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Canada lags with stablecoin approach, but there’s room to catch up
The slow adoption of stablecoins in Canada has some local crypto industry observers concerned that the country is falling behind.The Canadian Securities Administrators (CSA) classified stablecoins as “securities and/or derivatives” in December 2022 after the FTX debacle that shook markets and turned many lawmakers against the crypto industry.Regulating stablecoins as a security has seen few local stablecoin issuers arise, but in the United States and the European Union, softening regulations have seen significant growth in the stablecoin market. This makes Canada, observers say, less competitive with other jurisdictions. Of particular concern is the perceived gap in peer-to-peer (P2P) payments in Canada, which stablecoins are uniquely qualified to fill. Stablecoins globally have grown significantly over the last five years. Source: DefiLlamaLocal law constrains stablecoin growth and threatens dollarIn 2022, as the crypto market reeled from the collapse of FTX and the implosion of the Terra stablecoin system, regulators worldwide began to look more critically at the crypto space. In Canada, the CSA updated regulations for crypto exchanges and brought stablecoins under its purview, classifying them as securities/derivatives. This hasn’t been a popular decision with Canada’s crypto industry.Morva Rohani, founding managing director of the Canadian Web3 Council, told Cointelegraph that the CSA’s case-by-case basis for considering stablecoin issuers and the lack of a federal framework make for a “patchwork” regulatory regime.“Canada’s reliance on securities law to regulate payment stablecoins introduces significant legal and operational uncertainty,” she said.Tanim Rasul, chief operating officer of Canadian crypto exchange NDAX, said that the CSA “got it wrong,” stating that other regulatory frameworks, like the EU’s Markets in Crypto-Assets (MiCA) law, were more appropriate. “I would just say, look at MiCA, look at the way they’re approaching stablecoins. It’s a payment instrument. It should be regulated as such,” he told a crowd at the Blockchain Futurist Conference in Toronto on May 13. It’s not just the EU. Singapore and the UAE have also introduced regulatory frameworks for stablecoins, and US senators are optimistic they will pass a stablecoin law by May 26.Related: What are the next steps for the US stablecoin bill?Rohani said Canada is “out of step with leading global jurisdictions [...] which have adopted tailored, prudential frameworks that recognize stablecoins as payment instruments.”This lack of alignment with other, more pro-stablecoin jurisdictions could have negative effects for the Canadian dollar (CAD), some worry.Som Seif, founder of Canadian investment firm Purpose Financial, said that the proliferation of other major stablecoins, mostly denominated in the US dollar, could threaten the use of the loonie (a nickname for the Canadian dollar) at home. “If Canada does not create the regulatory framework and environment that encourages the development of CAD stablecoins, consumers and businesses will default to using USD-pegged alternatives, eroding the relevance of CAD in global markets,” he said.Stablecoins provide cheaper P2P payments but reputation is also a roadblockMembers of the Canadian crypto industry have stated that stablecoins have a role to play in the country as well, given the purported lack of P2P payment networks available in the country. Speaking to Cointelegraph on May 13, Coinbase Canada CEO Lucas Matheson said, “It’s really important that we have a stablecoin for Canadians.” He said that the only options currently open were wire transfers, which “cost $45 and take 45 minutes of paperwork.” Rohani said that Interac e-Transfer, a Canadian funds transfer service, “remains the primary domestic P2P rail, operating through banks and credit unions.”Related: Stablecoins seen as ideal fit for real-time collateral managementCanada does have apps like PayPal and Wise, which support international P2P transfers, but those often come with high commissions and slow settlement times compared to stablecoins.Rohani said that while some crypto platforms allow for P2P transfers, they’re not widely used due to a lack of integration into mainstream financial services. Demand for more and different digital payment methods is growing in Canada, according to the 2024 digital payments report from Payments Canada, the owner and operator of Canada’s payment clearing and settlement infrastructure.But that demand may not translate directly into stablecoins. Crypto’s “journey towards financial integration among Canadians remains a distant prospect,” the report reads. Some 91% of Canadians have never used crypto as a payment. Ease of use and security were top priorities for international payment users. Source: Payments CanadaPayments Canada attributes the lack of interest to the assets being perceived as the “least secure payment method among Canadians compared to alternatives such as cash, credit cards, cheques, wire transfers and PayPal.”Even in the context of a central bank digital currency, which the crypto industry generally regards as a less favorable option to private, fiat-denominated stablecoins, interest just isn’t there. The survey found that 85% of respondents “did not envision themselves using a digital Canadian dollar and preferred their existing payment methods.”Is PM Carney pro-crypto?If more tailor-made regulations could integrate stablecoins with the mainstream payment options Canadians are comfortable with, it would still take a concerted effort from policymakers in Ottawa, where the Liberals have just won the federal elections.The crypto industry had cause for doubt. Liberal Prime Minister Mark Carney has previously expressed skepticism about cryptocurrency. In a speech as Governor of the Bank of England, he said they had failed as money. Still, he acknowledged stablecoins have a role to play in retail and wholesale payments. He said in 2021 that stablecoins should have access to central bank balance sheets — but only if strong protections were in place. “There’s been two systemic crises in money funds in little more than a decade [...] In baseball, it’s three strikes and you’re out. In cricket, it’s only the equivalent of one. For systemic payment systems, one is too many,” Carney stated.Kohani said, “With Mark Carney at the helm of the Liberal Party, we anticipate a pragmatic but regulation-first approach to crypto and stablecoins.”While his previous openness toward stablecoins suggests he’s open to the technology, he also “emphasizes the need for regulation, oversight and safeguards.”Another Liberal term, per Kohani, will likely mean the CSA continues to lead enforcement but could result in broader policy work, including a framework on stablecoins, “particularly if positioned as a tool for payments modernization and maintaining the relevance of the Canadian dollar.” Magazine: Danger signs for Bitcoin as retail abandons it to institutions: Sky Wee
Published: 2 hours ago
Wintermute opens New York office, citing improved US crypto rules
Wintermute, a London-based algorithmic crypto trading and market-making firm, has opened an office in New York as part of its expansion into the US.Wintermute announced the opening of its New York office on May 15, citing improved regulatory conditions in the world’s largest economy.“As the US takes a friendlier stance on digital assets and institutional adoption accelerates, we moved quickly to establish roots in New York City,” the company wrote in a May 15 X post, adding that the local presence will help them in “contributing to the future regulatory framework.”Source: Wintermute“We’re eager to continue our growth and play an integral role in the U.S. market,” according to Evgeny Gaevoy, CEO of Wintermute. “As a neutral player with deep expertise in all areas of digital assets, we believe we are well-positioned to lend our expertise on Capitol Hill.”As part of the firm’s expansion, Wintermute has appointed Ron Hammond as its new head of policy and advocacy, who brings “ten years of experience shaping crypto policy on Capitol Hill,” the company also announced. Hammond was previously the senior director of government relations and institutional engagement at the Blockchain Association and the policy lead for US Representative Warren Davidson. Hammond also authored the Token Taxonomy Act of 2021, the first bipartisan-supported crypto regulatory bill in the US.Related: Coinbase faces $400M bill after insider phishing attackIncreasingly more crypto firms have expanded into the US since President Donald Trump took office on Jan. 20 after winning the 2024 presidential election.During his campaign, Trump signaled that his administration intends to make crypto policy a national priority, bolstering expectations for more innovation-friendly crypto regulations for the next four years.At least eight large crypto firms have announced their expansion in the US so far this year, banking on growing regulatory clarity. These include Binance.US, eToro, OKX exchange, Nexo, Circle, Crypto.com and a16z, Cointelegraph reported on May 11.Related: Stablecoins seen as ideal fit for real-time collateral managementWintermute met with SEC Crypto Task ForceWintermute said it aims to contribute to the emerging regulatory framework in the US.“We’ve already met with the SEC Crypto Task Force and will continue offering technical input and contributing to key legislative efforts,” the company said, adding that these are “essential for continued institutional participation.” Meanwhile, crypto industry participants await progress on the Stablecoin Transparency and Accountability for a Better Ledger Economy (STABLE) Act.The STABLE Act passed the House Financial Services Committee in a 32–17 vote on April 2 and currently awaits scheduling for debate and a floor vote in the House of Representatives.However, a second piece of key stablecoin legislation, the Guiding and Establishing National Innovation for US Stablecoins, or GENIUS Act, initially failed to garner enough support from Democrats on May 8, prompting at least 60 top crypto founders to gather in Washington, DC, to show support.Despite the stalled stablecoin legislation, “momentum toward regulatory clarity remains active in both chambers,” Nexo dispatch analyst Iliya Kalchev told Cointelegraph.Magazine: Bitcoin to $1M ‘by 2029,’ CIA tips its hat to Bitcoin: Hodler’s Digest, April 27 – May 3
Published: 4 hours ago
Tether blacklist delay allowed $78M in illicit USDT transfers: Report
Update (May 15 at 3:10 pm UTC): This article has been updated to include comments from Tether. A lag in Tether’s wallet blacklisting process allowed over $78 million in illicit funds to be moved before enforcement actions took effect, according to a new report from blockchain compliance company AMLBot. Tether’s address blacklisting becomes effective only after a considerable delay from when the process is initiated on Ethereum and Tron, according the report published May 15.“This delay originates from Tether’s multisignature contract setup on both Tron and Ethereum, transforming what should be an immediate compliance action into a window of opportunity for illicit actors,“ the report reads.Tether’s blacklisting procedure is a multi-step process with a first transaction effectively warning of the upcoming blacklisting. First, a Tether administrator multisignature transaction submits a pending call to “addBlackList” on the USDT-TRC20 contract.This results in a public “submission” of the target address as a blacklist candidate. This is followed by a second multisignature transaction confirming the submission, resulting in an “AddedBlackList” emission, making the blacklisting effective.Related: Tether, Tron and TRM Labs jointly froze $126M USDT in 2024A warning on incoming blacklistingIn one example shared with Cointelegraph, an onchain transaction submitting a Tron address as a blacklist candidate took place at 11:10:12 UTC. The second transaction that actually enforced the action did not occur until 11:54:51 UTC on the same day, a 44-minute delay. In practice, this delay can be treated by owners of USDt about to be blacklisted as a notice to move their assets to avoid them being frozen. The report stated:“This delay between a freeze request and its on-chain execution creates a critical attack window, allowing malicious actors to front-run enforcement and move or launder funds before the freeze takes effect.“Example of USDt blacklisting transactions. Source: AMLBotThe report says that “for blockchain-savvy attackers, these delays are golden.” By tracking Tether’s calls in real time, a fraudster can be instantly alerted that their address is being targeted. When asked by Cointelegraph whether the delay is a technical limitation or just a delay in the actions of a multisignature wallet key holder, AMLBot researchers said that they cannot determine it without knowledge of Tether’s internal procedures.In a statement to Cointelegraph, a Tether spokesperson explained that “while any delay in enforcement should be examined, the idea that this represents a systemic loophole is both misleading and lacking perspective.” According to the company, it collaborates with law enforcement to freeze addresses on a daily basis. The statement continues:“Tether operates on public blockchains, where all activity is visible […] This transparency allows Tether, in collaboration with over 255 law enforcement agencies across 55 countries, to track, trace, and freeze illicit funds faster than most realize.“According to Tether, the delay cited in the report stems from its “multisignature governance model," which is said to prevent unilateral freezes and protect the system's integrity. The company admits that the model also introduces a delay on enforcement, noting that “it’s a trade-off for responsible responsiveness to a $100+ billion ecosystem,” with improvements on the way:“We are actively refining this process to work to eliminate any potential advantage for bad actors. If you think you can use Tether to move illicit funds, think again.“Related: Tether stablecoin issuer and Tron launch financial crime unitNot just theoreticalAMLBot said its data shows that over $28.5 million in USDT was withdrawn during the delay between the two transactions on the Ethereum blockchain. This amount of freeze avoidance occurred between Nov. 28, 2017, and May 12, 2025. The average amount moved during the delay exceeded $365,000.Similarly, $49.6 million was reportedly withdrawn during freeze delay windows on the Tron blockchain, resulting in a total on Ethereum and Tron of $78.1 million. Exploiting this delay on Tron is not particularly rare, according to AMLBot:“170 out of 3,480 wallets (4.88%) on Tron blockchain exploited the lag before getting blacklisted. Each of these wallets made 2–3 transfers during the delay, withdrawing: Average: $291,970.“A Tether spokesperson said that “the $76 million referenced in this report should be put in context of the more than $2.7 billion in USD₮ that Tether has successfully frozen and blocked to date.” Tether has previously promoted its ability to freeze assets as a compliance feature. In 2024, Tether, Tron, and analytics firm TRM Labs cooperated to freeze over $126 million in USDT linked to illicit activity.Still, the AMLBot report raises questions about the effectiveness and speed of those enforcement actions.Magazine: Chinese Tether laundromat, Bhutan enjoys recent Bitcoin boost: Asia Express
Published: 5 hours ago
Bitcoin mining 2025: Post-halving profitability, hashrate and energy trends
After the 2024 halving, Bitcoin mining entered its fifth epoch and block rewards were reduced from 6.25 BTC to 3.125 BTC. This forced miners to rethink their operations, optimize efficiency, cut energy costs and upgrade hardware to remain profitable. Cointelegraph Research, with insights from industry experts at Uminers, examines this transformation in its latest report. The analysis covers ASIC efficiency improvements, corporate performance, geographical expansion and new revenue models. As miners adapt, Bitcoin moves into a new era where institutional momentum and sovereign adoption could redefine its role in the global financial system.Download the full report to uncover how miners are navigating this shift and what the future holds for Bitcoin’s mining industry.The mining industry’s response to rising hashrate and shrinking marginsDespite the adverse financial impact of the halving, Bitcoin’s network hashrate has continued to climb. As of May 1, 2025, the total computational power of the network reached 831 EH/s. Earlier in the month, hashrate peaked at 921 EH/s, marking a 77% increase from the 2024 low of 519 EH/s. This rapid recovery underscores the industry's relentless drive for efficiency as larger mining firms reinvest in fleet upgrades and energy optimization to maintain profitability.The mining arms race has always revolved around power efficiency. With energy costs rising, the latest ASIC models from Bitmain, MicroBT and Canaan are further optimizing the energy required per hash. Bitmain’s Antminer S21+ delivers 216 TH/s at 16.5 J/TH, while MicroBT’s WhatsMiner M66S+ pushes immersion-cooled performance to 17 J/TH. Meanwhile, semiconductor giants TSMC and Samsung are driving the next wave of innovation, with 3-nm chips already in use and 2-nm technology on the horizon. Download the full report to uncover how miners are navigating this shift and what the future holds for Bitcoin’s mining industry.Post-halving profitability: The global shift toward low-cost energyBitcoin mining profitability has tightened significantly post-halving. Hashprice, the daily revenue per terahash per second, dropped from $0.12 in April 2024 to about $0.049 by April 2025. At the same time, network difficulty has surged to an all-time high of 123T, making it harder for miners to generate returns. To stay competitive, operations must extract maximum value from every watt of power consumed. This shift has intensified the search for cheap, reliable power, driving mining expansion into regions where energy costs remain low.Electricity pricing now dictates mining profitability. In Oman, licensed miners benefit from government-backed subsidies, securing electricity at $0.05–$0.07 per kWh, while in the UAE, semi-governmental projects operate at even lower rates of $0.035–$0.045 per kWh. These incentives have turned the region into a prime destination for institutional-scale mining. Meanwhile, in the US, where industrial power costs often exceed $0.1 per kWh, miners face shrinking margins, forcing a migration toward more cost-efficient locations. Africa, the Middle East and Central Asia have emerged as key battlegrounds in this race, offering the energy arbitrage opportunities miners need to survive.What’s next for Bitcoin mining?The 2024 halving has reinforced a hard truth: Efficiency is no longer optional; it’s a necessity. The industry is shifting toward leaner, more optimized operations, where only the most power-efficient miners can thrive. The rise of AI computing, global regulatory shifts and ongoing hardware advancements will continue to shape the sector over the next 12–18 months.Cointelegraph Research’s Bitcoin mining report: Post-halving insights and trends offers a data-driven breakdown of the key forces shaping mining profitability, infrastructure investments, and strategic decision-making.Download the full report to uncover how miners are navigating this shift and what the future holds for Bitcoin’s mining industry.This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision. This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph. Cointelegraph does not endorse the content of this article nor any product mentioned herein. Readers should do their own research before taking any action related to any product or company mentioned and carry full responsibility for their decisions.
Published: 5 hours ago
Here’s what happened in crypto today
Today in crypto, Coinbase rejected a $20 million ransom demand after insiders leaked user data in a phishing scheme, but the exchange could face a bill of up to $400 million. Huione Guarantee, suspected as the world’s largest darknet marketplace, has shut down, citing a Telegram account purge that decimated its network, and US Commodity Futures Trading Commission (CFTC) commissioner Summer Mersinger is set to become the next CEO of the crypto advocacy group Blockchain Association.Coinbase faces $400 million bill after insider phishing attackCoinbase, the world’s third-largest cryptocurrency exchange, was hit by a $20 million extortion attempt after cybercriminals recruited overseas support agents to leak user data, the company said.According to a May 15 blog post, Coinbase said a group of external actors bribed and coordinated with several customer support contractors to access internal systems and steal limited user account data.“These insiders abused their access to customer support systems to steal the account data for a small subset of customers,” Coinbase said, adding that no passwords, private keys, funds or Coinbase Prime accounts were affected.Less than 1% of Coinbase’s monthly transacting users’ data was affected by the attack, the company said.Source: CoinbaseAfter stealing the data, the attackers attempted to extort $20 million worth of Bitcoin (BTC) from Coinbase in exchange for not disclosing the breach. Coinbase refused the demand.Coinbase said it will reimburse users who were tricked into sending cryptocurrency to phishing scammers, with expected remediation and reimbursement expenses ranging from $180 million to $400 million.The crypto exchange disclosed the estimate in an 8-K filing with the US Securities and Exchange Commission on May 15, noting the expenses relate to “voluntary customer reimbursements” and other remediation efforts.Telegram shuts the “largest darknet marketplace to have ever existed”A major Chinese darknet marketplace suspected of facilitating crypto scams and cybercrime says it is ceasing operations after being targeted in a ban wave by the Telegram messaging service, upon which it operated.The internet’s largest illicit marketplace, Haowang Guarantee, formerly Huione Guarantee, saw Telegram’s ban thousands of its associated accounts on May 13. “Since all our NFTs, channels and groups were blocked by Telegram on May 13, 2025, Haowang Guarantee will cease operations from now on,” read the notice on the marketplace website.Source: ChainalysisA report from Wired said that this involved banning thousands of accounts and usernames that served as the infrastructure for the crypto crime marketplace and its vendors.Telegram spokesperson Remi Vaughn told the outlet, “communities previously reported to us by WIRED or included in reports published by Elliptic have all been taken down,” before adding that “criminal activities like scamming or money laundering are forbidden by Telegram’s terms of service and are always removed whenever discovered.” CFTC commissioner will step down to become Blockchain Association CEOSummer Mersinger, one of four commissioners currently serving at the US financial regulatory body Commodity Futures Trading Commission (CFTC), will become the next CEO of the digital asset advocacy group the Blockchain Association (BA). In a May 14 notice, the Blockchain Association said its current CEO, Kristin Smith, would step down for Mersinger on May 16, allowing an interim head of the group to work until the CFTC commissioner assumes the role on June 2. Though her term at the CFTC was expected to last until April 2028, the BA said Mersinger is set to leave the agency on May 30.The departure of Mersinger, who has served in one of the CFTC’s Republican seats since 2022, opens the way for US President Donald Trump to nominate another member to the financial regulator. Rules require that no more than three commissioners belong to the same political party. Like the Securities and Exchange Commission, the CFTC is one of the significant US financial regulators whose policies impact digital assets. Lawmakers in Congress are currently working to pass a market structure bill to clarify the roles each agency could take in overseeing and regulating crypto.New leadership at the Blockchain Association had been expected since Smith announced her departure on April 1 to become the next president of the Solana Policy Institute.
Published: 6 hours ago
Stablecoins seen as ideal fit for real-time collateral management
Cryptocurrencies and stablecoins are gaining recognition in the traditional finance (TradFi) space for their ability to streamline payments and increase efficiency in existing financial systemsIn finance, collateral management refers to the process of managing the underlying collateral securing other financial transactions, such as loans or derivatives, to mitigate credit risks and ensure smooth transactions.Digital assets like stablecoins are the “perfect” financial instrument for real-time collateral management, according to a recent pilot by DTCC Digital Assets, which suggests that digital assets, particularly stablecoins, could modernize and simplify this critical function.“Digital assets really are the perfect use case for collateral management, whether it be uncleared derivatives, clear derivatives, central counterparties, repo, or any other type of collateral,” said Joseph Spiro, product director at DTCC Digital Assets, during a panel at Consensus 2025.From left: Ian Allison, CoinDesk reporter; Jelena DDjuric, CEO of Noble; Kyle Hauptman, chairman of the National Credit Union Administration, and Joseph Spiro, digital assets product director at DTCC Digital Assets. Source: CointelegraphCollateral management requires complicated manual processes due to stringent requirements for locked-up collateral that can only be released to the appropriate parties at pre-set intervals.“All of that can be accomplished better, faster, more efficiently through digital assets and smart contracts,” Spiro said, adding that “all the manual processing can go away.”Related: Top South Korean presidential hopefuls support legalizing Bitcoin ETFsThe pilot, dubbed the “Great Collateral Experiment,” comes as US policymakers work toward clear regulatory frameworks for stablecoins.On May 14, at least 60 of the top crypto founders gathered in Washington, DC, to support the Guiding and Establishing National Innovation for US Stablecoins, or GENIUS Act. The bill initially failed to get enough support from Democrats on May 8.Coinbase CEO in Washington, DC on May 14. Source: Brian ArmstrongThe GENIUS Act seeks to establish collateralization guidelines for stablecoin issuers while requiring full compliance with Anti-Money Laundering laws.The bill stalled on May 8 after failing to gain support from key Democrats, some of whom have voiced concerns about US President Donald Trump potentially profiting from digital assets through his crypto-related ventures.Related: Ukraine strategic Bitcoin reserve bill reportedly in final stagesStablecoins can streamline lending and settlementIncorporating stablecoins into traditional fiat-backed loans could further streamline TradFi processes, according to Kyle Hauptman, chairman of the National Credit Union Administration.The programmability of stablecoins could make the loan repayment process more transparent and streamlined for all participants. It is currently a “clunky process where they settle at the end of the month,” Hauptaman said during the same panel discussion, adding:“Stablecoins and their programmability can make this vastly easier.”“We not only made life easier for credit unions to settle these things up, you could do it for smaller amounts of money, but the borrower should get a better deal here because now this thing has some of the traits of a large bond issuance. It’s now liquid,” he said.Another piece of legislation — the Stablecoin Transparency and Accountability for a Better Ledger Economy (STABLE) Act — passed the House Financial Services Committee on April 2 in a 32–17 vote. The bill awaits scheduling for debate and a floor vote in the House of Representatives. Magazine: Bitcoin to $1M ‘by 2029,’ CIA tips its hat to Bitcoin: Hodler’s Digest, April 27 – May 3
Published: 7 hours ago
Coinbase faces $400M bill after insider phishing attack
Coinbase, the world’s third-largest cryptocurrency exchange, was hit by a $20 million extortion attempt after cybercriminals recruited overseas support agents to leak user data, the company said.According to a May 15 blog post, Coinbase said a group of external actors bribed and coordinated with several customer support contractors to access internal systems and steal limited user account data.“These insiders abused their access to customer support systems to steal the account data for a small subset of customers,” Coinbase said, adding that no passwords, private keys, funds or Coinbase Prime accounts were affected.Less than 1% of Coinbase’s monthly transacting users’ data was affected by the attack, the company said.Source: CoinbaseAfter stealing the data, the attackers attempted to extort $20 million worth of Bitcoin (BTC) from Coinbase in exchange for not disclosing the breach. Coinbase refused the demand.Related: Ukraine strategic Bitcoin reserve bill reportedly in final stagesInstead, the company offered a $20 million reward for information leading to the arrest and conviction of those responsible for the scheme.Scammers often masquerade as recognizable brands to inspire a false sense of trust in their victims.US brands impersonated by scammers the most. Source: MailsuiteIn 2024, Coinbase was the most impersonated cryptocurrency brand by scammers.Related: Top South Korean presidential hopefuls support legalizing Bitcoin ETFsCoinbase will reimburse phishing attack victimsCoinbase said it will reimburse users who were tricked into sending cryptocurrency to phishing scammers, with expected remediation and reimbursement expenses ranging from $180 million to $400 million. The crypto exchange disclosed the estimate in an 8-K filing with the US Securities and Exchange Commission on May 15, noting the expenses relate to “voluntary customer reimbursements” and other remediation efforts.The attackers have been approaching the exchange’s overseas customer support agents for months, aiming to “bribe” them in exchange for customer information, said Coinbase co-founder and CEO Brian Armstrong in a May 15 X post.Source: Brian ArmstrongFollowing the attack, the exchange will strengthen its internal data management processes and relocate some of its customer support operations to avoid similar incidents.Social engineering schemes are a growing concern for Coinbase users. Blockchain security analyst ZachXBT estimated that users lost around $45 million to phishing schemes in the week leading up to May 7.Source: ZachXBTThe blockchain security analyst previously claimed that social engineering scams cost Coinbase users over $300 million annually, Cointelegraph reported on Feb. 4.Magazine: Crypto wanted to overthrow banks, now it’s becoming them in stablecoin fight
Published: 7 hours ago
Ukraine strategic Bitcoin reserve bill reportedly in final stages
Ukraine is reportedly moving closer to adopting Bitcoin as a national reserve asset, a move that could bolster its financial resilience amid the ongoing war with Russia. Lawmakers are reportedly working on a Bitcoin (BTC) national reserve proposal, with a draft bill in its final stages, according to Yaroslav Zhelezniak, a member of parliament who confirmed the plan to local media outlet Incrypted.The proposal was announced during the CRYPTO 2025 conference in Kyiv on Feb. 6. “We will soon submit a draft law from the industry allowing the creation of crypto reserves,” Zhelezniak said.Cointelegraph reached out to Zhelezniak for comment on the bill’s status but had not received a response by publication.Related: Bitcoin treasury firms driving $200T hyperbitcoinization — Adam BackBitcoin has gained international attention as a national reserve asset since the election of US President Donald Trump in November 2024. On March 7, Trump signed an executive order to establish a national Bitcoin reserve seeded with BTC confiscated from criminal cases.Source: Margo MartinA month later, Swedish MP Rickard Nordin issued an open letter urging Finance Minister Elisabeth Svantesson to consider adopting Bitcoin as a national reserve asset, citing its growing recognition as a “hedge against inflation,” Cointelegraph reported on April 11.Related: Satoshi Nakamoto turns 50 as Bitcoin becomes US reserve assetLegal challenges may delay adoptionWhile Ukraine’s push for a national Bitcoin reserve marks a potentially historic shift in crypto policy, it may require “significant legal change,” according to Kyrylo Khomiakov, regional head of CEE, Central Asia and Africa, at crypto exchange Binance.“We commend Ukraine’s ambition to establish a strategic crypto reserve,” he told Cointelegraph. “Implementing such a reserve would necessitate significant legal changes, indicating that this process will not be swift.”He added, “Another positive aspect is that this initiative will likely lead to greater regulatory clarity in Ukraine, as the government will need to articulate its stance more clearly.”Ukraine was reportedly planning to legalize cryptocurrencies in early 2025 with the finalization of a draft bill in coordination with the National Bank of Ukraine (NBU) and the International Monetary Fund (IMF), according to Daniil Getmantsev, head of the tax committee of the Verkhovna Rada.On April 8, Ukraine’s financial regulator proposed taxing certain crypto transactions as personal income with a rate of up to 23%, excluding crypto-to-crypto transactions and stablecoins.Not all voices in Ukraine’s crypto industry are optimistic about the timing of the proposal. ”The country is broke. More than 50% of the budget is in grants and loans from the European Union,” said Michael Chobanian, the founder of Ukraine-based Kuna exchange. “The population is decreasing at the fastest rate in the world. Men are kidnapped and sent to the army against their will. What kind of BTC reserves are we talking about here? This is done only to divert your attention,” Chobanian claimed.Magazine: Helping Ukraine without donating: Laura’s DeFi staking plan
Published: 9 hours ago
Senate removes Trump provisions in push to pass stablecoin bill
The US Senate could pass a key bipartisan stablecoin bill as soon as next week after removing language targeting President Donald Trump and his family’s sprawling crypto interests.Republican Senator Cynthia Lummis said onstage at an event by Coinbase’s lobbying arm, Stand With Crypto, that she thinks it's a “fair target” to have the Guiding and Establishing National Innovation for US Stablecoins Act, or GENIUS Act, passed by May 26 — Memorial Day in the US.Joining her onstage was Democratic Senator Kirsten Gillibrand, who hinted that the bill’s language was changed to scrap provisions that targeted Trump’s various crypto projects, which include memecoins, a crypto platform, a stablecoin and a crypto mining company that plans to go public, among others.“When this language comes out, people will see really good refinement, a lot of progress, on things like consumer protection, and bankruptcy protection, and ethics,” Gillibrand said. “Things beyond just ‘what’s the structure?’ and ‘what’s required for an issuer?’”Source: Brian ArmstrongSenate Democrats pulled support for the bill on May 8 and stalled its momentum, airing concerns that it wouldn’t help address multiple crypto-tied deals that will personally enrich Trump.“A lot of what President Trump is engaged in is already illegal,” Gillibrand said. “I also think his issuance of a memecoin is illegal based on current law.”“It’s literally offering anyone who wants to curry favor with the administration to just send him money — that’s about as illegal as it gets.”“I’m not so worried about this bill having to deal with all President Trump’s ethics problems. What this bill is really intended to do is regulate the entire space of stablecoins,” she added.Gillibrand said the revised bill includes “some ethics requirements,” but it was “not an ethics bill.”“If we were dealing with all President Trump’s ethics problems, it would be a very long and detailed bill,” she added.Coinbase CEO Brian Armstrong, also on stage, was hopeful the Senate would vote on the stablecoin bill “early next week.”Armstrong, whose company cozied up to Trump by donating $1 million to his inauguration fund, declined to comment when asked if the President’s memecoin could impact the passage of bipartisan crypto bills.“It’s not my place to really comment on President Trump’s activity,” he said. “What I do think is important is that this bill remains focused on stablecoins.”Crypto bills “absolutely critical” to pass before midtermsThe crypto industry is pushing for Congress to pass the GENIUS Act and a Republican-drafted crypto market structure bill before the midterm elections on Nov. 3, 2026, where all 435 House seats and a third of the 100 Senate seats are up for election.“We have a very narrow window to get legislation through between now and the midterms,” Marta Belcher, the president of the crypto lobby group the Blockchain Association, told Cointelegraph at the Consensus conference in Toronto.“I strongly suspect that window is going to close very quickly. I don't know if we're going to get another window like this to get legislation through,” she added.“It's absolutely critical that we get it through now, especially because there really is a real possibility that in the future we end up with an administration that is hostile to crypto.”The association’s communications director, Chris Jonas, added that it’s critical the bills pass before Congress takes a recess for the month of August.Related: Crypto execs flock to DC to support Senate stablecoin bill “Once you get into the calendar year of the midterms, historically not a lot of legislation moves, so that's why it’s so critical,” he explained.Trump should be on track to sign both crypto bills before the August break, according to Bo Hines, the executive director of the Presidential Council of Advisers for Digital Assets.Hines noted on stage at Consensus on May 13 that negotiations on both bills are still ongoing, but it was “the President's desire” to sign both “stablecoin legislation and market structure legislation before the August recess."Legal Panel: Crypto wanted to overthrow banks, now it’s becoming them in stablecoin fight
Published: 13 hours ago
Democrats seek suspicious activity reports linked to Trump crypto ventures
US Democrat lawmakers have sent a letter to the US Treasury demanding access to suspicious activity reports (SARs) on several Trump-backed crypto projects as part of the latest probe into the president’s digital ventures. Penned by representatives Gerald Connolly, Joseph Morelle, and Jamie Raskin, the May 14 letter asks Treasury Secretary Scott Bessent for all SARS filed since 2023 related to World Liberty Financial (WLF) and the Official Trump (TRUMP) token. Financial institutions in the US must file SARs with the Financial Crimes Enforcement Network, a bureau within the Department of the Treasury, when they detect suspicious activity, including potential money laundering or fraud. Source: Oversight Committee DemocratsThe sweeping probe asks for any SARs mentioning WinRed, America PAC, Elon Musk, political action committee, PAC, Trump, World Liberty Financial, WLF, TRUMP, MELANIA and Justin Sun, no later than May 30. The Democratic lawmakers say their probe is to “determine whether legislation is necessary to prevent violations of campaign finance, consumer protection, bribery, securities fraud, and other anti-corruption laws” and to guard against “financial misconduct connected to prospective or current federal officials.” Democrats argue WLF and Trump coin could be misusedAs part of the letter, the lawmakers argue WLF could be misused as a “vehicle for foreign influence peddling” because it served part of its token sale for foreign investors, who are “generally subject to less stringent regulation than US investors.” Justin Sun’s investment in WLF and the subsequent pause of the SEC’s lawsuit that alleged the crypto entrepreneur broke securities laws has also been flagged as a concern. Trump’s token has come under fire as well because the lawmakers argue in their letter that the identities of the coin purchasers are not publicly disclosed, which could open the door for bad actors to “curry favor with Trump” by purchasing the coin. At the same time, SARS related to Republican digital fundraising WinRed, Elon Musk’s super PAC, which poured $250 million into Trump’s election campaign, and two other PACs are being sought. Related: Trump-owned Truth Social denies it is launching a memecoinThis effort is the latest Democrat-led salvo against Trump’s crypto ventures. A group of Democratic senators reportedly sent a letter to leadership at the US Department of Justice and the Treasury Department expressing concerns about Trump’s ties to crypto exchange Binance and potential conflicts of interest in regulating the industry, according to a May 9 Bloomberg report. US Democratic lawmakers also launched a multi-angle attack on May 6, targeting Trump’s ability to profit from his crypto initiatives with two bills and a subcommittee inquiry. Magazine: Trump’s crypto ventures raise conflict of interest, insider trading questions
Published: 17 hours ago
New York has ‘outsized role to play’ in crypto ecosystem — State regulator head
Adrienne Harris, the head of the New York State Department of Financial Services (NYDFS), said New York has an “outsized role to play” in the crypto ecosystem, particularly in shaping regulatory frameworks for digital assets. During a panel on May 14 at Consensus 2025 in Toronto, she said the NY estate is frequently asked to provide guidance on regulators. “With respect to federal regulation and legislation [...] members of Congress are often coming to us [NYDFS] asking about our process, about our regulations, about guidance, how they should be thinking about legislation,” Harris said.Interview with Adrienne Harris (pictured left). Source: CointelegraphAccording to Harris, the NYDFS was “unnecessarily tough” and lacked resources in the past. Now, under her purview, she said the NYDFS is “tough but fair,” noting that the digital currency oversight team has since doubled in size.Harris took over as superintendent of the NYDFS in September 2021 after spending time working in the educational, nonprofit, and private sectors. In New York State, crypto businesses must either obtain a BitLicense or a limited-purpose trust charter.“We've added nine pieces of regulatory guidance, so it's still very tough to get a BitLicense or a limited-purpose trust charter,” Harris said. “But I think [...] the proof is in the pudding when you see that FTX, Voyager, Celsius, didn't pass our test and therefore couldn't do business.”All three of those crypto companies went bankrupt in 2022. The result was a widespread contagion in the industry and years-long legal proceedings. FTX’s founder, Sam Bankman-Fried, and Celsius Network's Alex Mashinsky were sentenced to 25 and 12 years in prison, respectively. Voyager’s founder, Steven Ehrlich, is facing legal charges for allegedly misleading customers.Related: NYC Mayor doubles down on crypto push ahead of city summitHarris “hopeful” for stablecoin legislationStablecoin legislation has been a topic at the forefront of many crypto industry advocates in 2025. Recently considered a bipartisan endeavor, it devolved into a dispute on May 8 when Democrats withdrew support for the GENIUS Act over concerns about President Trump’s crypto ventures.Still, Harris remains “hopeful” Congress will eventually pass stablecoin legislation. We've been working with Congress on all the variations of their crypto and stablecoin legislation now over the last three years almost.According to Harris, all recent legislation tied to stablecoin regulation has been reviewed by New York officials. “There isn't a version of any of those bills, be it House or Senate, R's or D's, that don't come to meet to the team to say, give us your feedback, give us your technical assistance, your insights here,” she said, adding that most of these suggestions have been incorporated into legislations.The NYDFS, according to Harrus, still wants to be “a state path for crypto companies.” Magazine: Bitcoin payments are being undermined by centralized stablecoins
Published: 22 hours ago
Crypto execs flock to DC to support Senate stablecoin bill
Crypto founders headed to Washington, DC, to meet with lawmakers ahead of another expected vote on a stablecoin bill that initially failed in the Senate, according to Coinbase CEO Brian Armstrong. In a May 14 X post from the US Capitol rotunda, Armstrong said as many as “60 [crypto] founders” had gathered in DC to support the Guiding and Establishing National Innovation for US Stablecoins, or GENIUS Act, being considered in the Senate and a draft of the market structure bill moving through the House of Representatives. The Coinbase CEO said the Senate could consider another vote on the GENIUS Act “hopefully tomorrow” after it failed to get enough support from Democrats on May 8.“Like any good negotiation, there’s a lot of details to work out at the last minute, but we’ve been stressing the urgency of this,” said Armstrong.Coinbase CEO in Washington, DC on May 14. Source: Brian ArmstrongMany Democratic lawmakers have said they will not support any crypto-related legislation without a specific carve-out for US President Donald Trump profiting from his digital asset ventures, such as his TRUMP memecoin and his family-backed company World Liberty Financial. A Democratic staffer told Cointelegraph that there had been no indication that Republicans intended to address these concerns, while a person familiar with the matter said doing so would be unconstitutional.The Senate resumed consideration of the motion to proceed to consideration of the GENIUS Act on May 12, suggesting another vote in a matter of days. Cointelegraph reached out to Coinbase for comment but had not received a response at the time of publication.Related: What are the next steps for the US stablecoin bill?Is bipartisan support for crypto possible under a Trump presidency?Republicans currently hold a slim majority in the Senate and House and will likely require Democratic support for the stablecoin and market structure bills to pass. Before the 2024 election, some Democrats voted with Republicans for crypto legislation offering clarity on regulations.Should the GENIUS bill’s sponsor and co-sponsors try to move forward with a vote without any changes, it’s unclear whether they would have enough support to clear a 60-vote majority and avoid a filibuster, which could delay or block the bill.“Despite the politics around the TRUMP memecoin and crypto investments — that has definitely made our work more complicated — I still argue that behind the scenes, you've got constructive members in both sides of the Capitol and in both political parties working to find consensus,” said Representative French Hill at the Consensus conference in Toronto on May 14.Magazine: Unstablecoins: Depegging, bank runs and other risks loom
Published: 22 hours ago
Canada ‘got it wrong’ labeling stablecoins securities — NDAX exec
Tanim Rasul, chief operating officer at Canadian crypto exchange NDAX, said Canada “got it wrong” categorizing stablecoins as securities in 2022, and the country needs to realize that every other regulatory regime is looking at stablecoins as payment instruments.Rasul made the remarks during a panel on May 13 at the Blockchain Futurist Conference in Toronto, pointing to Europe's crypto regulatory framework as a model for Canada to consider:“I’m sure the regulators are wondering if this was the right choice to approach stablecoins as a security. […] I would just say, look at MiCA, look at the way they’re approaching stablecoins. It’s a payment instrument. It should be regulated as such.”The Canadian Securities Administrators (CSA) classified stablecoins as “securities and/or derivatives” in December 2022, following “recent events in the crypto market,” such as the dramatic collapse of crypto exchange FTX just a month before.Related: What Canada’s new Liberal PM Mark Carney means for cryptoCanadian Web3 Regulation panel at Blockchain Futurist Conference. Source: CointelegraphThe agency elaborated on stablecoin rules in February and October of 2023, placing such tokens under the umbrella of “value-referenced crypto assets.”Canada’s stance on digital assets led many top crypto companies, including Binance, Bybit, OKX, and Paxos, to scale back operations in the local market. Crypto exchange Gemini also announced exit plans in September 2024. The regulatory setback, however, hasn’t stopped Canada’s digital asset market from flourishing. According to Grand View Research, the local crypto industry posted revenue of $224 million in 2024, higher than in previous years. It is expected to grow at a compound annual growth rate of 18.6% until 2030, when it is forecast to reach $617.5 million in annual revenue.Related: Bitstamp’s departure from Canada is ‘timing issue,’ says CEOStablecoins have emerged as key crypto use caseStablecoins, cryptocurrencies pegged to a fiat currency, have emerged as a key use case for digital assets. According to DefiLlama, the current market capitalization for all stablecoins is at $242.8 billion as of May 14, up 51.9% in the past 12 months.Stablecoin market cap. Source: DefiLlamaNation-states and economic blocs are increasingly working on stablecoin regulations to tackle the rising usage across the world. While the most used stablecoins are pegged to the US dollar, there is demand for stablecoins pegged to other fiat currencies.Magazine: Legal Panel: Crypto wanted to overthrow banks, now it’s becoming them in stablecoin fight
Published: 1 day ago
CFTC commissioner will step down to become Blockchain Association CEO
Update (May 14 at 6:58 pm UTC): This article has been updated to include comments from the Blockchain Association.Summer Mersinger, one of four commissioners currently serving at the US financial regulatory body Commodity Futures Trading Commission (CFTC), will become the next CEO of the digital asset advocacy group the Blockchain Association (BA). In a May 14 notice, the Blockchain Association said its current CEO, Kristin Smith, would step down for Mersinger on May 16, allowing an interim head of the group to work until the CFTC commissioner assumes the role on June 2. Though her term at the CFTC was expected to last until April 2028, the BA said Mersinger is set to leave the agency on May 30.The departure of Mersinger, who has served in one of the CFTC’s Republican seats since 2022, opens the way for US President Donald Trump to nominate another member to the financial regulator. Rules require that no more than three commissioners belong to the same political party. Like the Securities and Exchange Commission, the CFTC is one of the significant US financial regulators whose policies impact digital assets. Lawmakers in Congress are currently working to pass a market structure bill to clarify the roles each agency could take in overseeing and regulating crypto.Related: KuCoin’s settlement with CFTC in flux after Trump policy shiftNew leadership at the Blockchain Association had been expected since Smith announced her departure on April 1 to become the next president of the Solana Policy Institute. “We didn't hire a search firm because we knew we were going to know the person who was the right candidate,” the Association president, Marta Belcher, told Cointelegraph on May 14. “It was very important to us that it was someone from the crypto world.”Some of the biggest crypto firms in the US, including Coinbase, Ripple Labs and Chainlink Labs, are members of the Association. The organization “support[s] a future-forward, pro-innovation national policy and regulatory framework for the crypto economy,” according to its website.Changing the leadership at a major US financial regulatorA nominee of former US President Joe Biden, Mersinger has called for standardized crypto-related policies and said the CFTC was the “ideal regulator for the cryptocurrency spot market.” Some expected she would lead the regulator following the election of Trump and the departure of then-CFTC Chair Rostin Behnam, but Commissioner Caroline Pham took on the role in an acting capacity in January. Trump chose former commissioner Brian Quintenz to chair the CFTC in February, but his nomination has not moved through the Senate for a vote in roughly three months. Commissioner Christy Goldsmith Romero reportedly said she plans to leave the agency once Quintenz is confirmed, potentially giving Trump the chance to nominate three new commissioners to fill the five-seat panel.Any CFTC commissioner picked by the president needs a majority vote in the Senate to be confirmed for a five-year term or to fill in for a resigning member.Magazine: Crypto wanted to overthrow banks, now it’s becoming them in stablecoin fight
Published: 1 day ago
Bitcoin more of a ‘diversifier’ than safe-haven asset: Report
Bitcoin’s fluctuating correlation with US equities is raising questions about its role as a global safe-haven asset during periods of financial stress.Bitcoin (BTC) exhibited a strong negative correlation with the US stock market when analyzing the short-term, seven-day trailing correlation, according to new research from blockchain data provider RedStone Oracles, shared exclusively with Cointelegraph.Bitcoin, S&P 500, 7-day rolling correlation. Source: Redstone OraclesHowever, RedStone said that the 30-day indicator signals a “variable correlation” between Bitcoin price and the S&P 500 index, with the correlation coefficient ranging from -0.2 to 0.4.This fluctuating correlation suggests that Bitcoin “doesn’t consistently function as a true hedge for equities” due to its lack of a strong negative correlation below -0.3, which is needed for “reliable counter movement during market stress,” the report said.Bitcoin, S&P 500, 30-day rolling correlation, 1-year chart. Source: Redstone OraclesRelated: $1B Bitcoin exits Coinbase in a day as analysts warn of supply shockThe research suggests that while Bitcoin may not be a dependable hedge against stock market declines, it offers value as a portfolio diversifier.This fluctuating dynamic signals that Bitcoin often moves independently from other assets, potentially offering additional returns while other assets are struggling. Still, Bitcoin has yet to mirror the safe-haven dynamics of gold and government bonds, RedStone suggests.Related: Nasdaq-listed GDC plans to buy Bitcoin and TRUMP memecoin for $300MBitcoin needs to “mature” before decoupling from stock marketWhile Bitcoin is poised to grow into a safe-haven asset in the future, the world’s first cryptocurrency still needs to “mature” as a global asset, according to Marcin Kazmierczak, co-founder and chief operating officer at RedStone.“Bitcoin still needs to mature before decoupling from stock markets,” Kazmierczak told Cointelegraph, adding:“Increased institutional adoption will absolutely help — we’re already seeing this effect with corporate treasury investments reducing Bitcoin’s 30-day volatility and with BlackRock repetitively praising BTC as an asset in a portfolio.”Meanwhile, Bitcoin will see growing recognition as a portfolio diversifier, with an annualized return of over 230% for the past five years, which “significantly outperformed” both stocks and traditional safe-haven assets, Kazmierczak said, adding that “even a small 1–5% Bitcoin allocation can meaningfully enhance a portfolio’s risk-adjusted returns.”Source: Vetle LundeMeanwhile, Bitcoin’s declining volatility supports BTC’s growing maturity as a global financial asset. Bitcoin’s weekly volatility hit a 563-day low on April 30, a development that may signal more stable price action.Bitcoin’s price volatility fell below the realized volatility of the S&P 500 and the Nasdaq 100, signaling that investors are increasingly treating Bitcoin as a long-term investment vehicle, Cointelegraph reported on May 13.Magazine: Uni students crypto ‘grooming’ scandal, 67K scammed by fake women: Asia Express
Published: 1 day ago
Ex-SEC Chair Gary Gensler privately supported crypto — McHenry
Former US Securities and Exchange Commission (SEC) Chair Gary Gensler may not have been as hostile to crypto behind closed doors as he appeared to be in public, according to former US Representative Patrick McHenry.In a May 13 appearance on the Crypto in America podcast, McHenry revealed that during private meetings with Gensler, the former regulator expressed a far more nuanced view of digital assets.“Did he come across, or was he as anti-crypto in private as he did in public?” McHenry was asked. His response: “No… Nope.”McHenry noted that Gensler “saw the value of digital assets” and acknowledged the potential of blockchain technology during his time at the Massachusetts Institute of Technology.Gerald Gallagher, general counsel at Sei Labs, also noted that Gensler played a role in developing the concept of the airdrop during his academic work, calling it a largely forgotten chapter in his background.However, once Gensler became SEC chair, McHenry said, his stance shifted dramatically. “I had this weird, mistaken, stupid belief that he wouldn’t be that bad as SEC chair,” McHenry admitted. “And I mean, just the level of dismay.”Source: Crypto in AmericaRelated: SEC chair suggests ‘huge benefits’ in agency’s third crypto roundtableGensler’s crypto stance was “confusing”McHenry said discussions with Gensler on crypto regulation were often confusing.McHenry said conversations with Gensler about legal frameworks and content structures often started off as reasonable, but quickly became contradictory. He described how Gensler would initially agree with certain points, only to later reject the same facts he had acknowledged moments earlier.According to McHenry, Gensler’s public opposition may have been shaped more by “Senate politics and confirmation politics than anything else.”After departing the SEC on Jan. 20, Gensler returned to the Massachusetts Institute of Technology to teach fintech and AI.Under Gensler’s tenure, which started in 2021, the SEC took an aggressive regulatory stance toward crypto, bringing upward of 100 regulatory actions against industry companies.The regulatory hostility caused Gensler and his team much scrutiny and backlash from industry leaders.In December 2024, Coinbase CEO Brian Armstrong announced that the crypto exchange would sever ties with law firms employing former SEC officials involved in what he said was an effort to “unlawfully kill” the crypto industry.Source: Brian ArmstrongIn January 2025, Gemini said it wouldn’t hire any MIT graduates unless the university dropped Gensler from his teaching role.Magazine: Metric signals $250K Bitcoin is ‘best case,’ SOL, HYPE tipped for gains: Trade Secrets
Published: 1 day ago
Kima joins Mastercard sandbox to enable stablecoin card top-ups
Decentralized settlement protocol Kima has integrated into Mastercard’s sandbox program, enabling stablecoin-powered top-ups for prepaid cards directly from self-custody wallets.According to an announcement shared with Cointelegraph, Mastercard partners can now rely on Kima’s settlement infrastructure to enable their prepaid cards to be topped up with stablecoins, including USDC (USDC) and Tether’s USDt (USDT), from self-custody wallets across more than 10 blockchains. Kima CEO Eitan Katz said the integration shows that stablecoins can be practical for everyday use, removing friction and intermediaries from crypto-to-fiat conversions while expanding crypto usability.“Our goal at Kima is to eliminate barriers between digital assets and traditional finance,” Katz said.Related: Mastercard tokenized 30% of its transactions in 2024Infrastructure designed for interoperabilityKatz described Kima’s settlement system as asset-agnostic and designed to simplify cross-ecosystem payments, supporting public blockchains, private ledgers and traditional banking rails:“Kima’s asset-agnostic settlement layer is designed to abstract the complexity of transferring value across disparate ecosystems, whether that’s public blockchains, private ledgers, or even traditional banking systems.”According to the announcement, Kima’s infrastructure is aligned with Mastercard’s aim to bring stablecoins into mainstream financial usage. Katz rejects the Bitcoin and crypto hardliner vision of digital assets being contraposed to fiat currency, claiming that “crypto and fiat must coexist seamlessly to reach their full potential.”Katz explained that Kima’s solution allows easy crosschain interoperability and eliminates reliance on intermediaries, custodians or complex smart contracts. This, in turn, reportedly enhances security and efficiency for all parties involved.Related: Mastercard links with Circle, Paxos for merchant stablecoin paymentsECB includes Kima in digital euro initiativeEarlier in May, the European Central Bank (ECB) included Kima in a list of 70 private sector partners tasked with helping in digital euro innovation. The firms on the list have signed up to work with the ECB to explore digital euro payment functionalities and use cases.“The breadth and creativity of the proposals highlights the digital euro’s potential as a catalyst for financial innovation in Europe,” ECB executive board member Piero Cipollone said at the time.Source: KimaDespite Kima’s institutional partnerships, Katz told Cointelegraph that “compliance shouldn’t mean giving up control of your funds or your data.” He said that know-your-client and Anti-Money Laundering checks are handled by third-party banks and virtual asset service providers at onboarding, and Kima never has access to the data. Katz added that “once a user is cleared, every transaction carries immutable metadata tags that our protocol-level engine checks against local rules.” This, he said, covers compliance “from the European Union’s Markets in Crypto-Assets Regulation to Singapore’s regulatory guidelines — before settlement.”Katz said that “keys are kept entirely under the users’ control,” while cryptographic proofs still allow for compliance.“Institutions get a plug-and-play control layer and users enjoy true self-custody,” Katz added.Magazine: Crypto wanted to overthrow banks, now it’s becoming them in stablecoin fight
Published: 1 day ago
Crypto swapper eXch shows signs of life after post-Bybit shutdown
Once a go-to swapper for hackers and drainers, eXch was shut down by German police in April — but continued activity suggests the story isn’t over.Without Know Your Customer (KYC) checks, eXch wasn’t your typical crypto exchange. It acted more like an instant swapper, allowing bad actors and cybercriminals to fly under the radar for years.Among its clients was the Lazarus Group. The North Korean state-backed hacking unit thrust eXch into the spotlight back in February, when it used the platform to funnel some of the $1.4 billion it stole from Bybit. When Bybit traced its stolen funds to eXch, it requested assistance — but the platform refused.This led to a fierce discussion over privacy versus security, but ultimately, eXch announced it would close its doors on April 17; on April 30, German authorities made it official.But according to security firm TRM Labs, the platform may have continued operating in stealth mode after the takedown. Here’s the rise, fall and afterlife of alleged crypto laundromat eXch.eXch shuts front door, keeps back door unlockedAlongside its shutdown announcement, eXch posted a message claiming it would not facilitate criminal proceeds. The post was removed within hours, and operations quietly resumed — signs of an internal disagreement or perhaps even a calculated attempt to lower visibility, according to TRM.CSAM-related fund flows traced to eXch. Source: TRM LabsGerman authorities seized eXch’s servers and confiscated 34 million euros ($38 million) in crypto, along with more than eight terabytes of data, effectively dismantling its public-facing infrastructure.Related: North Korean spy slips up, reveals ties in fake job interview“Just like we saw with Garantex rebranding as Grinex, eXch didn’t fully die after the shutdown. It quietly kept servicing a handful of partners via API, which meant laundering activity continued even after the public takedown,” said Jeremiah O’Connor, co-founder and chief technology officer of security firm Trugard.O’Connor added that it’s not unlikely for such platforms to serve loyal customers even after seizures.EXch website visited on May 13. Source: eXch“The people behind eXch.ch took full advantage of operating across multiple countries. The domain was registered through a UK-based provider, listed Switzerland as an admin location, hosted infrastructure in France, and had servers seized in Germany,” O’Connor said.It’s still unclear if eXch will kill its API or come back under a new name. TRM said in the May 2 blog post that the platform’s remaining back-end access continued to provide anonymization infrastructure for threat actors.No KYC, pooled liquidity draws illicit funds to eXchEXch’s origins trace back to 2014, according to “Fantasy,” lead investigator at crypto insurance firm Fairside Network. In an October 2024 investigation, Fantasy identified the platform’s first public appearance as a BitcoinTalk forum account promoting automatic swaps between Bitcoin (BTC), Perfect Money and BTC-e vouchers — payment methods commonly associated with high-risk transactions. Fantasy also traced the original Bitcoin wallet tied to eXch and found it was likely funded via BTC-e, the now-defunct crypto exchange shuttered by US authorities in 2017 for its role in laundering criminal proceeds.Fantasy’s forensic research found that the modernized form of eXch emerged in 2022, when its Ethereum hot wallet was first funded. Not long after, it became a hub for prominent crypto drainers.Monkey Drainer — the first known large-scale drainer-as-a-service operator — used eXch before its retirement. Other draining service providers like Pink Drainer and Inferno Drainer also passed funds through the platform, along with several major exploiters.EXch’s modern wallets traced to accounts held at Binance and OKX. Source: Fantasy/MetaSleuthEXch required no identity verification, allowing users to move funds with anonymity. That made it an attractive tool for cybercriminals looking to clean stolen assets.“EXch managed to stay active for years — despite facilitating obvious illicit activity — because there’s still a big gap between what regulators ‘can’ do and how fast technology is moving,” Amit Levin, former investigator at Binance, told Cointelegraph.“In today’s world, anyone can launch a smart contract or run a crypto service from anywhere, often without revealing who they are. And if there’s no registration, no KYC and no one to hold accountable, enforcement becomes close to impossible.”The platform also drew confidence from threat actors by using a pooled liquidity system that blended user deposits and withdrawals, making it difficult for investigators and law enforcement to trace the flow of funds.When eXch knew and did nothingEXch denied laundering funds for North Korean crypto hackers, and in its shutdown notice, it framed the project as an attempt by privacy enthusiasts to “restore balance” in the industry. It criticized Anti-Money Laundering enforcement and condemned companies offering address risk scoring APIs as “parasites” profiting off government fear.“Service providers in the crypto space are, for the most part, not decentralized; that is, they retain control over or access to customers’ assets, as demonstrated in the case of eXch,” Gal Arad Cohen, partner at S. Horowitz & Co, told Cointelegraph.“A financial intermediary operating in the crypto sector faces risks similar to those of traditional financial service providers and should, therefore, be held to equivalent standards and regulatory requirements,” she said.The closure of eXch is a “huge win” for crypto, according to Alex Katz, CEO of security firm Kerberus. However, Katz warned that bad actors can migrate to alternative projects, like THORChain, which received a shoutout in eXch’s unapologetic farewell manifesto.In the Bybit hack, decentralized swap protocol THORChain was used as the main bridge to swap around 500,000 Ether (ETH) to Bitcoin.EXch operators also used THORChain to allegedly obfuscate trails. Source: Tanuki42EXch stated that its partners would retain access to its API for a limited time, but future operations would depend on the “new management team.” The old team recommended setting up new liquidity pools to maintain seamless functionality and said it would provide consultations.It signed off with a defiant message: “Privacy is not a crime.”German authorities reported that $1.9 billion in crypto flowed into eXch since its inception. Its operators are suspected of commercial money laundering and running a criminal trading platform.Magazine: ChatGPT a ‘schizophrenia-seeking missile,’ AI scientists prep for 50% deaths: AI Eye
Published: 1 day ago
US lawmakers call for change in corporate digital asset taxes
Two US senators are calling on Treasury Secretary Scott Bessent to “exercise [the department’s] authority” and change a provision affecting taxes on corporate holdings of digital assets.In a May 12 letter, Senators Cynthia Lummis and Bernie Moreno suggested Bessent had the authority to change the definition of “adjusted financial statement income” under existing US law in a way that could reduce what digital asset companies pay in taxes. The proposed adjustment was suggested as a way to modify a provision of the Inflation Reduction Act, signed into law in 2022.“Our edge in digital finance is at risk if US companies are taxed more than foreign competitors,” said Lummis in a May 13 X post.May 12 letter to Treasury Secretary Scott Bessent. Source: Cynthia LummisAccording to the two senators, the proposed modification would provide “relief to corporations that invest in digital assets.” Lummis has been one of the most outspoken digital asset advocates in Congress, while Moreno took office in January after crypto-backed political action committees spent roughly $40 million to support his 2024 Senate race.Related: Arizona governor kills two crypto bills, cracks down on Bitcoin ATMsThe Inflation Reduction Act, which went into effect in 2023, imposes a 15% minimum tax on companies that report more than $1 billion in profits for three consecutive years. The measure would seemingly include unrealized crypto gains and losses, leading to Lummis’ and Moreno’s calls for the Treasury Department to “act swiftly.”Senate awaiting second vote on stablecoin billThe call from the two senators came as lawmakers in the Senate are expected to consider another vote on the Guiding and Establishing National Innovation for US Stablecoins, or GENIUS Act — legislation to regulate payment stablecoins in the US. A motion for consideration failed to move forward in the Senate on May 8 due to Democratic lawmakers pushing back on Donald Trump’s ties to the crypto industry.Lummis, one of the bill’s co-sponsors, suggested that she would continue to support digital asset regulation. The Senate could take up another vote in a matter of days. Magazine: Best and worst countries for crypto taxes — plus crypto tax tips
Published: 2 days ago
What are the next steps for the US stablecoin bill?
Update (May 14 at 3:20 pm UTC): This article has been updated to include comments from a Democratic staffer.Proponents of a bill to regulate stablecoins in the US Congress will likely take up another vote on the legislation in a matter of days without responding to concerns about President Donald Trump’s financial ties to the cryptocurrency industry.The Guiding and Establishing National Innovation for US Stablecoins, or GENIUS Act, failed to get enough votes to pass in the US Senate on May 8 amid calls from some Democratic lawmakers to halt any legislation related to digital assets until Republicans could address Trump’s potential conflicts of interest. Immediately following the vote, some lawmakers from both parties suggested they could reconsider the bill as early as this week, but without agreeing on a bipartisan path forward.After the GENIUS Act failed to proceed in a 48 to 49 vote in the Senate, Majority Leader John Thune made a motion to reconsider, setting up a possible vote on the matter within days. A source familiar with the matter told Cointelegraph Republicans who backed the bill were unlikely to modify it to block Trump or any member of his administration from investing in digital assets, claiming it was beyond Congress’s authority under the Constitution. A Democratic staffer added that there had been no indication that Republicans intended to address Trump’s ties to crypto in the bill.“[...] this delay is not inherently detrimental,“ said Liat Shetret, vice president of global policy and regulation at blockchain analytics firm Elliptic. “We can expect the bill to return to the floor, with this pause giving both parties time to clarify provisions and address lawmakers’ concerns.”The Cedar Innovation Foundation, an organization tied to the political action committee (PAC) Fairshake, issued a warning to Senate leadership to “avoid political games” and pass a stablecoin bill “in the coming days.” Fairshake spent more than $131 million to support candidates in the 2024 US elections, some of whom are currently serving in the House and Senate. There are still more than 500 days until the 2026 midterms, when many members of Congress are up for reelection.On May 12, the Senate resumed consideration of the motion to proceed to consideration of the GENIUS Act, suggesting another vote soon.Related: US Treasury Secretary expresses support for crypto bills at hearingChanges to stablecoin or market structure bills?Should Republicans in the Senate reintroduce the bill without any changes, it’s unclear whether they would have enough support to clear a 60-vote majority to avoid a Democratic filibuster — a process to delay or sometimes block a vote on a bill. The Trump family’s ties to the crypto platform World Liberty Financial and its stablecoin, USD1, have raised potential corruption concerns, as has offering the top holders of his TRUMP memecoin the chance to pay for access to the president through an exclusive dinner and reception. “[...] the Republicans’ bill did nothing to address Trump’s conflict, and instead voted to hand Trump the authority to write the rules over his and his competitors’ stablecoins,” said Democratic Representative Maxine Waters in a May 6 statement. She blocked a hearing to discuss a possible digital asset market structure bill, citing concerns about Trump’s “ownership of crypto.”Democratic lawmakers have already introduced possible solutions to what they called the “biggest corruption scandal in the history of the White House” — with legislation in the House and Senate to bar members of Congress, the president, the vice president, and their families from profiting off memecoins. Senators Elizabeth Warren and Chris Van Hollen also reportedly called on the president to fully divest from USD1 before making any possible deals with foreign governments.The nonpartisan organization State Democracy Defenders Action reported in April that Trump’s crypto holdings were worth roughly $2.9 billion, which accounted for 40% of his wealth.This report came before the launch of World Liberty Financial’s stablecoin, which an Abu Dhabi-based investment firm said it would use to settle a $2 billion investment in Binance. Trump’s sons, Eric, Donald Trump Jr., and Barron, were all listed as “Web3 ambassadors” for the platform.Magazine: Trump’s crypto ventures raise conflict of interest, insider trading questions
Published: 2 days ago