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White House pushes fintech integration into US banking framework

US President Donald Trump has signed an executive order directing federal financial regulators to review rules and supervisory practices that may be limiting fintech and digital asset firms’ access to traditional financial services and payment infrastructure.

The order says federal regulators should identify regulations, guidance, supervisory practices and application processes that could be updated to support innovation, competition and fintech partnerships with federally regulated financial institutions.

Agencies covered by the review include the Securities and Exchange Commission, the Commodity Futures Trading Commission, the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency, the National Credit Union Administration and the Consumer Financial Protection Bureau.

Within 90 days, regulators must review existing rules and processes affecting fintech firms, particularly small and emerging companies. The review will examine barriers to partnerships with banks, credit unions, broker-dealers, investment advisers and other regulated institutions, as well as application processes for bank charters, deposit insurance, licences, registrations and authorisations.

The order also asks the Federal Reserve Board to evaluate whether uninsured depository institutions and non-bank financial companies, including firms involved in digital assets and other novel financial activities, could receive broader access to Reserve Bank payment accounts and payment services. The review will also cover companies participating directly in real-time payment networks.

The Federal Reserve is asked to assess legal authority, financial stability risks, legal obstacles and possible options for expanding such access where permitted by law. It must also examine whether the 12 regional Federal Reserve Banks apply consistent standards when granting or denying access to Reserve Bank accounts and payment services.

If the Federal Reserve concludes that existing law allows direct access for covered firms, the order asks it to establish transparent application procedures and make decisions on complete applications within 90 days.

The order comes amid continued pressure from fintech and digital asset companies seeking clearer pathways into core financial infrastructure. The White House said the policy aims to reduce unnecessary barriers to entry while balancing innovation with safety and soundness, consumer and investor protection, market integrity and financial stability.

Why does it matter?

The order could reshape how fintech and digital asset firms interact with the US banking system, but only if regulators conclude that broader access is legally and prudentially viable. Its significance lies in putting bank partnerships, licensing processes and Federal Reserve payment access under formal review, potentially opening new pathways for non-bank financial companies while raising questions about oversight, financial stability and the boundaries between banks and fintech firms.

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Cross-border crypto transfers in South Korea face stricter compliance requirements

South Korea has advanced a major regulatory shift by passing a bill that extends the Foreign Exchange Transactions Act to cover virtual asset service providers. The decision introduces mandatory registration for firms facilitating cross-border crypto transactions, including exchanges and wallet operators.

The new framework establishes formal oversight of virtual asset transfers between South Korea and other jurisdictions. Authorities will gain enhanced monitoring powers over transaction flows, with a focus on improving transparency and reducing risks linked to illicit financial activity and capital movement.

Major exchanges and service providers are expected to face increased compliance requirements, including detailed reporting obligations and system upgrades. Failure to comply could result in penalties or revocation of registration, signalling a stronger enforcement environment.

The measure aligns South Korea with global regulatory developments such as the EU’s MiCA framework and FATF recommendations. By integrating crypto oversight into existing forex law, regulators aim to accelerate implementation while reinforcing market trust and institutional oversight.

Why does it matter?

South Korea’s move reflects a broader global shift toward integrating crypto into traditional financial regulatory systems, reducing the space for unmonitored cross-border capital flows.

By embedding virtual assets within existing forex law, the country strengthens financial oversight while signalling how digital assets are increasingly being treated as part of mainstream monetary infrastructure rather than a parallel system.

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UK moves closer to full crypto regime with FCA consultation

The UK Financial Conduct Authority (FCA) has launched a consultation on guidance for the country’s upcoming crypto regulatory regime, marking another step towards a full framework expected to take effect in October 2027.

The consultation covers key areas including stablecoins, trading platforms, custody and staking, as regulators seek to shape how firms will operate under the new system.

The FCA said the guidance is intended to help firms understand how future requirements will apply and to support the development of a ‘competitive and sustainable’ crypto sector.

Industry feedback is being invited until June 2026, with companies able to begin applying for authorisation from September 2026, ahead of the regime’s full implementation.

Further consultations have already been issued since late 2025, covering market abuse, prudential standards, and operational requirements for crypto firms.

Under the proposed system, all crypto service providers will need authorisation under the Financial Services and Markets Act, with existing registrations not automatically carrying over.

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IMF warns of rising risks in tokenised financial systems

The International Monetary Fund has warned that central banks could struggle to keep pace as tokenisation reshapes financial systems. Converting traditional assets into blockchain-based tokens is seen as a structural shift, improving efficiency while introducing new systemic risks.

According to the IMF, faster settlement and automation may reduce risks but also shorten reaction times during market stress. Instant transactions could trigger rapid margin calls and capital movements, limiting the ability of regulators to intervene effectively in emerging crises.

Tobias Adrian, Financial Counsellor of the International Monetary Fund and Head of their Monetary and Capital Markets Department, emphasised that tokenisation is transforming how financial products are issued, traded, and managed.

Concerns include unpredictable capital flows, faster currency shifts, and pressure on monetary sovereignty. Authorities are encouraged to replace legacy regulatory frameworks with more flexible systems capable of monitoring liquidity and leverage in real time.

Large institutions such as BlackRock, JPMorgan Chase, and Nasdaq are piloting tokenised markets, with strong growth potential projected. Estimates range from a few trillion dollars to as much as 16 trillion dollars by 2030, highlighting both the scale of opportunity and uncertainty surrounding adoption.

Tokenisation reflects a broader shift in how value is created, exchanged, and trusted in the digital age, gradually moving finance towards more programmable and interconnected systems.

Its importance lies in how it may redefine the relationship between institutions, markets, and users, shaping not only efficiency and access but also the future balance between innovation, governance, and stability.

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New licensing rules for crypto platforms in Australia

Australia is advancing plans to regulate digital asset platforms under its financial services framework. The Senate committee recommended passing the Digital Assets Framework Bill 2025, bringing Australia closer to licensing crypto exchanges and tokenisation platforms.

Industry groups have raised concerns about definitions such as ‘digital token’ and ‘factual control.’ Broad wording could inadvertently cover infrastructure providers, including multi-party wallet systems, potentially classifying them as financial service operators.

Ripple Labs emphasised the need for precise language to avoid unintended regulation.

The committee supported the Treasury’s approach while planning to refine technical details through future regulations. Coinbase welcomed the progress but noted ongoing banking challenges for crypto firms.

The bill now proceeds to the Senate for debate and a final vote, which could reshape digital asset operations in Australia.

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Over 85 companies join global crypto partner program

Mastercard has introduced the Crypto Partner Program, a global initiative connecting more than 85 crypto-native companies, payments providers, and financial institutions. The program aims to create a forum for collaboration that aligns innovation in digital assets with traditional payment systems.

Enterprise use cases such as cross-border remittances, payouts, and settlements are growing, underscoring the practical potential of on-chain payments. Participants will collaborate with Mastercard to design products that combine the speed and programmability of digital assets with existing card rails and global commerce.

The initiative builds on Mastercard’s long-standing approach to blockchain and digital assets, including Start Path and the Engage platform, which provide opportunities for collaboration, innovation, and growth.

The program focuses on turning technical innovation into scalable, compliant solutions that can operate across markets and everyday commerce.

Partners in the Crypto Partner Program include Binance, Circle, Crypto.com, Solana, Ripple, PayPal, and over 80 other industry leaders, demonstrating the growing ecosystem of companies working together to shape the future of digital payments.

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A new bill aims to formalise crypto taxation in Turkey

Turkey’s ruling AK Party has introduced a bill in parliament to formalise cryptocurrency taxation and revise key tax and spending rules. The legislation links crypto taxation to Turkey’s Capital Markets Law and sets a clear framework for digital assets.

Under the proposal, regulated crypto platforms would withhold a 10% tax on gains quarterly, applicable to both individuals and companies, residents and non-residents. Transaction service providers are subject to a 0.03% tax, and investors on unlicensed platforms must declare gains annually.

The president would have the authority to adjust the withholding tax between 0% and 20%, depending on factors such as token type, holding period, issuer, or wallet type. Exemptions include VAT-free crypto deliveries and corporate tax changes for foundation university hospitals from 2027.

If approved, the crypto taxation provisions would take effect two months after publication, signalling Turkey’s first formal steps to regulate digital assets and integrate them into the national tax system.

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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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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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Crypto market sheds $500 billion in sell-off

Roughly $500 billion has been wiped from the cryptocurrency market over the past week as a Bitcoin-led sell-off accelerated. Total digital asset capitalisation fell by about $467.6 billion since 29 January, reflecting broad risk-off sentiment across global markets.

Bitcoin briefly dropped to a 15-month low of $72,877 before rebounding 1.31% to $76,681.72. The asset remains down 13% year-to-date and nearly 39% below its October peak above $126,000, underscoring sustained selling pressure.

Macro forces are driving the downturn. Escalating US-Iran tensions pushed capital toward traditional safe havens, while currency shifts, interest rate differentials, and tightening liquidity conditions weighed on leverage and stablecoin flows.

Analysts say the decline reflects positioning resets and broader market nervousness rather than a single catalyst.

Near-term outlook remains cautious. Liquidation pressure persists, though key structural supports continue to hold. Technical analysts identify $73,000 as critical downside support, while reclaiming the $77,500–78,000 range would be needed to restore bullish momentum.

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