Over 33,000 crypto investors in South Korea are facing frozen assets valued at nearly $13 million after multiple exchanges shut down due to regulatory changes. Fourteen virtual asset platforms have either closed or temporarily halted operations, impacted by the new Virtual Asset User Protection Act, which aims to enhance security in South Korea’s crypto market.
The closures, which include major players such as Cashierest, ProBit, and Huobi, have left investors unable to access funds held in both digital and cash forms. Cashierest alone held around $9.4 million in user assets before its shutdown, while exchanges like ProBit and Huobi stored an additional $2 million.
This asset freeze may expand as other exchanges, including Oasis and Flata, currently hold substantial funds while undergoing service suspension. Representative Kang Min-Kuk has highlighted that regulatory costs are adding strain to the already weakened virtual asset market, increasing the likelihood of further closures as the Financial Services Commission undertakes its compliance assessment process.
Five individuals in Austria have received prison sentences for their roles in a $21.6 million cryptocurrency scam that deceived around 40,000 investors. The fraud, linked to EXW Wallet and EXW token, involved charges of commercial fraud, money laundering, and operating pyramid schemes, marking one of Austria’s largest financial crime cases. The trial, held at the Klagenfurt Regional Court, lasted over 300 hours, with Judge Claudia Bandion-Ortner delivering the sentences.
Two of the defendants were sentenced to five years, while others received shorter terms, with additional perpetrators still on the run. Investigations revealed extravagant spending from the stolen funds, including luxury cars, private jets, and parties in Dubai, as well as a shark tank in a Bali villa. Prosecutors stated that the operation’s scale could reach between €14 million and €120 million, far exceeding original estimates.
Although the defence argued the scheme began with genuine investment intentions, the prosecution maintained it was fraudulent from the start. With appeals expected, the defendants face additional compensation and legal costs, while related investigations continue.
According to Deputy Central Bank Governor Pal Longva, Norges Bank is preparing to decide next year whether to introduce a digital currency. While other countries, like Switzerland, have already moved forward with their CBDC plans, Norway’s central bank continues to evaluate its options and is in no rush, Longva assured.
The bank is considering retail and wholesale digital currencies, though there is an increasing focus on wholesale options used between banks. However, a retail CBDC, meant for everyday consumers, poses complex issues requiring cooperation with private banks and stakeholders.
Norway, being one of Europe’s most cashless societies, is still moving forward cautiously. A final decision on the introduction of a CBDC is expected by 2025, once the ongoing pilot programme concludes.
Kalshi, a prediction market platform, has cleared legal hurdles for electoral betting contracts in the US after a court victory over the Commodity Futures Trading Commission. With this win, the platform plans to introduce USD Coin (USDC) deposits just ahead of the US presidential elections, adding a major crypto feature for its users.
As the US election approaches, prediction markets are experiencing rapid growth. Kalshi aims to capture a larger share of this market but faces strong competition from Polymarket, which currently holds 99% of the market share and saw over $1 billion in election-related bets in September alone.
Kalshi is also up against new crypto-native platforms, though its US court approval gives it a potential edge. The platform hopes to attract more US users as prediction market betting volumes continue to soar.
Vietnam officially launched its National Blockchain Strategy on 22 October, aiming to lead blockchain technology across Asia by 2030. The plan includes developing blockchain platforms, services, and products, with a target of establishing 20 prominent blockchain brands by 2025.
A key part of the strategy is the creation of at least three blockchain testing centres in major cities to foster innovation, enhance security, and build a national blockchain network. To achieve these goals, the government will focus on improving legal frameworks, infrastructure, human resources, and international cooperation.
Various ministries, including the Ministry of Information and Communications, will guide these initiatives, with the Vietnam Blockchain Association leading efforts to boost blockchain development and encourage collaboration among tech companies.
The UK is expected to introduce laws regulating stablecoins within the next few months, according to Circle’s global head of policy, Dante Disparte. Stablecoin usage has surged recently, with the market reaching a record high of nearly $170 billion in Q3 2024, pushing regulators to act.
While the European Union has already implemented its Markets in Crypto-Assets regulation, the UK has been slower to create specific rules. However, recent developments, including a proposal to classify digital assets as personal property, suggest progress is being made.
With clearer regulations, the UK hopes to capitalise on the potential benefits of stablecoins, such as faster payments and innovation in financial services, while addressing risks linked to these digital assets.
Denmark’s Tax Law Council has proposed a bill that could tax unrealised gains and losses on crypto assets, potentially starting in 2026. The Council’s report outlined three possible taxation models, leaning towards “inventory taxation,” where entire portfolios are taxed annually, regardless of asset sales.
The proposed law aims to address perceived unfairness in the current taxation of crypto under the capital gains system. Danish Tax Minister Rasmus Stoklund is keen on clearer rules for crypto assets, though the bill is not expected to be introduced to Parliament until 2025.
If approved, the law would take effect in 2026, aligning Denmark with a global trend of tightening regulations for both crypto and traditional financial assets.
Japan’s financial regulators remain cautious about approving spot crypto exchange-traded funds (ETFs), even as other markets like the US and Hong Kong move forward with similar products. Oki Shiozawa, investment director at Sumitomo Mitsui Trust Asset Management, explained that Japan’s Financial Services Agency (FSA) is conservative and not yet ready to allow such ETFs, despite global advancements.
While Japan aims to position itself as a crypto-friendly hub, strict regulations and high tax rates have limited the growth of digital assets. Crypto gains in Japan are taxed as high as 55%, compared to the 20% tax rate for traditional assets like ETFs. Keisuke Kimura, from the Japan Cryptoasset Business Association, noted that past scandals, like Mt. Gox, have made both regulators and the public wary of crypto investments.
Despite the challenges, companies like Franklin Templeton and SBI Holdings are preparing for potential regulatory shifts, while others, like Nomura, have already launched crypto-related products for institutional investors. As global markets embrace crypto ETFs, Japan faces increasing pressure to adapt.
The US Securities and Exchange Commission (SEC) has once again prioritised cryptocurrencies in its 2025 examination plans. According to the Division of Examinations, the focus will be on the offer, sale, and trading of digital assets, with particular attention to Bitcoin and Ether exchange-traded products. The regulator will also monitor the technological risks posed by blockchain and the security of crypto assets.
Despite potential leadership changes in 2025, with Chair Gary Gensler possibly leaving, the SEC appears committed to maintaining its approach to regulating crypto markets. Gensler has defended the commission’s efforts to protect investors while facilitating market growth. However, the SEC’s enforcement actions, including lawsuits against major players like Coinbase and Ripple, have sparked criticism.
Institutional investors in the US have significantly embraced Bitcoin exchange-traded funds (ETFs), with $13 billion in Bitcoin ETF shares acquired since January. A report reveals that 1,179 institutions now hold a combined 193,064 BTC across various spot ETFs, which were initially met with scepticism by legacy finance firms.
Asset management giants such as Millennium Management and Jane Street account for 20% of the total Bitcoin ETF assets. Notably, BlackRock’s Bitcoin ETF became the fastest-growing in US history, marking a major milestone for cryptocurrency integration into traditional finance.
Experts predict that rising institutional demand for spot BTC ETFs will continue to fuel Bitcoin’s price, with projections suggesting the cryptocurrency could surpass $100,000 by early 2025. Despite anticipated short-term volatility, Bitcoin advocates remain confident of its long-term potential, forecasting even higher values by 2045.
