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U.S. government enters partial shutdown, here’s how it impacts bitcoin and ether

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U.S. government enters partial shutdown, here's how it impacts bitcoin and ether

Crypto prices stayed under pressure on Friday as the U.S. government entered a partial shutdown after lawmakers missed a midnight funding deadline, adding another layer of uncertainty to a market that has already been struggling to find bids.

Bitcoin traded around $83,559, up about 1% on the day but down roughly 6.8% over the past week, according to the price screen.

Ether sat near $2,686, down about 1.9% in the past 24 hours and 9% on the week. XRP changed hands near $1.72, down about 1.6% on the day and close to 10% lower over seven days.

The shutdown itself looks short. The Senate passed a funding package, but the House is out until Monday, so the government still hits a technical lapse over the weekend.

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That timing matters for risk assets because it lands right into thin weekend liquidity and a heavy headline cycle, which may pressure bitcoin and the broader crypto market over the weekend.

There is also a clean crypto angle here that is not just “risk off.” Prediction markets have spent the past 24 hours showing how messy the definition of “shutdown” can get.

Traders on Polymarket and Kalshi were forced to think like lawyers. The government can be “shut” on paper at 12:01 a.m. and still look normal to most people for two days. That gap between legal status and real-world impact is exactly where contract wording and settlement rules start to bite.

For crypto, the shutdown headline is more like a stress test for sentiment than a direct economic shock. It keeps traders cautious, pushes people toward smaller position sizes, and makes dips feel heavier because buyers do not want to step in front of a weekend news tape.

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Crypto World

South Korea Tightens Crypto Withdrawal Delay Exemptions

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South Korea Tightens Crypto Withdrawal Delay Exemptions

South Korea’s financial regulator said it will tighten the exception rules under crypto exchanges’ withdrawal-delay system after finding that scam-linked accounts granted exemptions accounted for most voice-phishing-related losses. 

The Financial Services Commission (FSC) said Wednesday that the strengthened framework, developed with the Financial Supervisory Service (FSS) and the Digital Asset eXchange Alliance (DAXA), will impose unified standards on when users can bypass withdrawal delays. 

The regulator said exchanges had been applying their own exception criteria with no clear minimum standard, creating loopholes that let bad actors quickly move funds if they meet easy requirements such as account age or trading history. 

From June to September 2025, accounts granted withdrawal-delay exemptions made up 59% of fraudulent accounts and 75.5% of related losses at crypto exchanges, the FSC said.

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The move follows a wider South Korean push to tighten crypto exchange controls after voice-phishing abuse and operational-control failures, including fresh reforms announced this week after Bithumb’s Bitcoin (BTC) payout error.

Transfer route and protection device for voice phishing damage through virtual assets, translated to English. Source: FSC

Unified rules aim to curb misuse of withdrawal-delay exemptions

The FSC said that under the new rules, exchanges must assess factors like trading frequency, account history and deposit and withdrawal amounts when determining whether a user qualifies for a withdrawal-delay exemption. 

The regulator said the change is expected to reduce the number of users eligible for exemptions sharply. The FSC said a simulation showed the share of users eligible for exemptions would fall to around 1% under the new rules, but did not provide a baseline for comparison.

Related: South Korean brokerage Korea Investment & Securities eyes Coinone stake: Report

The FSC said it will also strengthen oversight of users granted exemptions through periodic checks, including verification of the source of funds, and by building systems to monitor suspicious withdrawal activity. 

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The regulator added that they will continue reviewing the rules to prevent new circumvention methods and adjust as needed. 

The move adds to a broader push by South Korean regulators to tighten oversight of crypto exchanges following recent incidents. 

On Tuesday, the FSC ordered exchanges to reconcile internal ledgers with actual asset holdings every five minutes after an inspection linked to the Bithumb payout error found gaps in internal controls and risk management systems.

On Jan. 29, South Korea expanded crypto licensing scrutiny to cover exchanges and major shareholders. 

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Magazine: ‘Phantom Bitcoin’ checks, Drift hack linked to North Korea: Asia Express