Crypto Regulation and Compliance Updates

Japan is tightening cryptocurrency compliance with a focus on transparency for tax authorities through the Crypto-Asset Reporting Framework (CARF) effective January 1, 2026. Crypto service providers must verify user tax residency and report transaction data, changing the market's compliance infrastructure significantly. While crypto can still thrive, it will no longer be a space for anonymity, aligning with traditional banking requirements.

Gate News message, April 4. Recently, Cambodia’s National Assembly passed a new law unanimously with 58 votes in favor, officially criminalizing the operation of scam bases. Under the law, those involved will face imprisonment of 2 to 5 years and a maximum fine of $125k; if it involves organized crime or multiple victims, the penalties will double. The bill is currently pending the King’s signature to take official effect. Against this legislative backdrop, the UK has already imposed sanctions on operators of scam networks within Cambodia, and Cambodia has also extradited a person suspected to be the leader of a criminal syndicate to China.

Google's Quantum AI team said earlier this week that a future quantum computer could derive a bitcoin private key from a public key in roughly nine minutes. The number ricocheted across social media and spooked markets. But, what does it actually mean in practice? Let's start with how bitcoin

The Japan Financial Services Agency has issued “Policy Guidelines for Strengthening Cybersecurity for Crypto Asset Exchange Businesses and Related Entities,” with the aim of strengthening investor asset protection. It proposes a three-layer security framework to address the new landscape of cyberattacks. In subsequent plans, it will conduct penetration testing on major operators and revise the guidance to raise security standards.

Crypto and banking industry representatives are meeting to discuss stablecoin yield provisions in a market structure bill. Compromise language, led by Senators Alsobrooks and Tillis, has raised concerns in the crypto sector, particularly regarding yield based on stablecoin balances. The release of the revised text has been delayed, with ongoing negotiations over technical details. A markup hearing is anticipated later in April. Other regulatory concerns, including the definition of DeFi and potential ties to former President Trump's family, remain unresolved.

DeFi lending protocol HypurrFi issues a security warning, saying that its website domain has been compromised. It urges users not to use that domain and to pause interactions. The team confirms users’ funds are safe and is investigating the domain hijacking incident.

Cambodia's parliament passed legislation targeting compounds used to defraud victims through scams, including those involving cryptocurrency. In a Friday notice, the Senate of the Kingdom of Cambodia announced that the chamber had unanimously approved the draft law with no amendment, with 58

President Trump has fired Pam Bondi and replaced her with Todd Blanche as interim U.S. Attorney General --- handing control of the Justice Department to the official who dismantled the DOJ's crypto enforcement unit in April 2025 and holds up to $485,000 in personal digital asset holdings.

The prediction market platform Kalshi in the United States has hired Carter, a former aide to President Obama, as a policy adviser to strengthen ties with the government and address regulatory challenges. Carter’s addition symbolizes Kalshi’s proactive outreach in political circles, while also drawing attention to legal disputes and concerns about insider trading by political figures. Prediction market data is increasingly becoming an important reference for tracking social trends.

Cambodia’s National Assembly passed the “Anti-Technology Fraud Law” at the end of March, aiming to crack down on online scams and human trafficking. The law establishes dedicated offenses, with severe penalties and life imprisonment. The new law expands the scope of law enforcement, targeting acts such as “pig butchering” scams, and responds to international pressure to repair its image. The government has pledged to shut down illegal scam centers by the end of April.

X is implementing a new feature that auto-locks accounts with their first crypto post to combat phishing attacks. This aims to reduce the misuse of hijacked accounts for scams while enhancing user security.

Onchain detective ZachXBT claims that Circle, the issuer of the USDC (USDC) stablecoin, has failed to freeze or blacklist about $420 million in illicit fund flows since 2022. Circle can freeze illicit funds and blacklist wallet addresses, but either took “minimal” action to freeze illicit flows or

Kalshi announced the hiring of Stephanie Cutter, a former advisor to President Obama, to strengthen its relationships in Washington, D.C. amid scrutiny and lawsuits regarding its prediction markets.

The U.S. stablecoin company Circle has been accused of failing to effectively freeze more than $420 million in suspicious USDC funds. Investigators ZachXBT pointed out that since 2022, Circle has delayed freeze actions in multiple hack incidents, sparking questions about its compliance. The Drift Protocol attack involved in the incident has also made Circle’s criticism the focus. Market calls for Circle to raise its risk management standards were followed by serious losses to users caused by its delayed compliance enforcement.

Social media platform X will auto-lock accounts that mention cryptocurrency for the first time, requiring additional verification to deter crypto phishing scams. This new measure aims to eliminate incentives for attacks that hijack accounts to promote fraudulent tokens.

four.meme announcement: Because the project tax fee receiving address that starts with 0x9f4 has a defect, sell transactions have failed. The related token creation function has been paused, and users are advised to stop trading. Also, full refunds will be provided to affected users who purchased before April 3 at 22:50.

A product that combines cryptocurrency, adult content, and a high-risk lending mechanism has recently sparked heated discussion in crypto circles and on social platforms. The project, named “Hero Loan,” promotes the slogan “unsecured loans,” but requires users to upload private videos as a condition, and ties default risk to an adult-platform monetization mechanism—prompting many netizens to describe it as “an encrypted version of loan-sharking/porn lending.” The project even uses “If you think this won’t get used, it just means you haven’t reached rock bottom yet” as its promotional tagline, clearly targeting users with high risk and extreme capital pressure. However, shortly after it was exposed, one netizen said they had sent a video but didn’t receive any money; a KOL also responded that the project appears to have rug-pulled. But honestly, a private video is only worth 60 bucks—that’s just too brutal. “Hero Loan” targets people with nowhere left to go According to information on the official website, the product runs on BNB Chain and is positioned for “people who have nowhere left to go—

On-chain investigator ZachXBT accuses stablecoin issuer Circle of making more than $420 million in compliance execution mistakes since 2022, failing to promptly freeze the USDC funds involved, which led to funds draining in multiple security incidents, with a slower response time than competitors.

The White House no longer has a dedicated crypto policy leader following Trump's appointment of JD Vance as "Fraud Czar." This shift comes after David Sacks's departure, leaving crypto legislation stalled. The focus on fraud enforcement contrasts with the lack of crypto policy leadership during a crucial legislative period.

Cambodia’s National Assembly unanimously passed a new law to crack down on cyber scams that use crypto assets, with a maximum penalty of life imprisonment. The bill will be reviewed by the Senate and approved by the King. The core leaders of scam syndicates face severe penalties; analysis suggests this may only shift the crimes, and that coordinated efforts are needed to target corruption and money-laundering networks as well.