The current capital reserve requirements and rules make holding cryptocurrencies too costly for banks, limiting the sector's growth. Capital requirements for banks from by the Basel Committee on Banking Supervision (BCBS), which crafts banking standards, create a “chokepoint,” designed to throttle the growth of the crypto industry, according to Chris Perkins, president of investment firm CoinFund. The current capital rules lower a bank’s return on equity (ROE), a critical profitability metric in banking, by forcing higher reserve requirements for holding crypto, making crypto-related activities too expensive for banks, Perkins told Cointelegraph. “It's a different type of chokepoint, in that it's not direct. It's a very nuanced way of suppressing activity by making it so expensive for the bank to do activities that they’re just like, ‘I can't,’” he added. If I have a certain amount of capital I want to invest, I'm going to invest it in high ROE businesses, not low ROE businesses,” he continued. Read more
The crypto industry is set to experience massive growth in the United Arab Emirates (UAE) due to its pro-tech and business regulations. The crypto sector in the United Arab Emirates (UAE) is on track to become its second-largest industry in the next five years, due to the country’s regulatory policies and attractive business environment, according to Chase Ergen, a board member of publicly traded digital asset investment firm DeFi Technologies. “They have a reputation for leadership, legislation, and community,” Ergen told Cointelegraph in an interview. He also predicted: The country has a clear crypto regulatory framework, a community of key crypto industry executives, a debt-free economy that allows the government to funnel surplus into tech investments, low crime, attractive tax policies, and forward-thinking leadership, Ergen added. Read more
Without localized risk detection and public–private cooperation, illicit capital will continue to flow unchecked, and trust in the system will collapse. Opinion by: Slava Demchuk, co-founder and CEO of AMLBot Asia’s cryptoverse has lost more than 1.5 billion in the first half of 2025 — more than during 2024, including Bybit and pig butchering scams in Southeast Asia. Most engines are built around typologies of Western money laundering. They miss custom laundering channels tailored to each region, which are popping up across Asia. Blockchain analytics firms must build customized regional risk libraries and collaborate with local law enforcement to combat the level and caliber of cryptocurrency-enabled crime in Asia. Failure to address this means criminal funds will still be able to lurk in plain sight and subvert the very integrity of global compliance systems. Read more
S&P Dow Jones Indices is exploring partnerships with major exchanges, custodians and DeFi protocols to launch tokenized versions of its benchmarks. S&P Dow Jones Indices (S&P DJI) is in discussions with major exchanges, custodians and DeFi protocols to license and list tokenized versions of its benchmarks, according to Stephanie Rowton, the firm’s director of US equities. Rowton told Cointelegraph that the index provider is taking a “strategic approach” to ensure tokenized S&P products are launched only on platforms that meet high standards for transparency, security and regulatory compliance. “By establishing these types of relationships, we hope we can work together to participate in a robust infrastructure that supports the trading and accessibility of tokenized versions of our indexes, ultimately enhancing the investor experience,” she said. Read more