The global cryptocurrency landscape is continuously evolving, shaped by regulatory developments, institutional adoption, and technological innovations. This article provides a comprehensive overview of recent key events and trends affecting the digital asset ecosystem, from new tax reporting requirements and regulatory frameworks to significant market movements and investment activities.
Enhanced Crypto Tax Enforcement in the US
The Internal Revenue Service (IRS) has significantly increased its scrutiny of cryptocurrency transactions. According to David Kemmerer, Co-founder of CoinLedger, the number of users receiving IRS letters has surged by 758% in the past 60 days. This trend, confirmed by multiple accounting firms, is likely linked to the upcoming 1099-DA regulation set to take effect next year.
The new rule mandates that crypto brokers report users' digital asset trading income and costs, representing a stricter regulatory approach. Some users have already received CP2000 notices due to incomplete records and must respond within a specified period to avoid potential penalties and audits.
Hong Kong's New OTC Regulatory Framework
The Securities and Futures Commission (SFC) and the Financial Services and Treasury Bureau of Hong Kong have released a consultation paper bringing over-the-counter (OTC) virtual asset trading platforms under regulatory oversight. The requirements are notably stricter than those proposed last year, which required OTC platforms to obtain licenses from customs.
The new framework mandates that all service providers, including those handling virtual currency transactions, withdrawals, fiat exchanges, brokerage activities, and large-scale trades, must obtain SFC licenses. Minimum paid-up capital requirements are set at HK$5 million for trading service providers and HK$10 million for custodians. Additionally, each firm must have two responsible officers approved by the SFC.
Legal Challenges for Corporate Bitcoin Strategy
Strategy faces multiple securities class action lawsuits alleging that the company made "materially false and misleading statements" regarding the expected returns and risks of its Bitcoin investments. The lawsuits cover the period from April 30, 2024, to April 4, 2025.
The legal action follows the company's first-quarter purchase of $7.7 billion in BTC, which resulted in nearly $6 billion in unrealized losses. Legal experts note that it is common for multiple firms to file similar complaints in such cases as they compete for lead plaintiff status. Strategy has stated it will "vigorously defend" against the allegations, though potential outcomes or losses cannot currently be estimated.
Trump-Linked Crypto Project Expands Ecosystem
World Liberty, a cryptocurrency project associated with the Trump family, has announced a partnership with Re7 Labs. The collaboration will establish liquidity pools for its stablecoin USD1 on lending platforms such as Euler and Lista. This initiative aims to promote the adoption and ecological expansion of USD1 on BNB Chain.
Re7 Capital, the parent company of Re7 Labs, recently secured a $10 million investment from Hong Kong-based family office VMS Group, marking its first foray into the cryptocurrency market.
Bolivia's Crypto Adoption Surge Post-Ban Lift
The Central Bank of Bolivia (BCB) reports that cryptocurrency payment transactions reached $430 million in the 12 months following the lifting of the country's crypto ban in 2024, representing a 630% year-over-year increase. Individuals accounted for 86% of these transactions, primarily through channels related to Binance.
Additionally, the government has authorized the national energy company to use digital assets for fuel imports, signaling further integration of cryptocurrencies into official economic activities.
Weekly Top Crypto News Highlights
1. Hong Kong's Digital Asset Development Policy Declaration 2.0
The Hong Kong government has released an updated policy declaration reaffirming its commitment to establishing the region as a global innovation hub for digital assets. The LEAP framework focuses on optimizing legal and regulatory systems, expanding tokenized product varieties, promoting application scenarios and cross-sector collaboration, and developing talent and partnerships.
Financial Secretary Paul Chan emphasized that combining prudent regulation with market innovation will create a thriving digital asset ecosystem integrated with the real economy and society, ultimately benefiting economic and social development while consolidating Hong Kong's leading position as an international financial center.
2. South Korean Banks Collaborate on Won-Pegged Stablecoin
Eight major South Korean banks—including KB Kookmin, Shinhan, Woori, NH Nonghyup, IBK Industrial Bank, Suhyup Bank, Citibank Korea, and Standard Chartered Korea—are collaborating with the Open Blockchain and DID Association and the Financial Settlement Institute to establish a joint venture for issuing a Korean won-backed stablecoin.
This initiative marks the banking industry's first consortium entry into the digital asset space. Preliminary plans include both trust-type and deposit-linked stablecoin models, with the company expected to be established by late this year or early next.
3. Japan's Proposed Crypto Regulatory overhaul
Japan's Financial Services Agency (FSA) has proposed bringing crypto assets under the Financial Instruments and Exchange Act (FIEA). The proposal, submitted to the Financial System Council on June 25, would allow Bitcoin ETFs to launch in Japan and apply a declared separate taxation system of approximately 20%, replacing the current comprehensive tax rate that can reach up to 55%.
4. Federal Reserve Maintains Cautious Stance on Rate Cuts
Federal Reserve Chair Jerome Powell reiterated a wait-and-see approach during congressional testimony, noting that recent economic activity remains robust enough to allow policymakers to continue monitoring inflation and employment data before considering interest rate reductions. Powell emphasized the Fed's commitment to preventing tariff-related price increases from becoming a "persistent inflation problem" but did not signal a July rate cut.
5. Bhutan's Significant Bitcoin Holdings
Since launching its Bitcoin mining program in 2020, Bhutan has accumulated approximately $1.3 billion in Bitcoin reserves, representing nearly 40% of its GDP—making it the third-largest government holder of Bitcoin globally. The country utilizes its abundant hydropower resources for mining operations, having built at least six mining facilities in partnership with Bitdeer.
Bhutan plans to hold Bitcoin long-term while gradually promoting cryptocurrency use in tourism payments and future city development.
6. UAE Web3 Fund's Major Token Investment
Aqua1 Fund, a UAE-registered Web3 investment fund, has allocated $100 million to purchase WLFI tokens. The fund's official Twitter account announced the investment, though the exact cost basis remains unclear as the address for an additional $20 million allocation has not been identified.
World Liberty Financial Inc., a decentralized finance platform associated with the Trump family, has announced that several publicly traded companies are considering adding WLFI tokens to their treasury reserves. The platform also launched the World Liberty Financial App.
7. Turkey Strengthens Crypto Anti-Money Laundering Measures
Turkey's Ministry of Treasury and Finance has announced new regulations to combat money laundering through crypto assets, particularly proceeds from illegal gambling and scams. The measures include requiring platforms to record fund sources and用途, imposing a minimum 20-character description for all transfers, and implementing a 72-hour delay for initial withdrawals from platforms not complying with "travel rule" requirements.
Stablecoin transfers will be limited to $3,000 daily and $50,000 monthly, though compliant platforms may receive twice these limits. Violators may face license revocation in what is currently one of the most active cryptocurrency regions.
8. Barclays Bans Cryptocurrency Transactions
Effective June 27, 2025, Barclays will prohibit customers from using its debit and credit cards for cryptocurrency transactions. The bank cited price volatility potentially leading to uncontrollable debt and noted that such transactions are not protected by the Financial Ombudsman Service or the Financial Services Compensation Scheme. As one of the UK's big four banks and a globally systemically important bank designated by the Financial Stability Board (FSB), this move signals significant institutional caution.
9. OKX Considers US Initial Public Offering
Following its return to the US market in April, cryptocurrency exchange OKX is considering an initial public offering (IPO) in the United States, according to reports from crypto journalist Yueqi Yang.
👉 Explore advanced trading strategies
10. Coinbase to Launch US Perpetual Futures Products
Coinbase Derivatives Exchange announced it will launch "US Perpetual-Style Futures" products on July 21, 2025. The offerings will include nano Bitcoin (0.01 BTC) and nano Ethereum (0.10 ETH) contracts—the first such products in the US market designed to provide CFTC-regulated cryptocurrency derivative trading options while eliminating risks associated with offshore exchanges.
Significant Crypto Funding Rounds
The cryptocurrency and blockchain sector continues to attract substantial investment across various segments:
- AI model marketplace OpenRouter secured $40 million in Seed and Series A funding
- The Smarter Web completed a £41.2 million fundraising round
- Crypto startup Zama raised $57 million in Series B funding
- Canton network developer Digital Asset completed a $135 million strategic investment
- Paradigm led a $15 million Series A round for decentralized exchange startup GTE
- DeFi infrastructure provider Veda announced $18 million in funding
- Norwegian deep-sea mining company Green Minerals unveiled a Bitcoin treasury strategy seeking $1.2 billion in financing
- Publicly traded company ECD signed a $500 million equity financing agreement for Bitcoin treasury implementation
- Sequans announced a $384 million financing plan to initiate a Bitcoin treasury strategy
- KindlyMD secured an additional $51.5 million ahead of its merger with Nakamoto to advance Bitcoin reserve strategies
- YZi Labs invested in decentralized entertainment platform MEET48
- Inference Labs raised $6.3 million in funding
- Jarsy completed a $5 million pre-seed round led by Breyer Capital
- DeFi infrastructure company Yield.xyz announced a $5 million strategic investment
- Sphinx closed a $2 million Pre-Seed funding round
- Blueprint Finance raised $9.5 million in a round led by Polychain Capital
- Game developer Endless Clouds received $6.25 million from Animoca Brands and other institutions
- Stackup, founded by a former SpaceX manager, completed a $4.2 million seed round
For more comprehensive information on industry fundraising events, consult specialized crypto fundraising databases.
Frequently Asked Questions
What is the 1099-DA regulation?
The 1099-DA is a new US regulatory requirement that mandates cryptocurrency brokers to report users' digital asset trading income and costs to the IRS. This represents a significant enhancement to tax compliance enforcement in the crypto space, with implementation expected next year.
Why are Hong Kong's new OTC regulations important?
Hong Kong's comprehensive regulatory framework for over-the-counter virtual asset trading brings previously unregulated activities under formal oversight. The strict capital requirements and licensing obligations aim to enhance consumer protection while legitimizing the industry within the financial ecosystem.
How might Japan's regulatory changes affect crypto investors?
Japan's proposed integration of crypto assets into its Financial Instruments and Exchange Act could make Bitcoin ETFs available to Japanese investors while significantly reducing tax burdens through a separate declared taxation system of approximately 20% instead of the current最高rate of 55%.
What does Barclays' crypto transaction ban mean for users?
Barclays' decision to prohibit cryptocurrency transactions reflects institutional concerns about market volatility and consumer protection. Users should diversify their banking relationships if they wish to continue investing in digital assets and be aware that traditional financial protections may not apply to crypto transactions.
How can investors participate in US-regulated crypto derivatives?
Coinbase's upcoming perpetual-style futures products will offer US investors access to regulated cryptocurrency derivatives for the first time. These nano contracts (0.01 BTC and 0.10 ETH) provide smaller denomination trading options with CFTC oversight, reducing counterparty risks associated with offshore platforms.
👉 Learn more about regulated trading options
What trends are visible in recent crypto funding rounds?
Recent investment activity shows strong interest in Bitcoin treasury strategies, DeFi infrastructure, AI-blockchain integration, and gaming applications. Both institutional and venture funding continues to flow into the sector despite regulatory uncertainties, particularly toward projects with clear utility and regulatory compliance.