Banxa's UK arm makes regulatory strides with FCA approval

Japan and China are moving in different directions on digital finance. In Japan, senior officials are signaling a push to bring cryptocurrencies further into the mainstream financial system. In China, regulators are doubling down on limits for private-sector tokenization even as the central bank expands a state-led digital currency model.Photo by Nat on UnsplashTraditional exchanges to anchor crypto pushSpeaking at the Tokyo Stock Exchange on Jan. 5, Japanese Finance Minister Satsuki Katayama framed 2026 as “the inaugural year of digital” in her New Year’s address, according to local outlet CoinPost. She said she expects cryptocurrency adoption to broaden as commodity and stock exchanges take on a larger role, arguing that established market infrastructure will be key to realizing the benefits of blockchain-based assets. Pointing to the U.S., she noted that exchange-traded funds are commonly used as an inflation hedge, and suggested Japan could move in a similar direction. Katayama also struck an upbeat tone on the wider economy, saying she expects Japanese stocks to hit new record highs this year. She cast 2026 as a potential turning point as Japan seeks to move beyond a long stretch of deflation, and called for responsible but proactive fiscal policy alongside targeted investment in growth sectors. Her comments come as Tokyo considers a major overhaul of how crypto gains are taxed. Under a government proposal, profits from cryptocurrencies would be taxed at a flat 20%, aligning them more closely with levies on stocks and foreign-exchange trading. The framework would also cover crypto-linked ETFs and derivatives. Currently, crypto gains are treated as miscellaneous income, leaving investors subject to progressive rates that can climb to roughly 55% once local taxes are included. The proposed reforms would bring crypto assets under the Financial Instruments and Exchange Act. While the package is slated for discussion during the upcoming ordinary Diet session, which is scheduled to begin on Jan. 23, officials do not expect it to take effect before 2028, given the scope of the required legal and regulatory changes. Industry groups flag RWA tokenization risksChina, by contrast, continues to take a restrictive stance toward private digital-asset activity. Seven major financial industry associations—including the National Internet Finance Association of China, the Banking Association, and the Securities Association—issued a joint statement warning that the tokenization of real-world assets (RWAs) is illegal and amounts to a “risky business model,” according to Wu Blockchain, citing a WeChat post published last month. The associations argued that RWA tokenization still functions as a form of unauthorized fundraising barred under existing securities laws. They also warned of risks tied to both the projects and their underlying assets, including fraud, operational failures, and speculative hype, adding that even when the assets themselves are legitimate, token structures remain unreliable and could pose spillover risks to other parts of the financial system. The statement added that such activities have not received regulatory approval. The warning fits with Beijing’s broader, state-led approach to digital finance. Last month, Lu Lei, a deputy governor of the People’s Bank of China (PBOC), warned that unchecked private-sector innovation could pose challenges for monetary policy, arguing that the rapid growth of digital assets and stablecoins risks weakening central banks’ control over money flows. Against that backdrop, Lu said the PBOC has rolled out a new operational framework for its central bank digital currency that took effect on Jan. 1. The move places the digital yuan in a deposit-like role within the commercial banking system under a two-tier structure, with the central bank overseeing rules and infrastructure and commercial banks handling wallets, payments, and compliance. By late November 2025, the digital yuan network had processed 3.48 billion transactions totaling 16.7 trillion yuan ($2.3 trillion), underscoring how China is channeling digital finance through a centrally controlled system. The system includes about 230 million personal wallets and 18.84 million corporate wallets. 

Turkish Lira emerges as dominant fiat trading pair on BinanceThe Turkish Lira (TRY) claimed the top spot as the most influential fiat trading pair on Binance throughout the month of September, as per the latest research from the leading cryptocurrency exchange.Photo by PublicDomainPictures on Pixabay75% of all fiat volumeAccording to a report by Cointelegraph on Friday, despite being the fourth-largest crypto market globally in terms of transaction volume, following the United States, India and the United Kingdom, the Turkish Lira commanded a staggering 75% of all fiat volume in early September. This surge in the TRY trading pair is attributed to a recent influx of crypto investors into the Turkish market.In its analysis last month, crypto market data provider Kaiko put Turkish Lira dominance at 81% on Binance. Kaiko also pointed to growth in the volume of the Brazilian Real on Binance, while dominance of the British Pound and the Euro were fading.It’s important to note that the disproportionate level of lira-based fiat volume on the Binance exchange may also have come about due to difficulties Binance has had in recent months in keeping various fiat on and off-ramps open. In June Binance US suspended USD deposits while pausing fiat withdrawals.It has also faced disruption when it comes to Euro payments, withdrawals and deposits. In May Binance Australia users experienced difficulties relative to AUD deposits and withdrawals following a decision to terminate the availability of PayID services to Australian account holders.27% new crypto sector participantsBinance’s research revealed that 27% of participants in Turkey initiated their crypto investment journey within the past year, with 8% joining in the last six months alone. Most respondents indicated holding up to $175 (5,000 TRY) in cryptocurrencies, expressing a strong inclination towards investing in real estate.The profitability factor emerged as a significant motivator for Turkey’s interest in crypto, with ease of monitoring, no minimum threshold, and low transaction costs standing out as key drivers for new investors. However, the inherent risks associated with crypto investments contribute to the hesitancy observed among many Turkish investors.The evolving landscape of crypto adoption in Turkey is evident in the statistics, showing a substantial increase from 16% to 40% over the last three years. Chainalysis’ Global Crypto Adoption Index 2023 ranks Turkey at 12th place. Moreover, the country received humanitarian aid in the form of cryptocurrency during the 2023 earthquake, underscoring the growing integration of digital assets in various aspects of Turkish society.Protecting long-term wealthA report by KuCoin earlier this year identified a marked increase in crypto investors in Turkey. It found that one of the main motivations for the pursuit of crypto investments in Turkey was the desire to create long-term wealth. Recent years have seen the Turkish sovereign currency suffer from runaway inflation. Recent data put the year-on-year inflation rate at 59%.It’s likely that the ongoing loss of buying power of the Turkish Lira is a key motivator for Turkish citizens in choosing to onboard into crypto, in an effort to safeguard their savings and wealth.

Sei Labs, the development firm behind the layer one Sei blockchain, has recently secured a total of $50 million in strategic funding rounds. The funding was raised from investors such as Jump, Distributed Global, Multicoin, Asymmetric, Flow Traders, Hypersphere, and Bixin Ventures.This funding will be used to accelerate Sei Labs’ growth and expand its presence in the Asia-Pacific region. The firm is seeking to position Sei as the fastest Layer one blockchain for trading, while driving the development of the digital asset ecosystem worldwide. Asia-Pacific market demandAccording to the firm, there’s a growing demand for innovative blockchain solutions in the Asia-Pacific region and it aims to solidify its presence in that market. Sei Labs’ mission is to build the best infrastructure for trading by offering chain-level optimizations for decentralized exchanges and trading apps that aim at performance and scalability.The project has been growing rapidly during its development phase, with over 120 teams already deploying on Sei ahead of the mainnet launch. This indicates strong developer support. Furthermore, Sei’s latest public testnet, which went live on March 13th, has already attracted over 3.6 million unique users and processed over 35 million transactions in less than a month, showcasing the robustness and scalability of the Sei blockchain.Sei Labs aims to tap into the vast market opportunities in the Asia-Pacific region and provide cutting-edge trading infrastructure to meet the needs of the rapidly evolving digital asset landscape. With the additional funding and strategic partnerships in place, Sei Labs is well-positioned to further enhance its offerings and drive its expansion plans in the Asia-Pacific region. Bitget investmentOne of the strategic partners that Sei Labs has locked in is Seychelles-based Bitget, a leading crypto derivatives exchange platform. Bitget has invested $20 million in the company, and the two companies will collaborate to build a new decentralized exchange (DEX) that will integrate with Bitget’s existing trading platform. This new DEX will be built on Sei’s high-performance Layer 1 blockchain, offering users fast, secure, and low-cost trading.Bitget’s investment in Sei Labs will also help to strengthen the company’s ecosystem, which aims to provide users with a comprehensive suite of services for trading and managing digital assets. Bitget is committed to supporting Sei Labs’ mission to build the best infrastructure for trading, and the collaboration between the two companies is expected to bring new and innovative products to market. Foresight Ventures partnershipAnother strategic partner that Sei Labs has locked in is Foresight Ventures, a venture capital firm that focuses on investing in innovative technology companies. Foresight has invested $10 million in Sei Labs, and the two companies will collaborate to drive the development of the digital asset ecosystem worldwide.The investment from Foresight will help Sei Labs to accelerate the adoption of its blockchain technology and expand its global reach. The collaboration between the two companies will also enable Sei Labs to benefit from Foresight’s expertise in technology investments and its global network of contacts.Sei Labs’ success in securing $50 million in strategic funding rounds highlights the growing interest in blockchain technology and its potential to disrupt traditional industries. Sei Labs is well-positioned to take advantage of this trend and become a dominant player in the blockchain industry. The company’s efforts will pave the way for more innovative solutions that will drive the global digital asset ecosystem forward.