White House adviser Kevin Hassett said he does not expect Federal Reserve Chair Jerome Powell to remain on the Fed's board.

White House adviser Kevin Hassett said he does not expect Federal Reserve Chair Jerome Powell to stay on the Fed's board.

South Korea's Financial Services Commission (FSC) and Financial Supervisory Service (FSS), working with the Digital Asset Exchange Association (DAXA), are introducing a single set of withdrawal-delay rules for all registered domestic crypto exchanges. Regulators say the unified framework is aimed at limiting losses from voice phishing schemes that rely on moving funds quickly. The standardized approach also targets loopholes created by exchange-by-exchange policies, which, according to The Korea Times, have been exploited by scammers. Under rules in place since May 2025, exchanges must hold crypto withdrawals for 24 to 72 hours after a deposit, creating time for banks and authorities to flag and block suspicious transfers. Until now, exchanges set their own exemption standards based on factors such as account age, transaction history, trading size, and any record of misconduct. News1 reported that these "withdrawal delay exception" criteria have been particularly vulnerable to abuse, with limited checks allowing some accounts to bypass the waiting period. Between June and September 2025, 59% of identified fraud-linked exchange accounts were placed in exemption categories that avoided the delay. Under the new unified standards, authorities want exemption accounts reduced to under 1% of users. Exchanges will also be required to strengthen KYC, checks on the source of funds, and ongoing monitoring for accounts granted exemptions. Regulators plan recurring customer reviews for exempt accounts, including routine verification of where funds originate at least once a year. Exchanges will also be required to implement a system to track and analyze withdrawal patterns more systematically. Exemptions will remain available when immediate withdrawals are genuinely necessary, such as for settlement. The move adds to a broader tightening of South Korea's crypto oversight, including AI-driven transaction surveillance and the possibility of early account freezes for suspected market manipulators. On Monday, the FSC also ordered domestic exchanges to adopt a new 5-minute asset-matching system after concluding that some major platforms' existing "kill switches" were unreliable. For the market, the more predictable 24–72 hour "cooling-off" window for new users and large fresh deposits is likely to dampen fast-money flows and certain arbitrage strategies, particularly transfers to self-custody wallets or offshore venues. Standardized delays and tighter exemptions may raise the bar for scam rings attempting to open accounts across multiple exchanges, while potentially encouraging sophisticated traders to shift toward longer-term positioning, regulated-venue derivatives, or non-Korean liquidity hubs. If fraud indicators improve, South Korea's unified-delay model could be adopted in other high-risk jurisdictions as a "best practice" for managing scam-prone retail flows. Cover image from Perplexity. BTCUSDT chart from Tradingview.

IRGC-affiliated networks have moved $178 million in cryptocurrency connected to Houthi oil sales over the past year, according to data cited by @IanAllison123. The wider cluster of related entities shows nearly $1 billion in overall crypto activity.

A Seoul Administrative Court has annulled the Financial Intelligence Unit's (FIU) three-month partial suspension of Dunamu, the operator of crypto exchange Upbit, sharpening the debate over how South Korea applies anti-money laundering (AML) rules to digital-asset platforms. According to Yonhap News Agency, the court accepted Dunamu's challenge to the FIU sanction issued in February 2025. The measure had barred new Upbit users from transferring digital assets for three months. The ruling turns on regulatory clarity. The court said requirements are clearly laid out for transfers above 1 million won (about $675). For smaller transactions, it found the relevant rules were not specific enough to support a major enforcement action. The decision effectively limits the FIU's ability to impose sweeping AML penalties when the compliance bar is not spelled out in practice. Key points - The court overturned the FIU's three-month partial suspension of Dunamu, siding with the exchange operator's legal challenge. - It held that while large transfers face clear compliance expectations, guidance for smaller transfers was too imprecise to justify the sanction. - The decision tightens the standard for imposing significant AML penalties absent clearly defined, demonstrable requirements. - The court accepted Dunamu's position that it had taken proactive remediation steps and found no clear evidence of intent or gross negligence. Background: what the FIU alleged The FIU argued Dunamu enabled transactions involving unregistered overseas virtual asset service providers (VASPs) and failed to meet customer due diligence obligations. It also pointed to a broader review during Upbit's licensing process that flagged hundreds of thousands of suspected KYC issues. Dunamu sought court relief, contending the sanction relied on standards that were not sufficiently concrete or enforceable for the conduct the regulator expected. How the decision reshapes AML enforcement The court underscored that sanctions must rest on clearly articulated rules. Where the "rulebook" is not explicit for certain transaction sizes, punishing operators on that basis becomes difficult. In practical terms, the decision may push regulators to refine or clarify AML expectations for lower-value transfers, which make up a sizable share of day-to-day exchange activity. Regulatory and market implications The judgment lands as South Korea tightens crypto oversight while industry participants complain of uncertainty in how rules are applied. For investors and market participants, the ruling signals judicial scrutiny over AML enforcement and may reduce the risk of abrupt, broad-based suspensions when guidance is ambiguous. Exchanges are still likely to respond by strengthening internal controls, including KYC and due diligence processes, to be prepared for tighter and more explicit requirements. Impact on Upbit operations The February 2025 sanction restricted new-user transfers as part of the FIU's AML crackdown. After Dunamu filed suit, the court granted an injunction on March 27, 2025, allowing Upbit to continue onboarding while the case was pending. With the sanction now overturned, Upbit can move toward normal operations, subject to continued regulatory oversight and any further legal steps. What to watch next Market participants will be monitoring whether the FIU appeals the ruling or updates guidance covering smaller-value transfers, cross-border activity, VASP registration, and customer due diligence. The case highlights a broader policy issue: enforcement is more durable when compliance standards are concrete, accessible, and consistently applied.

U.S. federal regulators are escalating scrutiny of Kalshi's sports and event-based contracts, with the Department of Justice and the Commodity Futures Trading Commission arguing the products should be treated as financial swaps. The regulatory push comes as enforcement activity in Arizona intensifies.

U.S. Treasury Secretary Scott Bessent wrote in The Wall Street Journal that Congress should swiftly approve the CLARITY Act to set clearer regulatory rules for cryptocurrencies, tokenized assets and decentralized exchanges, Cointelegraph reported. Bessent said the global crypto market's roughly $3 trillion valuation is putting U.S. leadership in financial innovation at risk, and warned that with limited room on the Senate calendar, lawmakers should not wait. The legislation cleared the House of Representatives in July 2025 but has yet to advance in the Senate, where negotiations have bogged down over how to classify and regulate yields paid on stablecoins. A White House Council of Economic Advisers report said banning stablecoin yields would have little effect on bank lending, raising costs by about $2.1 billion, while imposing an estimated $800 million in annual welfare losses on users. Separately, Treasury proposals under the GENIUS Act would require stablecoin issuers to implement anti-money-laundering compliance systems and would give issuers authority to freeze or block specific transactions.

The U.S. Treasury's Financial Crimes Enforcement Network (FinCEN) and the Office of Foreign Assets Control (OFAC) have proposed new anti-money laundering and sanctions compliance rules aimed at stablecoin issuers. The initiative targets payment stablecoin providers covered by the GENIUS Act, with issuers expected to meet bank-like compliance standards. U.S. officials said the proposal is designed to close gaps in oversight related to illicit finance while allowing innovation to continue under tighter controls.

A dispute between the banking industry and the crypto sector over stablecoin interest rates has slowed progress in Congress on the Clarity Act, a sweeping proposal aimed at setting the rules of the road for the U.S. cryptocurrency market. U.S. Treasury Secretary Scott Bessent told The Wall Street Journal he wants lawmakers to move quickly to pass the bill, arguing that clear federal standards are needed to preserve America's global leadership in digital assets. He said the market for digital assets has already become a foundational part of the global financial system, yet the U.S. still lacks a coherent regulatory framework. Bessent pointed to last year's Genius Act as a positive step that created a framework for U.S. dollar‑denominated stablecoins, while stressing that oversight for the broader digital asset market remains unsettled. He said regulatory gaps and uneven enforcement have pushed crypto companies to build outside the U.S., noting that market participants have faced conflicting approaches as the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) applied different standards. With some firms and developers relocating to jurisdictions such as Singapore and Abu Dhabi for clearer rules, Bessent said passing the Clarity Act has become urgent. He said the legislation would define how to determine whether a digital asset is a security and would create a registration regime for trading platforms and brokerage firms. Bessent added that maintaining the United States' position as a financial center requires responding to technological change by setting regulatory standards, and urged Congress to define the structure of the digital asset market through legislation. *This is not investment advice. Continue Reading: US Treasury Secretary Scott Bessent Warns About Cryptocurrencies! Issues Urgent Call for Action!*