cryptocurrency

Coinbase CEO Brian Armstrong posted on the X platform that cryptocurrency has contributed to the accessibility of global financial services. Stablecoins bring the dollar on-chain, allowing anyone, anywhere to hold low-inflation currency and transfer funds around the clock at a cost of less than 1 cent; DeFi enables anyone to access credit services; tokenized stocks provide investment opportunities in the U.S. stock market for 4 billion people who cannot invest through brokers; Bitcoin offers a wealth storage tool that is not diluted by inflation. He stated that there is still more work to be done in related fields, but the progress made should not be overlooked.

In 2025, the amount of cryptocurrency theft reached $3.4 billion, with Bybit suffering a loss of $1.5 billion, accounting for 44% of the total for the year. In the first half of 2026, there were 212 related incidents, resulting in losses of approximately $1.1 billion, with about 55% involving the Lazarus-linked group. KelpDAO was attacked in April, resulting in a loss of $293 million.Stolen funds typically undergo a three-phase transfer process lasting about 45 days: the first 5 days involve exchanging through DeFi protocols and entering mixing services, followed by cross-chain bridging and flowing through trading platforms with lower KYC requirements. During the 20 to 45 days period, funds are further cashed out in batches through non-KYC platforms, instant exchangers, and over-the-counter trading networks. Once funds cross multiple blockchains, mixing services, and jurisdictions, tracking may still be possible, but the difficulty of recovery significantly increases. The recovery rate of stolen funds from Bybit is less than 5%; Tether and Circle can freeze USDT and USDC addresses, and attackers typically exchange stablecoins for Ethereum or Bitcoin within minutes after the attack.

The Cyprus Securities and Exchange Commission (CySEC) will conduct on-site inspections and off-site reviews of authorized crypto asset service providers from the second half of 2026 to the first half of 2027, with a focus on institutions providing digital asset custody services.This action is part of the 2026 joint supervisory action coordinated by the European Securities and Markets Authority (ESMA), which aims to assess areas such as institutional governance and control frameworks, key and storage management, private key security, wallet storage, and access controls.The review will also cover trading controls, monitoring and incident response, smart contract security, and third-party risk management. CySEC stated that the relevant standards are mandatory, and the institutions' compliance readiness will be used as a selection criterion for subsequent inspections.

According to CNBC, a research report published in March by the academic journal "Accounting Research Review" estimates that only 32% to 56% of cryptocurrency holders in the United States have reported their transactions to the federal government. The IRS will require brokers to send investors Form 1099-DA, detailing their total gains from digital assets, starting from the 2025 tax year. Accountants say that determining the taxes involved in digital asset transactions has historically been an extremely complex task, often much more difficult than calculating taxes for traditional financial assets like stocks and bonds.

According to Reuters, the Central Bank of Brazil announced new anti-fraud rules, under which some cryptocurrency transfers will be delayed for up to 24 hours. The new regulations will take effect next year and apply to transfers exceeding $10,000 sent to overseas virtual asset companies or self-custodied wallets, with the threshold calculated based on individual transactions or the total transfers of a customer in a single day.The Central Bank of Brazil stated that this move reflects the increasing use of virtual assets (including stablecoins) for the rapid transfer of funds obtained through financial fraud. The central bank emphasized that this measure is not a freezing of assets and will not permanently block transfers; it can also apply to other transactions that require stricter scrutiny.

The U.S. Senate has postponed the vote on the CLARITY Act until after the summer recess, increasing uncertainty about the bill's passage in the short term.The CLARITY Act had previously received bipartisan support in the House of Representatives and aims to establish a federal regulatory framework for digital assets, clarify the responsibilities of different regulatory agencies, and promote the further integration of crypto assets into the U.S. financial system.North Carolina Republican Senator Thom Tillis stated that with the vote postponed until September, the probability of the bill's final passage "may have decreased by 50%." Wyoming Republican Senator Cynthia Lummis, who is responsible for pushing the negotiations, indicated that discussions have been ongoing for nearly 11 months, the bill text has increased by about 300 pages, and it has responded to numerous amendment requests from Democrats, and it should now enter the voting phase.Currently, Democrats still oppose the existing version, with the main disagreement centered on the restrictions on government officials' interests in crypto assets. Democrats believe that the current version does not adequately limit federal officials' investments and promotion of crypto assets, nor does it require relevant personnel to fully divest from related holdings, while also seeking to grant state attorneys general stronger enforcement powers.Some Democratic and Republican lawmakers had previously pushed for the inclusion of stricter ethical oversight provisions, but negotiations are still ongoing. Democrats are particularly concerned about the connections between Trump and his family with crypto projects like World Liberty Financial.Previously, the crypto industry hoped the Senate could advance procedural voting before the summer recess to adjust political investments during the 2026 midterm elections based on legislative progress. Data shows that the crypto industry's main political action committee, Fairshake, held nearly $200 million in cash reserves at the beginning of this cycle.

According to CoinDesk, Trump Media (DJT) is gradually withdrawing from certain areas of cryptocurrency, including canceling plans to establish a publicly listed CRO token accumulation company. This plan was proposed during the peak of the digital asset reserve boom last year.Trump Media, Crypto.com, and special purpose acquisition company Yorkville Acquisition announced that the three parties have jointly terminated the Trump Media Group CRO strategic plan, citing "current market conditions and a shift in business and stakeholder priorities." The plan was originally intended to establish a publicly listed company focused on accumulating Cronos native tokens and generating additional income by staking these tokens. Trump Media spent $105 million on CRO tokens in September 2025, as part of its broader collaboration with Crypto.com, which aimed to integrate token rewards into its products. Following the announcement, the price of CRO fell by 5%. Additionally, the two companies also terminated another collaboration, under which Crypto.com was originally set to provide services for certain planned exchange-traded funds (ETFs) under Yorkville America.

The U.S. Treasury's OFAC sanctions the cryptocurrency exchanges Shelbit and Aban Tether, as well as an Iranian citizen, accusing them of assisting the Iranian Islamic Revolutionary Guard in money laundering, involving digital assets worth millions of dollars.

The Federal Security Service of the Russian Federation (FSB) conducted raids on 9 unregistered cryptocurrency trading service providers in Moscow, claiming they were suspected of transferring funds obtained from fraud abroad through cryptocurrency assets, and detained more than 20 employees at the Moscow International Business Center.The FSB stated that these exchanges converted stolen funds from Russian telephone scam victims into cryptocurrency and transferred them to accounts they referred to as Ukrainian processing parties. The operation was carried out jointly by the FSB and the Russian Ministry of Internal Affairs. The Russian Ministry of Internal Affairs has initiated a criminal investigation into large-scale fraud, which under Russian law can carry a maximum sentence of 10 years in prison. The FSB stated that it is continuing to identify victims and assess potential compensation.

According to a video released by Bitcoin Magazine on the X platform, U.S. President Trump stated that he is seeing more and more people using Bitcoin for payments, "they don't even know what cash is anymore." Trump said, "Cryptocurrency is a big deal."

The Financial Services Agency of Japan announced personnel appointments. As part of an organizational restructuring, the agency has established a new "Department of Crypto Assets and Stablecoins," specifically responsible for regulating crypto assets and stablecoins. Toshiaki Adomi has been appointed as the first section chief.Toshiaki Adomi graduated from Osaka University Faculty of Law in 2002 and then joined the Financial Services Agency. He later obtained a Master of Business Administration from the University of Birmingham in the UK and a Master of Laws from the London School of Economics. He has held positions in bank supervision and policy coordination, and from July 2025, he will serve as a councilor in the Comprehensive Policy Bureau. Until August 1, 2026, he served as the councilor overseeing postal savings and insurance supervision.

According to CoinPost, the Financial Services Agency of Japan has announced a partial revision of the "Comprehensive Supervision Guidelines for Major Banks and Others," which will unify the reporting format for cybersecurity incidents across 17 regulatory areas, including cryptocurrency exchange operators.A new "Common Format for Other Cyber Attacks and Related Incidents" has been added, which, along with the existing formats for DDoS attacks and ransomware, constitutes a three-category reporting distinction system. As a transitional measure, non-specific social infrastructure operators may continue to use the old reporting format until the end of March 2027, with the deadline for public comments set for September 7, 2026.

DefiLlama data shows that in July, hackers stole $247 million in crypto assets, making it the second highest month since 2026, only behind April's $644 million; this amount is a significant increase compared to June's $75 million and May's $60 million.Galaxy Digital stated that the Coldcard vulnerability was the largest attack event of the month, confirming three rounds of attacks involving 7,300 wallets, with at least $100 million in Bitcoin stolen; it also identified a suspected fourth round of attacks, which could bring total losses to about $130 million. The DefiLlama hacker tracker estimates that the losses related to this vulnerability amount to $115 million.Other attacks in July included a $9 million attack on the decentralized finance protocol Bonzo Lend, the theft of $2.6 million from the Cardano-based wallet SecondFi, the theft of $24 million from the Arbitrum-based perpetual trading platform AFX, and the theft of $7.5 million from the Verus Ethereum Bridge.

According to CoinPost, the Financial Services Agency of Japan and the National Police Agency recently jointly sent a letter to the Japan Virtual Currency Exchange Association (JVCEA), requesting exchanges to strengthen anti-fraud measures. This request includes 11 specific requirements, such as the need for withdrawal addresses to be registered in advance, enhanced transaction monitoring, strict verification of identification documents when opening accounts, and setting a withdrawal limit for a certain period after users deposit fiat currency or purchase crypto assets.The background of this action is the increasing prevalence of investment scams and "pig butchering" schemes on social media, where criminals frequently use crypto accounts to transfer illegal funds. The Financial Services Agency also suggested that exchanges flexibly set withdrawal limits based on customers' risk levels and transaction purposes, and that suspicious transactions should immediately result in account restrictions or freezes, while enhancing intelligence cooperation with the police. For system renovations that are difficult to implement in the short term, exchanges are allowed to proceed in phases. In addition, the Financial Services Agency has officially established the "Cryptocurrency and Stablecoin Division," responsible for related regulatory affairs.

According to Bloomberg, to advance the landmark cryptocurrency legislation "Clarity Act," bipartisan senators have proposed an ethical provision to Trump that may include a clause allowing the president to defer capital gains tax on his cryptocurrency assets. The proposal requires the president to divest from cryptocurrency-related businesses, and the relevant terms are still being negotiated between the White House and lawmakers. In June 2025, Trump reported that his family's cryptocurrency business generated over $1.4 billion in revenue, indicating that most of his income has come from digital assets benefiting from his own policies. Democratic senators have made strong ethical provisions a condition for supporting the bill, which aims to clarify the regulatory authority over the cryptocurrency industry.

The U.S. Department of Justice (DOJ) announced that Liu Zhou, the founder and principal operator of the cryptocurrency financial services company MyTrade, was recently fined $10,000 in federal court in Boston for participating in a cryptocurrency market manipulation scheme.Prosecutors stated that MyTrade provided so-called "Volume Support" services to cryptocurrency projects through its "MyTrade MM" platform, using bots to execute false trades (wash trading) across multiple cryptocurrency exchanges, artificially creating trading volume and market activity to mislead investors. According to the plea agreement, MyTrade MM has ceased providing "Volume Support" services and permanently shut down the related wash trading bots, while adding a statement on its website acknowledging that "Volume Support constitutes wash trading, which is illegal under U.S. law." The U.S. Department of Justice stated that the case was jointly pursued by the U.S. Attorney's Office and the Boston division of the Federal Bureau of Investigation (FBI).

According to CoinDesk, U.S. Senator Elizabeth Warren stated that she supports pushing for cryptocurrency-related legislation but does not support the current CLARITY Act, believing that the bill fails to adequately address key issues such as corruption, consumer protection, national security, and economic risks.Warren pointed out that the crypto industry needs a clear regulatory framework, but the regulatory plan must ensure investor rights and the safety of the financial system. She believes that the CLARITY Act is lacking in preventing conflicts of interest, protecting consumers, and reducing potential systemic risks.The CLARITY Act aims to further clarify the division of regulatory responsibilities for the U.S. digital asset market, establishing a clearer legal framework for cryptocurrency asset trading, issuance, and market participants. Supporters believe that the bill helps enhance industry certainty and promote innovation.However, some Democratic lawmakers, including Warren, have previously expressed concerns about cryptocurrency regulatory legislation, arguing that some proposals could weaken the power of regulatory agencies and create regulatory arbitrage opportunities for large crypto companies.Warren has long taken a cautious stance on crypto assets, focusing on consumer protection, financial stability, and the risks of illegal activities in the crypto market. This statement indicates that U.S. cryptocurrency regulatory legislation still faces a struggle between the two parties and different interest groups.

According to RBC, the Moscow Exchange (MOEX) in Russia is preparing to launch a digital custody platform for cryptocurrency trading (digital custodian). Sources say that the project is currently still in the development stage and is expected to go live as early as the end of 2026 to early 2027.It is reported that this digital custody platform will not be built on the Moscow Exchange itself or the National Settlement Depository (NSD) under it, but will operate as a completely new independent structure. As Russia's regulatory framework for digital currencies is expected to partially take effect from September 1, the market still lacks a clear plan for the custody and registration mechanisms of crypto assets. Various technical models are currently being discussed within the industry.One proposal is to establish multiple liquidity centers for crypto assets, where brokers can access the Moscow Exchange's digital custody platform or conduct related business through their own digital custody systems. Another proposal may involve trading platforms handling trade matching, while the storage and registration of crypto assets are completed by banks or digital custodians under brokers.Previously, several large banks in Russia, including Sberbank, VTB Bank, T-Bank, and Alfa-Bank, have expressed plans to launch digital custody services. With the Moscow Exchange entering this field, competition among traditional financial institutions is expected to intensify and may further enhance crypto asset services.