South Korea delays digital asset law as stablecoin oversight divides regulators

  • South Korea delays its Digital Asset Basic Law to 2026 amid disputes over stablecoin oversight authority.
  • Lawmakers pause crypto legislation as regulators clash on who should control stablecoin reserves and enforcement.
  • Regulatory uncertainty grows as Korea weighs investor protection against monetary control and innovation.

South Korea’s push to formalise crypto regulation has slowed again, with authorities confirming that the Digital Asset Basic Law will not be submitted until 2026.

The delay highlights deep divisions over how stablecoins should be supervised in one of Asia’s most active digital asset markets, even as crypto products become more tightly linked to the wider financial system.

The setback does not reflect a lack of interest in regulation.

Instead, it underlines how complex stablecoin oversight has become for policymakers, balancing innovation, financial stability, and monetary control.

With no agreement yet on who should hold ultimate authority, lawmakers have opted to pause rather than advance a bill with unresolved structural gaps.

Purpose of the proposed law

The Digital Asset Basic Law is intended to act as the backbone of South Korea’s crypto framework.

A core aim is investor protection, achieved by holding digital asset operators to stricter legal standards than before.

One of the most significant proposals is the introduction of no-fault liability, which would make operators responsible for user losses even if negligence cannot be proven.

Another pillar of the bill focuses on reducing systemic risk from stablecoins. The draft requires issuers to maintain reserves exceeding 100% of the circulating supply.

These reserves must be held at banks or approved institutions, with clear separation from the issuer’s own balance sheet.

The structure is designed to limit contagion risks if a stablecoin issuer fails.

Stablecoins and regulatory control

Stablecoins have emerged as the main fault line in the debate. While regulators broadly agree that stronger oversight is necessary, they remain split on who should enforce reserve rules and supervision.

The Financial Services Commission and the Bank of Korea have yet to align on how responsibilities should be divided.

These disagreements have complicated decisions around licensing, enforcement powers, and the treatment of reserve assets.

Rather than pushing through a compromised framework, authorities have delayed the bill to allow further coordination between financial regulators and monetary authorities.

Market uncertainty grows

The postponement has not triggered an immediate market reaction, but it adds another layer of uncertainty for crypto firms operating in South Korea.

Exchanges, payment providers, and stablecoin issuers continue to expand in an environment where long-term regulatory expectations remain unclear.

Uncertainty can have practical effects.

Firms may slow product launches, delay investment decisions, or consider shifting certain operations to jurisdictions with clearer rules.

For investors, the absence of a completed framework complicates assessments of risk and compliance.

Politics and monetary strategy

Political dynamics are also shaping the timeline. The ruling Democratic Party is now working to merge several lawmaker proposals into a revised digital asset bill.

At the same time, strategic concerns around monetary sovereignty are becoming more prominent.

President Lee Jae Myung has identified a Korean won-backed stablecoin as a national priority, arguing that it could counter the growing dominance of US dollar-linked stablecoins in global crypto markets.

These ambitions increase pressure on regulators to ensure that any framework aligns with broader monetary policy goals.

The delayed Digital Asset Basic Law is meant to represent the second phase of South Korea’s crypto regulation.

The first phase, already in force, targeted unfair trading practices.

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Polkadot price forecast: market weakness hinders bulls near 1.90

  • Polkadot price risks falling to $1.70 or lower amid bearish pressure.
  • Broader market weakness gives bears the advantage.
  • Technical indicators are also largely bearish.

Polkadot is among the altcoins to trade in the red on Monday as current market weakness continues to hinder bulls.

DOT, the blockchain interoperability protocol’s native token, was at $1.83 and down 2% in the past 24 hours.

With the broader market experiencing volatility amid macroeconomic pressures, DOT’s performance has been underwhelming.

Market weakness hinders DOT near 1.90

Polkadot’s recent attempts to break above $1.90 have been thwarted by pervasive market weakness.

The token has suffered downward action amid a bearish undercurrent across the crypto space.

After briefly peaking near this level, DOT encountered stiff resistance. Price dropped to $1.83.

Bulls risk giving up further ground as uncertainty brings low trading volumes and waning buyer interest.

While price is 1.5% up this past week, it’s down 18% in 30 days and 74% down in the past year.

Short-term negatives like the disruption seen on Sunday are worth watching too.

Polkadot price forecast

Currently trading at $1.85, the token has struggled to regain momentum from its earlier highs.

DOT’s muted price action reflects overall investor caution in the market.

Bitcoin and Ethereum face key resistance levels near $90,000 and $3,000 respectively. Meanwhile, XRP, Solana, and BNB have also pared gains as profit taking and end of year reset takes shape.

Technical indicators, network developments, and market sentiment will all offer tailwinds or be potential headwinds in coming the months.

As such, DOT could see modest gains in the short term, potentially reaching $2.00 and $2.25.

More optimistic forecasts suggest a rebound to above $4.00. However, this might be a bit ambitious for bulls in the short term given, the token’s recent downtrend.

Polkadot price fell from highs above $10 in January this year.

Year-to-date, bulls have failed to hold onto gains above $6.00 and above $4.50. The dip to below $2.00 has only added to the bearish strength currently dominating the altcoin.

A further decline is a possibility if bearish trends persist.

The technical outlook

The 50-day exponential moving average is declining, signaling short-term weakness.

Meanwhile, the Relative Strength Index (RSI) hovers below 50. This hints at potential downside continuation. Exhaustion if the metric hits oversold territory will signal reversal.

Polkadot Price Chart
Polkadot price chart by TradingView

The moving average convergence divergence indicator, however, hints at bullish resilience.

Short-term, sideways trading below $1.80 is likely.

But any fresh bleeding will not only limit a potential breakout, but also allow sellers to target $1.70 or lower.

Key factors likely to influence these forecasts include Polkadot’s parachain auctions, governance improvements, and macroeconomic conditions.

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Michael Saylor’s Strategy caps 2025 with 1,229 Bitcoin purchase

  • Michael Saylor’s Strategy added 1,229 BTC in late December, ending 2025 with record holdings.
  • The $109M buy was funded through new share sales, raising dilution concerns.
  • Strategy’s shares fell despite the purchase as Bitcoin and MSTR closed 2025 lower.

Michael Saylor’s Strategy, formerly MicroStrategy, is closing 2025 with another decisive Bitcoin buy, reinforcing its long-standing commitment to the digital asset despite a challenging year for both crypto markets and its own stock.

The company disclosed that it acquired 1,229 Bitcoin in the final week of December, marking its last purchase of the year and underscoring a strategy that has come to define the firm’s identity.

A final buy to end the year

Strategy’s latest acquisition took place between December 22 and December 28, with the company spending roughly $108.8 million to add 1,229 Bitcoin to its treasury.

The coins were purchased at an average price of about $88,568 per Bitcoin, a level close to where the market was trading during the final days of the year.

With this transaction, Strategy’s total Bitcoin holdings climbed to approximately 672,497 BTC.

The company’s cumulative investment now runs into tens of billions of dollars, with an average cost basis estimated at just under $75,000 per coin.

That scale cements Strategy’s position as the largest corporate holder of Bitcoin globally.

MSTR stock slides amid Bitcoin bet

The market reaction to the latest purchase was mixed, with Strategy’s stock slipping following the disclosure of the purchase.

The stock is currently trading near its yearly lows even as the company expanded its Bitcoin position.

Although some may argue that the decline is a result of bitcoin price pullback, it also reflects ongoing investor unease about dilution and the broader performance of the stock in 2025.

However, some continue to view Strategy as a leveraged proxy for Bitcoin, arguing that sustained long-term appreciation in the asset could ultimately outweigh near-term stock pressure.

Betting on metrics, not moods

Strategy continues to point investors toward its internal performance measures, particularly a metric it calls “BTC Yield.”

This figure is designed to show how effectively the company increases Bitcoin holdings relative to its share count over time.

Strategy has highlighted a BTC Yield in excess of 20% for 2025, suggesting that, from its perspective, the strategy of issuing shares to buy Bitcoin is still delivering results.

The company has framed this approach as disciplined capital allocation rather than speculative trading.

For Michael Saylor, the year-end purchase fits a consistent narrative.

He has repeatedly argued that short-term price swings are secondary to building a large, permanent Bitcoin treasury and, ending 2025 with another nine-figure buy reinforces that message.

As the calendar turns, Strategy moves into 2026 with its largest Bitcoin (BTC) holdings to date, even as uncertainty lingers over how markets will ultimately respond.

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Bitcoin price consolidates near $87K as downside risk persist

  • The Bitcoin price rose to above $90,200 on Monday.
  • Bulls failed to hold onto gains, and the price dropped to $86,717.
  • Bulls are looking to strengthen as analysts point to continued.

It’s been a difficult last few weeks of 2025 for crypto, and Bitcoin (BTC) showed that this will likely continue into early 2026 as bulls struggled on Monday.

This trend, however, also indicates that the benchmark digital asset has settled into a period of relative stability.

On December 29, BTC traded around the $87,000 level, hovering below $90,000 amid reduced holiday liquidity and cautious investor sentiment.

Bitcoin touches $90k before retreating

Bitcoin briefly surpassed the psychologically significant $90,000 mark on December 29, reaching an intraday high of approximately $90,299 during early Asian trading sessions.

This surge reflected fleeting optimism, driven by spot buying and limited short liquidations in thin markets.

However, the rally proved short-lived, with selling pressure emerging as the price approached higher levels, leading to a retreat toward $86,717.

At the time of writing, BTC had nonetheless recovered modestly to reclaim territory above $87,700. With market weakness showing, the cryptocurrency has maintained a largely range-bound profile.

Bears currently hold an upper hand with losses of around 2% over the past week and 3% across the month.

This performance paints a market in consolidation, where brief spikes fail to sustain amid profit-taking and subdued trading volumes typical of the holiday season.

Analysts on Bitcoin price outlook

Bitcoin lingers below the $90,000 barrier because bearish resolve among sellers has kept breakthroughs in check.

This outlook has been clearly demonstrated after digital asset investment products recorded substantial outflows last week.

Data from CoinShares reveal that approximately $446 million exited the crypto market.

Bitcoin bore the brunt, experiencing net redemptions of $443 million, while Ethereum saw outflows of $59.5 million.

Institutional sales for BTC are a trend some have picked out.

In contrast, alternative cryptocurrencies attracted capital, with XRP registering the strongest inflows at $70.2 million and Solana drawing $7.5 million.

As such, market observers remain guarded in their outlook.

Analysts at QCP Capital highlighted in a recent note that Bitcoin’s modest upward movement occurred against a backdrop of low holiday trading activity.

Support for the price stemmed primarily from spot and perpetual market purchases rather than widespread forced liquidations of short positions.

Post-options expiry positioning reveals persistently high perpetual funding rates, indicating potential for upward gamma exposure should BTC hold above roughly $94,000.

Meanwhile, downside protective hedging has diminished, though sharply reduced open interest signals limited conviction among traders.

Directionality, they suggest, may hinge on a resurgence in market liquidity as normal trading resumes in the new year.

Overall, the current environment points to a cryptocurrency market pausing for breath after a tumultuous 2025.

While structural advancements in adoption and regulation have bolstered long-term prospects, near-term price action reflects broader risk aversion and seasonal factors.

In this case, investors will wait for clearer catalysts. Potentially, this will come from macroeconomic shifts and renewed institutional inflows.

A break above $94k could be key to bulls.

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Why major crypto firms are diverging on Ether ahead of 2026

  • Trend Research has lifted its Ether holdings above 601,000 ETH using borrowed stablecoins.
  • The firm is now the third largest corporate Ether holder despite being unlisted.
  • Fundstrat expects Ether to fall toward $1,800 in the first quarter of 2026.

As 2026 approaches, Ether is becoming a clear dividing line for large crypto focused firms.

Some companies are increasing exposure aggressively, while others are preparing for a potential downturn in the months ahead.

Recent on chain data and market positioning show that corporate strategies around Ether are no longer aligned, reflecting different expectations around price behaviour, liquidity conditions, and the pace of crypto adoption within the financial system.

Trend Research pushes ahead

Hong Kong based investment firm Trend Research has continued to accumulate Ether despite growing discussion of downside risks in early 2026.

Blockchain data shared by Lookonchain shows the firm recently acquired about $35 million worth of ETH, lifting its total holdings above 601,000 ETH.

At current prices, the position is valued at roughly $1.83 billion.

The same data indicates that Trend Research has borrowed around $958 million in stablecoins from the decentralised lending protocol Aave.

Its average purchase price stands near $3,265 per ETH. Lookonchain published these details in a Monday post on X.

According to a post by founder Jack Yi, Trend Research plans to keep buying Ether regardless of short term price moves of a few hundred dollars.

Alongside ETH, the firm also maintains a heavy position in the Trump family linked World Liberty Financial token, underlining a broader high conviction crypto stance going into next year.

Corporate holder rankings shift

With more than 601,000 ETH, Trend Research now ranks as the third largest corporate Ether holder.

It sits behind BitMine Immersion Technologies and SharpLink Gaming.

However, because Trend Research is not publicly listed, it does not appear on several widely followed tracking platforms, including the StrategicEthReserve.

BitMine, the largest corporate Ether holder, has historically relied on a dollar cost averaging strategy rather than large single phase accumulation.

The contrast highlights how firms with significant balance sheets are adopting different approaches as uncertainty builds around the next market cycle.

Fundstrat flags downside risk

While some firms continue to accumulate, others are bracing for a possible drawdown.

Fundstrat Global Advisors recently circulated an internal research note projecting that Ether could fall to a local bottom around $1,800 in the first quarter of 2026.

Screenshots of the note emerged on Dec. 21 and were attributed to Fundstrat co-founder and managing partner Tom Lee.

The analysis pointed to a meaningful pullback across major crypto assets in the first half of 2026, followed by the formation of a durable low either in the first or third quarter before a recovery into year-end.

The forecast drew attention because Lee is also chairman of BitMine, which holds roughly $12.3 billion worth of Ether, making it the largest known corporate ETH holder.

Smart money stays cautious

Positioning data suggests that professional traders are also leaning defensive.

According to blockchain intelligence platform Nansen, traders labelled as smart money remain net short on Ether by about $117 million.

At the same time, Nansen data shows these traders added around $15 million in long positions over the past 24 hours.

The move points to a modest pickup in risk appetite, even as overall positioning continues to reflect caution around near term price direction.

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