South Korean regulators are facing increased scrutiny after they failed to discover an issue with crypto exchange Bithumb’s internal systems, which led to $43 billion in Bitcoin accidentally being credited to user’s accounts earlier this month. Korea’s Financial Services Commission and Financial Supervisory Service (FSS) had both reviewed Bithumb at least three times since 2022, according to a local report from The Korea Times—yet the pair never found a structural input issue that ultimately led to the prob ...

By Jack Kim SEOUL, Feb 11 (Reuters) - South Korea's Bithumb said on Wednesday that serious flaws had left the crypto exchange's internal ‌system susceptible to potential sabotage and failed to prevent an erroneous ‌transfer of more than $40 billion in assets last week. The country's second-largest virtual asset exchange said ​it accidentally gave away about 620,000 bitcoin (BTC-USD) to customers during a promotional event, instead of 620,000 won ($426), triggering a 17% slump in bitcoin's price. Bithu ...

Core Insights - The U.K. banking sector is increasingly blocking customer access to registered crypto exchanges despite the Financial Conduct Authority (FCA) certifying 59 crypto asset companies [1][4] - A report indicates that 70% of exchanges perceive a more hostile banking environment, with 80% reporting increased customer transaction blocks [2][3] - The FCA is moving towards clearer regulations for cryptocurrency, with new rules expected by October 2027 [4] Banking Environment - Seven out of ten top exchanges in the U.K. report increased hostility from banks over the past year, with 40% of transactions being blocked or delayed [2][3] - Major banks like HSBC, Barclays, and NatWest impose limits on transfers to crypto exchanges, while others like Chase UK and Starling Bank fully block such transfers [6][7] - One exchange reported nearly $1.4 billion in declined transactions in 2025 due to bank-side rejections [5]

Core Insights - Renowned investor Kevin O'Leary emphasizes the importance of owning energy infrastructure in the cryptocurrency sector, suggesting that electricity can be more valuable than Bitcoin at the right price [1][4]. Group 1: Energy Infrastructure and Bitcoin Mining - O'Leary highlights that Bitzero, a Canadian energy infrastructure firm, is leasing power for high-performance computing and Bitcoin mining, indicating that controlling energy infrastructure allows for flexible choices between leasing power or mining Bitcoin [2][3]. - The cost to mine one Bitcoin at Bitzero is reported to be $56,000, which is significantly lower than the current market price, showcasing the potential profitability of low-cost electricity in Bitcoin mining [3][4]. Group 2: Market Predictions and Regulatory Clarity - O'Leary predicts that Bitcoin's value will increase to between $150,000 and $200,000 once regulatory clarity is achieved, suggesting that this clarity is essential for capturing value in the cryptocurrency market [4]. - He dismisses altcoins as lacking institutional appeal and forecasts that the passage of the CLARITY Act will lead institutions to have "no reason to own them" [4]. Group 3: Investment Strategy - O'Leary has previously stated that owning Bitcoin and Ethereum alone can capture 97.5% of the cryptocurrency market's volatility and yield, indicating a strategic focus on these major cryptocurrencies over altcoins [5][7]. - The emphasis on owning underlying infrastructure for cryptocurrencies is a recurring theme in O'Leary's investment strategy, as he has invested in various cryptocurrency infrastructure companies [5].

Core Viewpoint - The discussion at the World Economic Forum highlighted the contrasting views on Bitcoin between Coinbase CEO Brian Armstrong and the Governor of the Bank of France, François Villeroy de Galhau, focusing on the nature of Bitcoin as a decentralized asset versus government-issued currencies [1][5]. Group 1: Bitcoin's Nature and Competition - Armstrong emphasized that Bitcoin is a decentralized protocol with no issuer, making it more independent than central banks [2][3]. - He framed the relationship between Bitcoin and government currencies as healthy competition, allowing individuals to choose which they trust more, thus serving as a check on government overspending [4]. - Armstrong noted Bitcoin's fixed supply and lack of a money printer, comparing its appeal during uncertainty to that of gold [4]. Group 2: Regulatory Environment and Future Plans - Armstrong arrived at Davos to engage with bank leaders and policymakers to promote a U.S. crypto market structure bill, following Coinbase's withdrawal of support from a Senate crypto regulation bill due to concerns over interest payment limitations [6]. - He indicated that the White House has been cooperative, suggesting a revised version of the legislation could be expected within weeks [7]. - Ripple CEO Brad Garlinghouse highlighted the panel's agreement that innovation and regulation can coexist, indicating a collaborative approach to the evolving crypto landscape [5].

Group 1 - The core viewpoint emphasizes the importance of owning energy infrastructure in the cryptocurrency sector, with Kevin O'Leary stating that electricity can be more valuable than Bitcoin at the right price [1][4] - O'Leary highlighted that Bitzero, a Canadian energy infrastructure firm, is leasing power for high-performance computing and Bitcoin mining, allowing for flexibility in operations [2] - The cost to mine one Bitcoin at Bitzero is reported to be $56,000, which is significantly lower than the current market price [3] Group 2 - O'Leary argues that the profitability of Bitcoin mining is largely dependent on low-cost electricity, suggesting that electricity can surpass the value of Bitcoin itself under certain conditions [4] - He forecasts that Bitcoin prices could rise to between $150,000 and $200,000 once regulatory clarity is achieved, which would enhance value capture in the market [4] - O'Leary has expressed skepticism towards altcoins, predicting that institutional investors will have no incentive to own them once the CLARITY Act is passed [5] Group 3 - O'Leary has previously stated that owning Bitcoin and Ethereum is sufficient to capture 97.5% of the cryptocurrency market's volatility and yield, while altcoins may struggle to recover after market corrections due to their lack of utility [6] - As of the latest data, Bitcoin was trading at $89,732.31, reflecting a decrease of 1.94% in the last 24 hours [6]

Core Insights - Global regulators are pushing for blockchain companies to register and comply with existing laws, which could facilitate institutional involvement in the crypto market [1] - Ripple has secured early approval for an Electronic Money Institution (EMI) license in Luxembourg, marking a significant regulatory milestone for the company within the EU [2][5] - The price of XRP has stabilized above $2, indicating that traders are focusing on regulatory progress rather than market hype [3][4] Regulatory Developments - The approval from Luxembourg's financial regulator, CSSF, is a preliminary nod that positions Ripple as a compliant payments company rather than a legal risk [5] - The MiCA framework in the EU mandates that crypto service providers, including Ripple, must register, which is a step towards clearer regulations in the crypto space [4][6] - Once finalized, the EMI license will allow Ripple to offer services across the EU without needing to reapply in each country, enhancing its operational capabilities [5] Market Position - Ripple has established Ripple Payments Europe in Luxembourg in anticipation of regulatory changes, positioning itself strategically within the EU market [6] - The CSSF's approval will enable Ripple to provide regulated payment services involving stablecoins and other digital assets, expanding its service offerings [6] - Ripple's RLUSD stablecoin is currently among the top 20 stablecoins by market cap, with over $1.3 billion in circulation, indicating its growing influence in the market [6]

Core Viewpoint - A draft U.S. Senate bill could provide significant regulatory relief for major cryptocurrencies like XRP, Solana, and Dogecoin by categorizing them similarly to Bitcoin and Ethereum [1][2]. Group 1: Regulatory Changes - The "Clarity Act" draft includes a provision to classify certain tokens as "non-ancillary" assets, exempting them from being treated as securities and related SEC disclosure requirements [2]. - A token is considered non-ancillary if, by January 1, 2026, it was the principal asset of an exchange-traded product listed on a national securities exchange [3]. - Existing ETP listings indicate that XRP, Solana, Litecoin, Hedera, Dogecoin, and Chainlink would gain regulatory status similar to Bitcoin and Ethereum upon the bill's effective date [4]. Group 2: Market Impact - The immediate impact of the bill is expected to enhance institutional access rather than short-term speculation, as noted by experts [4]. - Altcoins showed muted gains in response to the draft clarity bill, while Bitcoin traded near $93,000, reflecting a 1.9% increase [5]. - Users on prediction market Myriad increased the likelihood of an alt season in Q1 from 16% to 18% following the news [5]. Group 3: Institutional Engagement - If the language of the bill remains in the final version, it would primarily affect compliance posture rather than prices, potentially widening institutional engagement with cryptocurrencies [6]. - The bill signifies a shift towards regulating crypto assets based on their distribution and usage within regulated financial products [6]. - Finalizing the bill with a 'non-ancillary' label linked to ETFs could align XRP, SOL, and DOGE with the compliance framework that has attracted institutional demand for BTC and ETH [7]. Group 4: Political Considerations - The bill's future is uncertain and may be influenced by U.S. political dynamics, particularly the upcoming mid-term elections [8].

Core Viewpoint - Coinbase is exerting pressure on U.S. lawmakers to retain its ability to offer rewards to users holding stablecoins, fearing that proposed restrictive clauses in an upcoming cryptocurrency bill could jeopardize this business model [1][2]. Group 1: Regulatory Concerns - The upcoming Digital Asset Market Structure Bill may include provisions that could redefine Coinbase's rewards as "deposits," which would eliminate its interest income from stablecoin holdings [1][3]. - Current regulatory proposals aim to limit the issuance of rewards to regulated financial institutions, which some in the banking sector support, citing concerns over potential deposit outflows from traditional banks [1][5]. Group 2: Financial Implications - Coinbase's rewards program, such as the 3.5% incentive for holding USDC, is crucial for maintaining user engagement and generating revenue, with projections estimating stablecoin income could reach $1.3 billion by 2025 [3]. - The potential withdrawal of support for the bill by Coinbase could significantly impact its revenue model and the competitive landscape of the cryptocurrency industry [2][4]. Group 3: Political Dynamics - The cryptocurrency industry has become a major political donor, with Coinbase contributing $1 million to Donald Trump's inauguration, highlighting its influence in the political arena [2]. - The ongoing debate over stablecoin rewards is causing friction within bipartisan support for the legislation, with concerns that it could delay or derail the bill entirely [4][5]. Group 4: Industry Responses - Coinbase has applied for a national trust charter, which would allow it to offer user rewards within a regulatory framework, while other crypto firms are seeking exceptions to maintain their reward models without licenses [2][5]. - The banking sector has expressed strong opposition to cryptocurrency exchanges offering rewards, arguing that it undermines community lending and deposit stability [5].

Core Viewpoint - Bybit will cease operations for Japanese residents in January due to regulatory pressure from Japan's Financial Services Agency (FSA) [1][2][4] Group 1: Regulatory Actions - The FSA has been pressuring Bybit since May 2021, issuing multiple warnings and ultimately leading to the exchange's decision to terminate services for Japanese customers [2][4] - Bybit's withdrawal follows a pattern of regulatory actions against overseas exchanges that provide services to Japanese residents, with the FSA actively enforcing compliance since 2017 [4] Group 2: User Impact - Bybit claims to have over 70 million users globally, and its exit from the Japanese market is expected to significantly impact many domestic users [6] - Users identified as Japanese residents will face account restrictions starting in 2026 unless they complete proof of address checks by January 22, 2026 [3] Group 3: Market Dynamics - Analysts speculate that Bybit's recent actions may be a strategic move towards officially entering the Japanese market, similar to Binance's approach in the past [5] - The FSA's regulatory environment has led to other exchanges, like Binance, adapting their strategies to comply, including acquiring local exchanges [5]