China’s Ministry of State Security has intensified its focus on the risks posed by cryptocurrencies, warning that they are often used by foreign entities to disrupt financial systems and compromise national security. The ministry has issued statements on social media highlighting that cryptocurrencies are not as anonymous as many believe, with transactions being traceable. This message was interpreted as a coded warning to potential foreign spies who might think they can operate without detection. The Chinese government has previously banned cryptocurrencies multiple times, including a comprehensive ban on exchanges in 2017 and mining in 2021, and has declared all crypto-related businesses illegal.
The growth is largely driven by institutional platforms, with a 94% increase in activity concentrated among a few major market makers and trading firms.
Meanwhile, South Korea is considering introducing market-making systems for digital assets following a recent spike in a yen-backed stablecoin’s value on a major exchange. The spike, attributed to limited liquidity, has prompted regulators to review the need for market-making systems to enhance the efficiency and stability of the digital asset landscape. Additionally, Binance Pay is set to expand its services in Japan, allowing users to spend over 100 cryptocurrencies at PayPay-supported merchants through a new payment framework.