Crypto Reporter

Shalini Nagarajan

Crypto Reporter

Shalini Nagarajan

About Author

Shalini is a crypto reporter who provides in-depth reports on daily developments and regulatory shifts in the cryptocurrency sector.

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Last updated: 

August 5, 2025

The Commodity Futures Trading Commission plans to allow spot cryptocurrency trading on exchanges it already regulates, expanding access to digital assets through federally registered futures markets.

CFTC Acting Chairman Caroline Pham unveiled the plan on Monday, calling it the first move in the commission’s broader “crypto sprint,” a program aimed at quickly implementing key policy recommendations from the President’s Working Group on Digital Asset Markets.

Pham framed the effort as part of a broader push under President Trump’s leadership to bring digital assets into the federal regulatory fold.

She said the initiative would enable immediate trading of digital assets at the federal level, in coordination with the Securities and Exchange Commission’s recently announced Project Crypto.

CFTC Invites Input on Spot Crypto Listings via DCMs

“There is a clear and simple solution the CFTC can implement now,” Pham said. “The Commodity Exchange Act currently requires that retail trading of commodities with leverage, margin, or financing must be conducted on a designated contract market.

“Starting today, we invite all stakeholders to work with us on providing regulatory clarity on how to list spot crypto asset contracts on a DCM using our existing authority.”

The CFTC’s plan would enable exchanges already registered to trade futures contracts, known as Designated Contract Markets, to also offer spot trading for cryptocurrencies like Bitcoin and Ethereum.

In spot trading, buyers and sellers exchange digital assets directly and immediately, unlike futures trading, where contracts are based on predictions of future crypto prices.

Regulators Ask for Clarity on Crypto-Securities Boundary

Stakeholders have until Aug. 18, 2025, to share their feedback through the CFTC’s website. In the meantime, the agency is seeking input on how to regulate spot crypto trading. It is focusing on laws that govern retail commodity transactions. Additionally, it is reviewing compliance requirements for registered exchanges.

The commission is also seeking input on how its framework would interact with securities regulations, especially in cases where crypto assets may not meet the legal definition of securities.

All comments submitted will be made public on the CFTC’s website.

Unified Crypto Framework May Merge Futures and Securities Oversight

The move signals growing coordination between the CFTC and SEC as both agencies look to bring clarity to crypto regulation.

Just last week, SEC Chairman Paul Atkins introduced Project Crypto. This is a broad initiative to modernize securities laws for blockchain-based assets. It aims to clarify how crypto assets are classified, distributed and traded. In particular, it seeks to resolve longstanding confusion around the Howey test.

The test is used to determine whether an asset qualifies as a security. Over time, it has become a sticking point for crypto companies. As a result, many have treated their tokens as securities by default. They remain cautious due to the risk of enforcement actions.

Project Crypto is expected to provide a more tailored regulatory approach.

With the CFTC’s latest initiative, the US may be moving closer to a dual-agency framework for digital asset regulation. This shift involves both the CFTC and the SEC. It comes at a time of growing demand from institutional and retail investors. Many are seeking clearer, regulated access to cryptocurrencies.

If finalized, the CFTC’s plan could open the door for spot crypto trading under existing commodity laws, giving markets greater legal certainty without waiting for new legislation from Congress.

Crypto Reporter

Shalini Nagarajan

Crypto Reporter

Shalini Nagarajan

About Author

Shalini is a crypto reporter who provides in-depth reports on daily developments and regulatory shifts in the cryptocurrency sector.

Share

Last updated: 

June 26, 2025

The Financial Action Task Force has called on governments worldwide to step up enforcement of anti-money laundering standards in the crypto industry, warning that unchecked gaps in regulation could undermine global financial security.

In a report released Thursday from Paris, the global watchdog said jurisdictions have made progress since 2024 on implementing anti-money laundering and counter-terrorism financing frameworks for virtual assets and related service providers.

However, it noted that critical challenges remain, particularly around licensing, offshore oversight, and identifying entities involved in virtual asset services.

The FATF’s latest targeted update focused on Recommendation 15, which was expanded in 2019 to cover crypto markets.

Watchdog Flags Rising Stablecoin Abuse by Illicit Networks, Urges Regulatory Action

According to the report, 99 jurisdictions have either enacted or are preparing legislation aligned with the “Travel Rule,” a key mechanism to ensure transparency in cross-border crypto transfers. The FATF also released a new guide outlining best practices for supervising compliance with the rule.

The report flags mounting threats associated with the rise of stablecoins. It said their use by illicit actors, including North Korea-linked hackers, terror financiers and drug traffickers, has grown significantly. It warned that mass stablecoin adoption without coordinated regulation could increase global exposure to illicit finance.

North Korea’s Record Crypto Theft Exposes Weak Links in Global Enforcement

The update follows a series of alarming trends. So far this year, North Korea executed what the FATF described as the largest virtual asset theft in history, stealing $1.46b from exchange platform ByBit.

Only about 3.8% of the stolen funds has been recovered. This shows serious gaps in international asset tracing and recovery efforts.

Meanwhile, fraud and scams continue to trouble the crypto sector. The FATF cited industry estimates that around $51b in on-chain transactions last year were linked to such illicit activity. These cases point to increasingly sophisticated tactics by bad actors. As a result, governments are under growing pressure to enhance cooperation and improve asset seizure mechanisms.

In one example, the UK’s Operation Destabilise demonstrated how coordinated law enforcement can disrupt crypto-fueled criminal networks. The FATF said such efforts must be replicated globally and backed by more robust supervision and enforcement.

The watchdog acknowledged support from analytics firms including Chainalysis, Lukka, Merkle Science and TRM Labs in compiling the update. It also stressed that nearly 98% of the global virtual asset market is concentrated in jurisdictions within the FATF’s Global Network. Bringing these players into full compliance, it said, will be key to reducing worldwide risk.

The United Kingdom’s financial watchdog is asking for the public’s opinion on crypto regulations.

The Financial Conduct Authority (FCA) says it aims to develop a “safe, competitive, and sustainable” digital asset sector.

“Long-term confidence in crypto assets depends on clear regulation to promote market integrity and appropriate consumer protection.

We are seeking input into how the unique aspects of crypto assets should be considered in our future regulatory regime. We want an open discussion on the features of the future regime, with this latest Discussion Paper (DP) seeking views on how we regulate trading platforms, intermediaries, staking, lending and borrowing, and decentralized finance. We are also seeking feedback on the use of credit to purchase crypto assets.”

The regulator says a discussion paper and its proposals were developed after extensive consultation with crypto industry professionals, digital asset consumers and stakeholders in the traditional finance sector.

The FCA aims to restrict credit card usage when buying crypto, and earlier this year, the regulator moved to ban digital asset ads, managing to cut the advertisements down by 50%.

The financial watchdog says it is now making “good progress” with tech companies in regulating the banned advertisements but is still concerned about the prevalence of scams online.

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Australia’s financial intelligence agency AUSTRAC, has warned crypto ATM operators on missing anti-money laundering checks and helping criminals launder money.

In a statement released Monday, the AML watchdog highlighted “worrying trends” of suspicious activities and transactions.

The notice arrives months after a panel of experts from AUSTRAC formed an internal taskforce to address AML and terrorism financing issues using crypto ATMs. The taskforce comprises members from the watchdog’s regulatory, enforcement and intelligence areas.

Brendan Thomas, CEO of AUSTRAC, noted that the panel has been busy “engaging with businesses” to understand the risks and address them with compliance.

“It’s identified worrying trends and indicators of suspicious activity, including transactions that may be linked to scams or fraud.”

Australia Hosts Nearly 1,600 Crypto ATMs, Numbers Spiked Since 2019

According to AUSTRAC estimates, there are around 1,600 crypto ATMs in use around the country. “Australia has the highest number of crypto ATMs in the Asia Pacific region,” the statement read.

In 2019, Australia hosted only 23 crypto ATMs nationwide, which spiked to 60 in 2022. Over the past three years, the number of Bitcoin ATMs has “grown rapidly,” it added.

Additionally, crypto exchanges have been regularly installing ATMs, which are used by customers to deposit cash and buy Bitcoin.

“We want to ensure crypto ATM providers have robust practices to minimise the risk that their machines can be used to launder dirty money or to scam and defraud innocent people,” CEO Thomas, noted.

He further noted that AUSTRAC will take action against operators who don’t comply with the law.

AUSTRAC Works Towards Crypto Compliance Push

The AML regulator has already targeted 13 remittance and digital currency exchange providers due to a lack of compliance. Besides, the agency is stated that some have face conviction, protection or charges for serious offences.

Meanwhile, the country’s financial regulator ASIC has taken cautious steps to secure Australia’s growing crypto ecosystem. The agency has helped take down over 5,500 fraudulent investment websites, more than 1,000 phishing links, and 615 crypto scam sites since July 2023.

In a recent move, Australian police knocked down an organized crime syndicate involved in burglaries targeting crypto ATMs and Pokémon collector cards.

The post Aussie Watchdog Places Crypto ATM Providers ‘On Notice,’ Warns Over Missing AML Checks appeared first on Cryptonews.

The European Union’s insurance authority has proposed a blanket rule that would mandate insurance firms to maintain capital equal to the value of their crypto holdings as part of a measure to mitigate risks for policyholders.

The new proposal — made by the European Insurance and Occupational Pensions Authority in a Technical Advice report to the European Commission on March 27 — would set a far stricter standard than other asset classes, such as stocks and real estate, which don’t even need to be half-backed.

“EIOPA considers a 100% haircut in the standard formula prudent and appropriate for these assets in view of their inherent risks and high volatility,” it said in a separate statement.

Such a measure would fill a regulatory gap between the Capital Requirements Regulation and Markets in Crypto-Assets Regulation (MiCA), EIOPA said, noting that the European Union’s regulatory framework for insurers currently lacks specific provisions on crypto assets.

EIOPA outlined four options for the European Commission to consider — one: make no changes; two: mandate an 80% “stress level” to crypto assets; and three: mandate a 100% stress level to crypto asset.

The stress level percentages determine how much capital firms need to hold to stay solvent.

The fourth option called on the European Commission to consider the risks of tokenized assets more broadly.

EIOPA said option three would be the most appropriate option.

“An 80% stress to the value of crypto-asset exposures does not appear sufficiently prudent,” whereas “a 100% stress is more appropriate and aligns with one of the approaches to the transitional treatment of crypto-assets under CRR,” EIOPA said.

The 100% stress refers to the assumption that the crypto asset prices could fall by 100% and that diversification — spreading the risk across different assets — wouldn’t not reduce this stress. EIOPA pointed out that Bitcoin (BTC) and Ether (ETH) have fallen 82% and 91%, respectively, in the past.

A 100% capital charge for crypto assets would reflect a far stricter approach compared to stocks, which range between 39% and 49%, and real estate, which incurs a 25% capital charge, according to solvency capital requirements laid out in the Commission Delegated Regulation 2015/35.

EIOPA said a 100% capital charge for crypto asset-related (re)insurance undertakings shouldn’t be “overly burdensome” and that there would be no material costs for policyholders.

“The capital requirements would fully capture the risk of crypto-asset with a positive impact on policyholder protection in case there are material exposures in the future.”

Related: Tabit offers USD insurance policies backed by Bitcoin regulatory capital

EIOPA acknowledged that the share of crypto-asset (re)insurance undertakings accounts for just 655 million euros or 0.0068% of all undertakings in Europe — even referring to it as “immaterial.”

“At the same time crypto assets are high risk investments which may result in total loss of value,” EIOPA said, explaining why it recommends option three.

Luxembourg and Sweden could be hit hardest by the proposed rule

Insurers in Luxembourg and Sweden are likely to be the most affected, according to a Q4 2023 report cited by EIOPA, which found that these two countries accounted for 69% and 21% of all crypto asset-related exposures among (re)insurance undertakings.

Ireland, Denmark and Liechtenstein also accounted for 3.4%, 1.4% and 1.2% of the undertakings. 

Most of these undertakings are structured within funds, such as exchange-traded funds, and held on behalf of unit-linked policyholders, EIOPA noted.

EIOPA, however, acknowledged that a broader adoption of crypto assets in the future may require a more “differentiated approach.”

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