offshore

Circle, the issuer of USDC, submitted a proposal to the European Commission advocating for the revision of the rules regarding overseas stablecoins in the Markets in Crypto-Assets Regulation (MiCA) and the establishment of a recognition mechanism for overseas issuers. Circle suggested that overseas stablecoin issuers should primarily be regulated by their home jurisdiction's regulatory authorities, and after obtaining equivalence recognition from relevant parties and the European Banking Authority (EBA), local licensed entities in the EU would be responsible for distribution.This mechanism also allows euro stablecoins to circulate in overseas jurisdictions. Circle also requested the removal of the requirement for electronic money token issuers to hold 30% of reserve assets in commercial banks; the proportion for "significant" electronic money tokens is 60%. The company believes that this requirement increases exposure to credit risk and counterparty risk in the banking sector.

According to a report by The Information, Tether has some funds trapped at one of its offshore banking partners, which is facing liquidation risk after asset seizures in the United States.Tether stated that the assets it holds at the bank EQIBank are limited, accounting for less than 0.034% of its total assets.

According to Caixin, on-chain perpetual contract platforms represented by Hyperliquid have quietly risen overseas for some time. The platform was founded by a former Wall Street high-frequency trading engineer, without external VC funding, relying on its self-developed dedicated L1 public chain and a full on-chain order book to stand out in the DEX track.The trigger that attracted the attention of the domestic market and regulatory authorities was the launch of popular perpetual contracts involving Chinese assets, combined with offshore derivatives such as oil contracts under the previous Iranian geopolitical conflict. While pricing diverse assets, the platform also challenges global financial regulation. Against the backdrop of the stalled progress of the Clarity Act in the United States, such offshore unlicensed derivative agreements continue to develop.

According to the Financial Times, the UK cryptocurrency industry is entering the regulatory implementation phase. Zumo founder and CEO Nick Jones stated that the Financial Conduct Authority (FCA) will open the application window for cryptocurrency asset authorization on September 30, with the new regulatory system expected to be officially implemented in October 2027.He pointed out that for a long time, regulatory uncertainty and counterparty risk have made financial institutions cautious about the UK cryptocurrency market, not due to a lack of interest in digital assets. As the regulatory path becomes clearer, traditional financial institutions such as the UK's largest retail investment platform Hargreaves Lansdown are beginning to enter the cryptocurrency market. The industry will gradually bid farewell to offshore operations, startup-style business processes, and unregulated models, and the importance of compliant infrastructure and local service providers will further increase.

According to the Financial Times, an increasing number of high-net-worth individuals relying on cryptocurrencies like Bitcoin to accumulate wealth are being rejected by traditional trust companies when seeking to establish offshore trusts for tax and wealth succession arrangements. Trust institutions are primarily concerned about issues related to the verification of fund sources, potential money laundering risks, extreme asset price volatility, and the loss of private keys.The report states that some trust institutions specializing in serving digital asset clients are taking on such business through on-chain analysis and enhanced compliance reviews, but most mainstream trust institutions remain cautious, fearing future legal and reputational liabilities due to the sources of crypto assets or significant devaluation.

The Financial Intelligence Unit of India (FIU-IND) issued non-compliance notices to 15 offshore virtual digital asset service providers under Article 13 of the Anti-Money Laundering Act, including Weex, Blofin, Rezorex, Bitunix, DigiFinex, Toobit, XT.com, Latoken, WOO X, Pionex, ChangeNow, SimpleSwap, Fixedfloat, WhiteBIT, and Guardarian. These platforms are accused of providing services to Indian users without registering with FIU-IND.Since March 2023, India has included cryptocurrency platforms in the same anti-money laundering regulatory framework as banks, requiring any platform serving Indian customers, regardless of whether they have an office in India, to complete registration and fulfill user verification, record-keeping, and suspicious transaction reporting obligations. FIU-IND also warned the public that cryptocurrency products and NFTs are unregulated and carry extremely high risks, and related trading losses may not be eligible for regulatory relief.This action comes amid reports of Indian users converting stablecoins like USDT into gift cards through platforms in Sweden, Germany, and Singapore to purchase groceries, fuel, and gold in India. Previously, FIU-IND had issued notices to nine major offshore exchanges, including Binance, Kraken, and KuCoin, in December 2023, after which Binance completed its registration and paid a fine of 1.882 billion rupees.

Galaxy Research Research Director Alex Thorn tweeted that among a Coldcard attack victim holding nearly 30 BTC, 17 BTC were split and converted to ETH via THORChain, and then deposited into the offshore betting platform Duel.com.Upon tracking, this portion of funds corresponds to approximately 229.72 ETH (worth about $445,000). The victim and the research team have emailed all known addresses of Duel.com, providing all transaction and deposit information and requesting to freeze the funds, but the response stated that the victim should have the police contact them, even though the platform's anti-money laundering policy claims it implements KYC and complies with relevant laws.Thorn stated that this response is unacceptable, and most of the Western regions have passed midnight, meaning the police report cannot be advanced until at least Monday; he believes that if the platform refuses to freeze the funds after receiving notification that they originated from an ongoing cyber attack, it constitutes complicity in theft.Since Duel.com's X account has been banned, Thorn turned to @ several individuals associated with the platform, urging them to push the platform to take the correct actions, and stated that if the funds are not frozen, the platform will face significant legal action.

The People's Bank of China, the National Development and Reform Commission, the Financial Regulatory Administration, the China Securities Regulatory Commission, the State Administration of Foreign Exchange, and the Shanghai Municipal People's Government issued the "Offshore Financial Action Plan for the Development of Shanghai International Financial Center," which points out that relying on the international operation center of the digital renminbi, it is necessary to build and operate the cross-border, offshore, and blockchain infrastructure of the digital renminbi under the premise of safety and controllability, steadily promote the interconnection with overseas financial infrastructure, and steadily advance the application and scenario expansion of the digital renminbi in offshore business.

Coinbase CEO Brian Armstrong tweeted, "For years, cryptocurrency trading has been shifting overseas due to the lack of clear regulatory rules in the U.S., and while perpetual contracts are favored by traders, they are banned in the U.S. Frankly, about half of the perpetual contract trading volume comes from U.S. users who use offshore products via VPNs, and KYC checks are lax. Other companies have set up offshore entities to find ways to evade regulation. After dozens of trips to Washington, D.C., and numerous communications from our policy team, we finally received approval to allow U.S. users to access true global perpetual contracts."Previously, the CFTC's Market Participants Division issued a clarification letter and a no-action letter to registered futures commission merchant Coinbase Financial Markets (CFM), allowing it to offer cryptocurrency options and perpetual contracts listed on the affiliated offshore exchange Deribit FZE to U.S. users. The letter confirmed that the aforementioned perpetual contracts can be classified as foreign futures under CFTC Regulation 30.1.Additionally, under specific conditions, the CFTC will not recommend enforcement action regarding CFM transferring digital commodities held by customers and paying stablecoins to its offshore brokerage affiliates for margin purposes, and that affiliate may exercise reuse rights over the aforementioned customer assets.

According to Gate market data, the offshore RMB against the US dollar has broken through the 6.8 mark, marking the first breakthrough since February 2023.

EDXM International, a cryptocurrency exchange supported by Citadel Securities, announced plans to launch a perpetual contract product linked to the Korean won in April, directly entering the world's largest offshore Korean won derivatives market: the non-deliverable forward (NDF) market, which has an average daily trading volume of approximately $27 billion.The product is based on the offshore Korean won stablecoin KRWQ, issued by Brainpower Labs, registered in the Cayman Islands, in October 2025. Traders can bet on the KRWQ/USDC exchange rate by going long or short, with all transactions settled in USDC, avoiding the actual delivery of Korean won and circumventing South Korea's capital control restrictions. EDXM CEO Kai Kono stated that costs are 50% to 75% lower than traditional NDFs and support instant settlement.The South Korean Financial Services Commission did not comment on this. Some believe that if the product attracts significant institutional funds, the long-stalled digital asset legislative process in South Korea may face greater pressure.

According to Jinshi News, the offshore RMB has fallen below the 6.9 mark against the US dollar.

According to Cointelegraph, the Financial Action Task Force (FATF), a global anti-money laundering regulatory body, has released a new report indicating that offshore virtual asset service providers (oVASP) pose risks of money laundering, sanctions evasion, and other illegal financial activities.The report points out that some offshore cryptocurrency companies exploit differences in regulatory and supervisory coverage, making it difficult for authorities to effectively monitor transactions and enforce anti-money laundering (AML) and counter-terrorist financing regulations. As many offshore crypto businesses operate across multiple jurisdictions, such as differing locations for company registration, infrastructure, and customers, regulators find it challenging to clarify regulatory responsibilities, which also limits international cooperation.FATF recommends that countries require offshore companies providing services to register or obtain licenses, even if they operate abroad, and strengthen cross-border regulatory and law enforcement cooperation. Additionally, FATF has previously warned that peer-to-peer stablecoin transactions and non-custodial wallets may undermine AML regulation, necessitating national-level risk assessments and the establishment of protective mechanisms.

According to Jinshi News, the offshore RMB against the US dollar has fallen below 6.92, with a daily decline of 0.3%.