This Week's Crypto Highlights
1. Hong Kong Releases Digital Asset Policy Declaration 2.0
Hong Kong has unveiled its Digital Asset Development Policy Declaration 2.0, reinforcing its commitment to becoming a global hub for digital asset innovation. The policy introduces the LEAP framework, focusing on:
- Legal and regulatory optimization
- Tokenized product diversification
- Cross-sector collaboration
- Talent development
Financial Secretary Paul Chan emphasized Hong Kong's dual approach of "prudent regulation and market innovation" to integrate digital assets with real-world economies.
2. South Korea's Top Banks Collaborate on KRW Stablecoin
Eight major Korean banks—including KB Kookmin, Shinhan, and Woori—are forming a consortium to issue a Korean Won stablecoin. Key details:
- Two models proposed: trust-based and deposit-backed
- Project timeline: Late 2025 to early 2026 launch
- Partners include Korea Financial Telecommunications & Clearings Institute
This marks Korea's first banking consortium entry into digital assets.
3. Japan Moves to Regulate Crypto Under Financial Instruments Law
Japan's Financial Services Agency (FSA) proposes to:
- Classify crypto as financial instruments
- Allow Bitcoin ETFs
- Implement 20% flat tax (vs. current 55% progressive rate)
The reforms aim to boost institutional participation while protecting investors.
Market Developments
Federal Reserve Maintains Wait-and-See Approach
Chair Jerome Powell testified that robust economic data allows the Fed to monitor inflation before considering rate cuts. No explicit signals for July policy changes.
Bhutan's Bitcoin Reserve Hits $1.3B (40% of GDP)
The Himalayan kingdom has:
- Six operational mining facilities
- Partnerships with Bitdeer
- Plans for crypto-powered tourism payments
👉 Discover how nations are adopting Bitcoin
Regulatory Shifts
| Country | Action | Impact |
|---|---|---|
| Turkey | New anti-money laundering rules for crypto | Daily stablecoin transfers limited to $3K |
| UK | Barclays bans crypto card transactions | Effective June 27, 2025 |
| UAE | $100M Web3 fund invests in WLFI token | Focus on institutional adoption |
Corporate Moves
OKX explores US IPO following its April 2025 re-entry to American markets.
Coinbase will launch CFTC-regulated perpetual futures on July 21, 2025.
Funding Spotlight
Recent notable raises:
- Zama ($57M B-round for encryption tech)
- Digital Asset ($135M for Canton network)
- GTE ($15M A-round for decentralized exchange)
👉 Explore crypto investment opportunities
FAQ: Your Crypto Questions Answered
Q: Why are Korean banks launching a stablecoin?
A: To provide regulated digital payment alternatives while leveraging blockchain efficiency.
Q: How does Japan's proposed crypto tax change benefit investors?
A: The flat 20% rate reduces tax burdens compared to the current progressive system.
Q: What triggered Barclays' crypto transaction ban?
A: Concerns over consumer debt risks and lack of investor protections.
Q: When might OKX go public?
A: While exploring a US IPO, no official timeline has been announced.
Risk Disclosure
This content is for informational purposes only. Readers must comply with local regulations regarding digital assets. Never share private keys or send funds to unverified parties.