The blockchain and cryptocurrency landscape saw significant regulatory, financial, and technological developments from June 28 to July 4. From intensified global scrutiny of major exchanges like Binance to landmark funding rounds and national digital currency pilots, the industry continues to evolve at a rapid pace. This week’s report unpacks key international regulations, domestic initiatives, and investment trends shaping the future of decentralized technologies.
International Regulatory Developments
Germany Enacts New Fund Law Allowing Crypto Investments
Starting July 1, Germany’s updated Fondsstandortgesetz (Fund Location Act) permits domestic special funds (Spezialfonds) to allocate up to 20% of their portfolios to crypto assets like Bitcoin. This legislative shift marks a pivotal moment for institutional adoption in Europe, signaling growing regulatory acceptance of digital assets as legitimate investment vehicles.
👉 Discover how global financial hubs are embracing crypto investments.
South Africa Criminalizes Offshore Crypto Transfers
In a move to tighten capital controls, South Africa’s Interdepartmental Working Group on Fintech (IFWG) has clarified that transferring locally acquired cryptocurrencies to overseas exchanges violates foreign exchange regulations under Section 10(1)(c) of the Exchange Control Regulations. Individuals found in breach may face fines exceeding $17,500 and up to five years in prison. The policy underscores increasing governmental efforts to monitor cross-border digital asset flows.
India Moves to Tax Overseas Crypto Exchanges
India is considering imposing an 18% Goods and Services Tax (GST) on foreign cryptocurrency platforms serving Indian users. Currently, domestic exchanges pay 18% GST on their profits or commissions, classified under "online information database access and retrieval" (OIDAR) services. The tax authority is evaluating whether overseas providers should be subject to the same rules—a move that could significantly impact global platforms operating in one of the world’s largest crypto markets.
Kazakhstan Imposes Power Surcharge on Miners
Effective January 1, 2022, Kazakhstan will levy an additional fee of approximately $0.0023 per kilowatt-hour on electricity used by crypto miners. President Kassym-Jomart Tokayev signed the law following Senate approval in June. As one of the top mining destinations post-China’s crackdown, this measure aims to manage energy consumption while generating state revenue from the booming sector.
Russia and Iran Advance Crypto Oversight
Russia’s central bank has launched a formal study—“Risk Assessment of Cryptocurrency Use”—in collaboration with 15 major banks and payment providers. Meanwhile, Iran’s parliament is drafting legislation to ban all non-state-backed cryptocurrencies for payments while advancing its own national digital currency. The industrial ministry will regulate mining operations and issue licenses under the proposed framework.
U.S. Congress to Hold CBDC Hearing
The U.S. House Committee is set to convene a hearing on central bank digital currencies (CBDCs), reflecting growing legislative interest in America’s potential digital dollar. With global peers advancing their own digital currencies, the hearing could shape future U.S. policy on monetary innovation and financial infrastructure.
Binance Under Global Regulatory Pressure
Thailand Files Criminal Charges Against Binance
Thailand’s Securities and Exchange Commission (SEC) initiated criminal proceedings against Binance for allegedly operating unlicensed digital asset services. Authorities claim the platform facilitates order-matching and transaction execution without proper authorization—activities restricted to licensed entities under Thai law.
Singapore Reviews Binance’s Licensing Application
The Monetary Authority of Singapore (MAS) confirmed it is reviewing Binance’s application for a crypto services license. While Binance remains under temporary allowance to operate during evaluation, MAS emphasized it is closely monitoring actions taken by other regulators worldwide and will act accordingly.
Cayman Islands Denies Binance Regulatory Authorization
The Cayman Islands Monetary Authority (CIMA) stated that Binance, Binance Group, and Binance Holdings Ltd. are neither registered nor licensed to operate a crypto exchange in or from the jurisdiction. CIMA is investigating whether Binance conducts regulated virtual asset activities from the islands under the 2020 Virtual Asset Service Providers Act (VASPA).
Binance responded that it operates legal entities in the Cayman Islands engaged in activities unrelated to crypto trading.
Binance Exits Ontario Market
Due to new regulatory requirements, Binance ceased operations in Ontario, Canada, effective June 26. Users in the province are no longer able to access services, marking another retreat from a key Western market amid tightening compliance demands.
Domestic Blockchain Initiatives in China
Wuhan Aims to Build 100+ Blockchain Firms by 2023
Wuhan has unveiled a strategic plan titled Opinions on Accelerating Blockchain Technology and Industrial Innovation, aiming to establish itself as a national blockchain hub. The city targets nurturing over 100 blockchain-focused enterprises by 2023 through innovation incentives and ecosystem development.
Digital Yuan Expands Nationwide
Several Chinese cities are accelerating digital yuan pilots:
- Chengdu launched a “Green Travel, Low-Carbon Summer” campaign, distributing 100,000 digital RMB transport vouchers worth 12 million yuan.
- Xiong’an新区 began a red packet exchange program via the Xiong’an Travel app, offering 50-yuan digital currency coupons redeemable at designated merchants.
These initiatives highlight the PBOC’s strategy to integrate central bank digital currency (CBDC) into everyday transactions.
Taiwan Implements Stricter AML Rules for Crypto Exchanges
Starting July 1, Taiwan enforced enhanced anti-money laundering (AML) regulations requiring crypto exchanges to report cash transactions over NT$500,000 (~$17,900) and implement robust KYC procedures. The rules align with FATF guidelines, reinforcing compliance standards for local platforms.
Major Blockchain Funding Rounds This Week
The sector attracted nearly $500 million in new capital across multiple high-profile deals:
- Animoca Brands raised $139 million in a round backed by Coinbase Ventures, boosting its NFT and blockchain gaming ecosystem.
- Mintable, an NFT platform, secured $13 million in Series A funding from Ripple, Animoca Brands, and Expedia Group.
- Mercado Bitcoin, Brazil’s first crypto exchange, received $200 million from SoftBank Latin America Fund.
- Blockware Mining closed a $25 million round to expand U.S.-based Bitcoin mining operations.
- Nansen, a blockchain analytics firm, raised $12 million led by a16z to enhance its multi-chain data platform.
- Deutsche Börse acquired a two-thirds stake in Swiss fintech firm Crypto Finance for over $108 million, signaling traditional finance’s deeper crypto integration.
👉 See how top investors are fueling the next wave of blockchain innovation.
Expert Insights: The Future of Crypto Regulation and Adoption
Henri Arslanian, PwC’s crypto lead, predicts the “unregulated era of exchanges is coming to an end,” as governments intensify oversight—especially on platforms lacking formal licensing.
Meanwhile, Qu Qiang from Beijing Foreign Studies University argues that Bitcoin, deeply embedded in underground economies, is now “too resilient to be eradicated.” He believes state-issued digital currencies will increasingly adopt blockchain efficiencies while coexisting with decentralized alternatives.
Frequently Asked Questions (FAQ)
Q: Why are so many countries regulating Binance now?
A: Regulators are responding to concerns over consumer protection, tax evasion, and financial stability. Binance’s decentralized structure and lack of formal licensing in key jurisdictions have raised red flags globally.
Q: Is mining still profitable after Kazakhstan’s new power fee?
A: While the surcharge adds cost, Kazakhstan remains competitive due to low baseline electricity prices. Profitability depends on hardware efficiency and Bitcoin’s market price.
Q: What does Germany’s new fund law mean for investors?
A: It opens institutional access to crypto assets within regulated frameworks, potentially increasing market liquidity and long-term price stability.
Q: How does India’s proposed tax affect foreign exchanges?
A: If implemented, it would require overseas platforms like Binance or Coinbase to comply with Indian tax laws when serving local users—similar to how Netflix or Amazon pay GST.
Q: Can central banks coexist with decentralized cryptocurrencies?
A: Yes. Experts suggest CBDCs will handle mainstream payments while decentralized coins serve niche or alternative financial ecosystems.
Q: Are NFTs more than just digital art?
A: Absolutely. NFTs represent ownership of unique digital items—from virtual real estate to intellectual property—and are expanding into gaming, fashion, and identity verification.
👉 Stay ahead of the curve—explore the latest in blockchain finance and innovation today.