The Ethereum Foundation has announced it is targeting faster transactions, smarter wallets, better cross-chain interoperability, and quantum-resistant security as its “protocol priorities” in 2026.
In a statement published on Wednesday, the Ethereum Foundation outlined several goals, including continuing to scale the gas limit — the maximum amount of computational work a block can handle — “toward and beyond” 100 million, a major topic of discussion among the Ethereum community in 2025.
Some members of the Ethereum community anticipate that the gas limit will increase significantly this year. In November, Ethereum educator Anthony Sassano said that the goal of significantly increasing Ethereum’s gas limit to 180 million in 2026 is a baseline, not a best-case scenario.
“Post-quantum readiness” is a focus for Ethereum
The foundation highlighted the Glamsterdam network upgrade, scheduled for the first half of 2026, as a major priority. It also emphasized long-term post-quantum readiness as part of its broader security initiative.
On Jan. 24, Ethereum researcher Justin Drake said in an X post that the foundation had “formed a new Post-Quantum (PQ) team.”
“Today marks an inflection in the Ethereum Foundation’s long-term quantum strategy,” Drake said.
The Ethereum Foundation said it will also focus on improving user experience in 2026, with an emphasis on enhancing smart wallets through native account abstraction and enabling smoother interactions between blockchains via interoperability.
“The goal remains seamless, trust-minimized cross-L2 interactions, and we’re getting closer day by day. Continued progress on faster L1 confirmations and shorter L2 settlement times directly supports this.”
The foundation said that 2025 was one of the “most productive years,” citing two major network upgrades, Pectra and Fusaka, and the community raising the gas limit from 30 million to 60 million between the upgrades, for the first time since 2021.
Buterin’s big plans for Ethereum and AI
Ethereum Foundation’s Mario Havel said in an X post on Wednesday: “It took us a while to push out the announcement because we were preparing the biggest curriculum so far.”
It comes just days after Ethereum co-founder Vitalik Buterin shared his latest vision for Ethereum’s intersection with artificial intelligence on Feb. 10. Buterin explained that he sees the two working together to improve markets, financial safety and human agency.
Buterin said his broader vision for the future of AI is to empower humans rather than replace them, though he said the short term involves much more “ordinary” ideas.
Cointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph’s Editorial Policy and aims to provide accurate and timely information. Readers are encouraged to verify information independently. Read our Editorial Policy https://cointelegraph.com/editorial-policy
Bitcoin remains under pressure, and the downside might accelerate if the $65,118 level is breached.
Several major altcoins are attempting a recovery, but the bears remain sellers on rallies.
Bitcoin (BTC) bulls are attempting to hold the price above $67,000, but the bears have continued to exert pressure. A positive sign for the bulls is that select analysts believe BTC may be bottoming out.
Analyst Jelle said in a post on X that all but one of BTC’s major bottoms had formed between the 200-week simple moving average ($58,371) and the 200-week exponential moving average ($68,065). BTC trading near the 200-week EMA suggests that the bottom formation process may have begun.
Similarly, Matrixport said in a post on X that BTC may be making a durable bottom. Matrixport said that when the 21-day moving average of its daily sentiment indicator dips below zero and starts to turn up, it suggests that the selling pressure is getting exhausted. Although that doesn’t rule out a decline in the near term, the readings indicate that BTC could be approaching another inflection point.
Crypto market data daily view. Source: TradingView
Another positive projection for BTC came from Wells Fargo analyst Ohsung Kwon. In a note seen by CNBC, Kwon said additional savings from tax refunds, mostly from high-income consumers, could flow into equities and BTC, bringing back the “YOLO” trade.
Could BTC and the major altcoins overcome the overhead resistance levels? Let’s analyze the charts of the top 10 cryptocurrencies to find out.
Bitcoin price prediction
BTC has been making higher lows in the short term, but the bulls have failed to push the price above the breakdown level of $74,508.
Buyers are likely to make another attempt to pierce the overhead resistance at the 20-day EMA ($72,282) and the $74,508 level. If they can pull it off, the BTC/USDT pair may rally to the 50-day SMA ($83,129).
Sellers are likely to have other plans. They will attempt to defend the 20-day EMA and pull the Bitcoin price below the immediate support at $65,118. If they manage to do that, the pair might tumble to solid support at $60,000.
Ether price prediction
The bulls have maintained Ether (ETH) above the immediate support at $1,897, indicating buying on dips.
Buyers will again attempt to clear the overhead hurdle at the 20-day EMA ($2,183). If they succeed, the ETH/USDT pair may start a stronger recovery toward the 50-day SMA ($2,707).
Contrarily, if the Ether price turns down and breaks below $1,897, it suggests that the bears are attempting to take charge. The pair may then drop to the critical support at $1,750. Buyers are expected to protect the $1,750 level with all their might, as a close below it may sink the pair to $1,537.
XRP price prediction
XRP (XRP) has been trading just below the 20-day EMA ($1.52), indicating that the bulls continue to exert pressure.
That improves the prospects of a break above the 20-day EMA and the breakdown level of $1.61. The XRP price may then climb to the 50-day SMA ($1.80), signaling the XRP/USDT pair may remain inside the channel for some more time.
Buyers will have to thrust the price above the downtrend line to indicate a potential short-term trend change. On the contrary, a deeper fall might begin if the price turns down and plunges below the support line.
BNB price prediction
BNB (BNB) has been trading in a narrow range for the past few days, signaling indecision between the bulls and the bears.
If the BNB price turns down and plummets below the $570 support, it indicates the resumption of the downtrend. The BNB/USDT pair may then extend the decline to the psychological level at $500.
Buyers will have to push and maintain the price above the 20-day EMA ($676) to suggest that the selling pressure is reducing. The pair may then rally to $730 and subsequently to $790.
Solana price prediction
Solana (SOL) is facing resistance near the breakdown level of $95, indicating that the bears are active at higher levels.
The bears will attempt to strengthen their position by pulling the Solana price below the $76 support. If they manage to do that, it suggests that the bears have flipped the $95 level into resistance. The pair may then retest the Feb. 6 low of $67.
Buyers will have to overcome the $95 overhead hurdle to signal a comeback. If they can pull it off, the SOL/USDT pair may ascend to the 50-day SMA ($116), where the sellers are expected to mount a strong defense.
Dogecoin price prediction
Dogecoin (DOGE) has been trading just below the 20-day EMA ($0.10), indicating a lack of selling at lower levels.
That increases the likelihood of a rally above the 20-day EMA. The DOGE/USDT pair may then climb to the 50-day SMA ($0.12). Sellers will attempt to halt the recovery at the $0.12 level, but if the bulls overcome the resistance, the Dogecoin price may soar to the $0.16 level.
Instead, if the price turns down from the $0.12 resistance, it suggests a possible range formation in the near term. The pair might swing between $0.08 and $0.12 for a few days.
Bitcoin Cash price prediction
Bitcoin Cash (BCH) has been stuck between the moving averages, indicating uncertainty about the next directional move.
The upsloping 20-day EMA ($547) and the RSI just above the midpoint suggest a possible upside breakout. If that happens, the Bitcoin Cash price might rally to $600 and, after that, to $630.
Contrary to this assumption, if the price turns down and breaks below the 20-day EMA, it signals that the bears have overpowered the bulls. That might start a correction toward the next support at $500.
Buyers will attempt to maintain the Hyperliquid price above the 50-day SMA ($27.74), but if the bears prevail, the HYPE/USDT pair may tumble toward the solid support at $20.82. The flattish 20-day EMA and the RSI just below the midpoint suggest a range-bound action between $20.82 and $35.50 for some time.
The first sign of strength for the bulls is a close above the $32.50 level. That opens the doors for a rally to the $35.50 to $38.42 resistance zone.
Cardano price prediction
Cardano (ADA) has been clinging to the 20-day EMA ($0.29), indicating that the bulls have kept up the pressure.
The possibility of a break above the 20-day EMA remains high. If that happens, the ADA/USDT pair may climb toward the downtrend line, which is expected to act as a stiff resistance. If buyers pierce the downtrend line, the Cardano price may rally to $0.44 and then to $0.50.
Sellers will have to tug the price below the support line to regain control. If they manage to do that, the pair might slump toward $0.15.
Monero price prediction
Monero (XMR) remains below the breakdown level of $360, but a positive sign is that the bulls have not allowed the price to slip below the immediate support at $309.
Buyers will have to thrust the Monero price above the 20-day EMA ($366) to gain the upper hand. The XMR/USDT pair may then climb to the 50-day SMA ($449), where the bears are expected to step in.
On the downside, a break and close below the $309 level indicates that the bears remain in control. The pair may then retest the crucial $276 support. A strong rebound off the $276 level might result in a range-bound action for a few days.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision. While we strive to provide accurate and timely information, Cointelegraph does not guarantee the accuracy, completeness, or reliability of any information in this article. This article may contain forward-looking statements that are subject to risks and uncertainties. Cointelegraph will not be liable for any loss or damage arising from your reliance on this information.
The European Union, often criticized for prioritizing rulemaking over innovation, is pointing to the European Blockchain Sandbox as an example of how regulation can boost innovation.
After three cohorts of confidential dialogues, the initiative has produced a 230-page best practices report and drawn in nearly 125 regulators and authorities.
The European Commission tapped law firm Bird & Bird and its consortium partners to lead the initiative, which matches blockchain use cases with regulators for confidential dialogues aimed at clearing legal challenges.
Marjolein Geus, a partner at Bird & Bird, told Cointelegraph that the process has shown compliance need not be a deterrent.
“For use case owners, it helps them better understand the relevant regulations and how those rules apply to their projects,” she said. “It allows regulators and authorities to deepen their understanding of how those technologies interact with the regulatory frameworks within their areas of competence.”
In the latest cohort, “mature” use cases were increasingly operational and embedded in sectors such as energy, healthcare and artificial intelligence, bringing along more complex compliance discussions.
Projects entering the dialogue discussed how existing regulatory frameworks apply to their use cases. Source: European Commission
How MiCA became a test of regulatory timing for blockchain
The brain drain narrative predates crypto. European founders have often incorporated in jurisdictions perceived as having a lighter touch.
USDT is still the largest stablecoin in the world despite pulling back from the EU. Source: CoinGecko
Similar fears surfaced when the General Data Protection Regulation (GDPR) took effect in 2018. Businesses complained of interpretive confusion and administrative burden. Some foreign firms scaled back EU exposure. However, the GDPR has since become a global reference point, with many multinationals aligning operations to its standards.
The criticism that Europe “regulates first and innovates later” rests on the idea that legal certainty follows market development. MiCA was adopted before the crypto sector reached institutional maturity. In theory, that sequencing risks locking rapidly developing tech into rigid categories too early.
But the sandbox advanced a counterpoint, suggesting that early legislation combined with regulatory dialogue can enhance clarity and accelerate compliance. In the third cohort, 77% of respondents described the sandbox as having a crucial or valuable impact on innovation and regulation, and none reported no impact.
While the EU opted for early codification and dialogue, the world’s largest economy, the US, lacks a comprehensive federal framework for digital assets despite presidential pledges to become a global hub. Its proposed Digital Asset Market Clarity Act has stalled after key industry figures withdrew support over provisions, including restrictions on stablecoin yield.
Smart contracts and the limits of decentralization
While the best practices report spans over 20 chapters across multiple regulatory domains, its sections on smart contracts and decentralization focus on how blockchain systems are structured at the code and governance level.
“Virtually all blockchain DLT use cases use smart contracts. They are subject to regulation, with security requirements often relevant, as well as obligations under the GDPR,” Geus said.
The dialogues examined how those contracts interact with existing EU frameworks, not just MiCA. Depending on their function and the degree of control retained by identifiable actors, smart contracts may trigger obligations ranging from cybersecurity source code reviews to operational resilience testing and conformity declarations.
“The question then becomes how to ensure those smart contracts are secure and GDPR compliant and how to test whether they meet the applicable regulatory frameworks. That is an area where further clarification, harmonization and standardization are needed,” Geus said.
Another focal point of the third cohort report is the qualification of services provided “in a fully decentralized manner without any intermediary” under MiCA.
MiCA references the term “fully decentralized” but doesn’t define it.
Like smart contracts, determining full decentralization in Europe requires further clarification. The report did attempt to lay out a checklist within the limits of how MiCA and the Markets in Financial Instruments Directive are structured.
Many popular DeFi protocols display characteristics that disqualify them from being “fully decentralized.” Source: Bird & Bird, OXYGY/European Commission
Among those are identifiable fee recipients or entities capable of modifying the protocol, which may suggest the existence of an intermediary. Where such influence exists, MiCA is likely to apply, and authorization as a crypto service provider may be required.
The European Blockchain Regulatory Sandbox’s participation neither implies legal endorsement or regulatory approval nor does it grant derogations from applicable law.
By the third cohort, dialogues increasingly engaged horizontal legislation such as the GDPR and the Data Act. Projects were assessed not as isolated crypto experiments, but as embedded digital systems interacting with financial, cybersecurity and data governance frameworks.
Johannes Wirtz, partner at Bird & Bird’s finance regulation group, observed that regulators involved in the dialogues demonstrated deeper familiarity with crypto than expected.
“This was actually something which surprised me in certain regards because you always had this assumption that they are more or less bound to the old world, but they have their innovation departments, which are really good at identifying the issues,” Wirtz said.
If the early criticism of European policy assumed that law would constrain experimentation, Bird & Bird representatives claimed that structured dialogue clarifies how that perimeter applies in practice.
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AAVE shows potential for 11-15% gains to $140-145 range despite current bearish MACD momentum, with key resistance at $133.63 acting as crucial breakout level.
Aave (AAVE) is currently trading at $126.35 with mixed technical indicators painting a complex picture for short-term price action. Despite bearish MACD momentum, the token shows resilience above key support levels, setting up potential upside targets in the coming weeks.
Recent analyst predictions remain cautiously optimistic for AAVE’s trajectory. Felix Pinkston projected bullish potential toward the $190-195 range by February 2026, though this target appears ambitious given current market conditions. Peter Zhang’s more conservative outlook suggested short-term targets of $182-184, while Iris Coleman highlighted mixed signals with support concerns around $155 levels.
However, these predictions were made when AAVE was trading significantly higher. Current on-chain metrics suggest a more measured approach is warranted given the token’s recent consolidation phase.
AAVE Technical Analysis Breakdown
The current technical landscape for AAVE presents a mixed but potentially constructive setup. With AAVE trading at $126.35, the token sits comfortably above its 20-day SMA of $120.39 and 7-day SMA of $123.99, indicating short-term bullish sentiment despite broader market pressures.
The RSI reading of 46.88 places AAVE in neutral territory, suggesting neither overbought nor oversold conditions. This provides room for upward movement without immediate reversal pressure. However, the MACD histogram at 0.0000 with a negative MACD of -6.2204 indicates bearish momentum that could limit near-term gains.
Bollinger Band analysis shows AAVE positioned at 0.67 within the bands, closer to the upper band at $138.31 than the lower band at $102.47. This positioning suggests underlying strength, though traders should monitor for potential resistance near the upper band.
The Average True Range of $10.12 indicates moderate volatility, providing opportunities for both short-term traders and longer-term position builders.
Aave Price Targets: Bull vs Bear Case
Bullish Scenario
In the bullish case, AAVE price prediction points to initial resistance at $129.99 followed by the critical breakout level at $133.63. A successful breach of this strong resistance could propel AAVE toward the upper Bollinger Band at $138.31, with further upside potential to $140-145.
The bullish thesis relies on AAVE maintaining support above $123.49 while building momentum through the neutral RSI zone. Increasing trading volume above the current $19.6 million would provide additional confirmation of bullish intent.
Bearish Scenario
The bearish scenario sees AAVE testing immediate support at $123.49, with a break potentially leading to stronger support at $120.63. A failure to hold these levels could see the Aave forecast deteriorate toward the lower Bollinger Band at $102.47.
The primary risk factor remains the bearish MACD momentum, which could intensify if broader DeFi sentiment weakens. Additionally, AAVE’s position significantly below its 50-day SMA of $146.00 and 200-day SMA of $218.11 indicates longer-term technical damage that needs repair.
Should You Buy AAVE? Entry Strategy
For traders considering AAVE positions, the current price around $126.35 offers a reasonable risk-reward setup. Conservative entries could target the $123.49-$124.27 range, utilizing the recent 24-hour low as a reference point.
Stop-loss levels should be placed below the strong support at $120.63, limiting downside risk to approximately 5%. Profit-taking opportunities emerge at $133.63 (initial resistance) and $138.31 (upper Bollinger Band).
Position sizing should account for AAVE’s $10.12 daily ATR, allowing for normal price fluctuations while maintaining disciplined risk management.
Conclusion
The AAVE price prediction suggests cautious optimism with targets of $140-145 over the next month, representing potential gains of 11-15% from current levels. While technical indicators present mixed signals, the token’s ability to hold above key moving averages provides a foundation for recovery.
However, traders should remain vigilant of the bearish MACD momentum and broader market conditions. The Aave forecast depends heavily on maintaining support above $120.63 while building volume for a sustained breakout above $133.63.
Disclaimer: Cryptocurrency price predictions are speculative and subject to high volatility. This analysis is for educational purposes only and should not be considered financial advice. Always conduct your own research and consider your risk tolerance before investing.
US tax filers may see bigger refunds in 2026 compared with previous years, a development one Wall Street strategist said may boost risk appetite for digital assets and tech stocks preferred among retail investors.
In a note cited by CNBC, Wells Fargo analyst Ohsung Kwon said the coming refund wave may help bring back the so-called “YOLO” trade, with as much as $150 billion potentially flowing into equities and Bitcoin (BTC) by the end of March. Kwon said the extra cash could be most visible among higher-income consumers.
“Speculation picks up with bigger savings…we expect YOLO to return,” wrote Wells Fargo analyst Ohsung Kwon in a Sunday note seen by news outlet CNBC. “Additional savings from tax returns, especially for the high-income consumer will flow back into equities, in our view,” he added.
Kwon said some of that liquidity could move into Bitcoin and into stocks popular with retail traders, including Robinhood and Boeing.
Cointelegraph contacted Wells Fargo for details on the assumptions behind the $150 billion estimate and how much of that total the bank expects could go to digital assets, but had not received a response by publication time.
Bitcoin demand depends on sentiment
While some of the taxpayer funds may flow into Bitcoin and digital assets, it’s important to consider the higher inflation and consumer spending compared to the period during the COVID-19 pandemic, Nicolai Sondergaard, research analyst at crypto intelligence platform Nansen, told Cointelegraph:
“If sentiment starts to come around and retail sees positive upwards momentum in crypto assets, I see that as increasing the likelihood of funds flowing in this direction.”
Conversely, retail investors may opt for other assets with “higher momentum and social stickiness,” if digital asset sentiment doesn’t improve in the near term, he said.
The larger tax returns are due to the passage of US President Donald Trump’s One Big Beautiful Bill, which included numerous favorable provisions for 2025 tax filings.
Trump signed the One Big Beautiful Bill Act into law on July 4, 2025, saying it would cut as much as $1.6 trillion in federal spending.
Smart money bets on crypto market downside as whales quietly accumulate
Meanwhile, the whales, or large investors, continue their quiet spot accumulation of the leading cryptocurrencies, while the most profitable traders by returns, tracked as “smart money,” are betting on more crypto market downside.
Smart money trader positions through the Hyperliquid exchange, top tokens. Source: Nansen
Smart money traders were net short on Bitcoin for a cumulative $107 million, along with most of the leading cryptocurrencies excluding Avalanche (AVAX), according to crypto intelligence platform Nansen.
Still, whales acquired over $41.9 million worth of spot Ether (ETH) tokens across 22 wallets during the past week, marking a 1.7-fold increase in the spot purchases of this cohort.
Cointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph’s Editorial Policy and aims to provide accurate and timely information. Readers are encouraged to verify information independently. Read our Editorial Policy https://cointelegraph.com/editorial-policy
The US state of Nevada has sued Kalshi after the prediction market company lost its court challenge to stop the state’s regulator from taking action over its sports prediction markets.
The US Court of Appeals for the Ninth Circuit on Tuesday denied Kalshi’s bid to stop Nevada’s gaming regulator from taking action on its sports event contracts, removing a block on the regulator launching a civil suit against the company.
After the decision, the Nevada Gaming Control Board promptly filed a civil enforcement action in state court against Kalshi, which it said sought to block the company “from offering unlicensed wagering in violation of Nevada law.”
Kalshi swiftly filed a motion to have the suit heard in a federal court, repeating its long-held argument that it is “subject to exclusive federal jurisdiction” under the Commodity Futures Trading Commission.
The appeals court order and subsequent lawsuit are a blow to Kalshi in its nearly year-long battle against Nevada to keep its sports contracts active in the state. The company and other prediction markets are facing multiple similar lawsuits from other states.
The company sued the state last year in March after receiving a cease-and-desist order to halt all sports-related markets within the state. In April, a federal court backed Kalshi’s bid to temporarily block Nevada from taking action amid court proceedings.
Kalshi did not immediately respond to a request for comment.
Nevada says Kalshi is flouting state law
In its latest lawsuit, the Nevada Gaming Control Board repeated its past claim that Kalshi’s sports event contracts meet the requirements to be licensed under state law, as they allow “users to wager on the outcomes of sporting events.”
Despite making wagers, sports betting and other gaming activities accessible in the State of Nevada, Kalshi is not licensed in Nevada and does not comply with Nevada gaming law, the regulator argued.
In its federal court motion, Kalshi argued that such a claim means the court “must adopt a narrow interpretation” of federal commodity exchange laws, which it asserts it is regulated under by the CFTC.
CFTC chair asserts jurisdiction over prediction markets
Earlier on Tuesday, CFTC chair Mike Selig said his agency filed an amicus brief backing Crypto.com in a similar lawsuit the crypto exchange had brought against Nevada.
Crypto.com had sued Nevada’s regulators in June after similarly receiving a cease-and-desist letter. It also appealed to the Ninth Circuit in November after losing a federal court motion to block the state from taking action.
The CFTC argued in its brief to the Ninth Circuit that “states cannot invade the CFTC’s exclusive jurisdiction over CFTC-regulated designated contract markets by re-characterizing swaps trading on DCMs as illegal gambling.”
Selig said that event contracts “are commodity derivatives and squarely within the CFTC’s regulatory remit,” and the agency would “defend its exclusive jurisdiction over commodity derivatives.”
The CFTC’s push comes after Trump Media and Technology Group said in October that it was looking to bring prediction markets to its flagship social media platform, Truth Social, via a partnership with Crypto.com.
Donald Trump Jr., the US president’s son, has also been an advisor to Kalshi since January 2025. He has also served as an advisor to rival Polymarket after investing in the company in August.
Cointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph’s Editorial Policy and aims to provide accurate and timely information. Readers are encouraged to verify information independently. Read our Editorial Policy https://cointelegraph.com/editorial-policy
Multiple technical, onchain and exchange-traded product data points suggest $1.12 was the generational bottom for XRP. Is it time for a trend reversal?
South Korea is ending a nine-year ban on corporate crypto trading, allowing listed entities and professional investment companies to reenter the market under a regulated framework.
Corporate participation will be tightly controlled, with investments capped at 5% of annual equity capital and limited to the top 20 cryptocurrencies traded on regulated domestic exchanges.
Institutional entry may gradually improve liquidity and market structure, but strict limits mean large capital inflows from corporate treasuries are unlikely in the short term.
Compared with the US, the EU, Japan and Hong Kong, South Korea is taking a more cautious path by allowing access while restricting scale to manage systemic and reputational risks.
After a nine-year break, South Korea is set to reintegrate corporations into its cryptocurrency market. The Financial Services Commission (FSC) has established new protocols allowing listed entities and professional firms to resume trading, effectively terminating the 2017 prohibition.
This move is part of the government’s ambitious “2026 Economic Growth Strategy,” which aims to transform the nation into a premier digital hub by introducing stablecoin laws and paving the way for spot crypto exchange-traded funds (ETFs).
This article explores what led to the ban on corporate trading in South Korea, what the new guidelines facilitate and how this step will transform South Korea’s crypto market. It also examines the risks South Korean regulators are confronting and compares South Korea’s corporate crypto trading policy with those of other countries.
Why corporate crypto trading was banned in South Korea
In 2017, South Korea prohibited institutional involvement in crypto markets due to a surge in retail speculation. Regulators were concerned about the risks of money laundering, market manipulation and threats to financial stability. Authorities restricted corporations and professional investors from participating while allowing retail crypto trading under stringent compliance requirements.
This policy distinctly shaped South Korea’s crypto market. Retail investors eventually dominated trading activity, whereas local institutions remained largely excluded from a rapidly expanding asset class. Gradually, this situation also drove capital flows abroad, with Korean investors and companies pursuing exposure via overseas exchanges and foreign investment products.
On the other hand, developed markets like the US progressively incorporated institutional capital into crypto through regulated futures, custody solutions and, ultimately, spot ETFs. By 2024, institutional participation represented the bulk of trading volumes on many leading global platforms.
Did you know? In 2018, South Korean banks issued special “real-name account” partnerships with exchanges, making them legally responsible for monitoring crypto transactions tied to customer identities.
What South Korea’s new corporate crypto rules allow
According to new guidelines issued by the Financial Services Commission (FSC), approximately 3,500 organizations are set to gain permission for crypto trading. This group encompasses publicly traded companies along with duly registered professional investment firms.
To begin with, corporate allocations to cryptocurrencies will be limited to no more than 5% of a company’s yearly equity capital. The purpose of this ceiling is to prevent businesses from exposing their balance sheets to undue levels of risk, while authorities monitor the broader implications of institutional involvement on overall market stability.
Permissible investments are confined exclusively to the 20 cryptocurrencies with the highest market capitalization. These cryptocurrencies will be available for trading on South Korea’s five principal regulated crypto exchanges. This channels corporate activity toward major, highly liquid cryptocurrencies like Bitcoin (BTC) and Ether (ETH), thereby sidelining the vast majority of smaller-cap or especially volatile digital assets.
The status of stablecoins such as Tether’s USDt (USDT) within South Korea’s regulatory framework is still under evaluation. Officials have indicated that stablecoins could undergo a distinct review process. Additional legislation may be introduced concerning payment systems and financial market infrastructure.
Crypto exchanges will need to implement safeguards for institutional orders, including mechanisms such as staggered trade execution and caps on individual order sizes. These legal requirements are intended to reduce abrupt price fluctuations and prevent large orders from disrupting thin order books.
Did you know? Korea’s National Pension Service, one of the world’s largest public pension funds, has invested in blockchain-related companies but has so far avoided holding cryptocurrencies directly.
How this fits into South Korea’s broader crypto strategy
The guidelines for corporate cryptocurrency trading in South Korea are not an isolated change. Instead, they form part of a broader regulatory overhaul that includes the upcoming Digital Asset Basic Act, which the National Assembly is scheduled to present in the early months of 2026.
This proposed law aims to consolidate the currently fragmented crypto regulations. It will address key areas such as exchange oversight, token issuance, custody, market conduct and investor protection. Policymakers are examining possible frameworks for stablecoins pegged to the Korean won and regulated spot cryptocurrency ETFs. These steps will further integrate digital assets into traditional financial markets.
These initiatives suggest a shift from crisis-driven restrictions toward structured market participation under formal regulatory supervision.
How corporate access will be transforming South Korea’s crypto market
South Korea’s decision to allow limited corporate participation in cryptocurrency markets is a positive step toward greater institutional integration. This change, along with the upcoming broader regulations, is likely to reshape the country’s crypto landscape over time.
Institutional liquidity and market structure
Enabling corporate participation will transform the dynamics of Korea’s cryptocurrency market. Institutional traders generally operate with longer investment periods, diversified strategies and professional risk management systems. Their arrival may enhance liquidity, narrow bid-ask spreads and reduce the dominance of short-term retail trading activity.
However, the 5% investment limit restricts the volume of funds that can enter crypto from company treasuries in the short term. As a result, the market impact may be gradual rather than immediate.
Treasury strategies and business innovation
In other jurisdictions, various companies have implemented strategies for holding digital assets in their treasuries. They use Bitcoin or similar assets as long-term balance sheet holdings. For instance, Japan’s Metaplanet has drawn worldwide interest by steadily increasing its Bitcoin holdings to build corporate value.
Industry participants in South Korea argue that a stringent investment limit may prevent diverse business models from emerging. Critics say companies should have the freedom to determine their own risk exposure within standard corporate governance and disclosure rules instead of dealing with crypto-specific investment restrictions.
Domestic financial products
Institutional participation in the crypto market will help create new types of financial instruments. These might include cryptocurrency ETFs, structured notes and custody services. For banks and asset managers, corporate trading demand could justify further investment in digital asset infrastructure.
This development could improve South Korea’s ability to compete with other financial centers in Asia, such as Hong Kong and Singapore. These hubs are actively courting digital asset firms and institutional investors.
Did you know? Some Korean conglomerates already use blockchain for supply chain tracking and digital certificates, meaning corporate exposure to distributed ledger technology predates financial crypto investments.
Comparing South Korea’s corporate crypto policy with other countries
South Korea’s cautious approach to allowing corporate crypto participation differs from the prevailing policies in major markets. In the US and parts of Europe, there are no specific percentage caps on corporate crypto holdings. However, businesses must still follow accounting rules, disclosure requirements and fiduciary responsibilities.
Japan and Hong Kong also allow institutional involvement without imposing fixed caps on balance sheet exposure. Instead, they rely on licensing frameworks, custody regulations and rules governing proper market conduct.
South Korea’s framework reflects a more cautious regulatory stance. It opens the door to crypto assets for corporations while restricting the scale of participation until authorities build greater confidence in the market’s stability.
Risks South Korean regulators are confronting
From the FSC’s viewpoint, the new framework balances market growth with the need to maintain financial stability. The risks that continue to concern regulators include:
Volatility risk, which could harm corporate balance sheets and weaken investor confidence
Operational risk, such as failures in custody arrangements or disruptions at crypto exchanges
Reputational risk, which arises if companies experience significant losses from speculative crypto trading.
By placing limits on the types of assets allowed and the size of investments, regulators aim to contain systemic exposure while building regulatory experience with institutional crypto participation.
What happens next?
The FSC is expected to release the final version of the guidelines in January or February 2026. Its implementation will be coordinated alongside the Digital Asset Basic Act later in the year. Corporate crypto trading may begin before the end of the year, provided that the legislative schedule stays on course.
Future adjustments may occur if market conditions remain stable and compliance mechanisms demonstrate reliability. Industry associations are likely to push for higher investment limits and a wider range of eligible assets once this initial stage has been completed.
Balancing financial stability with institutional innovation
Lifting the long-standing ban on corporate crypto trading participation represents a significant change in South Korea’s approach to digital assets. After nearly a decade of retail-only participation, institutions are finally being allowed into the domestic South Korean market, though under tight constraints.
Whether this cautious opening evolves into full institutional integration will hinge on market performance, how companies manage risk and how effectively regulators enforce safeguards. It is evident, however, that South Korea no longer views corporate crypto participation as inherently incompatible with financial stability but rather as an activity that can be managed within a structured regulatory framework.
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Starknet developer StarkWare has integrated EY’s Nightfall privacy protocol to let institutions run private payments and decentralized finance (DeFi) activity on public Ethereum-aligned rails, targeting banks and corporates that need confidentiality without giving up auditability.
In a Tuesday release shared with Cointelegraph, StarkWare positioned the move as a way for enterprises to use a shared, open layer-2 rather than closed, bank-only networks, while working with a Big Four firm that already audits many of the organizations it wants to onboard.
The integration brings Nightfall, an open-source zero-knowledge (ZK) privacy layer built by EY, that lets transactions be verified without revealing underlying data, onto Starknet to enable private B2B and cross-border payments, confidential treasury management and 24/7 tokenized asset transfers onchain.
StarkWare said that institutions will also be able to access Ethereum DeFi for activities such as lending, swaps and yield strategies, with transactions private by default but supporting selective disclosure, auditability and Know Your Customer (KYC) protocols.
StarkWare frames this as a “major breakthrough” in making public blockchains usable for institutional capital that has so far been deterred by full onchain transparency and the resulting compliance and competitive risks.
Eli Ben-Sasson, StarkWare co-founder and CEO and a founding scientist of privacy-focused cryptocurrency Zcash (ZEC), said in the release that blockchains could give every institution “the equivalent of a private superhighway for stablecoins and tokenized deposits,” positioning Nightfall on Starknet as a concrete step toward that vision.
Alex Gruell, StarkWare’s global head of business development, told Cointelegraph that Nightfall was “particularly useful for institutions requiring ready-to-go KYC verification as part of their onboarding to the blockchain,” and part of a broader privacy push on Starknet.
Alex Gruell, global head of business development. Source: StarkWare
He said that while crypto native teams had “moved mountains” building ZK infrastructure, the EY-built system added a complementary layer of institutional credibility and “regulatory fluency.”
Gruell also cast Starknet plus Nightfall as an interoperability layer between institutions, contrasting it with what he claimed are “siloed” institutional environments on rival networks, which he said “do not serve as an interoperability infrastructure,” and permissioned models such as Canton Network, which are “not yet integrated with the Web3 ecosystem.”
He stressed that Nightfall would remain permissionless and fully integrated into Starknet, with a staged rollout, where initial deployment focused on “private payments and transfers with compliance gating and secure sequencing in place,” while “verifier upgrades and expanded functionality follow as the system scales.”
Starknet’s growth and teething trouble
Starknet has steadily grown into one of the larger ZK rollups by total value locked (TVL), currently about $280 million, with usage primarily driven by DeFi protocols and native ecosystem apps.
At the same time, Starknet’s rapid scaling push has exposed reliability challenges. In 2025, the network suffered major outages tied to sequencer and infrastructure issues, prompting public post-mortems and commitments to harden reliability before courting more institutional flow.
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South Africa’s so-called “Bitcoin Brothers,” Raees and Ameer Cajee, have quietly returned to the country years after the collapse of their crypto investment platform Africrypt, according to a new TV investigation.
A segment aired Sunday by investigative program “Carte Blanche” said the pair is residing inside the gated Zimbali Estate in KwaZulu-Natal, MyBroadband reported on Monday. According to the report, journalists attempted to approach the property but were blocked by private security.
The team also reportedly traced the brothers to a holiday location in Umhlanga and a recent address in Johannesburg, but failed to make direct contact.
Gerhard Botha, a lawyer representing an investor who claims to have lost about $50 million, said legal papers have still not been served. “They can protect themselves. They’ve got security. Because they have money,” Botha told the program.
Cointelegraph reached out to law firms representing duped investors for comment, but had not received a response by publication.
The Cajees operated Africrypt between 2019 and 2021, promoting the platform as a high-yield crypto investment service. Investors were promised returns of up to 13% per month through a proprietary trading system said to rely on artificial intelligence. The company accepted deposits in both South African rand and cryptocurrency.
Africrypt unraveled on April 13, 2021, when the founders informed users that the platform had been hacked and its holdings stolen. Weeks later, the brothers left South Africa, eventually traveling through the Maldives before reaching Dubai amid pandemic travel restrictions.
Early media reports suggested as much as $3.6 billion had disappeared, but subsequent investigations placed the figure closer to $40 million to $50 million, according to MyBroadband. The exact amount of investor losses remains unknown.
A fund manager claims his losses would have been worth $50 million today. Source: Carte Blanche
The case drew international attention as the founders moved across multiple jurisdictions, including Tanzania and the United Arab Emirates. Ameer Cajee was later arrested in Switzerland in 2021 while visiting safe-deposit boxes believed to contain hardware wallets holding cryptocurrency. He was released on bail months later.
South Africa warns crypto, stablecoins pose new risks
In November 2025, South Africa’s central bank identified digital assets and stablecoins as an emerging risk to the financial system as crypto adoption accelerated. In its second Financial Stability Report for 2025, the South African Reserve Bank said users across the country’s three largest crypto exchanges reached 7.8 million by July, with about $1.5 billion held in custody at the end of 2024.
The bank warned that the borderless nature of crypto could allow funds to bypass exchange-control rules governing capital flows. It also noted that US dollar-pegged stablecoins have increasingly replaced Bitcoin (BTC) and other major tokens as the primary trading pair on local platforms due to their lower volatility.
Cointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph’s Editorial Policy and aims to provide accurate and timely information. Readers are encouraged to verify information independently. Read our Editorial Policy https://cointelegraph.com/editorial-policy
