Encryption

New EU regulation to track crypto transfers and ban privacy coins

The European Union is set to introduce new measures under its Anti-Money Laundering Regulation (AMLR) to track cryptocurrency transfers. The EU aims to gather data on both senders and recipients of funds, expanding transparency within crypto-asset service providers.

From 1 July 2027, cryptocurrency exchanges and custodial services will be prohibited from dealing with anonymous wallets and privacy coins. The regulation also mandates ‘intrusive checks’ for self-hosted wallets, requiring verification for transactions over €1,000.

However, this move has sparked concerns within the cryptocurrency industry, with critics arguing that it could limit privacy and push the sector into less transparent markets.

Monero developer Riccardo Spagni and other industry figures fear the regulations could drive privacy-focused firms to relocate to jurisdictions that support privacy rights.

They warn that the EU’s approach could hinder innovation and push parts of the crypto economy into the black market.

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SEC official says crypto ETF process was mishandled

The head of the US SEC Crypto Task Force, Hester Peirce, criticised the way the agency handled the approval process for spot Bitcoin ETFs. She described the process as ‘terribly mismanaged.’

Speaking on Bloomberg’s Trillions podcast, she said the delays had alienated crypto innovators. She urged the industry to remain patient as the regulator works through litigation and policy issues.

Peirce, known as ‘Crypto Mum’ for her pro-crypto stance, noted that many ETF applications remain in limbo, with the SEC currently reviewing 72 filings.

Recent postponements suggest decisions may be pushed to the October deadlines, as the agency weighs legal challenges and broader implications for the financial system.

Despite ongoing discussions and industry roundtables, Peirce reminded listeners that SEC approval does not mean the product is a good investment.

She stressed that it’s up to individuals to decide whether such products suit their needs, as approval only confirms legal compliance—not quality.

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US Senate blocks stablecoin regulation bill

The US Senate voted against advancing the GENIUS Act on Thursday, which sought to regulate stablecoins. The vote, which was 48-49, failed to secure the 60 votes needed to begin formal debate, signalling a setback for the crypto industry’s regulatory hopes.

Bipartisan negotiations had progressed for months, with the Senate Banking Committee previously approving the bill.

However, late opposition from Senate Democrats, who raised concerns about safeguards against illicit finance and foreign stablecoin issuers, derailed momentum.

Some lawmakers also pointed to how Donald Trump has connections to crypto as a complicating factor.

Despite the setback, key figures remain hopeful. Senator Mark Warner stated that the bill isn’t finished yet and still requires revisions to protect Americans.

On the other hand, Republican leaders, such as Senator Cynthia Lummis, warned that delays could hinder US crypto innovation. The debate may continue next week, as lawmakers push for further revisions.

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Meta plans new blockchain-based payment system

Meta is assessing the use of stablecoins to facilitate cross-border payments. The company is particularly focused on low-cost transfers for digital content producers on platforms such as Instagram.

The move reflects a renewed interest in integrating blockchain technology following the company’s unsuccessful Diem initiative.

Reportedly in early talks with several cryptocurrency infrastructure providers, the firm has yet to commit to a specific stablecoin issuer.

However, the project is reportedly aimed at enabling low-value international payments for creators and freelancers operating across multiple markets.

Leading the effort is Ginger Baker, Meta’s vice president of product. She previously held senior roles at fintech firm Plaid and currently serves on the board of the Stellar Development Foundation.

The initiative aligns with broader financial sector trends, as companies like Visa, Fidelity, and Bank of America explore the use of stablecoins in regulated digital payment systems.

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Indian stock exchanges curb foreign access amid cybersecurity concerns

India’s two largest stock exchanges, the National Stock Exchange (NSE) and BSE Ltd, have temporarily restricted overseas access to their websites amid rising concerns over cyber threats. The move does not affect foreign investors’ ability to trade on Indian markets.

Sources familiar with the matter confirmed the decision followed a joint meeting between the exchanges, although no recent direct attack has been specified.

Despite the restrictions, market operations remain fully functional, with officials emphasising that the measures are purely preventive.

The precautionary step comes during heightened regional tensions between India and Pakistan, though no link to the geopolitical situation has been confirmed. The NSE has yet to comment publicly on the situation.

A BSE spokesperson noted that the exchanges are monitoring cyber risks both domestically and internationally and that website access is now granted selectively to protect users and infrastructure.

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LockBit ransomware Bitcoin addresses exposed

Nearly 60,000 Bitcoin addresses linked to LockBit’s ransomware operations have been exposed following a major breach of the group’s dark web affiliate panel.

The leak, which included a MySQL database dump, was shared publicly online and could assist blockchain analysts in tracing LockBit’s financial activity instead of leaving such transactions untracked.

Despite the scale of the breach, no private keys were leaked. A LockBit representative reportedly confirmed the incident in a message, stating that no sensitive access data was compromised.

However, the exposed database included 20 tables, such as one labelled ‘builds’ that contained details about ransomware created by affiliates and their targeted companies.

Another table, ‘chats,’ revealed over 4,400 messages from negotiations between victims and LockBit operators, offering a rare glimpse into the inner workings of ransomware extortion tactics.

Analysts believe the hack may be connected to a separate breach of the Everest ransomware site, as both featured identical messages, hinting at a possible link.

The incident has again underscored the central role of cryptocurrency in the ransomware economy. Each victim is typically given a unique address for payments, making tracking difficult.

Instead of remaining hidden, these addresses now give law enforcement and blockchain experts a chance to trace payments and potentially link them to previously unidentified actors.

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Xapo Bank introduces Bitcoin-backed loans for long-term holders

Xapo Bank’s CEO, Seamus Rocca, sees Bitcoin-backed loans as the next logical step as investor confidence grows. As Bitcoin’s price hovers between $95,000 and $97,000, more investors are choosing to borrow against their BTC instead of selling it.

Xapo Bank’s lending product, launched in March, allows clients to borrow up to $1 million using Bitcoin as collateral.

The demand for such loans is fuelled by a shift in market sentiment, with investors moving from short-term speculation to a longer-term outlook.

Rocca highlighted that institutional adoption, including Bitcoin ETFs, is contributing to this change in attitude. The bank offers flexible loan-to-value (LTV) ratios, allowing borrowers to access liquidity while keeping their BTC.

With conservative LTV levels, Bitcoin prices would need to drop significantly for borrowers to face liquidation, making this an appealing option for long-term holders.

The product helps investors manage emergency expenses without selling their Bitcoin. It’s enabling them to continue benefiting from potential price appreciation while maintaining liquidity.

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Bitcoin scholarships launched at Lomond School

Lomond School has introduced the Satoshi Scholarships, offering 42 scholarships for students passionate about economics and innovation. These cover the prestigious International Baccalaureate (IB) programme, including 21 two-year day and 21 two-year boarding scholarships.

The initiative is backed by economist Dr. Saifedean Ammous, who will help develop a new Austrian economics curriculum. The curriculum will focus on sound money, decentralised finance, and the ethics of financial liberty.

Dr. Ammous expressed his enthusiasm for the project, emphasising the importance of teaching future generations about sound economics. In addition, students will engage with Bitcoin mining hardware and gain practical knowledge of monetary systems.

Lomond School is now seeking 43 founding benefactors to support the scholarships and help shape the next generation of economic thinkers. Interested parties can learn more by contacting the school directly.

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USD1 stablecoin becomes seventh-largest in just two months

The USD1 stablecoin, backed by Donald Trump’s World Liberty Financial (WLFI), has quickly become the seventh-largest stablecoin.

Launched just two months ago, it has grown from a market cap of $128 million to over $2 billion. The surge was boosted by Eric Trump’s announcement that MGX would use USD1 for a $2 billion investment in Binance.

Most of USD1’s issuance is on Binance’s BNB Chain, accounting for over 99% of its supply. A smaller portion is on Ethereum.

In late April, the coin’s market cap spiked 1,540%, growing from $128 million to $2.1 billion. The rapid rise led centralised exchanges, including HTX, to list USD1, with zero-fee withdrawals on the BEP-20 network.

Reports suggest that around 90% of USD1 investors are from outside the US, particularly Europe, Asia, and Latin America.

The coin’s growth aligns with Trump’s pro-stablecoin agenda, outlined in his January executive order to strengthen US leadership in digital financial technologies.

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US banks allowed to manage crypto on customers’ behalf

US banks are now allowed to manage crypto assets on behalf of their customers. The US Office of the Comptroller of the Currency (OCC) confirmed that banks can buy, sell, and hold crypto in custody. They can also outsource certain services, such as custody and execution, to third parties.

Acting Comptroller Rodney Hood stated that financial institutions could also provide tax reporting, record-keeping, and sub-custody services. These services must comply with legal and risk management guidelines.

The decision marks a shift towards integrating crypto into traditional banking systems, with over 50 million Americans now holding digital assets.

Industry experts have welcomed the OCC’s move. Katherine Kirkpatrick Bos of StarkWare said it signals a shift in the OCC’s stance, while Coinbase’s Faryar Shirzad praised the regulatory clarity.

The change comes amid the Trump administration’s more crypto-friendly approach, which includes reversing previous restrictions on banks’ crypto activities.

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