Hong Kong leadership said the territory is going to take a closer look at cryptocurrency regulation after eight individuals were arrested and charged with fraud. So reports the Associated Press.

Police said the individuals arrested include social media influencers promoting the JPEX currency exchange. The alleged scheme impacted more than 1,600 people and involved more than $150 million in investor assets.

Read the full story from the Associated Press.

Stoner Cats NFTs, which come from a project associated with Hollywood heavyweights Ashton Kutcher and Mila Kunis, have been deemed unregistered securities by the Securities and Exchange Commission. So reports The Verge.

As such, the company driving the project, Stoner Cats 2, was fined $1 million and ordered to destroy the remaining tokens “without admitting guilt.” Former SEC regulator and ex-head of policy at Coinbase Hermine Wong criticized the action and said it could have a broadly “chilling effect on the industry.”

Read the full article from The Verge.

The Weibo accounts of 80 top cryptocurrency influencers have been suspended from use on the Chinese app as the nation continues to crack down on crypto activities. So reports the South China Morning Post.

The accounts were said to have breached regulations in the country covering areas like “marketing, internet safety, telecommunications, trade and finance.” Recently, China also ordered the removal of several thousand crypto-trading accounts including those on Weibo and Baidu, notes the article.

Read the full article from the South China Morning Post.

The Internal Revenue Service (IRS) and U.S. Department of the Treasury unveiled their hotly anticipated proposed regulations dictating broker-driven digital asset transactions, and opponents of the rulemaking have criticized the proposal, citing a lack of clarity.

Patrick McHenry, chairman of the House Financial Services Committee, was especially critical of the proposed new rules, which would essentially treat digital asset brokers the same way brokers for other financial products, like securities, are treated under tax law.  

“The notice of proposed rulemaking on digital asset reporting requirements is another front in the Biden Administration’s ongoing attack on the digital asset ecosystem,” McHenry said. “Following the passage of the Infrastructure Investment and Jobs Act, numerous lawmakers of both parties made clear that any proposed rule must be narrow, tailored, and clear. I’m glad to see the delayed effective date and exemptions for other activities in the proposed rule mirror my bipartisan bill, the Keep Innovation in America Act. However, it fails on numerous other counts. Any additional rulemakings related to the other sections from the law must adhere to Congressional intent.”

According to the administration’s announcement, existing law calls for taxpayers to pay taxes on gains and also allows those eligible to deduct losses related to the sale of digital assets. This proposal would require digital asset brokers to offer a Form 1099-DA to “help taxpayers determine if they owe taxes, and would help taxpayers avoid having to make complicated calculations or pay digital asset tax preparation services in order to file their tax returns.”

Additionally, it adds, the regulations align these reporting requirements with those of other assets, and as such will “avoid preferential treatment between different types of assets.” 

 From X (formerly Twitter)

Ledgible | Digital Asset Tax, Accounting, & Data @Ledgiblecrypto

"Our #tax, #accounting, and tax information reporting experts took a deep look at the proposed regulations around #digitalasset reporting requirements. Hear more from our team, including the experts at @FORVIS, in our blog post here. #crypto #compliance https://ledgible.io/news/understanding-the-treasurys-proposed-digital-asset-reporting-requirements/"

McHenry, though, said the new rule proposal, as written, will ultimately harm the digital asset industry. “The Biden Administration must end its effort to kill the digital asset ecosystem in the U.S. and work with Congress to finally deliver clear rules of the road for this industry. I look forward to advancing my bipartisan solution… to fix these misguided reporting requirements, protect the privacy of market participants, and ensure the digital asset ecosystem can flourish here in the U.S.”

From X (formerly Twitter)

Rony Pusto @expertronys ·Aug 25

"The U.S. Treasury Department has proposed new tax reporting rules for #crypto, giving the industry its own Form 1099-DA and declaring digital asset #miners immune from future requirements."

The proposals are expected to go into effect in 2026, relating to digital asset exchanges and sales that took place in 2025. The proposed regulations will be open to public feedback until Monday, Oct. 30. Two public hearings have also been scheduled, one on Tuesday, Nov. 7 and another on Wednesday, Nov. 8, should the public comment period run over its allotted time.

More than 50% of consumers under 50 said they would like Generative AI to assist them in managing their personal finances. So reports FinTech Magazine.

The research also found the number of those interested in exploring Generative AI as a financial aid was generally higher in the U.S. than in the U.K. at 40% to 29%, respectively. Additionally, two-thirds of those asked also reported cutting back on overall spending as economic uncertainty continues to plague broader markets, notes the new Marqeta study.

Read the full article from FinTech Magazine.

Online software vendor Kashoo is forming focus group to react to the new features in its software. The Vancouver, B.C.-based company wants feedback on the new features and focus group members may also participate in testing before a broader release this fall.

CEO Jim Secord outlined changes to the accounting software package on the company’s website. Kashoo automated bank reconciliations so the system learns how users categorize accounts, leaving them to handle exceptions. Dashboards, new reporting tools, and business insights have been added and the company has harmonized the software’s look-and-feel for mobile and desktop apps. Kashoo said no more than 10 small business owners will be invited to participate in a 30-minute online session with Secord and his team.

Net@Work has acquired Inventory Management Solutions, the New York-based reseller said this week. IMS provides fixed asset inventory services and training for the Sage Fixed Assets Software Solutions.

IMS Founder Suzanne Pedone, who is joining Net@Work as a subject matter expert for fixed asset management, will be accompanied by three IMS employees, who will continue to work out of Tampa, Fla. IMS was previously a Net@Work Alliance partner, with the two companies sharing resources and collaborating on projects. Pedone’s team will continue to provide barcode labels, software upgrades, services for inventory of assets and specialized Fixed Asset Process training.

The Celo blockchain is readying a move to Ethereum’s layer 2, but it is unclear what company will provide the project with the requisite tech. So reports Coindesk.

Recently, Polygon Labs submitted a proposal to that end, though, and may be the frontrunner to land the gig. Initially, it appeared Celo was primed to select Optimism’s OP Stack to execute the migration, but Optimism, Polygon and a number of other firms are still in contention for the job.

Read the full article from Coindesk.

A World Federation of Exchanges report aimed at analyzing cryptocurrency exchange engagement found retail demand for cryptocurrency-related services and products is actually greater than institutional demand in nearly every use case.

The exception, notes the report, is with respect to custody services where demand for such is more pronounced with institutions than retail customers. Additionally, the report indicates approximately 40% of all cryptocurrency trading platforms function as decentralized entities, and 60% of all crypto platforms rely on Central Limit Order Books (CLOBs) to execute trades much like those deployed in other more traditional regulated exchanges.

Per Nasdaq, CLOBs act as a hub for sellers and buyers and submit trade orders and, as such, serve as a mechanism to facilitate trades between them. Matches are made based on a predetermined set of rules and then executed according to those rules, notes the exchange.  

Additionally, notes the World Federation of Exchanges report, many of the decentralized exchanges surveyed operate using “DLT-based Automated Market Making” to set prices and generally provide anonymity to their users through access to self-custodial wallets. “There is a growing demand for crypto products and services. Crypto-related innovations are seen as an opportunity to advance technology development and increase investor choice, however, the lack of minimum governance and investor protection standards of unregulated crypto platforms, as well as the high volatility observed in these markets, and the risk of cybersecurity threats, is a concerning mix,” said Pedro Gurrola-Perez, head of research at the World Federation of Exchanges.

The report includes a glimpse at the some 500 trading platforms operating around the world. Many of these platforms also offer other related services and products, it adds.

From X (formerly Twitter)

BizToc @biztoc ·Sep 2 Replying to @markets

"Interesting to observe Tether’s market cap wild ride. This implies a shift in investors’ preferences, possibly to more regulated or trustworthy stablecoins. Greater diversity in the stablecoin market hints at improved resilience in the crypto market's infrastructure."

The survey report also noted a dozen of the regulated exchanges included said they offer crypto products like stablecoins and tokens in response to “the increasing demand from investors, especially from the retail segment.”

Those included in the survey also indicated they believe the crypto market represents an opportunity for the development of technology as well as an avenue to bolster investor choice. However, there were several notable concerns raised by principal stakeholders regarding the absence of uniformity with respect to regulatory standards, cybersecurity threats and market volatility.  

“Crypto is at the forefront of all of our members’ minds and we are in constant dialogue with them about how to capitalize on the new opportunities in the area. As this industry and market matures, coming in to the mainstream of financial markets, the exchange-traded model which places investor trust, transparency, accountability and investor protection at the heart of platform, will gain further momentum,” said Nandini Sukumar, CEO of the World Federation of Exchanges.

A full copy of the report can be downloaded here.

Coinbase shares spiked in the wake of exchange operator Cboe announcing it is in talks with the crypto company to launch a “spot bitcoin exchange-traded fund.” So reports Reuters. 

The Cboe application was made with the U.S. Securities and Exchange Commission and names Fidelity as the asset manager. It identifies Coinbase as a platform to “police manipulation in the ETF.” The application is designed to address concerns from the SEC that its initial filing did not include a trading platform to help combat fraud in the crypto market.

Read the full article from Reuters.

U.S. Securities and Exchange Commission Chairman Gary Gensler continued his public campaign to scrutinize the crypto industry with a new “investor-protection video.” So reports Coindesk.

The theme of the video was cautionary as the regulator warned the public about digital-asset companies violating securities law. Gensler said he plans on holding the industry to the regulations laid out in existing securities law even as Congress and the courts continue to examine exactly where exactly the industry lies from a legal standpoint.

Read the full article from Coindesk.

Chainlink and the Society for Worldwide Interbank Financial Telecommunications announced they successfully facilitated digital token transfers across private and public blockchain networks. So reports Kitco News. 

Doing so on a broader scale could reduce costs and boost efficiency for those trading digital assets, they said in their announcement of the successful experiment. Additionally, this could also lead to the “secondary trading of non-listed assets and private markets” in the near term.

Read the full article at Kitco News.

Fuse CEO Mark Smargon said his firm is focusing on everyday uses for blockchain, such as payments, to help drive its adoption. So reports Cointelegraph.

He went on to explain it has been an uphill battle to convince the business space that blockchain services would become the norm, but said he believes Fuse can one day be the main payments layer in support of global transactions. He added his company, though, is competing more closely with Stripe and Visa than with Ethereum.

Read the full article from Cointelegraph.

A pair of researchers announced the development of a new blockchain-based “verification-as-a-service model” to help keep track of cultural artifacts. So reports Cointelegraph. 

Archaeologist Mark Altaweel, of the University College London, and computer scientist Adel Khelifi, of the University of Abu Dhabi, said their new Web3-based verification system will record the “authenticity and provenance” of the artifacts using an unclonable, secure blockchain validation system. The system hinges on turning verified and validated artifacts into NFTs to help prevent theft and fraud, they added.

Read the full article from Cointelegraph. 

The New York Federal Reserve announced it concluded a successful three-month long blockchain experiment. So reports Blockworks.

To that end, it created a “theoretical payment infrastructure designed to support the exchange and settlement of regulated digital assets using distributed ledger technology.” Wells Fargo, Citi, BNY Mellon, Mastercard and HSBC are among the banks the state partnered with for the trial run.

Read the full article from Blockworks.