured to limit their services to crypto companies in recent years during a process known as "Operation Choke Point 2.0." This new decision demonstrates a softening of the regulator's approach and their intention to integrate crypto into the financial system in more structured ways.Some states, such as Wyoming, had already pioneered similar regulations for crypto assets years ago. Senator Cynthia Lummis welcomed the SEC's move in a social media post, saying, "Wyoming was a pioneer in digital asset oversight in 2020. It's gratifying that the SEC has recognized this approach at this point." New Opportunity for Bitcoin and EthereumThe decision could facilitate institutional investors' access to cryptocurrencies. Bitcoin's positioning as "digital gold," in particular, is further strengthened by this development. Considering that gold is already a standard asset class in regulated funds, a similar inclusion of Bitcoin and Ethereum in portfolios seems more likely.Once the "custodial uncertainty," one of the biggest obstacles for institutions, is eliminated, investment funds and advisors are expected to be more comfortable investing in Bitcoin and Ethereum. This could, in the long run, contribute to accelerating ETF approvals, diversifying institutional strategies, and increasing market confidence.The SEC emphasized that the published letter is not a formal change in the law, but merely reflects the agency's current "enforcement position." Therefore, the decision is subject to revision if circumstances change in the future. Investment advisors are required to disclose risks to their clients and confirm annually that their custodian is authorized.
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1 Oct 2025
MASAK Gains Authority to Freeze Cryptocurrency Accounts
New regulations closely related to the cryptocurrency market are under development in Turkey. According to Bloomberg, the government is working on a draft law that would grant the Financial Crimes Investigation Board (MASAK) the authority to freeze bank and crypto accounts. The bill aims to strengthen the fight against money laundering and financial crimes while also maintaining Turkey's compliance with international financial standards.MASAK will have authority over accounts on cryptocurrency exchangesAccording to the draft, MASAK will not be limited to banks; it will also have the authority to close suspicious accounts, set transaction limits, or blacklist crypto wallets at electronic money institutions, payment systems, and cryptocurrency exchanges. This will allow the board to instantly stop suspicious fund movements and take on a more effective role in preventing the financing of illegal activities.One of the areas the regulation focuses on is the recently increasing practice of "rental accounts." In this method, criminal organizations pay individuals and use their bank or crypto accounts for activities such as illegal betting and fraud. The new law aims to quickly identify and close such accounts.The Financial Action Task Force (FATF), of which Turkey is a member, removed the country from its gray list in June 2024. The new bill is considered a step towards ensuring continued international compliance within this framework. The Ministry of Treasury and Finance is also reportedly working on regulations that will require crypto exchanges to collect more detailed information about user transactions and restrict stablecoin transfers.From a crypto market perspective, these developments mean stricter oversight and compliance obligations. Millions of people in Turkey currently trade crypto assets. According to the Global Crypto Adoption Index published by Chainalysis, Turkey ranks 14th globally. The ongoing depreciation of the Turkish lira since 2018, in particular, has driven citizens to alternative investment and savings instruments. Dollar-pegged stablecoins and Bitcoin have become stores of value for many investors.The figures are striking to illustrate the lira's depreciation. In 2020, one Bitcoin was worth approximately 100,000 TL, but today this figure has surpassed 4.6 million TL. This clearly demonstrates both the global appreciation of Bitcoin and the sharp decline of the lira over the years.Consequently, the draft law appears poised to impose new rules on the crypto ecosystem in Turkey. Expanding the powers of the Financial Crimes Investigation Board (MASAK) could strengthen the state's grip on money laundering and illicit financial activities while also creating a stricter oversight environment for investors. While crypto adoption continues to grow rapidly, users will need to adapt to stricter regulations going forward.
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30 Sep 2025
SEC Puts Brakes on Company That Announces Bitcoin, Ethereum, and Solana Acquisition
The U.S. Securities and Exchange Commission (SEC) temporarily suspended trading in QMMM Holdings shares on September 29th following extraordinary price fluctuations. The Hong Kong-based company's announcement that it would create a $100 million cryptocurrency treasury sent its share price soaring; the shares quickly gained over 1,000%, catching regulators' attention.QMMM on SEC's radar: "Suspicious market activity" warningQMMM is traded on Nasdaq through a Cayman Islands-based holding company. The company's announcement of a large-scale investment in Bitcoin, Ethereum, and Solana has generated strong demand from individual investors. Analysts believe this development further demonstrates how the diversification of traditional companies into cryptocurrencies can cause sharp market volatility.The SEC announced that QMMM shares have been suspended until October 10th. The institution stated that manipulations made by "unidentified individuals" on social media unusually inflated share volume and price, increasing the likelihood of creating artificial demand. QMMM's shares, which were below $12 at the beginning of September, skyrocketed to $200 in the last week of the month. Experts say this scenario is reminiscent of manipulation tactics known as "pump and dump." The SEC and other US financial regulatory agencies (especially Finra) note that similar situations have increased recently, with unusual trading observed in some company shares ahead of crypto asset announcements.Investors are uneasy, the company remains silentQMMM has yet to issue an official statement. The company's shift from digital advertising to crypto assets earlier this year was interpreted as the first step in a strategic transformation. However, uncertainty prevails among investors following the trading halt.Market analysts suggest that such developments could temporarily curb the trend of institutional crypto treasury. The shift towards cryptocurrencies by mid-sized companies quickly creates significant individual buying waves; However, this also accelerates regulatory scrutiny.Institutional crypto adoption on the riseDespite this negative outlook, institutional crypto adoption continues to grow. According to current data, approximately 200 publicly traded companies worldwide hold over $112 billion in digital assets on their balance sheets. These companies' Bitcoin reserves exceed 1 million BTC, representing 4.7% of the total supply. Companies' total holdings of altcoins like Ethereum and Solana have also surpassed $10 billion. Analysts agree that while the QMMM example may create uncertainty in the short term, it will likely increase the use of cryptocurrencies in corporate treasuries in the long term. In addition to Bitcoin and Ethereum, alternatives like Solana are also expected to gain a greater presence in institutional portfolios.While the SEC's temporary trading ban on QMMM has caused market volatility, institutional interest is expected to remain strong. With tightening regulatory oversight in the coming period, companies may be required to conduct their crypto investments in a more transparent and controlled manner.
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30 Sep 2025
Historic Step from CFTC: Stablecoins Can Now Be Used as Collateral
The Commodity Futures Trading Commission (CFTC), the US derivatives regulator, has launched a new initiative to allow stablecoins to be used as tokenized collateral.CFTC Issues Critical Decision on StablecoinsCaroline Pham, the commission's interim chair, has long advocated for stablecoins as a "killer app" in collateral management. In a statement, Pham stated that they will work closely with the industry and aim to develop policies that will enable the use of tokenized assets like stablecoins as collateral.Last year, Pham proposed a similar regulatory "sandbox" idea and advocated for pilot programs for stablecoin-supported tokenization. Now, due to the lengthy and controversial confirmation process for Brian Quintenz, nominated by President Donald Trump, Pham has taken the initiative as interim chair.Stablecoins are now covered by the GENIUS Act, the first comprehensive legislation regulating the stablecoin market in the US, passed last summer. These dollar-denominated digital assets form the backbone of liquidity in crypto markets and play a critical role in smart contract-based financial transactions. The CFTC's latest statement also included messages of support from executives at Circle, Coinbase, and Ripple.As part of the new initiative, the agency has begun collecting written comments from market participants. Participants have until October 20th to submit their comments. Last year, the CFTC's Global Markets Advisory Committee (GMAC) also recommended expanding the use of non-cash collateral through distributed ledger technology in its advisory report.Market experts believe the use of tokenized collateral in derivatives contracts could offer significant advantages. Jack McDonald, Vice President of Ripple Stablecoin, argued that this approach could increase efficiency and transparency, and that collateral would make risk management in derivatives contracts more reliable. Collateral is critical for securing the obligations of parties in futures or swap agreements.This step by the CFTC is considered a significant step toward modernizing capital markets in the US. In particular, the President's Working Group's report published last year called for the inclusion of tokenized non-cash collateral in the regulatory margin system.Caroline Pham believes these initiatives could spark a new wave of growth in the US economy. According to Pham, markets will be able to use capital more efficiently and support economic growth thanks to tokenized collateral. She also emphasized the sector's readiness for this transformation, stating, "The public has spoken: tokenized markets are here and represent the future."You can see the largest stablecoins in the table below:
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24 Sep 2025
White House Crypto Council Sets Date for Regulatory Package
Patrick Witt, Executive Director of the White House Cryptoassets Advisory Council, announced that he expects the comprehensive regulatory package regarding crypto market structure in the US to be enacted before the end of 2025. Witt said they are working in coordination with the House of Representatives and the Senate to ensure the regulation reaches President Donald Trump's desk as quickly as possible.Speaking at the Impact conference of Korea Blockchain Week 2025, Witt said, "We are clearing the bottlenecks in the process, acting as arbitrators when necessary, and respecting the process. We are optimistic that we will complete it by the end of the year." According to Witt, the goal is to establish a clear framework to attract crypto companies back to the US and ensure the sector's domestic development.Legal Framework Becoming ClearerThe regulatory package, dubbed the "crypto market structure bill," is a consolidation of several bills prepared in different stages. One of the most prominent is the Republican-led CLARITY Act, which passed the House of Representatives with bipartisan support in July. Earlier this month, Senate Republicans introduced another bill, the Responsible Financial Innovation Act. The primary goal of these initiatives is to establish a comprehensive regulatory framework for digital assets. One of the most critical issues is determining which agency will be responsible for regulating crypto assets. The bills aim to clarify the division of authority between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).The legislative initiative builds on the GENIUS Act, passed in the first half of the year. This legislation, by establishing ground rules specifically for stablecoins, was a milestone for the sector.“The US is open to crypto”Witt also emphasized the White House’s desire to bring digital asset companies back into the country: “The US is open to business, and we are advancing full speed in crypto. We are working to bring back companies that had moved abroad with the steps taken by the previous administration.”Witt stated that the White House Crypto Council is available to companies operating in the sector at any time, saying, “It is crucial for us to engage directly with innovators so we can make the right and positive decisions. When we meet with them, we can see the real situation on the ground more clearly.” Harry Jung, vice president of the Council, similarly emphasized that establishing contacts with entrepreneurs will accelerate the regulatory process.The US's long-awaited establishment of a legal framework for crypto assets could serve as a guide for global markets. The regulations, expected to be passed by the end of the year, are seen as a critical turning point for the sector.
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23 Sep 2025
SEC Announces New Rule for Crypto ETFs: Deadline Reduced to 75 Days
The U.S. Securities and Exchange Commission (SEC) has approved new rules that significantly accelerate the listing process for crypto exchange-traded funds (ETFs). By adopting the "generic" listing standards of Nasdaq, NYSE Arca, and Cboe BZX, the regulator has paved the way for spot crypto and other commodity-based ETFs to enter the market without the months-long wait for individual 19b-4 filings. According to Reuters, this step shortens the approval process from a maximum of 240 days to a minimum of 75 days. In a document released on Wednesday, the SEC noted that the decision was made through accelerated approval "before the 30-day public comment period expires." The agency emphasized that the amendments submitted by the exchanges clarify definitions and include technical corrections that do not change the substance of the proposal.The new framework authorizes exchanges to list products with "generic standards" that meet certain criteria under Rule 14.11(e)(4), which governs Commodity-Based Trust Shares. This eliminates the need for a separate 19b-4 filing for each product, allowing for market launch in as little as 75 days. According to The Block, the expedited approval will significantly shorten the processing time for the numerous pending crypto ETF filings.This development opens the door to ETFs based on assets other than Bitcoin and Ethereum. Reuters notes that products indexed to major altcoins like Solana and XRP could arrive in the first wave, while the market could see new launches as early as October. Industry representatives believe the decision represents a turning point for digital asset products in the US by sidelining the "dual application and long waiting period" system.SEC Chairman Paul Atkins stated that the approval "maximizes investor choice, encourages innovation, and reduces barriers to accessing digital asset products in the US's trusted capital markets." Internal dissenting opinions noted that expediting the authorization of spot crypto ETPs through exchange rules could have broader implications than previous practices. On the same day, the SEC also announced the listing and trading approval of the Grayscale Digital Large Cap Fund. The fund's composition is primarily Bitcoin (~80%) and Ethereum (~11%), while Solana, Cardano, and XRP are all in the portfolio with single-digit percentages.What will change?The new model allows exchanges to quickly list products that meet predefined criteria under the "general standard." This allows products that meet technical compliance to begin trading quickly, rather than filings bogged down in application-comment-extension cycles. This could increase product diversity, broaden institutional and retail investors' access to crypto assets through regulated channels, and reduce cost and time pressures on the part of the companies applying.What are the risks?The increased speed requires the seamless implementation of custody-sharing agreements, market integrity, and custody processes. Unless the legal and operational infrastructure is in place, objections and requests for additional clarification may arise during the "fast approval-fast launch" process. Still, market players are of the view that the current roadmap could “open the market widely.”
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18 Sep 2025
Coinbase Calls on Justice Department to Regulate Crypto
US-based crypto exchange Coinbase has sent a formal letter to the Department of Justice (DOJ) seeking to curb fragmented state regulations that negatively impact crypto companies. The company argues that federal authorities should take a stronger stance against contradictory state-level measures.The letter, signed by Coinbase's Chief Legal Officer Paul Grewal, stated that crypto startups are being hampered by "innovative but misconstrued securities laws." Grewal stated that these state-wide regulations, in particular, harm both companies and users. Oregon Lawsuit in Crypto MarketsCoinbase's move stems from a lawsuit filed in Oregon in April. Oregon Attorney General Dan Rayfield filed a lawsuit against Coinbase for violating securities laws. The charges allege the exchange encouraged the sale of unregistered crypto assets.However, just a few months earlier, in February 2025, a similar lawsuit filed against Coinbase by the Securities and Exchange Commission (SEC) was dismissed. The SEC had accused the exchange of operating as an unregistered brokerage, exchange, and clearinghouse. While the dismissal of the case was considered a significant win for Coinbase, the new lawsuit filed by Oregon has created a serious conflict at the federal and state levels.Paul Grewal highlighted this point in a post on the social media platform X, saying, “If Oregon can sue us for a service that is legal at the federal level, we have a serious problem.” According to Grewal, the current regulatory system is not only inefficient but also slows innovation and harms consumers.Tensions exist between state and federal authoritiesOregon Attorney General Rayfield, however, takes a different view. He believes that federal regulators are backing away from important cases under the new administration, and states should fill this void. Rayfield stated, “If federal agencies are backing down, states should step in.”This statement also resonated with the political climate in Washington. The long-standing inaction by Congress on crypto regulation is leading states to take more aggressive stances. Coinbase Offers SolutionIn its letter, Coinbase issued a clear call to the Department of Justice: Congress must step in and enact comprehensive federal regulations that override state laws. The company stated that initiatives like the CLARITY Act and the Responsible Financial Innovation Act of 2025, currently under consideration, offer significant opportunities to address this issue.In this process, Coinbase not only defended itself; the company also brought the Oregon lawsuit to federal court and filed a separate lawsuit against Governor Tina Kotek. The goal is to clarify regulatory uncertainties and resolve state-federal conflicts through litigation.
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17 Sep 2025
Critical Summit in London: US-UK Collaboration on Crypto on the Table
The US and the UK are preparing for historic cooperation on cryptocurrency regulation. At a high-level meeting in London, UK Chancellor of the Exchequer Rachel Reeves and US Treasury Secretary Scott Bessent discussed the idea of establishing a common regulatory framework. The meeting's inclusion on the agenda is considered a significant milestone for the future of global digital finance.According to the Financial Times, this framework could both accelerate the adoption of crypto assets and bolster institutional investor confidence. It could also pave the way for the US and UK to take a leading role in setting global standards by providing a roadmap for international policy. While official details have not yet been released, expectations are high.Many financial giants attended the meetingThe meeting was attended not only by regulators but also by leading players in both traditional and digital finance. Banks such as Bank of America, Barclays, and Citi, as well as Coinbase, Circle, and Ripple, were also at the table. This situation further demonstrated that the crypto world is now at the center of finance. Ripple's UK and Europe Director, Cassie Craddock, stated that the collaboration could be a "template for international cooperation," emphasizing that this step could unlock the full potential of blockchain for both economies.The UK has long aimed to become the global hub for digital assets. As a strong center of traditional finance, working more closely with the US could give London an advantage in the face of rapidly advancing regulatory initiatives in the European Union and Asia. Last week, representatives of the crypto industry called on the UK government to include stablecoins and tokenization in the US-UK Technology Bridge initiative. This bridge already encompasses artificial intelligence, cybersecurity, and quantum computing. Excluding the UK from digital finance could set the UK back from competition.The inclusion of stablecoins, in particular, is seen as a critical step in the global adoption process. Hester Peirce, a member of the US Securities and Exchange Commission (SEC), suggested that a "cross-border sandbox" could be created between the two countries. This allows companies to operate under joint oversight for a certain period of time, providing both clarity for companies and reducing regulatory hurdles.The public is not indifferent to cryptocurrencies either. According to a survey conducted by Aviva, 27 percent of adults say they would consider including crypto in their retirement funds. Furthermore, one in five people, approximately 11.6 million people, have invested in crypto assets at least once in their lives. The prospect of high returns is keeping interest alive despite the risks.The timing of the meeting is also noteworthy. These contacts, which took place during US President Donald Trump's visit to the UK, demonstrate political support. If this collaboration materializes, crypto adoption could accelerate, institutional trust could strengthen, and the US and UK could become the countries shaping the future of blockchain-based finance.
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17 Sep 2025
Breaking News in Crypto Regulation: Democrats' 7-Point Plan
A significant step has been taken towards the long-discussed regulation of the crypto market in the US. Twelve Democratic senators announced a comprehensive framework consisting of seven topics on September 9th. The framework focuses on investor protection, market transparency, and the division of responsibilities among regulatory agencies. This move by Democrats is seen as an alternative to the Republicans' Clarity Act. The senators emphasize that the approximately $4 trillion global crypto market cannot remain in limbo. The framework grants the CFTC greater authority over the spot market for non-securities tokens and stipulates that the SEC will oversee securities-qualified digital assets. It also highlights disclosure requirements for token companies and specific rules for exchanges and custodians.DeFi and stablecoin proposals have been submitted.The group, including Senators Ruben Gallego, Mark Warner, Kirsten Gillibrand, and Cory Booker, emphasized that the global crypto market, approaching $4 trillion, cannot remain in a "regulatory vacuum."The framework focuses on investor protections, transparency, and anti-manipulation measures. The CFTC is expected to be given greater authority over the spot market for tokens that are not considered securities.The SEC will also be involved in tokens that are considered securitiesIt also details disclosure obligations for token issuers, special rules for exchanges and custodians, and AML and sanctions compliance.One of the most prominent topics in the bill is decentralized finance (DeFi). Democrats, stating that they consider the DeFi space risky for money laundering and sanctions evasion, are proposing new oversight mechanisms. However, it is not yet clear whether this oversight will extend to protocol developers.A notable provision in the stablecoin regulations prohibits issuers from offering direct interest or returns. This approach differs from the more flexible Republican stance, aiming to impose tighter control on the stablecoin market.Ethics and political aspects are on the agendaThe most controversial aspect of the framework is ethics regulations. Democratic senators are proposing to ban incumbent politicians and their families from profiting from crypto projects. It also requires politicians to transparently declare their digital asset holdings.This section specifically addresses the cryptocurrency initiatives of US President Donald Trump and his family. Democrats argue that these activities lead to an erosion of trust. Republicans, however, distance themselves from the ethics aspect and emphasize the need for a swift completion of the process.What will happen next?The Democrats' proposal has been brought to the Senate floor following the passage of the Clarity Act in the House of Representatives. Both bills share common ground regarding token classification and the jurisdiction of regulatory bodies. However, the approach to DeFi, ethical rules, and the pace of the legislative process are dividing the two sides.Intense negotiations between the parties are expected in the Senate Banking Committee in the coming weeks. If a compromise can be reached, the US crypto market could achieve clearer rules, closing a years-long regulatory gap.
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9 Sep 2025
Historical Statement from SEC and CFTC: Watch Out for September 29 for Cryptos
The two major US market regulators, the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), have issued a joint statement of critical importance for financial markets. The statement, signed by SEC Chairman Paul S. Atkins and CFTC interim Chair Caroline D. Pham, aims to usher in an "era of harmonized regulation," particularly for crypto assets and next-generation financial products.Regulatory harmonization emphasizedThe statement emphasized that the securities and commodity derivatives markets are increasingly intersecting, making it imperative for both institutions to act together. Officials acknowledged that a lack of coordination in the past created "regulatory gaps" and slowed innovation, and announced that this era is now over. Atkins and Pham stated, "Today is a new beginning. The uncertainties that hindered innovation in US markets are history. The SEC and CFTC will act in concert from now on."Will a clear roadmap be released for crypto assets?The two institutions' statement highlighted the joint staff memorandum on spot crypto asset products as a first step. Furthermore, the main areas planned for future harmonized regulation were listed as follows:24/7 Markets: Expanding trading hours in US markets will be discussed, in addition to assets that are currently traded continuously, such as crypto and foreign exchange.Event Contracts: Clarifying investor access to these products, particularly given the growth of prediction markets, is on the agenda.Perpetual Contracts: The possibility of offering future-free derivative products, popular on offshore crypto exchanges, under US regulation may be paved.Portfolio Collateralization: The plan is to increase capital efficiency by netting participants' positions across different markets.DeFi and Innovation Exceptions: Creating safe harbors for decentralized finance protocols is considered critical to keeping innovation in the US.A joint roundtable meeting will be held on September 29.The SEC and CFTC will formalize the process with a "compliance and innovation" roundtable meeting to be held on September 29, 2025. At this meeting, both industry representatives and public authorities will discuss the details of harmonized regulation.The officials aim to re-entice innovative financial products that have been relocated outside the US due to fragmented and contradictory regulations. The statement stated, "For many years, the US was a center of financial innovation. However, recently, products and initiatives have shifted abroad. We are determined to reverse this trend."Judging by the tone of the statement, the two agencies' shared goal is not only to regulate cryptocurrency markets but also to reassert the US's leadership in global financial innovation. The regulators indicate that a clearer, more predictable, and more innovative framework will be created without compromising investor protection and market integrity.
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5 Sep 2025
Japan's New Crypto Regulation: Called a 'Security,' Stricter Rules Are Coming
Japan is preparing new and stricter regulation for the cryptoasset market. The country's financial regulator, the Financial Services Agency (FSA), published a report proposing that cryptocurrencies be removed from the current Payment Services Act and regulated under the Financial Instruments and Exchanges Act (FIEA). This step aims to place crypto assets more in the same category as securities and strengthen investor protection.A clear message from the FSA: "Crypto issues are similar to securities"The report noted that many of the problems experienced in the crypto market are similar to those encountered in the securities market for years. The main problems highlighted by the FSA were vague white papers, inaccurate or incomplete information, unregistered activities, fraud cases, low risk tolerance, and exchange security vulnerabilities.Therefore, the agency stated that it would be appropriate to apply the same oversight and enforcement mechanisms currently offered by the FIEA to crypto. However, it should be noted that this report is not yet binding. The document in question is a draft of an idea submitted by the FSA secretariat to the Financial System Council. The final decision will be made by the government.Crypto on the rise in JapanThe report also highlights the growing economic importance of crypto assets in Japan. The total number of accounts opened on crypto exchanges in the country has surpassed 12 million. The total value of user deposits has exceeded 5 trillion yen (approximately $33.7 billion). This figure means that nearly one in 10 people has a crypto account.Meanwhile, the vast majority of investors in Japan engage in small-scale transactions. More than 80% of individual accounts have balances below $675. Furthermore, 70% of crypto investors are middle-income earners, and 86% are investing with the expectation of long-term price appreciation.Supportive messages from the governmentJapanese Finance Minister Katsunobu Kato also drew attention last month by stating that crypto assets could be included in diversified portfolios. While acknowledging high volatility, Kato emphasized that with proper regulations, the crypto market could become a safe haven for investors.What new rules might entail?If crypto is included in the FIEA:Issuers will be required to disclose detailed information in public offerings and secondary market transactions, similar to securities.Brokerage firms and brokers will be subject to stricter licensing and oversight.Strict measures will be implemented against unfair transactions and manipulation.Courts will be able to issue swift injunctions and preliminary injunctions against unregistered activities.
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4 Sep 2025
Famous Cryptocurrency Exchange Fined $2.6 Million in the Netherlands
International cryptocurrency exchange OKX has been fined €2.25 million ($2.6 million) by the Dutch Central Bank (DNB) for failing to comply with Dutch regulations. According to a statement from the DNB, OKX was found to have operated in the Netherlands without the required registration between July 2023 and August 2024.Registration Requirement in the NetherlandsThe Netherlands introduced a registration requirement for the cryptocurrency sector in 2020 under anti-money laundering (AML) regulations. According to this rule, companies wishing to offer crypto services in the country must register with the DNB. The statement noted that OKX operated under the name Aux Cayes Fintech Co. during this period and failed to comply with this requirement.An OKX spokesperson stated that the fine "relates to an old registration issue that has long been resolved and has no impact on customers." The company argued that it had now transferred its Dutch users to its European subsidiary, which is licensed under the MiCA (Crypto Assets Markets) Act, and that the fine was the lowest DNB had ever imposed on a major platform.OKX has been fined beforeThis fine in the Netherlands is not the first that OKX has faced this year. The exchange has been facing repeated penalties in various countries for its lack of compliance and anti-money laundering regulations. For example:US: In February, US authorities fined OKX's Seychelles subsidiary $504 million. The investigation revealed that OKX processed more than $1 trillion in transactions for US users between 2018 and 2024. Over $5 billion of these transactions were related to criminal proceeds and suspicious activities. Malta: In April, the Financial Intelligence Analysis Unit (FIAU) in Malta fined OKX €1.1 million for what it described as "serious and systematic" compliance violations.Thailand: That same month, the Thai Securities and Exchange Commission (SEC) filed criminal charges against OKX and nine others for operating an unauthorized digital asset exchange.Philippines: Last month, the Philippine Securities and Exchange Commission (SEC) issued a warning to 10 major cryptocurrency exchanges, including OKX, for continuing to offer services to Filipino users without the necessary authorization.Crypto Regulation Evolving in the NetherlandsThe Netherlands is actively regulating the cryptocurrency market. DNB, which previously fined Crypto.com €2.85 million and Kraken €4 million, continues to monitor the market. Meanwhile, the Dutch government is developing legislation that would require crypto service providers to share user data with tax authorities. Despite this strict regulatory environment, the crypto sector in the Netherlands continues to thrive. Last month, Dutch crypto service provider Amdax announced plans to establish a Bitcoin treasury company on Amsterdam's Euronext exchange. Also in late June, local crypto exchange Bitvavo was granted a MiCA license. Last year, major players like Kraken announced the acquisition of a local crypto firm called Coin Meester to expand their presence in the Netherlands.Furthermore, Dutch and US authorities announced the closure of "VerifTools," an online store selling fake IDs, as part of their efforts to combat illicit crypto use. This platform, which accepts digital asset payments, sold fake documents for as little as $9. As part of the investigation, two physical servers located in Amsterdam and 21 virtual servers supporting the operation were seized.
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3 Sep 2025
SEC and CFTC Joint Statement: Green Light for Crypto Trading
A historic step has been taken for the crypto markets: The U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) clarified in a joint statement on Tuesday that there are no legal impediments to registered exchanges facilitating the trading of certain spot crypto asset products. An End to Regulatory ConfusionYears of regulatory uncertainty have prevented traditional financial giants in the U.S. from fully entering the cryptocurrency market. Jurisdictional battles over whether cryptocurrencies are securities or commodities have limited innovation and slowed the sector's development. However, this joint statement, released as part of the SEC's "Project Crypto" and the CFTC's "Crypto Sprint" initiatives, is the most concrete step toward clearing up this confusion. According to this statement, currently registered exchanges, including SEC-registered National Securities Exchanges (NSEs), CFTC-registered Designated Contract Markets (DCMs), and Foreign Boards of Trade (FBOTs), will now be able to list and facilitate trading of certain spot crypto products. This paves the way for major exchanges like Nasdaq and the New York Stock Exchange to also offer direct trading of leading digital assets like Bitcoin and Ethereum.Aiming to Make America Crypto CapitalThe joint statement is being interpreted as a step that reinforces President Donald Trump's goal of making the US "the crypto capital of the world" under his administration. SEC Chairman Paul Atkins described this development as "a significant step in bringing innovation in crypto asset markets back to the United States," emphasizing that market participants should be able to freely choose where to buy and sell spot crypto assets.CFTC Acting Chairwoman Caroline D. Pham stated that the previous administration sent "mixed signals" and a clear message that innovation was not welcome, adding that this era is over. Pham stated that this joint venture is part of a strategy to consolidate US global leadership and support the development of blockchain technology.Positive Reaction from the IndustryMarket experts are calling this decision "historic." Alexander Blume, CEO of Two Prime Digital Assets, stated that this decision will open the door to greater mainstream adoption by providing direct access to digital assets on platforms where trillions of dollars are already held in traditional markets. VanEck digital assets researcher Matthew Sigel, in a post on the X platform, predicted that exchanges such as the NYSE, Nasdaq, CBOE, and CME will soon begin spot trading for Bitcoin and Ethereum.This development could also mark the beginning of a new era for crypto exchanges like Coinbase, Kraken, and Gemini, which already offer spot crypto trading but are not NSEs or DCMs. The SEC's previous dismissal of its lawsuits against these exchanges was seen as a sign that regulators were adopting a more conciliatory approach, and this latest statement reinforces this theory. Gerald Gallagher, general counsel for Sei Protocol, commented on X, emphasizing the importance of this collaboration, saying, "The turf wars are ending. The SEC and the CFTC are rowing in the same direction." Gallagher added that this decision demonstrates the US's commitment to building high-performance crypto trading infrastructure. With this move, investors and market participants may have a clearer view of the future of digital assets.
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3 Sep 2025
US Congress Focuses on Crypto Regulation: Legislation Expected by Year's End
The US Congress has returned from recess, and the long-awaited "market structure" regulations for the cryptocurrency market have taken center stage. According to Eleanor Terrett, a journalist who closely follows crypto regulations, the Senate Banking Committee is expected to begin formal deliberations on the current draft by the end of September, while the Senate Agriculture Committee is preparing to release its own draft, encompassing the CFTC's jurisdiction, soon.Could be enacted by the end of the yearWyoming Senator Cynthia Lummis, known for her pro-crypto stance, stated at the Wyoming Blockchain Symposium last month that she expects the market structure bill to be signed into law by President Donald Trump before Christmas. Lummis's prediction reinforced expectations that regulation will accelerate in the sector.During the Senate's summer preparation process, the draft text was revised based on feedback from more than 100 stakeholders. Among the key areas of discussion are the protection of software developers (Section 1960) and the clarification of the distinction between "byproduct assets" and "digital commodities." Trump Administration Takes Debanking ActionMeanwhile, the Trump administration has issued a harsh response to the "debanking" practices that have long been a source of controversy in the financial sector. The Small Business Administration (SBA) has ordered banks to reinstate customers who were illegally cut off and to correct related policies by December 5th.SBA Administrator Kelly Loeffler stated that many institutions, including religious institutions and pro-life groups, are being arbitrarily denied banking services, saying, "This type of discrimination will no longer be tolerated."According to industry sources, the SBA is considering revoking the status of some banks. This action could have devastating consequences for the institutions involved.CFPB BacktracksThe Trump administration's actions were not limited to the SBA. The Consumer Financial Protection Bureau (CFPB) formally apologized for the oppressive practices against Credova, a "buy now, pay later" platform, during the Biden administration. CFPB General Counsel Mark Paoletta described these practices as "one of the most blatant examples of abuse of state power."Paoletta admitted that the agency targeted Credova with methods similar to Operation Choke Point during the Biden administration.As Congress prepares to take concrete steps for the crypto market, both clarification of the regulatory framework and measures taken against arbitrary practices in the financial sector are critical for the sector. Investors expect the regulations, which will be introduced by the end of the summer, to reduce market uncertainty and provide a long-term roadmap, particularly for US-based companies.
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2 Sep 2025
SEC Deals Blow to Altcoin ETFs: XRP, DOGE, and LTC Applications Delayed
The U.S. Securities and Exchange Commission (SEC) has once again postponed its decision on Truth Social's proposed Bitcoin and Ethereum exchange-traded fund (ETF). The application for Truth Social, a social media platform owned by Trump Media & Technology Group, was initially submitted in June. According to the SEC's official statement, the new deadline has been set as October 8, 2025. Furthermore, with its latest move, the SEC will also postpone decisions on DOGE, LTC, and XRP ETFs.Truth Social's ETF application sparks controversyWhile Truth Social's Bitcoin and Ethereum ETF may seem like an ordinary application in the crypto world, its political connections have generated significant buzz. The fact that former US President Donald Trump is behind the application makes the approval process even more controversial. Trump has recently been in the news for his cryptocurrency projects. The DeFi and stablecoin initiative World Liberty Financial, in particular, and the TRUMP and MELANIA-themed memecoins have increased the Trump family's influence in the crypto world. Therefore, some argue that a potential approval could lead to a trust issue in the markets. Caroline Ciccone, president of Accountable.US, a nonprofit that pushes government transparency, said, “If the SEC approves this ETF, it will raise questions in the minds of Americans. Is this decision made in the best interests of the country, or is it serving the President’s business?”Other crypto ETF applications also postponed: XRP, DOGE, LTC affectedSimilar decisions were made for other crypto ETFs alongside the Truth Social application. The SEC announced that it will announce decisions on the CoinShares Litecoin ETF, CoinShares XRP ETF, and 21Shares Core XRP ETF later in October. It was also reported that investigations into the staking permissions of the Canary XRP Trust, Grayscale XRP Trust, and 21Shares Core Ethereum ETF are ongoing.The SEC's list of postponements is quite extensive. The institution postponed not only the Trump family-linked Bitcoin + Ether ETF but also several XRP-focused applications. Grayscale, CoinShares, Canary Capital, Bitwise, and 21Shares all postponed XRP ETF filings to October 19th, while Franklin Templeton’s spot XRP ETF was moved to November 5th. Grayscale’s Dogecoin ETF and CoinShares’ Litecoin ETF were also extended; the Litecoin ETF decision date is October 23rd, while the Dogecoin ETF is slated for a flexible timeframe between late 2025 and early 2026. Furthermore, the proposal to add staking functionality to the 21Shares Core Ethereum ETF is under review, but this filing doesn’t specify a specific deadline. Last week, the SEC similarly postponed applications for the Solana ETF by VanEck, 21Shares, and Bitwise, as well as 21Shares's request for a Dogecoin ETF.The SEC's approach to crypto ETFs has undergone a significant transformation in recent years. During the Biden administration, influenced by court decisions, first spot Bitcoin ETFs were approved, followed by spot Ethereum ETFs. With the Trump administration, more flexible measures have been taken. For example, in July, the SEC accepted in-kind creations and redemptions of crypto ETFs by "authorized participants."This change is leading to speculation that it could pave the way for more products in the crypto market. However, the situation is more sensitive when it comes to the Trump-linked Truth Social ETF, as this approval is directly linked not only to market dynamics but also to politics.
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19 Aug 2025