Cryptocurrencies Archives | Page 4 of 167 | Digital Watch Observatory

Central bank in Russia cracks down on crypto-enabled pyramid schemes

Russia’s central bank reports that two-thirds of pyramid scheme operators use crypto, with funds sent to over 4,600 fraudster-controlled wallets in 2025. Authorities identified 7,087 online scams last year, most of which used crypto and money mules to collect illicit funds.

Officials highlighted that these schemes typically operate without physical offices, engaging victims via social media, chat apps, and phone calls. Nearly 1,500 firms offered fake crypto investments, and 84% of scammers used cryptocurrency to raise funds, up from 77% in 2024.

The central bank has blocked 21,500 web pages and social media posts linked to fraudulent operators.

The government is fast-tracking regulations, warning that only licensed firms can offer investments to Russian retail investors. Authorities plan to continue monitoring sophisticated online schemes and enhance public awareness to combat crypto-enabled fraud.

Crypto markets remain active, with Bitcoin trading at $66,566, up 3.8%, and Ethereum at $1,990, up more than 6% in the past 24 hours.

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Finance ministry in South Korea pledges reform for public crypto management

South Korea’s finance minister, Koo Yun-cheol, has pledged urgent reforms to how government agencies manage digital assets following high-profile failures in state custody.

Recent incidents revealed that police and tax authorities mishandled seized cryptocurrency, highlighting weaknesses in oversight and security practices. Authorities will review current management methods and implement measures to prevent future losses.

Operational risks around securing crypto in public institutions have become increasingly apparent. A notable case involved Seoul police in Gangnam losing access to 22 BTC, worth around $1.4 million, after failing to retain private keys and allowing a third-party firm to manage the assets.

Prosecutors are now investigating potential bribery linked to the case.

The government says it holds only digital assets acquired through lawful enforcement, such as seizures for unpaid taxes or criminal cases. The reforms aim to strengthen security, improve operational controls, and restore confidence in the public sector’s handling of crypto amid growing scrutiny.

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Financial crime risks are reshaped by the rise of autonomous AI agents

Autonomous AI agents are transforming finance by executing transactions independently and speeding up workflows in digital assets and programmable finance. Software can manage wallets and move funds across blockchains in seconds, narrowing detection windows.

AI agents don’t create new crimes but increase speed and complexity, making accountability essential. Responsibility rests with developers, operators, and beneficiaries, with investigators tracing control, configuration, and economic benefit to determine liability.

Weak oversight or misconfigured rules can lead to significant compliance and enforcement consequences.

Investigations face new challenges as autonomous agents operate across multiple blockchains, decentralised exchanges, and global jurisdictions.

Real-time analytics and automated tracing are essential to link transactions to accountable actors before funds move. Governance architecture and monitoring systems increasingly serve as evidence in regulatory or criminal actions.

Institutions and law enforcement are using AI monitoring, anomaly detection, and automated containment systems. Autonomous AI impacts sanctions and national security, emphasising the need for human oversight alongside automation.

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Binance targets Greece as EU gateway

Efforts to secure a foothold in Europe have led Binance to select Greece as its entry point for operating under the EU’s Markets in Crypto-Assets framework. A licence would let the exchange offer services across the European Union when the rules take effect in July 2026.

Strategic considerations outweigh speed in the decision. Co-chief executive Richard Teng cited workforce quality, safety, and long-term growth potential as decisive factors, even though several larger EU economies have already issued more licences.

Regulatory attention continues to shape the company’s trajectory. Founder Changpeng Zhao remains a shareholder, as leadership says reforms aim to make the platform one of the most regulated exchanges globally.

Expansion plans unfold amid turbulent market conditions. Bitcoin’s prices remain well below last year’s highs, dampening retail sentiment, yet institutional participation has remained resilient, supporting liquidity amid volatility.

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ESMA sets guidance for crypto perpetuals and CFDs

The European Securities and Markets Authority (ESMA) has clarified that many crypto-perpetual contracts, including those for Bitcoin and Ether, are likely to be classified as contracts for difference (CFDs).

Due to their leverage, complexity, and risk, these products should target a narrow audience, with distribution strategies aligned accordingly.

The announcement came as Kraken launched perpetual futures for ten tokenised assets, including major indices, gold, and top tech and crypto stocks. ESMA warned that mass marketing or promotions targeting inexperienced investors are inappropriate under its guidance.

Firms must ensure that derivatives falling within the CFD category comply with product intervention requirements. Requirements include leverage limits, risk warnings, margin close-outs, negative balance protection, and a ban on incentives or benefits.

Non-advised services must include an appropriateness assessment to protect investors from unsuitable offerings.

ESMA also emphasised the importance of identifying and managing conflicts of interest arising from these products. The statement seeks to ensure firms market and distribute leveraged crypto products responsibly.

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Crypto market embraces AI and structural growth in 2026

The cryptocurrency market in 2026 is showing a shift from hype-driven cycles to structured growth and strategic maturity. Institutional strategies dominate, retail investors take a smaller role, and geopolitical uncertainty affects market sentiment.

Analysts warn that the era of speculative memecoins and whitepaper millionaires is giving way to projects prioritising revenue, sustainability, and systemic utility.

Market leaders note a widening gap between top cryptocurrencies like Bitcoin and Ethereum and smaller altcoins. Major assets gain from liquidity and institutional adoption, while many tokens face higher risk as traditional exchange listings pull capital from on-chain markets.

Investors are advised to focus on infrastructure, liquidity, and scalable systems rather than short-term trends.

AI is emerging as a defining force. Experts highlight the growing use of AI agents to trade, allocate capital, and manage risk autonomously, with blockchain providing transparency and auditability.

The convergence of AI and crypto is expected to shape next-generation financial products, driving adoption beyond speculation and into practical, revenue-generating applications.

Strategic advice for 2026 emphasises diversification, system-oriented thinking, and long-term fundamentals. Investors should diversify across crypto, traditional, and offshore assets, using automated tools to reduce emotional decisions amid ongoing volatility.

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OCC approval moves Crypto.com closer to US trust bank

Crypto.com has secured conditional approval from the Office of the Comptroller of the Currency to move ahead with plans to launch a federally regulated national trust bank in the United States.

Approval marks a notable step in the firm’s regulatory roadmap. It also signals continued alignment with US supervisory expectations as the digital asset sector seeks deeper integration with traditional financial infrastructure.

Plans focus on establishing Foris Dax National Trust Bank. The entity is designed to provide a consolidated suite of services, including digital asset custody, staking across multiple blockchain ecosystems such as Cronos, and trade settlement.

Full approval would place the entity under direct federal oversight, positioning it to serve institutional clients that require qualified custodians operating within a clear regulatory perimeter.

Leadership described the decision as recognition of its compliance and risk management framework. Executives said the structure would offer institutions a single regulated gateway to digital asset infrastructure and strengthen market confidence.

Existing operations at Crypto.com Custody Trust Company in New Hampshire will continue without interruption. Final authorisation will determine the timeline for launching the national trust bank and expanding federally supervised US services.

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Deutsche Bank expands digital asset plans

The German banking giant has applied for a digital asset custody licence from BaFin, marking a significant step in its expansion into cryptocurrency services. The move positions Deutsche Bank to offer safekeeping solutions for clients seeking exposure to digital assets.

Plans form part of a broader strategy to build a dedicated digital assets division, according to David Lynne, a commercial banking executive. DWS Group’s initiatives highlight rising institutional interest in crypto partnerships in Germany.

Previous experimentation includes a tokenised investment platform developed in Singapore with Memento Blockchain, enabling access to digital asset funds through fiat on-ramps.

Activity mirrors wider domestic momentum, as Deutsche WertpapierService Bank has already launched crypto infrastructure linking traditional and digital accounts.

Regulatory clarity and growing client demand appear to be key drivers, with Deutsche Bank signalling a cautious yet deliberate approach to integrating cryptocurrencies into its mainstream banking services.

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Strict ban on crypto references introduced by OpenClaw

OpenClaw has introduced a firm community rule prohibiting any reference to Bitcoin or other cryptocurrencies on its Discord server, according to its creator, Peter Steinberger.

Enforcement drew attention after a user was removed for mentioning Bitcoin block height as a timing method in a benchmark, with the developer later offering to restore access.

The policy follows a rebrand scare when scammers hijacked old accounts to promote a fake Solana token. Market value spiked then plunged after Steinberger denied involvement, warning that no official token would be issued.

Rapid growth of the open-source project, which has attracted a large developer base within weeks of launch, contrasts with wider industry momentum linking AI agents and digital assets.

Leaders such as Jeremy Allaire of Circle argue stablecoins could become default payment rails for autonomous software, while Coinbase is already rolling out infrastructure enabling agents to transact on-chain.

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Lithuania selects Swiss firm Procivis for national eIDAS 2.0 wallet sandbox

Swiss firm Procivis has secured a contract to deliver Lithuania’s end-to-end Digital Identity Wallet sandbox, supporting the country’s preparations under eIDAS 2.0. The project will establish a national testbed for digital ID use cases and interoperability across the European Union.

Selected by Lithuania’s digitalisation agency, Procivis will build a platform for public authorities and relying parties to test secure digital wallet use cases. The sandbox will validate readiness ahead of the EU’s 2027 digital identity wallet deadline.

The updated eIDAS 2.0 technical framework sets out how wallets will store and share trusted digital credentials and electronic identification. Governments and private organisations will be able to integrate services into the wallets, streamlining authentication, onboarding, and cross-border access.

Across Lithuania and the EU, testbeds and large-scale pilots have been central to turning regulatory requirements into interoperable infrastructure. Lithuania’s sandbox will also support activities under the EU’s LSP Aptitude consortium, which is testing cross-sector digital identity solutions.

Procivis said the collaboration aims to accelerate practical validation while ensuring compliance with European standards on security, interoperability, and data protection. The company stated that supporting a timely, budget-aligned implementation of eIDAS 2.0 remains central to its mission.

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