Key Takeaways

• FINTRAC issued a penalty of C$176,960,190 to Xeltox Enterprises Ltd. (operating as Cryptomus, formerly Certa Payments Ltd) for multiple regulatory violations
• The firm failed to file 1,068 suspicious transaction reports in July 2024 and did not report 1,518 large virtual currency transactions
• Violations were linked to child sexual abuse material, fraud, ransomware payments, and sanctions evasion
• The fine is the largest ever imposed by Canada’s financial intelligence unit, far exceeding the previous C$20 million record

What Happened?

On October 16, 2025, FINTRAC announced that it had imposed a C$176.96 million fine against Xeltox Enterprises Ltd., the operator of the Cryptomus platform based in British Columbia. The regulator cited severe non-compliance with Canada’s anti-money laundering (AML) laws.

FINTRAC has imposed an administrative monetary penalty of $176,960,190 on Xeltox Enterprises Ltd. (also operating as Cryptomus), a money services business incorporated in British Columbia. For more information, consult: https://t.co/JwNhm3DIVs pic.twitter.com/YK1SpyD6HP

— FINTRAC_Canada (@FINTRAC_Canada) October 22, 2025

In its findings, FINTRAC said Cryptomus failed to:

• Submit 1,068 suspicious transaction reports for July 2024.
• Report 1,518 transactions over the C$10,000 threshold.
• Disclose 7,557 transactions originating from Iran between July and December 2024 despite a Ministerial Directive.
• Maintain adequate compliance procedures, recordkeeping, and risk assessments.

Sarah Paquet, FINTRAC’s Director and CEO, stated:

Why This Matters?

This enforcement marks a turning point in Canada’s approach to regulating crypto-asset service providers. The massive fine demonstrates that regulators are no longer tolerating weak compliance practices in the sector.

Key risks highlighted include:

• Failure to monitor and report large or suspicious virtual currency transactions.
• Non-compliance with sanctions-related directives, particularly concerning Iran.
• Inadequate know-your-client (KYC) and ongoing monitoring protocols.
• Use of Canadian registrations by foreign shell companies with no physical presence.

In May 2024, the B.C. Securities Commission also banned Cryptomus from trading securities, showing a consistent pattern of regulatory failure.

Background & Deeper Issues

Investigations by KrebsOnSecurity and the Investigative Journalism Foundation (IJF) revealed that Cryptomus was part of a network of money services businesses (MSBs) registered at fake addresses across Canada. Their reports exposed:

• 76 foreign exchange dealers registered at the same address as Cryptomus’s parent company.
• 56 crypto exchanges using Cryptomus to process anonymous transactions.
• Sites selling illegal cybercrime services and offering untraceable crypto swaps.

This points to a wider issue of illicit crypto activity exploiting Canada’s relatively open MSB registration process.

CoinLaw’s Takeaway

I found this enforcement action to be one of the most significant signals we’ve seen in the Canadian crypto space. In my experience, regulators don’t drop fines this big unless they’re trying to make an example. If you’re running a crypto business and ignoring AML laws, you’re on a collision course with authorities.

It’s not just about this one firm. This case is a warning shot for every crypto platform operating in Canada. You need strong compliance, effective transaction monitoring, and a real presence in the country or you might be next.

The post Cryptomus Fined $177M for Failing to Flag Suspicious Crypto Transactions appeared first on CoinLaw.

Key Takeaways

• Ondo Finance is calling on the SEC to delay approval of Nasdaq’s tokenized securities proposal until more details are shared publicly.
• Concerns center on the lack of transparency around how the Depository Trust Company (DTC) will handle settlement of tokenized assets.
• Ondo warns that early access to DTC’s undisclosed systems could give larger firms unfair market advantages.
• The SEC’s decision could shape the future of tokenized finance and how blockchain integrates with existing financial markets.

What Happened?

Ondo Finance submitted a formal letter to the SEC requesting a pause on Nasdaq’s proposal to settle tokenized securities through the DTC. The startup claims the plan lacks crucial public information, particularly about how DTC’s infrastructure will work with tokenized stocks and ETFs. Ondo argues that approving the rule in its current form could jeopardize market fairness and transparency.

Today, we submitted an open letter to the SEC in response to Nasdaq’s proposed rule changes regarding the trading of tokenized securities.

Tokenization is shaping the next generation of financial infrastructure, and as a leader in real-world asset tokenization, we believe this… pic.twitter.com/IHaiOkSwsU

— Ondo Finance (@OndoFinance) October 17, 2025

Nasdaq’s Tokenization Plan Sparks Industry Debate

Nasdaq has filed a proposal, labeled SR-NASDAQ-2025-072, to begin listing and settling tokenized versions of securities such as stocks and ETFs. These digital representations would be cleared through the DTC, a central figure in U.S. securities settlement. Nasdaq believes this innovation can be rolled out without reducing investor protections.

Ondo Finance, however, sees major gaps in the process. In its letter, the company claims Nasdaq’s filing relies heavily on assumptions rather than confirmed operational details from DTC. With no public disclosure on how these tokenized settlements would function, Ondo says both regulators and competitors are being left in the dark.

Peter Curley, Ondo’s head of global regulatory affairs, emphasized that Nasdaq’s early access to DTC’s tokenization framework could create competitive imbalances. He suggested that the SEC should either push DTC to disclose more or open formal proceedings to consider rejecting the proposal outright.

Market Fairness and Investor Protection at Risk

Ondo’s criticism is not about tokenization itself. The firm supports blockchain innovation in finance, managing tokenized products like money market funds and U.S. government securities. Still, it insists that such changes must proceed with open standards, fair access, and public oversight.

The lack of public documentation about how DTC plans to handle tokenized clearing is especially problematic. Ondo believes this could allow certain large financial institutions to gain a head start, leaving smaller players behind and raising costs across the board.

Nasdaq has reportedly acknowledged that its proposal may need adjustments depending on how DTC’s systems evolve, but it has not provided a firm operational framework to support its claims.

Regulatory Pressure Intensifies

The SEC is already watching tokenization closely. Commissioner Hester Peirce recently referred to it as a “high priority,” reflecting its potential to transform the market. Still, regulators face a balancing act: enabling innovation while maintaining investor protection.

Benjamin Schiffrin, director of securities policy at Better Markets, echoed Ondo’s concerns. He cautioned against fast-tracking initiatives under the guise of innovation. “It’s not clear that investors need tokenized securities,” he said. “The SEC’s job is to protect them, not to do what the crypto industry wants.”

While Nasdaq declined to comment publicly, the pressure from Ondo and others suggests the path to regulated tokenized cryptocurrency trading will be a slow one.

CoinLaw’s Takeaway

I see this as a classic case of innovation clashing with infrastructure. In my experience, rapid tech adoption without full transparency always leads to uneven outcomes. Ondo Finance is doing the right thing by asking tough questions. If tokenized securities are going to reshape the market, then everyone, especially regulators needs a crystal-clear view of how it will all work. I found Ondo’s approach especially smart: they are not opposing tokenization, just demanding that it happens the right way. That’s how trust is built in financial innovation.

The post Ondo Finance Pressures SEC to Delay Nasdaq’s Tokenization Proposal appeared first on CoinLaw.

Key Takeaways

• France’s regulator, the ACPR, identified shortcomings in Binance’s compliance and risk controls during onsite inspections
• If Binance fails to remediate the issues, its chances of securing a MiCA license could be jeopardized
• The EU’s Markets in Crypto Assets regulation demands uniform compliance across member states, making national enforcement pivotal
• France, Austria, and Italy are lobbying for ESMA, the EU markets authority, to take direct oversight of major crypto firms

What Happened?

In recent months, the French Prudential Supervision and Resolution Authority (ACPR) has conducted onsite inspections of Binance’s operations in France. The scrutiny focused on anti money laundering (AML) and counter terrorist financing (CTF) controls. Regulators flagged gaps in Binance’s compliance programs and asked the company to strengthen its internal controls.

These inspections come amid the rollout of the EU’s Markets in Crypto Assets regulation (MiCA). The new rules require crypto firms to satisfy stricter governance, transparency, and risk management standards. Firms operating in EU member states must secure MiCA authorization to continue cross border operations.

🚨 JUST IN:#BINANCE IS UNDER INVESTIGATION FOR MONEY LAUNDERING.

FRANCE IS CONDUCTING A FULL SCALE INSPECTION TARGETING SUSPICIOUS CRYPTO TRANSACTIONS.

MAJOR CEX COLLAPSE INCOMING?? https://t.co/vZVrSH9V0D pic.twitter.com/oRbcSnVZMS

— 0xNobler (@CryptoNobler) October 17, 2025

Because France is considered one of the more rigorous national regulators, its findings carry weight not just for Binance’s operation in France but for how MiCA enforcement may unfold across Europe.

French Inspections Reveal Alarm Bells

Sources indicate that the ACPR began its review in late 2024, targeting all PSANs (Prestataires de Services sur Actifs Numériques) including Binance and Coinhouse. During those inspections, the regulator directed Binance to shore up risk management, compliance staffing, and internal controls.

While the precise deficiencies remain confidential, industry observers believe they relate to technology systems, transaction monitoring, staffing, and customer due diligence. The ACPR also shares its findings with France’s markets regulator, the AMF, which has ultimate say in approving local MiCA applications.

Failure to address these deficiencies may invite sanctions, or worse, exclusion from MiCA licensing in France.

The MiCA Clock Is Ticking

MiCA officially came into force in December 2024. Under the regulation, firms operating under legacy frameworks were granted up to 18 months to comply or reapply under the new rules. Binance has expressed its intention to apply for a MiCA license, but it has not yet revealed in which member state it plans to base its application.

Potential bases include Latvia or Malta, both of which have become operational hubs for many crypto firms. Yet, tensions among EU regulators over standards enforcement could complicate Binance’s choice.

In France, companies have until June 2026 to secure regulatory compliance and approval. So far, only a few firms, such as Deblock, GOin, Bitstack, and CACEIS (tied to Crédit Agricole) have received AMF approval.

Broader Regulatory Stakes Across the EU

France is not acting alone in pushing for stricter oversight. Along with Austria and Italy, it is advocating for the European Securities and Markets Authority (ESMA) to be granted direct supervisory control over large crypto firms. That would help prevent regulatory mismatches and “safe havens” where weaker countries offer lax enforcement.

Paris has even threatened to reject licenses issued by other states if standards are not consistent, challenging the principle of passporting embedded in MiCA.

In the crypto industry, Binance’s compliance failures (if confirmed) may set a precedent. Regulators across the EU will watch closely whether national enforcement influences licensing outcomes.

CoinLaw’s Takeaway

France’s move to flag Binance for compliance shortcomings carries outsized importance. MiCA is not just a new rulebook, it is a reboot of how crypto firms must operate in the EU. In my experience following regulation trends, firms that fail to treat enforcement seriously often find themselves squeezed out, especially under regimes like MiCA that demand uniform standards.

In this scenario, Binance is under pressure not just from France but from the future of EU regulation. If it cannot satisfy the ACPR’s demands, that may signal deeper weaknesses in how it handles compliance. And that could damage not only its standing in France but across all EU member states.

The post MiCA Pressure Mounts as France Flags Binance for Compliance Issues appeared first on CoinLaw.

Key Takeaways

• Tether froze $44.7 million in USDT from Riverstone-linked wallets at the request of Bulgarian police, sparking a legal dispute.
• Riverstone claims the freeze violated international treaty protocols, resulting in missed investment opportunities and financial damages.
• Tether has frozen over $3.2 billion in USDT globally, often cooperating with authorities to block funds linked to illicit activity.
• The case raises concerns over centralized control in stablecoins and the balance between speed and due process in freezing crypto assets.

What Happened?

Tether, the issuer of the world’s largest stablecoin, is facing a lawsuit from Texas-based Riverstone Consulting after it froze $44.7 million in USDT allegedly without following proper legal procedures. The freeze was made at the request of Bulgarian police in April 2025 and affected eight offline wallets controlled by Riverstone. The lawsuit, filed in the Southern District of New York, seeks damages and the return of the frozen assets.

🚨MistTrack Alert:

🧊On Oct 16, @Tether_to froze 22 addresses across #Ethereum and #TRON, totaling 13,408,649 $USDT. Among them:

🔹0xecbd85e318e83f0358b404b41fb73daaacbeb59e
👉10,301,346 $USDT frozen

🔹TYzDebkjMofvfWR6v7Ay1rcH7r9JjYMxQV
👉1,403,971 $USDT frozen… pic.twitter.com/ZTAohEr43t

— MistTrack🕵️ (@MistTrack_io) October 17, 2025

Tether’s Freeze Sparks Legal Controversy

Riverstone claims that Tether acted “improperly and unreasonably” by freezing the wallets based solely on a request from a local Bulgarian police department. The firm argues that under the Bulgarian International Judicial Assistance Treaty, such a request should have gone through official diplomatic and legal channels involving central authorities.

When Riverstone attempted to contact Tether, they were directed to Bulgarian police, who reportedly did not respond to inquiries. The affected wallets were held on behalf of an unnamed client, and Riverstone says the lack of communication and proper protocol has caused them to miss major investment opportunities.

The lawsuit accuses Tether of:

• Breach of fiduciary duty.
• Unjust enrichment, as Tether allegedly continues to earn interest on the assets backing the frozen USDT.
• Conversion, or the unlawful control of another party’s property.

Crypto Forensics Suggest Tainted Funds

Despite Riverstone’s legal argument, blockchain analysts point to suspicious activity linked to the frozen wallets. Notably, crypto investigator ZachXBT claimed the addresses were just a few transactions removed from known scams like BETL, Pegasus Ride, and LSSC. The wallets reportedly chain-hopped frequently across blockchains like Tron, Polygon, and Ethereum, which is often seen in attempts to launder funds.

Pattern of Tether Freezes Raises Broader Questions

This lawsuit comes just as Tether continues to ramp up its freezing activities. In September alone, Tether froze $13.4 million in USDT across 22 Ethereum and Tron addresses. The largest chunk of that was held in one address with $10.3 million, followed by another with $1.4 million.

Tether has claimed in official statements that it partners with over 290 law enforcement agencies across 59 countries. To date, the company has frozen more than $3.2 billion in USDT and blocked over 3,660 wallets. These actions are typically aimed at stopping criminal activities such as terrorism financing, fraud, and violations of international sanctions.

Some of the company’s largest freeze actions include:

• March 2025: $28 million frozen on Russian exchange Garantex.
• April 2025: $28.67 million frozen across 13 addresses.
• June 2025: $12.3 million frozen on the Tron network.

However, these actions raise a fundamental question for centralized stablecoins like Tether: How fast is too fast when freezing funds?

CoinLaw’s Takeaway

In my experience watching the stablecoin space, this lawsuit is a big deal. It shines a light on something that’s been quietly building. The immense power centralized issuers like Tether hold over users’ assets. While it’s true that bad actors use crypto for shady operations but freezing nearly $45 million based on a local police request without going through proper legal channels? That sets a dangerous precedent. If they acted too quickly here, other legitimate users might start wondering whether their funds are ever truly safe. This is a reminder that while stablecoins offer speed and utility, they’re not above the legal process. And honestly, they shouldn’t be.

The post Tether Faces Legal Heat After Freezing $44M in USDT Linked to Bulgarian Probe appeared first on CoinLaw.

Key Takeaways

• Singapore’s High Court approved WazirX’s restructuring plan after a massive $235 million hack halted its operations in July 2024.
• 95.7% of creditors voted in favor, allowing the plan to become legally binding and enable structured repayments.
• WazirX will restart platform operations and begin token distribution within 10 business days of the plan’s effective date.
• The crypto exchange has partnered with BitGo to bolster fund security and prevent future breaches.

What Happened?

The High Court of Singapore has sanctioned a restructuring scheme for WazirX, clearing the way for the beleaguered Indian crypto exchange to reopen. The approval comes after a resounding 95.7 percent of creditors voted in support of the plan, which now becomes legally binding for all stakeholders. The court’s approval marks a major milestone in WazirX’s recovery from one of the largest cyberattacks in crypto history.

📢 Scheme of Arrangement Sanctioned by the Singapore High Court

We are pleased to share that the Singapore Court has sanctioned the Scheme proposed by Zettai in HC/SUM 940/2025 (“SUM 940”) with modification, marking a decisive step forward in the recovery journey.

What Happens… pic.twitter.com/IxOrZPIKhD

— WazirX: India Ka Bitcoin Exchange (@WazirXIndia) October 13, 2025

Singapore Court’s Green Light Sets Recovery in Motion

Zettai Pte Ltd, the Singapore-based parent company of WazirX, confirmed that the court has approved the restructuring scheme with some modifications. This approval follows an earlier rejection in mid-2025, when the court had flagged concerns over transparency. Since then, Zettai worked closely with creditors and the user community to revise the proposal.

With the court’s latest verdict, WazirX can now:

• Resume trading operations within 10 business days of the plan becoming legally effective.
• Initiate structured token distributions to its scheme creditors.
• Avoid bankruptcy risks and formally recognize its liabilities.

Zettai announced that the next legal step involves filing the order with Singapore’s Accounting and Corporate Regulatory Authority (ACRA), after which all affected users will be notified about the timeline for payouts and access to funds.

A Comeback After a Devastating Hack

WazirX had suspended operations in July 2024 following a massive cyberattack that resulted in the loss of approximately $235 million worth of digital assets. Hackers exploited a vulnerability in the exchange’s multi-signature wallet system. The North Korean Lazarus Group was later identified by officials from the US, Japan, and South Korea as being responsible for the breach.

The impact was severe: trading, deposits, and withdrawals were all halted. Users were left in limbo, with the company warning that without a restructuring plan, recovery efforts could be stalled until at least 2030 due to ongoing ownership disputes.

Strengthened Security and New Custody Partnership

To reassure users and prevent similar attacks in the future, WazirX has partnered with BitGo, a globally recognized crypto custodian. The company said this step is part of a broader strategy to rebuild trust and enhance platform resilience.

“With the restart, WazirX will continue to focus on building the best platform for the Indian crypto ecosystem,” the company stated. This move echoes a growing trend in the crypto sector, where firms pursue judicially supervised restructuring as a way to regain user trust and regulatory compliance.

CoinLaw’s Takeaway

I’ve been watching crypto recoveries for a long time, and this one stands out. WazirX pulled off one of the fastest restructurings in a sector notorious for long, drawn-out collapses. In my experience, most exchanges that suffer attacks of this scale vanish or take years to stabilize. But by securing nearly unanimous creditor support and leaning on legal oversight in Singapore, WazirX has flipped the narrative.

Partnering with BitGo was a smart move too. Security isn’t just a checkbox now, it’s the core product. If they follow through on transparency and rebuild slowly, they might actually regain user confidence.

The post WazirX Restructuring Plan Approved as Crypto Exchange Eyes Comeback appeared first on CoinLaw.

Key Takeaways

• France’s central bank wants ESMA to oversee crypto firms under the EU’s MiCA framework, citing the risk of fragmented national regulation.
• Governor Villeroy de Galhau warned that dollar-backed stablecoins could weaken the euro and increase EU reliance on non-European financial systems.
• The Bank of France is advancing projects like Pontes and Appia to strengthen digital euro infrastructure and integrate tokenized assets.
• Crypto groups urged the EU not to revisit rules on multi-issuance stablecoins, warning it could harm market innovation and competitiveness.

What Happened?

The Bank of France has called on the EU to empower the Paris-based ESMA as the main regulator of the region’s crypto sector. Governor François Villeroy de Galhau voiced concerns that current rules allowing crypto firms to operate under licenses from individual member states may lead to regulatory loopholes and arbitrage. His comments come amid rising scrutiny of dollar-pegged stablecoins and growing tension over how cross-border crypto businesses are regulated in the EU.

Brussels is moving fast — not to innovate, but to regulate.
The European Securities and Markets Authority (ESMA) is set to oversee crypto firms, exchanges, and stablecoins under a tighter, EU-wide framework.#CryptoRegulation #ESMA #Blockchain pic.twitter.com/bHJtaTAKSS

— Shyft Network (@shyftnetwork) October 6, 2025

France Pushes for ESMA to Oversee Crypto Markets

At the ACPR-AMF Fintech Forum, Governor Villeroy de Galhau argued that ESMA should supervise crypto-asset issuers directly under the EU’s Markets in Crypto-Assets (MiCA) regulation. He warned that leaving oversight to national regulators risks uneven enforcement and regulatory arbitrage.

“European supervision of crypto-asset issuers, carried out by ESMA, may guarantee the consistent application of rules and reduce risks,” said Villeroy de Galhau. He emphasized that a fragmented system would jeopardize financial stability and weaken investor protection as crypto companies expand rapidly across EU borders.

The current passporting regime under MiCA allows a crypto firm licensed in one member state to operate throughout the 27-country bloc. While intended to reduce friction, this model has drawn criticism due to inconsistent regulatory standards. For example, ESMA previously flagged weaknesses in Malta’s crypto licensing process, while France’s own AMF warned of enforcement gaps.

Stablecoins and Monetary Sovereignty in the Spotlight

A major concern raised by Villeroy de Galhau is the growing dominance of USD-backed stablecoins like USDC, issued by Circle. He warned these assets could erode the euro’s role in global settlements and increase reliance on non-European platforms.

He criticized MiCA’s allowance of multi-issuance models, where companies can issue the same stablecoin inside and outside the EU while holding partial reserves locally. This could create serious legal, operational, and financial stability risks, especially during times of market stress.

The European Systemic Risk Board and the Bank of Italy have both raised similar concerns, and the European Central Bank is reportedly pushing for a ban on multi-issuance stablecoins.

In response to this growing scrutiny, several crypto and payments trade groups sent a letter to the European Commission, warning that revisiting the multi-issuance model could disrupt operations for stablecoins that dominate the market. The letter argued that such a move would set the EU back and hinder global crypto innovation.

Banque de France Bets on Digital Euro Infrastructure

Beyond regulatory concerns, France is backing innovation with digital currencies to secure the euro’s future. The Bank of France is leading initiatives such as Pontes, which allows financial institutions to settle tokenized assets in central bank money using the Eurosystem’s infrastructure or blockchain networks.

A second initiative, Appia, aims to build a platform where tokenized central bank money, deposits, and securities can interact. Villeroy de Galhau described these efforts as crucial to creating a modern, integrated capital market in Europe.

He also challenged private European banks to do their part by developing tokenized money products. “We could have both tokenized deposits and bank-issued stablecoins, but we must not end up with neither,” he said.

CoinLaw’s Takeaway

I’ve been watching the EU’s regulatory evolution for years, and this is a pivotal moment. Villeroy de Galhau is right to call out the gaps in crypto supervision, especially as big players exploit passporting to bypass stronger oversight. Putting ESMA in charge could finally bring the consistency the market needs. I also find the pushback on stablecoins overdue. The dominance of dollar-backed tokens like USDC does pose a threat to the euro’s influence. Europe needs smart regulation, not suffocating controls. And kudos to France for actually investing in infrastructure instead of just talking about it. More countries should follow that lead.

The post Bank of France Calls for Centralized EU Crypto Oversight Under ESMA appeared first on CoinLaw.

Key Takeaways

• The Ethereum Foundation has launched the Privacy Cluster, led by Blockscout founder Igor Barinov, bringing together 47 engineers and researchers.
• This initiative will support full-stack privacy tools, including the Kohaku wallet and an open-source privacy SDK.
• Privacy Cluster will coordinate with ongoing projects like Private Reads, Private Proving, and the Institutional Privacy Task Force.
• It builds upon the work of the PSE team, which has been focused on privacy since 2018 and will continue to lead early-stage R&D.

What Happened?

The Ethereum Foundation has officially introduced the Privacy Cluster, a dedicated unit to integrate privacy as a foundational feature across the Ethereum ecosystem. This new initiative is led by Igor Barinov and includes a team of 47 researchers and developers. It aims to deliver practical, scalable privacy tools for individuals and institutions, supported by the Kohaku wallet and SDK.

The Ethereum Foundation is committed to working alongside the ecosystem to make privacy a priority.

Privacy is normal. Privacy is for everyone.https://t.co/xwBT5WvwhJ

— Ethereum Foundation (@ethereumfndn) October 8, 2025

Ethereum’s Strategic Push for Privacy

The Privacy Cluster represents a formal expansion of the Ethereum Foundation’s privacy strategy. While the Privacy and Scaling Explorations (PSE) team continues to lead research and development under Andy Guzman, the new cluster will coordinate full-stack privacy implementation across the network.

Projects under the Privacy Cluster umbrella include:

• Private Reads and Writes: Enabling discreet interactions for payments, voting, and data storage.
• Private Proving: Letting users prove identity or asset origin without revealing sensitive information.
• Private Identities: Offering selective disclosure for digital identity.
• Privacy Experience: Enhancing usability to make privacy tools seamless for everyday users.
• Institutional Privacy Task Force (IPTF): Addressing compliance and privacy needs for enterprises.

At the heart of this work is Kohaku, a privacy-preserving wallet paired with an open-source SDK, intended to test and deploy privacy features in real-world scenarios. The Foundation views Kohaku as central to validating Ethereum’s ability to handle confidential transactions securely and efficiently.

Expanding on PSE’s Foundation

Since 2018, the PSE team has built a roadmap for Ethereum privacy through research and development in cryptographic tools. The Privacy Cluster builds on this legacy by integrating these tools into user-facing applications and institutional systems.

The initiative also acknowledges the rising demand for transaction privacy, citing increased use of tools like Railgun, a popular Ethereum-based mixer. The Foundation notes that while on-chain transparency has benefits, users need the option to protect their personal and financial data.

Ethereum will incorporate key tools like Semaphore, MACI, and stealth addresses to support private governance, payments, and identity verification.

Ethereum’s Privacy Vision for the Future

The Foundation emphasized that privacy must not only serve retail users but also meet enterprise-level expectations. With Ethereum positioned to secure trillions in digital value, building trust through privacy is essential.

The Institutional Privacy Task Force will help ensure new privacy technologies meet regulatory requirements without compromising user confidentiality. This approach balances transparency with discretion, supporting real-world adoption.

CoinLaw’s Takeaway

I think Ethereum’s Privacy Cluster is one of the smartest moves the Foundation has made in recent years. In my experience watching blockchain development unfold, privacy has often been an afterthought. Now, Ethereum is flipping that script by making it a core pillar.

What stands out to me is how comprehensive this initiative is. It’s not just about developing tools, but about making privacy feel normal and usable. Whether you’re a developer, a trader, or an enterprise, having control over what you share and when is a major step forward. Kohaku, the wallet and SDK, could be the most practical tool in this entire ecosystem if it’s executed well. I’ll be watching that one closely.

The post Ethereum Doubles Down on Privacy with New Full-Stack Privacy Cluster appeared first on CoinLaw.

Key Takeaways

• Coinbase is seeking a national trust charter from the OCC to operate under direct federal regulation while expanding its crypto services.
• The move is not a step toward becoming a bank, according to Coinbase, but rather a way to ensure clear oversight and innovation.
• If approved, the charter would allow Coinbase to broaden its offerings, including payments and settlement services, without needing state-by-state approval.
• This application follows a wave of similar moves by crypto firms like Circle, Ripple, Paxos, and BitGo, with Anchorage Digital being the only firm granted such a charter so far.

What Happened?

Coinbase, the largest publicly traded crypto exchange in the U.S., has applied for a national trust charter from the Office of the Comptroller of the Currency (OCC). If granted, the charter would place the firm under federal regulatory oversight and give it more flexibility to expand its services, particularly in areas like custody, payments, and settlements. The company emphasized that it does not intend to become a bank, but wants to bring more structure and confidence to its offerings.

The crypto market is global, and we need uniform national rules to protect every consumer as the market continues to evolve.

That’s why we’ve applied for a @USOCC national trust charter and the federal regulatory oversight and clarity that it provides.

— Coinbase 🛡️ (@coinbase) October 3, 2025

Why Coinbase Wants a National Trust Charter?

Coinbase currently operates its regulated custody services through Coinbase Custody Trust Company, licensed under New York’s BitLicense regime since 2015. While this model has worked, it requires Coinbase to navigate a patchwork of state-level regulations, which can slow down product development and service expansion.

By acquiring a federal trust charter, Coinbase aims to:

• Operate under a unified regulatory framework.
• Reduce complexity and compliance burdens.
• Accelerate the rollout of institutional and payment services.
• Ensure clear oversight for future innovations.

Greg Tusar, Senior Vice President of Institutional Products at Coinbase, explained the move in a blog post, stating:

Growing Institutional Demand and Market Momentum

The timing of Coinbase’s application reflects broader shifts in the regulatory and market landscape:

• The OCC recently removed a requirement for banks to seek supervisory non-objection before engaging in crypto-related activities, lowering barriers for digital asset firms.
• Lawmakers in Congress are working on legislation to clarify digital asset oversight, signaling a more stable regulatory climate ahead.
• Stablecoin trading volumes hit USD 3 trillion in August 2025, showing surging market demand and institutional interest in regulated crypto services.

Coinbase already plays a major role in connecting crypto with traditional finance. The firm has existing relationships with JPMorgan Chase, manages crypto assets for U.S. authorities, and safeguards Bitcoin holdings for ETFs backed by BlackRock and Fidelity.

Coinbase Aligns with Industry Trends

Coinbase’s decision to pursue a national trust charter is consistent with a growing trend among major crypto firms. Competitors such as Ripple, Circle, Paxos, and BitGo have also applied for similar OCC approvals. Anchorage Digital remains the only company to have secured this status to date, receiving approval in 2021.

By aligning itself with federal regulation, Coinbase hopes to reinforce its image as a compliant, forward-thinking institution that can bridge the gap between digital assets and Wall Street.

CoinLaw’s Takeaway

In my experience covering crypto regulation, this is a smart and necessary move by Coinbase. I found it particularly telling that they emphasized not wanting to become a bank. This shows they understand what customers and institutions actually need: a safe, scalable way to access crypto services without the traditional banking baggage. A national trust charter could be the key that unlocks faster innovation, better compliance, and real legitimacy in the eyes of regulators. It’s also a bold statement to policymakers that crypto firms are ready to play by the rules, as long as the rules are clear.

The post Coinbase Seeks Federal Trust Charter to Expand Crypto Services Nationwide appeared first on CoinLaw.

Key Takeaways

• Falcon Finance’s USDf reserves have been independently audited and confirmed to exceed liabilities.
• Audit was conducted under the ISAE 3000 standard by Harris & Trotter LLP.
• All reserves are held in segregated, unencumbered accounts on behalf of USDf holders.
• Falcon plans continued third-party reviews and provides weekly reserve updates for ongoing transparency.

What Happened?

Falcon Finance published its first Independent Quarterly Audit Report for USDf, confirming that the stablecoin is fully backed by reserves. The review was carried out by UK-based audit firm Harris & Trotter LLP, which verified that reserves not only match but exceed liabilities associated with USDf in circulation.

The audit underscores Falcon’s focus on transparency, institutional-grade assurance, and regulatory alignment as part of its stablecoin framework.

Independent Audit Validates USDf’s Full Collateralization

The audit report marks a major milestone for Falcon Finance, a financial platform known for building yield-generating, onchain infrastructure. According to the published findings, the entire supply of USDf tokens is fully collateralized by reserves held in segregated and unencumbered accounts. This setup ensures that the funds backing USDf remain entirely separate and accessible for users.

The audit engagement followed the International Standard on Assurance Engagements (ISAE 3000). The process included:

• Verifying ownership of wallets holding reserves.
• Assessing collateral value and sufficiency.
• Cross-checking user deposits and reserve accounts.
• Confirming reserve totals exceeded USDf liabilities.

Falcon Finance already provides weekly updates on reserve balances and token issuance through its publicly available Transparency Page. The addition of independent quarterly audits adds a layer of accountability and trust for institutions, regulators, and crypto users alike.

Strengthening Institutional Confidence in Stablecoins

Falcon’s leadership sees these audits as foundational for the future of compliant stablecoin ecosystems. Andrei Grachev, Founding Partner of Falcon Finance, stated:

“

Independent quarterly audits are essential for building trust in stablecoin infrastructure. This review confirms that USDf is not only fully collateralized but backed by a diversified reserve base designed for resilience.

Andrei GrachevFounding Partner of Falcon Finance

The company has positioned USDf not just as a stablecoin, but as a compliance-ready, transparent financial tool designed to support both decentralized finance (DeFi) users and traditional institutions. With increasing calls for regulatory oversight in the stablecoin market, Falcon’s proactive disclosure helps establish industry best practices.

Setting a Standard for Stablecoin Transparency

By releasing this audit, Falcon is setting a transparency benchmark for stablecoin issuers. It has committed to regular third-party reviews and ongoing reserve disclosures, reinforcing trust in USDf’s infrastructure.

This approach aligns with a broader industry trend where trust and verifiability are becoming crucial for long-term adoption. Falcon Finance aims to remain at the forefront of this movement by prioritizing:

• Independent validation of reserves
• Compliance-first design
• Real-time public accountability

CoinLaw’s Takeaway

In my experience watching the stablecoin space evolve, this kind of independent auditing is exactly what the sector needs. A lot of companies talk about transparency, but Falcon Finance is actually proving it. Publishing a third-party audit, holding reserves in unencumbered accounts, and offering real-time updates builds real trust. I found it especially important that they’re not just relying on internal reporting but bringing in reputable outside auditors. That’s how you win confidence from regulators, users, and institutions.

The post Falcon Finance Sets Transparency Benchmark with Verified USDf Reserves appeared first on CoinLaw.

Key Takeaways

• Brazil’s central bank has opened a public consultation on new forex regulations that would bring eFX platforms under tighter control.
• Though crypto platforms are not explicitly targeted, those facilitating international transfers or currency conversions may be impacted.
• Key proposals include mandatory licensing, data reporting, and a $10,000 transaction cap per individual transfer.
• Global crypto platforms serving Brazilian users could face compliance challenges or restrictions under the new rules.

What Happened?

The Central Bank of Brazil (BCB) has released a public consultation paper outlining proposed rules for the country’s foreign exchange (forex) sector. Although the proposals focus on electronic forex (eFX) platforms, experts warn they could also affect crypto exchanges, particularly those that support cross-border transfers or transactions in foreign fiat currencies.

Brazil just passed a law forcing age checks on digital platforms.

Framed as child protection, the “Digital ECA” opens the door to mandatory digital IDs, killing online anonymity in the process.

It’s part of a global trend: age verification as a Trojan horse for mass… https://t.co/IkpwVla1Eb

— Reclaim The Net (@ReclaimTheNetHQ) September 24, 2025

New Regulatory Rules for Forex Services

Brazil’s central bank is aiming to bring the largely unregulated forex market under its direct supervision. The proposed rules, published for public feedback until November 2, outline a series of requirements that could reshape how platforms operate:

• Mandatory licensing for all new and existing forex platforms.
• Detailed transaction data submission to the central bank.
• Use of specific on/off ramps for deposits and withdrawals.
• Transparency measures to show users the full cost of each transaction.
• A $10,000 cap per individual transaction.

These rules are designed to promote transparency, reduce risks, and ensure financial stability in Brazil’s evolving currency exchange environment.

Crypto Platforms May Be Indirectly Affected

While the central bank’s document does not mention cryptocurrencies or exchanges by name, the language of the proposal suggests that any platform facilitating currency swaps or international money transfers could fall under the new framework.

This could bring a wide range of crypto exchanges, particularly those allowing customers to exchange crypto for foreign currencies or send funds abroad into the regulatory spotlight. For instance:

• Brazilian crypto exchanges offering cross-border services may be required to apply for permits and adhere to the same data and operational standards as forex providers.
• Global crypto platforms serving Brazilian customers might have to comply with the $10,000 transaction limit or face service restrictions.

Impact on Global Crypto Operators

The potential reach of these rules could affect major international exchanges operating in Brazil. If enforced strictly, they may need to limit transaction sizes, restructure their on/off ramp processes, or even adjust their platforms to align with Brazilian compliance standards.

While these changes would not necessarily outlaw crypto trading, they would impose stricter operating conditions for platforms dealing with Brazilian users. The ripple effect could be significant, especially in a region where crypto adoption is rapidly rising due to economic uncertainty and inflation.

What This Means for Crypto Traders in Brazil?

Brazil has become a major hub for cryptocurrency activity in Latin America. As local interest in stablecoins and other digital assets grows, especially among users seeking alternatives to volatile national currencies, regulatory clarity becomes more important.

However, the proposed rules could create operational barriers for crypto traders, especially for those needing to move large amounts of capital abroad or convert crypto into foreign fiat currencies. The $10,000 cap may restrict certain activities, and compliance requirements could slow down the speed and efficiency users have come to expect.

At the same time, these rules are framed as risk management tools rather than an attempt to block innovation. If implemented with clarity and flexibility, they could provide a more stable foundation for long-term crypto growth in Brazil.

CoinLaw’s Takeaway

I see this move by Brazil’s central bank as a big step toward formalizing oversight of digital financial services, even if crypto isn’t the main target. In my experience, regulatory gray zones create uncertainty for platforms and users alike, so clearer rules, when done right can actually strengthen the ecosystem.

But here’s the catch: even without being named, crypto is being swept into the net. And that means platforms need to prepare for stricter controls, slower onboarding, and more paperwork. For Brazilian crypto users, it’s a warning sign that unlimited cross-border freedom might be coming to an end. If you’re running or using a platform that deals in foreign fiat, it’s time to take a close look at how these rules could affect your operations.

The post Brazil’s Forex Crackdown May Hit Global Crypto Platforms appeared first on CoinLaw.