The California Senate and Assembly have unanimously passed a bill that would restrict public officeholders from issuing memecoin tokens.

 

The bill, coded AB 2409, was introduced by Assemblymember Avelino Valencia on February 20 this year. It passed the California Senate with a 40-0 vote and the Assembly with a 78-0 vote.

 

By passing the bill, California lawmakers aim to prevent public officials from using the authority bestowed upon them by virtue of their public positions for personal gain. The bill states that all public officeholders are to exercise their authority solely for the benefit of the people of California.

 

The bill further states that the issuance or promotion of financial instruments, including memecoins, could undermine public confidence in government and create opportunities for conflicts of interest and pay-to-play arrangements. These arrangements could potentially be exploited by foreign elements seeking to interfere in the affairs of the state.

 

Although the bill has been passed by lawmakers, enforcement will begin on January 1, 2027. From that date onward, digital asset providers will be prohibited from listing for sale any memecoin linked to a public official or facilitating the purchase of such memecoins by California residents.

 

To enable enforcement, the bill allows the California attorney general, a district attorney, city attorney, or county counsel to file a civil action against any digital asset service provider.

 

TRUMP Coin as a Case in Point 

 

Although the TRUMP memecoin profited a relatively small group of people, the losses it caused investors were significant, with approximately $3.2 billion to $3.81 billion in realized and unrealized losses recorded.

 

According to The New York Times, two-thirds of investors who purchased the TRUMP token ended up underwater, with Nansen projecting that about 988,900 to 1 million wallets out of roughly 1.6 million total wallets were in the red. 

 

Brazil’s central bank has announced plans to implement a system that monitors threats to crypto assets and issues real time alerts when potential risks are detected.

 

The monitoring system, which is being developed through a partnership between Brazil’s central bank and blockchain security firm Hypernative, has reportedly been tested with market participants and will be implemented by industry associations within the next two weeks.

 

When launched, either the central bank or Hypernative will be able to receive these alerts and distribute the messages to their members in real time.

 

Speaking to Valor Econômico, Brazil’s largest financial publication, Regina Pedroso, executive director of the Brazilian Tokenization Association, said the initiative began to be discussed at the end of last year, when the central bank began forming a working group among blockchain associations tasked with monitoring and warning of cyberattacks.

 

According to Pedroso, the monitoring system was tested among member blockchain associations, including Mercado Bitcoin and Foxbit, two of Brazil’s largest cryptocurrency exchanges. Pedroso also noted that the central bank had already issued a bulletin outlining how the system will be implemented among association members.

 

The launch of the monitoring system by Brazil’s central bank underscores the country’s efforts to track threats involving crypto assets, particularly because cryptocurrencies can provide an exit rail for cybercriminals and fraudsters.

 

Although there has not been any major institutional cyberattack in Brazil this year, the country suffered several security incidents last year, most notably the hack of C&M Software, a technology company that connects smaller banks and fintechs to the central bank’s systems.

 

The hack reportedly led to the loss of approximately $140 million to $180 million, with $30 million to $40 million of the stolen funds reportedly converted into cryptocurrencies, including Bitcoin, Ether, and USDT, through OTC desks and exchanges in the region.

 

The Korea Communications Standards Commission (KCSC) has announced its decision to block domestic access to prediction market Polymarket over concerns that its activities constitute illegal gambling.

 

The decision, announced Tuesday, was reached after the Telecommunications Deliberation Subcommittee, chaired by Kim Woo Seok, a standing commissioner of the Broadcasting, Media and Communications Review Board, unanimously voted to block access to the platform.

 

According to the committee, Polymarket’s activities abet or promote gambling under the National Sports Promotion Act. Although Polymarket claimed in response to the ban that it had removed its Korean language service and that payments in Korean won were unavailable, the committee rejected the claim, saying domestic laws cannot be evaded based on service methods or other technical characteristics.

 

"As Polymarket provides a winner take all profit and loss structure based on chance, focusing on domestic specific issues such as Seoul precipitation levels in August, thereby creating a practical illegal gambling environment for domestic users, access blocking measures are inevitable to protect domestic users," the committee added.

 

The committee also asserted that, before reaching its decision, it sought the opinions of other relevant agencies, including the Korean National Police Agency, the National Gambling Control Commission, and the Korea Sports Promotion Foundation. According to the committee, these agencies shared the view that Polymarket’s activities constituted the crime of gambling.

 

Korea’s ban on Polymarket comes shortly after the French Autorité nationale des jeux (ANJ) banned the prediction market’s activities, citing the promotion of illegal gambling activities.

 

With its recent ban, South Korea has now joined the list of more than 30 countries and jurisdictions that have blocked or restricted access to Polymarket.

 

 

The Office of the Comptroller of the Currency (OCC) has granted President Trump-backed World Liberty Financial preliminary conditional approval to establish World Liberty Trust Company, N.A., a national trust bank that would oversee its USD1 stablecoin operations.

 

Since the charter is conditional, World Liberty Trust Company will serve as a limited purpose national trust bank, handling the fiduciary and trust aspects of the USD1 stablecoin, including the issuance and redemption of the stablecoin, management of the reserves backing USD1, and custody services for institutional clients using USD1.

 

Regarding the regulatory milestone, Zach Witkoff, CEO and co-founder of World Liberty Financial, wrote in an X post, “Rigorous oversight, institutional controls and clear accountability are how stablecoins become trusted financial infrastructure.”

 

“Our ambition is clear: to build the most trusted and widely used digital dollar in the world while strengthening the role of the U.S. dollar across the global economy.”

 

As part of the conditions stated by the OCC in its approval letter, World Liberty Trust Company must restrict its activities strictly to those relating to trust activities. If it intends to deviate from these activities, the bank must provide the OCC with 60 days’ prior notice.

 

Before any executive is appointed, World Liberty Trust Company must submit information about the executives to the OCC and receive a non-objection letter from the regulator.

 

The trust bank will initially be governed by a five member team: Zach Witkoff, who will serve as board chair; Scott Alper, President and Chief Investment Officer of Witkoff Group; Robert Witkoff, former Co-Chief Investment Officer of The Chubb Corporation; Jeffrey Weiner, former Chairman and CEO of Marcum LLP, one of the largest accounting firms in the U.S.; and Erin Baskett, a member of the FINRA Board of Governors and founder of brokerage firm Sine Qua Non Capital.

 

 

BitMEX, one of the leading cryptocurrency derivatives exchanges, has announced that it will permanently shut down operations on September 23, 2026.

 

While the company did not provide an explicit reason for the decision, it said in a blog post that the move followed a strategic review of the business and the broader cryptocurrency industry conducted by the board of HDR Global Trading Limited, BitMEX's parent company.

 

Image credit: x.com

 

Following the announcement, BitMEX urged users to close all open positions and withdraw their funds from the platform as soon as possible.

 

To ensure an orderly wind-down, the exchange said it will begin applying risk limits, including allowing users only to reduce existing positions and preventing them from opening new ones. Any positions that remain open after the closure date will be forcibly closed, and the company added that it will not be responsible for any losses incurred during the process.

 

For users who have completed Know Your Customer verification but fail to withdraw their funds, BitMEX said it will charge an annual account maintenance fee equal to the greater of $50 or 1% of the account balance. Although all trading positions will be closed by the September 23 deadline, users will still be able to log in to their accounts and view their wallet balances.

About BitMEX

 

BitMEX, or Bitcoin Mercantile Exchange, is a cryptocurrency derivatives trading platform co-founded in 2014 by Arthur Hayes, a former derivatives trader at Deutsche Bank, Ben Delo, and Samuel Reed, who are both software engineers.

 

Following the collapse of the then-largest cryptocurrency exchange, Mt. Gox, Hayes and his team co-founded BitMEX to provide professional-grade derivatives tools that were seriously lacking in the crypto industry at the time.

 

Despite offering various crypto derivatives, including pioneering perpetual swaps with up to 100x leverage, and becoming one of the most notable derivatives exchanges with no recorded security breaches, BitMEX faced severe regulatory scrutiny from U.S. authorities over alleged anti-money laundering and know-your-customer violations.

 

Due to these regulatory challenges, its founders were charged, and the company was fined more than $100 million. These challenges eventually led BitMEX to lose its market dominance and liquidity, and to several unsuccessful attempts to sell the company.

 

Image credit: pymnts.com

 

Sony Bank, one of Japan's largest online banks, has received conditional approval from the U.S. Office of the Comptroller of the Currency, or OCC, to establish a national trust bank.

 

According to a press release from Sony Bank, the establishment of the trust bank, named Connectia Trust, is intended to prepare for the commercialization of businesses related to the issuance and management of U.S. dollar-denominated stablecoins in the United States.

 

"The establishment of this trust subsidiary is intended to contribute to the development of a medium to long-term business foundation for the Sony Financial Group's digital asset businesses," Sony Bank said in a press statement.

 

Although Connectia is being established this month, with Sony Bank committing an initial capital investment of $40 million (equivalent to JPY 6.4 billion), the trust bank will not begin full operations or stablecoin issuance until 2027. That is contingent on receiving final approval from the OCC after meeting all regulatory requirements.

 

Sony Bank's approval comes at a time when several other financial institutions, including crypto companies, have sought to establish national trust banks. In December last year, stablecoin issuer Circle received conditional approval to establish a national trust bank before securing final approval this week. Other companies that have received similar conditional approval include Ripple, Paxos, Fidelity, and BitGo.

 

By seeking an OCC national trust charter, companies can gain greater regulatory clarity and credibility to issue and manage U.S. dollar-backed stablecoins, provide custody services, and operate under a single national regulatory framework that preempts many state licensing requirements. An OCC charter can also help companies build trust among institutional clients, enabling them to expand their services to a broader range of customers.

 

 

Binance, the world's largest cryptocurrency exchange by trading volume, has re-entered the Philippines after being designated an unregistered exchange and blocked by the Philippine Securities and Exchange Commission (SEC) in 2024.

 

Binance's return to the Philippines was made possible through a regulatory sandbox partnership with BlockShoals Technologies Inc., a Philippine-registered fintech company.

 

Image credit: X.com 

 

Since this is not a fully licensed entry, Binance, under the supervision of the Philippine SEC, will have its infrastructure integrated with BlockShoals for the next 90 days. This will allow the Philippine SEC to monitor Binance's transaction flows, user protection measures, and anti-money laundering controls in a controlled environment before deciding whether to grant broader operating approval.

 

If Binance meets all compliance requirements after the 90-day testing period, the Philippine SEC may grant the exchange a full operating license. As a result, Filipino retail traders may not see Binance-branded services until at least early October, following the completion of the 90-day testing period.

 

Binance's sandbox partnership with BlockShoals comes about two years after the Philippine Securities and Exchange Commission, through the National Telecommunications Commission, blocked access to Binance's website and related pages. According to the regulator, Binance was operating without the required license and registration and was offering unregistered securities, which it said posed risks to investors.

 

Crypto adoption in the Philippines appears to remain strong. According to a Chainalysis report, the country ranked ninth in the Global Crypto Adoption Index, down from second place in 2022. The Philippine crypto market is currently valued at about $55 billion and is projected to reach $120 billion by 2034.

 

Binance's Other Sandbox Partnerships

This is not the first time Binance has entered a country through a sandbox partnership. In 2022, Binance formed a joint venture with Gulf Innova, a major subsidiary of Thailand's Gulf Energy Development. The partnership resulted in Gulf Innova's transition into Gulf Binance, enabling Binance to secure a full digital asset exchange and broker license from Thailand's SEC.

 

Binance has also pursued similar sandbox partnerships to enter Dubai and Kazakhstan. It also acquired Sakura Exchange BitCoin, a local Japanese crypto exchange, enabling it to operate in the country without regulatory setbacks.

 

Keyrock, a leading crypto investment company and digital asset liquidity provider, has secured a Markets in Crypto Assets Regulation (MiCA) license, advancing its efforts to expand its presence across the European Union (EU).

 

 

The company announced the authorization in a Monday blog post, stating that it was granted through its French subsidiary, Keyrock FR SAS. According to Reza Ghadiri Zare, Keyrock’s general counsel, the MiCA license provides regulatory certainty as the firm scales its operations across EU member states, thereby strengthening investor confidence.

 

“Achieving a MiCA license not only demonstrates our uncompromising market integrity, but also signals our intent for the future,” commented Kevin de Patoul, CEO of Keyrock. “We’ll continue to drive progress in digital assets, but never at the expense of security or transparency. As we grow, we’ll provide clients with the stability and confidence required in a regulated market.”

 

With MiCA licensing secured and regulatory hurdles cleared, Keyrock aims to enhance its cross-border operations across the EU. Coupled with its liquidity and risk management infrastructure, the company plans to further scale its digital asset initiatives.

 

With a valuation of $1.1 billion, Keyrock operates a liquidity infrastructure that spans more than 85 centralized and decentralized exchanges and over 1,400 markets.

 

About Keyrock 

Founded in 2017, Keyrock is a leading global digital asset market maker that aims to make crypto markets more accessible and scalable. Leveraging its high-frequency trading technologies, risk management capabilities, and deep liquidity, Keyrock offers a range of services, including market making, OTC trading, and digital asset and wealth management.

 

As one of the earliest crypto market makers, Keyrock has achieved several significant milestones, including raising more than $170 million and achieving unicorn valuation. The company has also secured the necessary licenses, reducing regulatory uncertainty as it expands across the EU. Keyrock serves institutional clients, including hedge funds, asset managers, and traditional finance companies entering the digital asset market.

 

 

A federal appeals court, the U.S. Court of Appeals for the Second Circuit in Manhattan, has upheld the conviction of Sam Bankman-Fried, the founder of the now-defunct FTX cryptocurrency exchange.

 

Following his conviction on March 28, 2024, Bankman-Fried’s lawyers filed a direct appeal with the U.S. Court of Appeals on April 11, 2024. His legal team argued that the trial was unfair, citing alleged judicial bias by Judge Lewis Kaplan, disputed jury instructions, and other procedural issues.

 

Through the appeal filing, Bankman-Fried’s legal team sought to overturn the conviction and secure a new trial before a different judge. However, the appeals court rejected the request, stating that there was “robust” evidence supporting the conviction.

 

“The overwhelming evidence presented at trial proved that Bankman-Fried knowingly and intentionally committed large-scale fraud against FTX’s customers,” Judge Barrington Parker wrote.

 

“While he was publicly reassuring customers, investors, and regulators that FTX customer funds were safe, he was simultaneously using FTX as his own personal piggy bank, spending customer funds on real estate, political contributions, and investments.”

 

Following the decision, Bankman-Fried’s legal team has the option of requesting an en banc review, in which all active judges on the Second Circuit would rehear the case. This request must typically be filed within 14 days, although the exact deadline depends on the court’s rules. If the review is denied, his lawyers could petition the U.S. Supreme Court to consider the case.

 

The appeals court’s rejection of Bankman-Fried’s retrial bid comes shortly after he reportedly filed for a presidential pardon from former President Donald Trump. The request does not seek to shorten or reduce his sentence, but instead aims to restore certain civil rights associated with a felony conviction.

 

Before the appeals court ruling, Bankman-Fried had filed a request for a new trial in February, arguing that there was newly discovered evidence. However, the request was denied by Judge Lewis Kaplan on April 28, 2026.

 

The former founder of what was once the world’s largest cryptocurrency exchange is currently serving a 25-year sentence after being convicted on multiple charges, including conspiracy to commit wire fraud, securities fraud, commodities fraud, and money laundering.

 

 

Sam Bankman-Fried, CEO of the now-defunct FTX cryptocurrency exchange, has formally submitted an application to the U.S. Department of Justice's Office of the Pardon Attorney, seeking a presidential pardon from U.S. President Donald Trump.

 

The application, which falls under the category of "Pardon after completion of sentence," does not request that Trump shorten or end Bankman-Fried's 25-year prison sentence. Instead, it seeks a presidential pardon that would formally forgive his federal convictions for fraud and related charges, restore certain civil rights, and remove the legal stigma associated with a felony conviction.

 

Speaking in a phone interview with Fox Business correspondent Susan Li, Bankman-Fried acknowledged that he would welcome a presidential pardon from Trump. However, he declined to comment on whether his parents or anyone close to him had contacted the White House on his behalf.

 

With the application now filed, the Office of the Pardon Attorney will conduct a thorough review of the petition and verify the information provided. Since the application was submitted just two years into his 25-year sentence, the process could take months or even years to reach a decision. If approved by the reviewing authorities, the recommendation will be forwarded to the president, who may choose to grant, deny, or take no action on the request.

 

The pardon application comes just months after Bankman-Fried sought a retrial in March, requesting the introduction of new witnesses. The move was later opposed by some U.S. prosecutors.

 

Bankman-Fried is currently serving a 25-year prison sentence for his role in the collapse of the FTX cryptocurrency exchange. He was convicted of fraud after prosecutors accused him of secretly diverting customer funds to purchase luxury real estate, make large political donations, and engage in other forms of financial misconduct.

 

At trial, Bankman-Fried was found guilty of wire fraud, securities fraud, commodities fraud, and money laundering. He was subsequently sentenced to 25 years in prison. Despite his conviction, he continues to argue that the prosecution was unjust.

 

"I didn't steal user funds either," Bankman-Fried said during his phone interview with Susan Li of Fox Business. "Customers have been repaid now 170% or so on their deposits. I can only tell you what I think and, you know, ultimately, customers have been repaid again nearly twice what they had on the platform, and it's a great disservice to them that it has taken three years."

 

 

Indonesia’s Ministry of Communication and Digital Affairs has blocked access to Polymarket, the world’s largest prediction market platform, and plans to block all social media accounts affiliated with it.

 

According to Alexander Sabar, Director General of Digital Space Supervision, platforms that facilitate money-based betting on specific outcomes or events are still categorized as online gambling, even if they are presented as prediction markets.

 

“The government will not allow any form of online gambling in Indonesia. Activities like Polymarket involve betting and speculation on uncertain outcomes, thus violating Indonesian law,” Sabar said in Central Jakarta, one of the country’s main administrative areas.

 

The agency also said the decision to block Polymarket is intended to protect younger users and the broader public in the digital space, and added that it will block access to other platforms that facilitate online gambling activities in the country.

 

Prior to the ban, Polymarket had a limited user base in Indonesia. However, it gained greater visibility between May 20 and 21 of this month when it launched a contract on whether President Prabowo Subianto would leave office early. The contract drew significant attention in Indonesian digital spaces, attracting roughly 51,000 dollars in trading volume within days of its launch.

 

Global Crackdown on Prediction Markets Continues

Regulators' crackdown on the activities of prediction market companies continues to intensify. Just last month, Brazil’s National Monetary Council (CMN), together with other government agencies and regulators, blocked Polymarket, Kalshi, and 27 other prediction market platforms from operating in the country. This came shortly after a court in Buenos Aires reportedly ordered a ban on Polymarket in Argentina.

 

Other countries in Europe, including France, Belgium, Germany, Italy, Poland, Portugal, and Hungary, have either banned or heavily restricted the activities of Polymarket, Kalshi, and other prediction market companies within their jurisdictions.

 

In the United States, several state regulators have taken action against prediction markets, with Minnesota most recently imposing a comprehensive ban on them. At least 17 states, including Illinois, New York, and Ohio, have issued cease-and-desist orders against prediction market companies.

 

 

Tether, the largest stablecoin issuer, has partnered with the Georgian government to launch GELT, a stablecoin representing the lari, the country’s official currency.

 

 

The partnership, announced on Monday, aims to create a financial ecosystem that supports cross-border commerce, fintech development, and broader access to programmable financial infrastructure across Georgia.

 

GELT will serve as a digital representation of the Georgian lari and will be designed to enable lower transaction costs, near instant settlement, programmable payments, and more efficient movement of value across digital financial systems.

 

“Together with visionary partners like Tether, Georgia is laying the foundations for a more connected, transparent, and digitally empowered financial world,” said Irakli Kobakhidze, Prime Minister of Georgia.

 

The launch of the GELT stablecoin is built on a regulatory framework created by the Georgian government and the National Bank of Georgia. In March this year, the National Bank of Georgia developed a framework governing the issuance of stablecoins.

 

The framework, officially known as “The Rule for the Initial Coin Offering of a Stable Virtual Asset by a Virtual Asset Service Provider,” sets out standards that must be met by all virtual asset service providers (VASPs) operating in the country, including requirements for 100 percent reserve backing, strong consumer protections, proper risk management, and full compliance with the country’s Anti Money Laundering (AML) standards.

 

“Stablecoins are no longer a niche financial instrument. They are becoming part of the infrastructure layer for global finance,” said Paolo Ardoino, CEO of Tether. “Georgia has moved early to create serious regulatory architecture for digital assets and stablecoins, and that clarity creates the foundation for real innovation and adoption.”

 

Georgia’s stablecoin framework is also designed to be compatible with other regulatory frameworks, including the Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act) and Markets in Crypto Assets (MiCA).

 

By partnering with Tether to launch the GELT stablecoin, Georgia becomes the first country to team up with a major stablecoin issuer to issue a government-supported stablecoin pegged to its national currency. The UAE has also launched a dirham-pegged stablecoin, but unlike Georgia’s GELT, that stablecoin was issued by local consortia rather than a major stablecoin issuer such as Tether.

 

The planned launch of the GELT stablecoin comes shortly after Tether launched its self-custodial wallet. In an effort to increase access to stablecoins, Qivalis recently expanded its consortium to include more banks, which are collectively working to launch a euro-pegged stablecoin.