• Binance launched a USD1 rewards campaign, distributing $40m in WLFI tokens through weekly airdrops.
• WLFI payouts are based on users’ net USD1 balances, with higher rewards for USD1 used as collateral.
• USD1’s market cap has surpassed $3 billion, while WLFI activity has increased across DeFi and payroll uses.

Binance has rolled out a new rewards campaign for users holding USD1, offering weekly WLFI token airdrops with a total of $40 million in WLFI earmarked for distribution.

The exchange said eligible accounts that maintain a USD1 balance between Jan. 23 and Feb. 20 will receive rewards throughout the programme.

The initiative ties WLFI payouts directly to net USD1 balances on Binance, using a snapshot-based system to calculate qualifying amounts.

Binance is positioning the campaign as an incentive for users who hold or deploy USD1 across supported products, while both USD1 and WLFI continue to see growing activity across the wider crypto ecosystem.

How Binance will distribute WLFI rewards

Binance said WLFI rewards will be paid once a week, starting Feb. 2.

Each weekly distribution will cover activity from the previous seven days.

The campaign is structured to release roughly $10 million worth of WLFI tokens per week, spread across four consecutive weeks, which brings the total allocation to $40 million in WLFI.

The exchange said the rewards are designed to reflect users’ qualifying USD1 balances over time, rather than a single moment in the campaign window.

Which USD1 balances count for eligibility

Eligibility is based on users’ net USD1 balances held on Binance, with multiple account types included in the calculation.

Binance confirmed that USD1 stored in Spot, Funding, Margin, and USDⓈ-M Futures accounts will all count toward the campaign’s rewards calculation.

However, borrowed funds are excluded. Binance said reward calculations are based on net USD1 balances, meaning any USD1 that has been borrowed does not qualify for WLFI rewards.

The exchange also said that USD1 used as collateral in margin or futures accounts earns a higher reward rate.

This introduces an added incentive for users who allocate USD1 into collateral-based trading products, rather than keeping it entirely idle in standard wallets.

Snapshot and rate system used for payouts

Binance said it will take hourly snapshots of user balances throughout the campaign period. However, the rewards calculation does not rely on an hourly average.

Instead, Binance will use the lowest USD1 balance recorded each day to determine a user’s qualifying amount for that day.

For each weekly payout, Binance will then calculate rewards using a seven-day average balance.

This ties distributions to consistency because a single daily dip in holdings could reduce the qualifying amount for that day and then affect the overall weekly average.

Binance also said payouts will use an effective annualised rate, which will be set at the time of each distribution.

As a result, the rate applied could vary between weekly drops depending on the conditions Binance sets when rewards are released.

USD1 growth and WLFI activity in early 2026

USD1, launched in April 2025, is described as a multichain stablecoin that is fully backed one-to-one by US dollars and money market funds.

Since its launch, it has recorded sharp growth. According to data from DeFiLlama, USD1’s market capitalisation now exceeds $3 billion.

The stablecoin is available across several blockchains, including Monad, Ethereum, Solana, and Aptos.

WLFI, the main token of the World Liberty Financial ecosystem, has also seen increased activity in early 2026.

It has recently been added to payroll services, decentralised finance lending platforms, and on-chain liquidity venues.

The token has drawn new interest and partnerships in recent weeks, though its connection to US President Donald Trump has also faced criticism, with some pointing to concerns around a potential conflict of interest.

Binance said users must complete identity verification and live in eligible jurisdictions to take part in the programme.

The exchange added that broker accounts are excluded and noted that reward timing may vary due to operational conditions.

The post Binance launches USD1 rewards programme with WLFI token airdrops appeared first on CoinJournal.

• 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.

• CCA runs fully on-chain auctions that clear bids block by block for gradual price discovery.
• After auctions end, liquidity is automatically added to a Uniswap v4 pool at the final cleared price.
• The model aims to reduce sniping, front-running, and bundled transactions during token launches.

Uniswap has rolled out its Continuous Clearing Auctions (CCA) feature on Base, giving developers a new way to launch tokens fully on-chain with built-in price discovery and automatic liquidity setup.

The decentralised exchange confirmed the rollout on Jan. 22, with the CCA framework now available to builders using Uniswap v4 on the Base network.

The update expands Uniswap’s structured token launch tools to one of the busiest Ethereum layer-2 ecosystems, offering teams a single workflow for auctions, pricing, and liquidity.

With CCA now live for Base developers, projects can run token sales that settle gradually over time rather than relying on one-time listings or fixed-price launches that can trigger sharp price swings.

What CCA does on Base

CCA allows teams to run fully on-chain token auctions where tokens are sold gradually instead of all at once.

The mechanism clears bids block by block, which helps prices form naturally before open trading begins.

Once the auction ends, liquidity is added automatically to a Uniswap v4 pool at the final cleared price.

This reduces the need for teams to manually create a pool after launch and aims to avoid common listing issues linked to sudden volatility at the start of trading.

Developers can also adjust auction settings to fit their launch requirements while keeping the entire process on-chain and transparent.

How auctions reduce launch risks

The model is designed to create a fairer starting point for new tokens by spreading distribution over time.

Rather than concentrating activity into a single launch moment, CCA introduces a phased selling process that can lower the impact of sniping, front-running, and bundled transactions.

By clearing bids over multiple blocks, the auction format supports more gradual price discovery.

This can help reduce sharp dislocations that often happen when tokens go live with limited liquidity or when early trading activity is dominated by automated strategies.

For teams, this approach bundles the early steps of a token launch into one on-chain flow, covering auction mechanics, pricing formation, and liquidity provisioning without requiring separate manual actions.

Open access for all Base developers

Uniswap’s deployment on Base is open to all developers building on the network. The feature does not require approvals or special access, meaning any team can integrate CCA into its token launch process.

This open availability may appeal to projects looking for alternatives to private sales or unstable fair-launch formats.

It also supports teams that want a more standardised on-chain approach to distributing tokens while setting up liquidity in a predictable way once the auction completes.

With CCA, teams can rely on the auction’s final cleared price to determine the pool setup, rather than selecting an initial listing price independently.

Uniswap’s wider v4 expansion

The Base rollout follows Uniswap’s broader expansion of v4 tools across multiple chains in recent months.

CCA was rolled out in late 2025 and has already been used by projects such as Aztec Network for early price discovery and liquidity setup.

Uniswap has also been integrating with partners such as Revolut for fiat access and Ledger for safe swaps via its trading API.

Separately, the protocol has gone live on networks including Monad and X Layer.

By bringing CCA to Base, Uniswap is extending structured launch infrastructure into a major Ethereum layer-2 environment, while continuing to expand its product suite and chain support across decentralised finance.

The post Uniswap brings token launch auctions and price discovery to Base 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.

• Funds were split between two wallets holding $3.3 million and $880,000.
• The exploit involved MEV-linked addresses and preemptive transaction timing.
• MakinaFi has not released a technical statement or mitigation plan.

A major crypto breach has struck MakinaFi, draining millions in Ethereum from the decentralised finance platform.

The incident resulted in the loss of 1,299 ETH, valued at roughly $4.13 million at the time of the attack.

PeckShieldAlert flagged the theft on X, where it traced the movement of the stolen assets across Ethereum wallets.

The breach quickly gained traction online as blockchain analysts and on-chain trackers pieced together the flow of funds.

It became evident that the attacker moved fast, using tools and tactics that suggest a high level of technical precision.

Makinafi loses millions in ether

The exploit saw a sudden outflow of Ethereum from MakinaFi, although the platform has not yet issued a public explanation or technical breakdown.

Users and observers are left to rely on data from Etherscan and posts from security firms to understand what happened.

The total 1,299 ETH was siphoned off through a set of carefully timed transactions.

While MakinaFi has yet to share how the vulnerability was exploited, the timing and transaction order suggest that the attack wasn’t random.

There was no immediate freeze or recovery attempt reported from MakinaFi’s side.

Two wallets hold the stolen funds

On-chain data shows the stolen ETH was split between two addresses.

The first wallet, marked as 0xbed2…dE25, currently holds an estimated $3.3 million. The second, 0xE573…f905, contains around $880,000.

These wallets have not yet moved the funds further, but blockchain analysts are keeping a close eye on them.

The attacker has so far avoided sending the ETH to known mixing services or exchanges, but watchers remain alert to any shift in movement patterns.

Builder activity reveals exploit timing

Further investigation revealed links to an MEV Builder address (0xa6c2…).

This detail points to a transaction ordering strategy often used to exploit timing advantages within the blockchain.

PeckShieldAlert noted that some of the activity involved preemptive execution, a hallmark of MEV exploitation.

The use of builder-side execution implies a high degree of automation and planning.

The attacker likely used MEV tools to front-run or reorder transactions, increasing their chances of success and reducing the likelihood of detection during the transfer.

Community tracks next steps

MakinaFi has not issued any official response or update since the incident was flagged.

Without a public statement or action plan, it’s unclear whether the platform is investigating, attempting to recover the funds, or planning to compensate users.

Meanwhile, the blockchain community continues to track the stolen ETH.

Any attempt to combine the funds or offload them through exchanges could offer a chance for intervention.

Analysts are watching for token mixing, wallet consolidations, or transfers to centralised platforms, which may trigger alerts or freezes.

The lack of communication from MakinaFi leaves open questions around security readiness and risk management.

Until a full breakdown is shared, the technical details behind the breach remain largely speculative.

For now, the stolen ETH sits idle but visible — and the crypto world watches to see what happens next.

The post MakinaFi hit by $4.1M Ethereum hack as MEV tactics suspected 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.

• Only VASP-registered platforms will stay available on the Play Store.
• Local exchanges like Upbit and Bithumb could gain more market share.
• Some traders may shift towards DeFi and non-custodial wallets.

South Korea’s crypto market is facing a major shift in how traders access overseas centralised exchanges.

Many foreign cryptocurrency exchange (CEX) apps are expected to become unavailable for download or unable to receive updates, through South Korea’s Google Play Store.

The change is linked to a Google policy update that ties app availability to local licensing requirements.

As a result, only platforms that meet South Korea’s regulatory standards will remain listed.

While the move does not fully block international trading services, it creates new barriers for users who rely on global exchanges through mobile apps.

Google Play tightens crypto app compliance rules

Google’s updated policy connects crypto app distribution to regulatory approval in each region.

In South Korea, that means crypto exchanges and wallet providers must hold valid local registration and follow strict compliance rules.

Only exchanges registered as Virtual Asset Service Providers (VASPs) in South Korea can continue operating normally on Google Play.

This includes meeting tough anti-money laundering (AML) measures and security obligations required by the Korean financial authorities.

Since only a limited number of overseas platforms have secured VASP status in the country, most foreign exchanges will be blocked from new downloads and future app updates on the Play Store.

This approach effectively makes Android app access dependent on domestic licensing, even if the exchange continues offering services elsewhere.

Overseas platforms remain accessible but less convenient

South Korean users are not completely cut off from foreign exchanges.

They can still use overseas platforms through mobile web browsers or manually install apps using APK files.

However, browser-based trading tends to be less smooth for active users, with weaker performance and fewer app-level features.

APK sideloading also brings extra risks because it bypasses Google Play’s built-in security checks.

Users installing crypto apps outside official channels may face higher exposure to malware, phishing attacks, and compromised applications.

That creates added pressure on traders who want mobile access but also need a safe environment for managing funds.

Domestic exchanges could gain more market control

The policy change may also reshape South Korea’s crypto market structure by limiting competition from global platforms.

With fewer overseas apps available through Google Play, domestic exchanges such as Upbit and Bithumb could strengthen their position.

A larger share of trading activity may shift to local platforms simply because they remain easier to download, update, and use on Android devices.

This could give domestic exchanges more influence over trading volume, token listings, and fee structures.

Over time, reduced international competition could also affect how quickly new features and products reach Korean users, especially if access to offshore platforms becomes less practical for everyday trading.

DeFi alternatives may grow but scrutiny remains

With centralised mobile access restricted, some traders may look towards decentralised finance tools.

Decentralised exchanges and non-custodial wallets are not subject to the same Google Play licensing requirement, which could make them appealing to users seeking wider access to digital assets.

However, this does not remove the risks linked to regulation and tax compliance.

South Korean authorities have continued tightening reporting requirements and enforcement across the crypto sector.

That means users shifting into DeFi still face uncertainty, especially as policymakers focus more on transparency and monitoring.

How global crypto exchanges may adapt

Overseas exchanges may not leave the South Korean market completely.

Instead, some could explore ways to stay active by partnering with, or taking equity stakes in, Korean firms that already hold VASP licences.

A past example is Binance’s approach with Gopax, which signalled how global platforms may use local relationships to maintain a presence in tightly regulated markets.

Even so, any exchange that becomes compliant would still face restrictions on what it can offer.

Products like crypto derivatives remain prohibited under South Korean regulations, limiting the range of services available even under a licensed structure.

For South Korean users, the result may be a market where mobile access increasingly depends on domestic rules, pushing trading activity towards locally approved platforms.

The post South Korea limits foreign crypto exchange access as Google Play enforces licensing appeared first on CoinJournal.

• Group-IB published its report on Jan. 15 and said the method could make disruption harder for defenders.
• The malware reads on-chain data, so victims do not pay gas fees.
• Researchers said Polygon is not vulnerable, but the tactic could spread.

Ransomware groups usually rely on command-and-control servers to manage communications after breaking into a system.

But security researchers now say a low-profile strain is using blockchain infrastructure in a way that could be harder to block.

In a report published on Jan. 15, cybersecurity firm Group-IB said a ransomware operation known as DeadLock is abusing Polygon (POL) smart contracts to store and rotate proxy server addresses.

These proxy servers are used to relay communication between attackers and victims after systems are infected.

Because the information sits on-chain and can be updated anytime, researchers warned that this approach could make the group’s backend more resilient and tougher to disrupt.

Smart contracts used to store proxy information

Group-IB said DeadLock does not depend on the usual setup of fixed command-and-control servers.

Instead, once a machine is compromised and encrypted, the ransomware queries a specific smart contract deployed on the Polygon network.

That contract stores the latest proxy address that DeadLock uses to communicate. The proxy acts as a middle layer, helping attackers maintain contact without exposing their main infrastructure directly.

Since the smart contract data is publicly readable, the malware can retrieve the details without sending any blockchain transactions.

This also means victims do not need to pay gas fees or interact with wallets.

DeadLock only reads the information, treating the blockchain as a persistent source of configuration data.

Rotating infrastructure without malware updates

One reason this method stands out is how quickly attackers can change their communication routes.

Group-IB said the actors behind DeadLock can update the proxy address stored inside the contract whenever necessary.

That gives them the ability to rotate infrastructure without modifying the ransomware itself or pushing new versions into the wild.

In traditional ransomware cases, defenders can sometimes block traffic by identifying known command-and-control servers.

But with an on-chain proxy list, any proxy that gets flagged can be replaced simply by updating the contract’s stored value.

Once contact is established through the updated proxy, victims receive ransom demands along with threats that stolen information will be sold if payment is not made.

Why takedowns become more difficult

Group-IB warned that using blockchain data this way makes disruption significantly harder.

There is no single central server that can be seized, removed, or shut down.

Even if a specific proxy address is blocked, the attackers can switch to another one without having to redeploy the malware.

Since the smart contract remains accessible through Polygon’s distributed nodes worldwide, the configuration data can continue to exist even if the infrastructure on the attackers’ side changes.

Researchers said this gives ransomware operators a more resilient command-and-control mechanism compared with conventional hosting setups.

A small campaign with an inventive method

DeadLock was first observed in July 2025 and has stayed relatively low profile so far.

Group-IB said the operation has only a limited number of confirmed victims.

The report also noted that DeadLock is not linked to known ransomware affiliate programmes and does not appear to operate a public data leak site.

While that may explain why the group has received less attention than major ransomware brands, researchers said its technical approach deserves close monitoring.

Group-IB warned that even if DeadLock remains small, its technique could be copied by more established cybercriminal groups.

No Polygon vulnerability involved

The researchers stressed that DeadLock is not exploiting any vulnerability in Polygon itself.

It is also not attacking third-party smart contracts such as decentralised finance protocols, wallets, or bridges.

Instead, the attackers are abusing the public and immutable nature of blockchain data to hide configuration information.

Group-IB compared the technique to earlier “EtherHiding” approaches, where criminals used blockchain networks to distribute malicious configuration data.

Several smart contracts connected to the campaign were deployed or updated between August and Nov. 2025, according to the firm’s analysis.

Researchers said the activity remains limited for now, but the concept could be reused in many different forms by other threat actors.

While Polygon users and developers are not facing direct risk from this specific campaign, Group-IB said the case is another reminder that public blockchains can be misused to support off-chain criminal activity in ways that are difficult to detect and dismantle.

The post DeadLock ransomware abuses Polygon blockchain to rotate proxy servers quietly 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.

• Pakistan signs MoU with World Liberty affiliate to explore stablecoin-based cross-border payments.
• USD1 stablecoin may integrate with Pakistan’s regulated payments system as digital finance efforts expand.
• Deal highlights Pakistan’s push to become a key digital payments hub amid rising global stablecoin adoption.

Pakistan’s federal government has signed a memorandum of understanding (MoU) with SC Financial Technologies LLC, an affiliated entity of World Liberty Financial, to explore using World Liberty’s stablecoin for cross-border payments.

The announcement was made by the Pakistan Virtual Asset Regulatory Authority (PVARA), which described the agreement as enabling “dialogue and technical understanding around emerging digital payment architectures.”

The MoU comes amid a visit to Pakistan by Zach Witkoff, co-founder and chief executive of World Liberty and son of US special envoy Steve Witkoff.

During his visit, Witkoff met senior Pakistani stakeholders to discuss how countries are approaching secure, compliant, and transparent digital payment infrastructure, including innovations in cross-border settlement and foreign exchange processes.

“Our focus is to stay ahead of the curve by engaging with credible global players, understanding new financial models, and ensuring that innovation, where explored, is aligned with regulation, stability, and national interest,” said Finance Minister Muhammad Aurangzeb.

Industry observers note that this marks World Liberty Financial’s second engagement with Pakistan, reinforcing the country’s positioning as a potential early-stage partner for exploring new digital payment models, including the USD1 stablecoin.

The MoU builds on earlier efforts, including a Letter of Intent signed in April with the Pakistan Crypto Council, which laid the groundwork for knowledge-sharing and ecosystem-level dialogue around emerging financial technologies.

Stablecoin integration and global finance implications

Under the agreement, SC Financial Technologies will work with Pakistan’s central bank to integrate the USD1 stablecoin into a regulated digital payments structure.

This would allow the token to operate alongside Pakistan’s own digital currency infrastructure, potentially providing a new framework for cross-border settlement.

Stablecoins—digital tokens typically pegged to the US dollar—have expanded rapidly in global markets.

Under President Donald Trump, federal regulations in the United States have been widely viewed as supportive of the sector.

Countries worldwide are increasingly examining how stablecoins can complement existing payment systems, with regulatory compliance becoming a key consideration for global adoption.

World Liberty’s engagement with sovereign states has already demonstrated impact in other markets.

Reuters previously reported that in May, the state-controlled Abu Dhabi investment company MGX used World Liberty’s stablecoin to acquire a $2 billion equity stake in Binance, the world’s largest cryptocurrency exchange.

Pakistan’s growing digital finance ecosystem

Pakistan has actively pursued initiatives to strengthen its digital finance ecosystem.

The PVARA highlighted that the country is emerging as a compelling frontier market for digital payments, supported by over $38 billion in annual remittance inflows, a rapidly growing digital economy, an estimated 40 million crypto users, and an annual trading volume of up to $300 billion in digital assets.

Recent regulatory steps include the issuance of No Objection Certificates (NOCs) to Binance and HTX, allowing both platforms to initiate local incorporation in under five months—a faster timeline than in many other jurisdictions.

The visits of Changpeng Zhao, founder of Binance, and Justin Sun, founder of TRON, reflect ongoing international interest in Pakistan’s regulatory framework and growing digital finance market.

PVARA stated that with sustained global engagement and a structured, regulation-first approach, Pakistan is increasingly viewed as a market to watch in the evolution of digital finance, particularly as the country explores new models for cross-border payments and stablecoin integration.

Pakistan has been exploring digital currency initiatives as it looks to reduce cash usage and improve cross-border payments such as remittances, which are a key source of foreign exchange for the country.

In July, Pakistan’s central bank governor said the institution was preparing to launch a pilot for a digital currency, and that it was finalising legislation to regulate virtual assets.

The post Pakistan signs deal to explore WLFI-linked stablecoin for payments appeared first on CoinJournal.

• Some crypto community members accused the project team of removing liquidity, sparking rug pull fears.
• Rune flagged data suggesting $3.4 million was drained from the token’s liquidity pool.
• Bubblemaps showed $2.5 million in USDC removed near the peak, with $900,000 not returned after partial additions.

Former New York City Mayor Eric Adams has launched a Solana-based meme coin that he said is aimed at fighting antisemitism and supporting the next phase of innovation in the city.

The token, called the New York City token (NYC), was announced in a Jan. 13 post on X and quickly went live for trading on the Solana decentralised exchange Jupiter.

In the post, Adams shared a link to the token’s official website and said the project was built to fight the spread of antisemitism and anti-Americanism across the US and New York City.

The NYC token initially saw strong momentum after it began trading.

It rallied to a high of $0.58 and briefly reached a market cap of $580 million, according to DEXScreener data.

Liquidity movements trigger rug pull allegations

As the price fell, accusations surfaced online that the team behind the token may have removed liquidity, adding to fears of a potential rug pull.

Crypto analyst Rune flagged data indicating that at least $3.4 million had been drained from the token’s liquidity pool.

Separately, analytics posted by Bubblemaps suggested that a wallet linked to the token’s deployer removed $2.5 million in USDC liquidity when the token was trading near its peak.

After the price had already plunged by more than 60%, about $1.5 million in USDC was added back.

Still, roughly $900,000 was not returned, which further fuelled suspicion among some community members and investors.

The allegations have not been confirmed, but the timing and size of the liquidity movements quickly became a central focus of discussion.

Team cites TWAP strategy to manage volatility

In response to the concerns, the NYC token X account released a statement claiming the project is using Time-Weighted Average Price (TWAP) mechanisms to manage price stability.

The account said funds were being added to the liquidity pool gradually to reduce the risk of further disruption after the initial volatility seen during the launch.

Despite that explanation, the episode has kept attention on how liquidity is handled for newly launched meme coins, especially when trading activity accelerates rapidly across decentralised markets.

Website details token split and proposed use cases

While the token’s official website offers limited detail about the project’s long-term direction, Adams said in a Fox Business interview that proceeds from the NYC token would go toward nonprofits focused on raising awareness about antisemitism and anti-Americanism through educational campaigns.

Other proposed use cases include funding blockchain and crypto education, along with scholarships for students in underserved communities.

Adams officially stepped down as mayor on Jan. 1, after being replaced by Zohran Mamdani.

The post Former NYC mayor backed token tumbles on Solana amid liquidity fears appeared first on CoinJournal.

• VanEck noted that Bitcoin has decoupled from stock and gold markets after the October deleveraging.
• Justin d’Anethan said Bitcoin’s rise in a low-leverage environment shows excess speculation has eased.
• Michaël van de Poppe predicted bitcoin could hit $100,000 after a clean move above $92,000.

Global investment management firm VanEck believes the first three months of 2026 could favour a risk-on environment, as investors regain something markets have lacked for years: clearer direction on key policy forces.

In a Q1 2026 outlook published on Tuesday, the firm pointed to improving visibility around US fiscal conditions, monetary policy expectations, and major investment themes.

That set-up is typically supportive for riskier corners of the market, such as AI and tech stocks, as well as crypto.

However, VanEck said Bitcoin is sending a different message, with short-term signals becoming harder to trust after a break in its usual cycle behaviour.

VanEck sees clearer policy conditions for early 2026

VanEck said markets are entering 2026 with “visibility,” framing it as a more stable phase compared to the uncertainty that dominated previous years.

The firm’s base case is that investors will face fewer shocks linked to fiscal and monetary decisions, creating a backdrop where risk assets can perform more confidently.

It added that improved clarity around policy direction is part of what makes the first quarter attractive for risk-taking.

At the same time, VanEck stressed that its views are medium-term in nature, rather than based on short-lived market events.

Bitcoin cycle break complicates the near-term picture

Despite expecting supportive conditions for risk assets, VanEck said bitcoin’s typical four-year cycle “broke in 2025,” making it difficult to rely on traditional timing signals.

The firm said this has contributed to a more cautious stance over the next three to six months.

VanEck also noted that not everyone inside the company shares the same level of caution, with some executives still taking a more constructive view on bitcoin’s immediate cycle.

The split highlights how unclear the near-term set-up has become, even as broader macro direction appears easier to read.

Bitcoin decouples after October deleveraging

VanEck also flagged that bitcoin has decoupled from stock and gold markets in recent months.

The move followed a major deleveraging event in October, which changed how bitcoin has traded relative to both equities and traditional safe-haven assets.

This matters because bitcoin’s correlation with other markets has often shaped how investors position it in a broader portfolio.

If those relationships weaken, it becomes harder to treat bitcoin as a simple extension of risk sentiment, particularly when leverage conditions shift.

Analysts debate the next move as BTC retests $92,000

Meanwhile, crypto analyst Michaël van de Poppe said he expects Bitcoin to reclaim six figures before the end of January.

He noted there has been no dip below the 21-day moving average, with buyers stepping in to accumulate around these levels.

He added that a clear move above $92,000 could push BTC to $100,000 within a maximum of 10 days.

The post Risk-on is back, says VanEck, as Bitcoin decouples and short-term signals fade 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.

• Companies would be limited to investing up to 5% of their equity capital.
• Only top market cap tokens on major regulated exchanges would be eligible.
• Stablecoin inclusion remains under regulatory discussion.

South Korea is preparing to reopen its digital asset market to corporate money, marking a major shift after nearly a decade of tight restrictions.

Financial regulators are updating long-standing guidelines that have barred companies from holding crypto assets since 2017, a period defined by concerns over money laundering and market instability.

The proposed changes would allow listed companies and professional investors to allocate a limited portion of their balance sheets to cryptocurrencies.

The move signals a recalibration of policy as Seoul seeks to strengthen its digital finance ecosystem while keeping risks contained through strict guardrails.

Corporate access returns

According to a report by the Financial Services Commission, legal entities will be permitted to invest up to 5% of their equity capital in crypto assets.

The information was reported by the Seoul Economic Daily.

Regulators are expected to release the final version of the guidelines in January or February.

Once in place, companies will be able to engage in virtual currency transactions for investment and financial purposes, ending a nine-year prohibition.

The FSC first outlined a phased easing of corporate crypto rules in February 2025 and shared the latest draft with its crypto working group on Jan. 6.

The approach reflects a gradual opening rather than a wholesale liberalisation.

Tight limits on assets

The planned framework places clear limits on where and how companies can invest.

Corporate purchases will be restricted to the top 20 crypto assets by market capitalisation, narrowing exposure to the most liquid and widely traded tokens.

Transactions will also be confined to South Korea’s five largest regulated exchanges, reinforcing oversight and compliance standards.

The inclusion of dollar-pegged stablecoins remains unresolved.

The report said regulators are still debating whether assets such as Tether’s USDT should be permitted under the new rules.

These conditions are designed to address the same financial crime risks that prompted the original ban, while recognising that the domestic market has matured since 2017.

Market impact expectations

The reopening of corporate access could unlock significant capital flows into crypto markets.

Seoul Economic Daily noted that the scale of potential investment runs into tens of trillions of won.

By way of illustration, the report pointed to internet giant Naver, which holds around 27 trillion won in equity capital.

Under the proposed cap, the company could theoretically deploy funds equivalent to roughly 10,000 Bitcoin.

Beyond direct market inflows, the change could alter corporate strategy.

Large South Korean firms have previously invested in digital assets overseas to avoid domestic restrictions.

Easing local rules may redirect that activity back home, supporting blockchain startups, digital asset treasuries, and related infrastructure.

Broader digital currency strategy

The corporate crypto shift sits alongside a wider push into digital currencies.

The government has outlined plans to execute 25% of national treasury transactions through a central bank digital currency by 2030 as part of its 2026 Economic Growth Strategy.

The government also plans to introduce a licensing regime for stablecoin issuers.

Under the proposal, issuers would need to maintain 100% reserve backing and provide legally guaranteed redemption rights for users.

Together, these measures suggest South Korea is seeking to integrate crypto assets, stablecoins, and a CBDC into a single regulatory framework rather than treating them as isolated experiments.

The post South Korea moves to reopen corporate crypto investing after long freeze appeared first on CoinJournal.

• The action was detected by Whale Alert and ranks among the largest single-day USDT freezes.
• Tether has frozen over $3 billion in assets from more than 7,000 addresses since 2023.
• Stablecoins now account for the majority of illicit crypto activity tracked by Chainalysis.

Tether, the issuer of the world’s largest stablecoin, froze more than $180 million worth of USDT within 24 hours, underscoring the growing role of centralized control and law-enforcement coordination in the stablecoin market.

The event stands out not only for its size but also for what it reveals about issuer-level control in the crypto economy.

As regulators scrutinise digital dollars more closely, the mechanics behind this freeze offer insight into how compliance now shapes on-chain liquidity.

Large-scale freeze on Tron

On Jan. 11, Tether froze roughly $182 million worth of USDT held across five Tron-based wallets in a single day.

The action was flagged by on-chain tracker Whale Alert, which showed individual wallet balances ranging from about $12 million to nearly $50 million.

The timing and concentration of the freezes marked it as one of the largest single-day USDT enforcement events recorded on the Tron network.

The wallets were not drained or moved.

Instead, the tokens were locked at the contract level, making them unusable while remaining visible on-chain.

This approach is consistent with how fiat-backed stablecoins are restricted when issuers respond to external requests.

Enforcement-linked coordination

While Tether did not publish a detailed explanation, the freezes appear linked to cooperation with US authorities, including the Department of Justice and the Federal Bureau of Investigation.

Historically, similar actions have followed investigations tied to scams, hacking incidents, sanctions breaches, or other forms of illegal crypto usage.

Tether maintains administrative control through special keys embedded in the USDT smart contracts it issues.

These keys allow the company to halt or freeze tokens at the issuer level.

Such functionality is central to how stablecoin operators comply with anti-money-laundering rules and legal enforcement demands, particularly when funds are suspected of being linked to criminal activity.

Scale of past USDT freezes

Data from analytics firm AMLBot places the Jan. 11 action in a broader context.

Between 2023 and 2025, Tether froze more than $3 billion in assets spread across over 7,000 addresses.

That cumulative figure far exceeds comparable actions by other stablecoin issuers, underlining USDT’s dominant role in enforcement-led interventions.

Tron has become one of the largest settlement layers for USDT, with more than $80 billion in circulation on the network.

Its low fees and fast settlement times have driven adoption, particularly in emerging markets and high-frequency trading environments.

At the same time, this scale makes Tron-based USDT a focal point for monitoring illicit flows.

Centralisation and market implications

The episode has renewed debate around centralised control in stablecoins.

Unlike decentralised assets such as Bitcoin, USDT can be paused or frozen by its issuer when legal pressure is applied.

This structural difference has practical consequences for users who rely on stablecoins as cash equivalents.

According to Chainalysis, stablecoins accounted for around 84 % of illicit crypto activity by the end of 2025.

The data reflects how dollar-pegged tokens have become a primary medium in fraud cases and sanctions-related transfers.

As enforcement actions grow in size and frequency, issuer-controlled stablecoins continue to sit at the intersection of regulatory compliance and decentralised finance.

The post Tether freezes $182M in USDT, highlighting centralized control in stablecoins appeared first on CoinJournal.

• Chainalysis recorded $154 billion in illicit inflows, driven largely by sanctioned entities.
• Russia’s ruble-backed A7A5 token processed over $93.3 billion in transactions within a year.
• Illicit transactions remain under 1% of total on-chain activity despite rapid growth.

Illicit cryptocurrency activity expanded rapidly in 2025, not because of a sudden spike in everyday crypto crime, but due to a structural shift in how sanctioned states and entities are moving money.

As global financial restrictions widened, blockchain networks increasingly became an alternative channel for cross-border transfers that are harder to block or monitor through traditional systems.

A new report from Chainalysis shows that this change is altering the shape, scale, and participants of the illicit crypto ecosystem.

Illicit crypto addresses received at least $154 billion during 2025, a 162% jump from $59 billion in 2024.

Chainalysis attributed much of this growth to sanctioned actors moving funds on-chain at scale.

While illicit activity still represents less than 1% of total crypto transactions, its rapid expansion highlights how sanctions policy is influencing blockchain usage in ways not seen in previous years.

Sanctions push activity on-chain

Chainalysis described 2025 as a turning point, marked by unprecedented volumes linked to nation-state behaviour.

Unlike earlier phases dominated by hacks, scams, and darknet markets, recent activity has shown higher levels of coordination and technical sophistication.

This reflects growing familiarity with blockchain tools among sanctioned entities facing restricted access to the global banking system.

The scale of sanctions worldwide has risen sharply.

The Global Sanctions Inflation Index estimated in May that nearly 80,000 individuals and entities are currently under sanctions.

Separate research from the Center for a New American Security found that the United States added 3,135 entities to its Specially Designated Nationals and Blocked Persons List in 2024, the highest annual total ever recorded.

This expanding sanctions environment has increased incentives to seek alternative settlement systems.

Russia’s growing role

One of the most prominent contributors to the rise in illicit crypto flows was Russia, which has faced extensive international sanctions since it invaded Ukraine.

In February 2025, Russia launched a ruble-backed digital token known as A7A5.

According to Chainalysis, the token processed more than $93.3 billion in transactions in less than a year.

The use of a state-linked token illustrates how sanctioned governments are experimenting with blockchain-based instruments to maintain trade and financial connectivity.

This approach differs from earlier crypto usage patterns, where states were largely indirect beneficiaries of illicit networks rather than active participants in token-based systems.

Stablecoins take centre stage

Stablecoins played a dominant role in illicit crypto activity throughout 2025, accounting for 84% of total illegal transaction volume.

Chainalysis linked this to their price stability, high liquidity, and ease of cross-border transfer.

These same characteristics that support legitimate payments and remittances have also made stablecoins attractive to sanctioned users seeking predictable settlement.

The growing reliance on stablecoins signals a shift away from volatile assets for illicit transfers.

Rather than speculative trading, the focus has moved toward efficiency, reliability, and scale, particularly for large-value transactions involving sanctioned entities.

Crime remains a smaller share

Despite record illicit volumes, Chainalysis stressed that criminal activity still accounts for a small fraction of the broader crypto economy.

Overall, on-chain activity expanded significantly during the year, keeping illicit transactions below 1% of total volume, even as their absolute value surged.

Other forms of crypto-related crime persisted alongside sanctions-driven flows.

Blockchain security firm PeckShield documented over 20 major exploits in December, including address-poisoning scams and private-key leaks that led to losses of tens of millions of dollars.

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