regulators

Recently, there have been reports that the first batch of stablecoin licenses in Hong Kong will be granted to HSBC, Standard Chartered, and the local virtual asset trading platform OSL. We have inquired through the channels of HSBC and Standard Chartered's subsidiaries in China for verification, but neither has provided a positive response. However, an insider from one of the foreign banks revealed: "We are still waiting for formal news from the regulators."

According to Cointelegraph, the New Zealand Financial Markets Authority (FMA) has officially ruled that the stablecoin NZDD, which is pegged to the New Zealand dollar, does not qualify as a financial product.The FMA stated that the NZDD stablecoin does not constitute a debt security in economic substance, as its holders do not receive any profits, interest, or other returns, nor does it possess investment characteristics. This ruling stems from the financial technology sandbox pilot project that the FMA is advancing.

According to Cointelegraph, the Australian cryptocurrency exchange BTC Markets has informed the country's securities regulator of its intention to apply for a market license to offer regulated tokenized real-world assets (RWA).BTC Markets CEO Lucas Dobbins stated on Monday, "Our plan is to obtain the licensed infrastructure that allows specific types of tokenized assets to be offered and used by the public." He added that his vision is for the market to operate continuously in a world where tokenized stocks, bonds, and real-world assets will be traded alongside cryptocurrencies, with settlements occurring instantly.

According to Bloomberg, the UK Gambling Commission is planning to assess the feasibility of allowing gamblers to use cryptocurrencies for betting payments, a move that aligns with the UK's push for a regulatory framework for digital assets.The report states that the Financial Conduct Authority is expected to finalize regulations related to crypto assets this year, with plans for them to come into effect by the end of 2027. UK betting companies may be able to apply for crypto business licenses under the new regulatory system in the future.Tim Miller, Director of Research and Policy at the UK Gambling Commission, stated that the relevant exploration will be incorporated into the broader regulatory process for digital assets.

There are rumors that Chinese regulators are reviewing Jane Street's trading behavior in the Chinese ETF market. However, a person close to Jane Street stated, "We are unaware of these rumors and have no reason to believe they are true; these rumors should not be associated with Jane Street."This week, Jane Street and its co-founders, along with two employees, were accused of insider trading, fraud, and market manipulation, actions that have been linked to the accelerated collapse of the 2022 TerraUSD (UST) stablecoin and its sister token Luna, resulting in a loss of $40 billion in value.Founded in 1999, Jane Street is one of the largest proprietary quantitative trading firms in the world, with net trading revenues exceeding $20 billion in 2024 and net profits nearing $13 billion. Unlike hedge funds, Jane Street does not accept external client funds, resulting in significantly lower disclosure obligations compared to traditional asset management firms, a structure that has kept it shrouded in mystery for a long time.

According to Cointelegraph, South Korean banks are calling on regulators to restrict the issuance of won-denominated stablecoins to licensed commercial banks, citing concerns over money laundering risks and financial stability.

According to CoinDesk, the DeFi Education Fund (DEF) based in Washington, USA, stated in response to the UK Financial Conduct Authority (FCA) regarding the consultation paper on the regulation of crypto asset activities that regulatory obligations should only apply to entities that have "unilateral control" over user assets or transactions, and should not be considered intermediaries solely for developing or participating in decentralized protocols.DEF argues that "control" should be linked to specific operational powers such as the ability to unilaterally initiate or block transactions, modify protocol parameters, or exclude users, and warns that directly applying the requirements for prudent regulation, reporting, and platform access of centralized trading platforms, as well as complete anti-money laundering obligations, to automated, non-custodial DeFi protocols will be structurally mismatched.

According to Yonhap News Agency, the Financial Supervisory Service of South Korea has upgraded the investigation level regarding the large-scale Bitcoin mispayment incident at Bithumb exchange from on-site inspection to formal audit, and has initiated a comprehensive investigation on the same day.The Financial Supervisory Service stated that the nature of this incident is extremely serious, and additional personnel have been dispatched to conduct high-intensity audits, focusing on whether the exchange violated the "actual holding obligation," whether there are issues with "phantom currencies," and internal control loopholes. The investigation will primarily focus on the reasons behind Bithumb's actual holding of approximately 46,000 Bitcoins while mistakenly paying out 620,000 Bitcoins, as well as the asset custody and account consistency under its "ledger trading" model.Financial authorities pointed out that this incident could undermine the overall trust in the virtual asset market and will verify whether the mistakenly paid Bitcoins have actual structural risks associated with large-scale withdrawals. Additionally, the internal approval loophole that allows a single operator to complete large transfers at Bithumb will also be closely examined.

The Nevada Gaming Control Board has filed a civil enforcement lawsuit in the First Judicial District Court of Nevada, accusing Coinbase of providing unlicensed sports event contract betting services through its Coinbase Financial Markets division. The documents show that the regulator is also requesting the court to issue a temporary restraining order and a preliminary injunction, requiring Coinbase to cease "operating a derivatives exchange and prediction market related to sports betting" in Nevada.Mike Dreitzer, Chairman of the Nevada Gaming Control Board, stated that this move aims to fulfill regulatory responsibilities and protect the order of the local gaming industry as well as the interests of residents in the state. This lawsuit comes less than a week after Coinbase announced a partnership with Kalshi to launch prediction market services in all 50 states. Although Kalshi is regulated at the federal level by the Commodity Futures Trading Commission, state-level regulators can still challenge related businesses legally.Additionally, Nevada has recently taken similar action against Polymarket, with the court previously approving a temporary restraining order prohibiting it from offering event-based contract betting to residents in the state. The related cases are also seen as potentially challenging the federal regulatory authority over prediction markets.

According to Cointelegraph, the Financial Supervisory Service of South Korea has upgraded its virtual asset trading analysis intelligence system VISTA and introduced automated detection algorithms to combat improper cryptocurrency trading.The algorithm employs a sliding window grid search technique to automatically identify potential price manipulation ranges, reducing reliance on manual investigations. Performance testing has shown that the system has successfully detected all known manipulation periods and previously hard-to-detect abnormal ranges.The Financial Supervisory Service has allocated a budget of 170 million Korean won (approximately $116,000) for AI performance upgrades in 2026. Future plans include automatically identifying networks of colluding trading accounts, analyzing abnormal trading patterns of thousands of cryptocurrency assets, and tracking the sources of manipulated funds.

According to Cointelegraph, South Korean financial regulators are assessing whether to end the long-standing practice of "one exchange, one bank" for cryptocurrency exchanges.The review is being coordinated by the Financial Services Commission (FSC) and the Fair Trade Commission, aiming to evaluate whether the current mechanism exacerbates market concentration. The report notes that "one exchange, one bank" is not enshrined in law but has gradually formed under anti-money laundering (AML) and customer due diligence requirements.Related research suggests that this model may limit access to banking services for small and medium-sized exchanges, thereby consolidating the advantages of leading platforms. This discussion is also related to South Korea's advancement of the second phase of legislation for the "Basic Law on Digital Assets." The bill plans to allow the issuance of Korean won stablecoins, but there are still disagreements regarding the regulatory framework and approval mechanisms, with the submission date postponed to 2026.

According to Cointelegraph, cryptocurrency lending company Nexo Capital will pay a $500,000 fine to the California Department of Financial Protection and Innovation. The regulator accused the company of issuing thousands of loans to California residents without holding a valid license and failing to properly assess borrowers' ability to repay.The regulator stated that from July 2018 to November 2022, Nexo issued at least 5,456 consumer and business loans to California residents without a valid loan license, and typically did not assess borrowers' repayment ability, existing debts, or credit history before lending. Nexo must transfer all funds of California customers to its U.S. affiliate Nexo Financial LLC, which holds a California loan license, within 150 days.

According to a report by Reuters, the French market regulator warned on Tuesday that as the transition period for the EU's new crypto regulation MiCA is set to end on June 30 this year, nearly one-third of about 90 registered crypto companies in France that have not obtained a MiCA license have yet to inform the regulator of their plans. Stephane Pontoizeau, Executive Director of the AMF's Market Intermediaries and Infrastructure Supervision Department, stated that as of now, 30% of the companies have applied for a license, 40% have decided not to apply, while the remaining 30% have neither informed of their plans nor responded to inquiries from the regulator, which is a cause for concern.According to the European Securities and Markets Authority (ESMA), companies that have not obtained MiCA authorization must implement an "orderly wind-down plan" before the end of the transition period. Previously, companies like Coinbase, Circle, and Revolut have already obtained MiCA licenses.

The South Korean financial regulatory authorities are evaluating the introduction of a "preventive freeze" mechanism, allowing for the temporary freezing of relevant accounts before suspected price manipulation in cryptocurrency trading has been cashed out.The Financial Services Commission (FSC) is studying a trading suspension system, aiming to align cryptocurrency enforcement standards with those of the stock market to address the current issues of needing to apply for court orders and the delays in handling. This discussion comes as South Korea advances to the second phase of cryptocurrency legislation, which may focus on stablecoins and market manipulation. If implemented, regulation will shift from post-event accountability to real-time intervention, increasing scrutiny on high-frequency, automated trading and short-term abnormal fluctuations, significantly tightening the market enforcement environment.

According to market news, U.S. federal banking regulators have stated that banks can legally engage in the buying, selling, and custody of cryptocurrencies.

According to Cointelegraph, the Indian Competition Commission has announced the approval of Coinbase's acquisition of a minority stake in DCX Global Limited (the company behind the crypto platform CoinDCX).Subsequently, Coinbase's Chief Legal Officer Paul Grewal confirmed the news in a post on X. Neither the regulatory announcement nor Grewal's post mentioned the percentage of equity Coinbase holds in the crypto exchange. Previously, in October, there was an announcement stating that Coinbase planned to invest in CoinDCX, which would value CoinDCX at approximately $2.4 billion post-investment. At that time, Coinbase reported that as of July, CoinDCX's annual revenue was around $141 million, but denied earlier reports about its plans to fully acquire the company for $1 billion.

U.S. Senators have introduced the "Strengthening the Enforcement Framework for Cryptocurrency (SAFE Crypto)" Act, which aims to establish a federal working group to identify, track, and combat cryptocurrency fraud. The working group will bring together experts from the Treasury Department, law enforcement agencies, financial regulators, and the private sector.The working group will focus on studying current trends in digital asset scams and identifying effective methods to prevent such crimes. It will also provide local law enforcement with more robust investigative tools and raise public awareness of common cryptocurrency scams.

According to Cointelegraph, Australian securities regulators have finalized a series of exemptions that make it easier for businesses to distribute stablecoins and tokenized assets.The Australian Securities and Investments Commission (ASIC) announced these new measures on Tuesday, aimed at promoting innovation and growth in the digital assets and payments sector. ASIC stated that it is "granting class exemptions" to intermediaries engaged in certain secondary distribution activities of stablecoins and tokenized assets. This means that businesses no longer need separate, and often costly, licenses to act as intermediaries in these markets, and they can now use "pooled accounts" under properly documented conditions. The new exemptions further expand the previous broad exemptions for stablecoins, removing the requirement for intermediaries to hold a separate Australian Financial Services (AFS) license when providing services related to stablecoins or tokenized assets.

According to The Block, the prediction market platform Kalshi has received permission from Connecticut regulators to temporarily halt enforcement actions. Previously, the Connecticut Department of Consumer Protection issued a cease-and-desist order to Kalshi, Robinhood, and Crypto.com on December 2, accusing these companies of providing unlicensed sports-related betting services.Subsequently, Kalshi filed a lawsuit against Connecticut authorities a day later, claiming that its market (which allows users to trade on the outcomes of future events) is a derivative regulated by the Commodity Futures Trading Commission. The company also sought a temporary restraining order to prevent Connecticut from taking any actions that could interfere with its operations.Judge Oliver's order provides Kalshi with temporary protection while the case continues to be heard. According to the schedule set on Monday, Connecticut regulators must respond to Kalshi's complaint by January 9, 2026, and the company must submit supplemental supporting arguments by January 30. Oral arguments are expected to be held in mid-February.

HSBC pointed out in its latest research report that U.S. regulators are engaged in intense debates over how the "tokenized U.S. stock market" should be incorporated into the regulatory framework, with significant differences in regulatory attitudes between traditional financial institutions and crypto companies.Tokenization transforms real assets such as stocks, bonds, and real estate into digital tokens that can circulate on-chain, and how to define and regulate these trading infrastructures has become the core of the controversy. The report states that during the SEC Investor Advisory Committee meeting, there was a clear divide on the question of whether "on-chain stock trading should be regulated in the same way as traditional exchanges." Wall Street institutions, including Citadel Securities, are calling for stricter regulation of DeFi and have submitted a 13-page document to the SEC, arguing that most decentralized trading protocols essentially meet the definition of "exchanges" and should be subject to the same regulatory requirements; the crypto industry, represented by Coinbase's global head of regulatory policy, advocates for differentiated rules for decentralized trading models.SEC Chairman Paul Atkins emphasized the need to find a balance between compliance and innovation, while Commissioner Caroline Crenshaw warned of the investor risks that tokenized stocks may bring. HSBC believes that regulators are unlikely to allow on-chain U.S. stocks aimed at the U.S. market to have significantly lower regulatory requirements than traditional exchanges.The report notes that the SEC may adopt a "regulatory sandbox" approach, allowing tokenized stock platforms to pilot under strict conditions to test risk boundaries. In the long term, policy pressure may drive tokenized stock trading towards a licensed, fully regulated on-chain environment. HSBC stated that despite differing positions, TradFi, DeFi, and regulators have reached a consensus on one point: the scale of the tokenized market is rapidly expanding, and the competition over regulatory authority and models indicates its importance is continuously rising.