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The UK and the US expand cooperation on digital asset regulation, planning to establish comparable standards for stablecoins

The U.S. Department of the Treasury issued a joint statement outlining the discussions from the U.S.-UK Financial Regulatory Working Group meeting held on July 8 in London. The regulatory agencies from both sides expanded their collaboration in areas such as digital assets, stablecoins, payment modernization, AI, financial stability, capital markets, and cross-border financial cooperation. Participants included the finance departments of both countries, the Bank of England, the Federal Reserve, the UK's Financial Conduct Authority, and several U.S. financial regulatory agencies.The U.S. side introduced the implementation progress of the stablecoin GENIUS Act and the market structure for digital assets, while the UK side presented the digital strategy for wholesale financial markets. Both sides support comparable regulatory standards for stablecoins, including cross-border use, comparable treatment of similar risks, and that stablecoins used as currency should be backed by high-quality liquid assets at least on a one-to-one basis. The Federal Deposit Insurance Corporation has proposed implementation standards for the GENIUS Act, covering reserves, redemption, capital, liquidity, risk management, custody, and safekeeping.The Bank of England has released a draft rule for stablecoins that could achieve systemic scale in the UK economy, including a temporary issuance cap of £40 billion for each systemic stablecoin, unrestricted use by individuals and businesses, and reserve requirements. The Financial Regulatory Working Group is expected to hold another meeting in early 2027.

Bithumb plans to complete its IPO by 2028 and is advancing multiple reforms, including internal control and the transition to K-IFRS accounting standards

The South Korean cryptocurrency exchange Bithumb has published an update on its IPO preparation progress. Bithumb stated that it is collaborating with leading domestic accounting firms to advance the construction of its risk management system, converting accounting standards from K-GAAP to internationally accepted K-IFRS, and strengthening internal compliance and internal control processes. The company is also restructuring its business by spinning off Bithumb Asset and clarifying the responsibilities and boundaries of each business segment; at the same time, it is promoting business model diversification and liquidity asset reserves to enhance financial stability.Bithumb claims it will maintain transparent operations by regularly disclosing financial status, operational matters, and cryptocurrency asset holdings, and will collaborate with large domestic and international securities firms, law firms, and accounting firms to assess corporate value and legal risks, as well as to formulate strategies for the pre-listing review.Regarding the timeline, Bithumb plans to complete the upgrade of its internal control system and K-IFRS conversion preparations by 2026, submit the pre-listing review and undergo audits in 2027, and complete the IPO in 2028, with specific timelines potentially adjusted based on market conditions and regulatory review progress.

hot_img Visa's Q3 revenue reached 11.6 billion USD, a year-on-year increase of 14%, disclosing its stablecoin strategy and joining the OpenStandard alliance

Visa announced its third-quarter financial report for fiscal year 2026, with revenue of $11.6 billion, a year-on-year increase of 14%. Payment transaction volume, cross-border transaction volume, and processed transactions all achieved double-digit growth. In the earnings call, Visa outlined its stablecoin strategy, stating that it is actively investing in various levels of the stablecoin stack, including blockchain, issuance, wallets, infrastructure, and applications. The company announced its membership in the OpenStandard alliance, which plans to issue the OpenUSD stablecoin for global capital flow.The Visa stablecoin platform will provide partners with stablecoin settlement, on-chain wallet-as-a-service infrastructure, and exchange services between fiat and stablecoins, initially supporting OpenUSD. The platform will also integrate with Pismo to provide tokenized deposit support for financial institutions and plans to introduce third-party tokenized deposit infrastructure providers in the future. Visa views stablecoins and AI as complementary technologies, believing that "agent commerce will expand the reachable market and drive future growth." Cross-border transaction volume increased by 13% year-on-year, while processed transaction volume grew by 10%.

The FATF has released the seventh update report on the implementation of virtual asset standards, calling for the closure of regulatory gaps

According to the latest report released by the Financial Action Task Force (FATF), FATF conducted the seventh special assessment of the implementation of Recommendation 15 (R.15) across global jurisdictions. The report indicates that since the last update in 2025, countries have continued to advance in the regulation of virtual assets (VA) and virtual asset service providers (VASP), including conducting risk assessments, improving licensing and registration frameworks, implementing travel rules, and strengthening law enforcement actions.However, the report also points out that significant gaps still exist, mainly reflected in: the difficulty in effectively translating risk assessment results into mitigation measures, insufficient implementation of licensing and registration frameworks, challenges in identifying VASP activity subjects, and inadequate effectiveness of risk-based supervision and law enforcement. In terms of emerging risks, the report focuses on the following areas: the exacerbation of the "industrialization" trend of organized crime groups using virtual assets to commit fraud, the rising risk of stablecoin abuse, risks associated with non-custodial wallet peer-to-peer (P2P) transactions, offshore VASPs operating outside of regulation, and ongoing challenges in the DeFi sector. FATF calls for the public and private sectors to jointly strengthen the implementation of R.15, enhance risk mitigation capabilities, and deepen domestic, international, and public-private cooperation mechanisms.

first_img Tether USDT faces a two-year compliance countdown, with about 25% of reserves potentially not meeting standards

On the first anniversary of the signing of the GENIUS Act, the prospects of Tether USDT in the U.S. market face uncertainty. The act has a three-year compliance grace period, with about two years remaining, after which non-compliant stablecoins will not be able to trade on U.S. crypto platforms.According to Tether's latest disclosure, about 25% of USDT reserves are still allocated to assets such as precious metals, loans, and Bitcoin, which do not meet the requirements of the GENIUS Act. The act requires issuers to fully back their stablecoins with high liquidity assets such as cash and U.S. Treasury bonds. Tether CEO Ardoino promised compliance last year, and the company has launched the USAT stablecoin for the U.S. market through Anchorage Digital this year, but usage remains low.There is a divergence in the legal community regarding the compliance timeline for foreign issuers. Some lawyers believe that foreign issuers must immediately comply with freezing and seizure orders when the act takes effect (expected next January), but they have about two years to meet the remaining requirements. The policy director of Anchorage Digital stated that institutional users will transition to compliant stablecoins before the 2028 deadline. Currently, federal regulators have not finalized the implementation details of the GENIUS Act, and companies have no specific regulations to follow. Tether has not responded to CoinDesk's request for comments on compliance progress.
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