• Wet werkelijk rendement Box 3 is set to begin on January 1, 2028, according to the Dutch parliament.
• A 36% flat tax will apply to positive net returns above a €1,800 threshold per person.
• Losses can be carried forward to offset future gains.

The Netherlands is preparing to change how it taxes investors, and the shift could have a direct impact on people holding Bitcoin and other crypto assets.

Starting in 2028, the country plans to tax unrealised gains, meaning investors could owe tax even if they have not sold their holdings.

According to a post shared by Crypto Rover, the Netherlands is moving towards taxing unrealised Bitcoin gains, bringing fresh attention to how governments may treat crypto under mainstream investment rules.

The policy is expected to cover a broad set of assets, including Bitcoin, other cryptocurrencies, stocks, bonds, and similar investments.

For many investors, the key issue is that tax would be triggered by changes in value over time, not by selling and locking in profits.

That makes the reform especially relevant for crypto holders, who often deal with sharp price swings and long holding periods.

Netherlands plans overhaul of Box 3 wealth tax

According to the Dutch parliament, the Netherlands will introduce a new tax system called Wet werkelijk rendement Box 3 starting January 1, 2028.

The idea is to tax investors based on the actual returns they make each year, rather than on estimated returns set by the government.

Under the planned approach, authorities would compare the value of a person’s assets at the start and end of the year. Any income earned during that period would also be included in the calculation.

This means investors could be taxed on both realised profits and unrealised gains that only exist on paper.

The tax will apply to Bitcoin, other cryptocurrencies, and traditional investment products.

The reform is designed to treat different asset classes equally and apply one consistent method across a modern portfolio.

Why the Netherlands is changing its tax model

The proposed change follows a court ruling that found the old Box 3 system unfair.

Under the previous framework, investors were taxed based on assumed returns, even if their holdings did not perform in line with those assumptions.

Lawmakers argue the new structure is more accurate because it is based on the real change in value of assets, rather than an estimate that may not reflect actual outcomes.

Supporters of the change believe it improves fairness, especially for investors whose returns have historically been overstated by the assumed-return method.

The planned system also reflects how investment behaviour has evolved over the years.

Many households now hold a mix of traditional assets and crypto, and the government appears to be moving towards rules that apply consistently across both categories.

How unrealised gains would be taxed each year?

Under the new rules, the government would calculate a person’s yearly investment result by comparing asset values at the beginning and end of the year, plus any income earned during that period.

A 36% flat tax would apply to positive net returns above a €1,800 annual threshold per person.

In simple terms, the tax would be linked to annual performance rather than transactions.

That means an investor could owe tax if their portfolio rises in value, even if they did not sell anything and did not receive cash from their holdings.

If an investor records a loss, that loss can be carried forward and used to offset future gains.

This gives investors some protection during negative years, although the timing mismatch between paper gains and cash flow remains a concern for some.

What the reform could mean for Bitcoin and crypto holders

For crypto investors, the biggest challenge is volatility. Bitcoin and other digital assets can rise sharply in a short time, and then fall just as quickly.

A year-end value increase could create a tax bill, even if the investor has not sold any crypto and has no cash available from those gains.

Critics warn this could create liquidity pressure, especially for long-term holders who do not want to sell their Bitcoin just to fund tax payments.

Some also fear it could push investors and crypto businesses to relocate if the system becomes too costly or difficult to manage.

With the Box 3 reform planned for 2028, the Netherlands is positioning itself for a major shift in investor taxation, and crypto holders may soon face annual tax calculations tied to market movements rather than selling decisions.

The post Netherlands to tax unrealised Bitcoin gains under new Box 3 rules appeared first on CoinJournal.

• The SSC launched the process after the Ministry of Finance issued Decision No. 96.
• Banks and brokers, including SSI, VIX, and major lenders, are preparing to apply.
• Rules include 10 trillion dong capital, 65% institutional ownership, and a 49% foreign cap.

Vietnam has formally moved closer to running a regulated crypto market after opening applications for licences to operate digital asset trading platforms.

The step brings the country’s long-planned pilot programme into action, setting the stage for approved exchanges to operate under direct regulatory oversight.

The State Securities Commission of Vietnam (SSC) said the licensing window opened on Tuesday, following the introduction of new administrative procedures under Decision No. 96 by the Ministry of Finance.

The decision implements a resolution on piloting a regulated crypto asset market, which Vietnam has been developing for years.

Even with the licensing process now live, the market is still in its early phase.

No platform has yet been licensed, and regulators have not announced approvals since the application window opened.

SSC opens licensing window under new procedures

The SSC confirmed that applications under the new administrative procedures will be accepted beginning January 20, 2026.

Vietnam’s Ministry of Finance issued Decision No. 96 as part of implementing the country’s resolution to pilot a regulated crypto asset market.

The SSC framed the move as a step towards bringing crypto under formal regulatory supervision.

The opening of the licensing window also follows a key legal shift. Vietnam’s Law on the Digital Technology Industry entered into force on Jan. 1, defining digital and crypto assets in statute for the first time.

Under the law, Vietnam recognises crypto assets as property. However, it explicitly excludes them from legal tender status.

The country also maintains restrictions on the use of crypto as a means of payment, keeping the pilot focused on regulated market activity rather than consumer transactions.

Domestic banks and securities firms prepare applications

While the licensing window marks progress, Vietnam’s regulated crypto market is still waiting for actual approvals.

That said, early interest from domestic financial firms appears to be emerging.

Vietnam News reported on Wednesday that around 10 securities companies and banks have publicly announced plans and their readiness to participate in the crypto asset market once licensed.

The report stressed that these institutions are preparing applications rather than already operating approved platforms.

Among the firms named was SSI Securities, which established SSI Digital in 2022.

Another is VIX Securities, which has invested in its VIXEX digital asset exchange unit.

Several major banks were also listed, including Military Bank, Techcombank, and VPBank.

The institutions indicated they plan to begin operations only after receiving regulatory approval.

No crypto exchange licensed as pilot enters operational phase

Even though Vietnam has opened the licensing window, the pilot framework remains at the starting line in practical terms.

That context matters because the latest application process does not automatically mean platforms will launch quickly.

Vietnamese regulators have not announced any receipt or approvals of applications since the licensing window opened, meaning the number of applicants and their progress remains unclear.

For investors and market participants, this suggests Vietnam is moving in a controlled and staged way, with formal procedures advancing before any exchange can legally operate under the pilot regime.

Vietnam’s strict licensing framework shapes market entry

Vietnam’s crypto licensing framework is among the most restrictive in the region, reflecting the government’s cautious approach to market development.

Applicants must be Vietnamese entities with a minimum paid-in capital of 10 trillion dong, roughly $380 million.

At least 65% of the capital must be held by institutional shareholders, setting a high barrier that favours established domestic firms.

Foreign ownership is capped at 49%, restricting overseas participation and reinforcing Vietnamese control of licensed operators.

Taken together, these conditions show Vietnam is prioritising large-scale, institution-led platforms with strong capital bases.

The focus appears to be on controlling systemic risk and ensuring compliance standards from the start, rather than allowing fast, open-ended growth across the crypto sector.

The post Vietnam launches formal licensing for digital asset trading platforms appeared first on CoinJournal.

• SEC deputy secretary-general Jomkwan Kongsakul said crypto ETF rules could be issued early this year.
• Thailand’s SEC will treat crypto as another asset class and allow up to 5% portfolio allocation to digital assets.
• KuCoin Thailand is seeking to resolve an SEC suspension linked to capital requirements and a shareholder dispute.

Thailand’s Securities and Exchange Commission is preparing a new set of regulations designed to bring crypto investment products further into the country’s formal financial system.

The regulator is working on rules to support crypto exchange-traded funds (ETFs), crypto futures trading, and tokenised investment products, according to SEC deputy secretary-general Jomkwan Kongsakul.

The Bangkok Post reported on Thursday that the SEC aims to issue formal guidelines for crypto ETFs in Thailand “early this year.”

The move signals Thailand’s effort to position itself as a regional crypto hub for institutional investors, even as retail trading remains active despite a ban on crypto payments.

Crypto ETFs move closer to formal approval

Kongsakul said the SEC’s board has approved crypto ETFs in principle and the agency is now finalising investment and operational rules. He said the regulator sees crypto ETFs as a product that could reduce barriers for investors who may be hesitant about directly holding digital assets.

“A key advantage of crypto ETFs is ease of access; they eliminate concerns over hacking and wallet security, which has been a major barrier for many investors,” Kongsakul said.

Under the proposed framework, the SEC will treat crypto as “another asset class,” and investors will be able to allocate up to 5% of a diverse portfolio to digital assets.

Futures trading planned for TFEX

Alongside ETF guidelines, the SEC is also moving to regulate and enable crypto futures trading on the Thailand Futures Exchange (TFEX).

This would allow investors to gain exposure to crypto price movements through regulated derivatives markets.

Kongsakul said other initiatives under consideration include establishing market makers to support trading liquidity and recognising digital assets as an official asset class under the Derivatives Act.

Thailand has been working to attract more institutional interest in crypto markets, particularly through regulated products that sit within existing legal frameworks.

Tokenisation and sandbox collaboration with central bank

The SEC is also expanding its approach beyond ETFs and futures through tokenisation initiatives.

Kongsakul said the agency is working with the Bank of Thailand on a tokenisation sandbox, which could provide a controlled setting for testing tokenised instruments.

The SEC “will encourage issuers of bond tokens to enter the regulatory sandbox,” Kongsakul added.

By pushing tokenised bond products into a supervised environment, Thailand could develop regulated pathways for blockchain-based issuance without opening the door to unmonitored retail distribution.

Tighter oversight for financial influencers

While expanding products and market access, the SEC is also tightening standards around promotion and investment-related content online.

Kongsakul said the regulator is stepping up oversight of “financial influencers,” signalling that marketing and informal advice will face more restrictions.

He said, “Any recommendation related to securities or investment returns will require proper authorisation as either an investment advisor or introducing broker.”

The rules aim to curb unregulated investment promotion, particularly at a time when digital assets continue to be widely discussed across social media.

KuCoin Thailand works to resolve SEC suspension

The regulatory shift comes as the Thai SEC continues enforcement actions in the local exchange market.

Earlier in January, the SEC suspended KuCoin Thailand’s operations after the company’s capital fell below the minimum requirements for five consecutive days, according to local news outlet The Nation on Wednesday.

KuCoin Thailand said the breach was linked to a shareholder dispute between Singapore’s CI group and KuCoin Global, which prevented approval of a planned capital increase.

The company said the issue was not due to actual financial liquidity problems.

KuCoin entered the Thai market in June 2025 and is planning for its local entity to apply for a digital-asset broker license.

The company said this would allow it to offer a wider range of financial products.

Thailand’s crypto market remains active, with Bitkub, the country’s largest exchange, seeing daily trading volumes of around $60 million.

Even with crypto payments banned, regulators appear to be prioritising controlled investment access through structured products such as ETFs, futures, and tokenised instruments.

The post Thailand moves toward crypto ETFs, futures and tokenised investment products appeared first on CoinJournal.

• Portugal prohibits political betting under its 2015 online gambling law.
• Polymarket remains accessible, but regulators may ask ISPs to block it.
• Polymarket faces restrictions in 30+ countries, with access limits varying by market.

Portugal’s gambling regulator has ordered blockchain-based prediction market Polymarket to cease operations in the country within 48 hours after the platform saw a sharp spike in activity linked to Sunday’s presidential election.

According to Rádio Renascença, bets placed on the outcome of the Jan. 18 vote exceeded 103 million euros ($120 million).

The regulator, the Serviço de Regulação e Inspeição de Jogos (SRIJ), said Polymarket does not hold a licence to offer betting services in Portugal and is therefore operating illegally.

The enforcement step highlights how prediction markets are increasingly colliding with national gambling laws, particularly when political events drive rapid inflows of user activity and large volumes of capital.

A fast-growing prediction market meets strict local gambling rules

Polymarket is a prediction market that lets users bet on real-world events such as politics, sports, or other developments by buying shares tied to potential outcomes.

In Portugal, betting on political events and other real-world outcomes is illegal.

Under the country’s 2015 online gambling law, betting is permitted only on sports, casino games, and horse racing.

SRIJ said Polymarket is not authorised to offer betting services in Portugal and cannot legally operate political markets, whether they relate to domestic events or international developments.

The regulator’s 48-hour deadline and what could come next

The regulator’s decision was tied to the surge in election-related betting, with activity around the Portuguese presidential race drawing increased attention.

SRIJ formally ordered Polymarket to quit the country within 48 hours.

However, the platform remains accessible for now, though regulators may soon instruct internet service providers to block access.

Other prediction market platforms, including Kalshi, Myriad, and Limitless, also appear to be accessible in Portugal, even as authorities focus specifically on Polymarket’s licensing status and its political betting markets.

Election-related volume draws fresh scrutiny

The size of the wagering linked to the Jan. 18 vote has put the spotlight on how quickly liquidity can concentrate on political markets.

Rádio Renascença reported that bets exceeded 103 million euros ($120 million), underscoring the scale of the activity on Polymarket tied to Portugal’s presidential election.

Such volumes can draw regulator attention faster than smaller niche markets, especially in jurisdictions where political betting is explicitly restricted.

Polymarket faces bans in 30+ countries

Polymarket was founded in 2020 and has already faced restrictions in more than 30 countries, including Singapore, Russia, Belgium, Italy, and, more recently, Ukraine.

Regulatory approaches vary by jurisdiction. Some countries, such as Belgium, have blacklisted the website.

Others, including France, have limited access so that local users can enter the platform in a “view-only” mode rather than actively participate.

Portugal’s enforcement action adds to that growing list and shows how legal pressure on prediction markets can escalate quickly when platforms gain traction around elections.

The post Portugal orders Polymarket to shut down over election betting surge appeared first on CoinJournal.

• The one-exchange-one-bank model is not a legal requirement but is widely followed.
• A government study found the setup limits access for small crypto exchanges.
• Large platforms dominate Korean won-based trading due to better liquidity.

South Korea’s top regulators are reportedly reviewing how local cryptocurrency exchanges work with banks, aiming to create a more balanced playing field.

The current system often links each crypto exchange to just one bank, limiting choice and creating high entry barriers for smaller firms.

Though this setup isn’t officially required by law, it has become widespread due to anti-money laundering and identity verification rules.

The Financial Services Commission and the Fair Trade Commission are now coordinating a review to see whether this long-standing practice is stifling competition and reinforcing the dominance of a few large exchanges.

Rules may favour bigger exchanges

Under the existing system, exchanges need to form exclusive partnerships with domestic banks to allow customers to deposit and withdraw Korean won.

Without that link, they can’t offer basic fiat services.

The model emerged in response to growing demands for transparency and risk control, but may now be working against smaller market participants.

A recent study commissioned by the government explored how current crypto regulations impact competition.

According to findings reported by local outlet Herald Economy, researchers concluded that the one-to-one exchange-bank setup makes it harder for newer or smaller exchanges to access banking services.

Even though it helps manage financial risks, applying the same strict standards across the board may be excessive when firms vary in size, volume, and risk profile.

The study also noted that most Korean won-based crypto trading happens on just a few large platforms, making the market highly concentrated.

Liquidity gap highlights entry barriers

The research pointed out that when a few platforms dominate trading volume, they benefit from deeper liquidity and faster transactions.

This creates a cycle where users are more likely to choose the bigger players, further limiting the reach of smaller exchanges.

As long as banking access remains difficult, that pattern is unlikely to change.

This concentration may make the market less dynamic, reduce innovation, and restrict consumer options.

As a result, the current setup could be reinforcing the position of already-powerful exchanges, rather than encouraging healthy competition.

Lawmakers delay key digital asset bill

The review of crypto-banking links comes alongside delays in broader legislative changes.

The Digital Asset Basic Act, which is expected to reshape the country’s crypto regulation, was initially scheduled for submission before the end of 2023.

However, on December 31, lawmakers pushed it back to 2026.

The bill proposes allowing the launch of stablecoins backed by the Korean won, as long as the issuing companies store their reserve assets with approved custodians such as banks.

The delay stems from disagreements over how to supervise stablecoin issuers and whether a new oversight body should pre-approve them.

The Financial Services Commission is also weighing how to allow both financial and non-financial firms to take part in this sector without compromising on safety.

The goal is to support innovation while maintaining strong regulatory safeguards.

The post South Korea may target fairer crypto market with banking rule changes: report appeared first on CoinJournal.

• A hard-start approach may force compliant firms to stop operations.
• The HKSFPA urges a 6–12 month grace period for applicants.
• The association also raised concerns over the CARF framework.

Hong Kong’s plan to tighten oversight of digital asset firms has raised concerns that crypto managers could be forced to suspend operations.

The warning comes from the Hong Kong Securities & Futures Professionals Association (HKSFPA), which has flagged risks associated with the potential implementation of new licensing requirements without a transition period.

The government is currently consulting on extending the city’s regulatory reach across virtual asset dealing, advisory and fund management services.

These proposals aim to close gaps in oversight but could leave active firms in limbo if licences are required from day one.

Concerns over hard launch timing

The HKSFPA’s main concern is that a “hard start” would require all market players to hold a valid licence before the new framework officially begins.

Without any grace period, this could mean that businesses awaiting approval would have to stop offering regulated services, even if they’ve submitted their applications.

This would impact firms that are already operating legally under the current rules but have not yet received a licence under the new system.

The concern is that licensing reviews could take time, especially given the complexity involved, which could create regulatory bottlenecks and disrupt the sector.

Group pushes for grace period

In a formal submission, the HKSFPA has asked for a six to twelve-month deeming period for businesses that apply ahead of the new regime’s start date.

The group believes this would allow operations to continue while the Securities and Futures Commission (SFC) processes applications.

Without such a buffer, even firms with strong compliance practices could face forced shutdowns due to administrative delays.

The application process itself is not quick, and the risk of backlogs is significant, especially as more companies prepare to enter a newly regulated environment.

Expanded oversight still under review

The proposed rules are still in the consultation phase and do not yet have a confirmed start date.

If implemented, they would mark a shift in how virtual asset services are governed in Hong Kong, moving beyond trading platforms to include advisory and fund management services.

The industry body supports Hong Kong’s aim of strengthening regulatory standards for digital assets.

However, it warns that if timelines are too rigid, it could discourage institutional involvement and slow down the adoption of compliant crypto infrastructure.

Second warning highlights implementation risk

In a separate consultation submission made this week, the HKSFPA also expressed concerns about the upcoming Crypto Asset Reporting Framework (CARF) being introduced in line with the OECD’s recommendations.

While the group supports the policy direction, it again warned that inflexible execution could lead to unintended exposure to operational and legal risks.

Taken together, the two submissions reflect a broader message from the industry: while regulation is welcomed, execution must avoid creating hurdles that push firms out of the market.

The post Crypto firms in Hong Kong face risks as new licensing rules advance appeared first on CoinJournal.

• President Alexander Lukashenko signed Decree No. 19 to set operating rules and market entry conditions.
• Cryptobanks must become Hi-Tech Park residents and be registered in a central bank-run cryptobank register.
• The model introduces dual oversight through financial rules and Hi-Tech Park supervisory board decisions.

Belarus is moving digital assets closer to the core of its financial system after introducing a legal framework for “cryptobanks”.

Instead of treating crypto as a separate industry, the country is building a model where token-related services sit inside existing banking structures and are supervised by the state.

On Friday, Belarusian President Alexander Lukashenko signed Decree No. 19, which defines how cryptobanks can operate and what conditions they must meet to enter the market.

The move gives Belarus a regulated route for crypto-linked banking, while tightening the boundaries around who is allowed to provide these services.

What Decree No. 19 allows cryptobanks to do

Under the decree, cryptobanks are defined as joint-stock companies that can combine token-based activity with traditional banking functions.

This includes banking services, payments, and related financial services, but now within a formal legal structure.

Rather than creating a parallel “crypto sector”, Belarus is linking digital asset operations to the same financial oversight mechanisms and infrastructure that already govern mainstream institutions.

That approach signals an effort to keep crypto activity within a controlled and traceable system.

Cryptobanks will not be open to every player. The framework limits participation to firms that agree to operate strictly within the country’s regulatory requirements.

Hi-Tech Park rules are now tied to crypto banking

A key part of the new framework is the Hi-Tech Park, a state-backed technology zone that already plays a major role in Belarus’s digital economy strategy.

Under the decree, a cryptobank must obtain resident status in the Hi-Tech Park before entering the market.

On top of this, cryptobanks must be added to a dedicated register that will be maintained by the country’s central bank.

This structure effectively places market access behind formal approvals, ensuring the state can monitor who is active and under what rules they are operating.

Cryptobanks face dual oversight and compliance duties

Belarus is applying a layered supervision model to cryptobanks, with requirements that stretch beyond standard financial compliance.

According to the decree, cryptobanks must follow rules applied to non-bank credit and financial institutions.

They also have to implement decisions issued by the Hi-Tech Park’s supervisory board.

This sets up dual oversight that combines financial regulation with technological supervision.

Officials say the approach is designed to support innovative products that mix conventional banking services with token-based transaction efficiencies.

In practical terms, it allows crypto-linked services to be delivered through licensed entities that are already embedded in the formal banking environment.

The new cryptobank rules fit into a longer policy direction where crypto is allowed only within clearly defined and state-approved boundaries.

The post Belarus establishes rules for ‘crypto banks’: check out the details appeared first on CoinJournal.

• Almost three million people signed a parliamentary petition opposing mandatory digital ID cards.
• Digital right-to-work checks will remain mandatory under the updated policy approach.
• The UK digital ID scheme, expected around 2029, will be offered as optional alongside electronic alternatives.

The UK government, led by Prime Minister Keir Starmer, has dropped plans to make a centralised digital ID mandatory for workers, stepping back from a proposal that would have changed how employees prove their right to work.

Under the original plan, workers would have been required to use a government-issued digital credential, rather than relying on traditional documents such as passports.

The reversal follows months of criticism from politicians and civil liberties campaigners, as well as a large-scale public response that questioned whether employment access should depend on one centralised system.

Critics warn of surveillance and data security risks

The mandatory digital ID proposal drew backlash from opponents across the political spectrum, including UK Member of Parliament Rupert Lowe and Reform UK leader Nigel Farage.

Civil liberties groups and campaigners also raised concerns about how a centralised identifier could be used over time.

Opponents warned it could lead to an “Orwellian nightmare” by giving the state a stronger ability to monitor citizens.

Another major fear was that centralising sensitive personal data could create a single “honeypot” vulnerable to hacking and misuse.

Critics also pointed to the risk of mission creep, where a scheme launched for employment checks could gradually expand into other areas, including housing, banking, and voting.

Petition pressure forces a policy climbdown

Public resistance to mandatory digital ID became visible through formal political channels.

Almost three million people signed a parliamentary petition opposing digital ID cards, making the issue difficult for ministers to ignore.

Lowe celebrated the policy shift in a video posted on X, saying he was off for “a very large drink to celebrate the demise of mandatory Digital ID”.

Farage also backed the rollback, calling it “a victory for individual liberty against a ghastly, authoritarian government”.

Digital right-to-work checks stay mandatory from government

Despite dropping plans for a mandatory digital ID credential, officials say digital right-to-work checks will remain mandatory.

That means the government is still committed to keeping employment verification in a digital process, even if it is no longer built around a single government ID system.

When the UK’s digital ID scheme launches around 2029, it is now expected to be optional rather than compulsory.

Instead of becoming the only approved route for proving work eligibility, it will be offered alongside alternative electronic documentation.

Digital euro, EU identity, and crypto privacy debates return

The UK’s partial rollback is also feeding into wider debates about digital control systems, including central bank digital currencies and the European Central Bank’s digital euro project.

In those discussions, civil society groups and some lawmakers have argued for strict privacy guarantees rather than systems that could allow broad traceability.

At the same time, the European Union is moving ahead with its own digital identity framework and digital euro work, while exploring privacy-preserving designs.

One approach includes using zero-knowledge proofs, allowing citizens to prove attributes such as age or residency without revealing their full personal information.

These designs connect to decentralised identity tools and privacy-preserving blockchain technologies, including zero-knowledge credential systems and privacy-enhancing smart contract structures.

The aim is to support compliance while minimising how much personal data is exposed or stored in one place.

Privacy-focused crypto tools have also remained in focus, including privacy coins such as Zcash (ZEC) and Monero (XMR), alongside decentralised identity protocols.

Interest in these tools has continued as regulators step up scrutiny of DeFi and explore identity checks for self-hosted wallets.

The US Treasury’s proposed DeFi ID framework, alongside renewed attention on privacy tokens, shows how policymakers are testing stronger Anti-Money Laundering and Know Your Customer controls on-chain, even as builders push alternative designs.

The post UK drops mandatory digital ID for workers after backlash and liberty concerns appeared first on CoinJournal.

• Dubai’s financial regulator has banned privacy tokens across the DIFC from Jan. 12.
• Stablecoins must now be fiat-pegged and backed by high-quality, liquid assets.
• Algorithmic stablecoins like Ethena are excluded from the stablecoin category.

Dubai’s financial regulator has rolled out a major update to its crypto rulebook, drawing a clear red line around privacy tokens while changing how digital assets are approved inside the Dubai International Financial Centre.

The revised Crypto Token Regulatory Framework, effective Jan. 12, reflects a broader shift in regulatory philosophy.

Privacy tokens banned

Under the updated framework, privacy tokens are prohibited across the DIFC.

The ban covers assets designed to conceal transaction histories or wallet holders, as well as any related financial activity.

This includes trading, marketing, fund exposure, and derivatives referencing such tokens.

The decision arrives at a time when privacy coins have attracted fresh attention from traders.

Monero XMR recently crossed an all-time high, and tokens such as ZEC have also seen increased activity.

Despite this, the DFSA views the risks as incompatible with global compliance obligations.

The regulator’s position is rooted in Financial Action Task Force standards, which require firms to identify both the originator and beneficiary of crypto transactions.

Privacy tokens, by design, make this level of transparency difficult to achieve.

As a result, the DFSA considers their use inconsistent with anti-money laundering and financial crime controls expected of regulated firms.

Mixers and obfuscation tools

The prohibition extends beyond tokens themselves.

Regulated firms in the DIFC are also barred from using or offering privacy-enhancing devices such as mixers, tumblers, or other obfuscation tools that hide transaction details.

This places Dubai closer to the most restrictive global approaches.

While Hong Kong technically permits privacy tokens under a risk-based licensing model that limits their practical use.

Through MiCA rules and an upcoming AML ban on anonymous crypto activity, privacy coins and mixers are effectively being pushed out of regulated European markets.

Stablecoin definition tightened

Stablecoins are another central focus of the revised rules.

The DFSA has narrowed the definition of what it calls Fiat Crypto Tokens, limiting the category to tokens pegged to fiat currencies and backed by high-quality, liquid assets.

These reserves must be capable of meeting redemption demands even during periods of market stress.

Algorithmic stablecoins fall outside this definition due to concerns around transparency and redemption mechanics.

Tokens such as Ethena, despite their rapid growth, would not qualify as stablecoins under the DIFC framework.

They are not banned but would be regulated as standard crypto tokens rather than fiat-backed instruments.

Firms take responsibility

A significant structural change in the framework shifts token approval responsibility to industry participants.

Instead of maintaining a regulator-approved list of crypto assets, the DFSA will require licensed firms to determine whether the tokens they offer are suitable and compliant.

Firms must document these assessments and keep them under continuous review. The change reflects feedback from the industry and the regulator’s view that the market has matured.

It also aligns with international regulatory thinking that asset selection decisions should rest with firms, with supervisors focusing on oversight and enforcement rather than approvals.

The post Dubai crypto rules tighten as DFSA bans privacy tokens and rewrites approval process appeared first on CoinJournal.

• Wyoming has launched FRNT, the first stablecoin issued and backed by a US state government.
• The dollar-pegged token is fully backed by cash and Treasuries and managed by Franklin Templeton.
• Interest from reserves is directed to Wyoming public schools rather than token holders.

Wyoming has formally entered the digital asset market by issuing the first stablecoin created and backed by a US state government.

The launch places a publicly managed dollar-pegged token directly onto open crypto networks, marking a shift from privately issued stablecoins that currently dominate the market.

Known as the Frontier Stable Token (FRNT), the project reflects years of legal and technical groundwork and positions Wyoming as a testing ground for how blockchain-based money could function inside public finance systems.

The token’s debut also arrives as US regulators continue to debate how digital dollars should be governed, leaving states to explore their own approaches within existing frameworks.

How the token enters crypto markets

The Frontier Stable Token went live on January 7, according to an announcement carried by Wyoming Public Media and confirmed by the state’s Stable Token Commission.

Trading is initially available on Kraken, a Wyoming-based cryptocurrency exchange, with issuance beginning on the Solana blockchain.

While Solana is the first network used, the token has been designed for broader reach.

Through Stargate, the stablecoin can move to Ethereum, Arbitrum, Avalanche, Base, Optimism, Polygon, and Solana.

This multi-chain structure allows the token to circulate beyond a single ecosystem, increasing its potential use across decentralised finance applications and payment rails without being locked into one network.

Backing structure and reserve controls

Wyoming has allocated $6 million to the project so far, with further funding still under discussion as public trading begins.

The reserves backing the token are held in a Wyoming-chartered trust and managed by Franklin Templeton.

Those reserves are reported to be fully backed, consisting of US dollars, cash equivalents, and short-term US Treasury securities.

Rather than being distributed to token holders, interest generated from the reserve assets is directed to Wyoming public schools.

Why holders receive no yield

At launch, the stablecoin does not offer yield to users who hold it.

State officials have linked this decision to regulatory uncertainty in the US surrounding interest-bearing digital assets.

By avoiding yield payments, Wyoming aims to reduce legal risk while federal rules remain unsettled.

Officials have indicated that the structure could be revisited in the future if clearer guidance emerges at the national level. Any changes would depend on how regulators define the boundaries between stablecoins, securities, and banking products.

Testing payments inside government systems

Beyond acting as a digital dollar, the stablecoin is also being explored as a payment tool for government services.

Wyoming officials have highlighted the cost of card processing fees, which can significantly reduce net revenue for local administrations.

In counties with high transaction volumes and fixed margins, these fees are seen as a growing strain.

By settling payments on-chain, the state is examining whether digital tokens could lower costs and speed up settlement while keeping more value within public systems.

The public launch follows several delays over the past year, although no technical or liquidity issues have been reported so far.

Early trading volumes remain modest, which is typical for a newly issued stablecoin, particularly one issued by a government.

The Wyoming Stable Token Commission is scheduled to meet on January 15 to review early performance and discuss next steps as the experiment moves forward.

The post Wyoming launches state-backed stablecoin as public finance experiment appeared first on CoinJournal.

• The proposal would let regulators suspend transactions before gains are laundered or moved.
• Authorities want to extend stock market-style enforcement tools to crypto trading.
• Recent actions by tax and financial regulators show tighter alignment with traditional finance rules.

South Korea’s financial regulators are reviewing whether to allow transactions to be suspended before suspected price manipulators can move or launder gains.

The idea is to act earlier in fast-moving crypto markets, where profits can be transferred quickly and become harder to trace.

If adopted, the change would mark a significant step in the country’s second phase of crypto regulation, which is expected to expand beyond user protection and address market abuse more directly, alongside work on stablecoin rules that are yet to be formally introduced.

Early intervention tools

The Financial Services Commission, or Financial Services Commission, is reviewing a payment suspension system that would allow regulators to block crypto transactions at an earlier stage.

Local outlet Newsis reported on Tuesday that the proposal would enable authorities to act before suspected manipulators cash out or launder potentially illicit profits.

Under the current framework, freezes often depend on court warrants.

That process can take time, giving suspects room to conceal funds. Regulators argue that crypto markets move faster than traditional assets, making delays more costly.

The proposed system would mirror tools already used in South Korea’s stock market, where accounts linked to suspected manipulation can be frozen before profits are realised.

Closing enforcement gaps

Market watchdogs have flagged specific tactics that can generate large but unstable gains in crypto trading.

These include front-running, automated wash trading, and placing high buy orders that inflate prices.

Such profits can vanish quickly once assets are moved off exchanges.

Regulators say crypto markets require stronger tools because assets can be transferred into private wallets with relative ease. This mobility, they argue, makes early intervention critical.

Lessons from capital markets

South Korea has already expanded its powers in traditional finance. Amendments to the Capital Markets Act, an Capital Markets Act, took effect in April 2025.

These changes allow account freezes for suspected unfair trading or illegal short sales.

According to reports, the FSC discussed extending similar measures to crypto during a closed-door meeting in November.

The talks took place while authorities were reviewing the first price manipulation case handled under the amended capital markets rules.

South Korea adds on regulatory tightening

The proposal builds on a series of measures highlighting South Korea’s effort to bring crypto regulation in line with standards applied in conventional financial markets.

On Oct. 10, the National Tax Service warned that cryptocurrency holdings kept in cold wallets remain subject to enforcement, noting its authority to conduct home searches and seize offline storage devices in tax evasion investigations.

On Dec. 7, the Financial Services Commission examined the idea of applying bank-style liability to crypto exchanges, which would require platforms to compensate users for losses caused by hacks or system failures even in the absence of proven negligence.

The post South Korea weighs preemptive crypto account freezes to curb market abuse appeared first on CoinJournal.

• RWA projects are treated as illegal fundraising, securities, or futures activities under existing law.
• Hong Kong-linked and offshore structures with mainland staff are explicitly targeted.
• Liability extends to the full Web3 service chain, not just token issuers.

China has delivered one of its clearest signals yet on digital finance, formally classifying real-world asset tokenization as an illegal financial activity.

A coordinated notice from seven major financial industry associations places RWA tokenization in the same prohibited category as stablecoins, cryptocurrencies, and crypto mining.

The move shuts down any remaining ambiguity around whether tokenized assets could evolve under future regulatory pilots.

Instead, regulators have drawn a hard line that reaches beyond project issuers to the entire Web3 service chain, including Hong Kong-linked operations and offshore structures with mainland staff.

The declaration was jointly issued by the China Internet Finance Association, the China Banking Association, the China Securities Association, the China Asset Management Association, the China Futures Association, the China Association of Listed Companies, and the China Payment and Clearing Association.

Unified regulatory warning

The associations stated that RWA activities have no legal basis under existing Chinese law.

Tokenization was defined as financing and trading through the issuance of tokens or token-like rights and debt instruments, a structure regulators say introduces layered risks tied to fictitious assets, operational failure, and speculative trading.

Crucially, authorities stressed that no Chinese regulator has approved any form of real-world asset tokenization, eliminating claims that projects are in trial phases or awaiting registration.

Legal observers described the announcement as a rare example of cross-industry coordination, typically reserved for moments when regulators aim to contain systemic financial risk.

Legal breaches outlined

The notice mapped RWA activity directly to violations under China’s Criminal Law and Securities Law.

Token issuance to the public while raising funds can be treated as illegal fundraising.

Facilitating token transactions or distributions without approval may constitute unauthorised public securities offerings.

Trading models that involve leverage or betting mechanisms can fall under illegal futures business operations.

Regulators also rejected the premise that token structures can guarantee ownership or liquidation of underlying assets.

Even where teams claim transparency or genuine collateral, authorities argue that risk spillovers remain uncontrollable.

Hong Kong and offshore routes

The warning explicitly targets projects that attempt to bypass mainland rules through overseas compliance narratives, asset anchoring claims, or technology service exports.

China’s securities regulator is urging domestic brokerages to halt involvement in RWA tokenization activities in Hong Kong, extending the policy reach beyond the mainland.

A key feature of the directive is the liability standard applied to service providers.

Institutions and individuals who knew or should have known that they were supporting virtual currency or RWA-related business can be held accountable.

This objective standard undermines common Web3 models that rely on offshore registration while maintaining teams and operations in China.

Web3 service chain impact

Responsibility is not limited to project founders.

Technology outsourcers, marketing agencies, influencers, payment interface providers, and operational staff all face legal exposure if they support RWA projects aimed at Chinese users.

The notice states that even employing a single operations worker in China can expose an offshore project to enforcement risk.

Regulators linked the crackdown to rising fraud under the RWA label, including schemes involving stablecoins, valueless tokens, and mining narratives used for illegal fundraising and pyramid activities.

The timing also aligns with China’s push to internationalise the digital yuan via a new Shanghai centre for cross-border payments and blockchain services, while restricting private stablecoin issuance to preserve state control over currency issuance.

The post China bans real-world asset tokenization, classifying it as illegal finance appeared first on CoinJournal.

• FIU reviews linked crypto transactions to scams, fraud, gambling networks, and serious criminal activities.
• Non-compliant crypto platforms were fined ₹28 crore in FY 2024–25 for AML breaches.
• Authorities are building intelligence on transaction hotspots and high-risk digital assets.

India is accelerating its push to regulate the crypto sector as enforcement agencies sharpen their focus on financial crime risks linked to digital assets.

During the 2024–25 financial year, 49 cryptocurrency exchanges formally registered with the Financial Intelligence Unit, marking a decisive step toward tighter anti-money laundering and counter-terror financing controls.

The move reflects a broader regulatory recalibration as authorities respond to growing evidence of crypto misuse and expand scrutiny across platforms operating in the country.

The regulatory shift has also triggered wider discussion within the domestic crypto ecosystem.

A recent post on X by CoinDCX CEO Sumit Gupta drew attention to the intensifying compliance environment, as exchanges increasingly operate under FIU supervision.

The post circulated as registration, monitoring, and enforcement became central themes in India’s crypto policy during the financial year.

FIU flags misuse risks

A review of Suspicious Transaction Reports submitted by crypto platforms during FY 2024–25 revealed repeated patterns of high-risk activity, reported the Press Trust of India.

The analysis found crypto funds linked to scams, fraud, gambling networks, unaccounted transfers, and peer-to-peer misuse.

The FIU also identified more serious risks, including links to dark net services, terror financing, and child sexual abuse material.

Exchanges under one regulator

Of the 49 registered exchanges, 45 are based in India, and four operate overseas.

Unlike several jurisdictions where crypto oversight is split across multiple agencies, India has designated the FIU, which operates under the Ministry of Finance, as the single authority responsible for supervising crypto exchanges.

Industry leaders have pointed out that India’s crypto market is more competitive than it is often perceived, with multiple platforms vying for users and liquidity.

This competitive environment, they argue, can support innovation, provided regulatory expectations are clear and consistently enforced across all players.

Compliance rules explained

Crypto exchanges in India are classified as Virtual Digital Asset Service Providers and have been covered under the Prevention of Money Laundering Act since 2023.

As part of this framework, platforms are required to submit Suspicious Transaction Reports, identify wallet owners, track token fundraising activity such as IPO-style launches, and monitor transfers between hosted and un-hosted wallets.

Following registration, exchanges must also disclose their banking relationships, appoint compliance officers, conduct internal audits, apply risk-based customer checks, screen transactions against sanctions lists, and carry out regular risk assessments.

All relevant data must be shared with the FIU to support ongoing supervision.

Enforcement and penalties

Enforcement has accompanied registration. During FY 2024–25, crypto platforms that failed to meet Anti Money Laundering (AML) obligations were fined a combined ₹28 crore.

The FIU also mapped regional transaction hotspots and identified digital assets frequently associated with illicit activity, strengthening the government’s broader monitoring and intelligence capabilities.

The post India tightens crypto oversight as exchanges move under FIU monitoring appeared first on CoinJournal.

• Most breaches involved failures in customer due diligence and identity verification processes.
• The action coincides with reports of a potential majority acquisition by Mirae Asset.
• The case reinforces stricter regulatory expectations across South Korea’s crypto sector.

South Korea’s year-end move against Korbit marks a decisive moment for the country’s digital asset industry, as regulators signal that gaps in compliance will carry real consequences.

On December 31, the Financial Intelligence Unit closed an on-site investigation into one of the country’s longest-operating exchanges with a significant financial penalty and management-level sanctions.

The action, based on findings from an October inspection, places renewed focus on how exchanges verify users, manage risk, and expand services.

It also lands at a sensitive time for Korbit, underscoring how regulatory discipline is shaping the future of South Korea’s crypto market.

The FIU announced a 2.73 billion won ($1.88 million) fine after identifying nearly 22,000 breaches linked to anti-money laundering and customer verification obligations.

The violations were uncovered during an inspection conducted between October 16 and 29, 2024, with the results later reviewed by the Sanctions Review Committee.

Alongside the fine, the regulator issued an institutional warning and imposed individual accountability measures on senior executives.

Inspection findings

A large share of the violations stemmed from failures in customer due diligence.

The FIU found roughly 12,800 cases where identity checks were not properly conducted.

These included the acceptance of unclear or unverifiable identification documents, incomplete address information, and lapses in mandatory re-verification processes.

In several instances, users were allowed to continue trading even after their risk profiles increased, without additional checks being applied.

Such practices run counter to requirements that higher-risk customers be subject to enhanced scrutiny rather than standard monitoring.

The review also identified about 9,100 cases where customers were permitted to trade before identity verification was fully completed.

South Korean rules restrict transactions by unverified users, making these cases a direct breach of core compliance standards.

Accountability at the top

Beyond operational failures, the enforcement action extended responsibility to leadership.

The FIU issued an institutional warning to Korbit, while the exchange’s chief executive received a caution, and its reporting officer was reprimanded.

This approach reflects a broader regulatory emphasis on governance and internal controls, where accountability does not stop at automated systems or compliance teams.

Instead, senior management is expected to ensure that regulatory requirements are embedded across day-to-day operations and decision-making processes.

Overseas transfers and new services

Regulators also highlighted weaknesses beyond customer onboarding.

Inspectors flagged 19 virtual asset transfers involving three overseas virtual asset service providers that were not properly reported.

South Korean rules require exchanges to disclose dealings with foreign entities and restrict transactions with unregistered providers.

In addition, the FIU identified 655 cases where Korbit failed to carry out mandatory money laundering risk assessments before introducing new transaction types.

These included services linked to non-fungible tokens, an area of rapid growth that remains subject to the same compliance obligations as other digital asset products.

Timing and sector impact

The enforcement action comes just days after reports that Mirae Asset is said to be considering acquiring 92% of Korbit for up to 140 billion won ($97 million).

Korbit currently ranks as the fourth-largest exchange among South Korea’s six incorporated crypto platforms, placing it firmly within the regulator’s line of sight.

The FIU said full details of the sanctions will be disclosed after a minimum 10-day period for opinion submissions.

The post South Korea fines Korbit $1.8M over compliance failures appeared first on CoinJournal.

• South Korea delays its Digital Asset Basic Law to 2026 amid disputes over stablecoin oversight authority.
• Lawmakers pause crypto legislation as regulators clash on who should control stablecoin reserves and enforcement.
• Regulatory uncertainty grows as Korea weighs investor protection against monetary control and innovation.

South Korea’s push to formalise crypto regulation has slowed again, with authorities confirming that the Digital Asset Basic Law will not be submitted until 2026.

The delay highlights deep divisions over how stablecoins should be supervised in one of Asia’s most active digital asset markets, even as crypto products become more tightly linked to the wider financial system.

The setback does not reflect a lack of interest in regulation.

Instead, it underlines how complex stablecoin oversight has become for policymakers, balancing innovation, financial stability, and monetary control.

With no agreement yet on who should hold ultimate authority, lawmakers have opted to pause rather than advance a bill with unresolved structural gaps.

Purpose of the proposed law

The Digital Asset Basic Law is intended to act as the backbone of South Korea’s crypto framework.

A core aim is investor protection, achieved by holding digital asset operators to stricter legal standards than before.

One of the most significant proposals is the introduction of no-fault liability, which would make operators responsible for user losses even if negligence cannot be proven.

Another pillar of the bill focuses on reducing systemic risk from stablecoins. The draft requires issuers to maintain reserves exceeding 100% of the circulating supply.

These reserves must be held at banks or approved institutions, with clear separation from the issuer’s own balance sheet.

The structure is designed to limit contagion risks if a stablecoin issuer fails.

Stablecoins and regulatory control

Stablecoins have emerged as the main fault line in the debate. While regulators broadly agree that stronger oversight is necessary, they remain split on who should enforce reserve rules and supervision.

The Financial Services Commission and the Bank of Korea have yet to align on how responsibilities should be divided.

These disagreements have complicated decisions around licensing, enforcement powers, and the treatment of reserve assets.

Rather than pushing through a compromised framework, authorities have delayed the bill to allow further coordination between financial regulators and monetary authorities.

Market uncertainty grows

The postponement has not triggered an immediate market reaction, but it adds another layer of uncertainty for crypto firms operating in South Korea.

Exchanges, payment providers, and stablecoin issuers continue to expand in an environment where long-term regulatory expectations remain unclear.

Uncertainty can have practical effects.

Firms may slow product launches, delay investment decisions, or consider shifting certain operations to jurisdictions with clearer rules.

For investors, the absence of a completed framework complicates assessments of risk and compliance.

Politics and monetary strategy

Political dynamics are also shaping the timeline. The ruling Democratic Party is now working to merge several lawmaker proposals into a revised digital asset bill.

At the same time, strategic concerns around monetary sovereignty are becoming more prominent.

President Lee Jae Myung has identified a Korean won-backed stablecoin as a national priority, arguing that it could counter the growing dominance of US dollar-linked stablecoins in global crypto markets.

These ambitions increase pressure on regulators to ensure that any framework aligns with broader monetary policy goals.

The delayed Digital Asset Basic Law is meant to represent the second phase of South Korea’s crypto regulation.

The first phase, already in force, targeted unfair trading practices.

The post South Korea delays digital asset law as stablecoin oversight divides regulators appeared first on CoinJournal.

• Current crypto profits can face tax rates of up to 55% under the miscellaneous income system.
• Only specified crypto assets under Japan’s financial framework will qualify for the lower rate.
• A three-year loss carry-forward for crypto investments will begin in 2026.

Japan is preparing to recalibrate how cryptocurrency gains are taxed, marking a notable change in its long-standing approach to digital assets.

Under the government’s 2026 tax reform plan, profits from certain crypto investments could be taxed at a flat rate of 20%, replacing a system that currently treats crypto gains as miscellaneous income.

That classification has pushed effective tax rates as high as 55%, drawing sustained criticism from investors and industry participants.

The proposed reform suggests that policymakers in Japan are moving toward a framework that recognises crypto as part of the broader financial market, while still maintaining firm regulatory controls.

A rethink of crypto taxation

For years, Japan’s crypto tax rules have stood apart from those applied to traditional investments. Shares and investment trusts benefit from a flat tax regime, offering clarity and predictability for investors.

Crypto, by contrast, has been subject to progressive income tax rates, often cited as a deterrent to participation.

The planned shift to a flat 20% rate aims to reduce this imbalance.

By aligning crypto gains more closely with equity taxation, the government appears to be addressing concerns that the current system discourages domestic trading and long-term holding.

The reform also reflects the growing role of digital assets in investment portfolios, moving beyond short-term speculation.

Scope and eligibility limits

The tax cut will not apply across the entire crypto market.

Instead, it will be limited to “specified crypto assets”, a category linked to digital assets handled by firms registered under Japan’s Financial Instruments and Exchange Act framework.

This structure is designed to ensure that only assets operating within a recognised regulatory perimeter benefit from the lower rate.

Major cryptocurrencies are widely expected to qualify, although authorities have yet to publish final criteria.

By narrowing eligibility, regulators can promote activity in established and liquid assets while maintaining tighter oversight of less transparent tokens.

Regulation alongside incentives

Tax reform is being paired with broader regulatory adjustments.

By bringing crypto under legal structures similar to those governing traditional financial instruments, Japan aims to strengthen investor protections.

Measures are expected to improve standards around custody, disclosures, and operational practices.

This approach signals that the government’s objective is not deregulation, but integration.

Clearer rules and stronger safeguards could make crypto participation more accessible to investors who have previously avoided the market due to uncertainty around compliance and risk.

Loss offsets and investment products

Another element of the 2026 reform is the introduction of a three-year loss carry-forward for crypto investments.

This would allow investors to offset future gains with past losses, a mechanism already familiar in equity markets but previously unavailable for crypto.

Japan is also expanding its range of crypto-linked investment products.

After launching its first XRP-linked exchange-traded fund, the country is reportedly considering additional funds tied to approved digital assets.

Together, these measures point to a gradual effort to embed crypto within the existing investment ecosystem rather than treat it as a parallel market.

The post Japan signals a friendlier crypto regime with sweeping tax reform plans appeared first on CoinJournal.

• IMF says talks with El Salvador continue, focusing on transparency, public funds protection, and Bitcoin-related risks.
• Negotiations to sell or wind down El Salvador’s Chivo Bitcoin wallet are well advanced under the IMF loan program.
• Despite IMF pressure, El Salvador continues daily Bitcoin purchases while GDP growth is projected near 4%.

The International Monetary Fund (IMF) said discussions with El Salvador over its Bitcoin-related policies remain ongoing, with a focus on improving transparency, protecting public funds, and reducing financial risks.

The update came as part of the IMF’s second review of El Salvador’s 40-month Extended Fund Facility (EFF), under which the country secured a $1.4 billion loan in 2024 after prolonged negotiations strained by its Bitcoin adoption.

According to the IMF, talks are particularly advanced regarding the future of the government-run Chivo Bitcoin wallet, including a potential sale or wind-down of the platform.

Chivo, launched in September 2021 as part of El Salvador’s Bitcoin rollout, has faced widespread criticism since its debut, including allegations of identity theft, fraud, technical failures, and frozen user accounts.

Chivo wallet under negotiation

The IMF confirmed that negotiations for the sale of the Chivo wallet are “well advanced,” marking a significant step in scaling back the government’s direct involvement in Bitcoin infrastructure.

One of the architects of the wallet said last year that the application should be shut down due to the controversy it generated since its launch.

As part of the EFF agreement, El Salvador committed to reducing public sector participation in Bitcoin-related activities.

In March, the IMF formally asked the country to halt Bitcoin accumulation through purchases and mining and to dismantle public structures used to acquire the digital asset.

The fund later said El Salvador has complied with these commitments, including initiating a full phase-out of the Chivo wallet.

Despite these steps, several private-sector Bitcoin wallets are expected to continue operating in the country.

At the time the IMF loan was agreed, Stacy Herbert, director of El Salvador’s National Bitcoin Office, said that while Chivo’s role would change, private wallet providers would continue to serve users.

Bitcoin accumulation remains a point of tension

Bitcoin policy remains a central source of friction between El Salvador and the IMF.

The fund has repeatedly warned that Bitcoin’s price volatility poses risks to public finances and has pushed for limits on government exposure.

Nevertheless, El Salvador continues to report ongoing Bitcoin purchases.

Last month, the country added 1,098 BTC to its national reserves, worth nearly $100 million at the time, according to official disclosures.

Data published by El Salvador’s Bitcoin Office shows that the country holds about 7,509 BTC, with purchases continuing on a daily basis, even during periods of high market volatility.

In May, the IMF reiterated that “efforts will continue” to ensure El Salvador does not accumulate additional Bitcoin.

President Nayib Bukele has publicly rejected the idea of stopping purchases, stating in March that the policy would continue regardless of external pressure.

IMF praises economic performance

While flagging ongoing concerns around Bitcoin, the IMF struck a positive tone on El Salvador’s broader economic performance.

The fund said the economy is expanding faster than expected, with real GDP growth projected to reach around 4% this year and strong prospects for next year.

The IMF also noted that fiscal targets remain on track, foreign reserves are increasing, and domestic borrowing has declined.

Structural reforms have advanced, including new banking stability legislation, the adoption of Basel III standards, and updated anti-money laundering rules.

The IMF said it will maintain close engagement with Salvadoran authorities as it works toward a staff-level agreement to complete the second EFF review, underscoring that Bitcoin-related risks remain under scrutiny even as the country’s macroeconomic outlook improves.

The post IMF advances talks with El Salvador on Bitcoin policy and Chivo wallet future appeared first on CoinJournal.

Indonesia has drawn a clearer legal boundary around its fast-growing crypto market.

The Financial Services Authority (OJK) has released an official whitelist of licensed digital asset platforms, setting out which exchanges are legally allowed to operate in the country.

The move gives investors a single reference point to check whether a crypto provider is authorised and signals a more structured phase of oversight for digital assets.

It also arrives as global firms step up efforts to enter Southeast Asia’s largest economy, where crypto participation has expanded rapidly alongside traditional capital markets.

The whitelist names 29 approved entities and their associated applications or platforms.

According to Otoritas Jasa Keuangan, the list is intended to help the public distinguish between licensed operators and those that are not authorised.

Users have been urged to trade only with platforms included on the list and to treat any unlisted services as unlicensed operators.

Whitelist reshapes crypto access

By publishing a formal register, the regulator has effectively tightened the gateway into Indonesia’s crypto ecosystem.

Until now, retail users often relied on fragmented information to verify whether an exchange was compliant.

The whitelist consolidates this process, offering a regulator-backed reference that places responsibility on platforms to maintain their licensed status.

The announcement also gives enforcement greater clarity.

Platforms operating outside the list are now explicitly positioned as unauthorised, strengthening the regulator’s hand in tackling illicit or non-compliant activity across digital asset markets.

Global firms move into Indonesia

The regulatory clarity comes as international crypto and trading firms seek exposure to Indonesia’s expanding investor base.

Earlier this month, Robinhood signed agreements to acquire Indonesian brokerage Buana Capital and licensed digital asset trader PT Pedagang Aset Kripto.

The transactions provide the company with a direct route into a market that counts more than 19 million capital-market investors and around 17 million crypto traders.

In September, Hong Kong-based OSL Group completed its acquisition of local exchange Koinsayang.

The deal secured regulatory approval for OSL to offer both spot and derivatives trading services in Indonesia, reinforcing the country’s appeal to established regional players.

Rules tighten around digital assets

The whitelist follows OJK Regulation No. 23/2025, which introduces stricter controls over digital financial assets, including crypto and related derivatives.

Under the regulation, exchanges are barred from facilitating trades in assets that are not registered or approved by a licensed digital asset exchange.

The framework also formalises the treatment of digital asset derivatives. Exchanges must obtain prior approval from the regulator before offering such products.

In addition, platforms are required to implement margin mechanisms using segregated funds or digital assets, while consumers must pass a knowledge test before accessing derivatives trading.

The regulator has said these measures are designed to align Indonesia’s market with international supervisory standards and enhance investor protection.

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• The exchange restarted access on Thursday, including spot trading across 100 currency pairs.
• FCA financial promotion rules introduced in October 2023 led several crypto firms to end UK operations.
• The UK government has said it intends to establish a crypto rulebook by 2027.

Bybit, the world’s second-largest cryptocurrency exchange by trading volume, says it has restarted services in the UK, nearly two years after tougher rules on the promotion and marketing of crypto products pushed firms to pull back.

The company, which says it has around 80 million users globally, relaunched UK access on Thursday with a set of products that includes spot trading across 100 currency pairs, reports CoinDesk.

The move comes as the Financial Conduct Authority continues to scrutinise how crypto services are advertised to British residents, while the UK government has signalled it wants a fuller crypto rulebook in place by 2027.

Why Bybit left and what changed

The FCA tightened its financial promotion regime for crypto advertising in October 2023, triggering a wave of operational changes across the industry and prompting several firms to end UK activity.

According to CoinDesk, Bybit said its return is built around meeting FCA financial promotion standards, with an emphasis on clearer communications and transparency for UK users.

The company is not licensed in the UK, but says it is operating within a framework designed to comply with the FCA’s requirements for promotions.

That framework matters because, under the rules, crypto marketing aimed at UK consumers must be approved by an authorised firm unless an exemption applies.

What UK users can access now

Bybit said UK customers can again use its services, including spot trading across 100 currency pairs, notes CoinDesk.

The exchange described the restart as a reopening of UK services rather than a limited pilot, positioning it as a return to the market after the regulatory shift.

Bybit’s policy team framed the UK as a market with a sophisticated financial ecosystem and a clearer regulatory direction, saying the exchange intends to introduce products tailored for UK users while prioritising transparency and compliance.

How Archax is enabling compliant crypto promotion

To support its UK activity, Bybit will operate and market its services via London-based crypto exchange Archax.

Archax holds a specific FCA permission that allows it to approve financial promotions, a route that can enable unauthorised firms to legally market and provide services to UK consumers.

Archax said it is supporting Bybit’s compliant access to the UK market and pointed to prior work helping other large exchanges, states CoinDesk,  including Coinbase and OKX, reach UK users without needing their own authorisation.

What the 2027 crypto rulebook signal means

Alongside the FCA’s stricter approach to promotions, the UK government has said it intends to establish a crypto rulebook by 2027.

That announcement has fuelled expectations of a more defined operating environment for exchanges, even as marketing standards remain a key gatekeeper for consumer-facing activity in the near term.

Industry watchers see the arrangement as another test case for how large global crypto platforms re-enter the UK without holding direct regulatory authorisation under evolving financial promotion oversight regimes globally.

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• Michael Selig is confirmed as CFTC chair, ending a long interim period at the US derivatives regulator.
• Selig signals a narrower enforcement focus as Congress weighs expanding the CFTC’s crypto authority.
• Leadership change comes as debate intensifies over digital assets and US market structure rules.

After nearly a year of temporary leadership, Michael Selig was confirmed by the US Senate on December 18 and will soon be sworn in as the 15th chairman of the Commodity Futures Trading Commission

His appointment brings an end to an extended interim period at the derivatives market regulator and places a familiar figure back at the centre of US market oversight.

Selig’s confirmation comes as policymakers and market participants closely track how the CFTC will position itself amid ongoing debates over digital assets, market structure, and regulatory coordination.

With Congress weighing legislation that could significantly expand the agency’s authority, the timing of the leadership change is drawing heightened attention across traditional and crypto markets.

Return to a familiar regulator

Selig’s professional ties to the CFTC run deep.

He first joined the agency in 2014, serving as a law clerk to then-Commissioner Christopher Giancarlo, who later became chairman.

After leaving the agency, Selig moved into private practice, where he advised trading firms, exchanges, and digital asset companies on compliance with US securities and commodities laws.

Earlier this year, Selig returned to government service as chief counsel to the Securities and Exchange Commission’s Crypto Task Force.

In that role, he acted as a senior advisor to Chairman Paul Atkins and was involved in inter-agency discussions on supervising digital asset markets, placing him at the intersection of securities and commodities regulation.

Leadership transition at the CFTC

Selig will succeed Caroline Pham, who has served as acting chair for much of 2025.

For several months, Pham was also the CFTC’s only Senate-confirmed commissioner, a situation that underscored the agency’s leadership vacuum during a period of regulatory change.

Under Pham’s tenure, the CFTC continued to operate but with limited long-term direction, as major policy decisions awaited permanent leadership.

Selig’s confirmation restores a Senate-backed chair at a moment when the commission’s mandate could soon broaden.

Enforcement direction and priorities

During his confirmation hearing, Selig signalled support for a more targeted enforcement strategy.

He argued that focusing on minor technical violations can consume agency resources and encourage legitimate firms to move operations offshore, without materially improving market integrity.

At the same time, he emphasised that the CFTC must remain active in pursuing fraud, manipulation, and abusive conduct.

His stated approach aligns closely with policies advanced under Pham, where enforcement efforts were narrowed to prioritise complex fraud cases and retail harm rather than paperwork-based violations.

Over the past year, the CFTC also revised its investigation procedures to provide firms with greater transparency and additional time during enforcement processes, reflecting a shift in regulatory tone.

Crypto oversight and legislative backdrop

On digital assets, Selig is expected to continue efforts to bring crypto-related activity into regulated US markets.

The CFTC has already launched pilot initiatives covering tokenised collateral and listed spot crypto products on regulated exchanges.

Selig has previously supported clearer market structure rules and stronger coordination with the SEC, the Treasury Department, and banking regulators.

His confirmation coincides with congressional debate over bills that could grant the CFTC primary oversight of spot crypto commodity markets, potentially expanding the agency’s role at a critical stage in crypto regulation.

With a full agenda and limited transition time, Selig’s early decisions will be closely watched across financial markets.

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