Investor Protection
Japan's Financial Services Agency is considering an amendment to reclassify cryptocurrencies from a payment method to a "financial product," aiming to boost investor protections as crypto accounts have quadrupled in five years. The proposal signals a major shift in how digital assets will be regulated and supervised.
Japan's Financial Services Agency plans to force cryptocurrency exchanges to hold dedicated reserves for hack losses as it seeks to restore trust after a decade of security failures, from Mt. Gox to the DMM Bitcoin breach. The move tightens capital rules and shifts more liability onto platforms.
Digital Currency Group and Genesis face lawsuit accusing them of misleading investors and causing over $3 billion in losses. Attorney General Letitia James vows stronger crypto regulations to protect investors.
On July 18, 2025, the U.S. passed the bipartisan CLARITY Act (H.R. 3633), providing clearer roles for the SEC and CFTC in regulating digital assets, strengthening investor protections, and promoting American leadership in crypto innovation. Supported by major industry players and organizations, the Act aims to create a transparent and secure environment for digital asset trading.
The UK government has unveiled new regulations targeting cryptoassets such as Bitcoin and Ethereum to enhance investor protection and curb misuse. These rules will bring crypto exchanges and dealers under formal regulatory oversight, marking a significant step forward in the crypto landscape.
The SEC has brought fraud charges against Unicoin and its executives for misleading investors in a scheme that raised over $100 million. This action highlights the ongoing regulatory scrutiny in the cryptocurrency space.