Government & Regulation

Fed Chair Jerome Powell is set to deliver a key speech today, with markets anticipating a rate cut. We discuss the expectations, the impact of the Fed’s new policy, and the potential successor to Powell—developments that could affect the crypto market.

Two South Korean police officers, including a chief, have been arrested for accepting bribes from an illegal crypto exchange involved in a €175 million money laundering scheme, highlighting growing concerns about corruption in the digital asset sector.

Africa is launching the ADAPT initiative, a digital trade platform using stablecoins to streamline cross-border payments and boost annual trade by $70 billion, starting with Kenya in 2026.

Kevin Hassett, a key figure in Donald Trump’s pro-crypto administration and a proponent of lower interest rates, has emerged as the frontrunner to replace Jerome Powell as Federal Reserve Chair. The appointment comes amid signs of internal stress at the Fed and has significant implications for the crypto market.

A Spanish political party, Sumar, has proposed a plan to tax crypto profits as regular income, which could push the tax rate as high as 47%. The controversial plan has drawn criticism for potentially driving investors away, while also reflecting a global trend of governments implementing stricter crypto regulations.

Dutch crypto investors who held assets on January 1, 2022, can now claim a tax refund following a Supreme Court ruling. A new form allows taxpayers to report their actual (often negative) returns from the 2022 market crash instead of a fictional one.

The European Central Bank has issued a stark warning about the risks posed by the rapidly growing stablecoin market, citing potential capital flight from eurozone banks and the threat of a ‘digital bank run’ that could trigger a global financial crisis. However, industry figures counter that stablecoins, with their full reserve requirements, could actually enhance financial stability.

Malaysia, a significant player in Bitcoin mining, has suffered over €970 million in losses from electricity theft by illegal crypto mining operations since 2020. Authorities are cracking down, deploying smart meters and collaborating with utility firms to combat the issue, which has led to arrests and equipment seizures.