Cryptocurrencies

Japan plans crypto reclassification and ETF access

Japan’s Financial Services Agency has proposed classifying cryptocurrencies as financial products under the Financial Instruments and Exchange Act.

The change would pave the way for crypto ETFs and apply a flat 20% capital gains tax, replacing the current progressive system, which taxes some gains at rates up to 55%. The proposal is part of the government’s broader ‘New Capitalism’ strategy to boost investment.

Interest in crypto has surged nationwide, with over 12 million active accounts and holdings exceeding 5 trillion yen. The FSA noted that crypto now surpasses traditional products like FX and bonds in popularity among retail investors.

Japanese regulators hope the shift will attract domestic and international institutional investors, following global trends such as spot Bitcoin ETF adoption in the US.

Japan is also moving towards stablecoin adoption. In April, SMBC and Ava Labs began exploring stablecoins pegged to the yen and dollar to settle tokenised assets. Meanwhile, SBI VC Trade secured Japan’s first stablecoin-handling licence, preparing to support USDC issuance.

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Turkey tightens grip on digital assets

Turkey’s Ministry of Treasury and Finance has introduced new regulations to curb illicit activities in the digital asset space. Platforms must now verify more detailed transaction data, including a written explanation for each transfer and proof of fund origin.

The move is expected to improve transparency and allow authorities to detect suspicious activity earlier.

A mandatory waiting period has been introduced for crypto withdrawals. Assets must remain on the platform for 48 hours after being purchased or exchanged, with a 72-hour delay for first-time withdrawals.

Daily and monthly limits of $3,000 and $50,000 have also been placed on stablecoin transfers, though fully compliant platforms may operate with doubled limits.

Authorities clarified that market-making, arbitrage, and liquidity provision transactions would remain unrestricted. However, platforms that fail to comply risk fines, licence suspensions, or complete bans.

These measures form part of a wider framework introduced in March under Capital Markets Law No. 6362, which mandates capital requirements, audits, and user protections. The new rules build on earlier regulations introduced in early 2025 to align with global anti-money laundering standards.

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South Korea plans slow rollout of stablecoins

South Korea’s central bank wants stablecoins introduced slowly, starting with regulated commercial banks.

Deputy governor Ryoo Sangdai said banks offer the highest level of oversight and could act as a safety net, limiting risks to consumers and markets.

Expansion to the broader financial sector would follow only after initial stability is ensured.

Despite limited support, the Bank of Korea remains cautious. Officials warned that stablecoins could accelerate capital outflows and complicate foreign exchange policy. Governor Rhee Chang-yong raised concerns about managing a won-based stablecoin in global markets.

To counter risks, the central bank is advancing its digital currency. A CBDC pilot is set to end by 30 June, with future trials depending on legal clarity and bank coordination.

While South Korea moves carefully, countries like the UAE, Russia, and several African nations are rapidly embracing stablecoin development.

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Bitcoin holds strong above $100,000

Bitcoin is trading around $106,533 after returning from early June lows and holding above the key $100,000 mark. Despite brief dips below $99,000 due to geopolitical tensions, strong support remains.

Resistance lies between $105,000 and $107,000, with a potential breakout targeting $112,000 to $114,000.

Technical charts show a possible cup and handle formation and a golden cross, supporting a bullish outlook.

Institutional accumulation and crypto fund inflows suggest continued long-term confidence, though short-term indicators signal caution as Bitcoin nears overbought levels.

Ethereum trades near $2,437, consolidating above $2,400 within a defined range. A cup and handle pattern, a nearing golden cross, and bullish signals indicate possible gains if resistance at $2,589 is surpassed. Recent on-chain buying supports Ethereum’s recovery from a flash dip to $2,224.

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North Korea-linked hackers deploy fake Zoom malware to steal crypto

North Korean hackers have reportedly used deepfake technology to impersonate executives during a fake Zoom call in an attempt to install malware and steal cryptocurrency from a targeted employee.

Cybersecurity firm Huntress identified the scheme, which involved a convincingly staged meeting and a custom-built AppleScript targeting macOS systems—an unusual move that signals the rising sophistication of state-sponsored cyberattacks.

The incident began with a fraudulent Calendly invitation, which redirected the employee to a fake Zoom link controlled by the attackers. Weeks later, the employee joined what appeared to be a routine video call with company leadership. In reality, the participants were AI-generated deepfakes.

When audio issues arose, the hackers convinced the user to install what was supposedly a Zoom extension but was, in fact, malware designed to hijack cryptocurrency wallets and steal clipboard data.

Huntress traced the attack to TA444, a North Korean group also known by names like BlueNoroff and STARDUST CHOLLIMA. Their malware was built to extract sensitive financial data while disguising its presence and erasing traces once the job was done.

Security experts warn that remote workers and companies have to be especially cautious. Unfamiliar calendar links, sudden platform changes, or requests to install new software should be treated as warning signs.

Verifying suspicious meeting invites through alternative contact methods — like a direct phone call — is a vital but straightforward way to prevent damage.

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New SparkKitty malware targets crypto wallets

A new Trojan dubbed SparkKitty is stealing sensitive data from mobile phones, potentially giving hackers access to cryptocurrency wallets.

Cybersecurity firm Kaspersky says the malware hides in fake crypto apps, gambling platforms, and TikTok clones, spread through deceptive installs.

Once installed, SparkKitty accesses photo galleries and uploads images to a remote server, likely searching for screenshots of wallet seed phrases. Though mainly active in China and Southeast Asia, experts warn it could spread globally.

SparkKitty appears linked to the SparkCat spyware campaign, which also targeted seed phrase images.

The malware is found on iOS and Android platforms, joining other crypto-focused threats like Noodlophile and LummaC2.

TRM Labs recently reported that nearly 70% of last year’s $2.2 billion in stolen crypto came from infrastructure attacks involving seed phrase theft.

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US Senator proposes crypto ban for top officials

Senator Adam Schiff has proposed a bill to ban top officials and their families from engaging in crypto ventures while in office. The COIN Act seeks to ban top officials from endorsing, creating, or promoting cryptocurrencies, NFTs, and stablecoins.

The proposal follows growing scrutiny of President Donald Trump’s involvement in digital assets. Schiff pointed directly to Trump’s financial gains, which included $58 million from token sales in 2024 and a projected $390 million in 2025.

He argued that such activities raise ‘ethical, legal and constitutional’ concerns, especially concerning public office.

Under the COIN Act, any sale of digital assets over $1,000 must be disclosed. Violators could face penalties equal to their profits and up to five years in prison.

Despite this push, Schiff previously voted for the GENIUS Act, which exempted the president and vice president from stablecoin restrictions—a move some critics see as contradictory.

The bill has gained support from nine Senate Democrats but is unlikely to pass under a Republican-controlled Congress. Democrat-led measures, such as the MEME Act and the Stop TRUMP in Crypto Act, have similarly struggled to gain traction.

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Traders bet on war with meme coins

Amid rising Middle East tensions, crypto traders rushed into World War-themed meme coins, seeking profits from panic. BunkerCoin, a token linked to a supposed German bunker project, surged nearly 2,000% before losing most of its gains.

Other tokens, like Werld Wur Thwee and Sticks and Stones, followed similar boom-and-bust cycles.

Most of these speculative tokens launched via Pump.fun, a Solana-based platform that has created over 11 million meme coins. According to on-chain analysts, these coins are rarely linked to genuine interests.

Instead, traders follow trending topics, from war to celebrity illnesses, to profit quickly—regardless of ethical implications.

Industry observers argue that the meme coin craze reflects deeper issues. Educational and financial nihilism, particularly among younger generations, pushes many away from traditional finance.

Disillusioned by stagnant wages and high living costs, they turn to meme coins not just for money but for identity and cultural belonging.

Some projects have crossed moral boundaries, mocking cancer diagnoses or promoting hate speech. Yet despite the risks, the appeal of instant gains continues to drive participation.

One expert noted, ‘Meme coins thrive on dopamine, not fundamentals.’

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Solana teams up with Kazakhstan to grow crypto startups

Solana has signed a Memorandum of Understanding with Kazakhstan’s Ministry to support the country’s growing crypto sector. The partnership aims to advance startups and improve developer education using the Solana blockchain.

The collaboration aims to promote the tokenisation of capital markets, enhancing the appeal of Kazakhstan’s Astana International Exchange (AIX) to global investors.

Solana Foundation leaders highlighted how blockchain technology could help AIX compete with major exchanges such as the NYSE and Nasdaq by storing most trading volume on-chain.

The announcement comes shortly after Kazakhstan launched the Solana Economic Zone, the first in Central Asia. Digital minister Zhaslan Madiyev called the initiative a step towards fostering web3 talent and advancing Kazakhstan’s digital economy.

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Tether CEO unveils offline password manager

Paolo Ardoino, CEO of Tether, has introduced PearPass, an open-source, offline password manager. The launch comes in response to the most significant credential breach on record, which exposed 16 billion passwords.

Ardoino criticised cloud storage, stating the time has come to abandon reliance on it for security.

The leaked data reportedly covers login details from major platforms like Apple, Meta, and Google, leaving billions vulnerable to identity theft and fraud. Experts have not yet identified the perpetrators but point to systemic flaws in cloud-based data protection.

PearPass is designed to operate entirely offline, storing credentials only on users’ devices without syncing to the internet or central servers. It aims to reduce the risks of mass hacking attempts targeting large cloud vaults.

The tool’s open-source nature allows transparency and encourages the adoption of safer, decentralised security methods.

Cybersecurity authorities urge users to change passwords immediately, enable multi-factor authentication, and monitor accounts closely.

As investigations proceed, PearPass’s launch renews the debate on personal data ownership and may set a new standard for password security.

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