Crypto World
Can you buy a house with Bitcoin? The Fannie Mae order
For the first time, the United States housing system is preparing to count your Bitcoin as a real asset when you apply for a mortgage, without making you sell it first.
Summary
- Fannie Mae and Freddie Mac are moving toward recognizing verified crypto holdings in mortgage risk assessments.
- Eligible borrowers may keep their Bitcoin instead of selling it and triggering a potentially taxable transaction.
- Crypto is initially expected to count as mortgage reserves, not replace the cash required for closing costs.
- Exchange custody, valuation haircuts, and limits on crypto reserves remain important restrictions for borrowers.
The shift traces to a directive from Federal Housing Finance Agency Director William Pulte, who ordered Fannie Mae and Freddie Mac, the government-sponsored enterprises that guarantee the majority of America’s roughly 51 million mortgages, to prepare proposals for treating cryptocurrency as an asset in single-family mortgage risk assessments.
The key phrase is “without conversion to U.S. dollars.” Until now, a borrower with a hundred thousand dollars in Bitcoin had to liquidate it, triggering a taxable event and surrendering future upside, before a lender would count a cent of it. Under the new framework moving through implementation in 2026, verified crypto holdings could strengthen a mortgage application while the borrower keeps the coins. It has been called a revolutionary moment that could change homeownership forever.
It is also narrower, more conditional, and more complicated than the headlines suggest. This piece explains what the order actually does, how it would work in practice, the catches that matter, and what it really means for crypto holders who want to buy a home.
What the order actually says
Start with the precise language, because the details define both the promise and the limits.
The directive came from William Pulte, Director of the Federal Housing Finance Agency, the regulator that oversees Fannie Mae and Freddie Mac and that also installed Pulte as chairman of both companies’ boards. The order instructs each enterprise to “prepare a proposal for consideration of cryptocurrency as an asset for reserves in their respective single-family mortgage loan risk assessments, without conversion of said cryptocurrency to U.S. dollars.” Pulte framed it in explicitly political terms, tying it to President Trump’s stated goal of making the United States “the crypto capital of the world,” and adding that he wanted “people who own cryptocurrency to be able to buy homes like everyone else.”
The significance starts with who Fannie Mae and Freddie Mac are. These two government-sponsored enterprises do not lend directly to homebuyers. Instead, they buy mortgages from the lenders who originate them, bundle those loans into securities, and guarantee payments to investors, which provides the liquidity that keeps the mortgage market functioning. Because they guarantee the majority of U.S. mortgages, their underwriting rules effectively set the standard for what the entire conventional mortgage market will accept. When Fannie and Freddie change what counts as a qualifying asset, lenders across the country follow, because loans have to conform to GSE guidelines to be sold to them. So a change at this level is not a niche product tweak. It is a change to the rules of the largest mortgage market on earth.
The order marks the first formal step toward integrating digital assets into the GSEs’ underwriting frameworks. That framing, “first formal step,” is important and easy to lose in the excitement. This is a directive to prepare proposals, the opening move in a process, not a finished, live mortgage product on day one. By 2026 that process has advanced from the initial order into implementation, with the enterprises drafting guidelines and some lenders beginning to experiment, but it is an evolving framework rather than a switch that flipped overnight.
What actually changed: the “no conversion” breakthrough
To understand why this matters, you have to understand the old rule it replaces, because the entire significance is in one specific change.
Under the pre-existing guidelines, cryptocurrency was effectively invisible to mortgage underwriting unless it stopped being cryptocurrency. Fannie Mae’s selling guide required that any virtual currency a borrower wanted to use for qualifying, whether for the down payment, closing costs, or asset reserves, had to be liquidated into U.S. dollars first. The dollars then had to be “sourced and seasoned,” meaning documented as sitting in a bank account for a period of time, before they counted. In practical terms, your Bitcoin counted for nothing to a mortgage application until you sold it and parked the proceeds in a bank.
That requirement carried real costs that went beyond inconvenience. Selling crypto to qualify for a mortgage triggers a taxable event, potentially generating capital gains taxes on appreciated holdings. It forces the holder to surrender any future upside on assets they believed in enough to accumulate. And it exposes them to timing risk, having to sell at whatever the market price happens to be when they apply. For a crypto holder, the old rule said, in effect: you can use this wealth to buy a home, but only by giving up being a crypto holder.
The new framework changes exactly this. Under the directive, verified crypto holdings can be counted as reserves without conversion to dollars. The borrower keeps the coins, avoids the taxable sale, retains the upside, and still gets credit for the assets in the underwriting calculation. This is the breakthrough, and it is meaningful: it recognizes cryptocurrency as a legitimate store of wealth that can sit on a borrower’s financial statement the way stocks, bonds, and retirement accounts do, rather than treating it as something that has to be cashed out to be real. For someone whose net worth is substantially in Bitcoin or Ethereum, that is the difference between their wealth helping them qualify and being invisible.
How it would actually work
The mechanics matter, because the order does not make crypto equivalent to cash, and the conditions attached shape who actually benefits.
The most important practical point is the role crypto plays. The directive is about counting cryptocurrency as reserves, the financial cushion lenders want to see proving a borrower can keep paying the mortgage if their income is interrupted. This is distinct from using crypto directly for the down payment or closing costs, which still generally requires actual dollars that have to be sourced and seasoned. So the realistic near-term picture is not “pay for your house in Bitcoin.” It is “your Bitcoin holdings strengthen your financial profile and reserve position, helping you qualify, while you still need dollars for the actual cash to close.” That is a real benefit, especially for self-employed or crypto-wealthy borrowers whose assets are strong but whose documented income or liquid cash might otherwise fall short, but it is narrower than the headline implies.
Three conditions attach to which crypto counts. First, only assets on regulated exchanges qualify: the crypto must be evidenced and stored on a U.S.-regulated centralized exchange subject to applicable laws, so holdings on platforms like Coinbase count while other arrangements may not. Second, risk-based adjustments apply: because crypto is volatile, the GSEs are directed to apply additional risk mitigation, which in practice means haircuts. Where stocks might get a modest discount to account for market swings, crypto could face a much larger buffer, so a hundred thousand dollars in Bitcoin might be counted as only sixty or seventy thousand in reserves. Third, limits on the share of reserves: the proposals are directed to limit the portion of total reserves that can be composed of cryptocurrency, so a borrower cannot rely on crypto alone.
The honest framing, as some mortgage analysts have noted, is that even in the best case crypto is unlikely to be treated more favorably than stocks and bonds, and probably a bit less favorably given the volatility haircuts. It will not be easier than the treatment of traditional securities, and that makes sense, because it would be strange to give a volatile asset better treatment than a stable one. The realistic outcome is that crypto becomes a recognized but discounted asset class in underwriting, counted with wider guardrails than traditional holdings, which is still a major step up from being counted at zero.
The self-custody controversy
The condition that crypto must sit on a regulated exchange has provoked the sharpest criticism, and it exposes a genuine philosophical tension at the heart of the order.
The requirement is that eligible crypto be stored on a U.S.-regulated centralized exchange. The logic is verification: regulators and lenders want to be able to confirm the borrower actually owns the assets, and holdings on a regulated, KYC-compliant exchange are easy to verify through statements and account records. From an underwriting standpoint, that is a reasonable instinct. Lenders need documentary proof of assets, and a regulated exchange provides a familiar paper trail.
But it cuts against one of cryptocurrency’s foundational principles, and self-custody advocates have pushed back hard. Nick Neuman, CEO of the self-custody provider Casa, called the exchange requirement a mistake, arguing that self-custody is fundamentally about property rights, which are a core American value. His technical point is that the verification concern is solvable without forcing custody onto exchanges: thanks to cryptography, it is trivial to prove that assets held in self-custody are owned by a given individual, through cryptographic signatures that demonstrate control of the wallet without surrendering it. In other words, the order assumes that only exchange-held assets can be verified, when in fact self-custodied assets can be verified too, just by a different method that the framework does not yet accommodate.
The criticism matters beyond ideology, because a large share of serious, long-term crypto holders deliberately self-custody precisely to avoid exchange risk, the lesson hammered home by years of exchange failures. The exchange-only requirement therefore excludes exactly the cohort most committed to crypto as a long-term store of wealth, the people most likely to have substantial holdings they have held for years. It is a meaningful gap, and the hope among advocates is that the framework evolves to recognize cryptographic proof of self-custodied holdings, allowing the housing system to be forward-thinking enough to accommodate how committed holders actually store their assets. For now, though, the rule rewards keeping your crypto on an exchange, which sits in tension with the security practices the crypto community spent years promoting.
What it really means for crypto holders
Pulling it together, the order is significant, but its significance is best understood by separating what it does from what the headlines imply.
What it does, concretely: it establishes for the first time that the U.S. conventional mortgage system will recognize cryptocurrency as a legitimate asset class in underwriting, counted without forcing a sale. For a crypto holder applying for a mortgage, that means holdings on a regulated exchange can strengthen the reserve position and overall financial profile, improving the odds of qualifying, without the tax hit and lost upside of liquidating. For borrowers whose wealth is concentrated in crypto, which includes many in the industry, that removes a real barrier that previously made their assets invisible to lenders. It is a legitimization milestone, crypto taking a seat at the table alongside stocks and bonds in one of the most conservative corners of American finance.
What it does not do: it does not let you buy a house with Bitcoin in the literal sense, it does not treat crypto as favorably as cash or even as favorably as stocks, it does not count self-custodied holdings, and it did not happen all at once. The realistic version is that crypto becomes a recognized but heavily caveated asset for reserves, subject to volatility haircuts, exchange-custody requirements, and limits on what share of reserves it can comprise. The transformation is real but incremental, an opening of the door rather than a wide-open entrance.
The broader meaning is the most durable point. This is part of a wider 2026 trend of cryptocurrency being woven into the traditional U.S. financial system, alongside the spot ETFs, the advancing regulatory frameworks, and the growing institutional infrastructure. Having the entities that guarantee over half of U.S. mortgages prepare to count crypto as an asset is a profound signal of legitimization, regardless of how narrow the initial mechanics are. It says the housing system, perhaps the most important wealth-building institution in American life, now considers cryptocurrency a form of wealth worth recognizing. For a holder, the practical advice is to temper the excitement with the details: keep records, understand that exchange custody is currently required, expect volatility haircuts, and recognize that crypto will strengthen an application rather than replace the need for documented income and actual dollars to close. The door is opening. It is just opening at the measured pace that the most conservative part of the financial system always moves, and that it is opening at all is the real story.
This article is for informational purposes and does not constitute financial, investment, tax, or mortgage advice. Cryptocurrency markets are highly volatile and mortgage rules vary by lender and circumstance. The figures and analysis described reflect data available as of June 2026. Always do your own research and consult with qualified financial and mortgage professionals before making decisions.
BNY, the world’s largest custody bank, plans to support round-the-clock settlement of conventional and tokenized U.S. Treasuries in 2027, after completing an after-hours trade involving the reserves of 2 stablecoin issuers.
The bank will test tokenized Treasuries on a private blockchain by the end of the year and will extend its existing settlement network later this year to cover more of the Asian, European and U.S. trading days, according to a letter sent to clients reported by Bloomberg.
The earlier transaction involved Ripple’s RLUSD and OpenEden’s USDO with Ripple participating directly, while BNY’s cash-management business unit Dreyfus acted for OpenEden.
Tradeweb handled the trade after Fedwire Securities had stopped processing secondary-market Treasury transfers for the day, according to the report.
BNY said the transaction settled shortly afterward through existing cash rails. The securities were not tokenized, but the test instead showed that Treasury activity tied to stablecoin reserves could continue after the main U.S. settlement window closed.
RLUSD and USDO hold short-dated government debt as reserve assets. The tokens trade continuously, but the Treasuries behind them remain tied to weekday settlement windows.
That can delay reserve adjustments following large creations, redemptions or collateral calls.
Crypto “wrench” attacks—incidents where victims are coerced or harmed to obtain access to their digital assets—accelerated sharply in the first half of 2026, according to new analysis from blockchain security firm CertiK.
CertiK verified 52 wrench attacks worldwide in H1 2026, up 33.3% from 39 incidents during the same period in 2025. Home invasions emerged as the most frequent method, climbing to 20 publicly reported cases versus 1 a year earlier. The same report also found that kidnappings increased to 16 from 12, while robberies fell from five incidents to just one.
Key takeaways
- Wrench attacks rose to 52 verified incidents in H1 2026, up 33.3% year-on-year from 39 in H1 2025, according to CertiK.
- Home invasions surged to 20 cases, up from 1 a year earlier, becoming the dominant attack pattern.
- Kidnappings increased to 16 (from 12), while robberies dropped to 1 (from 5).
- Estimated financial exposure reached about $124.1 million, up from $10.5 million in H1 2025, though the figure includes more than confirmed theft.
- France accounted for 33 of 52 incidents, with Europe totaling 39, highlighting a major geographic concentration.
A shift toward physical coercion
CertiK’s report attributes part of the trend to a growing willingness by criminals to bypass purely digital defenses through direct physical pressure on victims and their families. The dramatic rise in home invasions is the clearest signal of that change: attacks that once appeared rarely in the dataset became the leading tactic during the first half of 2026.
CertiK also emphasized that its “financial exposure” number is broader than simple theft totals. The company reported that the recorded financial exposure linked to wrench attacks reached approximately $124.1 million, compared with $10.5 million a year earlier. CertiK clarified that the estimate is not restricted to confirmed stolen funds and may include ransom demands, transfers by victims, assets that were frozen or recovered, and even failed ransom attempts.
For investors and users who rely on self-custody, the implication is straightforward: traditional security guidance focused on protecting keys and accounts may not be sufficient when attackers aim to obtain control through coercion.
France dominates the verified caseload
Geographically, the report shows a concentrated pattern. CertiK said Europe accounted for 39 of the 52 verified incidents, with France alone responsible for 33—nearly two-thirds of the global total.
CertiK noted that it used a narrower methodology than French authorities. In particular, CertiK counted only publicly reported incidents that it could independently verify. That distinction matters for interpretation: the French government’s totals could be higher because they may rely on a wider set of cases than CertiK’s verification criteria.
On July 2, French Interior Minister Laurent Nuñez said authorities had recorded 77 crypto-linked kidnappings, extortion cases, or attempted extortion cases during the first half of 2026, up from 45 in the entirety of 2025. CertiK pointed to the possibility that France’s more visible crypto ecosystem contributes to the pattern, citing how data breaches and information flows can connect identities and home addresses with perceived crypto wealth.
Policy and wallet-design countermeasures
French officials have responded to the uptick with targeted enforcement and prevention efforts. In response to the threat, Nuñez said French authorities launched a dedicated prevention platform and a rapid-alert system for crypto holders and professionals. He also said emergency measures have resulted in 200 arrests.
CertiK’s recommendations, meanwhile, focus on making it harder for attackers to quickly convert coercion into irreversible transfers. The firm argued that physical coercion can undermine assumptions behind many “hold your own keys” practices, especially if a victim can be forced to act immediately.
To reduce the speed at which funds can be moved under pressure, CertiK recommended several technical and operational controls, including:
- Multisignature or multiparty computation arrangements so no single threatened party can unilaterally authorize transfers.
- Withdrawal delays to slow down transfers after authorizations are initiated.
- Spending limits to cap the impact of any coerced transaction.
- Geographically separated signers, so attackers cannot simultaneously pressure all parties needed to move funds.
These measures are designed to change the attacker’s advantage: instead of forcing victims to act immediately, they introduce friction, require multiple approvals, or create time windows that may allow victims to seek help.
Why the jump in home invasions matters
The sharp increase in home invasions suggests attackers are increasingly moving from remote scams or online compromise to scenarios where the victim’s immediate physical compliance becomes the key vulnerability. That trend also helps explain why “wrench” incidents can carry such a wide range of outcomes—ranging from transfers under duress to situations where assets are later recovered or ransom demands fail.
As regulators and law enforcement refine their response, the next test will be whether defensive practices keep pace across borders—particularly in regions where incidents are concentrated. Users should pay close attention to whether both public reporting and independently verified datasets continue to show the same pattern of escalation in the second half of 2026.
Crypto-focused asset manager Grayscale said that Bitcoin’s price may have bottomed earlier than the traditional four-year cycle, which would imply a cycle low in September or October.
Grayscale’s head of research, Zach Pandl, argued that Bitcoin (BTC) has “grown up” as an asset and is increasingly driven by macroeconomic factors.
“If the Fed forgoes rate hikes and economic growth holds up well, Bitcoin’s price may already have bottomed,” Pandl wrote in a Wednesday report.
Earlier in July, crypto brokerage K33 pointed to more than 50% of the Bitcoin supply being held at a loss as another signal of an imminent market bottom, arguing that Bitcoin’s price has historically bottomed weeks after more than half of the supply fell underwater in prior cycles.
In a June interview, Swan Bitcoin CEO Cory Klippsten told Cointelegraph that the record holdings of long-term investors, which reached an all-time high of 14.7 million Bitcoin, are another signal of an imminent Bitcoin bottom.
Bitcoin price cycles that correspond to shifts in macro backdrops. Source: Grayscale
Fed interest rate expectations, macro factors in the “driver’s seat”
Grayscale’s Pandl said that macro factors, such as the Federal Reserve’s interest rate decisions, are in the “driver’s seat” for Bitcoin price, which could “bottom when these macro factors turn around.”
The Fed’s next interest rate decision is due on July 29. Market participants are pricing in a 66% chance that the Fed will hold interest rates unchanged, down from 88% a week ago, according to the CME Group’s Fedwatch tool.
Target rate probabilities for the Fed’s July 29 meeting. Source: CMEGroup
Pandl argued that prior Bitcoin bear markets have corresponded with slowing economic growth and rising real interest rates.
Related: Hobby-level miner bags $200K solo BTC block with budget Bitaxe rig
However, regulatory uncertainty may still limit Bitcoin’s price action. In a June 26 report, Pandl said that if the CLARITY Act doesn’t pass this year, Strategy and other treasury companies may continue to further “deleverage,” causing Bitcoin to “fall moderately further.”
Other analysts are expecting a later bottom, such as Lebit Mining Pool founder Jiang Zhuoer, who predicted that Bitcoin would only bottom between October and December 2026, or about six months after Strategy’s Multiple to Net Asset Value (mNAV) found its cycle low.
Magazine: Bitcoin nearing late stages of bear market: Jamie Coutts, Real Vision
On 22 July, Alphabet reported its Q2 2026 results, with revenue rising 24% year-on-year to $119.8 billion. Google Cloud revenue surged 82% to $24.77 billion, comfortably exceeding analysts’ expectations. Search advertising generated $63.3 billion in revenue (+17%), while YouTube revenue increased 13% to $11.06 billion. Net income nearly quadrupled to $112.11 billion. However, according to the company’s financial statements, almost all of the increase was driven by unrealised revaluation gains on its private investments in Anthropic and SpaceX rather than by underlying operating performance. Meanwhile, quarterly capital expenditure doubled from a year earlier to $44.9 billion, reflecting continued investment in AI data centre infrastructure.
Technical Analysis
On the 4-hour chart of Alphabet (GOOGL Class A on FXOpen), a short-term bearish structure developed after the price reached the $404 area on 18 May. The decline lost momentum near $334. Following the reversal, the price attempted to break the trendline on 6 July but failed to move beyond the current market profile range. After another rejection from the upper boundary of the profile around $372, the stock turned lower and is now trading between the Point of Control (POC) at $355 and the lower edge of the profile near $337.
The red resistance zone around $391 could limit any recovery attempt, while continued selling pressure may shift attention towards the green support area near $329. The RSI + Moving Averages indicator currently shows readings of 39, 48, and 47. Although the RSI remains below the moving averages, the averages themselves are still coloured green and positioned in the middle of the neutral zone, suggesting that momentum remains inconclusive. Vertical volume has been relatively moderate since the price broke below the trendline, reinforcing the current lack of directional conviction.
Key Takeaways
Despite reporting a sharp increase in net income, Alphabet’s share price reaction has been relatively muted. Strong performances from Google Cloud and Search were partly offset by the fact that most of the profit growth came from a one-off investment revaluation rather than core operations. As a result, fundamental developments may continue to have a greater influence on the stock than the current technical picture in the near term.
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This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
On 22 July, Alphabet reported its Q2 2026 results, with revenue rising 24% year-on-year to $119.8 billion. Google Cloud revenue surged 82% to $24.77 billion, comfortably exceeding analysts’ expectations. Search advertising generated $63.3 billion in revenue (+17%), while YouTube revenue increased 13% to $11.06 billion. Net income nearly quadrupled to $112.11 billion. However, according to the company’s financial statements, almost all of the increase was driven by unrealised revaluation gains on its private investments in Anthropic and SpaceX rather than by underlying operating performance. Meanwhile, quarterly capital expenditure doubled from a year earlier to $44.9 billion, reflecting continued investment in AI data centre infrastructure.
Technical Analysis
On the 4-hour chart of Alphabet (GOOGL Class A on FXOpen), a short-term bearish structure developed after the price reached the $404 area on 18 May. The decline lost momentum near $334. Following the reversal, the price attempted to break the trendline on 6 July but failed to move beyond the current market profile range. After another rejection from the upper boundary of the profile around $372, the stock turned lower and is now trading between the Point of Control (POC) at $355 and the lower edge of the profile near $337.
The red resistance zone around $391 could limit any recovery attempt, while continued selling pressure may shift attention towards the green support area near $329. The RSI + Moving Averages indicator currently shows readings of 39, 48, and 47. Although the RSI remains below the moving averages, the averages themselves are still coloured green and positioned in the middle of the neutral zone, suggesting that momentum remains inconclusive. Vertical volume has been relatively moderate since the price broke below the trendline, reinforcing the current lack of directional conviction.
Key Takeaways
Despite reporting a sharp increase in net income, Alphabet’s share price reaction has been relatively muted. Strong performances from Google Cloud and Search were partly offset by the fact that most of the profit growth came from a one-off investment revaluation rather than core operations. As a result, fundamental developments may continue to have a greater influence on the stock than the current technical picture in the near term.
Buy and sell stocks of the world’s biggest publicly-listed companies with CFDs on FXOpen’s trading platform. Open your FXOpen account now or learn more about trading share CFDs with FXOpen.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Bitcoin traded near $65,400 on Thursday, down 0.3% on the day and up 1.4% on the week, per CoinDesk data.
The market stayed quiet through Alphabet’s earnings, the report the whole week had been waiting on for a read on AI spending.
Alphabet delivered a split verdict. Revenue rose 24% to $119.8 billion and cloud grew 82%, both ahead of expectations, but the company lifted its 2026 capital spending forecast again, to $195 billion to $205 billion from $180 billion to $190 billion, citing a “supply-constrained” scramble to meet AI demand.
Its stock fell after hours as investors weighed the heavier spend against slimmer free cash flow.
Alphabet’s own shareholders may not like a fatter bill, but more capital pouring into AI infrastructure is what chip stocks have rallied on. Asian chipmakers rose again on Thursday, with the Kospi up 3.6% and Samsung and SK Hynix both up more than 2% on bets they will capture some of that spending.
The majors were flat. Ether held near $1,916, XRP at $1.13 and Solana at $77, with Hyperliquid the outlier, down 11% on the week. Oil kept climbing, extending a July rally that has revived inflation worries.
The next test is the Fed on July 28 and 29.
Kakao Group is teaming up with Circle to explore how won-backed stablecoins could be integrated into South Korea’s mainstream payment and financial services. The partnership comes as regulators work through a still-evolving legal framework for stablecoins, with the government signaling further legislative progress toward a Digital Asset Basic Act.
On Thursday, Kakao, Kakao Pay, and Kakao Bank said they signed a strategic memorandum of understanding (MOU) with Circle Internet Group. Under the agreement, the companies will study how Circle’s blockchain capabilities and global payment infrastructure might be connected to Kakao’s consumer platforms and financial services.
Key takeaways
- Kakao Group’s MOU with Circle centers on integrating won-backed stablecoin payments into Kakao’s payment and banking ecosystem.
- The partners plan to explore use cases including payments, cross-border remittances, merchant settlement, and links between traditional finance systems and blockchain networks.
- They also intend to consider tokenized financial services, but provided no details on products or launch timelines.
- The deal reflects growing “readiness” among major Korean platforms while stablecoin legislation remains under debate.
Why Kakao and Circle are focusing on won-backed stablecoins
The strategic MOU is positioned as a technology and infrastructure study rather than a specific deployment. Kakao’s stated areas of focus include stablecoin payments, cross-border remittances, merchant settlement workflows, and integration pathways that connect existing financial systems to blockchain networks.
That matters for investors and users because stablecoins—particularly those pegged to local currency—are often discussed as a bridge between traditional payment rails and faster, programmable settlement. For large consumer platforms like Kakao, the core value is distribution and liquidity access: if the regulatory environment permits won-pegged tokens, partners can move quickly to build payment functionality that meets local compliance expectations.
Circle’s role, as described in the announcement, relates to providing blockchain and global payments infrastructure that can be adapted for use inside Kakao’s services. However, the MOU does not specify what token model, issuance structure, or redemption mechanism would be used, and no product roadmap was disclosed.
South Korea’s regulatory process still not settled
South Korea has been moving toward legislation for won-backed stablecoins to encourage digital payment innovation while managing risks such as reserve adequacy, redemption rights, and oversight of issuers.
According to Cointelegraph’s reporting, the government has been preparing a bill outlining requirements for stablecoin issuance, collateral management, and internal controls. At the same time, lawmakers have introduced competing proposals—reflecting a policy debate about the structure of local-currency stablecoin markets.
One of the main points of contention involves which institutions should be allowed to issue won-based stablecoins. The Bank of Korea has argued that banks should hold a majority stake in stablecoin issuers. In contrast, the Financial Services Commission has warned that eligibility limits could reduce competition and inhibit innovation.
The uncertainty has practical consequences: without clarity on issuer eligibility and governance expectations, firms can test technology but may have limited ability to launch fully compliant services. That helps explain why Kakao and Circle are starting with an infrastructure-focused MOU rather than announcing a live stablecoin offering.
A policy timeline that keeps moving—without resolving the core issue
Even as the stablecoin rules remain contested, South Korea’s legislative direction signals continued momentum. In its economic growth strategy announced on July 14, the government listed advancing the Digital Asset Basic Act among priorities for the second half of 2026, according to an announcement reported by Korea’s official website.
For market participants, this indicates that lawmakers are not stepping back from regulation—though the details affecting stablecoin issuance and supervision may still shift as agencies argue over the appropriate balance between control, competition, and systemic risk management.
With that in mind, partnerships like Kakao’s can be read as a hedge: they reduce dependence on a single final regulatory blueprint by starting integration work early, even if deployment depends on whatever the final bill requires.
Testing stablecoin-related capabilities while waiting for rules
Beyond Kakao, other financial and tech firms in South Korea have been running pilots and tests as the regulatory groundwork continues. In April, internet bank Kbank partnered with Ripple to test blockchain-based remittances, per earlier coverage by Cointelegraph. The objective there is similar to what Kakao’s MOU suggests—improving payment and cross-border settlement efficiency while navigating local compliance constraints.
In May, KB Financial Group reportedly completed a pilot focused on stablecoin issuance, offline merchant payments, and cross-border remittances via the Kaia blockchain. KB Financial Group said it planned to introduce stablecoin services once regulations take effect, again highlighting the pattern of pre-compliance experimentation followed by product rollout only when legal requirements are in place.
These efforts underscore a broader dynamic in South Korea’s crypto economy: builders and established institutions are not waiting entirely for the final text of the law. Instead, they are using pilots and infrastructure research to reduce time-to-market—aiming to be operational as soon as regulators define how won-backed stablecoins should be issued and supervised.
For now, Kakao and Circle’s next step appears to be technical exploration—payments flows, remittance connectivity, and integration with existing systems—without a stated launch date. Investors and users should watch how the stablecoin bill debate resolves, particularly around issuer eligibility and oversight, since those decisions will likely determine what “won-backed stablecoin” implementations are legally feasible in practice.
The exchange has immediately halted all new account registrations following a strategic business review by its parent company, HDR Global Trading Limited. The wind-down ends an 11-year run for the Seychelles-incorporated venue, which debuted in 2014 and pioneered the foundational plumbing for modern digital asset derivatives trading.
The wind-down forces an immediate reduction of risk across the system, because while standard trading will continue for the next few weeks, the platform will apply strict limits on Aug. 26 to stop users from opening any new positions. Between that date and the final September deadline, operators will systematically force close all remaining open contracts to ensure the market shuts down in an orderly manner.
The main challenge BitMEX faces is how to offramp user assets into fiat currencies of their choice, as network congestion on the Bitcoin blockchain could cause significant withdrawal delays. However, the company’s current proof of reserves indicates that platform liabilities fully cover customer assets.
This exit marks the end of an 11-year run for the digital asset derivatives venue, which maintained a clean security record and lost no user funds to hacks or smart-contract exploits despite facing years of intense regulatory enforcement actions by global authorities.
The news comes just three weeks after BitMEX lost its CEO, chief financial officer and head of growth.
The pound remains under pressure following the release of weaker-than-expected UK inflation data. The slowdown in inflation has strengthened expectations that the Bank of England could adopt a more accommodative policy stance in the coming months, weighing on sterling. Meanwhile, the euro continues to trade within a relatively narrow range as investors await fresh signals from the eurozone economy.
Market participants also remain cautious due to the ongoing escalation of tensions in the Middle East. The United States continues to carry out strikes on targets in Iran, supporting demand for traditional refuge assets, including the US dollar, and limiting the recovery potential of European currencies.
Attention in the coming days will focus on the preliminary Purchasing Managers’ Index (PMI) releases from Germany, France, the United Kingdom, and the eurozone, which will provide an early assessment of economic conditions at the start of the third quarter. The data are particularly important for the euro, as they could influence expectations for the European Central Bank’s next policy moves. Stronger-than-expected figures may support the single currency, while weaker readings could reinforce expectations of further ECB policy easing. In addition, the weekly US initial jobless claims report will provide another update on the health of the US labour market.
EUR/USD
EUR/USD has entered a consolidation phase after failing to test the key resistance level at 1.1500. Technical analysis suggests the pair could decline towards the 1.1330–1.1370 area, as a bearish harami pattern has formed on the daily timeframe. A renewed upward correction may become more likely only after a decisive break and close above 1.1500.
Key events for EUR/USD:
- Today at 09:45 (GMT+3): France Flash PMI
- Today at 10:20 (GMT+3): Speech by Bundesbank Executive Board member Sabine Mauderer
- Tomorrow at 10:00 (GMT+3): Germany GfK Consumer Climate Index
GBP/USD
GBP/USD is undergoing a bearish pullback after buyers failed to establish a foothold above 1.3500. A bearish harami pattern has also formed on the daily chart, increasing the likelihood of another test of the nearby support zone at 1.3320–1.3340. The bearish scenario would only be invalidated by a decisive close above 1.3400.
Key events for GBP/USD:
- Today at 13:00 (GMT+3): UK CBI Industrial Trends Orders
- Today at 15:30 (GMT+3): US Initial Jobless Claims
- Tomorrow at 11:30 (GMT+3): UK Flash Manufacturing PMI
Summary
Sterling remains under pressure following softer UK inflation data, while the euro continues to consolidate as traders await fresh economic signals from the eurozone. Over the coming days, the preliminary PMI releases are likely to be the main catalysts for European currencies, as they could reshape expectations for future policy decisions by both the European Central Bank and the Bank of England. US macroeconomic data and developments in the Middle East are also expected to remain important drivers of market sentiment.
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One of the pioneers of cryptocurrency derivatives trading and the creator of the 100x perpetual swap will permanently cease operations on September 23 after deciding to wind down the business.
The company has been active for more than 11 years, making the decision even more painful for the broader cryptocurrency industry.
Closing Down
The statement just published by BitMEX stated that the exchange will cease operations on September 23 this year at 04:00 UTC. Its parent company, HDR Global Trading Limited, said the move came after a strategic and detailed review of both the business and the crypto industry as a whole.
The trading platform has halted new account registrations and has urged existing users to close all open positions and withdraw their assets before the deadline.
BitMEX saw the light of day in 2014 and helped shape the modern crypto derivatives market. It introduced 100x leveraged perpetual swaps, a product that later became the industry standard and was eventually adopted by essentially every major crypto derivatives competitor. At its peak, BitMEX ranked among the world’s largest crypto exchanges, attracting professional traders with deep liquidity and advanced trading tools.
The statement further outlined the platform’s highly impressive security record, stating that no customers’ funds were ever lost to a hack throughout its near-decade-long existence.
What Went Wrong
Despite its growth in its initial years, US authorities went after the company’s founders in 2020 for violating anti-money laundering laws by operating the exchange without implementing adequate Know-Your-Customer (KYC) procedures. It later settled with the US, while the former CEO Arthur Hayes and other execs pleaded guilty to Bank Secrecy Act violations.
Although it remained open for years after resolving those cases, several competitors had emerged and taken a big chunk of its former market share.
BitMEX said trading will remain operational over the following months, but it will impose restrictions gradually as the shutdown approaches. After August 26, users will no longer be able to open new positions and will only be permitted to reduce existing ones. Customers will retain access to their accounts after the shutdown date (September 23) only to view balances, transaction history, and withdraw remaining assets.
The post Veteran Crypto Exchange BitMEX to Shut Down in September appeared first on CryptoPotato.
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