regulatory

In two proof-of-concept projects completed by the Ethereum infrastructure team Nethermind and UBS, both parties demonstrated that regulated banks and asset management institutions can achieve strong compliance control on public, permissionless networks without modifying the Ethereum protocol itself.In this project on the Ethereum Sepolia testnet, the team built and validated a node that can impose custom compliance rules on external transactions, as well as a component that routes approved transaction bundles to specific block builders, without involving real fund transactions throughout the process.

According to Jinshi reports, the Economic Committee of the European Parliament has passed the regulatory proposal for the digital euro.

On Monday, the Bank of England released the final policy statement and draft rules for systemic stablecoins, easing several previously proposed regulations. The bank removed the original plan to set a limit on individual holdings and instead established a temporary issuance cap for each type of stablecoin, with an initial limit set at £40 billion (approximately $52.8 million). Additionally, the Bank of England allowed issuers to hold up to 70% of reserve assets in short-term UK government bonds, higher than the previously proposed 60%, while the remaining portion must be deposited in interest-free accounts at the central bank. The related consultation will continue until September 22, and the rules are expected to be finalized by the end of 2026, with regulated stablecoin operations set to begin in the UK in 2027.

According to Digital Asset, the Financial Services Commission of South Korea plans to expand the scope of the regulatory sandbox to include the Virtual Asset User Protection Act. This move is part of a broader plan aimed at preparing the future of the financial industry by expanding services to reflect changes in the financial environment and market demands.At a recent event hosted by Financial Services Commission Chairman Lee Ik-yeon, the Commission stated that it will continue to explore and incorporate laws related to emerging fields and services, such as the Internet Banking Act and the Virtual Asset User Protection Act, into the regulatory sandbox.

According to CoinDesk, the Malta Financial Services Authority (MFSA) has released a discussion paper exploring how decentralized finance (DeFi) can be incorporated into the EU MiCA framework. The MFSA pointed out that while MiCA exempts "fully decentralized" crypto services, many DeFi projects still retain centralized features such as admin keys, governance centralization, and protocol upgrade permissions.The regulatory body is seeking public opinion on whether decentralization should be viewed as a "spectrum" rather than a binary concept, and discussing whether to establish a standardized framework to determine if protocols fall outside the scope of MiCA regulation. Additionally, the document proposes potential legal structures such as DAOs and segregated cell companies, and examines automated compliance mechanisms like custodial agents. The public consultation on this discussion paper is open until July 10.

According to the Shanghai Securities Journal, Wu Qing, the Chairman of the China Securities Regulatory Commission, stated at the 2026 Lujiazui Forum that the next step will be to timely release guidelines for the standardized development of artificial intelligence in the capital market.Wu Qing pointed out that the CSRC will strictly investigate and deal with illegal activities such as using technology to ride on trends, hype concepts, and even manipulate the market and insider trading; at the same time, it will legally and strictly crack down on illegal stock recommendations using artificial intelligence, as well as industry chaos such as spreading rumors and illegal trading using artificial intelligence.

At the 2026 Lujiazui Forum, Ding Xiangqun, Director of the National Financial Regulatory Administration, stated that efforts should be made to strengthen regulation, eliminate regulatory gaps and blind spots, and ensure full coverage without exceptions. Ding Xiangqun emphasized the need to focus on preventing and resolving risks, firmly maintaining the bottom line of preventing systemic financial risks. Efforts should be made to "reduce existing amounts and control new amounts." Effectively and orderly handle risks of small and medium-sized financial institutions, and support the resolution of real estate and local government debt risks. Adhere to the principle of "preventing problems before they occur" and focus on the front end, improving the early correction mechanism for financial risks with hard constraints to achieve early identification, early warning, early exposure, and early handling. Focus on "regulating the legal and more on regulating the illegal." Strengthen central-local collaboration and inter-departmental coordination, striving to eliminate regulatory gaps and blind spots, ensuring full coverage without exceptions. Taking the overall battle against illegal financial activities as a starting point, maintain a high-pressure crackdown, strengthen systematic governance across the entire chain, and strive to protect the "purses" of the people.

According to The Block, a bipartisan group of lawmakers led by U.S. Senator Cynthia Lummis has written to the Treasury Department, requesting the maintenance of states' authority to regulate stablecoins under the GENIUS Act. The act allows stablecoin issuers with a market capitalization of no more than $10 billion to be regulated by states, provided that state-level rules are "substantially similar" to federal rules. The Treasury Department released proposed rules in April, suggesting broad principles for determining whether state systems are "substantially similar," but did not clarify the timeline and standards for state regulation. The senators stated in their letter that the lack of clarity "creates uncertainty for the states," and therefore requested the Treasury Department to issue guidance that clarifies the application, review, and certification processes for state systems. The New York State Department of Financial Services proposed formal rules last week to align its stablecoin framework with the GENIUS Act.

A bipartisan group of senators led by Cynthia Lummis has written to U.S. Treasury Secretary Scott Bessent, requesting that the Treasury maintain states' regulatory authority over certain stablecoin issuers when formulating implementation rules for the GENIUS stablecoin bill. The GENIUS Act was signed into law last year, establishing a federal regulatory framework for stablecoins in the United States, requiring that stablecoins be fully backed by U.S. dollars or similar high-liquidity assets, and mandating that issuers with a market capitalization exceeding $50 billion undergo annual audits, while also setting rules for offshore issuance.The bill allows stablecoin issuers with a market capitalization of no more than $10 billion to be regulated at the state level, as long as the relevant state regulatory systems are "substantially similar" to federal requirements. The senators believe that the rules previously proposed by the Treasury do not clearly outline the timeline and standards for state regulatory system applications, reviews, and certifications, creating uncertainty for the states. The letter points out that there are significant differences in legislative cycles across states, with some states even adopting a biennial legislative cycle, thus requiring a flexible and continuously open certification mechanism to ensure that states can apply for certification when demand arises, rather than being constrained by timing mismatches that limit innovation and competition.

According to La Política Online, the Mexican fintech industry is seeking to promote the Fintech 2 bill reform under the leadership of the new head of the National Banking and Securities Commission (CNBV), Ángel Cabrera. The industry believes that the Fintech Law passed in 2018 can no longer keep up with the pace of innovation, leading to bottlenecks in the approval process, and there is an urgent need for clearer and more flexible regulatory standards. Key demands include accelerating the authorization process, implementing tiered risk management, conditional authorizations, and comprehensive regulations for open financial models.Regarding crypto assets, Mexican financial authorities still maintain restrictions on such tools, despite the continuous growth of the global crypto market. The industry is seeking progress in the regulation of crypto assets, hoping to establish clearer rules. In addition, the industry also hopes to promote a hybrid model that allows the same platform to integrate services such as payments, credit, and insurance. Experts point out that about 85% of transactions in Mexico are still conducted in cash, and a large portion of the population is not covered by the traditional financial system; updating regulations will help accelerate financial inclusion.

According to Crowdfund Insider, the Chairperson of the Hong Kong Securities and Futures Commission (SFC), Laura Liang, stated at the Caixin Summer Summit that Hong Kong will continue to expand its digital asset regulatory framework and promote the application of artificial intelligence (AI) in the financial services sector to consolidate its position as an international financial center.Laura Liang pointed out that regulatory agencies will improve the institutional framework around areas such as digital asset trading, custody, investment consulting, and asset management, while adhering to the regulatory principle of "same business, same risks, same rules," achieving a balance between innovation and investor protection.She stated that as the application of AI in the financial industry accelerates, regulatory focus will include potential risks such as model reliability, algorithm bias, data privacy, and cybersecurity, emphasizing that financial institutions need to strengthen risk management during the innovation process.In addition, the Hong Kong Securities and Futures Commission and relevant regulatory agencies have expanded the regulatory sandbox mechanism, allowing financial institutions to test generative AI applications in a controlled environment to promote technological implementation and compliant development. Analysts believe that Hong Kong is further enhancing the openness and standardization of its financial markets through a dual regulatory framework for digital assets and AI, while also increasing its competitiveness in the global capital markets.

According to CoinDesk, U.S. Senator Cynthia Lummis stated that establishing clear regulatory rules for the cryptocurrency industry "is not about helping the industry, but about protecting every American who wishes to participate in this economic activity."She emphasized that a clear and predictable regulatory framework helps ordinary investors to participate in the cryptocurrency market in compliance and manage risks, rather than just serving industry institutions or large companies.

According to the Wall Street Journal, the U.S. government's export controls and access restrictions on Anthropic's models Fable 5 / Mythos 5 partly stem from Amazon's cybersecurity research and AWS CEO Andy Jassy's communications with the White House.It is reported that the research submitted by Amazon indicated that through a series of prompt tests, researchers were able to induce Fable 5 to output sensitive information that could potentially be used for cyberattacks, raising security concerns. Subsequently, Andy Jassy reported the relevant findings to the U.S. government, prompting the White House to take further restrictive measures, including banning foreign users from accessing the model.At the same time, former U.S. Department of Commerce official Kate Koren revealed that the White House's existing policy stance on Anthropic may also have influenced this decision-making judgment, as there are differences between Anthropic and the White House on AI safety boundary issues, including the refusal to use the model for large-scale surveillance or lethal autonomous weapon systems. Although both sides had eased tensions and expanded cooperation earlier this year, this incident may once again exacerbate the strained relationship.

The China Securities Regulatory Commission announced that it has approved the initial public offering registration of Changxin Technology Group Co., Ltd.

According to Decrypt, the IMF stated in its latest annual assessment of Nepal that despite Nepal's comprehensive ban on cryptocurrency trading and mining since 2021, the inflow of cryptocurrencies and stablecoins grew rapidly between 2019 and 2024, exceeding 13% of GDP at one point in 2021 and rebounding to about 8% in 2024, with cross-border flows accounting for about 5% of GDP.The IMF recommended that Nepal establish a cryptocurrency regulatory framework in accordance with international standards, strengthen monitoring of stablecoins and unpegged crypto assets to prevent circumvention of capital controls and large-scale deposit outflows, and urged it to complete the FATF action plan and exit the gray list.

According to Cointelegraph, South Korean police recently raided the cryptocurrency exchange Bithumb to investigate independent lawmaker Kim Byung-gi for allegedly using his influence to secure a job for his son. It is reported that Kim's son joined Bithumb in January 2025 and worked for about six months. The police are investigating whether there was any external pressure or special treatment during his hiring process.Additionally, the case also involves Dunamu, the operator of South Korea's largest cryptocurrency exchange Upbit, with the investigation scope expanding from simple recruitment issues to potential power rent-seeking and interest transfer. Investigators pointed out that while serving as a member of the South Korean National Assembly's Administrative Committee, Kim Byung-gi had repeatedly questioned Dunamu during meetings, raising suspicions about whether he was trying to benefit the company where his son worked.It is understood that the police had previously questioned executives from multiple cryptocurrency companies and had conducted searches at Bithumb's headquarters and Bithumb Financial Tower to gather evidence. Kim Byung-gi himself is under investigation for 13 charges, including employment arrangements, bribery for nominations, and requests related to university transfers, and he stated that he believes he will ultimately be able to prove his innocence.It is worth noting that Bithumb has recently faced ongoing regulatory pressure. In March of this year, South Korea's financial regulatory agency imposed a fine of approximately $24.5 million on Bithumb for KYC and anti-money laundering (AML) violations and issued a six-month partial business suspension order. However, a South Korean court temporarily suspended the enforcement of the penalty at the end of April, and the relevant legal procedures are still ongoing.

According to an official statement from the U.S. SEC, Jamie Selway, the Director of the Division of Trading and Markets at the Securities and Exchange Commission (SEC), stated at the Piper Sandler Global Exchanges and Fintech Conference that Chairman Paul Atkins has instructed the division to advance the framework for the listing and trading of security tokens, with the guiding principle of "promoting innovation without creating regulatory arbitrage."

According to Bloomberg, the U.S. government is betting that stablecoins issued by private entities like Tether, pegged to the U.S. dollar, will expand to about $3 trillion in the coming years to support the international dominance of the dollar and absorb more demand for U.S. Treasury bonds.However, the article points out that the current mainstream stablecoin issuers are concentrated in Tether, which has questionable compliance and anti-money laundering practices in its registered location. In the event of a run or smart contract failure, this could impact the large amount of U.S. Treasury assets it holds and disrupt global payments and settlements. The European Central Bank is promoting the use of central bank digital currencies and "tokenized euros" to support atomic settlements, in order to avoid being locked into U.S. private dollar tokens on critical financial infrastructure.