OKX Europe has launched a one-way conversion feature allowing customers to deposit USDT and convert it into USDC, offering a regulated migration path as the European Union’s Markets in Crypto-Assets (MiCA) rules limit support for the world’s largest stablecoin.

According to a company announcement shared with Cointelegraph, the feature lets customers deposit Tether’s USDt (USDT) into their OKX Europe account and convert the tokens into USDC (USDC), one of the largest stablecoins available under the European Union’s MiCA framework.

Tether has not obtained authorization to issue USDT under MiCA, prompting many European platforms to restrict deposits, delist trading pairs or convert customer balances into compliant alternatives as the European Union completed the framework’s rollout on July 1.

OKX Europe said the feature is designed for customers whose existing platforms no longer accept USDT or plan to migrate their balances automatically. The exchange said conversions can be completed at the customer’s discretion rather than through a platform-imposed deadline.

The move comes even as USDT remains the dominant stablecoin globally. According to DefiLlama, Tether accounts for about 59% of the nearly $310 billion stablecoin market, with a market capitalization of roughly $184 billion, compared with about $73 billion for Circle’s USDC.

OKX Europe serves customers across 30 EU and European Economic Area countries under its MiCA license.

Source: DefiLlama

Related: ESMA adds 14 new CASPs to MiCA register as licensing slows

Why did Tether reject MiCA?

Tether has defended its decision not to seek MiCA authorization for USDT, even as the move prompted many European crypto platforms to delist or restrict the stablecoin. Since the EU’s regulatory framework began taking effect in late 2024, exchanges across the region have been shifting users toward MiCA-compliant alternatives.

Tether CEO Paolo Ardoino has repeatedly criticized MiCA, arguing its reserve requirements create unnecessary risks for stablecoin issuers by requiring a portion of reserves to be held with European credit institutions. 

In a May 2025 interview with Cointelegraph, Ardoino described the framework as “very dangerous when it comes to stablecoins,” saying Tether chose not to pursue authorization despite the likelihood that USDT would lose support on European exchanges.

The company has shown little sign of changing course. In a July 2025 post on X, Ardoino said Tether would reconsider seeking MiCA authorization only “when MiCA becomes safer for consumers and stablecoin issuers.”

Source: Paolo Ardoino

Recently, digital banking platform Revolut said it will stop supporting USDT for customers in the European Economic Area and Switzerland, giving users until Aug. 31 to sell or withdraw their holdings before automatically converting any remaining balances into their base currency.

Magazine: The British Virgin Islands are a top crypto hub no one ever talks about: Here’s why

Donald Trump-founded Trump Media announced that Wall Street trading firms will be offered paid access to the president’s Truth Social posts before they’re shared with the public — a move that could be interpreted as selling insider trading information.

Specifically, firms will be able to pay for a Truth Social interface that grants “real-time access to posts from the highest-ranking Truth Social accounts” milliseconds before they’re published online. 

Trump Media and Technology Group runs Truth Social, the social media app where President Trump’s account boasts 12.9 million followers. 

Kathleen Clark, a conflict-of-interest expert at Washington University School of Law described the new services as “more brazen corruption,” and “an improper exploitation of government power to enrich himself.”

She added, “He’s selling expedited, privileged access to information about what he is doing as president.”

Bitcoin’s path toward a potential macro bottom is once again being traced with onchain “supply in loss” timing and investor cost-basis models that suggest the market’s late-bull momentum may be fading.

In a new read of historical patterns, K33 Research highlighted that more than half of the BTC supply has been held at a loss for the first time in this bear market—an inflection point that, in past cycles, has tended to precede the final leg of drawdowns and the start of a sturdier post-bottom recovery window.

Key takeaways

• According to K33 Research, BTC supply in loss crossed 50% on June 5, marking a key bear-market threshold.
• K33 says the period from that 50% crossing to a macro bottom has ranged from 13 to 101 days in historical bear markets.
• As of July 17, CryptoQuant data shows supply in loss at 46%, implying the “countdown” is still in progress.
• CryptoQuant’s realized cap variance model (RCV) is reported to be in the bottom 6% of its historical range, with a Z-score at -2.35—consistent with late-stage bear conditions.

Why supply in loss is again driving “bottom” timing

In its H1 2026 Round-Up report, K33 Research pointed to a classic onchain metric: the share of Bitcoin held at a loss, based on investor cost-basis versus current market price.

K33 frames supply in loss as a practical yardstick for where Bitcoin often is in the lifecycle of a bear market. The firm noted that once this measure moves above 50%, the subsequent time to a macro bottom has historically been limited to a relatively defined “window”—with the shortest observed case lasting just 13 days in 2022.

In longer or more drawn-out drawdowns, the metric has taken considerably more time. K33 cited examples from prior cycles: in 2018, the decline required 23 days after the 50% supply-in-loss mark; in 2014, Bitcoin continued to drop for roughly 101 days after the same threshold was reached.

For the current cycle, K33 said the 50% crossing occurred on June 5. With about 42 days having elapsed since that point, the current “bottom window” is now described as the second-longest on record for Bitcoin among bear markets studied—an observation that matters because it suggests this drawdown phase is not yet compressed into the earliest historical end-game, even if it is moving into the later stages.

K33 also added that returns over the year after these threshold-driven periods “tend to be very solid,” reinforcing why traders and long-term investors continue to watch the supply-in-loss gauge rather than relying solely on price action.

What the latest onchain readings imply for timing

While K33 anchored the narrative to the 50% supply-in-loss break, CryptoQuant’s dashboard data provides the near-term checkpoint. In earlier commentary, Axel Adler Jr., an onchain analytics contributor on CryptoQuant, suggested supply in loss was roughly “two months away” from levels historically associated with bear-market bottoms.

As of July 17, CryptoQuant data puts supply in loss at 46%. Combined with the June 5 crossing reported by K33, that difference helps explain why analysts are still treating the move as a countdown rather than a completed cycle signal: the market is below the historical 50% threshold only after having crossed it, and the current reading indicates the “loss-heavy” ownership phase is easing but not yet fully resolved.

For investors, the key is not the exact day count but the relationship between supply-in-loss behavior and how markets tend to transition from capitulation-heavy distribution toward stabilization. If the metric continues to normalize in line with past bear-market arcs, it supports the notion that risk may be tilting toward the later stages of the drawdown rather than the beginning of a fresh leg lower.

Cost-basis models add a “late bear market” signal

Beyond supply in loss timing, CryptoQuant also pointed to an investor cost-basis indicator it described as showing rare readings. The model in focus is realized cap variance (RCV), which compares realized cap to market cap and then tracks that spread relative to its rolling historical distribution.

In a CryptoQuant QuickTake blog post published on Thursday, contributor Crazzyblockk explained that RCV is designed to isolate how stretched or compressed investor cost basis has become versus current valuation, using the variance itself rather than price alone.

“When that variance compresses into deeply negative z-score territory, the emotional premium built during rallies has largely been priced out. The metric doesn’t read narrative, it reads the distribution of capital.”

The same post said the RCV currently sits in the bottom six percent of its historical range. It also highlighted the standardized Z-score value at -2.35, describing this as an indication that Bitcoin may be in the later stages of a bear market.

CryptoQuant’s commentary went further by noting precedent: the post reported that previous stretches spent extended time below a -2.0 Z-score—citing late 2018, mid-2022, and early 2015—before being associated with forward twelve-month returns above 75%. The historical comparison matters because it positions the present reading not just as “bear market,” but specifically as a regime that has tended to precede substantial improvement after the bottom phase.

The most extreme example referenced was a Z-score of -4.68 in November 2018, which the post said landed almost exactly on Bitcoin’s cycle bottom near $3,792.

What to watch next as the “countdown” unfolds

For now, the most actionable takeaway is that two independent onchain lenses—K33’s supply-in-loss threshold timing and CryptoQuant’s realized cap variance regime—are pointing to the same broad phase: late-stage bear market conditions rather than an early, fresh destabilization. Readers should watch how quickly supply in loss continues to drift down from the 50% crossing and whether RCV remains pinned in deeply negative Z-score territory, since those are the signals most likely to confirm whether the cycle bottom window is narrowing or extending further.

Cardano developer Input Output is handing control of core blockchain infrastructure to outside teams, reducing the network’s dependence on the company that built it, Input Output announced Friday.

Input Output said the handover is the next phase of Cardano’s decentralization. It covers Cardano’s Haskell node, Plutus smart-contract platform, Daedalus wallet, Hydra scaling technology and developer relations.

Specialist companies include Se7en Labs, a development agency specializing in Solana blockchain infrastructure, and Teragone, a specialist software development and cryptographic research team that leads the development of Mithril, a stake-based signature protocol for the Cardano blockchain. Both will take responsibility for some of the components. The handover will begin in August and continue into 2027.

Cardano has already moved protocol decisions and governance to its community. Input Output said the next step is to spread responsibility for developing and maintaining the software.

“The last stage of the Voltaire era is full decentralization of node and reference blueprint development,” Input Output CEO and Cardano founder Charles Hoskinson said in the statement.

Bitcoin price fell below $63,000 after fresh US attacks on Iran lifted oil and the dollar, while renewed election claims from President Donald Trump added pressure on risk assets.

According to data from crypto.news, Bitcoin (BTC) dropped 3.5% to an intraday low of around $62,500 on July 17 before recovering slightly to around $63,150, leaving the asset down nearly 2.4% on the day. US stock futures also extended their losses as traders assessed another round of military action and its possible economic impact.

Iran strikes have renewed pressure on Bitcoin

US Central Command confirmed that American forces had attacked Iranian military positions for a sixth consecutive night. According to CENTCOM, the operation hit coastal surveillance systems, air-defense sites, logistics infrastructure and maritime assets.

Reports from the region also indicated that US forces struck transport links near Bandar Abbas, including the Bandar Khamir overpass, two other bridges in Hormozgan Province and a railway station connected to Shahid Rajaei port. Those reports had not been independently confirmed at the time of writing.

Iran responded with attacks across the Gulf, according to initial reports, including a strike targeting Qatar, where the US operates Al Udeid Air Base. Further attacks were reported in Bahrain, Jordan, Kuwait and Iraq as the conflict continued to spread through the region.

Speaking before the latest operation, White House press secretary Karoline Leavitt claimed Tehran was still seeking an agreement with Washington because of the damage caused by US forces.

“Iran very much continues to talk to the United States of America and express that they want to make a deal with us because they are suffering devastating blows on behalf of our United States military.”

Against that backdrop, the US Dollar Index rose to 100.79, while oil traded near $80 per barrel on July 17. A stronger dollar can weigh on dollar-priced assets, while higher energy costs may complicate the inflation outlook and weaken demand for riskier investments.

Bitcoin now faces a decisive $63,167 support test

Technical pressure has increased as Bitcoin trades near the 78.6% Fibonacci retracement at $63,167. The daily candle briefly broke that level below, though buyers prevented a close near the session low.

The daily chart shows that rebound attempts have repeatedly stalled between $65,000 and $66,000. If BTC confirms a breakdown below $63,167, the June range floor near $57,779 would become the next major support, while a recovery must first clear the 61.8% Fibonacci level at $67,396.

Momentum indicators continue to favor sellers. Aroon Down stood at 85.71%, compared with Aroon Up at 0%, while the Average Directional Index registered 23.41, pointing to a bearish trend with moderate strength.

Political uncertainty added another source of pressure after Trump used a White House address to accuse China of interfering in the 2020 presidential election. Trump claimed declassified intelligence showed that Chinese actors stole files containing data on 220 million US voters, though US intelligence assessments have not found evidence that foreign activity changed votes or other technical aspects of the election. The Guardian reported that China and US intelligence officials have rejected Trump’s core allegation.

During the address, Trump also urged Congress to pass the SAVE America Act, which includes voter identification and proof-of-citizenship requirements. Democratic lawmakers, including Chuck Schumer, Jim McGovern, Elizabeth Warren and Bernie Sanders, accused the president of reviving disputed election claims instead of addressing household costs, housing and healthcare.

Despite the sell-off, BlackRock CEO Larry Fink recently expressed a bullish 12-month view on crypto and described Bitcoin as stable around current levels.

The chart, however, places the immediate focus on whether buyers can defend $63,167 as geopolitical and political risks continue to test market sentiment.

More than $1 out of every $10 in the world’s tokenized US Treasuries is issued through entities incorporated in the British Virgin Islands, according to BVI Finance. In its June “Destination Digital” report, the organization estimates that BVI-linked firms accounted for roughly $1.5 billion of a $14.98 billion global tokenized Treasuries market as of June 1—making the small Caribbean territory the second-largest jurisdiction after the United States.

The BVI’s rise appears tied less to headline “tax haven” narratives and more to the legal and regulatory scaffolding that tokenization projects need to operate within institutional-grade workflows. At the same time, industry usage of the territory is nuanced: most companies do not physically relocate to the islands; they often use BVI entities as the legal layer around token issuers, treasury vehicles, holding companies, or special purpose vehicles (SPVs).

Key takeaways

• The BVI is behind about $1.5 billion of $14.98 billion in global tokenized US Treasuries (as of June 1), placing it just behind the US by issuer jurisdiction, per BVI Finance.
• BVI selection is driven primarily by regulatory clarity and legal certainty, not by taxes, according to advisers and executives interviewed in the underlying reporting.
• Regulatory capacity is a differentiator: the BVI’s VASP regime (introduced via the VASP Act in 2023) is overseen by the BVI Financial Services Commission with an application process aimed at faster timelines.
• The territory functions as a corporate home, not a global engineering hub: multiple firms incorporated in the BVI conduct operations elsewhere.
• BVI-linked stablecoin activity and tokenized securities volume are notable, including a high number of tokenized securities tracked in the RWA.xyz dataset, according to Bernstein Research.

Tokenized Treasuries and the “legal home” effect

BVI Finance’s “Destination Digital” report highlights how concentrated the issuance of tokenized US Treasuries has become by jurisdiction. As of June 1, BVI-linked entities represented approximately $1.5 billion out of $14.98 billion in the global market, based on data compiled for the report.

Beyond Treasuries, the same reporting frames the BVI as a broader digital asset jurisdiction. It cites a stablecoin market cap of about $1.2 billion held in BVI-linked addresses and an estimated 28,000 stablecoin asset holders. It also points to regulatory momentum: more than 25 virtual asset service providers (VASPs) have been approved under the BVI’s VASP regime.

In the tokenized securities category, Bernstein Research data referenced by the report suggests the BVI hosts 305 tokenized securities in the RWA.xyz dataset—the highest count of any single jurisdiction. Together, these figures support the view that the BVI has become one of the leading destinations for real-world asset tokenization activity.

Still, the article’s core caveat is important for readers: tokenization is designed to be borderless, and projects can choose where to incorporate without moving their operational footprint. In practice, many digital asset firms treat the BVI as the legal base while teams, infrastructure, and day-to-day operations remain distributed globally.

Regulation and legal certainty outweigh tax assumptions

For years, offshore jurisdictions in the Caribbean have often been described primarily through a tax lens. But advisers and industry executives interviewed in the underlying reporting say that assumption doesn’t match how many tokenization-focused firms decide today.

Andrew Jowett, a partner at Appleby (BVI) Ltd, said clients typically compare multiple jurisdictions—such as the Cayman Islands, the United Arab Emirates, Singapore, and Switzerland—when structuring digital asset businesses. In his account, the “overriding factor” is digital asset regulation rather than tax.

The BVI does have tax advantages: it imposes no corporate income tax or capital gains tax on BVI companies, according to BVI’s financial services commission guidance linked in the reporting (see What tax structure BVI imposes). However, the argument presented is that many competing crypto hubs now offer tax neutrality, making legal and regulatory readiness the differentiator.

Executives echoed that sentiment. Saeed Al-Marri, CEO of Ethra (incorporated in the BVI), described tax neutrality as “table stakes,” adding that institutional adoption depends on legal certainty and clarity. Similarly, Jack Yang, founder and CEO of LTP (which operates regulated entities across the BVI, Hong Kong, Australia, and the UAE), said taxation is “secondary” to whether structures can pass institutional review.

In Yang’s view, a “tax-neutral structure” that banks, custodians, auditors, investment committees, or regulators cannot accept has limited practical value—particularly as tokenization moves deeper into traditional finance processes.

Orest Gavryliak, chief legal officer at 1inch (also incorporated in the BVI), framed the shift as a changing role for jurisdiction itself: it is not becoming irrelevant, but protocols increasingly weigh predictable rules, institutional credibility, and long-term sustainability over the lowest possible tax burden.

What the BVI VASP framework is designed to deliver

One of the central regulatory developments mentioned in the reporting is the BVI’s VASP regime. The BVI introduced the Virtual Assets Service Providers Act (VASP Act) in 2023, overseen by the BVI Financial Services Commission (FSC). BVI Finance and FSC guidance cited in the underlying material describe a targeted review cadence: responses to VASP applications within six weeks, with an aim to complete the review process within six months.

Fast, predictable processing matters in tokenization because projects often need regulatory alignment quickly to meet timelines for custody arrangements, distribution partnerships, and institutional onboarding. The article also argues that “ease of launch” and flexible corporate structuring have been part of the BVI’s appeal beyond tax incentives.

Jowett described the broader corporate-vehicle angle: companies can be set up quickly, the legal framework is flexible, and ongoing reporting is generally lighter than in onshore jurisdictions. The reporting also notes the BVI’s historical preference for corporate confidentiality, adding that BVI companies remain subject to AML and KYC expectations while beneficial ownership information is held by registered agents rather than being publicly disclosed as a register—reducing public-facing disclosure requirements.

Importantly, the accounts provided in the underlying reporting suggest confidentiality and tax neutrality were not the deciding factors for the interviewed companies. Instead, they pointed to legal certainty, regulatory clarity, and the ability to structure corporate arrangements efficiently as tokenization expands.

No “physical HQ rush,” just corporate anchoring

A recurring theme in the reporting is that BVI incorporation does not necessarily mean a company’s people or infrastructure move to the islands. Yang, speaking about LTP, said the entity does not employ full-time staff “on the ground.” Instead, governance is handled by its board while staffing support is drawn from elsewhere in the group.

The same distinction is described through examples across the industry. The article notes that Kraken’s parent company, Payward, is incorporated in the BVI, while the exchange’s primary operations are based in the United States. It also says 1inch’s team and operations are spread across multiple jurisdictions.

The practical implication is that the BVI may be winning a different competition than the one often associated with global tech hubs. It is not primarily attracting large engineering teams or flashy headquarters. Rather, it is becoming a legal anchor for digital asset businesses—particularly tokenization activity—where the corporate structure is a critical input to institutional acceptance.

For readers watching the next wave of real-world asset tokenization, the question is less “which country hosts the most staff” and more “which jurisdictions offer the cleanest path through institutional compliance.” The BVI’s case suggests that if the legal wrapper around a tokenized product can satisfy regulators and counterparties, the incorporation location can become a quiet but decisive advantage.

As more tokenized Treasury issuance, stablecoin usage, and tokenized securities migrate toward regulated frameworks, investors and builders should watch how institutional counterparties (custodians, auditors, banks, and investment committees) respond to BVI structures—and whether similar regulatory programs in other jurisdictions keep tightening timelines and compliance standards.

More than $1 out of every $10 of the world’s tokenized US Treasuries is issued by a company incorporated in the British Virgin Islands.

That places the small Caribbean territory behind only the United States as a key jurisdiction for the rapidly growing asset class, according to BVI Finance.

BVI Finance’s Destination Digital report in June found that BVI entities accounted for approximately $1.5 billion of the $14.98 billion global market for tokenized US Treasuries as of June 1.

A growing list of digital asset firms now call the British Virgin Islands home, including Kraken’s parent company, Payward, Bitstamp (recently acquired by Robinhood), 1inch and Bitfinex.

The territory boasts a stablecoin market cap of about $1.2 billion held in BVI-linked addresses and has roughly 28,000 stablecoin asset holders.

More than 25 virtual asset service providers (VASPs) have been approved under the BVI’s VASP regime, and, according to Bernstein Research, the Islands host 305 tokenized securities — the highest count for any single jurisdiction in the RWA.xyz dataset.

US tokenized securities distributed value by jurisdiction. Source: Destination Digital

The statistics suggest the Virgin Islands has become one of the world’s top crypto hotspots, but the reality is a little more nuanced.

Tokenized assets are designed to be borderless, and crypto projects often have the choice of which offshore jurisdiction to incorporate in.

In most cases, digital asset companies aren’t physically relocating to the Virgin Islands; they’re simply using the territory to incorporate legal entities, such as token issuers, treasury vehicles, holding companies or special purpose vehicles (SPVs).

Crypto companies aren’t just choosing BVI for tax reasons

Andrew Jowett, a partner at Appleby (BVI) Ltd who advises digital asset businesses on corporate structuring, told Cointelegraph that clients researching the BVI typically compare several jurisdictions, such as the Cayman Islands, United Arab Emirates, Singapore and Switzerland.

Despite long-held assumptions about offshore Caribbean tax havens, tax neutrality is no longer the primary driver.

Related: Dubai crypto market hits 50 licensed firms after new VARA approval

“The overriding factor for choosing the BVI has been digital asset regulation and not tax,” Jowett said. The British overseas territory does have attractive tax policies, and imposes no corporate income tax or capital gains tax on BVI companies.

But all the leading crypto hubs now have favorable crypto tax policies, meaning it’s no longer the deciding factor.

The Cayman Islands imposes no corporate income tax or capital gains tax, and the UAE has zero personal income tax or federal corporate tax on qualifying free zone entities.

“Tax neutrality is table stakes,” said Saeed Al-Marri, chief executive of digital asset infrastructure firm Ethra, which is incorporated in the BVI. He added that the BVI provides legal certainty and clarity, factors he said will determine which jurisdictions survive institutional adoption.

LTP is an institutional digital asset infrastructure provider that operates regulated entities in the BVI, Hong Kong, Australia and the UAE. Its founder and chief executive, Jack Yang, told Cointelegraph that while favorable taxation is relevant for cross-border structures, it is secondary to legal and regulatory certainty as tokenization moves further into institutional finance.

“A tax-neutral structure that cannot pass review by banks, custodians, auditors, investment committees, or regulators has limited practical value,” he said.

Number of tokenized securities by jurisdiction. Source: Destination Digital

Orest Gavryliak, chief legal officer at decentralized exchange aggregator 1inch, which is incorporated in the BVI, said that more and more decentralized finance (DeFi) protocols are choosing jurisdictions that provide predictable rules, rather than simply the lowest tax burden.

“Jurisdiction isn’t exactly becoming irrelevant, but its role is changing,” Gavryliak told Cointelegraph. “Protocols are increasingly weighing factors such as regulations, institutional credibility and long-term sustainability.”

Crypto hubs now compete on legal infrastructure

Jurisdictions vying to be “crypto hubs” like Singapore and the UAE increasingly compete via favorable legal infrastructure and licensing regimes, such as Singapore’s Payment Services Act and Dubai’s Virtual Assets Regulatory Authority (VARA) rulebooks.

The BVI introduced the Virtual Assets Service Providers Act (VASP Act) in 2023, overseen by the BVI Financial Services Commission (FSC).

Compared with many larger financial centers, it offers a speedy turnaround, responds to VASP applications within six weeks and aims to complete the review process within six months, according to BVI Finance and FSC guidance.

Jowett said beyond favorable tax regimes, clients prioritize “ease of launch” and efficient corporate structuring, which has long been part of the BVI’s appeal. Companies can be set up quickly, the legal framework is flexible, and ongoing reporting is generally lighter than in onshore jurisdictions.

Related: Cayman Islands Web3 foundations jump 70% as CARF reporting rules arrive

The Virgin Islands has also historically been favored because it offers more corporate confidentiality than many larger financial centers.

While BVI companies are still subject to anti-money laundering (AML) and know-your-customer (KYC) requirements, beneficial ownership information is held by registered agents rather than a public register, which reduces disclosure requirements.

British Virgin Islands. Source: Destination Digital

However, none of the companies interviewed by Cointelegraph cited tax neutrality or greater corporate confidentiality as deciding factors for incorporating in the BVI, pointing instead to legal certainty, regulatory clarity and corporate flexibility.

Incorporating, not physically relocating to the Virgin Islands

Yang told Cointelegraph that LTP does not employ full-time staff “on the ground.” Instead, the entity is overseen by its board and supported by staff from elsewhere in the LTP group. 

The same distinction can be seen elsewhere in the industry. Kraken’s parent company, Payward, is incorporated in the BVI, but the exchange’s operations are primarily based in the United States, while 1inch’s team and operations are spread across multiple jurisdictions. 

The BVI isn’t winning the race to attract glitzy headquarters or large-scale engineering teams. Instead, it has become the legal home for many digital asset businesses, while much of the work happens elsewhere. For jurisdictions competing to attract the industry, that just may be enough.

Magazine: Singapore isn’t a ‘crypto hub’ — it’s something better: StraitsX CEO