Crypto Regulation and Compliance Updates

XRP Ledger validator Vet warns the XRP community after a social engineering scam drained $280 million from Solana's Drift Protocol, highlighting the need for caution and vigilance among builders in light of increasing crypto vulnerabilities.

The Korea Financial Services Commission requires all cryptocurrency exchanges to set up a system to verify assets every 5 minutes, and to complete it by the end of May. It found that some exchanges’ verification frequency is insufficient and that there are defects in their trading circuit breaker mechanisms; all exchanges are required to publish their asset balances and submit to audits. The regulatory measures stem from an operational mistake at an exchange in February.

Apple removed Bitchat, a decentralized messaging app by Jack Dorsey, from its China App Store at China's request, citing regulatory violations. Despite this, the app remains available globally and has seen over three million downloads.

Russia's State Duma has introduced three bills to regulate cryptocurrency transactions, allowing limited access for non-qualified investors. The legislation mandates tax reporting and penalties for illegal use, aiming to create a structured digital asset market while predicting closures of non-compliant exchanges.

Figure co-founder Mike Cagney recently received a 1099-MISC tax form from a certain CEX Custody showing last year’s income of $1,600, but the account’s assets are only $10. He is dissatisfied with the customer service’s runaround and criticized the exchange for blocking the passage of the CLARITY Act, arguing that the industry no longer needs to care about his views.

Bitchat, a decentralized peer-to-peer messaging app developed by Block CEO Jack Dorsey, has been removed from Apple’s App Store in China for allegedly violating its internet service regulations.  In an X post on Sunday, Dorsey shared a screenshot from Apple’s app review team informing him that Bitc

Attorney Ariel Givner said that the 280M-dollar attack incident involving the Drift Protocol, which resulted from failing to follow basic security procedures, could amount to civil negligence. The attacker, after 6 months of planning, used a trusting relationship to steal the developers’ devices; there is already a class-action lawsuit advertisement targeting Drift circulating.

Last year, Japan moved to widen the reach of its crypto travel rule regime, signaling that the country’s regulatory focus is shifting further toward compliance, transaction traceability, and cross-border surveillance. Key Takeaways: On April 25, 2025, Japan FSA added 30 jurisdictions to its crypt

Polymarket removed a betting market on U.S. military rescues in Iran after backlash from lawmakers, who criticized it for trivializing such efforts. This reflects growing scrutiny and regulation of prediction markets amid concerns over ethics and integrity.

Crypto platforms — and investors — have long suffered from hacker attacks and exploits. Now, artificial intelligence (AI) is making that threat even worse. That’s the view of Charles Guillemet, chief technology officer at crypto wallet provider Ledger, who said the economics of cybersecurity are

On April 1, the Drift Protocol on the Solana chain was attacked by hackers, resulting in losses of about $285 million and a sharp drop in TVL. The investigation found that the attackers carried out a social engineering infiltration lasting 6 months, using Durable Nonce to bypass multiple signatures, highlighting the threat that nation-state hackers pose to DeFi and raising questions about Circle’s response speed.

A six-month intelligence operation preceded the $270 million exploit of Drift Protocol and was carried out by a North Korean state-affiliated group, according to a detailed incident update published by the team earlier on Sunday. The attackers first made contact around fall 2025 at a major crypto c

A prediction platform was taken down for violating rules after it posted a prediction market about missing American pilots, sparking controversy. The market showed that most users believed the pilots would not be rescued in the short term. Congressman Moulton criticized the transaction as disgusting, questioned the transparency of the rules, and expressed concern about insider trading, calling for stronger regulation.

A state judge in Nevada extended a temporary ban on prediction market provider Kalshi's sports-related contracts in the Silver State on Friday. Judge Jason Woodbury in the First Judicial District Court told attorneys at a hearing in the Carson City courthouse that he would also grant the Nevada

A court in Qinzhou District, Tianshui City, Gansu Province, is trying a virtual-currency money-laundering case. The defendant used a part-time “high-paying errands” job to withdraw more than 390k yuan and, with knowledge of what was going on, exchange it for virtual currency, earning a profit of 21.5k yuan. The court sentenced him to two years and four months in prison and fined him. The judge reminded the public to stay alert to related activities in order to prevent them from fueling crime.