Schlagwort: crypto news

• Portugal prohibits political betting under its 2015 online gambling law.
• Polymarket remains accessible, but regulators may ask ISPs to block it.
• Polymarket faces restrictions in 30+ countries, with access limits varying by market.

Portugal’s gambling regulator has ordered blockchain-based prediction market Polymarket to cease operations in the country within 48 hours after the platform saw a sharp spike in activity linked to Sunday’s presidential election.

According to Rádio Renascença, bets placed on the outcome of the Jan. 18 vote exceeded 103 million euros ($120 million).

The regulator, the Serviço de Regulação e Inspeição de Jogos (SRIJ), said Polymarket does not hold a licence to offer betting services in Portugal and is therefore operating illegally.

The enforcement step highlights how prediction markets are increasingly colliding with national gambling laws, particularly when political events drive rapid inflows of user activity and large volumes of capital.

A fast-growing prediction market meets strict local gambling rules

Polymarket is a prediction market that lets users bet on real-world events such as politics, sports, or other developments by buying shares tied to potential outcomes.

In Portugal, betting on political events and other real-world outcomes is illegal.

Under the country’s 2015 online gambling law, betting is permitted only on sports, casino games, and horse racing.

SRIJ said Polymarket is not authorised to offer betting services in Portugal and cannot legally operate political markets, whether they relate to domestic events or international developments.

The regulator’s 48-hour deadline and what could come next

The regulator’s decision was tied to the surge in election-related betting, with activity around the Portuguese presidential race drawing increased attention.

SRIJ formally ordered Polymarket to quit the country within 48 hours.

However, the platform remains accessible for now, though regulators may soon instruct internet service providers to block access.

Other prediction market platforms, including Kalshi, Myriad, and Limitless, also appear to be accessible in Portugal, even as authorities focus specifically on Polymarket’s licensing status and its political betting markets.

Election-related volume draws fresh scrutiny

The size of the wagering linked to the Jan. 18 vote has put the spotlight on how quickly liquidity can concentrate on political markets.

Rádio Renascença reported that bets exceeded 103 million euros ($120 million), underscoring the scale of the activity on Polymarket tied to Portugal’s presidential election.

Such volumes can draw regulator attention faster than smaller niche markets, especially in jurisdictions where political betting is explicitly restricted.

Polymarket faces bans in 30+ countries

Polymarket was founded in 2020 and has already faced restrictions in more than 30 countries, including Singapore, Russia, Belgium, Italy, and, more recently, Ukraine.

Regulatory approaches vary by jurisdiction. Some countries, such as Belgium, have blacklisted the website.

Others, including France, have limited access so that local users can enter the platform in a “view-only” mode rather than actively participate.

Portugal’s enforcement action adds to that growing list and shows how legal pressure on prediction markets can escalate quickly when platforms gain traction around elections.

The post Portugal orders Polymarket to shut down over election betting surge appeared first on CoinJournal.

• The one-exchange-one-bank model is not a legal requirement but is widely followed.
• A government study found the setup limits access for small crypto exchanges.
• Large platforms dominate Korean won-based trading due to better liquidity.

South Korea’s top regulators are reportedly reviewing how local cryptocurrency exchanges work with banks, aiming to create a more balanced playing field.

The current system often links each crypto exchange to just one bank, limiting choice and creating high entry barriers for smaller firms.

Though this setup isn’t officially required by law, it has become widespread due to anti-money laundering and identity verification rules.

The Financial Services Commission and the Fair Trade Commission are now coordinating a review to see whether this long-standing practice is stifling competition and reinforcing the dominance of a few large exchanges.

Rules may favour bigger exchanges

Under the existing system, exchanges need to form exclusive partnerships with domestic banks to allow customers to deposit and withdraw Korean won.

Without that link, they can’t offer basic fiat services.

The model emerged in response to growing demands for transparency and risk control, but may now be working against smaller market participants.

A recent study commissioned by the government explored how current crypto regulations impact competition.

According to findings reported by local outlet Herald Economy, researchers concluded that the one-to-one exchange-bank setup makes it harder for newer or smaller exchanges to access banking services.

Even though it helps manage financial risks, applying the same strict standards across the board may be excessive when firms vary in size, volume, and risk profile.

The study also noted that most Korean won-based crypto trading happens on just a few large platforms, making the market highly concentrated.

Liquidity gap highlights entry barriers

The research pointed out that when a few platforms dominate trading volume, they benefit from deeper liquidity and faster transactions.

This creates a cycle where users are more likely to choose the bigger players, further limiting the reach of smaller exchanges.

As long as banking access remains difficult, that pattern is unlikely to change.

This concentration may make the market less dynamic, reduce innovation, and restrict consumer options.

As a result, the current setup could be reinforcing the position of already-powerful exchanges, rather than encouraging healthy competition.

Lawmakers delay key digital asset bill

The review of crypto-banking links comes alongside delays in broader legislative changes.

The Digital Asset Basic Act, which is expected to reshape the country’s crypto regulation, was initially scheduled for submission before the end of 2023.

However, on December 31, lawmakers pushed it back to 2026.

The bill proposes allowing the launch of stablecoins backed by the Korean won, as long as the issuing companies store their reserve assets with approved custodians such as banks.

The delay stems from disagreements over how to supervise stablecoin issuers and whether a new oversight body should pre-approve them.

The Financial Services Commission is also weighing how to allow both financial and non-financial firms to take part in this sector without compromising on safety.

The goal is to support innovation while maintaining strong regulatory safeguards.

The post South Korea may target fairer crypto market with banking rule changes: report appeared first on CoinJournal.

• A hard-start approach may force compliant firms to stop operations.
• The HKSFPA urges a 6–12 month grace period for applicants.
• The association also raised concerns over the CARF framework.

Hong Kong’s plan to tighten oversight of digital asset firms has raised concerns that crypto managers could be forced to suspend operations.

The warning comes from the Hong Kong Securities & Futures Professionals Association (HKSFPA), which has flagged risks associated with the potential implementation of new licensing requirements without a transition period.

The government is currently consulting on extending the city’s regulatory reach across virtual asset dealing, advisory and fund management services.

These proposals aim to close gaps in oversight but could leave active firms in limbo if licences are required from day one.

Concerns over hard launch timing

The HKSFPA’s main concern is that a “hard start” would require all market players to hold a valid licence before the new framework officially begins.

Without any grace period, this could mean that businesses awaiting approval would have to stop offering regulated services, even if they’ve submitted their applications.

This would impact firms that are already operating legally under the current rules but have not yet received a licence under the new system.

The concern is that licensing reviews could take time, especially given the complexity involved, which could create regulatory bottlenecks and disrupt the sector.

Group pushes for grace period

In a formal submission, the HKSFPA has asked for a six to twelve-month deeming period for businesses that apply ahead of the new regime’s start date.

The group believes this would allow operations to continue while the Securities and Futures Commission (SFC) processes applications.

Without such a buffer, even firms with strong compliance practices could face forced shutdowns due to administrative delays.

The application process itself is not quick, and the risk of backlogs is significant, especially as more companies prepare to enter a newly regulated environment.

Expanded oversight still under review

The proposed rules are still in the consultation phase and do not yet have a confirmed start date.

If implemented, they would mark a shift in how virtual asset services are governed in Hong Kong, moving beyond trading platforms to include advisory and fund management services.

The industry body supports Hong Kong’s aim of strengthening regulatory standards for digital assets.

However, it warns that if timelines are too rigid, it could discourage institutional involvement and slow down the adoption of compliant crypto infrastructure.

Second warning highlights implementation risk

In a separate consultation submission made this week, the HKSFPA also expressed concerns about the upcoming Crypto Asset Reporting Framework (CARF) being introduced in line with the OECD’s recommendations.

While the group supports the policy direction, it again warned that inflexible execution could lead to unintended exposure to operational and legal risks.

Taken together, the two submissions reflect a broader message from the industry: while regulation is welcomed, execution must avoid creating hurdles that push firms out of the market.

The post Crypto firms in Hong Kong face risks as new licensing rules advance appeared first on CoinJournal.

• President Alexander Lukashenko signed Decree No. 19 to set operating rules and market entry conditions.
• Cryptobanks must become Hi-Tech Park residents and be registered in a central bank-run cryptobank register.
• The model introduces dual oversight through financial rules and Hi-Tech Park supervisory board decisions.

Belarus is moving digital assets closer to the core of its financial system after introducing a legal framework for “cryptobanks”.

Instead of treating crypto as a separate industry, the country is building a model where token-related services sit inside existing banking structures and are supervised by the state.

On Friday, Belarusian President Alexander Lukashenko signed Decree No. 19, which defines how cryptobanks can operate and what conditions they must meet to enter the market.

The move gives Belarus a regulated route for crypto-linked banking, while tightening the boundaries around who is allowed to provide these services.

What Decree No. 19 allows cryptobanks to do

Under the decree, cryptobanks are defined as joint-stock companies that can combine token-based activity with traditional banking functions.

This includes banking services, payments, and related financial services, but now within a formal legal structure.

Rather than creating a parallel “crypto sector”, Belarus is linking digital asset operations to the same financial oversight mechanisms and infrastructure that already govern mainstream institutions.

That approach signals an effort to keep crypto activity within a controlled and traceable system.

Cryptobanks will not be open to every player. The framework limits participation to firms that agree to operate strictly within the country’s regulatory requirements.

Hi-Tech Park rules are now tied to crypto banking

A key part of the new framework is the Hi-Tech Park, a state-backed technology zone that already plays a major role in Belarus’s digital economy strategy.

Under the decree, a cryptobank must obtain resident status in the Hi-Tech Park before entering the market.

On top of this, cryptobanks must be added to a dedicated register that will be maintained by the country’s central bank.

This structure effectively places market access behind formal approvals, ensuring the state can monitor who is active and under what rules they are operating.

Cryptobanks face dual oversight and compliance duties

Belarus is applying a layered supervision model to cryptobanks, with requirements that stretch beyond standard financial compliance.

According to the decree, cryptobanks must follow rules applied to non-bank credit and financial institutions.

They also have to implement decisions issued by the Hi-Tech Park’s supervisory board.

This sets up dual oversight that combines financial regulation with technological supervision.

Officials say the approach is designed to support innovative products that mix conventional banking services with token-based transaction efficiencies.

In practical terms, it allows crypto-linked services to be delivered through licensed entities that are already embedded in the formal banking environment.

The new cryptobank rules fit into a longer policy direction where crypto is allowed only within clearly defined and state-approved boundaries.

The post Belarus establishes rules for ‘crypto banks’: check out the details appeared first on CoinJournal.

• Almost three million people signed a parliamentary petition opposing mandatory digital ID cards.
• Digital right-to-work checks will remain mandatory under the updated policy approach.
• The UK digital ID scheme, expected around 2029, will be offered as optional alongside electronic alternatives.

The UK government, led by Prime Minister Keir Starmer, has dropped plans to make a centralised digital ID mandatory for workers, stepping back from a proposal that would have changed how employees prove their right to work.

Under the original plan, workers would have been required to use a government-issued digital credential, rather than relying on traditional documents such as passports.

The reversal follows months of criticism from politicians and civil liberties campaigners, as well as a large-scale public response that questioned whether employment access should depend on one centralised system.

Critics warn of surveillance and data security risks

The mandatory digital ID proposal drew backlash from opponents across the political spectrum, including UK Member of Parliament Rupert Lowe and Reform UK leader Nigel Farage.

Civil liberties groups and campaigners also raised concerns about how a centralised identifier could be used over time.

Opponents warned it could lead to an “Orwellian nightmare” by giving the state a stronger ability to monitor citizens.

Another major fear was that centralising sensitive personal data could create a single “honeypot” vulnerable to hacking and misuse.

Critics also pointed to the risk of mission creep, where a scheme launched for employment checks could gradually expand into other areas, including housing, banking, and voting.

Petition pressure forces a policy climbdown

Public resistance to mandatory digital ID became visible through formal political channels.

Almost three million people signed a parliamentary petition opposing digital ID cards, making the issue difficult for ministers to ignore.

Lowe celebrated the policy shift in a video posted on X, saying he was off for “a very large drink to celebrate the demise of mandatory Digital ID”.

Farage also backed the rollback, calling it “a victory for individual liberty against a ghastly, authoritarian government”.

Digital right-to-work checks stay mandatory from government

Despite dropping plans for a mandatory digital ID credential, officials say digital right-to-work checks will remain mandatory.

That means the government is still committed to keeping employment verification in a digital process, even if it is no longer built around a single government ID system.

When the UK’s digital ID scheme launches around 2029, it is now expected to be optional rather than compulsory.

Instead of becoming the only approved route for proving work eligibility, it will be offered alongside alternative electronic documentation.

Digital euro, EU identity, and crypto privacy debates return

The UK’s partial rollback is also feeding into wider debates about digital control systems, including central bank digital currencies and the European Central Bank’s digital euro project.

In those discussions, civil society groups and some lawmakers have argued for strict privacy guarantees rather than systems that could allow broad traceability.

At the same time, the European Union is moving ahead with its own digital identity framework and digital euro work, while exploring privacy-preserving designs.

One approach includes using zero-knowledge proofs, allowing citizens to prove attributes such as age or residency without revealing their full personal information.

These designs connect to decentralised identity tools and privacy-preserving blockchain technologies, including zero-knowledge credential systems and privacy-enhancing smart contract structures.

The aim is to support compliance while minimising how much personal data is exposed or stored in one place.

Privacy-focused crypto tools have also remained in focus, including privacy coins such as Zcash (ZEC) and Monero (XMR), alongside decentralised identity protocols.

Interest in these tools has continued as regulators step up scrutiny of DeFi and explore identity checks for self-hosted wallets.

The US Treasury’s proposed DeFi ID framework, alongside renewed attention on privacy tokens, shows how policymakers are testing stronger Anti-Money Laundering and Know Your Customer controls on-chain, even as builders push alternative designs.

The post UK drops mandatory digital ID for workers after backlash and liberty concerns appeared first on CoinJournal.