Crypto payments firm Alchemy Pay said HTF Securities Limited, its Hong Kong strategic investment target, has won approval from the Securities and Futures Commission (SFC) to extend its Type 1 (Securities Trading) license to include virtual asset trading services for both professional and retail investors. Alchemy Pay noted that the two parties previously completed an upgrade of HTF Securities' Type 4 license to cover virtual assets, and are now progressing an application to upgrade the Type 9 license. Separately, Alchemy Pay said its stablecoin payments blockchain, Alchemy Chain, launched a testnet this year and has registered more than 150,000 test addresses since going live.

Brazilian President Luiz Inácio Lula da Silva has signed Law No. 15.358, enabling cryptocurrency confiscated from criminal organizations to be used to finance police equipment, intelligence operations, and officer training. Under the new framework, judges may authorize the provisional use of seized cryptoassets before a final conviction. Courts also gain broader powers to freeze wallets, restrict access to exchanges, and impose permanent financial-system bans on convicted individuals. The legislation also increases penalties for using encrypted messaging apps to conceal criminal activity.

SEOUL — March 26, 2025 — South Korea's Financial Supervisory Service (FSS) is preparing to sanction cryptocurrency exchange Bithumb after an on-site inspection found material weaknesses in its internal control framework. FSS Governor Lee Chanjin said the process is advancing following a probe triggered by an erroneous Bitcoin payment incident. The FSS has completed its examination and is moving the case into a final legal review to determine the level and scope of penalties. Lee, speaking at his monthly press briefing, said the inspection confirmed problems in Bithumb's operational controls that warrant regulatory action. Regulators are also assessing whether Bithumb breached the Act on Virtual Asset User Protection, the 2023 law that tightened requirements for crypto exchanges. The statute sets expectations around security, transparency and user safeguards, including adequate reserves and internal controls designed to prevent operational mistakes and protect customer assets. South Korea's crypto rulebook has tightened in stages: early measures in 2017 focused on anti-money laundering and know-your-customer checks; 2021–2022 brought real-name account systems and licensing; and since 2023 the Virtual Asset User Protection Act has imposed detailed operational standards. The FSS, long responsible for oversight of banks, securities firms and insurers, has expanded its reach into digital assets through inspections, penalties and, when warranted, referrals for criminal prosecution. Industry specialists say internal controls are foundational to exchange operations, spanning transaction verification, segregation of customer and house funds, security protocols and automated error detection. Kim Seungju, a professor at Seoul National University's Blockchain Research Center, said internal controls play the same role as in traditional finance: protecting customer assets, ensuring accurate records and preserving operational integrity. Under South Korean expectations, core control areas include multi-layer transaction confirmations to prevent erroneous transfers, separate customer and operational accounts to safeguard user assets, encryption and access controls to deter unauthorized entry, and monitoring systems that detect issues quickly. Lee indicated the Bithumb case is being handled alongside broader institutional work aimed at strengthening the digital-asset market as a whole. Analysts note that enforcement actions involving major exchanges often foreshadow sector-wide changes; prior cases in 2021 and 2023 were followed by tougher reporting and operational requirements. Given South Korea's highly active crypto market—where daily trading volume has at times surpassed activity in traditional equities—regulatory scrutiny is intense. Authorities have sought to balance consumer protection, anti-crime measures, market stability and innovation. The FSS has several options under current law. Potential outcomes include monetary fines, limits on certain services, mandated remediation of internal controls, heightened supervision and reporting, or, in the most severe scenarios, recommendations to revoke licenses. The specific Bitcoin payment error that prompted the inspection has not been detailed publicly; such incidents commonly involve incorrect amounts, wrong recipient addresses or system failures during transfers, where irreversibility can turn operational mistakes into permanent losses. If sanctions are imposed, the case is expected to set an important benchmark for how the Virtual Asset User Protection Act is enforced against internal control failures, with implications for other exchanges operating in South Korea. Disclaimer: This content is for information only and does not constitute trading or investment advice. Conduct independent research and/or consult a qualified professional before making investment decisions.

Coinbase and Fannie Mae are set to enable crypto-backed mortgages.

The White House is pushing back on renewed speculation that Coinbase is trying to torpedo the CLARITY Act by opposing the latest stablecoin yield compromise. Patrick Witt, executive director of the President's Council of Advisors for Digital Assets, said in a post on X that the claims were "uninformed FUD." Witt suggested last week's stablecoin yield deal struck between the Senate and the White House could restore momentum for the bill. The rumors gained traction after a Punchbowl News (PBN) report. PBN reporter Brendan Pedersen wrote that exchange representatives told the Senate on Monday that Coinbase could not support the current stablecoin yield agreement. Pedersen added the pushback did not appear as forceful as Coinbase CEO Brian Armstrong's public opposition to the bill in January. Supporters of stablecoin yield said they were still hearing concerns tied to Armstrong, while others urged him to let the measure advance and address fixes later. Delphi Ventures founder Tommy Shaughnessy also called on Armstrong to soften his stance against the yield compromise and the broader crypto legislation. Under the recent deal, stablecoin yield would be narrowed to account activity rather than the passive interest currently earned on balances through intermediaries. The change was viewed as a win for banks. As of publication, the industry had not issued a public statement on whether it supports the compromise, and Armstrong had not publicly addressed the reported opposition. Sen. Cynthia Lummis said the bill cannot be delayed, arguing the current pro-crypto political environment offers the best opportunity to establish clear rules for the sector. Markets also reacted to the draft's tighter yield language. Circle's stock (CRCL) slid about 20% on Tuesday, falling from $127 to $98, before recovering to above $100 on Wednesday. Final Summary: Trump's crypto advisor rejected claims that Coinbase is fighting the stablecoin yield deal, calling them "uninformed FUD." The proposed yield restrictions helped spark a 20% drop in Circle shares this week.

Fannie Mae is preparing to formally accept crypto-backed mortgages, according to The Wall Street Journal. The step follows a June 2025 directive from the Federal Housing Finance Agency (FHFA) instructing both Fannie Mae and Freddie Mac to incorporate verified crypto holdings into mortgage risk assessments. Under the planned approach, cryptocurrency held on U.S.-regulated exchanges could be counted toward borrower reserves without being liquidated into U.S. dollars.

Fannie Mae is preparing to accept crypto-backed mortgages, marking what The Wall Street Journal described as a first for U.S. housing finance.

Hong Kong police have provided a fresh update on their investigation into the JPEX virtual-asset platform fraud case, saying 80 people have been arrested since the probe began and about HK$228 million in assets has been frozen. Authorities have launched another round of prosecutions, charging 10 individuals with "money laundering" and "conspiracy to launder money." Chief Superintendent Han Chenghao of the Commercial Crime Bureau said the JPEX case is the largest in recent Hong Kong history by both victim count and suspected fraud amount. More than 2,700 victims have reported losses exceeding HK$1.6 billion. Police added that no company or individual has come forward to claim it is the legitimate operator. Investigators are continuing to pursue the alleged masterminds, core members and possible accomplices behind the case.

FHFA Director Bill Pulte has directed Fannie Mae and Freddie Mac to draft proposals that would allow borrowers' cryptocurrency holdings to be counted as mortgage reserves without first converting them into U.S. dollars. The instruction would represent a significant shift from current underwriting practices, which typically require applicants to liquidate crypto assets before they can be recognized in loan decisions. Because Fannie Mae and Freddie Mac back more than half of U.S. mortgages, any change could ripple across underwriting standards for a large share of the housing market. According to the Wall Street Journal, eligibility would be limited to crypto held on U.S.-regulated exchanges such as Coinbase. Lenders would also be expected to apply discounted or otherwise adjusted valuations to reflect price volatility, a central concern for regulators and lawmakers. Supporters say the move could expand access to homeownership for borrowers who are asset-rich but cash-poor, letting them rely on holdings such as Bitcoin and Ethereum without triggering taxable sales. Private lenders have already begun offering similar options. Newrez and Rate have introduced nonagency mortgage products that accept crypto for qualification, including Bitcoin and Ethereum, as well as SEC-approved spot ETFs and stablecoins. The policy is likely to face political scrutiny. Democratic lawmakers have warned that volatile digital assets could introduce new risks to the broader housing finance system. Senator Cynthia Lummis has introduced the 21st Century Mortgage Act to codify the FHFA directive into law. The push also aligns with wider political goals, including President Donald Trump' stated aim of positioning the U.S. as a global crypto hub. With the crypto market valued at roughly $2.4 trillion and adoption rising among younger investors, incorporating digital assets into mortgage underwriting may increasingly look like a matter of timing rather than possibility.