digital assets

Japan’s FSA aims to classify crypto as financial assets

Japan’s Financial Services Agency (FSA) is preparing to introduce a major regulatory shift by classifying cryptocurrencies as financial assets. The plan includes bringing digital assets under insider trading laws.

The changes will align cryptocurrencies with regulations for stocks and other traditional financial instruments. The FSA is currently working on amending the Financial Instruments and Exchange Act to implement these changes.

The proposed amendment may be submitted to the parliament of Japan as early as next year. It reflects a broader global trend of increasing regulatory oversight for digital assets.

The US Commodity Futures Trading Commission (CFTC) has taken similar steps. It recently announced that digital asset derivatives will be regulated like other financial products. The FDIC allows banks to engage in crypto transactions without prior approval if they manage risks effectively.

The Office of the Comptroller of the Currency (OCC) has issued guidance for banks on cryptocurrency integration. Institutions must implement appropriate risk management measures in their operations.

FDIC Acting Chairman Travis Hill called it a shift toward a more secure crypto environment. The developments highlight a growing global recognition of digital assets and the need for comprehensive regulatory frameworks.

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FDIC permits banks to engage in crypto without prior approval

The Federal Deposit Insurance Corporation (FDIC) has introduced new guidance, allowing FDIC-supervised institutions to engage in crypto-related activities without prior approval. It reverses the restrictions that previously limited banks’ involvement with crypto firms.

The updated guidance, outlined in Financial Institution Letter (FIL-7-2025), rescinds a 2022 directive. The previous directive required banks to notify the FDIC before engaging in digital asset activities.

The policy change follows the release of FDIC documents. These documents revealed efforts by the FDIC to pressure banks into severing ties with crypto businesses.

Acting FDIC Chairman Travis Hill welcomed the shift, stating it represents a break from past practices. He added that this new approach would allow banks to engage with crypto and blockchain activities. However, they must manage associated risks effectively.

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Pakistan prepares to legalise cryptocurrency trading

Pakistan is set to legalise cryptocurrency trading, joining a growing list of nations embracing digital assets. According to Bilal bin Saqib, CEO of the Pakistan Crypto Council, a regulatory framework is in development to provide clarity on crypto-related activities.

The country’s shift highlights the rapid evolution of the cryptocurrency sector. Once associated with illicit activities, various nations are now exploring digital assets as reserves.

Pakistan’s interest in crypto reflects its ambition to attract foreign investment, leveraging its young, tech-savvy workforce. Saqib emphasised that Pakistan, with 60% of its population under 30, is well-positioned to become a Web3 hub.

With a projected population of 511 million by 2100, Pakistan ranks among the most populous countries. The nation already has 15 to 20 million cryptocurrency users, signalling strong domestic interest.

Saqib, recently appointed as the finance minister’s chief advisor for digital asset management, is leading efforts to integrate crypto and artificial intelligence into government operations.

Inspired by Donald Trump’s push to prioritise cryptocurrency in the US, Pakistan aims to follow suit. Saqib noted that as Trump advances a national crypto strategy, other countries will adopt similar approaches to remain competitive.

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Minnesota pushes Bitcoin bill to modernise state investments

Minnesota has taken a significant step towards embracing digital assets with a newly introduced Bitcoin bill.

The Minnesota Bitcoin Act (SF2661), presented by Senator Jeremy Miller, seeks to modernise the state’s financial system and position it as a leader in the cryptocurrency space.

The proposed legislation would permit the Minnesota State Board of Investment to allocate state funds to Bitcoin and other digital assets, treating them similarly to stocks and bonds.

Additionally, state employees would have the option to include cryptocurrencies in their retirement plans, expanding their investment choices.

Under the bill’s provisions, residents could also pay state taxes and fees using Bitcoin. Furthermore, tax incentives would allow certain cryptocurrency gains to be deducted from taxable income, potentially encouraging further adoption of digital assets in the state.

Minnesota joins a growing number of US states considering cryptocurrency-related policies. Texas recently introduced a bill to invest $250 million in Bitcoin, while Senator Cynthia Lummis proposed expanding the US government’s Bitcoin holdings through an updated Strategic Bitcoin Reserve Act.

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Singapore and Vietnam strengthen ties with digital asset agreement

Singapore and Vietnam have signed an agreement to enhance cooperation on financial market regulation and digital asset oversight.

The Monetary Authority of Singapore and Vietnam’s State Securities Commission will exchange expertise on supervisory practices, anti-money laundering measures, and counter-terrorism financing as part of the deal. The move aligns with growing economic ties between the two nations.

The agreement is expected to support Vietnam in developing a more robust regulatory framework for digital assets while ensuring fair and transparent financial markets.

Singapore’s Assistant Managing Director for Capital Markets, Lim Tuang Lee, highlighted the importance of cross-border financial connectivity, reinforcing both countries’ commitment to market stability.

Vietnam’s SSC Chairperson Vu Thi Chan Phuong described the partnership as a significant milestone in bilateral cooperation.

The signing took place during an official visit to Singapore, attended by Singapore Prime Minister Lawrence Wong and Vietnam’s General Secretary To Lam. The collaboration reflects a shared vision for stronger financial oversight and deeper regional integration.

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Kraken about to boost UK crypto services

Kraken has secured an Electronic Money Institution licence from the UK’s Financial Conduct Authority, allowing it to issue electronic money and offer faster deposits and withdrawals for British customers.

The move strengthens Kraken’s ability to partner with traditional financial institutions and expand its crypto services across the UK.

Bivu Das, Kraken’s UK General Manager, highlighted the growing demand for crypto-based financial services, stating that the UK is on the verge of mass adoption.

Recent research from the FCA shows that 12% of UK adults now hold crypto, with trading volumes in sterling continuing to rise.

The approval follows Kraken’s recent regulatory success in the EU, where it gained permission to offer regulated derivatives.

With compliance secured in both the UK and Europe, Kraken is positioning itself as a bridge between crypto and traditional finance, with plans to launch new products in the coming months.

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Trump-backed World Liberty buys $20m worth of crypto before summit

World Liberty Financial, a decentralized finance (DeFi) project backed by the Trump family, has made a significant $20 million investment in digital assets ahead of the White House’s first-ever crypto summit on 7 March.

The purchase includes $10.1 million in Ether, $9.9 million in Wrapped Bitcoin, and $1.68 million in Movement Network’s MOVE token. The move has attracted attention due to its timing, with the summit set to explore the future of crypto policy and the potential creation of a Bitcoin reserve.

World Liberty, launched by President Trump’s family in September, aims to allow crypto holders to trade and earn interest on assets without relying on centralised intermediaries.

The project has raised some eyebrows due to a previous report alleging attempts to swap its forthcoming WLFI tokens with other projects, though the company has denied any wrongdoing, clarifying that asset reallocations are for regular business purposes.

The timing of this large acquisition has sparked curiosity, especially with discussions about establishing a US crypto reserve at the summit. Adding to the intrigue, David Sacks, the US crypto czar, criticised past sales of Bitcoin by the government, which resulted in significant losses for taxpayers.

With the summit expected to feature key figures in the crypto industry, it remains to be seen how these developments will shape US policy on digital assets in the future.

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Trump orders creation of Strategic Bitcoin Reserve

President Trump has signed an executive order to establish a Strategic Bitcoin Reserve, aiming to safeguard seized Bitcoin as a national asset.

The reserve will be funded solely through Bitcoin obtained via asset forfeiture, ensuring no financial burden on taxpayers. White House AI and Crypto Czar David Sacks estimated that the government holds around 200,000 BTC, though an official audit is yet to be conducted.

The order mandates a full inventory of the government’s digital assets and bans the sale of Bitcoin from the reserve, likening it to a ‘digital Fort Knox’.

A separate Digital Asset Stockpile will be created to store non-Bitcoin cryptocurrencies seized in legal actions, but the government will not purchase additional crypto beyond this method.

Trump’s administration has also tasked the Treasury and Commerce Departments with exploring ways to expand the Bitcoin reserve without any extra cost to taxpayers.

Sacks criticised previous government Bitcoin sales, stating they cost the country over $17 billion in lost value. By halting these sell-offs, the new policy could reduce Bitcoin’s circulating supply, potentially reinforcing its status as a strategic asset similar to gold.

While the market has yet to react, the move signals a long-term shift in US crypto policy, supporting Trump’s vision of making the country the global leader in digital assets.

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Cryptocurrency adoption surges with over 824 million people owning digital assets

A new report from venture capital firm Epoch reveals that over 824 million people globally now own some form of cryptocurrency, marking a significant surge in adoption.

Rapid growth is largely fuelled by strong price performance, increasing institutional interest, and the rise of accessible investment options such as Bitcoin ETFs. Bitcoin continues to lead the charge, with an estimated 422 to 455 million owners, or roughly 5% of the world’s population.

While cryptocurrency ownership has traditionally been dominated by younger men, the study notes a shift in demographics, with more women now entering the space.

Approximately 13% of women aged 26 to 45 report owning Bitcoin, a figure influenced by ‘ownership by association’ through spouses or partners. The shift highlights the growing legitimacy and accessibility of digital assets, especially with traditional financial institutions backing crypto ETFs.

Institutional and corporate investments are further accelerating crypto adoption. The launch of Bitcoin ETFs has provided a regulated pathway for large investors, while corporations like Microsoft and Amazon are exploring Bitcoin as a reserve asset.

The report predicts that if the top ten US companies allocated just 5% of their cash reserves to Bitcoin, it would result in a $40 billion inflow into the market.

Looking ahead, the study suggests that nation-states are also considering Bitcoin as part of their reserves. With Bitcoin’s unique characteristics, such as liquidity, scarcity, and independent custody, it could potentially surpass gold as a sovereign reserve asset in the coming decade.

The continued growth in adoption signals a promising future for cryptocurrencies, bolstered by increasing awareness and new use cases.

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Russia considers crypto trading trial for elite investors

Russia is considering an experimental cryptocurrency trading programme for top-tier investors, requiring a minimum holding of 24 million roubles ($250,000).

The Ministry of Finance and the Bank of Russia are leading discussions on the initiative, which aims to establish a regulated space for crypto trading.

Whilst the project remains in its early stages, it would allow professional investors to engage in the market under government supervision.

Currently, Russians can own crypto but cannot use it as legal tender, and there is no centralised exchange for digital assets in the country, forcing traders to rely on foreign platforms.

Despite the ban on domestic exchanges, Garantex, a Russian-based platform sanctioned by the US and the EU, remains operational.

The exchange, headquartered in Moscow, enables rouble transactions through major Russian banks, raising concerns over regulatory oversight and enforcement.

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