Cryptocurrencies

Bank of Korea sounds alarm over unregulated stablecoins

Bank of Korea Governor Lee Chang-yong warned that letting non-banks issue won-based stablecoins could spark economic confusion similar to the 19th-century US Free Banking Era. His remarks follow President Lee Jae Myung’s push to launch domestic stablecoins under his economic agenda.

Governor Lee noted that handing over payment and settlement services to non-banks might disrupt the profit models of traditional banks and conflict with foreign exchange policies. He stressed that stablecoin policy requires coordination across government, as the central bank lacks sole authority.

Meanwhile, President Lee’s support for stablecoins has sparked a flurry of activity among fintech and banking firms, with many filing trademark applications linked to KRW stablecoin symbols. KakaoPay, one of South Korea’s largest payment platforms, has seen its stock surge by more than 120% since Lee’s election.

The BOK recently announced it will pause its central bank digital currency (CBDC) pilot, citing legal uncertainty surrounding the coexistence of CBDCs, stablecoins, and deposit tokens. Lee stated the trial had considered stablecoin interaction from the beginning, and further action will depend on legislative developments.

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Germany’s top banks move into crypto with regulated services

Some of Germany’s largest banks are set to enter the crypto market with fully regulated custody and trading services.

Deutsche Bank, Sparkassen-Finanzgruppe, and Volksbanken Raiffeisenbanken are building platforms aimed at institutional and retail clients, signalling a significant shift for conservative institutions.

These developments follow the EU’s Markets in Crypto‑Assets Regulation (MiCA), which took effect in 2025 and provides clear legal frameworks across Europe.

Deutsche Bank is developing an institutional crypto custody service with Bitpanda and Taurus compliant with BaFin and MiCA regulations. Meanwhile, Sparkassen-Finanzgruppe plans to embed retail crypto trading within its Sparkasse app, reaching nearly 50 million users by mid-2026.

Volksbanken Raiffeisenbanken are piloting compliant trading and custody services through collaborations with Börse Stuttgart Digital and Atruvia.

Deutsche Bank is also developing Project DAMA 2, an Ethereum layer-2 solution for tokenising assets and future bank-issued stablecoins. As major banks adopt crypto, Germany could lead an EU-wide shift to regulated digital assets, ending crypto’s unregulated early phase.

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Hong Kong eyes over 40 firms for stablecoin licences

Hong Kong is processing enquiries from more than 40 companies ahead of the implementation of its Stablecoin Bill on 1 August. The Hong Kong Monetary Authority will start accepting stablecoin licence applications under the new regulatory framework.

Notable firms preparing to apply include JD.com, Ant Group, Standard Chartered, and Circle. Industry insiders say most applicants are large mainland Chinese companies, while smaller firms often lack the operational and technical capacity required.

Use cases under consideration range from stablecoin issuance to settlement infrastructure and wallet tools enabling fiat conversion.

Hong Kong’s approach focuses on formal oversight and compliance, unlike crypto-native models used in Singapore, Japan, and the EU. Experts note that transaction costs associated with stablecoins—accounting for exchange fees, on-chain processing, and compliance—may still reach around one percent.

The city’s licensing process could set a benchmark for Asian financial centres, balancing innovation and regulatory control.

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Sanctions proposed on Bukele amid El Salvador’s crypto controversy

A group of US Democratic senators has proposed legislation seeking sanctions against El Salvador’s President Nayib Bukele and members of his government. The El Salvador Accountability Act targets alleged human rights abuses and Bitcoin misuse during the state of exception.

The bill calls for measures including freezing US-held assets, visa restrictions, and suspending financial aid to Bukele, his cabinet, and other government-linked individuals. It requires the US president to give annual updates on sanctions and a detailed report on El Salvador’s crypto activities.

The report must detail public Bitcoin spending, exchanges used, wallet addresses, and potential gaps enabling corruption or sanctions evasion.

President Bukele rejected the sanctions proposal, mocking the lawmakers on social media and pointing to his growing cooperation with US President Donald Trump. Their collaboration includes efforts against gangs and shared support for crypto initiatives.

Bukele’s dismissal underscores tensions between US lawmakers and El Salvador’s leadership amid ongoing geopolitical and financial debates.

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Greece seizes crypto tied to record Bybit hack

Greek authorities have successfully seized digital assets linked to a major international cybercrime case, marking the country’s first-ever recovery of cryptocurrency. The operation followed a months-long investigation into suspicious blockchain activity in collaboration with blockchain analytics firm Chainalysis.

The recovered funds are part of a record-breaking $1.5 billion theft from crypto exchange Bybit earlier this year. In February, hackers exploited a vulnerability in one of the platform’s Ethereum wallets, transferring the entire contents to an unknown address.

The incident, considered one of the largest crypto heists in history, has been widely attributed to North Korea’s Lazarus Group.

A suspect wallet was identified and frozen, cutting off access to the assets and transferring the case to prosecutors for further legal proceedings.

Officials hailed the move as a significant advance in combating digital crime. Analysts say the operation shows how blockchain transparency and forensic tools, combined with international cooperation, can disrupt even the most complex laundering networks.

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Bitcoin hits new all-time high as institutional demand surges

Bitcoin has broken past its previous record, trading above $111,970 in a move that defied technical indicators and widespread scepticism. The rally, fuelled by institutional flows and growing corporate adoption, forced short sellers to capitulate after building up $35 billion in open interest.

Bitcoin’s latest breakout is driven by spot ETF inflows and corporate adoption, rather than retail speculation or halving narratives. In the second quarter alone, ETF providers absorbed 245,000 BTC—around 1% of the total supply—tightening liquidity and amplifying price pressure.

Analysts now view this as a structural shift where institutional demand outpaces miner issuance by a factor of three.

Stronger-than-expected US job data and fading hopes for a July rate cut failed to dent the crypto rally. The broader equity market also gained, with the S&P 500, Nasdaq, and Dow posting solid advances.

Bitcoin’s parallel rise suggests it is no longer merely a high-risk asset but increasingly seen as a liquidity hedge in uncertain conditions.

Geopolitical risks are quietly building. The Trump administration introduced new tariffs against six countries, potentially escalating global trade tensions. Historically, such moves have weighed on risk assets, but Bitcoin has remained resilient.

Analysts warn, however, that the situation could change by August if the tariffs are implemented.

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Countries build state-level Bitcoin reserves worldwide

Bitcoin is no longer the preserve of tech-savvy investors and crypto enthusiasts. As of mid-2025, more than 460,000 BTC — around 2.3% of the total supply — is held by governments worldwide, according to blockchain data and legal disclosures.

The shift has elevated Bitcoin’s role in global finance, making it a strategic asset for nation-states.

The United States leads the pack with nearly 200,000 BTC, acquired mainly through criminal seizures. Unlike previous administrations, President Trump’s government has moved to consolidate these funds under a federal Strategic Bitcoin Reserve.

China follows closely behind, having confiscated 190,000 BTC from the PlusToken scam, though the fate of much of that stash remains unclear.

Beyond the prominent players, countries like Bhutan have quietly amassed impressive reserves. Using hydropower for mining, Bhutan has reportedly gathered up to 13,000 BTC — worth over $1 billion — equating to more than a third of its GDP.

Meanwhile, the UK holds 61,000 BTC from a money-laundering case, Ukraine used Bitcoin donations during wartime, and Iran requires licensed miners to send their BTC directly to the central bank.

While some nations broadcast their Bitcoin strategy, others operate in silence. From El Salvador’s legal tender experiment to rumours of holdings in the UAE and Bulgaria, the landscape is varied and opaque. Still, one trend is clear: state-level Bitcoin adoption is no longer theoretical.

Governments are actively shaping the future of decentralised money — sometimes loudly, often quietly, but always strategically.

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Turkey sets sights on DeFi platforms after PancakeSwap ban

Turkey’s recent decision to block PancakeSwap has raised concerns that more decentralised finance (DeFi) services could soon face similar enforcement. The move came after the Istanbul Blockchain Week, where regulators outlined a stricter framework for overseeing crypto platforms.

Updated guidelines require DEXs and non-custodial wallets to follow the same rules as centralised platforms if they promote services to Turkish citizens. According to Ali İhsan Güngör of the Capital Markets Board, institutions promoting to users in Turkey fall within the country’s regulatory scope.

Although capital movement remains unrestricted, regulators have begun blocking access to DeFi platforms that directly advertise or promote within the country.

Turkish authorities ordered internet service providers to block access to PancakeSwap and 46 other websites. Mobile apps and social media accounts tied to those platforms were also affected.

PancakeSwap, a decentralised protocol with no registered presence in Turkey, cannot apply for a crypto service provider licence, making it vulnerable under the new enforcement rules.

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Tether defends gold reserves as markets and scrutiny rise

Tether has revealed it holds around $8 billion worth of gold in a Swiss vault, placing it among the largest private holders of the precious metal globally.

According to CEO Paolo Ardoino, the El Salvador-based firm owns almost an 80-tonne stockpile outright, describing the site as ‘the most secure vault in the world’.

Gold accounts for nearly 5% of Tether’s $112 billion reserve portfolio, matching UBS Group’s reported gold exposure. While self-custody helps reduce operational fees, regulatory frameworks in the US and EU may soon force stablecoin issuers to exclude commodities from their reserves.

If enforced, Tether could be required to liquidate its bullion unless the gold backs its separate token, XAUT.

XAUT currently circulates against 7.7 tonnes of gold worth approximately $819 million. Although far below significant exchange-traded funds, its physical redemption model adds a layer of investor confidence.

Ardoino suggested demand for bullion-linked crypto could rise if investors grow wary of US fiscal health or seek to avoid deposit risk.

Gold prices have surged 25% in 2025 amid trade frictions and geopolitical concerns. As BRICS banks buy more gold, Tether blends bullion with blockchain but must show regulators it won’t harm USDT’s liquidity in times of stress.

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Fraudsters exploit dormant Bitcoin addresses to steal data

Analysts at BitMEX Research have revealed a new scam aimed at early Bitcoin holders, particularly those with dormant wallets dating back to 2011. Attackers use Bitcoin’s OP_Return field to send false transactions and messages to deceive owners into sharing sensitive data.

One high-profile victim is the ‘1Feex’ wallet, known for holding around 80,000 BTC stolen from the Mt. Gox hack.

Scammers made a fake Salomon Brothers site claiming that wallets are abandoned unless owners prove ownership with signed messages or personal documents. The site bears no genuine link to the original financial firm or its former executives.

Crypto community members recommend a safer approach: moving a small amount of Bitcoin to demonstrate wallet activity instead of risking the full balance. BitMEX urges users to avoid interacting with fake sites or sharing personal data.

The scam exemplifies growing sophistication in crypto fraud, with losses exceeding $2.1 billion in just the first half of 2025.

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