7.22 AI Daily Crypto Assets market undergoes dramatic changes, intensifying the game between regulation and innovation.

1. Headlines

1. Federal Reserve Chairman Powell is accused of perjury by Republican lawmakers, which may trigger a political storm.

U.S. Representative Anna Paulina Luna submitted a report to the Department of Justice on July 21, accusing Federal Reserve Chairman Powell of criminal conduct, claiming he "spoke falsely" about the renovation of the Federal Reserve headquarters during a congressional hearing. Luna wrote in her letter: "On June 25, 2025, Powell made several significant false statements regarding the renovation of the Eccles Building while testifying under oath before the Senate Banking Committee." She also mentioned that when Powell raised the project cost from $1.9 billion to $2.5 billion, he described the change as "insignificant," but congressional investigations found that the project's scope and overruns were severe.

The crime of perjury can lead to a maximum sentence of 5 years in prison. This move has sparked a political storm, which not only may shake Powell's position but also brings the long-standing issue of the Federal Reserve's independence to the forefront. Analysts point out that this reflects the Trump administration's dissatisfaction with Powell's long-term hawkish stance. Powell has faced criticism for maintaining an interest rate hike policy during his tenure, seen as suppressing economic recovery. This accusation may pave the way for Trump to seek Powell's early replacement. However, replacing the Federal Reserve chair requires Senate approval, which is quite difficult in the short term.

2. Spa's major move involves utilizing $1.6 billion in Bitcoin reserves, sparking market speculation.

According to on-chain analysis, Spa suddenly transferred over $150 million worth of Bitcoin after three years of inactivity. This move has sparked widespread speculation, with some analysts suggesting that Spa may be reorganizing its wallet, but the total holdings still amount to 6,977 Bitcoins. Another interpretation is that Spa may have utilized part of its Bitcoin reserves for operational needs.

Whether it's wallet organization or cashing out, this large-scale operation reflects Spa's unwavering confidence in Bitcoin. As one of the tech giants, Spa's movements in Bitcoin are closely watched by the market. Analysts believe that this significant flow of funds may have some impact on the Bitcoin spot and derivatives markets, particularly in the futures and options markets. However, considering Spa's limited position size, unless there are further large actions, the impact on Bitcoin's spot price may be limited.

3. The new regulations for cryptocurrency exchanges are strict, and the industry calls for real users and innovative business models.

According to industry insiders, leading exchanges are strictly reviewing the standards for listing new projects, seeking long-term entrepreneurs rather than short-term cash-out individuals. Some founders who previously faked data chose to cash out and lie flat after successfully launching, leaving the community with a pile of debts. In contrast, long-term-minded entrepreneurs are committed to growth and finding more reliable and effective business scenarios at every stage.

Industry data shows that user growth in this cycle is far behind that of the previous cycle, due to most projects failing to capture real users and generate value. New user growth is slow, with a large number coming from traffic selling conversions. Analysis indicates that startup projects generally have a tendency to "gather groups," with a few top-tier projects easily securing funding, while ordinary teams struggle to raise funds. Exchanges and investors are unable to distinguish whether projects have real users and value.

Industry insiders call for successful individuals to give back more to the industry, support the construction of public goods, and create a better innovative environment for early-stage entrepreneurs. The industry cannot be overshadowed by homogenization and duplication; it needs more innovation and sustainable business models. In this cycle, the community is tested by faith.

4. Ethereum block gas limit increased by 25%, improving transaction throughput and scalability.

According to reports, the gas limit for Ethereum blockchain blocks has been raised from 36 million units to 45 million units, with about half of the validators supporting this adjustment, effective at block number 22,968,004. This change aims to improve transaction throughput and network scalability, and is part of Ethereum's scaling roadmap.

Future goals include achieving 60 million to 150 million Gas units, and ensuring network security and stability through proposals such as EIP-7935 and EIP-7983. Analysts indicate that this move can enhance transaction processing capacity without the need for a hard fork, which helps alleviate network congestion. At the same time, it paves the way for larger scale expansion upgrades in the future.

However, raising the Gas limit also means that the cost of individual transactions will increase. How to seek a balance between expansion and transaction costs may become a new issue that the Ethereum community needs to address. Overall, this adjustment is an important step in Ethereum's continuous development and will further enhance its competitiveness as a leading public chain.

5. Solana breaks through the $200 mark, on-chain activity data supports bullish market expectations.

On July 22, the Solana ecosystem token SOL increased by 12.26% in a single day to $203.5, reaching a new high since February 5. Analysts point out that SOL breaking through the $200 mark is an important psychological and technical threshold, indicating a recovery in investor confidence and increased market liquidity. The breakthrough at this key position often attracts more buying pressure, laying the foundation for subsequent upward momentum.

On-chain data shows that the total locked value (TVL) of Solana's DeFi ecosystem has surged by 37% within a month to 1.89 billion USD, providing a solid buying foundation for SOL with a significant increase in network activity. In addition, Solana ecosystem tokens such as PENGU and BONK have collectively surged due to ETF expectations, with a daily increase of over 20%.

Analysis indicates that behind this bull market is a record $11 billion in open contracts. From a technical perspective, as SOL approaches a key breakout in a golden cross, it is expected to rise further. Against the backdrop of the recovery in the Layer 1 sector, SOL, ranked 16th by market capitalization, shows strong rebound potential.

2. Industry News

( 1. The price of Bitcoin has突破$120,000, sparking heated discussions in the market.

The price of Bitcoin surpassed the $120,000 mark on July 22, setting a new historical high. This significant milestone has garnered widespread attention and heated discussions in the market.

Analysts believe that the main reasons driving the rise in Bitcoin prices include the large-scale entry of institutional investors, the acceleration of the mainstreaming process of cryptocurrencies, and investors' optimistic expectations for the future. As Bitcoin is seen as a legitimate alternative asset, its position in investment portfolios is continuously improving.

At the same time, the activity and transaction volume of the Bitcoin network have also seen significant growth, reflecting the growing enthusiasm of the market for cryptocurrencies. However, some analysts have also warned that excessive speculation may pose systemic risks and have urged investors to remain rational and cautious.

Looking ahead, it remains uncertain whether Bitcoin can maintain its current upward momentum. On one hand, the continued influx of institutional investors may provide further support for prices; on the other hand, changes in regulatory policies and technological innovations could also have a significant impact on the market. Therefore, investors need to closely monitor market dynamics and carefully assess risks and returns.

) 2. The Ethereum ecosystem continues to heat up, ETH price breaks through $4000.

The continuous warming of the Ethereum ecosystem has driven the constant rise in ETH prices. On July 22, the ETH price broke through the $4000 mark for the first time, sparking heated discussions in the market.

Analysts point out that the prosperity of the Ethereum ecosystem is the main driving force behind the rise in ETH prices. With the booming development of applications like DeFi and NFTs, the usage rate and transaction volume of the Ethereum network continue to rise, attracting more investor attention.

At the same time, the gradual advancement of Ethereum 2.0 has also enhanced investors' expectations for network upgrades, boosting the price performance of ETH. Some analysts believe that Ethereum is expected to surpass Bitcoin in the coming years and become a leader in the cryptocurrency space.

However, there are also viewpoints that believe Ethereum is currently facing challenges such as scalability and high gas fees, which may hinder its further development. In addition, the rise of competitors may also pose a certain threat to Ethereum.

Overall, the development prospects of the Ethereum ecosystem are broad, but there are also some uncertainties. Investors need to closely monitor market dynamics and carefully assess risks and returns.

3. The Solana ecosystem continues to heat up, and the price of SOL has突破200美元.

The continuous warming of the Solana ecosystem has driven the constant rise in SOL prices. On July 22, the price of SOL broke the $200 mark for the first time, sparking heated discussions in the market.

Analysts point out that the prosperity of the Solana ecosystem is the main driving force behind the rise in SOL prices. With the vigorous development of applications such as DeFi and NFTs, the usage rate and transaction volume of the Solana network continue to climb, attracting more investor attention.

Meanwhile, the high performance and low gas fees of the Solana network are also important sources of its appeal. Some analysts believe that Solana is expected to become a strong competitor to Ethereum in the future, capturing more market share.

However, there are also viewpoints that believe Solana is currently facing challenges such as insufficient decentralization and security issues, which may hinder its further development. In addition, the rise of competitors may also pose a certain threat to Solana.

Overall, the development prospects of the Solana ecosystem are broad, but there are also some uncertainties. Investors need to closely monitor market dynamics and carefully assess risks and returns.

4. The season of altcoins is coming, and the prices of various tokens are surging.

As the prices of Bitcoin and Ethereum continue to rise, market sentiment is heating up, and it seems that the altcoin season has arrived. On July 22, several altcoins saw significant price increases, attracting market attention.

Analysts pointed out that the main reasons driving the rise in altcoin prices include investors' optimistic expectations for the cryptocurrency outlook and the pursuit of potential gains from altcoins. Against the backdrop of Bitcoin and Ethereum leading the way, some investors have begun to seek higher-risk, higher-return investment opportunities, shifting their focus to the altcoin market.

However, some analysts warn that the altcoin market is characterized by high speculation and volatility, and investors need to act with caution to avoid blindly chasing prices. Some altcoin projects lack real application scenarios and value support, posing high risks.

Overall, the arrival of the altcoin season reflects a warming of market sentiment, but it also carries certain risks. Investors need to conduct thorough due diligence on altcoin projects, carefully assess risks and returns, and formulate reasonable investment strategies.

5. Regulatory policies continue to tighten, and the cryptocurrency market faces challenges.

Recently, several countries and regions have introduced new cryptocurrency regulatory policies, increasing the regulatory intensity on the cryptocurrency market. This trend has sparked widespread attention and discussion in the market.

Analysts point out that the tightening of regulatory policies is mainly due to regulators' concerns about the risks and hidden dangers of the cryptocurrency market, including issues such as money laundering, tax evasion, and speculation. Some countries and regions have already implemented measures such as banning cryptocurrency trading and restricting cryptocurrency advertising to curb the development of the cryptocurrency market.

At the same time, some countries and regions are working to establish regulatory frameworks for cryptocurrencies, aiming to regulate market order and protect investors' rights. The introduction of these regulatory policies may have a certain impact on the cryptocurrency market, including increasing compliance costs and limiting innovation.

Overall, the tightening of regulatory policies reflects the concerns and worries of regulatory agencies regarding the cryptocurrency market, but it may also pose certain obstacles to market development. Investors need to closely monitor changes in regulatory policies, assess their impact on the market, and prepare accordingly for risk management.

6. The We ecosystem continues to develop, attracting investors' attention.

The continuous development of the We ecosystem has attracted widespread attention from investors. On July 22, the token prices of several We projects surged, sparking heated discussions in the market.

Analysts point out that the main driving forces behind the development of the We ecosystem include the popularization of the concept of decentralization, innovative applications of blockchain technology, and investors' optimistic expectations for We's prospects. The We ecosystem aims to build a more open, transparent, and fair internet, attracting the participation of numerous innovative projects and investors.

However, some analysts point out that the We ecosystem is still in its early stages, with certain uncertainties and risks. Some projects lack real application scenarios and value support, leading to a high degree of speculation. In addition, the We ecosystem also faces challenges such as regulation and security.

Overall, the development prospects of the We ecosystem are broad, but there are also some uncertainties. Investors need to conduct thorough due diligence on the We project, carefully assess risks and returns, and develop reasonable investment strategies.

7. Institutional investors continue to enter the market, driving the development of the cryptocurrency market.

Recently, an increasing number of institutional investors have begun to pay attention to and invest in the cryptocurrency market, a trend that has sparked widespread attention and discussion in the market.

Analysts point out that the main reasons driving institutional investors to enter the market include the rapid development of the cryptocurrency market, the gradual clarification of the regulatory environment, and the optimistic outlook for cryptocurrencies. Some well-known institutional investors have begun to include cryptocurrencies in their portfolios to diversify investment risks and achieve potential returns.

At the same time, some analysts have pointed out that the entry of institutional investors may bring certain challenges and risks. For example, large-scale trades by institutional investors could lead to increased market volatility, affecting the interests of retail investors. Furthermore, institutional investors may also exert excessive influence on the cryptocurrency market, attracting the attention of regulatory bodies.

Overall, the entry of institutional investors reflects the continuous maturation of the cryptocurrency market, but it also carries some potential risks. Investors need to closely monitor market dynamics, assess the impact of institutional investors, and prepare for corresponding risk responses.

3. Project Highlights

1. Sui Network: Move ecological new star, leading the next generation of blockchain innovation

Sui Network is a brand new blockchain project developed by a team of engineers who were involved in the development of Diem. The project is built on the Move programming language and aims to provide highly scalable, secure, and low-cost blockchain infrastructure.

Latest Updates: Sui Network recently announced the completion of a $300 million funding round, led by renowned institutional investors such as Andreessen Horowitz and Coatue. The project also launched the Sui testnet, where developers can deploy and test decentralized applications. Sui utilizes an innovative parallel execution architecture and a new consensus mechanism, aiming to break through the current performance bottlenecks in blockchain.

Market Impact: As a rising star project in the Move ecosystem, the emergence of Sui Network brings new development opportunities for blockchain technology. Its high performance and low-cost characteristics are expected to drive more traditional applications to migrate to blockchain, facilitating large-scale application deployment. At the same time, the success of Sui will also inject new momentum into the development of the Move programming language.

Industry feedback: Cryptocurrency analyst Liam Samus stated, "The design concept of Sui Network is very avant-garde and is expected to become a masterpiece of the next generation of blockchains. Its parallel execution architecture can significantly enhance throughput, while the new consensus mechanism is also expected to achieve a better balance between security and decentralization." Well-known investor Arianna Simpson also expressed optimism about Sui's prospects, "The advantages of the Move language lie in security and auditability, and Sui is expected to fully leverage these advantages to bring new development opportunities to the blockchain."

2. Aptos: A high-performance blockchain built by former Meta engineers.

Aptos is an emerging blockchain project developed by a team of former Meta ###Facebook### engineers. The project aims to build a high-performance, scalable, and secure blockchain infrastructure to provide strong support for Web3 applications.

Latest Update: Aptos recently announced the completion of a $350 million funding round led by well-known investment firms such as Andreessen Horowitz and FTX Ventures. The project also launched the Aptos mainnet, allowing developers to deploy and run decentralized applications on it. Aptos employs an innovative parallel execution engine and a new consensus mechanism, promising to overcome the current performance bottlenecks in blockchain.

Market Impact: As a high-performance blockchain project created by a team of top engineers, the emergence of Aptos brings new development opportunities to the entire industry. Its high throughput and low latency characteristics are expected to drive more traditional applications to migrate to the blockchain, facilitating the large-scale implementation of applications. At the same time, the success of Aptos will inject new momentum into the development of blockchain technology.

Industry feedback: Crypto analyst Michael Venuto stated, "Aptos's technical architecture is very advanced and is expected to be a representative work of the next generation blockchain. Its parallel execution engine can significantly improve throughput, while the new consensus mechanism is also expected to achieve a better balance between security and decentralization." Well-known investor Rayne Steinberg, founder of Arca, also expressed optimism about Aptos's prospects, "The Aptos team has rich engineering experience and unique insights into blockchain performance optimization. I believe Aptos will bring new development opportunities to the entire industry."

( 3. Tensor: Pioneer of Decentralized AI Network

Tensor is a decentralized artificial intelligence network designed to provide a secure, private, and scalable computing infrastructure for AI models. The project was co-founded by a group of experienced cryptography and artificial intelligence experts.

Latest News: Tensor recently announced the completion of a $16 million financing round led by well-known investment institutions such as Placeholder Ventures and Bain Capital Crypto. The project also released the Tensor mainnet, allowing developers to deploy and run decentralized AI models on it. Tensor adopts an innovative decentralized computing architecture and incentive mechanism, which is expected to address privacy and scalability issues in traditional AI infrastructure.

Market Impact: As a pioneer of decentralized AI networks, the emergence of Tensor brings new development opportunities to the field of artificial intelligence. Its decentralized computing architecture ensures the privacy and security of AI models while also providing high scalability. This is expected to encourage more businesses and individual developers to join the AI field, promoting the rapid development of artificial intelligence technology.

Industry feedback: AI expert Andrew Ng stated, "Tensor is a very promising project that brings a new computing paradigm to artificial intelligence. The decentralized architecture can effectively solve privacy and scalability issues, which traditional AI infrastructure cannot achieve." Crypto investor Arianna Simpson also expressed optimism about Tensor's prospects, "Artificial intelligence is one of the most promising technologies of the future, and Tensor provides secure, private, and scalable infrastructure support for it. I believe this project will have a profound impact on the entire industry."

) 4. Kaito AI: A pioneer in Web3 data analytics and smart contract security auditing

Kaito AI is a company focused on Web3 data analysis and smart contract security auditing. The company leverages artificial intelligence and big data technology to provide comprehensive data analysis and security auditing services for crypto projects.

Latest Update: Kaito AI recently announced the launch of a brand new Web3 data analysis platform that can monitor transaction data, contract code, and other information on the blockchain in real-time, and conduct in-depth analysis through artificial intelligence models. At the same time, the company also launched a smart contract security audit service that uses AI technology to automatically detect vulnerabilities and security risks in contract code.

Market Impact: As a pioneer in the field of Web3 data analysis and security auditing, the emergence of Kaito AI has brought new development opportunities to the entire crypto industry. Its advanced artificial intelligence technology can effectively improve the accuracy and efficiency of data analysis, while also significantly reducing the cost and time of smart contract auditing. This is expected to encourage more enterprises and individual developers to join the Web3 space, promoting rapid growth across the industry.

Industry feedback: Crypto analyst Michael Venuto stated, "Kaito AI's data analysis and security auditing services are very advanced and can effectively address the pain points currently faced by the industry. Their use of artificial intelligence technology not only improves the efficiency of analysis and auditing but also significantly reduces costs." Well-known investor Arianna Simpson also expressed optimism about Kaito AI's prospects, "With the rapid development of the Web3 industry, data analysis and security auditing will become increasingly important. Kaito AI, with its advanced technology, is bound to take a leading position in this field."

5. Hyperbolic: AI-driven Web3 computing infrastructure

Hyperbolic is a company focused on Web3 computing infrastructure, aiming to leverage artificial intelligence technology to provide high-performance, scalable computing support for blockchain applications.

Latest Update: Hyperbolic recently announced the completion of a $16 million financing round, led by well-known investment institutions Polychain Capital, y Combinator, and others. The company also released its AI-driven computing engine, which can significantly enhance the computing performance and efficiency of blockchain applications. Hyperbolic employs an innovative distributed computing architecture and AI optimization technology, promising to address the current bottleneck issues in blockchain computing.

Market Impact: As a pioneer of Web3 computing infrastructure, the emergence of Hyperbolic brings new development opportunities for the entire industry. Its AI-driven computing engine can significantly enhance the performance of blockchain applications, which is expected to promote the migration of more traditional applications to the blockchain and facilitate large-scale application deployment. At the same time, the success of Hyperbolic will also inject new momentum into the application of artificial intelligence in the blockchain field.

Industry feedback: Blockchain expert Vitalik Buterin stated, "Hyperbolic's computing engine is very innovative, effectively addressing the bottleneck issues of blockchain computing with artificial intelligence technology. This will bring tremendous momentum to the entire Web3 ecosystem." Crypto investor Arianna Simpson also expressed optimism about Hyperbolic's prospects, saying, "Blockchain computing has always been a bottleneck in industry development, and Hyperbolic's solution will undoubtedly bring new development opportunities to the entire industry."

4. Economic Trends

1. The independence of the Federal Reserve is being questioned, and inflation expectations are rising.

Economic Background: The pace of economic recovery in the United States is slowing, and inflation rates remain high. The latest data shows that the core personal consumption expenditure price index ###PCE### rose by 4.7% year-on-year in May, exceeding the Federal Reserve's target level of 2%. The unemployment rate remains low at 3.6%, and the job market is still tight. GDP growth rate was only 1.3% in the first quarter, indicating insufficient economic growth momentum.

Important events: Federal Reserve Chairman Powell has recently faced criminal charges from allies of Trump, accusing him of perjury in Congress and questioning his independence. In addition, the renovation costs of the Federal Reserve headquarters have significantly exceeded budget, raising public concerns about its transparency. These events have intensified doubts about the independence of the Federal Reserve, potentially impacting the formulation and implementation of its monetary policy.

Market Reaction: Market participants are concerned that the independence of the Federal Reserve may be compromised, which could lead to insufficient measures in addressing inflation. The 5-year forward inflation swap rate has shown an upward deviation, indicating that market expectations for future inflation are rising. Investors are closely watching Powell's speech this week for guidance on policy direction.

Expert Opinion: Goldman Sachs analysts indicate that market participants generally believe that the risks to the independence of the Federal Reserve are rising. Columbia University economist Sargent pointed out that the independence of the Federal Reserve is crucial for maintaining its credibility, and any doubts could affect the effectiveness of its policies.

( 2. The U.S. fiscal outlook is worrying, Fitch has downgraded the industry outlook.

Economic Background: The recovery of the US economy is weak, and the fiscal deficit continues to expand. The deficit for the fiscal year 2023 reached 1.4 trillion dollars, and the debt-to-GDP ratio has climbed to 123%. High inflation has increased fiscal pressure, leading to continual government spending. The slowdown in economic growth may also drag down tax revenues, further worsening the fiscal situation.

Important Event: The international rating agency Fitch recently downgraded the outlook for 25% of U.S. industries to "deteriorating," attracting market attention. Fitch pointed out that policy risks, economic slowdown, and high interest rates will continue to pressure the U.S. credit outlook. The previously passed tax cuts and spending bills also highlighted the long-term challenges facing the fiscal outlook.

Market reaction: Fitch's rating adjustment has intensified concerns about the sustainability of U.S. fiscal policy. The bond market has experienced some volatility, with investors reassessing the risk premium of U.S. sovereign debt. The business community is also cautious regarding potential changes in tax policy.

Expert Opinion: Harvard University economics professor Romer pointed out that the expansion of the fiscal deficit will exacerbate inflationary pressures and limit the Federal Reserve's response options. Moreover, mounting debt may also affect the long-term economic strength of the United States. He calls for the government to take fiscal consolidation measures, control spending, and reform the tax system.

5. Regulation & Policy

) 1. The United States officially issued the "GENIUS Act", establishing the first federal regulatory framework for stablecoins.

The "GENIUS Act" was officially signed into effect on July 18, marking the first federal regulatory framework in the United States specifically targeting stablecoins. The act was jointly promoted by both parties, aiming to instill confidence, clarity, and institutional legitimacy in the $260 billion stablecoin market.

The main content includes: issuers must fully back stablecoins with high-quality liquid assets on a 1:1 basis; stablecoin issuers must undergo bank-level scrutiny and capital requirements; violators will face severe civil and criminal penalties. The bill establishes unified standards for the issuance and reserves of stablecoins, helping to enhance market transparency and investor protection.

Market participants generally welcome this. Major stablecoin issuers like Circle and Paxos have announced that they will fully comply with the new regulations. Circle CEO Jeremy Allaire stated that this is an important step for cryptocurrencies to go mainstream. However, some are concerned that overly strict regulations may hinder innovation.

Paul Veradittakit, a partner, pointed out that the bill marks the United States leveraging its opponent's weakest link—fear of losing control—to build its own moat. The implications of stablecoins extend far beyond imagination; this is the beginning of the United States granting a charter to the "New East India Company" of the 21st century.

2. The U.S. House of Representatives passed the CLARITY Act, clarifying the regulatory scope of the SEC and CFTC over digital assets.

The "CLARITY Act" was passed by the House of Representatives on July 20, clarifying the regulatory scope of the U.S. Securities and Exchange Commission (SEC) and the U.S. Commodity Futures Trading Commission (CFTC) over digital assets. The Act outlines the pathway for transitioning regulatory oversight from the SEC to the CFTC.

Specifically, the bill defines digital assets such as cryptocurrency as "digital commodities," regulated by the CFTC. However, if a digital asset is considered a security, it is regulated by the SEC. The bill also provides the CFTC with additional regulatory authority to oversee the spot market for digital commodities.

This legislation aims to end the long-standing regulatory power dispute between the SEC and CFTC, bringing greater regulatory clarity to the cryptocurrency industry. Industry insiders generally believe that the bill will benefit the development of cryptocurrencies, as the CFTC is seen as more friendly and inclusive than the SEC.

However, some individuals are concerned that the bill may exacerbate the power struggle between regulatory agencies. SEC Chairman Gary Gensler has previously stated that most cryptocurrencies should be considered securities. Meanwhile, CFTC Chairman Rostin Behnam advocates for a more lenient regulatory approach to cryptocurrencies.

3. South Korea plans to implement strict regulations on cryptocurrency exchanges' "short selling" services.

South Korea's financial regulatory agency plans to implement strict regulations on the "coin leasing" services of virtual currency exchanges, introducing regulations comparable to those in the stock market in the second phase of virtual asset legislation.

Currently, major exchanges such as Up and humb have launched services allowing investors to borrow up to 4 times the collateral value in virtual currency, effectively creating a trading structure similar to short selling in stocks. Given that 90% of the South Korean virtual asset market consists of individual investors, regulators are concerned that excessive leverage could pose serious risks.

Experts point out that this regulatory measure aims to protect investors' rights and prevent excessive speculation and systemic risks. However, some industry insiders are concerned that excessive regulation may stifle innovation and impact the development of the cryptocurrency industry in South Korea.

Financial technology expert Park Jae-hoon stated that regulation should keep pace with the times, balancing risk prevention with allowing space for the development of emerging technologies. He suggested that regulatory agencies could learn from the short-selling mechanisms of the stock market, establishing reasonable leverage limits and investor thresholds.

4. The UK is intensifying its crackdown on illegal cryptocurrency ATMs, reflecting a stricter regulatory stance.

The UK's Financial Conduct Authority (FCA) and the Metropolitan Police Service recently jointly seized 7 illegal crypto ATMs and arrested two suspects. This reflects the UK's increasing efforts to combat unlicensed cryptocurrency activities.

Therese Chambers, Director of Enforcement and Market Oversight at the FCA, stated that operating illegal crypto ATMs or exchanges will result in serious consequences. Currently, there are no legally operating crypto ATMs in the UK, and using such devices will only exacerbate crime.

Industry insiders believe that this move aims to maintain the stability of the financial system and protect public interests. Due to the lack of regulation, cryptocurrencies pose risks such as money laundering and tax evasion. By cracking down on illegal activities, it helps to curb criminals from using cryptocurrencies to evade regulation.

However, there are opinions that overly strict regulation may hinder the innovative development of the cryptocurrency industry. Cryptocurrency ATMs provide users with convenient cash exchange channels, and a complete ban may affect the user experience.

Ian Taylor, chairman of the UK Cryptocurrency Association, called for regulators to maintain communication with the industry and establish a clear and reasonable regulatory framework that not only mitigates risks but also leaves room for legitimate innovation.