Key Takeaways Bitwise President Teddy Fusaro said blockchain technology is “10x better” than existing financial infrastructure. But adoption is still in early stages, he said. It comes after Bitwise CIO Matt Hougan said Bitcoin could reach $1 million. Bitwise President Teddy Fusaro said on Tuesday that blockchain technology is “10x better” than the current financial system, arguing that decades-old infrastructure is due for a major upgrade. Upgrade To Blockchain Needed Speaking at the DC Blockch ...

Core Viewpoint - India has revised its income tax rules to expand the scope of financial account reporting, now including crypto assets, central bank digital currencies (CBDCs), and specific electronic money products [1][2]. Group 1: Changes in Financial Account Reporting - The updated framework includes income streams such as interest linked to crypto and crypto-related holdings, indicating a shift towards comprehensive tax reporting of digital asset activities [2]. - Crypto asset service providers and certain financial institutions are now required to report transactions and balances involving these assets to tax authorities [2]. Group 2: Definition and Monitoring of Financial Assets - The definition of "financial assets" has been broadened to encompass CBDCs and various electronic money instruments within the tax reporting framework [1]. - The definition of "depository institutions" has been revised to include accounts representing electronic money products or holding CBDCs, necessitating more detailed monitoring of these accounts by banks and depositories [3]. Group 3: New Conditions for Accounts - New conditions have been established for accounts related to company formation or capital raising, with some depository accounts having year-end balances below $10,000 being exempt from these requirements [4]. - Financial institutions must maintain valid self-certifications and obtain taxpayer identification numbers and dates of birth, in compliance with the Prevention of Money-Laundering Act, 2002 [4]. Group 4: Applicability of the New Rules - The obligations apply to both existing and newly opened accounts, including joint account holders and controlling persons, for account categories where the balance exceeds $10,000 [5]. - The amended rules are specifically applicable to non-US accounts [5].

Key Takeaways HMRC has reminded U.K. crypto traders that profits exceeding the £3,000 annual capital gains tax allowance may be subject to tax. New reporting rules increase transparency from 2026. Many traders wrongly assume they don’t need to report crypto activity or fail to include all wallets and exchanges. British crypto traders could face unexpected tax bills if they fail to properly report their gains, experts have warned, after HM Revenue & Customs (HMRC) reminded traders that profits abo ...

Core Viewpoint - Nomura Holdings is reinforcing its commitment to the crypto market by tightening risk controls at its Laser Digital unit to manage earnings volatility while pursuing long-term strategies [1][2][5]. Group 1: Company Strategy - The bank has implemented stricter position management to reduce risk exposure and limit earnings fluctuations caused by crypto market volatility [2][5]. - Nomura's strategy aims to capture growth opportunities in the crypto market while enhancing its services and customer base [2][5]. - The firm acknowledges that earnings volatility is inherent in the crypto-asset business and emphasizes a medium- to long-term perspective [2][5]. Group 2: Market Context - The crypto market has experienced a significant decline, with total value dropping by nearly half a trillion since January 29, 2024 [3]. - Bitcoin reached a low of $72,870, its lowest level since November 2024, before recovering to over $76,000 [3]. - Following the October 10 flash crash, which eliminated over $19 billion in leveraged positions, Bitcoin ended the year around $87,000, approximately 31% below its peak [4]. Group 3: Financial Performance - Losses at the Laser Digital unit contributed to a 9.7% decline in Nomura's fiscal third-quarter profit [2]. - The bank's assets under management were reported at $673 billion as of late last year [5]. - The Q3 performance is not indicative of any fundamental weakness, as risk-taking at Laser Digital is described as being at institutional grade [6].

Core Viewpoint - South Korean financial authorities are considering a new enforcement tool to freeze crypto-related accounts to prevent suspects from cashing out profits during ongoing investigations [1][2]. Group 1: Proposal Details - The proposed "payment freeze" system aims to stop suspects from withdrawing or transferring profits while investigations are active [1]. - Current regulations require a court warrant to seize or preserve assets, which can delay action and allow suspects to move funds [2][3]. - The new mechanism would be similar to existing stock market regulations that allow for the suspension of payments on accounts suspected of unfair trading [5]. Group 2: Regulatory Context - The Financial Services Commission (FSC) discussed the proposal during a closed-door meeting while reviewing a virtual asset price manipulation case [2]. - Investigators are facing challenges with manipulation schemes that generate large unrealized profits, making timely intervention crucial [3][4]. - The FSC highlighted a recent case involving a 100 billion won stock manipulation scheme as evidence that early account freezes could be effective in crypto markets [6]. Group 3: Industry Implications - Participants in the discussions agreed that a similar enforcement tool should be considered in the second phase of South Korea's virtual asset legislation [7]. - Virtual assets are noted to be easier to conceal than stocks once they leave regulated platforms, emphasizing the need for early intervention [7].

Core Viewpoint - The Financial Stability Oversight Council's (FSOC) 2025 annual report adopts a softer stance on crypto assets compared to previous reports, reflecting regulatory changes and a shift in political attitudes towards the industry [1][2]. Regulatory Changes - The 2025 report indicates a more measured tone, acknowledging that parts of the crypto industry are now under federal supervision due to regulatory changes and political shifts, particularly following President Trump's support for the industry [2]. - The GENIUS Act, enacted in July, establishes a federal framework for payment stablecoin issuers, providing regulatory clarity aimed at fostering stablecoin innovation while addressing financial stability risks [4][5]. Recommendations and Guidance - The FSOC recommends that member agencies proactively address outstanding issues related to the supervision and regulation of digital asset engagement by supervised institutions [3]. - The report suggests further issuance of clear expectations and guidance on various aspects of digital asset activities, including custody, tokenization, and anti-money laundering obligations [4]. Changes in Risk Assessment - The 2025 report does not reiterate previous warnings about the vulnerability of stablecoins to runs or the systemic risks posed by market concentration, marking a significant shift from earlier assessments [6][7].

Core Viewpoint - The chair of the US Securities and Exchange Commission (SEC), Paul Atkins, is leading an initiative to reform crypto regulations to ensure long-term stability and prevent future administrations from reversing these changes [1][2]. Group 1: Project Crypto Initiative - Atkins announced "Project Crypto" at the Blockchain Association's policy summit, aiming to establish a "plan for crypto market primacy" that evaluates the benefits and risks of transitioning markets from off-chain to on-chain environments [2]. - The SEC staff has been instructed to create proposals to clarify the regulatory status of crypto assets, facilitate traditional financial institutions in holding crypto, and promote the development of comprehensive financial "super-apps" [2]. - Atkins categorized crypto assets into four types: digital commodities, digital collectibles, digital tools, and tokenised securities, with a focus on tokenised securities for future SEC efforts [2][3]. Group 2: Regulatory Focus and Changes - Only tokenised securities will be treated as securities under SEC regulation, with proposed changes to existing rules governing the trading of securities to accommodate on-chain trading of tokenised equities [3]. - Atkins indicated that many current regulations may not be suitable for a tokenised on-chain environment, suggesting a need for reform [4]. Group 3: Industry Reactions - The initiative has received support from the crypto industry, but there are concerns from traditional market players, such as Citadel Securities, which warned that relaxing regulations could disrupt US equity markets by favoring decentralized exchanges [4]. - Atkins has ruled out the possibility of isolating traditional markets from the more volatile crypto market, indicating a desire for integration rather than separation [5].

Core Viewpoint - Hong Kong is initiating a public consultation to implement the OECD's Crypto-Asset Reporting Framework (CARF) and amend the Common Reporting Standard (CRS), aiming for automatic exchange of crypto tax information by 2028 [1]. Group 1: Legislative and Regulatory Framework - The government plans to amend the Inland Revenue Ordinance to implement CARF and the amended CRS, demonstrating a commitment to combat cross-border tax evasion [2]. - The automatic exchange of information will be reciprocal with partner jurisdictions that meet confidentiality and security standards, with the amended CRS set for implementation in 2029 [2]. - The CARF was published by the OECD in 2023 in response to the rapid growth of the digital asset market, providing a framework for automatic exchange of crypto transaction tax information [3]. Group 2: Enhancements and Compliance Measures - The new framework includes digital financial products and enhanced reporting requirements, addressing gaps in traditional financial account information exchange [4]. - The CARF builds on the existing CRS infrastructure, applying similar transparency standards to crypto assets that process billions in trading volume across licensed exchanges in Hong Kong [5]. - The government proposes mandatory registration for financial institutions to improve identification, alongside increased penalties and enhanced enforcement mechanisms [5]. Group 3: Strategic Context - The consultation occurs as Hong Kong balances the need for digital asset innovation with compliance to international regulatory standards [7]. - The city is pursuing aggressive fintech expansion through the "Fintech 2030" strategy, focusing on data, artificial intelligence, resilience, and tokenization under the DART framework [7].

Core Viewpoint - The European Commission has proposed transferring direct supervision of all crypto asset service providers to the European Securities and Markets Authority (ESMA) to enhance regulatory consistency across the EU [1][2]. Group 1: Regulatory Changes - The new legislative package aims to eliminate regulatory fragmentation across 27 member states by granting ESMA powers similar to those of the U.S. Securities and Exchange Commission [1][2]. - ESMA will directly authorize crypto firms operating across the EU, replacing the previous passporting system [2]. - The framework introduces "Pan-European Market Operator" status to streamline corporate structures into a single licensing format, enhancing ESMA's coordination role in asset management [3]. Group 2: Addressing Risks and Inconsistencies - The changes are positioned as essential for responding to emerging risks and addressing inconsistencies from fragmented national approaches [4]. - The package also aims to amend the DLT Pilot Regulation to increase proportionality and provide legal certainty for blockchain adoption [4]. Group 3: Member States' Perspectives - France supports the centralization of regulatory powers, citing concerns over regulatory loopholes in the current passporting model [5]. - Germany has recently shown openness to expanded ESMA powers, marking a shift from previous opposition [6]. - ECB President Christine Lagarde has endorsed centralized supervision as crucial for European competitiveness against the U.S. [6].

Core Viewpoint - Token Cat Limited has approved a Crypto Asset Investment Policy to allocate up to USD 1 billion into selected crypto assets, aiming to enhance its asset strategy and resilience amid macroeconomic uncertainty [1][2]. Group 1: Policy Framework - The Board has set an overall allocation limit of up to USD 1 billion for digital asset planning, with deployment occurring in phases based on market conditions and risk assessments [2]. - The initial asset allocation will focus on emerging crypto project tokens with strong growth prospects, particularly in AI, RAW-to-chain initiatives, and token-equity hybrid models [3]. - The Company will adhere to the highest-tier custody standards and will not self-custody acquired crypto assets [3]. Group 2: Governance and Oversight - A Crypto Asset Risk Committee has been established, led by the CFO, to oversee asset allocation, manage risk controls, and report regularly to the Board [4]. - The appointment of Sav Persico as Chief Operating Officer, who has thirty years of experience in crypto and blockchain, is aimed at effectively implementing the new policy [2][5]. Group 3: Strategic Intent - The Company views crypto assets as long-term value reserves rather than speculative tools, focusing on sustainable, long-term growth [5].