Cryptocurrencies

Florida renews effort to create state crypto reserve

Florida has reintroduced its push to establish a state crypto reserve, with Representative Webster Barnaby filing House Bill 183 to permit limited investment of public funds in digital assets. The proposal comes after his earlier attempt was withdrawn in June.

Under the new bill, Florida could invest up to 10% of state and public entity funds in assets such as Bitcoin, crypto ETFs, tokenised securities and other blockchain-based products. The legislation adds stricter standards to improve oversight of digital holdings.

Unlike its predecessor, the bill broadens investment options beyond Bitcoin, aiming to provide greater flexibility for portfolio diversification. If passed, HB 183 would take effect on 1 July 2026, allowing digital assets in state pension and trust funds.

Barnaby also introduced a separate measure, HB 175, which seeks to clarify regulations for stablecoin issuers. The proposal exempts recognised payment stablecoin issuers from additional licensing, provided they maintain full collateral in dollars or treasuries and conduct monthly reserve audits.

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UK and US freeze assets of Southeast Asian online scam network

The UK and US governments have jointly sanctioned a transnational network operating illegal scam centres across Southeast Asia. These centres use sophisticated methods, including fake romantic relationships, to defraud victims worldwide.

Many of the individuals forced to conduct these scams are trafficked foreign nationals, coerced under threat of torture. Authorities have frozen a £12 million North London mansion, along with a £100 million City office and several London flats.

Network leader Chen Zhi and his associates used corporate proxies and overseas companies to launder proceeds from their scams through London’s property market.

The sanctioned entities include the Prince Group, Jin Bei Group, Golden Fortune Resorts World Ltd., and Byex Exchange. Scam operations trap foreign nationals with fake job adverts, forcing them to commit online fraud, often through fake cryptocurrency schemes.

Proceeds are then laundered through a complex system of front businesses and gambling platforms.

Foreign Secretary Yvette Cooper and Fraud Minister Lord Hanson said the action protects human rights, UK citizens, and blocks criminals from storing illicit funds. Coordination with the US ensures these sanctions disrupt the network’s international operations and financial access.

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US seizes $15 billion crypto from Cambodia fraud ring

US federal prosecutors have seized $15 billion in cryptocurrency tied to a large-scale ‘pig butchering’ investment scam linked to forced labour compounds in Cambodia. Officials said it marks the biggest crypto forfeiture in Justice Department history.

Authorities charged Chinese-born businessman Chen Zhi, founder of the Prince Group, with money laundering and wire fraud. Chen allegedly used the conglomerate as cover for criminal operations that laundered billions through fake crypto investments. He remains at large.

Investigators say Chen and his associates operated at least ten forced labour sites in Cambodia where victims, many coerced workers, managed thousands of fake social media accounts to lure targets into fraudulent investment schemes.

The US Treasury also imposed sanctions on dozens of Prince Group affiliates, calling them transnational criminal organisations. FBI officials said the scam is part of a wider wave of crypto fraud across Southeast Asia, urging anyone targeted by online investment offers to contact authorities immediately.

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UK regulator outlines roadmap for tokenised funds

The UK’s Financial Conduct Authority (FCA) has unveiled new plans to advance tokenisation in the asset management sector, aiming to drive innovation and long-term growth. With 2,600 firms managing £14 trillion in assets, the regulator aims to give firms clarity and confidence in adopting blockchain solutions.

Tokenisation, which represents assets digitally using distributed ledger technology, is expected to increase competition, enhance investor choice, and open access to private markets. It could also make investing more cost-effective and tailored, particularly for new investors.

The FCA’s plans include guidance for tokenised fund registers, a simpler dealing model, and a roadmap to tackle blockchain settlement barriers. The regulator’s approach aligns with its broader digital assets strategy, aiming to make the UK a global leader in asset management innovation.

Simon Walls, executive director of markets at the FCA, said tokenisation could bring ‘fundamental changes’ to the industry, highlighting that the UK now has a real opportunity to lead globally in this emerging space.

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Bhutan moves national ID system to Ethereum

Bhutan has moved its national ID system to the Ethereum blockchain, aiming to enhance security, transparency, and citizen control. Nearly 800,000 residents will use Ethereum to verify identities, replacing the Polygon system.

The migration of all credentials is expected to be completed by the first quarter of 2026. Ethereum co-founder Vitalik Buterin and Ethereum Foundation President Aya Miyaguchi joined Bhutan’s Prime Minister Tshering Tobgay and Crown Prince Jigme Namgyel Wangchuk at the launch ceremony.

Miyaguchi described the project as a ‘world-first’ achievement in self-sovereign digital identity.

Bhutan previously used Hyperledger Indy and then Polygon for its national ID solution, making Ethereum its third blockchain platform. The nation’s National Digital Identity and GovTech teams played key roles, supported by the local crypto community.

Other countries, including Brazil and Vietnam, have partially adopted blockchain-based identity systems.

In addition to digital IDs, Bhutan has become a significant crypto adopter. It holds 11,286 Bitcoin, worth $1.31 billion, largely mined via renewable Himalayan hydropower. The country has also met with former Binance CEO Changpeng Zhao, suggesting potential future crypto initiatives.

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Kenya passes bill to regulate cryptocurrency

Kenyan lawmakers have approved the Virtual Asset Service Providers Bill, establishing a formal regulatory framework for cryptocurrency and digital assets. The Central Bank of Kenya will licence digital assets, while the capital markets regulator oversees exchanges.

The bill now awaits President William Ruto’s signature to become law.

The country has experienced rapid cryptocurrency growth despite limited prior regulations. A 1.5% digital assets tax was introduced in 2023, and Kenya ranked fourth in Africa for crypto adoption in 2024, behind Nigeria, Ethiopia, and Morocco.

The IMF has urged Kenya to align crypto rules with global standards to reduce risks like money laundering and terrorism financing. Lawmakers appear to have heeded these warnings as the nation moves toward its first formal crypto legislation.

Kenya’s adoption reflects a broader trend across eastern Africa, where cryptocurrencies are increasingly used for cross-border remittances and international transactions.

Stablecoins represented roughly 43% of Sub-Saharan Africa’s crypto transactions in 2024, while South Africa saw its first publicly listed company adopt Bitcoin as a treasury asset earlier this year.

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Digital assets set to double in portfolios

Investment institutions now allocate an average of 7% of their portfolios to digital assets, with projections indicating a rise to 16% within three years. Digital cash and tokenised equities or fixed income dominate, each comprising about 1% of portfolios.

Asset managers show greater exposure than asset owners, particularly in Bitcoin and Ethereum, with some even investing in smaller cryptocurrencies and NFTs.

Asset managers lead in adopting tokenised assets, holding 6% in public asset tokenisation and 5% in private assets, compared to just 1% and 2% for asset owners. Digital cash also sees higher adoption among managers at 7% versus 2% for owners.

Despite this, cryptocurrencies like Bitcoin and Ethereum drive the majority of returns, with 27% and 21% of respondents citing them as top performers, respectively.

Looking ahead, private assets are expected to lead the tokenisation trend, with most institutions anticipating digital assets will become mainstream within a decade. By 2030, over half of respondents expect 10-24% of investments in digital assets or tokenised instruments, showing cautious optimism.

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PayPay and Binance Japan unite to advance digital finance

PayPay, Japan’s top cashless payment firm and a SoftBank company, has acquired 40% of Binance Japan to unite traditional finance with blockchain innovation. The partnership merges PayPay’s 70 million users and trusted network with Binance’s digital asset expertise and global Web3 leadership.

Under the new alliance, Binance Japan users will soon be able to purchase cryptocurrencies using PayPay Money and withdraw funds directly into their PayPay wallets. The integration seeks to simplify digital trading and connect cashless payments with decentralised finance.

Executives from both companies highlighted the significance of this collaboration. PayPay’s Masayoshi Yanase said the deal supports Japan’s financial growth, while Takeshi Chino called it a milestone for everyday Web3 adoption.

The alliance is expected to accelerate Japan’s digital finance landscape, strengthening its role as one of the world’s most advanced economies in financial technology. By combining secure payments with blockchain innovation, PayPay and Binance Japan aim to build a seamless digital economy.

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Gemini expands its footprint in Australia

Gemini has announced a significant expansion in Australia, reinforcing its long-term growth strategy across Asia. The move includes appointing James Logan, gaining AUSTRAC registration, and launching new AUD banking rails for faster deposits and trading.

Australians can now deposit funds instantly through Osko and the New Payments Platform (NPP), avoiding international transfer delays and fees. Users can seamlessly buy, sell, and trade cryptocurrencies using AUD on the Gemini app and the Gemini ActiveTrader platform.

According to Gemini’s Global State of Crypto Report 2025, 22% of Australians already hold digital assets- a rate matching that of the United States.

James Logan will lead Gemini’s Australian operations, overseeing strategy, partnerships, and customer growth. With a background in financial services and senior roles at exchanges like Luno and Bitget, Logan brings deep expertise in digital asset adoption and trust building.

He described Gemini’s expansion as ‘an exciting milestone strengthening Australia’s access to secure and transparent crypto trading.’

Gemini’s mission to bridge traditional finance and the future of money underpins its commitment to trust, transparency, and innovation. The company views its expansion as the start of a long-term effort to empower Australians with secure tools to participate in the next generation of digital finance.

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Africa launches world’s largest tokenised economy with $5.5 billion

Global Settlement Network (GSN) and Diacente Group have partnered to establish Africa’s most advanced tokenised economy, valued at $5.5 billion in real-world infrastructure. The collaboration digitises assets across food production, minerals, renewable energy, and trade.

The initiative aims to create an inclusive, efficient economic system, leveraging blockchain to enhance emerging markets’ global participation.

Uganda leads with its first Central Bank Digital Currency (CBDC) pilot, deployed on GSN’s permissioned blockchain and backed by treasury bonds. Agro-processing hubs, mining operations, and solar plants underpin the tokenisation effort.

Fully compliant with KYC and AML regulations, the digital shilling enables over 40 million users to transact securely via smartphones and USSD, fostering financial inclusion across East Africa.

The project supports Uganda’s Vision 2040 and the African Union’s Agenda 2063, aligning with the goals of the African Continental Free Trade Area. Leaders project one million jobs and $10 billion in annual exports.

Ryan Kirkley, GSN co-founder, calls it a ‘programmable economy grounded in real assets,’ while Diacente’s Edgar Agaba emphasises attracting investment and empowering local industries through transparent, tech-driven systems.

The partnership sets a precedent for emerging markets, reducing reliance on intermediaries and unlocking global capital. Tokenisation integrated with national development drives sustainable growth, offering a scalable model for digital economies based on real infrastructure and regulatory collaboration.

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