Regulation & Policy

Prime Minister Keir Starmer has announced a ban on cryptocurrency donations to political parties and proposed caps on overseas donations. The measures aim to combat risks from illicit finance, following a review highlighting vulnerabilities in the UK's political system.

The UK government has enacted an immediate ban on crypto donations to political parties following the Rycroft review on foreign electoral interference, requiring parties to return these funds within 30 days of new legislation, with penalties for non-compliance.

The crypto market is reacting strongly to new political news, and this time it’s about stablecoin yield. Many traders believe a new draft of the U.S. Clarity Act could seriously limit how stablecoins generate returns, and that has already started to affect the market. One of the biggest reacti

The U.K. government, led by Prime Minister Keir Starmer, has enacted a moratorium on cryptocurrency donations to political parties, citing risks of foreign interference. This measure, prompted by the Rycroft review, addresses concerns over the anonymity of digital assets affecting democratic processes.

Philip Rycroft, a former senior civil servant, recommended that the UK government impose a temporary moratorium on political donations made in crypto assets in an independent review published on Wednesday. “The government should legislate in the Representation of the People Bill to introduce a mora

BlockBeats News: On March 25, the UK Labour Party announced it will implement a "temporary ban" to suspend political groups from accepting cryptocurrency donations until relevant regulatory frameworks are improved, in response to risks of foreign interference in elections. The measure is seen as potentially directly impacting the Reform Party's funding sources. Previously, the party led by Nigel Farage received substantial donations from cryptocurrency industry figures. The UK government stated that this move aims to enhance political funding transparency and public trust, while the relevant ban will be retroactively applied to cryptocurrency donations effective immediately.

Research firm Bernstein points out that the market misinterpreted the Clarity Act draft, causing Circle's stock price to plummet. The bill restricts stablecoin yield distribution, not issuance, so the impact on Circle's business model is limited. In contrast, a certain CEX needs to restructure its revenue mechanism. In the long term, restricting passive income may benefit Circle in consolidating its market position.

Recently, competition between Circle and a certain CEX has intensified in the stablecoin economy. Circle supports stablecoin regulatory legislation to gain legitimacy, and despite facing stock price volatility, it may benefit from regulatory certainty in the long term. The CEX, however, focuses on short-term gains. 10x Research is reassessing its investment strategy.

A survey shows that cryptocurrency is quite popular among young people in the UK, with 64% of left-leaning party supporters having heard of cryptocurrency. Although right-wing parties such as the UK Reform Party support the crypto industry, its appeal has transcended partisan lines. The government faces industry pressure on regulation, with slow progress in advancing it.

The U.S. Commodity Futures Trading Commission established an innovation working group responsible for regulating cryptocurrencies, artificial intelligence, and prediction markets, with the goal of developing clear rules, ensuring market competitiveness, and providing communication channels for innovators. The group collaborates with the SEC and CFTC Innovation Advisory Committee to promote responsible innovation, maintain market order, and boost investor confidence.

Kalshi Launches "Report Insider Trading" Button to Strengthen Compliance and Regulation, Allowing Users to Report Potential Violations. Meanwhile, the platform restricts political candidates and athletes from participating in related markets, aimed at preventing conflicts of interest. This initiative comes amid regulatory pressure from lawmakers and reflects the platform's commitment to transparency and integrity in prediction markets.

South Korea's People Power Party proposes to cancel the 22% cryptocurrency gains tax set to take effect in 2027, arguing that the current tax system is immature and may cause unfairness, particularly affecting young investors. The party is concerned that strict taxation will lead to capital outflows, with 110 billion dollars already flowing out, affecting market activity. The bill is still under review, and whether it will pass remains uncertain. If it passes, it could boost market confidence and attract more investors.

As virtual assets like Bitcoin are gradually being incorporated into investment portfolios by the general public, whether cryptocurrency exchange gains should be taxed has become a focal point of regulatory and tax system discussions. Ernst & Young Accounting Firm points out that, according to the latest circular from the Ministry of Finance, gains generated from buying and selling cryptocurrencies can now be recognized as "property transaction gains" under the current Income Tax Act and included in the scope of taxation. The National Tax Bureau has identified approximately 129 million NT dollars in unreported cryptocurrency trading income According to a written report submitted by the Ministry of Finance to the Legislative Yuan, the National Tax Bureau has listed cryptocurrency trading as a key audit focus. As of mid-December 2024, tax authorities have identified approximately 129 million NT dollars in underreported or unreported income, with combined back taxes and penalties totaling approximately 34.03 million NT dollars. In a report by the Commercial Times, Lin Chih-hsiang, operations manager of Ernst & Young's Tax Services Department, stated that cryptocurrencies are virtual digital assets based on blockchain technology. Although they do not have physical form and are not issued by the central bank

The UK government will publish a review report on political financing regulations, which is expected to ban political parties from accepting cryptocurrency donations to prevent foreign funds from interfering with democracy. This move comes following the conviction of a former Welsh leader for accepting cryptocurrency bribes.

The UK government has published a review report on political financing regulations, planning to ban political parties from accepting cryptocurrency donations to prevent foreign funds from interfering with democracy. This move is expected to be included in the forthcoming Elections and Democracy Bill, aimed at strengthening oversight of political contributions.

Circle Internet Group's stock price plummeted 20%, losing $4.6 billion in market value, due to a draft Digital Asset Market Transparency Act that prohibits providing passive yields to stablecoin holders. Despite short-term impacts on application restrictions, analysts believe the bill will build a regulatory moat for Circle and optimize its business model. Additionally, Tether has committed to accepting audits to enhance transparency. USDC's future performance will influence market trends.

The Financial Supervisory Commission plans to strengthen supervision of cryptocurrency KOLs and signal-calling behavior through implementing regulations under the Financial Consumer Protection Act to protect investors and close regulatory gaps. This measure will require KOLs to enter into contracts with virtual asset service providers to ensure compliance of advertising and solicitation activities, and prevent the expansion of market manipulation and fraud.

Tether and Circle have blacklisted the Ethereum hot wallet of Iranian exchange Wallex, freezing approximately $117,000 in USDT and USDC. Wallex transferred $2.49 million in assets to another BSC address hours before the freeze, suggesting coordinated compliance enforcement by stablecoin issuers. This incident reflects increasingly strict regulatory scrutiny of cryptocurrency platforms associated with Iran.

The Assistant Governor of the Reserve Bank of Australia, Brad Jones, stated that asset tokenization has become a matter of how to implement it, with an estimated annual efficiency boost of approximately $16.7 billion for the economy. The RBA will establish a digital financial market infrastructure sandbox and expand the tokenization working group to promote interoperability across institutions.

Taiwan is taking a cautious approach to stablecoins. The Financial Supervisory Commission plans to launch a domestic stablecoin as early as 2026, but issuance will be limited to licensed financial institutions. The central bank has raised questions about whether stablecoins meet monetary system standards and has not yet decided whether to issue a stablecoin denominated in New Taiwan dollars or US dollars. Industry experts point out that Taiwan needs to deepen its bond market and attract foreign capital to promote stablecoin development.