Cryptocurrencies

India and the US lead global crypto adoption

India remains the world leader in cryptocurrency adoption, topping retail, institutional, and DeFi categories, according to Chainalysis. The country’s strong performance reflects growing grassroots engagement and widespread mobile-first financial services.

The United States climbed to second place from fourth last year, boosted by regulatory clarity and increasing institutional participation. Pakistan, Vietnam, Brazil, and Nigeria also rank highly, reflecting crypto’s growing role in remittances, stablecoins, and emerging-market finance.

Asia-Pacific emerged as the fastest-growing region over the past year, posting a 69% increase in on-chain transaction volume to $2.36 trillion. India, Vietnam, and Pakistan contributed heavily to this growth, signalling the region’s increasing influence in global crypto markets.

North America and Europe maintained the largest absolute transaction volumes, with $2.2 trillion and $2.6 trillion respectively. North America’s 49% growth was supported by spot Bitcoin ETFs and regulatory clarity, while Europe recorded a 42% increase from an already high base.

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PayPal expands crypto payments with new settlement tool

PayPal has introduced ‘Pay with Crypto,’ a settlement feature that lets US merchants accept over 100 digital currencies, including Bitcoin, Ether, Solana, and stablecoins. Shoppers pay from wallets like MetaMask or Coinbase, and merchants receive instant payouts in dollars or PYUSD.

The service is designed to eliminate volatility risks by automatically converting crypto into fiat or stablecoins. Merchants benefit from near-instant settlement, lower fees than traditional card payments, and optional yield on PYUSD balances.

Small and medium-sized enterprises are expected to gain the most from global reach, quicker cash flow, and reduced costs.

For consumers, the process mirrors card payments. Buyers simply connect a wallet at checkout and pay in crypto, while merchants receive stable-value settlements.

The system enables non-custodial wallet users to spend crypto directly, turning digital assets into usable currency without relying on exchanges.

PayPal’s long-term goal is to create a global crypto-enabled infrastructure. With partnerships such as Fiserv and its upcoming World Wallet alliance, PayPal plans to integrate stablecoins and enable seamless cross-border payments through Fiserv and its World Wallet alliance.

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Hackers exploit Ethereum smart contracts to spread malware

Cybersecurity researchers have uncovered a new method hackers use to deliver malware, which hides malicious commands inside Ethereum smart contracts. ReversingLabs identified two compromised NPM packages on the popular Node Package Manager repository.

The packages, named ‘colortoolsv2’ and ‘mimelib2,’ were uploaded in July and used blockchain queries to fetch URLs that delivered downloader malware. The contracts hid command and control addresses, letting attackers evade scans by making blockchain traffic look legitimate.

Researchers say the approach marks a shift in tactics. While the Lazarus Group previously leveraged Ethereum smart contracts, the novel element uses them as hosts for malicious URLs. Analysts warn that open-source repositories face increasingly sophisticated evasion techniques.

The malicious packages formed part of a broader deception campaign involving fake GitHub repositories posing as cryptocurrency trading bots. With fabricated commits, fake user accounts, and professional-looking documentation, attackers built convincing projects to trick developers.

Experts note that similar campaigns have also targeted Solana and Bitcoin-related libraries, signalling a broader trend in evolving threats.

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Hong Kong sees surge in stablecoin licensing interest

Bank of China’s Hong Kong-listed shares jumped 6.7% on Monday after reports that the bank’s local branch is preparing to apply for a stablecoin issuer licence. The Hong Kong Economic Journal said the branch has already formed a task force to explore potential issuance.

The move comes after Hong Kong launched its stablecoin licensing regime on 1 August, requiring approval from the Hong Kong Monetary Authority. The framework sets strict rules on reserves, redemptions, fund segregation, anti-money laundering, disclosure and operator checks.

The regime has already drawn interest from major institutions such as Standard Chartered.

Chinese firms JD.com and Ant Financial have also expressed plans to seek licences abroad, potentially in Hong Kong, to support cross-border payments.

Advocates highlight the efficiency of stablecoins, noting that blockchain technology reduces settlement times and cuts intermediary costs. The benefits are particularly pronounced in emerging markets, where stablecoins hedge against currency volatility.

Regulators, however, have urged caution. The SFC and HKMA warned investors about speculation-driven price swings from licensing rumours, highlighting risks of reacting to unverified reports.

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Ukraine’s central bank warns against adding virtual assets to national reserves

Ukraine’s National Bank (NBU) has ruled out adding cryptocurrencies to the country’s foreign currency reserves, calling the proposal premature and high-risk. First Deputy Governor Serhiy Nikolaychuk said crypto volatility could reduce reserves and threaten their security.

The central bank highlighted the lack of a global regulatory framework and unified classification for virtual assets. Including crypto, which could violate IMF rules and impede Ukraine’s EU integration.

The European Central Bank considers it unacceptable for member states to include crypto in their reserves.

A draft law filed with parliament earlier this year would have allowed the NBU to acquire cryptocurrencies if desired. However, lawmakers and central bank officials have expressed caution, citing the high volatility of digital assets and potential risks to national financial stability.

Ukraine has seen rising crypto use since Russia’s 2022 invasion. According to a recent UK think tank report, a lack of comprehensive regulation has led to significant losses from crypto-related crime.

Authorities are continuing to prioritise security and financial prudence over speculative digital holdings.

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US regulators offer clarity on spot crypto products

The US Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have announced a joint effort to clarify spot cryptocurrency trading. Regulators confirmed that US and foreign exchanges can list spot crypto products- leveraged and margin ones.

The guidance follows the President’s Working Group on Digital Asset Markets recommendations, which called for rules that keep blockchain innovation within the country.

Regulators said they are ready to review filings, address custody and clearing, and ensure spot markets meet transparency and investor protection standards.

Under the new approach, major venues such as the New York Stock Exchange, Nasdaq, CME Group and Cboe Global Markets could seek to list spot crypto assets. Foreign boards of trade recognised by the CFTC may also be eligible.

The move highlights a policy shift under President Donald Trump’s administration, with Congress and the White House pressing for greater regulatory clarity.

In July, the House of Representatives passed the CLARITY Act, a bill on crypto market structure now before the Senate. The moves and the regulators’ statement mark a key step in aligning US digital assets with established financial rules.

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Bitcoin holdings in El Salvador spread across new addresses

El Salvador, the first country to adopt bitcoin as legal tender, has restructured its national bitcoin holdings to strengthen security against potential future threats. The National Bitcoin Office (ONBTC) announced that the country’s 6,280 BTC, worth around $687 million, has been split across 14 new addresses, each holding no more than 500 BTC. Officials say this change reduces exposure to risks, including those that could arise from advances in quantum computing.

The concern stems from the possibility that quantum computers, once powerful enough, could break cryptographic protections and reveal private keys. While no such machine exists today, bitcoin developers have long debated the timeline of this threat. ONBTC also highlighted that avoiding address reuse improves security and privacy while allowing the government to maintain transparency.

The broader bitcoin community remains divided on the urgency of quantum risks. Some experts argue the issue is exaggerated, while others warn that the industry may have far less time than previously thought. A developer known as Hunter Beast recently cautioned that breakthroughs in IBM’s quantum experiments suggest the worst-case scenario could arrive within three years.

The bitcoin strategy of El Salvador continues to draw criticism from international institutions. The IMF, which approved a $3.5 billion loan to the country, insists that no new bitcoin purchases have been made this year and that the government is merely reshuffling its reserves. The ONBTC disputes this claim, maintaining that fresh purchases are still taking place despite pressure to scale back its cryptocurrency policies.

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Businesses absorb Bitcoin at four times the mining rate

Private and public businesses are acquiring Bitcoin nearly four times faster than miners are producing new coins, according to financial services firm River.

Companies, including publicly traded treasuries and private businesses, purchased an average of 1,755 BTC daily in 2025, with ETFs adding 1,430 BTC daily. Governments also joined in, buying about 39 BTC per day.

In contrast, miners produced just 450 BTC daily, raising fears of a potential supply crunch.

In the second quarter of 2025 alone, treasury companies acquired 159,107 BTC, bringing business holdings to around 1.3 million BTC. Michael Saylor’s firm Strategy leads with a corporate reserve of 632,457 BTC, making it the largest known holder.

Strategy says aggressive buying does not affect short-term prices, as most transactions are handled off-exchange through OTC markets. Analysts, however, continue to speculate that dwindling exchange reserves could become a powerful bullish force.

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ESMA highlights risks of tokenised equity products

A top European regulator has warned that tokenised stocks could mislead investors and undermine confidence in financial markets. Natasha Cazenave of ESMA said many tokenised stocks, like voting or dividends, lack shareholder rights.

Unlike traditional equities, tokenised stocks are typically issued through intermediaries and merely track share prices. Cazenave cautioned that retail investors may wrongly believe they own company shares, exposing them to a risk of misunderstanding.

Her warning follows the expansion of tokenised stock services on platforms like Robinhood and Kraken.

The World Federation of Exchanges recently echoed these concerns, urging regulators to strengthen oversight. Without intervention, the group warned that tokenised products could threaten market integrity and heighten investor risks.

Although advocates say tokenisation could cut costs and widen access, Cazenave noted most projects remain small, illiquid, and far from delivering promised efficiency. Regulators, she added, remain focused on balancing innovation with investor protection.

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Historic Bitcoin event set for November in San Salvador

El Salvador will host the world’s first state-sponsored Bitcoin conference, Bitcoin Histórico, on 12–13 November 2025 in San Salvador’s historic centre. The two-day event, organised by the National Bitcoin Office, will focus on money, culture, and crypto innovation, with early bird tickets available in Bitcoin or fiat.

Centro Histórico will be transformed into a hub for discussions, workshops, and cultural exchange. Keynote addresses at the National Palace will be broadcast to Plaza Gerardo Barrios, with additional sessions held at the National Library and National Theatre.

Speakers include billionaire Ricardo Salinas, author Jeff Booth, Bitcoin advocates Max Keiser and Stacy Herbert, Lightning Network developer Jack Mallers, and industry figures Pierre Rochard, Jimmy Song, Darin Feinstein, and Lina Seiche.

El Salvador’s government, holding 6,220 BTC, recently amended the constitution to extend presidential terms, allowing President Nayib Bukele another term.

The conference will address regulation, infrastructure, power use, financial inclusion, price volatility, and public understanding, guiding developing nations on using cryptocurrency.

The announcement coincides with a BTC recovery, trading above $109,175 following last week’s dip. Institutional demand remains strong, with Japanese company Metaplanet adding 1,009 BTC, while US spot ETFs recorded $440 million weekly inflows.

Anticipation of a Fed rate cut may further support Bitcoin and other risk assets.

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