European regulators and central bankers have warned that rulemaking cannot keep pace with rapid advances in agentic artificial intelligence and have called for guardrails to protect the financial system. 

Bank of England deputy governor Sarah Breeden is one of several central bankers who have said that agentic AI could amplify volatility during bouts of market stress.

Breeden questioned if guardrails are needed, “analogous to circuit breakers or kill switches that would limit or stop trading market-wide if faulty AI models cause market meltdown,” she said at the European Central Bank’s annual meeting in Sintra, Portugal, on Tuesday.

US companies are leading in AI investment and frontier model development, and Europe’s financial system gives it fewer capital channels into AI compared to the US equity markets. Regulating too cautiously could widen that gap further, as AI companies may seek out jurisdictions with lower compliance requirements.

Cybersecurity and financial risk warnings 

European Central Bank President Christine Lagarde, in an interview with French outlet Les Echos on Thursday, warned that AI technology poses a “major risk.” 

“For about a decade now, we have been talking about cybersecurity risks, hacking, data theft, and so on,” Lagarde said. “But with the acceleration and deepening of AI models, we are confronted with a much more serious risk, because it is happening very, very quickly, and because the means of defense — and the funding required for them — have yet to be found.”

Related: Anthropic to bring back Fable 5 as US lifts export controls

Meanwhile, Nikhil Rathi, CEO of the UK’s Financial Conduct Authority, told CNBC’s Squawk Box on Thursday that traditional regulation cycles don’t work in an era of fast-moving AI development.

“Technology moves incredibly fast, and we need to think differently about some of the innovations that we are seeing on AI,” Rathi said.

“The reality is some of these technologies now move in weeks or months, and the traditional cycle of rulemaking simply doesn’t work in that way, so we need to think about new tools and a different way of working with the market in a more collaborative way.” 

Central bankers, especially in Europe, have raised the same red flags about crypto, claiming that it could disrupt the traditional financial system. 

Bankers warn of AI boom-bust risk

The Bank for International Settlements warned on June 28 that AI “exuberance” could have major financial consequences.

If central banks tighten policy to contain inflation, this could precipitate a “sharp pullback in [AI] asset prices after a prolonged period of exuberant risk-taking,” which could trigger “disruptive macro-financial feedback loops,” the BIS said. 

Breeden said that debt financing was rising rapidly. “We therefore judged that the financial stability consequences of any fall in AI-related asset prices could well increase,” she said. 

Meanwhile, Tobias Adrian, Director of the IMF’s Monetary and Capital Markets Department, said in an interview with Bloomberg on June 30 that there is a “potential maturity mismatch in between the duration of the physical assets and the duration of the debt.”

Magazine: AI is banking the unbanked in Africa… faster than crypto

Nearly 1 million buyers of Official Trump (TRUMP), US President Donald Trump’s memecoin, have lost a collective $3.8 billion on the token as of the end of June, newly reported analysis shows.

As of the end of last month, 988,905 TRUMP buyers, or around two out of every three buyers, have lost money on the memecoin, The New York Times reported on Saturday, citing a report by analytics firm Nansen.

Those buyers lost a total of $3.81 billion, which includes those who have held on to the token at a loss.

The report comes days after Trump’s annual financial disclosure, released on Tuesday, revealed he earned more than $1.4 billion in income from his crypto-related ventures last year, raising fresh concerns about the president’s crypto dealings while in office.

Just under half a million wallets had reportedly recorded a profit on the token, totaling $4 billion, which Nansen said reflected “a small number of early buyers capturing enormous gains while the broad retail majority absorbed the losses.”

Donald Trump posted to X on Jan. 18 about his new self-branded memecoin. Source: Donald Trump

The nearly 1,000-page disclosure showed Trump had made over $630 million on his TRUMP memecoin, while all buyers of the token taken together made a net profit of around $200 million in comparison.

Trump launched the memecoin just days before he re-entered office in January 2025, where the token quickly peaked at over $73. It has since fallen by over 97% and currently trades at $1.70, according to CoinGecko.

World Liberty Financial token buyers also likely lost out

Nansen also analyzed World Liberty Financial (WLFI), the token tied to the crypto trading platform of the same name that lists Trump and his three sons as co-founders.

WLFI was first sold directly to investors at 1.5 cents, then at 5 cents. Nansen said those who bought WLFI at 5 cents have likely made a small profit, but of the nearly 27,000 wallets the company tracked, 85% had recorded a loss, which amounted to $83 million in total, while the remaining wallets profited a total of $23 million.

Nansen said there are likely more investors who have lost on the token, as other buyers purchased WLFI on exchanges where the data is not public. The token was made available to the public via secondary exchanges in September.

Related: Senate Dems urge probe into $500M crypto deal between Trumps, UAE

Meanwhile, Trump’s financial disclosure showed that he earned just under $800 million from the World Liberty Financial platform last year, as a business tied to Trump collects 75% of the sales of WLFI regardless of its price.

In an interview with CNBC on Thursday, Trump dodged questions about perceived conflicts of interest and said there was “nothing illegal” and “nothing wrong” with his disclosed crypto profits and claimed that other people were responsible for his investments.

Magazine: Trump’s crypto ventures raise conflict of interest, insider trading questions

TL;DR

• South Africa has proposed draft guidance explaining how existing tax laws apply to crypto assets.
• SARS says trading, swapping, and spending crypto may trigger taxable events under current rules.
• The guidance emphasizes that a taxpayer’s intention will determine whether profits are taxed as income or capital gains.
• Public consultations remain open until August 31 before the guidance is finalized.

South Africa is taking another step toward strengthening oversight of its growing digital asset market after publishing draft guidance explaining how cryptocurrencies should be taxed under the country’s existing tax framework.

The South African Revenue Service (SARS) has released proposed guidance outlining how income tax and capital gains tax apply to crypto assets, while inviting public comments until August 31. Rather than introducing new tax laws, the document aims to provide greater clarity on how current legislation should be interpreted for cryptocurrency transactions.

The move comes as crypto adoption continues to expand across South Africa, with SARS previously estimating that at least 5.8 million South Africans own digital assets. According to blockchain analytics firm Chainalysis, the country received approximately $26 billion in cryptocurrency value during the one-year period covered by its latest report, making it one of Africa’s largest crypto markets.

Draft Guidance Clarifies When Crypto Transactions Become Taxable

Under the proposed framework, cryptocurrencies are treated as intangible assets rather than legal tender or foreign currency. As a result, many common crypto activities, including buying and selling, swapping one digital asset for another, and using crypto to pay for goods or services, may trigger taxable disposal events.

However, SARS stressed that tax treatment will depend on the facts surrounding each case rather than applying a single rule to every taxpayer.

A central feature of the draft guidance is the importance of a taxpayer’s intent. Authorities said determining whether crypto profits should be taxed as ordinary income or capital gains requires examining why an individual acquired the asset, how long it was held, how frequently transactions occurred, and whether the person’s investment objectives changed over time.

For example, investors who actively trade digital assets may be taxed differently from those who purchase cryptocurrencies as long-term investments. SARS noted that an individual’s intention can evolve, meaning tax treatment may also change depending on the circumstances.

The draft also explains that crypto assets may be subject to donations tax because they are regarded as property under South African tax law. Depending on the value of the donation, applicable tax rates could range from 20% to 25%.

Growing Market Drives Demand for Regulatory Clarity

The publication reflects South Africa’s broader effort to establish clearer rules for its rapidly expanding digital asset industry without creating an entirely new tax regime.

Instead of introducing additional obligations, SARS said the objective is to help taxpayers understand how existing legislation applies to cryptocurrency transactions and reduce uncertainty around tax reporting.

The consultation period allows industry participants, tax professionals, and members of the public to submit feedback before the guidance is finalized.

The proposal also comes as institutional participation continues to grow within South Africa’s crypto market. Professional and institutional-sized transactions accounted for a significant share of the country’s crypto activity, highlighting the sector’s maturation beyond retail investors.

If finalized, the guidance could provide greater certainty from the current framework for millions of South Africans who hold digital assets while reinforcing the country’s existing tax framework. As crypto adoption continues to expand across Africa, clearer tax treatment may also help improve compliance by giving investors and businesses a better understanding of how digital asset transactions are assessed under current law.

TL;DR

• Dubai has become Asia’s largest regulated crypto hub with 50 licensed virtual asset firms.
• India’s central bank continues pushing to keep banks insulated from cryptocurrency risks.
• Metaplanet expanded its Bitcoin holdings while Russia confirmed its digital ruble launch timeline.
• Taiwan, South Korea, and Kazakhstan advanced crypto regulation, tokenization, and blockchain adoption.

Asia’s digital asset landscape continues to evolve at different speeds, with some jurisdictions like Dubai accelerating crypto adoption while others tighten oversight. Over the past week, regulators and institutions across the region announced major developments spanning licensing, central bank digital currencies (CBDCs), tokenization, and corporate Bitcoin strategies.

Dubai expanded its lead as one of Asia’s most regulated crypto hubs, while India’s central bank reiterated its cautious stance on digital assets. Meanwhile, Japan, Russia, South Korea, Taiwan, and Kazakhstan each unveiled initiatives that underscore the region’s increasingly diverse approach to blockchain technology.

Dubai Expands Lead While India Maintains Conservative Approach

Dubai reached a significant milestone after its Virtual Assets Regulatory Authority (VARA) issued its 50th Virtual Asset Service Provider (VASP) license, further strengthening the emirate’s position as one of the region’s most established crypto jurisdictions. The latest license was awarded to Tribe Tokenisation FZE, reflecting Dubai’s continued focus on regulated digital asset businesses and real-world asset tokenization. Although not every licensed company has begun commercial operations, the growing number of approvals highlights the city’s long-term commitment to building a compliant crypto ecosystem. 

India, however, appears to be moving in the opposite direction. Reports indicate the Reserve Bank of India (RBI) urged lawmakers to shield the country’s banking sector from cryptocurrency exposure while keeping the door open for regulated tokenization initiatives. According to the central bank, allowing banks to engage directly with cryptocurrencies could introduce financial stability risks, whereas tokenized versions of traditional financial assets remain a separate area worthy of development. 

Elsewhere in the region, Taiwan passed its first comprehensive crypto legislation, introducing licensing requirements for virtual asset service providers and reserve rules for stablecoin issuers. The move aligns Taiwan more closely with established regulatory frameworks already adopted in markets such as Japan and Singapore.

Institutions Push Ahead With Bitcoin, CBDCs, and Tokenization

Institutional adoption also remained a dominant theme across Asia.

Japanese investment firm Metaplanet expanded its Bitcoin treasury once again, increasing its holdings to more than 43,000 BTC after purchasing an additional 2,823 Bitcoin during the second quarter. The company also reported revenue generated through its Bitcoin yield strategy, reinforcing its commitment to a long-term digital asset accumulation model.

Meanwhile, another Japanese player, SBI Crypto, announced it will shut down its Bitcoin mining pool at the end of July after five years of operation. While no official reason was provided, the decision marks the end of one of Japan’s notable mining services.

Russia is also preparing for the next phase of its digital currency plans. Bank of Russia Governor Elvira Nabiullina confirmed the country’s digital ruble remains on track for a September 1 rollout, with banks and financial institutions expected to begin supporting the CBDC as scheduled. 

In South Korea, Bank of Korea Governor Hyun Song Shin emphasized that tokenized government bonds could significantly improve settlement efficiency and collateral management. The central bank is also exploring a unified ledger that would combine tokenized government securities, wholesale CBDCs, and commercial bank deposits into a single blockchain-based infrastructure.

Central Asia is also becoming more active in blockchain development. Kazakhstan continues advancing its digital economy ambitions after Solana Company agreed to help develop blockchain infrastructure for Alatau City, a planned technology-focused megacity backed by more than $6 billion in potential investment.

Meanwhile, compliance efforts remain a major focus beyond Asia. The U.S. Treasury sanctioned 134 cryptocurrency wallets linked to ISIS-K, prompting Tether to freeze USDT held across 131 sanctioned TRON addresses. The action highlights the growing role of blockchain analytics and stablecoin issuers in supporting international financial enforcement efforts.

Regulators across Asia and beyond delivered a mixed but telling set of signals this week on how crypto and tokenization may fit into mainstream finance—ranging from calls to quarantine banks from private digital assets to new licensing regimes for stablecoins and virtual-asset services.

Meanwhile, developments in Russia’s central bank digital currency roadmap, US sanctions tied to ISIS-K crypto activity, and corporate Bitcoin treasury moves reinforced a reality traders and institutions can’t ignore: compliance, custody, and token infrastructure are becoming as strategically important as market liquidity.

Key takeaways

• India’s central bank urged lawmakers to keep banks insulated from crypto and private stablecoins, while carving out space for regulated tokenization.
• Russia’s central bank governor said the digital ruble is on track for a Sept. 1 rollout, with initial acceptance limited to financial and credit institutions.
• SBI Crypto will shut down its Bitcoin mining pool after a five-year run, ending share acceptance on July 31.
• The US Treasury’s OFAC sanctioned 134 ISIS-K crypto wallet addresses; Tether froze 131 Tron balances tied to the designations.
• Taiwan’s legislature passed a crypto and stablecoin regulatory framework that requires VASPs to be approved and sets reserve/audit rules for stablecoin issuers.

India: isolate banks from private crypto while enabling regulated tokenization

According to a report by The Economic Times, India’s central bank position—presented to the Parliamentary Standing Committee on Finance—leans toward containment rather than blanket normalization.

The Economic Times reported that RBI Deputy Governor Rohit Jain and Executive Director P. Vasudevan presented the central bank’s stance on Thursday. In a background note submitted to the panel, the RBI reportedly framed prohibition as a policy option that remains on the table.

Per the report, the RBI recommended preventing crypto use in payments and settlements, while restricting banking-sector exposure. The central bank reportedly cautioned that “traditional” regulation applied to crypto could effectively legitimize speculative assets and encourage a false sense of safety among users.

At the same time, the RBI reportedly urged policymakers to distinguish between crypto and tokenized instruments that are already regulated—such as tokenized government securities and corporate bonds—so that restrictions would not unintentionally throttle legitimate tokenization efforts.

Russia: digital ruble rollout reiterated for Sept. 1

Russia’s central bank governor Elvira Nabiullina said the country remains prepared to launch its central bank digital currency within a short timeline. Earlier coverage by Cointelegraph reported that Nabiullina confirmed the rollout plan based on the schedule outlined last year.

According to a Thursday report from Russian state media outlet RIA Novosti, Nabiullina said “everyone is ready” for a Sept. 1 digital ruble launch. The digital ruble is intended to complement Russia’s fiat currency, the ruble, and initially will be accepted by financial and credit institutions.

Russia’s CBDC has also drawn external pressure. The EU has previously announced restrictions tied to sanctions over Russia’s war in Ukraine, including actions aimed at limiting the role of the digital ruble; those measures were highlighted in an April EU press release referenced by the Council of the European Union.

Japan: SBI Crypto ends Bitcoin mining pool operations

SBI Crypto, the cryptocurrency-focused division of Japanese financial group SBI, announced it will end its Bitcoin mining pool operations after five years. Earlier coverage from Cointelegraph noted the shutdown, and the company later confirmed the operational cutoff.

SimpleMining data, cited by Cointelegraph, shows SBI Crypto ranked 12th globally among Bitcoin mining pools at the time of reporting, with about 21.46 EH/s of hashrate and roughly 2.24% of total network share.

According to an announcement on SBI Crypto’s announcements page, the mining pool will stop operating on July 31, and the company will stop accepting mining shares at the same time. SBI Crypto said miners should continue directing hashrate to the pool until the cutoff so that final payouts can be calculated correctly, requesting ongoing support “until the final day of operation.”

US enforcement: OFAC sanctions ISIS-K wallets; Tether freezes Tron-linked balances

The US Treasury’s Office of Foreign Assets Control (OFAC) sanctioned 134 cryptocurrency wallet addresses identified as belonging to ISIS-Khorasan (ISIS-K), according to Cointelegraph.

OFAC added the listed addresses to its Specially Designated Nationals (SDN) list on Wednesday, tightening compliance pressure on exchanges, service providers, and on-chain intermediaries that handle transfers to or from sanctioned entities.

Cointelegraph reported that Tether froze balances associated with 131 Tron addresses, while the remaining three sanctioned addresses were on the Monero network, based on analysis described in a Chainalysis report: “ISIS designation crypto addresses (July 2026)”.

The latest action follows earlier OFAC sanctions against individuals and entities that the agency said facilitated ISIS fundraising and movement of funds. On June 22, OFAC sanctioned three individuals and six entities, including MSB Bitcoin Xchange and Spider, as described in a US Treasury press release: “OFAC sanctions …”.

Treasury and token infrastructure: Metaplanet’s Bitcoin accumulation and tokenized-bonds ambitions

Bitcoin treasury strategies continued to shape headlines as Japanese investment company Metaplanet reported further accumulation. Earlier reporting by Cointelegraph said Metaplanet acquired 2,823 Bitcoin in the second quarter at a purchase price below its average acquisition cost, pushing holdings above 43,000 BTC.

Per Metaplanet’s disclosure referenced by Cointelegraph, the latest purchase was made at an average price of about 12.71 million yen (quoted as $78,850 at the time of reporting), reducing its average acquisition cost to about $95,117 per BTC from $96,258. Metaplanet now holds 43,000 Bitcoin acquired for about $4.1 billion, and it also reported revenue of about $10.95 million from its Bitcoin income-generation strategy, which includes selling cash-secured options and other Bitcoin-related yield approaches. The company’s announcement is where these figures were taken from.

Elsewhere, the policy and infrastructure discussion around tokenization widened beyond crypto asset trading. Speaking at a panel discussion referenced by Cointelegraph, Bank of Korea governor Hyun Song Shin argued for tokenized government bonds as a way to simplify issuance and post-trade management. Shin said tokenized bonds could make it easier to verify collateral, credit the asset provider’s account, and reverse transactions when appropriate.

Cointelegraph also reported that Shin outlined plans to place tokenized government bonds, wholesale central bank digital currencies, and tokenized commercial bank deposits onto a unified ledger as an extension of “Project Hangang,” a Bank of Korea-led pilot testing a blockchain-based wholesale CBDC system. A Cointelegraph link in the source text pointed to additional context on token securities, but the core claims here are Shin’s remarks and the existence of the Hangang initiative.

Dubai and Taiwan: licensing momentum and stablecoin rules tighten

Dubai continued to expand its licensing regime for virtual-asset service providers (VASPs). Cointelegraph reported that the Virtual Assets Regulatory Authority (VARA) granted its 50th VASP license to tokenized assets platform Tribe Tokenisation FZE, with the approval announced on Thursday.

While the milestone highlights growth in the number of licenses, Cointelegraph cautioned that license totals don’t necessarily indicate how many firms are operational or their level of activity. Even so, VARA’s licensed-VASP count, as reported by Cointelegraph, exceeds Hong Kong’s and Singapore’s totals cited in the same coverage (Hong Kong: 13; Singapore: 37).

Taiwan took a different step: lawmakers moved from licensing talk to legal structure. Cointelegraph reported that the Legislative Yuan passed a law establishing a regulatory framework for crypto, including licensing requirements for VASPs and rules for stablecoin issuers.

According to the Financial Supervisory Commission (FSC), cited by Cointelegraph, the law requires VASPs to obtain approval from the regulator to operate. It also states that stablecoins issued in Taiwan must be approved by both the central bank and the FSC, and issuers must maintain sufficient reserves with a trustee and undergo regular audits. Cointelegraph framed the measure as Taiwan’s first comprehensive crypto and stablecoin regulation, placing it alongside regional jurisdictions that have already adopted formal regimes.

Next to watch

As banking regulators debate how to separate traditional financial rails from crypto exposure, and as jurisdictions tighten VASP and stablecoin compliance, market participants should watch for how tokenization policy gets carved out—especially whether “regulated tokenization” expands faster than private crypto activity, and how enforcement actions influence stablecoin and custody behavior.

Senator Cynthia Lummis has renewed her push for Congress to advance the CLARITY Act, arguing that the bill could form the foundation for the next era of U.S. financial services.

Lummis said the legislation would “lay the foundation for the financial services of the 21st century,” according to a post shared by CryptoGoos. She added, “The CLARITY Act is this generation’s contribution to that legacy. Let’s finish the job.”

Source: https://x.com/cryptogoos/status/2073787988807409697?s=20

Her comments come as lawmakers face a limited window to move the bill forward before the August recess. The legislation has become one of the most closely watched crypto policy efforts in Washington because it seeks to define how digital assets should be regulated and which agencies should oversee them.

Senate Timing Remains The Main Hurdle

The CLARITY Act has already passed the House and cleared the Senate Banking Committee. However, it still needs a full Senate floor vote before it can move closer to becoming law.

That timing is now critical. If the Senate fails to act before the August recess, the bill’s path could be pushed into 2027. This makes July an important month for U.S. digital asset policy, especially as crypto firms, banks, and investors wait for clearer federal rules.

Lummis has also opened a final review window for updated bill text. Reports indicate that a revised version was expected around July 4, giving lawmakers and industry groups another opportunity to review possible changes before a Senate floor push.

However, several issues remain under debate. These include stablecoin yield products, ethics rules, and decentralized finance oversight. Those questions matter because Senate leaders need enough support to move the bill through a divided chamber.

SEC And CFTC Roles Would Be Redefined

The CLARITY Act aims to reduce the long-running regulatory conflict between the Securities and Exchange Commission and the Commodity Futures Trading Commission.

Under the proposal, the SEC would continue overseeing investment contract assets, while the CFTC would take a larger role in digital commodity spot markets. This would include greater authority over certain crypto exchange activities.

The bill would also define when a token should be treated as a security and when it should be treated as a commodity. Supporters argue that this could replace enforcement-led regulation with a clearer written framework.

Trading platforms, brokers, and crypto exchanges would also face new requirements, including rules requiring firms to separate customer assets from company funds. That measure is designed to reduce risks similar to those seen in past exchange failures.

Still, critics argue that the bill may not go far enough in protecting users or addressing the complexity of decentralized finance.

Fraud Funding Adds Enforcement Focus

The CLARITY Act also includes funding for enforcement. A separate report said the bill would allocate $150 million for crypto fraud investigations.

Lummis said the funding would help agencies “track down scammers and bad actors in the digital asset space.” That provision could help win support from lawmakers who want stronger consumer protection alongside market structure reform.

The bill would also bring some digital asset firms under Bank Secrecy Act obligations. This could increase reporting and compliance standards for platforms handling customer assets and transactions.

For now, the CLARITY Act remains close to a major Senate test but has not yet become law. Lummis is pressing lawmakers to move forward as the crypto industry waits for final text, a floor vote, and a clearer view of how U.S. digital asset markets may be regulated.