Core Insights - South Korea's comprehensive crypto regulation has been postponed to 2026 due to disagreements over stablecoin issuance control [1][9] - The Financial Services Commission (FSC) is drafting a Digital Asset Basic Act aimed at enhancing investor protections and compliance standards [3][5] Regulatory Proposals - Regulators propose that stablecoin issuers must hold reserves entirely in bank deposits or government bonds, with 100% of these reserves entrusted to licensed custodians [4][5] - The bill aims to prevent spillover risks from poorly backed digital assets and raise compliance standards across the crypto sector [5] Liability and Fundraising - Firms could be held liable for damages in cases of hacks or outages, similar to online retail platforms, even without negligence [6] - The draft law may allow initial coin offerings (ICOs) for local projects that meet strict criteria, reversing a ban in place since 2017 [6] Points of Contention - The Bank of Korea advocates for stablecoin issuance to be limited to bank-controlled consortia with at least a 51% ownership stake to ensure monetary stability [7] - The FSC opposes a fixed ownership threshold, arguing it could hinder innovation by sidelining technology firms [8]

Core Insights - Stablecoins are projected to exceed $1 trillion in circulation by 2026, indicating significant growth and potential for institutional investment in crypto [1] - The CLARITY Act aims to establish a regulatory framework for digital assets, balancing oversight between the SEC and CFTC, which could enhance institutional engagement in the crypto market [2][3] - The GENIUS Act, passed in July, is the first regulatory framework for payment stablecoins, expected to accelerate institutional adoption among major financial players by 2026 [8] Regulatory Developments - The Senate is expected to vote on the CLARITY Act by January 2026, following bipartisan support in the House [4] - The regulatory environment is becoming more favorable for crypto, with indications of reduced enforcement and a welcoming stance towards innovation [5] - The SEC's approval of generic listing standards has led to an increase in crypto ETF filings, with at least 125 awaiting approval as of December 17 [16] Market Trends - Bitcoin has experienced significant volatility, shedding over 25% of its value in two months, yet the industry's survival is not at risk, indicating a shift towards institutional integration [6] - Analysts predict that 2026 will mark the end of Bitcoin's traditional four-year cycle, transitioning to a more stable market driven by institutional rebalancing [12] - The correlation between Bitcoin and the NASDAQ 100 index has more than doubled, reflecting increased institutional involvement in the crypto market [11] Institutional Adoption - The launch of Bitcoin ETFs has led to substantial inflows, with BlackRock's iShares Bitcoin Trust ETF attracting around $25 billion in net inflows this year [13] - As more Bitcoin supply moves into ETFs and institutional hands, the market dynamics are expected to change, with less trading on momentum and more stability [14] - Predictions indicate that over 100 new crypto ETFs could launch in 2026, potentially unlocking significant demand and inflows [17] Future Outlook - Analysts are divided on Bitcoin's price trajectory, with predictions ranging from $50,000 to $250,000 by the end of 2026, influenced by regulatory developments and institutional engagement [23] - The market is expected to see a "dawn of the institutional era," with a shift from retail-driven growth to a more stable, institutionally driven market [12] - The sentiment around crypto remains emotional, with concerns about market stability and the need for speculative assets to be "flushed out" for long-term stabilization [27][28]

crypto regulation cover. Photo by BeInCrypto A small EU nation is set to enforce one of Europe’s strictest crypto crackdowns, warning that hundreds of unlicensed digital asset firms could face fines, website blocks, and even prison time starting next week. The central bank has made it clear that any platform continuing to onboard users or handle crypto without proper MiCA authorization after December 31 will be considered illegal. Lithuania Draws a Hard Line on Crypto Starting January 1 The Bank of Lit ...

Core Viewpoint - The Russian central bank has shifted its stance on cryptocurrency regulation, allowing retail investors to buy Bitcoin and other major tokens, which marks a significant change from its previous position advocating for a ban on cryptocurrencies [1][2]. Group 1: Central Bank's New Position - The central bank is now taking a more balanced approach, maintaining that cryptocurrencies are high-risk instruments and cannot be used for domestic transactions, but it has not advocated for a complete ban [2][4]. - The central bank's change in policy may enable major commercial banks to start offering crypto trading services to their customers [3]. Group 2: Investment Access and Limits - The central bank plans to allow both qualified (high-income individuals and professional investors) and unqualified (retail) investors to purchase cryptocurrencies, with specific limits on annual investments [4][5]. - Retail investors will have access to the most liquid cryptocurrencies after passing an eligibility test, with an annual investment cap set at just over $3,800 [5][6]. Group 3: Ongoing Risks and Considerations - Despite the new regulations, the central bank continues to classify cryptocurrencies as high-risk instruments, emphasizing their lack of jurisdictional backing and susceptibility to volatility and sanctions risks [6].

Group 1 - The Financial Services Authority of Indonesia (OJK) has published a whitelist of 29 licensed crypto and digital financial asset trading platforms, marking a significant regulatory step to enhance oversight and consumer protection in the rapidly growing crypto market [1][6] - The whitelist includes platforms that have received full licenses (PAKD) or are registered as prospective traders (CPAKD) while completing their approval process [2][3] - Fully licensed platforms include major exchanges such as Indodax, Pintu, Pluang, and Tokocrypto, among others [3][4] Group 2 - The OJK has also identified several prospective traders still in the licensing process, including Luno Indonesia and Fasset, which are under regulatory supervision [4] - The core infrastructure for the digital asset market is confirmed, with PT Bursa Komoditi Nusantara as the licensed digital asset exchange and PT Kliring Komoditi Indonesia as the clearing and settlement institution [4][5] - The regulatory authority over crypto and digital financial assets has shifted from Bappebti to OJK, as mandated by Law Number 4 of 2023, requiring all digital financial asset service providers to meet licensing requirements [6][7] Group 3 - Unlicensed operations are subject to criminal penalties, including prison sentences and substantial fines, highlighting the importance of compliance for crypto platforms [7] - The OJK warns that platforms not listed are unlicensed and pose heightened risks to consumers [7]

Monetary Policy Changes - The Bank of Japan raised interest rates to 0.75%, marking the highest borrowing costs in three decades, which has implications for global crypto markets [1] - This rate increase represents Japan's most aggressive monetary tightening since 1995, although borrowing costs remain lower than in other major economies [2] Fiscal Policy and Debt Concerns - Prime Minister Sanae Takaichi's $117 billion stimulus package is largely funded by additional debt issuance, raising concerns about Japan's public debt, which is more than twice the size of its economy [3] - The combination of growing debt, higher interest rates, and aggressive fiscal spending creates uncertainty for Japan's economic outlook [3] Market Reactions - Market reactions were mixed, with the yen initially strengthening but later losing those gains as investors assessed the implications of the rate hike [3][4] - The initial strengthening of the yen was attributed to thin market liquidity, which amplified short-term price movements rather than reflecting a fundamental reassessment [4] Regulatory Developments in Crypto - The Financial Services Agency proposed requiring crypto exchanges to hold dedicated reserves against customer losses, a move aimed at enhancing security following significant breaches in the sector [5]

Bybit, the second-largest cryptocurrency exchange by volume traded, said it has returned to the U.K. two years after stricter rules around the promotion and marketing of crypto services forced it out. The company, which boasts some 80 million users worldwide, restarted U.K. services including spot trading on 100 currency pairs on Thursday, the company said . The Financial Conduct Authority (FCA) has been vigilant in regulating advertising and marketing of crypto services to British residents. Rules it i ...

Regulatory Landscape & Market Structure - US Senate delays the Clarity Act, postponing the crypto market structure bill until 2026 [1] - Key issues remain unresolved, including regulations for top government officials profiting from crypto ventures and the extent of decentralized finance regulation [4][5] - Senate Banking Committee anticipates a markup on bipartisan digital asset market structure legislation in early 2026 [7] - Binance secures first global license under ADGM framework, separating trading, custody, settlement, and off-exchange activities [18][19] Market Trends & Investment - Despite Bitcoin's price remaining relatively stable year-to-date, fundamentals have drastically changed [7] - Traditional finance is increasingly embracing crypto, with banks like JP Morgan engaging in various crypto-related activities [9][10] - XRP ETF inflows have surpassed $1 billion since launching in November, demonstrating positive net inflows for over 30 consecutive days [14] - Solana ETFs have the highest net inflows of all crypto ETFs, exceeding $63 million in the last 7 days [15] - Investors are rotating profits from Ether and Bitcoin ETFs into Solana and XRP [16] Company Initiatives - Coinbase is expanding its platform to offer stocks, becoming an "Everything Exchange" with multiple asset classes [20][22]

The shares of Coinbase Global (Nasdaq: COIN), the largest U.S. crypto trading exchange, surged after the company received a nod from Indian authorities to acquire a minority stake in an Indian exchange. Brian Armstrong and Fred Ehrsam founded Coinbase in 2012 and turned it into a public company in 2021. The company, which operates crypto exchange platforms in more than 100 countries across the world, made it to the S&P 500 index in May this year. Related: Coinbase to re-enter India after nearly two year ...

Bitcoin bouncing today along with the equity markets though hopes for progress on crypto regulation hitting a roadblock this week as a key hearing gets punted into the new year. Emily Wilkins joins us. She has that story.Emily. >> Hey David. Well, yeah.Look, banking CEOs, crypto groups, they've been flooding Capitol Hill in recent weeks as senators are trying to come closer to an agreement on when to classify crypto as a security and when to classify it as a commodity and how to prevent crypto for being use ...