• Israel plans tighter stablecoin oversight as adoption surges globally.
• Regulators warn dominance of Tether and Circle poses systemic risk.
• Digital shekel roadmap advances for 2026 as CBDC development accelerates.

Israel is moving towards tighter supervision of stablecoins as the Bank of Israel positions them as a core part of the country’s future payments system.

The shift comes as regulators reassess how private digital dollars fit into daily financial flows.

Stablecoins are no longer seen as fringe tokens used only by crypto traders. Instead, they are being treated as major payment instruments with global scale and influence.

The Bank of Israel Governor Amir Yaron used the Payments in the Evolving Era conference in Tel Aviv to outline how regulatory demands will rise as stablecoin adoption continues to grow.

Rising pressure from global adoption

The Bank of Israel stressed that global stablecoin usage has expanded to levels that can no longer be ignored.

The sector has passed a market capitalisation of more than $300 billion, with monthly transaction volumes above $2 trillion.

As per CoinDesk, officials noted that these levels place stablecoins on par with the balance sheets of mid-sized international commercial banks.

This surge has been driven by their role in trading, cross-border transfers, and the need for a digital instrument that avoids the price swings of other cryptocurrencies.

The expanding footprint creates new urgency for clear, enforceable rules.

Concerns over market concentration

A key theme at the conference was the dominance of two stablecoin issuers.

About 99% of market activity is tied to Tether and Circle, creating a heavy concentration of risk in a sector that underpins a large share of digital asset transactions.

Israeli policymakers warned that this structure heightens systemic vulnerability.

They view that any disruption or weakness at the issuer level could ripple through global payment channels.

To mitigate this, officials highlighted the need for strict reserve practices, including fully backed 1:1 reserves and liquid assets that can handle sudden redemption waves.

Digital shekel plans move forward

Alongside the stablecoin discussion, Israel advanced its own central bank digital currency plans.

Yoav Soffer, who leads the digital shekel project, described the currency as central bank money designed for broad use.

He released a 2026 roadmap that sets out the next stages and confirmed that official recommendations are expected by the end of this year.

The update signals an acceleration similar to moves made by the European Central Bank.

Industry observers noted that the faster timeline reflects how central banks are adjusting to competition from private digital money and the rapid evolution of the payments landscape.

The roadmap triggered commentary within the crypto sector.

Attention centred on how the Bank of Israel’s accelerated schedule positions the digital shekel as a response to fast-growing private alternatives.

Market participants linked the timing to a broader global trend in which central banks are racing to modernise their own digital money strategies.

With stablecoins gaining influence in international transactions, the digital shekel project is being viewed as a strategic step to maintain control over national payments infrastructure while supporting innovation in regulated channels.

The post Israel signals tougher stablecoin rules as digital shekel plans speed up appeared first on CoinJournal.

Tether, the issuer of the world’s most widely used stablecoin, USDT, has evolved over the years into one of the most profitable and resilient firms within the crypto space. 

Under the leadership of CEO Paolo Ardoino, Tether has broadened its focus beyond digital assets, becoming a significant player in the commodity market, particularly with substantial gold reserves.

Tether’s Gold Ambition

Recent reports from the Financial Times reveal that Tether has stirred the gold markets this year by becoming the largest holder of the precious metal outside of central banks. 

According to Bryce Elder’s analysis, the crypto firm’s stockpile is comparable to that of smaller central banks, such as those in Korea, Hungary, and Greece. Last quarter, the company’s gold acquisitions accounted for nearly 2% of total gold demand, equating to almost 12% of central bank purchases.

Sources indicate that Tether’s investments in gold reflect the belief among its insiders that the commodity serves as “a superior store of value” and a “better hedge against inflation” compared to digital currencies. 

Although Tether has significant holdings in Bitcoin, its investment in gold has surpassed its exposure to the leading cryptocurrency. Throughout the year, Tether purchased 26 tons of gold, bringing its total gold stockpile to over 116 tons. 

However, Tether’s ambitions in the gold sector extend beyond mere accumulation; the firm is actively pursuing deals related to gold royalty companies, which finance mining operations in exchange for a percentage of future revenues.

Plans To Dominate The Gold Royalty Space

In June, Tether Investments—responsible for managing the company’s profits—acquired a minority stake in Toronto-listed Elemental Altus for $105 million. An additional $100 million was invested in September amid Elemental’s merger with rival EMX, resulting in Tether holding a controlling stake in the company. 

Insiders suggest that the crypto giant has broader plans, aiming to consolidate small to mid-cap gold royalty firms to strengthen its position in the market. “Their goal is to keep consolidating the small to mid-cap gold royalty space,” said an insider familiar with Tether’s strategy. 

However, while some view this approach as savvy, others are skeptical, with one commodity industry executive labeling Tether as “the weirdest company I have ever dealt with.”

Gold royalties offer the company a unique advantage over traditional bullion; they provide fixed exposure to gold, insulating the stablecoin issuer from fluctuations in gold prices. Yet, amid these ventures, Tether has faced scrutiny regarding its financials. 

NewsBTC reported on Wednesday that S&P Global downgraded Tether’s assets to its lowest rating, “weak,” citing concerns over the firm’s rising exposure to high-risk reserve assets, which could undermine the collateral backing its stablecoin during a financial crisis.

According to a research note from S&P Global, this downgrade was part of a new assessment system introduced in 2023, which classifies stablecoins on a scale from 1 to 5 based on risk. 

The firm’s USDT stablecoin received a rating of “5 (weak),” reflecting a decline from its previous score of “4 (constrained).” Analysts expressed concerns regarding Tether’s limited transparency concerning the creditworthiness of its custodians and counterparties.

In response to the downgrade, the firm’s CEO, Paolo Ardoino, took to social media platform X (formerly Twitter) to address the concerns, stating, “We wear your loathing with pride.” 

He contended that traditional credit rating methodologies used by agencies like S&P stem from “outdated systems that have proven unreliable,” leading to renewed regulatory scrutiny of these legacy models.

Featured image from DALL-E, chart from TradingView.com 

• The licence covers 13 cryptocurrencies, including Bitcoin, Ether, USD,C and Tether.
• AMINA reported a 233% increase in Hong Kong trading volumes in early 2025.
• Hong Kong launched new stablecoin rules and approved a Solana ETF this year.

Hong Kong’s push to build a regulated digital asset market is drawing more interest from global financial institutions, and the latest example is Swiss crypto bank AMINA Bank AG securing approval to expand its services in the city.

The bank received a Type 1 licence uplift from the Securities and Futures Commission, which makes it the first international bank allowed to offer regulated crypto trading and custody to institutional clients in Hong Kong.

The move strengthens the city’s position as a regional digital asset hub and highlights rising demand for bank-grade crypto services among professional traders.

AMINA plans to use the approval to provide institutional users with a regulated route into cryptocurrencies at a time when clients are looking for stronger safeguards and clearer rules.

Hong Kong’s compliance standards have often limited the number of foreign institutions able to offer these services, which has left a gap in the market for firms with established banking frameworks.

AMINA’s entry aims to fill that gap while giving clients a regulated platform backed by traditional financial infrastructure.

AMINA expands in a fast growing market

The licence uplift allows AMINA’s Hong Kong subsidiary to offer trading and custody for 13 cryptocurrencies.

These include Bitcoin, Ether, USDC, Tether, and several leading decentralised finance tokens that are widely used across global exchanges.

The approval creates new opportunities for institutional clients looking for a single regulated venue with access to a curated list of major digital assets.

AMINA also reported a sharp rise in market activity.

The bank recorded a 233% increase in trading volume on Hong Kong crypto exchanges in the first half of 2025.

The increase points to stronger engagement from both institutional and retail segments, which are becoming more active as Hong Kong’s regulatory environment evolves.

The bank expects the new approval to support a wider product range.

It plans to expand into private fund management, structured crypto products, derivatives, and tokenised real-world assets.

These additions would place AMINA among the firms offering institutional clients diversified exposure across multiple types of digital assets.

Local players face new global competition

While AMINA is the first international bank to receive this specific licence upgrade, it enters a competitive market.

Hong Kong already hosts regulated local firms such as Tiger Brokers and HashKey, which serve institutional and retail clients under earlier permissions.

AMINA’s approval signals that the market is open to more foreign institutions, which could change competitive dynamics for both global and local providers.

Hong Kong officials have said on multiple occasions that attracting global firms is central to the city’s digital asset strategy.

AMINA’s arrival may encourage more banks and brokerages abroad to consider similar applications as they assess opportunities in Asia’s regulated crypto markets.

Policy changes shape Hong Kong’s crypto framework

AMINA’s approval arrives during a period of rapid policy development in the city.

Hong Kong introduced its new stablecoin rules in August, creating a formal licensing pathway for issuers.

Following this, major regional banks such as HSBC and ICBC indicated they were examining licence applications as part of their digital asset plans.

The city also approved its first Solana exchange-traded fund in late October.

The approval placed Hong Kong ahead of the US in allowing a regulated Solana ETF and added another product to its growing list of crypto-linked investment options.

Hong Kong tightened rules around self-custody of digital assets in August.

The change focused on improving cybersecurity protections and reducing risks tied to individual key management.

The decision was presented as a safety measure rather than a restriction on user access.

The combination of new rules and rising institutional interest has created an environment that is now attracting more global firms.

AMINA’s regulatory progress adds momentum to Hong Kong’s strategy of balancing strong compliance with market expansion.

The post Hong Kong crypto rules attract global banks as AMINA wins new approval appeared first on CoinJournal.

• A Toronto outlet handed over $1,900.00 in cash using only a $5 bill for verification.
• Ukraine-based exchange 001k offered to deliver $1,000,000.00 in cash in Montreal.
• Over 20 crypto-to-cash services were found operating unregistered across Canada.

A report by CBC has revealed how Canada is witnessing the rise of unregulated crypto-to-cash services that enable large-scale anonymous financial transfers.

These operations not only bypass anti-money laundering laws but also establish an untraceable money trail that financial intelligence agencies are unable to track.

Across cities from Toronto to Montreal, crypto platforms are facilitating discreet cash handovers worth thousands and even millions, without requiring any identification from users.

Despite rules that demand full verification for transactions over $1,000.00, services continue to hand over cash using only minimal confirmation.

Experts have raised alarm over the role of these services in enabling potential money laundering, illicit trade, and financial crime.

Investigative efforts have now revealed how this silent financial movement is escaping oversight in plain sight.

Crypto-for-cash deals avoid ID checks

In one midtown Toronto branch of a registered money transfer business, a $1,900.00 cash pickup was arranged through encrypted messages using the Telegram app.

The only verification required was a photo of a Canadian $5 bill.

The customer, who had earlier transferred 2,000 tether tokens to Ukraine-based crypto exchange 001k, showed the physical bill and received $100 notes from the teller with no further questions.

Such transactions breach Canada’s anti-money laundering regulations, which require personal identification and transaction documentation for any transfer exceeding $1,000.

The company later claimed that the arrangement had been made by a rogue manager using personal funds off the official books.

The teller involved, they said, acted without knowledge of the transaction’s real nature.

001k is not registered with FINTRAC, the Canadian financial intelligence agency, and therefore is not legally permitted to conduct business with Canadians.

Yet the transaction went ahead and passed under the regulatory radar.

Platforms offer million-dollar handovers

The same pattern was uncovered in Montreal.

Journalists engaged in anonymous conversations with crypto services, including 001k and another unnamed provider.

Both offered to deliver $1,000,000.00 and $890,000.00 in cash, respectively, in exchange for tether sent to designated wallets.

No identification was asked for at any stage.

These platforms operate online, contactable via web directories and Telegram channels.

Many advertise in plain sight and offer face-to-face cash deals in locations ranging from Halifax to Vancouver.

According to experts, more than 20 such services were found in Canada, most operating without proper registration or regulatory checks.

Despite Canada’s attempt to regulate the sector through FINTRAC, enforcement remains limited.

The agency oversees over 2,600 registered money service businesses, but lacks the resources to track unregistered and underground operators.

A growing global laundering channel

Crypto analysis firm Crystal revealed to CBC that crypto-to-cash services in Hong Kong alone processed $2.5 billion in 2024.

Canada’s rapidly growing market could mirror that figure if enforcement continues to lag.

With the rise of digital tokens like Bitcoin, Ethereum, and Tether, it has become easier for money to move across borders and be converted into untraceable cash.

Law enforcement depends on access to user identity at the point where crypto enters or exits the system.

When transactions are carried out without registration, those points vanish, and the blockchain’s transparency becomes meaningless.

Investigators lose visibility once digital assets are converted into physical currency anonymously.

The flexibility of these services creates risk.

Anyone can now move large sums in or out of Canada without detection, including organised crime networks and individuals involved in illegal activity.

Without active compliance monitoring, these transactions take place without leaving any traceable connection.

Canada struggles to enforce crypto regulations

Canadian regulators are under-equipped to deal with the scale of the problem.

Crypto platforms can connect users in seconds, bypassing traditional financial systems and enabling instant access to large volumes of cash.

FINTRAC’s oversight is stretched, and its inability to track foreign operators or monitor encrypted platforms like Telegram leaves a major gap in financial security.

The use of small signals, like a $5 bill serial number, to validate multi-thousand-dollar exchanges highlights just how far removed these services are from compliance.

Unless significant regulatory action is taken, Canada could continue to serve as a silent hub for crypto cash transfers that avoid scrutiny, recordkeeping, and legal obligations.

The post Crypto loopholes across Canada enable silent cash transfers appeared first on CoinJournal.

• Organised crime groups run scam operations from Southeast Asia.
• The US DOJ seized $112 million in crypto linked to these scams in 2023.
• Chainalysis reported scam revenues reached $9.9 billion in 2024.

Pig-butchering scams, once seen as consumer-level fraud, have quietly evolved into a global web of organised crime.

With links to human trafficking, cryptocurrency abuse, and international money laundering, authorities are now viewing these scams as matters of national security.

In a recent Chainalysis podcast, Andrew Fierman, the firm’s head of national security intelligence, and Erin West, a former prosecutor and founder of Operation Shamrock, discussed the evolution of pig-butchering scams.

They painted a chilling picture of how the fraud has transformed from digital deceit to a full-blown transnational crime model.

The scam involves creating trust-based relationships with victims over time, sometimes romantic, sometimes platonic, before luring them into bogus cryptocurrency investments.

Funds are then siphoned through fake platforms and disappear into an opaque crypto network.

Southeast Asian compounds and forced scam labour

Pig-butchering operations are no longer run by isolated hackers. Fierman and West explained that many are now backed by sprawling fraud rings operating across Southeast Asia.

These rings run dormitory-style compounds where trafficked workers, often victims themselves, are forced to operate scam networks.

In 2023, the US Department of Justice (DOJ) seized around $112,000,000 in crypto tied to such schemes.

However, according to Chainalysis, the problem has grown rapidly.

Scam-related revenue in the crypto space exceeded $9.9 billion in 2024, with pig-butchering scams alone increasing by nearly 40% compared to the previous year.

Victims often suffer more than once. After being drained of their initial funds, many receive follow-up messages from fraudulent recovery companies offering to “help” retrieve their lost assets.

These secondary scams use the same tactics, often targeting victims again by using lists sold among fraud rings.

Using blockchain visibility to fight back

While pig-butchering relies on exploiting emotions and trust, the infrastructure often moves through traceable digital rails.

Fierman suggested that this is where blockchain transparency can be turned against the scammers.

By tracking wallet flows and transactions on-chain, regulators, exchanges, and virtual asset service providers (VASPs) can intervene.

This is particularly possible at the point of cashing out, which remains the critical vulnerability for these operations.

Efforts are being made to freeze and reclaim these funds.

In August, a joint action by APAC law enforcement agencies and firms like Chainalysis, OKX, Binance, and Tether resulted in freezing $47,000,000 tied to pig-butchering schemes.

DOJ leads with new task force

The US is treating the matter seriously.

On 12 November, the DOJ announced the launch of a new “Scam Center Strike Force”.

This unit will specifically target transnational crime syndicates linked to Southeast Asia that have engineered these elaborate crypto investment frauds.

The strategy goes beyond arrests.

It involves targeting facilitators of the scam economy, including those offering payment solutions, managing the digital platforms, and providing banking rails.

This approach includes sanctions, indictments, and diplomatic efforts designed to pressure bad actors across borders.

Erin West stated the need to use all available legal and technical tools in this battle.

Disruption at scale, especially across the entry and exit points of crypto fraud, remains the immediate priority for law enforcement.

Common tactics and growing digital risks

The core mechanics of pig-butchering have not changed, even as the scale and coordination have grown.

Scammers still initiate contact over messaging platforms, using charm and emotional manipulation to build trust.

Fast declarations of love, secrecy about personal details, and the push toward investing in a “guaranteed” crypto platform are major warning signs.

These scams often include screenshots showing fake profits to pressure victims into depositing funds.

Once in, victims are encouraged to invest more before being ultimately locked out of the system.

Now, however, these scams sit within a broader framework of crime that merges human exploitation and financial laundering.

Victims are no longer just people who lose their savings.

They are also unknowingly interacting with a global machinery that fuels trafficking and cross-border criminal finance.

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