digital assets

Crypto-friendly legislation advances in California

California’s State Assembly has unanimously approved a bill that would allow government departments to accept cryptocurrency payments. Assembly Bill 1180, introduced by Avelino Valencia, passed with a 68–0 vote and will now be reviewed by the State Senate.

If enacted, the law would require the Department of Financial Protection and Innovation to establish regulations enabling crypto payments for state services. A pilot programme would run until 1 January 2031, with full implementation beginning on 1 July 2026.

The department would also be required to report on transaction volumes and any technical challenges by 2028.

The bill targets digital assets under existing law, after dropping transport-related clauses, aiming to align California with states like Florida and Colorado on crypto payments.

AB 1180 complements a separate proposal, AB 1052, which seeks to protect the private use of digital assets and enshrine the right to self-custody. The rising interest in such legislation reflects growing political and public support for cryptocurrencies across the state.

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Ripple calls for legal test on digital asset classification

Ripple has urged US regulators to define when a digital asset should no longer be considered a security. In a new letter to the SEC’s Crypto Task Force, the firm responded to questions raised by Commissioner Hester Peirce on asset classification.

The move seeks greater clarity for market participants amid increasing regulatory scrutiny.

The company referenced its 2023 legal victory, where a court ruled XRP was not inherently a security. Ripple also cited a 2022 legal paper. The paper claims most fungible tokens on secondary markets lack ongoing obligations between buyers and issuers.

It proposed a two-part test to determine when a token becomes independent from its original investment contract.

Ripple says a crypto asset stays a security only if promises remain and holders have enforceable rights. It warned against vague standards like ‘sufficient decentralisation,’ backing clearer criteria such as trading history and absence of centralised control.

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Hong Kong approves stablecoin licensing law

Hong Kong’s legislature has approved a bill introducing a licensing framework for fiat-referenced stablecoin issuers. The move provides legal clarity and aims to enhance the city’s position as a global digital asset hub.

Any issuer of stablecoins in Hong Kong or of HKD-backed stablecoins abroad must obtain a licence from the Hong Kong Monetary Authority. The law outlines standards for reserve asset management, redemption, and risk controls to protect investors and the wider public.

Officials say the legislation follows the principle of ‘same activity, same risks, same regulation’ and adopts a risk-based approach. Financial Secretary Christopher Hui stated that the measure sets a solid foundation for Hong Kong’s growing virtual asset market.

The HKMA’s sandbox programme for stablecoin issuers has already attracted three participants. The new ordinance is expected to take effect later this year.

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Pakistan sets up digital asset authority

Pakistan has formed a new body to regulate its growing digital asset market and embrace blockchain-based financial innovation. The Pakistan Digital Assets Authority (PDAA), backed by the Ministry of Finance, will license and oversee exchanges, custodians, wallets, stablecoins, and decentralised finance platforms.

Federal finance minister Muhammad Aurangzeb said the goal is not only to catch up but to lead the sector globally. PDAA will also tokenise national assets and government debt, and monetise excess electricity through regulated Bitcoin mining.

The authority aims to create a safe and investment-friendly ecosystem for blockchain startups and Web3 development.

The move follows advice from the Pakistan Crypto Council, which includes former Binance CEO Changpeng Zhao. Council CEO Bilal Bin Saqib described the strategy as a complete rewrite of Pakistan’s financial future, with a focus on financial inclusion, digital exports, and innovation.

Pakistan‘s stance on crypto has shifted rapidly. Although the government had ruled out legalising digital assets in 2023, the country ranked ninth in Chainalysis’ 2024 crypto adoption index.

With over 27 million users expected by 2025 and projected revenue of $1.6 billion, Pakistan’s digital asset sector is now seen as a key growth driver.

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Crypto assets to be treated as property in Russia

Russia’s Ministry of Justice is working on legislation that would classify crypto assets as property, enabling their confiscation during criminal investigations. The draft bill aims to tighten control over digital currencies increasingly used for illegal activities.

Deputy Justice Minister Vadim Fedorov stated that the new law would allow authorities to seize not only physical wallets but also credentials like seed phrases. Experts will assist in managing the secure handling of digital assets.

Courts may also be given the power to block transactions linked to certain wallets.

The move comes in response to a rise in crypto-related crime, particularly through darknet markets. One such platform, Kraken, has recorded a 68% surge in crypto transactions since the shutdown of Hydra in 2022.

Fedorov highlighted the challenges posed by digital currencies, citing their anonymity and lack of central control as major attractions for criminals.

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Thailand embraces digital tokens for public investment

Thailand’s Finance Ministry is preparing to launch 5 billion baht ($150 million) in digital investment tokens known as the G-Token within the next two months. The initiative is designed to raise public funds through a new blockchain-based model.

Unlike traditional bonds, the G-Token will not be classified as a debt instrument. Instead, it will form part of the country’s budget borrowing plan and allow direct public participation.

Retail investors will be able to invest small amounts, with potential returns expected to exceed standard bank deposit rates.

The G-Token is expected to comply with all Bank of Thailand regulations and may enhance activity in the secondary bond market by improving liquidity and accessibility. The initial rollout will serve as a trial, with future issuances depending on investor interest.

Thailand’s cabinet has already approved the plan, which supports broader digital asset strategies under the ruling Pheu Thai Party. With the central bank recently lowering interest rates to 1.75%, the government is offering more attractive investment alternatives.

The country is following a growing trend in Asia towards blockchain finance, influenced in part by shifting global policies.

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Coinbase expands into Canadian stablecoin market

Coinbase has invested an undisclosed amount in Canadian stablecoin issuer Stablecorp. The move aims to strengthen the local stablecoin market and make tokenised Canadian dollars more accessible.

During the Blockchain Futurist Conference in Toronto, Coinbase Canada’s Chief Executive Officer, Lucas Matheson, discussed how the exchange would support Stablecorp’s fiat-collateralised stablecoin, QCAD.

Matheson highlighted the need for a Canadian stablecoin due to the country’s lack of peer-to-peer payment systems and costly wire transfers. Stablecoins, he argued, could enable 24/7, instant, and borderless payments, which are already feasible with current technology.

However, adoption faces regulatory challenges in Canada. The country has yet to define a clear framework for fiat-backed stablecoins. Coinbase has urged the government to classify these assets as payment instruments, not securities, in line with US regulations.

Coinbase’s investment comes as Canada continues to navigate its digital asset stance under Prime Minister Mark Carney, who remains critical of cryptocurrencies.

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Ljubljana is named the world’s most crypto-friendly city

Ljubljana has been named the world’s most crypto-friendly city in the 2025 Crypto Cities Index by Multipolitan. It surpassed major financial hubs like Hong Kong, Zurich, and Singapore.

The Slovenian capital’s success lies in its strong infrastructure, forward-thinking regulations, and real-world crypto adoption. With over 150 crypto ATMs and widespread retail acceptance, the city has built a thriving environment for everyday digital asset use.

Beyond retail usage, Ljubljana benefits from a unified crypto ecosystem supported by local organisations such as the Blockchain Alliance Europe.

Homegrown platforms like Blocksquare are making global strides, including a $1 billion tokenisation partnership with Vera Capital.

These developments highlight how a smaller city can outperform global contenders with cohesive, innovative strategies.

Hong Kong and Zurich tied for second place, respectively, and were praised for their regulatory clarity and financial stability. Meanwhile, Singapore and Abu Dhabi completed the top five, driven by favourable tax policies and efforts to attract blockchain firms.

In addition, Slovenia topped the Crypto Wealth Concentration Index, with the average crypto holder owning around $240,500 in digital assets, far ahead of the UK and US.

However, Slovenia’s proposed 25% tax on personal crypto profits, set to take effect in 2026, has sparked debate. While the government projects up to €25 million in annual revenue, critics warn that the tax could deter innovation and drive talent abroad.

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US lawmaker aims to end Puerto Rico’s crypto tax haven status

New York MP Nydia Velázquez introduced the Fair Taxation of Digital Assets in Puerto Rico Act. The bill aims to require crypto investors in Puerto Rico to pay both local and federal taxes on capital gains.

Bill seeks to amend Puerto Rico’s tax laws, making income from digital assets subject to federal taxation.

Velázquez criticised the tax incentives for crypto investors. She claimed they have driven up housing costs, displaced residents, and strained the island’s economy, which has a poverty rate of nearly 40%.

Puerto Rico has been a tax haven since 2012, attracting investors, but this has cost the US government billions in lost tax revenue.

Puerto Rico’s Governor Jenniffer González-Colón proposed extending Act 60 until 2055, but with a 4% capital gains tax, far lower than the typical US rate.

It’s unclear if Velázquez’s bill will gain enough support, as both the House and Senate are expected to review crypto-related proposals soon.

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Slovenia’s crypto-friendly status faces test with new tax proposal

Slovenia’s Finance Ministry has proposed a 25% tax on crypto trading profits, aiming to bring digital assets in line with other investments. The draft law, unveiled on 17 April, targets residents who convert crypto into fiat or use it for purchases.

Crypto-to-crypto trades and transfers between self-owned wallets would remain untaxed under the proposed rules.

Finance Minister Klemen Boštjančič defended the move, describing it as a step towards fairness rather than a revenue-generating effort. He emphasised that speculative instruments like cryptocurrencies should not be excluded from taxation.

Taxpayers would be required to report transactions annually, with profits calculated by subtracting purchase costs from sale values.

Critics argue the plan could harm Slovenia’s crypto-friendly image. Opposition MP Jernej Vrtovec warned that the tax may drive innovation and young talent abroad.

If adopted, the law will take effect from 1 January 2026. Slovenia already taxes mining and staking income, while hobbyist use remains exempt.

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