China is escalating its scrutiny of digital asset activity as the People’s Bank of China (PBOC) convenes senior officials across law enforcement, cyberspace administration, and judicial bodies. The meetings center on new enforcement measures aimed at curbing stablecoin and crypto payments that officials say have resurfaced despite the country’s 2021 ban. Regulators cited a rise in unauthorized fundraising, cross-border transfers, and online fraud schemes tied to anonymized digital asset flows.

Authorities reiterated that virtual assets have no legal tender status in China and cannot circulate as a means of payment. Stablecoins, in particular, were flagged for complicating customer identification and hindering financial investigations. Officials described these factors as contributing to broader financial risk management challenges at a time when local governments face fiscal constraints.

Institutional Coordination and Market Implications

The PBOC is calling for tighter inter-agency coordination, including enhanced monitoring tools, data-sharing infrastructure, and closer cooperation between financial supervisors and public security units. The initiative aligns with China’s broader effort to safeguard capital controls and reinforce oversight of domestic payment channels amid macroeconomic pressures.

China’s posture also reflects growing sensitivity to digital asset developments outside the mainland. Earlier this year, the securities regulator informally asked major Hong Kong brokerages to pause tokenization projects, signaling caution toward offshore digital asset expansion. Meanwhile, state-linked enterprises have explored blockchain-based settlement models, and policymakers are discussing the potential issuance of yuan-backed stablecoins to strengthen China’s role in global payments.

These moves illustrate Beijing’s dual approach: restricting private crypto activity while assessing controlled, state-managed digital finance systems. The renewed enforcement push suggests rising concern that stablecoin flows could undermine domestic oversight as global regulatory frameworks continue to advance.

CoinShares has ended its push to list three cryptocurrency exchange-traded funds, formally withdrawing applications tied to Solana, XRP, and Litecoin. Updated documents filed with the Securities and Exchange Commission (SEC) show that the issuer requested withdrawal of each registration, noting that no shares were sold and no transactions occurred under the proposed structures.

The ETF plans had been in development for much of the year, with the Solana Staking ETF originally filed in June and amended several times through early fall. Similar withdrawal requests were filed for the XRP and Litecoin products, each stating that the anticipated launch conditions were not met. All letters were signed by Charles Butler, a senior financial officer at the firm.

The move highlights how issuers may be reevaluating product viability amid shifting regulatory signals. Several crypto ETF applications have experienced revisions or structural adjustments across the industry, including changes in other XRP-related filings from separate firms.

Regulatory Shifts and Competitive Pressures Shape Issuer Decisions

CoinShares’ decision arrives as the SEC accelerates review timelines for digital asset products and continues to refine its expectations for disclosures, custody, staking mechanisms, and market surveillance. The agency recently pulled back several delay notices covering Solana and XRP ETF proposals, suggesting a more active regulatory stance heading into 2025.

At the same time, the competitive landscape for crypto ETFs has tightened. Established asset managers and specialist firms are competing across multiple asset classes, from bitcoin and ether to emerging single-token products. Timing and liquidity considerations are increasingly central as issuers seek first-mover advantage and aim to align with institutional demand patterns.

Other firms are still advancing their filings. Franklin Templeton recently submitted its final Solana ETF registration after progress on its XRP product, reflecting continued interest from large managers to broaden their crypto lineups despite market volatility.

The asset prices of Solana, XRP, and Litecoin traded lower following the withdrawal notices, according to market data, with XRP down slightly and Solana and Litecoin declining a bit more than 2 percent.

While the pullback does not preclude CoinShares from reentering the market, it underscores the operational and regulatory complexity surrounding new crypto ETFs at a time when investor attention remains focused on product structure, liquidity, and long-term adoption trends.

KuCoin’s European arm has obtained a Markets in Crypto Assets (MiCA) regulation license in Austria. This marks a significant step in the exchange’s expansion across the European Economic Area (EEA). The license will allow KuCoin EU to provide regulated crypto services throughout member states, leveraging the MiCA framework designed to standardize compliance across the region.

MiCA Framework and Regulatory Context

MiCA, which came into effect late in 2024, enables crypto companies to obtain a license in a single EEA market and passport their services across other member states. The framework aims to provide regulatory certainty for investors and companies alike, though some market observers have expressed concerns over inconsistent licensing practices across certain jurisdictions.

Global Expansion and Institutional Positioning

The licensing comes shortly after KuCoin registered with Australia’s financial intelligence agency, Austrac, allowing it to operate legally as a crypto exchange in the country. Together, these developments reflect the firm’s broader strategy of expanding regulated operations globally, responding to heightened institutional scrutiny and evolving compliance standards.

KuCoin has over 40 million users in more than 200 countries. Now, it continues to strengthen its institutional credibility amid a period of increasing regulatory focus in Europe and Asia. Analysts note that regulated licenses such as MiCA are essential for exchanges seeking to attract institutional capital and provide greater market stability, especially in a landscape where investor protection and transparency are increasingly prioritized.

Market participants have highlighted that the MiCA framework could accelerate the adoption of crypto services by providing a clear regulatory pathway. For KuCoin EU, the Austrian license not only offers a regulatory footprint but also positions the exchange to compete more effectively with other EEA-licensed platforms. The move is expected to influence competitive dynamics among crypto exchanges as licensing becomes a key differentiator for investor confidence.

The Solana-based meme coin Bonk (BONK) has initiated trading as an Exchange Traded Product (ETP) on the SIX Swiss Exchange, marking a new step in the convergence of volatile digital assets and established financial infrastructure. This launch, facilitated by Swiss-based ETP issuer Bitcoin Capital, offers both institutional and retail clients a regulated avenue to gain exposure to the token through standard brokerage platforms. BONK is currently ranked as the seventh-largest meme coin by market capitalization.

Maturing European Digital Asset Ecosystem

The debut of the BONK ETP reflects Europe’s continued leadership in creating regulated crypto investment vehicles, a trend that began with products tracking Bitcoin and Ethereum. Marcel Niederberger, CEO of Bitcoin Capital and FiCAS, emphasized that Switzerland’s robust regulatory environment and market practices made it the preferred jurisdiction for launching the product.

Regulated access, according to Niederberger, is crucial for fostering investor confidence and improving market liquidity, with the issuer noting that the majority of current inflows into its existing products originate from institutional desks. The firm anticipates a further expansion of regulated products tied to BONK next year, driven by the maturing infrastructure and a rising institutional appetite for thematic digital assets.

Competition and Market Context

The listing of the BONK ETP occurs amid a broader global trend of increased institutional product offerings for meme coins. While Dogecoin (DOGE), the largest asset in the sector, has seen a flurry of recent fund activity in the United States, the European market is beginning to diversify its offerings beyond the market leaders.

By integrating BONK into a regulated exchange, Bitcoin Capital is positioning the product to attract capital seeking exposure to high-velocity assets within the Layer-1 network. The token’s inherent volatility, driven largely by community dynamics and speculative interest, is now packaged for investors who prioritize trading through compliant, liquid financial instruments over direct custody.

Institutional Appetite for Thematic Exposure

The listing of a dedicated ETP for a highly speculative meme coin suggests a growing willingness to engage with the thematic and volatile fringes of the crypto market. Publicly traded companies pivoting to hold crypto treasuries, including meme coins, further indicate a widening scope for digital asset integration into conventional balance sheets.

This structural bridge provided by the ETP allows large-scale investors to access the risk and return characteristics of BONK without navigating the operational complexities of decentralized asset ownership. The development underscores a market segment that views certain community-driven tokens as high-growth, albeit high-risk, directional bets on their underlying blockchain ecosystems, in this case, Solana.

Visa has expanded its stablecoin settlement capabilities across the Central and Eastern Europe, Middle East and Africa region through a new partnership with Aquanow, a global digital assets platform specializing in liquidity and infrastructure.

The integration allows Visa’s issuers and acquirers to settle transactions using approved stablecoins such as USDC, lowering operational costs and significantly accelerating settlement speed for cross-border transactions.

Visa’s move reflects growing demand among banks and payment providers for more efficient settlement mechanisms, especially in regions where traditional cross-border rails remain slow, expensive, and heavily intermediated.

By integrating Aquanow’s digital asset infrastructure into its own payments stack, Visa aims to enable 365-day settlement, improving operational continuity and reducing friction in international money movement.

Visa was one of the first major payments networks to experiment with stablecoin settlement, beginning with a pilot in 2023 that allowed clients to fulfill settlement obligations in USDC. Since then, monthly volume on stablecoin settlement rails has surpassed an annualized 2.5 billion dollars, underscoring accelerating institutional adoption.

“By harnessing the power of stablecoins and pairing them with our trusted global technology, we are enabling financial institutions in CEMEA to experience faster and simpler settlements,” said Godfrey Sullivan, Head of Product and Solutions for the region.

He noted that the Aquanow partnership represents a meaningful step in modernizing the back-end infrastructure of payments and reducing reliance on legacy systems that involve multiple intermediaries.

Aquanow Provides Infrastructure for Digital Asset Settlement

Aquanow, which powers billions of dollars in monthly crypto brokerage and payments volume, will provide the connectivity and infrastructure layer allowing Visa participants to settle in stablecoins with near-instant finality. The firm’s CEO, Phil Sham, said the collaboration will help institutions access digital asset markets with the speed and transparency of internet-native settlement.

Aquanow operates across multiple jurisdictions with regulatory approval, including Dubai’s Virtual Assets Regulatory Authority, where its regional operation offers broker-dealer, lending, and investment services. The partnership aligns with Visa’s broader strategy to support regulated digital asset adoption among traditional financial institutions.

The Future of Global Money Movement

Visa’s expanded settlement capabilities highlight a broader industry shift toward blockchain-enabled financial infrastructure. Stablecoins have become a foundational component in global money movement due to their programmability, transparency, and speed, especially in markets with high remittance volumes and cross-border trade.

The CEMEA region, which includes fast-growing digital payments markets such as the UAE, Saudi Arabia, Kenya, and South Africa, exhibits strong demand for next-generation settlement rails. By combining Visa’s global network with Aquanow’s digital asset expertise, the companies aim to offer a more resilient, low-cost alternative to traditional settlement mechanisms.

As financial institutions increase their use of tokenized money and digital asset settlement, partnerships like this are expected to play a central role in building the future of global payments. Visa’s collaboration with Aquanow reinforces that stablecoins have moved from experimental tools to practical infrastructure powering real-world financial activity.

The South Korean digital asset market was placed under scrutiny after Upbit, the nation’s largest crypto exchange, confirmed a major security incident resulting in the loss of roughly $38 million in Solana-based tokens.

The unauthorized activity was detected at approximately 4:42 a.m. KST on November 27, when a variety of assets, including SOL, USDC, BONK, and TRUMP, were moved from the exchange’s hot wallet to an external, unauthorized address.

Operational Response and Financial Impact

Upon identifying the “abnormal withdrawal,” Dunamu CEO Oh Kyung-seok reported that the exchange immediately suspended all deposit and withdrawal functions to contain the outflow. This swift operational halt enabled the exchange to prevent additional losses. To secure remaining client holdings, Upbit transferred all unaffected digital assets into cold storage.

Following an internal system review confirming the scale of the drain, Upbit announced it would absorb the entire financial impact of the $38 million loss using its own corporate reserves. This commitment is intended to ensure that no user funds are compromised.

The exchange has already frozen approximately $8.20 million in stolen tokens through active on-chain monitoring. Now, it is collaborating with partner projects to track and block the remaining assets as investigators trace their movements across the network.

Regulatory and Institutional Context

The security lapse is expected to draw attention from South Korean law enforcement and financial regulators. Upbit has committed to supplying all necessary data to support an official investigation into the incident, which parallels a major attack the exchange suffered on the same date in 2019. That earlier breach involved the theft of 342,000 ETH, which authorities later attributed to North Korean state-sponsored actors. The historical parallel introduces heightened scrutiny regarding the current attack’s sophistication and origin.

The incident is also unfolding during a significant period for Upbit’s parent company, Dunamu. Reports indicate that Naver, a leading South Korean internet conglomerate, is actively pursuing a multibillion-dollar stock-swap merger to acquire Dunamu.

The security breach adds a layer of operational risk assessment to these corporate merger discussions, potentially influencing the stakeholder calculus regarding Upbit’s stability and its long-term objective of a potential Nasdaq listing. Upbit has initiated a comprehensive, system-wide audit of all deposit and withdrawal infrastructure, extending beyond the affected Solana components, and plans to gradually reopen services only after full stability is confirmed.

Grayscale Investments has officially filed a registration statement with the US Securities and Exchange Commission (SEC) to convert its Grayscale Zcash Trust into an exchange-traded fund. This move would mark the first Zcash-focused ETF in the market, providing a regulated investment vehicle for the 23rd largest cryptocurrency by market capitalization. The existing Grayscale Zcash Trust currently holds over $196 million in assets under management.

The proposed ETF’s investment objective is for the value of the shares to reflect the underlying value of ZEC held by the Trust, minus expenses and liabilities. This structure mirrors Grayscale’s strategy following its successful legal challenge against the SEC regarding the conversion of its Bitcoin trust. The firm has since moved to convert several other closed-end products into ETFs.

Institutional Positioning in the Digital Asset Space

The filing for a Zcash ETF is part of a broader institutional trend by Grayscale to expand its lineup of single-asset crypto ETPs. In the past month, the firm has already converted trusts tracking XRP, Dogecoin, and SOL into exchange-traded products. This proactive strategy allows Grayscale to maintain market leadership and capitalize on increasing investor demand for diversified, regulated crypto exposure.

Zcash, introduced in 2016, is notable for its focus on enhanced user privacy, utilizing zero-knowledge proofs to allow for shielded transactions. Grayscale views this privacy attribute as a “key contributor to a well-balanced digital asset portfolio,” as noted in a recent public statement. The launch of a ZEC ETF provides institutional access to an asset class increasingly valued for its privacy features in the evolving digital economy.

Competitive and Regulatory Environment

The company’s ability to convert these trusts is facilitated by a more receptive regulatory environment within the SEC, particularly under the current administration, which is seeking to clarify its stance on digital assets. This shift has unlocked the path for various crypto-related ETFs and exchange-traded products. Grayscale’s aggressive conversion schedule signals its intent to capture market share across a wider spectrum of digital assets beyond just Bitcoin and Ethereum.

The introduction of a Zcash ETF will offer investors the opportunity to gain ZEC exposure without the complexities of directly purchasing and securing the underlying asset. This makes the product a competitive offering against direct token holdings or over-the-counter trust shares, especially for traditional financial firms and retail brokerages. The focus now shifts to the SEC’s review process, which will determine the timing of the ETF’s market debut.

Standard Chartered has agreed to provide digital asset custody services for 21Shares, one of the globe’s foremost issuers of crypto Exchange Traded Products (ETPs). This move signifies a deeper commitment by traditional financial institutions (TradFi) to the cryptocurrency sector.

However, the announcement raises immediate questions regarding the future positioning and role of Zodia Custody, the digital asset custodian that Standard Chartered co-founded.

21Shares intends to provide institutional investors with a wider and more secure range of solutions by utilizing Standard Chartered’s extensive global experience. Specifically, the collaboration leverages the bank’s status as a top international cross-border institution, its rigorous risk management protocols, and its innovative digital asset custody services.

By integrating a major bank’s services, the collaboration aims to foster a more mature and reliable environment for the adoption of cryptocurrencies and their related products.

“We are excited to offer our digital asset custody services to ETP providers and other institutions, enabling them to meet the highest standards of safety and compliance. Working with 21shares as their digital asset custodian allows us to extend our expertise into the fast-evolving digital asset ecosystem and support digital asset-linked products, providing institutional investors with the assurance they require,” Margaret Harwood-Jones, Global Head of Financing and Securities Services at Standard Chartered, stated.

The Zodia Question

Zodia Custody is a crypto-native custodian that 21Shares partnered with in late June 2024. As of now, it is unclear whether the new arrangement will result in Standard Chartered replacing Zodia Custody entirely or if the two entities will continue to operate in parallel for 21Shares.

This shifting landscape reflects a broader industry trend where established financial institutions are increasingly launching proprietary crypto services, often leveraging their reputation to compete with specialized crypto firms.

Other Major Financial Institutions Follow Suit

Standard Chartered is not alone in deepening its crypto involvement. Several other major banks are making similar strategic moves.

US Bancorp, a large US multinational financial services firm, re-entered the crypto market in September. It relaunched its digital asset custody services, targeting investment managers specifically. This service had originally debuted in 2021 but was discontinued due to a challenging regulatory environment at the time.

In mid-August, reports indicated that Wall Street heavyweight Citigroup is currently considering plans to offer both cryptocurrency custody and payment services.

Apart from this, a similar trend extends to Europe. In July, Deutsche Bank, Germany’s largest bank, revealed its plans to allow clients to store cryptocurrencies, which aligns with a wider push in the nation.