Hong Kong’s Securities and Futures Commission (SFC) said it will permit licensed brokers to provide virtual asset margin financing and outlined a regulatory framework for crypto perpetual contracts aimed at professional investors. The measures mark a further expansion of the city’s supervised digital asset market while maintaining limits on retail participation.

Under the updated guidance, brokers may extend margin financing backed by virtual assets to eligible securities margin clients with sufficient collateral and established credit profiles. Initially, only Bitcoin and Ether will qualify as collateral. The SFC said the initiative is structured within the existing securities margin regime, including controls on collateral concentration, valuation haircuts, and governance standards.

The regulator also introduced a high-level framework allowing licensed virtual asset trading platforms to develop leveraged perpetual contracts. Access will be restricted to professional investors, and affiliated entities may act as market makers subject to conflict-of-interest safeguards, operational independence, and enhanced security requirements.

Liquidity and Market Depth under ASPIRe

In remarks delivered at Consensus Hong Kong 2026, SFC Executive Director Eric Yip said the regulator’s digital asset agenda has entered a “defining stage” under its Access, Safeguards, Products, Infrastructure and Relationships, or ASPIRe, roadmap. He characterized liquidity and price discovery as central priorities for 2026.

Yip said the margin financing framework is designed to enable responsible leverage that supports market depth without undermining financial stability. He added that perpetual products will follow a principles-based model emphasizing disclosure, internal risk controls and transparent governance. The inclusion of affiliate market makers, he noted, aims to narrow spreads and improve execution quality within a supervised environment.

Competitive Positioning in Regional Crypto Markets

The policy shift comes as Asian financial centers compete to attract digital asset businesses amid evolving global regulatory standards. Hong Kong has pursued a regulated-access model, emphasizing institutional participation and robust oversight rather than broad retail liberalization.

Recent announcements include plans to introduce legislation covering crypto advisory services and align reporting requirements with the OECD’s Crypto-Asset Reporting Framework. Separately, the Hong Kong Monetary Authority has indicated it may begin granting stablecoin issuer licenses in the coming months, with initial approvals expected to be limited.

Together, the margin financing and perpetual trading framework signal Hong Kong’s intent to deepen its regulated crypto derivatives and financing markets. By expanding product offerings for professional investors while preserving supervisory guardrails, authorities are seeking to balance innovation, competitiveness and systemic risk management in a rapidly evolving sector.

The European Parliament has formally endorsed the European Central Bank’s digital euro initiative, positioning it as a strategic instrument to reinforce the bloc’s monetary sovereignty and payment resilience. Lawmakers adopted the ECB’s annual report with 443 votes in favor, 71 against, and 117 abstentions, backing language that described the digital euro as essential to safeguarding the integrity of the single market.

The resolution highlights concerns over Europe’s dependence on non-EU payment providers and private digital instruments. Members of the European Parliament emphasized that a central bank-issued digital currency could help reduce fragmentation in retail payments while preserving the role of public money in an increasingly digital economy. At the same time, lawmakers reiterated that the ECB must remain independent and insulated from political pressure.

Central Bank Independence and Institutional Credibility

During the parliamentary debate, several lawmakers stressed that institutional credibility rests on the ECB’s autonomy. Johan Van Overtveldt, a Belgian MEP and former finance minister, warned that political interference in monetary policy historically leads to inflation and financial instability. He argued that reaffirming central bank independence is particularly important amid heightened geopolitical tensions and economic uncertainty.

The resolution underscores that both cash and a future digital euro would retain legal tender status, signaling a dual-track approach to public money. By preserving physical currency alongside a digital alternative, policymakers aim to balance innovation with continuity in the euro area’s monetary framework.

Strategic Payments Infrastructure in a Shifting Global Order

Support for the digital euro reflects broader macroeconomic and geopolitical considerations. ECB officials have increasingly framed the project as a hedge against external vulnerabilities, including reliance on foreign payment networks and the growing presence of private stablecoins. In recent remarks, senior ECB figures described the digital euro as public money in digital form, designed to ensure that core retail payments infrastructure remains under European control.

The debate also comes as other major economies explore central bank digital currencies and as global payment systems become more interconnected. Policymakers and economists have argued that without a public digital option, private issuers and overseas providers could expand their influence in Europe’s payments ecosystem, particularly during periods of market stress.

While the digital euro remains in the preparatory phase, parliamentary backing strengthens the political foundation for continued development. The initiative now sits at the intersection of monetary policy, financial stability, and strategic autonomy, as European institutions weigh competitiveness and resilience in a rapidly evolving digital payments landscape.

Former FTX chief executive Sam Bankman-Fried has petitioned a federal court for a new trial on fraud charges, arguing that previously unavailable witness testimony could materially weaken the government’s case. The motion, filed on February 5 in Manhattan federal court, challenges his 2023 conviction that resulted in a 25-year prison sentence. The request is separate from Bankman-Fried’s ongoing appeal and faces a high legal threshold, with new trials granted only in limited circumstances.

The filing was submitted on Bankman-Fried’s behalf by his mother, Barbara Fried, a retired Stanford Law School professor. Courts generally require that new evidence be both unavailable at the time of trial and likely to produce a different outcome. Legal analysts cited by Bloomberg have described the effort as a long shot, though it keeps pressure on the conviction as appeals proceed.

Witness Testimony and Judicial Conduct

Bankman-Fried’s motion centers on potential testimony from former FTX executives Daniel Chapsky and Ryan Salame, neither of whom testified at trial. The defense argues that their accounts could challenge the prosecution’s portrayal of FTX’s financial condition prior to its November 2022 collapse. Prosecutors had argued that customer funds were systematically misused to support affiliated trading firm Alameda Research.

Salame previously pleaded guilty to campaign finance and fraud-related charges and is serving a seven-and-a-half-year prison sentence. Bankman-Fried contends that the absence of this testimony limited the jury’s understanding of internal decision-making at FTX. The motion also asks that a different judge review the request, alleging that trial judge Lewis Kaplan displayed prejudice that constrained the defense’s case.

These arguments mirror claims raised during Bankman-Fried’s appeal, including assertions that the court improperly restricted evidence suggesting sufficient assets existed to repay customers. Kaplan has previously rejected those claims, stating that the proposed evidence did not negate fraudulent intent.

Broader Industry and Institutional Context

The renewed legal maneuver comes as the crypto industry continues to grapple with the institutional fallout from FTX’s collapse, one of the most consequential failures in digital asset history. The case accelerated regulatory scrutiny globally, reshaped risk assessments among institutional investors, and contributed to tighter controls at exchanges and trading firms.

Meanwhile, the FTX bankruptcy estate has made progress in returning funds to creditors. Court-appointed administrators distributed billions of dollars in 2025 through a phased repayment process, with further payouts expected as asset recoveries continue. Those efforts have partially restored confidence among affected customers, even as legal proceedings against former executives remain active.

For regulators and market participants, Bankman-Fried’s motion underscores the prolonged legal aftershocks of the FTX failure. While unlikely to succeed, the bid for a new trial highlights how high-profile enforcement cases can remain contested years after a verdict, influencing perceptions of accountability and governance across the digital asset sector.

Gemini’s decision to exit the United Kingdom, the European Union, and Australia to refocus on the United States and Singapore has sharpened debate over whether the UK’s unfinished crypto rulebook is deterring firms policymakers hoped to attract. The move comes nearly three years after the UK government publicly committed to making the country a global center for cryptoasset technology.

In a strategy update published February 5, Gemini said several international markets had proven “hard to win,” leaving the exchange operationally stretched and facing rising organizational complexity and costs. While the company did not single out regulators, industry groups say the decision reflects mounting frustration with regulatory uncertainty and compliance burdens relative to market opportunity.

Regulatory Ambition Meets Execution Risk

In April 2022, then-Chancellor Rishi Sunak outlined plans to position the UK as a global crypto hub, announcing stablecoin legislation and launching a Financial Conduct Authority CryptoSprint to accelerate rulemaking. Nearly four years later, large parts of the framework remain in transition, with firms operating under interim guidance and overlapping regimes.

Susie Violet Ward, chief executive of Bitcoin Policy UK, said Gemini’s exit illustrates how drawn-out rulemaking and high compliance costs are discouraging investment. She noted that companies face a patchwork of anti-money laundering registration, financial promotions rules, and provisional standards while a full prudential regime remains years away. According to Ward, capital deployment depends on regulatory clarity and confidence, both of which remain limited.

Laura Navaratnam, head of UK policy at the Crypto Council for Innovation, described Gemini’s withdrawal as a blow for policymakers attempting to finalize the framework ahead of license applications opening later this year. Under current proposals, crypto firms serving UK customers will need to apply for full FCA authorization during a five-month gateway window from late 2026, before the new regime takes effect in 2027.

Compliance Costs and Competitive Pressure

Industry executives warn that unresolved issues could prompt further exits. Navaratnam highlighted uncertainty around how the FCA’s stablecoin rules will interact with the Bank of England’s systemic oversight regime, raising the risk of abrupt transitions for firms as they scale. Without alignment, companies may face a regulatory cliff edge as they move between frameworks.

CoinJar chief executive Asher Tan said the shift from a limited AML registration model to full Financial Services and Markets Act authorization materially raises the operational burden for exchanges. Firms must now weigh the cost of meeting higher capital, liquidity, and governance standards against the commercial opportunity of the UK market.

While retrenchment is not unique to Britain, critics argue the UK risks losing ground to jurisdictions offering clearer timelines and more predictable requirements. Surveys cited by Bitcoin Policy UK indicate that banking access challenges and account closures remain common, further complicating operations for crypto businesses.

The FCA is currently consulting on a proposed prudential regime that would extend its rules to trading, staking, and dealing activities, embedding capital and liquidity requirements across the sector. The consultation closes this week, with the full regime expected to take effect in late 2027.

For firms considering long-term commitments, the direction of travel may be clear, but the costs are rising. Gemini’s exit suggests that until the UK delivers a coherent and timely framework, its ambition to be a global crypto hub will remain difficult to realize.

US spot Bitcoin exchange-traded funds extended a tentative recovery this week, drawing $145 million in net inflows on February 9 as Bitcoin traded near the $70,000 level. The latest additions follow $371 million in inflows last Friday, offering early indications that institutional demand may be stabilizing after weeks of sustained redemptions.

While the recent inflows have not reversed broader losses, they mark a notable deceleration in selling pressure. Spot Bitcoin ETFs remain down $1.9 billion year-to-date and recorded $318 million in outflows last week. However, the slowing pace has led some analysts to suggest the market may be approaching an inflection point for crypto investment products.

Slowing Redemptions Signal Possible Inflection

According to CoinShares, crypto fund outflows moderated sharply despite continued price volatility. CoinShares head of research James Butterfill said outflows slowed to $187 million even as Bitcoin remained under pressure, a pattern that has historically preceded trend reversals in digital asset flows.

Bitcoin’s price action has been shaped more by macro conditions than crypto-specific stress. Tighter financial conditions and elevated interest rates have weighed on risk assets broadly, limiting upside despite growing institutional participation. Analysts at Bernstein recently described the current downturn as the weakest bear case in Bitcoin’s history, pointing to the absence of major failures across exchanges, custodians, or lending markets.

This relative resilience has helped contain ETF redemptions compared with previous drawdowns, when structural breakdowns accelerated investor exits. The stabilization in flows suggests that long-term allocators may be reassessing exposure rather than continuing to reduce positions.

Early Holders Trim, Not Exit

Bitcoin’s increasing institutionalization has raised concerns that early adopters could exit the market as large asset managers gain influence through ETFs. However, executives at Bitwise argue that this dynamic has not played out in practice.

Bitwise chief investment officer Matt Hougan said early Bitcoin holders are largely maintaining exposure, even as ETFs experience volatility-driven flows. Rather than exiting entirely, many long-term holders are selectively trimming positions after substantial gains. This behavior has helped maintain a base of non-institutional ownership alongside new capital entering through regulated products.

Hougan acknowledged that a subset of early Bitcoin supporters remains uncomfortable with the growing role of traditional finance firms. However, he described that group as a shrinking minority as the asset class matures and integrates further into institutional portfolios.

Broader ETF Market Context

The rebound in Bitcoin ETFs has also coincided with renewed interest in spot altcoin products. On Monday, Ether ETFs recorded $57 million in inflows, while XRP-focused products added $6.3 million, according to market data. The broader participation suggests that investors are selectively re-engaging with crypto exposure rather than abandoning the sector altogether.

As Bitcoin continues to trade within a macro-driven range, ETF flows are likely to remain sensitive to shifts in liquidity and rate expectations. Still, the recent inflows point to a market transitioning from forced selling toward more balanced positioning, reinforcing the view that institutional participation is becoming a stabilizing force rather than a source of volatility.

Telegram has launched Mira, its first blockchain-based artificial intelligence assistant, marking a significant expansion of the messaging platform’s technology stack into AI-driven services. Developed by The Open Platform, Mira operates within Telegram chats and is built on the Cocoon network, a framework introduced in late 2025 to support privacy-focused and anonymous AI interactions.

The assistant is designed to perform common consumer tasks, including answering questions, searching for information, and generating text, images, and videos. Basic interactions are free, while more advanced features require credits purchased using Telegram Stars, the app’s internal currency. The rollout reflects Telegram’s broader effort to embed advanced digital services directly into its messaging interface rather than through standalone applications.

Privacy Architecture and Multi-Model Design

Mira is structured around two operating modes that emphasize user choice around data handling. In private mode, the assistant does not store memory, and interactions are encrypted and discarded after completion. In standard mode, Mira retains contextual information, allowing it to remember preferences and adapt responses over time. This dual structure positions privacy as a configurable feature rather than a fixed default.

Technically, Mira relies on a multi-model architecture that routes tasks to different AI systems based on function. Text-based queries are handled by large language models, while image and video generation are powered by specialized third-party systems available to paid users. This approach allows Telegram to combine external AI capabilities within a single interface, avoiding reliance on a proprietary model while accelerating feature development.

Near-term updates are expected to expand Mira beyond one-on-one chats. Planned integrations include group conversations, channels, automated summaries, and AI personas designed to interact with users in distinct styles. These features would move Mira closer to a persistent layer across Telegram’s social graph.

Blockchain, Payments, and Competitive Context

Mira’s launch aligns with Telegram’s parallel push into blockchain-based commerce. The Open Network Foundation recently introduced TON Pay, a payments software development kit that enables cryptocurrency transactions directly inside Telegram Mini Apps. The system allows merchants to accept Toncoin and supported stablecoins through a wallet-agnostic checkout flow embedded in chats.

TON Pay is designed for scale, targeting Telegram’s estimated 1.1 billion monthly active users. According to the foundation, transactions are expected to settle in under a second, with typical fees below one cent. Initial use cases focus on in-app commerce, with future support planned for subscriptions, gasless transactions, and regional fiat off-ramps to address compliance requirements.

Together, Mira and TON Pay position Telegram more firmly in the emerging “everything app” landscape, where messaging, payments, and digital services converge. Competitors such as X and Coinbase are pursuing similar strategies by integrating financial tools and AI into consumer platforms. While Telegram and TON continue to face scrutiny over governance and decentralization, the company is betting that tightly integrated AI and payment infrastructure can differentiate its ecosystem from traditional messaging and fintech models.

Michael Saylor’s Strategy, the world’s largest publicly listed corporate holder of Bitcoin, disclosed a new $90 million purchase of the cryptocurrency, adding 1,142 BTC to its balance sheet. The acquisition was completed at an average price of approximately $78,815 per coin, according to a filing with the US Securities and Exchange Commission.

The purchase came during a period of heightened market volatility, with Bitcoin trading below Strategy’s average acquisition price for much of the week and briefly dipping to around $60,000 on major exchanges. Despite the drawdown, the company did not time the local lows, instead continuing its incremental accumulation strategy. The latest transaction brings Strategy’s total holdings to 714,644 BTC, acquired for roughly $54.35 billion at an average price of $76,056 per Bitcoin.

Accumulation Strategy amid Market Weakness

By purchasing Bitcoin above its existing cost basis, Strategy avoided lowering its average entry price, a dynamic that has drawn attention from market participants. Bitcoin has remained below the company’s average purchase price since the acquisition, underscoring the near-term unrealized losses embedded in Strategy’s position.

This approach is consistent with Strategy’s historical behavior during prior market cycles. In 2022, when Bitcoin traded below the firm’s average cost near $30,600, the company slowed the pace of large acquisitions but continued to add smaller amounts. The current purchase marks only the second time this cycle that Strategy has added Bitcoin while prices remained below its overall cost basis, reinforcing its stated long-term conviction rather than a tactical trading posture.

Institutional Context and Market Implications

Strategy’s continued buying comes as institutional sentiment toward Bitcoin remains mixed. Spot Bitcoin exchange-traded funds have seen uneven flows in recent weeks, while macro uncertainty around interest rates and liquidity conditions has pressured risk assets broadly. Against this backdrop, Strategy’s balance-sheet-driven accumulation stands out as one of the largest single sources of consistent demand in the Bitcoin market.

The company’s equity has continued to track Bitcoin’s volatility. Strategy shares fell sharply alongside the broader crypto market before rebounding with a late-week recovery, reflecting the tight linkage between its stock performance and Bitcoin price movements. As mining economics tighten and corporate treasuries reassess digital asset exposure, Strategy remains a distinct case of concentrated, long-duration Bitcoin allocation at an institutional scale.

Pop music icon Justin Bieber has seen the valuation of his Bored Ape Yacht Club (BAYC) NFT decline by more than 99% relative to its purchase price. In January 2022, Bieber acquired Bored Ape #3001 for 500 ETH, which was valued at approximately $1.3 million at the time of the transaction. By early 2026, the asset is estimated to be worth less than 6 ETH, or roughly $12,000, as the broader digital collectibles market continues its multi-year correction.

The asset, which lacks rare visual attributes, was widely criticized by the NFT community at the time of acquisition for its significant premium over the collection’s floor price. While the BAYC floor price briefly rallied to a peak of $429,000 in April 2022, the subsequent “NFT winter” has substantially eroded the market capitalization of even the most prominent collections. This trend reflects a broader cooling of celebrity-driven speculative activity in favor of assets with tangible utility or institutional backing.

Structural Shifts in Digital Asset Liquidity

The structural decline in NFT valuations coincides with a fundamental shift in the global digital asset landscape. Institutional liquidity has increasingly migrated toward regulated investment vehicles, such as spot Bitcoin and Ethereum exchange-traded funds (ETFs). According to recent reports from the World Economic Forum, 2026 represents an “institutional era” where market participants prioritize infrastructure maturity over speculative hype.

This realignment has reduced the capital available for high-risk digital art, leading to a flight to quality among collectors. As the market matures, the distinction between historical assets and common speculative tokens has become more pronounced. Analysts observe that liquidity is now concentrated in a handful of projects that have demonstrated long-term resilience or successful brand extensions.

Competitive Pressures and Ecosystem Evolution

The competitive hierarchy within the NFT sector has also experienced significant volatility since 2022. Bored Ape Yacht Club, once the undisputed leader in market capitalization, now faces intense pressure from collections such as Pudgy Penguins. By early 2026, Pudgy Penguins has occasionally surpassed BAYC in market cap, driven by successful physical merchandising and the launch of its native token.

In contrast, legacy collections like CryptoPunks have maintained higher floor prices, often trading near $60,000, due to their perceived status as digital “antiquities.” The rebalancing of portfolios toward yield-bearing assets and real-world asset (RWA) tokenization has further limited the secondary market demand for non-utility-based NFTs. This diversification suggests that investors are seeking value preservation over purely visual assets.

To counter these headwinds, BAYC creator Yuga Labs has pivoted toward an ecosystem-centric strategy. The company officially launched its Otherside metaverse in late 2025 and is currently constructing a physical clubhouse in Miami to foster community engagement. These initiatives represent a move away from pure digital speculation toward an integrated social and gaming platform. However, the success of these long-term infrastructure plays remains subject to broader market adoption and the evolving preferences of the digital-native generation.

Tether reported record growth in both users and reserves for its USDT stablecoin during the fourth quarter of 2025, even as the broader crypto market experienced one of its sharpest downturns in recent years. According to Tether’s quarterly market report, USDT market capitalization rose by $12.4 billion during the quarter to a new high of $187.3 billion, extending its lead as the world’s largest stablecoin.

The company estimated that USDT added 35.2 million new users in Q4, bringing its global user base to approximately 534.5 million. This marked the eighth consecutive quarter in which USDT added more than 30 million users, underscoring continued adoption despite heightened volatility following the October market liquidation event.

User Adoption Outpaces Broader Market

On-chain data showed continued expansion in wallet usage, with the number of on-chain USDT holders increasing by 14.7 million to 139.1 million during the quarter. USDT wallets accounted for roughly 70.7% of all stablecoin wallets, reinforcing its dominant position in the sector. Tether also estimated that more than 100 million users hold USDT on centralized platforms, highlighting the token’s role as a liquidity and settlement tool beyond decentralized networks.

Monthly active on-chain users averaged a record 24.8 million during the quarter, reflecting sustained transactional demand. Tether attributed this growth to USDT’s utility across payments, remittances, and value storage, particularly in regions where access to traditional banking remains limited or where local currencies face volatility.

Reserves Expand amid Institutional Focus

Tether’s total reserves grew by $11.7 billion in the fourth quarter to $192.9 billion, strengthening the balance sheet behind USDT issuance. Reserve assets included $141.6 billion in US Treasuries, 96,184 Bitcoin, and 127.5 metric tons of gold, reflecting a diversified reserve strategy that blends traditional financial instruments with select digital and commodity exposure.

The expansion came despite a challenging macro backdrop. Crypto markets suffered a major liquidation cascade in October 2025, followed by elevated volatility through year-end. Bitcoin prices declined sharply and were trading near $71,200 by early February 2026, marking the lowest levels since October 2024. Over the same period, the total crypto market capitalization fell by more than one-third.

Competitive and Macro Context

Against this backdrop, USDT’s growth contrasted with declines seen among competing stablecoins. Tether reported that while USDT grew approximately 3.5% following the October liquidation event, the second- and third-largest stablecoins saw declines of 2.6% and 57%, respectively. The divergence highlights a consolidation trend within the stablecoin market, with liquidity gravitating toward issuers perceived as systemically important.

Separately, reports this week indicated that Tether has revised its potential fundraising plans, with advisers discussing a raise of around $5 billion, down from earlier figures. While no formal transaction has been announced, the adjustment reflects a more cautious capital environment as regulatory scrutiny and macro uncertainty continue to shape the digital asset sector.

Bhutan has made its second Bitcoin transfer in a week, moving roughly $22 million worth of the cryptocurrency to a market maker as prices remain under pressure and mining economics deteriorate. Blockchain analytics firm Arkham shows the country transferred 184 Bitcoin on Wednesday, following a 100.8 Bitcoin transfer late last week. Both transactions were sent to QCP Capital, a move that typically signals preparation for liquidation.

The transfers mark a continued reduction in Bhutan’s national Bitcoin reserves, which have fallen from a peak of 13,295 BTC in October 2024 to about 5,700 BTC. Since launching its state-backed mining initiative in 2019, powered largely by hydroelectric energy, Bhutan has accumulated approximately $765 million in Bitcoin. However, Arkham data indicates the cost to mine one Bitcoin has nearly doubled since the 2024 halving, significantly reducing mining output compared with 2023 levels.

Mining Economics and Reserve Management

Rising operational costs appear to be reshaping Bhutan’s approach to managing its digital asset reserves. In 2023, the country mined roughly 8,200 BTC, but production has slowed materially as lower prices and greater difficulty compress margins. Arkham noted that Bhutan has historically sold Bitcoin in batches of around $50 million, suggesting the latest transfers fit a recurring treasury management pattern rather than an abrupt policy shift.

As a result of the drawdown, Bhutan has slipped to seventh place among nation-state Bitcoin holders, trailing the United States, China, the United Kingdom, Ukraine, El Salvador, and the United Arab Emirates. The state-owned investment arm Druk Holding and Investments has not publicly commented on the latest transfers, maintaining a low profile around its crypto strategy amid volatile market conditions.

Broader Market and Macro Pressures

The reduction in Bhutan’s holdings comes as Bitcoin trades more than 42% below its October all-time high of $126,080, with prices hovering under $72,000. Market sentiment has weakened to levels last seen in mid-2022, reflecting broader risk aversion across global markets. Investors have increasingly favored traditional safe havens such as gold and silver despite elevated global liquidity.

Macro uncertainty has compounded crypto market stress, with concerns ranging from U.S. government shutdowns and renewed trade tensions to stalled digital asset legislation in Washington. Additional narratives, including quantum computing risks and a recent dip in Bitcoin network hashrate below one zetahash per second, have further weighed on sentiment. Against this backdrop, Bhutan’s latest Bitcoin transfers underscore how even sovereign holders are reassessing exposure as structural and macro pressures converge.