The creation of an EU-issued digital euro moved a step closer Tuesday after a key European Parliament committee vote.

The EP’s Economic and Monetary Affairs Committee (ECON) approved its position on the digital euro package with a 43–14 vote, according to an official announcement on Tuesday.

Fernando Navarrete Rojas, a member of the European Parliament (MEP), said the package “protects citizens’ freedom to choose how they pay,” adding that the digital euro would “complement cash, never replace it.”

The vote marks a key step in shaping the rules for the EU’s potential central bank digital currency (CBDC), as the European Central Bank (ECB) targets a 2029 digital euro launch.

Privacy and offline payments at core

Under the approved draft, the digital euro would be issued by the ECB and function both online and offline.

Online payments would use an account-based system, while offline payments would operate through local device storage, similar to cash in terms of user control.

“The offline functionality would be equivalent to using physical cash, as losing the device would mean losing the offline money with no refund possible,” the announcement read.

Source: ECB

The proposal includes privacy-by-design features, including technologies such as zero-knowledge proofs (ZKPs) to verify transactions without exposing personal data. “The ECB would not have access to personal identification data,” the announcement said.

Digital euro won’t pay interest

The draft also introduces holding limits to protect financial stability, with caps on how much digital euro individuals can hold. These limits would be set by the European Commission based on ECB recommendations and reviewed regularly.

The currency would not pay interest, and businesses would only be allowed to hold digital euros temporarily to accumulate incoming payments for up to 24 hours. Businesses would generally be required to accept the digital euro, with some exceptions for very small firms and self-employed operators who do not already accept digital payments.

Related: ECB signs standards deals to cut digital euro integration costs

Basic services such as account access and payments would be free, while additional services could carry capped fees for providers. Offline transactions would remain free under the proposal.

Wider rollout and institutional roles

The legislation also outlines a broader distribution model involving banks, payment providers and regulated crypto firms. Post offices and e-money providers could also distribute the digital euro across the eurozone.

Before launch, the ECB would need to finalize technical rules, run pilot tests and coordinate with payment providers. A rollout period of at least two years would follow approval of the final law.

Related: ECB official says stablecoins risk importing old market flaws

The latest approval marks clearing a key hurdle to rollout of digital euro after the ECB laid groundwork for a CBDC in 2020.

The project has faced repeatedly delays due to unfinalized legislation, with ECB Executive Board member Piero Cipollone projecting as recently as September that the digital euro would likely not launch until 2029.

EU consortium moves ahead with regulated stablecoin

Last month, Qivalis, a European banking consortium developing a regulated euro stablecoin, expanded to 37 member institutions after adding 25 new banks across 15 countries.

The new members include ABN AMRO, Rabobank, Nordea and Intesa Sanpaolo. The Amsterdam-based consortium is targeting a second-half 2026 launch, according to a statement shared with Cointelegraph.

“We are not merely building payment rails; we are ensuring that European principles around data protection, financial stability and regulatory rigour are embedded into the next generation of digital money,” said Howard Davies, chairman of Qivalis’ supervisory board.

The move comes as European institutions race to establish alternatives to US dollar-dominated stablecoins, which currently account for 98% of the market, according to CoinGecko.

“Europe does not have to choose between the digital euro and successful private payment solutions. We need both to work together,” MEP Rojas said in an email response to Cointelegraph’s query. “The agreement recognizes the right dual approach: existing standards and infrastructure should be reused wherever possible and, where new standards are necessary, they should be open and accessible to banks, payment providers and innovative solutions.”

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Euro-denominated trading accounts for only a small share of Binance’s activity, as the exchange faces uncertainty over its European licensing prospects under the Markets in Crypto-Assets Regulation (MiCA).

Euro (EUR) trading accounts for around 1% of Binance’s spot volume, CryptoQuant analyst Maartunn told Cointelegraph.

“Binance’s inflows remain globally distributed, which may limit the impact of potential MiCA-related setbacks,” Maartunn said, pointing to the exchange’s diversified user base across regions.

Source: CryptoQuant

The data comes as Greek regulators are reportedly preparing to reject Binance’s licensing application ahead of MiCA’s transitional deadline on July 1, a move that could complicate the exchange’s ability to serve EU residents.

Binance ranks among Europe’s biggest crypto exchanges

Even though EUR trading represents only about 1% of Binance’s global spot volume, the exchange still processes hundreds of millions of dollars in euro-denominated trades.

According to CryptoQuant data, Binance’s daily EUR-pair volumes have ranged from roughly $100 million to $250 million in 2026, with occasional spikes above $600 million.

Source: CryptoQuant

According to a December 2024 report by Kaiko, Binance, alongside Bitvavo, Kraken and Coinbase, accounted for more than 85% of all euro-denominated crypto trading volume.

Related: WhiteBIT secures MiCA license in Austria ahead of July 1 EU deadline

Unlike Binance, Bitvavo, Kraken and Coinbase are among the major exchanges that have already secured MiCA authorization, allowing them to offer services across the EU under the framework’s passporting regime.

83% of CASPs have yet to receive a MiCA license

Binance’s licensing uncertainty comes as many crypto asset service providers (CASPs) are still adapting to MiCA’s requirements.

According to estimates based on European Securities and Markets Authority (ESMA) data cited by market analyst Merlijn Geurds, only around 210 of more than 1,200 firms operating under pre-MiCA registration regimes have obtained full authorization under the new framework.

Source: Merlijn Geurds

Geurds told Cointelegraph the gap reflects the cost and complexity of compliance, which requires governance standards, compliance controls and operational safeguards that many smaller firms lack.

“The result is consolidation by design,” Geurds said, adding: “A smaller group of well-capitalized, licensed players gets a passport to all 27 states, while a long tail faces forced migrations or cutoffs.”

Cointelegraph contacted Binance for comment on the size of its European business and the potential impact of MiCA-related restrictions but had not received a response by publication.

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Two brothers accused of kidnapping a Minnesota family at gunpoint last year to steal $8 million in cryptocurrency pleaded guilty in connection with the armed robbery. 

Isiah Angelo Garcia and Raymond Christian Garcia, on Thursday, entered guilty pleas for Interference with Commerce by Robbery, facing a maximum of 20 years in federal prison, according to the US Attorney’s Office of the District of Minnesota. 

“The guilty pleas entered today reflect our commitment to holding the defendants accountable for the choices they made,” US Attorney Daniel Rosen said.  

Global crypto wrench attacks have skyrocketed in recent years. In February, CertiK found that the number of crypto-related assaults and kidnappings increased 75% in 2025 from the previous year. Estimated losses in the first four months of 2026 from such attacks have already reached $101 million. 

Garcia brothers steal $8 million in crypto

Prosecutors said on Sept. 19, 2025, the two brothers traveled to Minnesota from Texas to hold a victim and his family at gunpoint, forcing him to transfer cryptocurrency from his online accounts and hardware wallets. 

The ordeal left the victim’s wife and son held for nine hours in their family home, while the victim was taken to a family cabin about three hours away and was ultimately forced to transfer $8 million in cryptocurrency. 

Isiah Angelo Garcia (left) and Raymond Christian Garcia (right). Source: Waller County, Texas, Sheriff’s Office

Police were alerted to the kidnapping after the victim’s son was able to make an emergency call, which was answered by Washington County sheriff’s deputies. Deputies later found a rifle and a shotgun, which, along with surveillance footage and other evidence, connected the brothers to the burglary. 

Crypto attackers plead guilty 

In their guilty pleas, both defendants admitted to using firearms to threaten the victims in order to rob them. They have agreed to pay more than $8 million in restitution. Sentencing hearings have not yet been scheduled. 

The latest development adds a win for US prosecutors in a global fight against criminals who target crypto owners. 

Related: Accused attackers of Sandbox exec’s wife tried to flee via Uber

In May, US authorities unsealed an indictment against three men accused of stealing at least $6.5 million in a “violent robbery spree targeting cryptocurrency owners.” 

The robberies involved the three defendants allegedly posing as delivery drivers to force their way into residences and use violence to extract cryptocurrency from their victims. 

 The increase in global attacks has drawn the attention of the French government. 

During Paris Blockchain Week in April, Jean-Didier Berger, Minister Delegate to the Interior Minister of France, said his office has taken “preventive measures” against crypto wrench attacks, including launching a prevention platform that has drawn thousands of sign-ups.  

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In May, the European Commission opened a comment period, seeking feedback on regulations for the cryptocurrency and blockchain industries. 

The comment period will precede eventual revisions and additions to the Markets in Crypto Assets (MiCA) legislative framework. Some have already dubbed the expected new framework “MiCA 2.0.”

Katie Harries, director and head of policy for Europe at Coinbase, told Cointelegraph that there are several key areas where “refinements could help ensure the framework remains competitive in the next phase of digital asset regulation.”

With an updated version of EU crypto law, the crypto industry is looking for more regulatory clarity in DeFi, stablecoins and tokenization.

MiCA was just the first step

Full application and enforcement of MiCA rules began on December 30, 2024, with the first licenses issued in the first months of 2025.

While the legislative process was long and complex, the EU still managed to create a regulatory framework for crypto ahead of the United States. Per Harries, “MiCA helped set an early global benchmark for digital asset regulation and gave the EU a first-mover advantage.”

It represented an “important first move” for the EU which created a “a single, harmonised rulebook for crypto” among its member states. “It gave consumers greater protection and transparency, while providing businesses with the regulatory clarity needed to build, invest and grow across the bloc.”

Harries said that, for Coinbase, MiCA provided a foundation on which it can expand its business in Europe into “the next phase of adoption across both retail and institutional markets.”

Now, Brussels is looking to recalibrate its landmark legislation. The consultation is split into four parts:

Regulatory scope and definitions for crypto assets other than asset-referenced tokens (ARTs) and e-money tokens (EMTs)Requirements for EMTs, ARTs and their issuersDefining legal framework for crypto-asset service providers (CASPs)Topics that MiCA 1.0 didn’t cover e.g., DeFi and prediction markets

Stablecoin discussion has regulatory consequences

Per Catarina Veloso, director of regulatory and compliance at Notabene, part 2, which would affect stablecoins, is “longest and arguably the most politically charged section of the consultation.”

How stablecoins are used, be it as a mainstream retail payment instrument, a wholesale settlement rail, or a “complement to existing payment methods for cross-border payments,” could have a significant effect on how stablecoin policy is made.

“If stablecoins are treated mainly as crypto trading instruments, the focus is likely to remain on investor protection and market integrity. If they are treated as payment infrastructure, then redemption, liquidity, reserve management, operational resilience and supervisory reporting become much more central.”

What risks they carry “depend heavily on how they are used, at what scale, by whom, and in connection with which parts of the financial system.”

Harries said that Coinbase would like to see MiCA 2.0 “make euro stablecoins more competitive by recalibrating rules around reserves, rewards and the multi-issuance model.” Allowing a greater share of stablecoin reserves to be held in “high-quality sovereign assets could reduce risk without compromising safety.”

Another aspect is stablecoin rewards. Currently, EMT issuers are prohibited from offering interest. But, per Veloso, “this can weaken the competitiveness of euro-denominated stablecoins and push users either toward foreign-currency stablecoins or toward yield structures outside the regulated perimeter.”

Harries said that “MiCA should allow non-interest incentives such as cashback and loyalty programmes, which are standard features across payments and help drive competition and consumer choice.”

Bringing DeFi and prediction markets into the fold

Presently, MiCA does not cover CASPs that are fully decentralized and operate without any kind of intermediary. Veloso noted that, while it sounds simple, “decentralisation is rarely binary.”

To form an informed policy around DeFi, EU regulators must know how to assess whether a CASP is fully decentralized and “what indicators should matter: control over the protocol, governance rights, admin keys, front-end control, revenue capture, upgradeability, or the ability of identifiable persons to influence outcomes.”

According to Miroslav Đurić, a senior associate at Taylor Wessing, many CAPSs already connect their clients with DeFi platforms. But since these platforms are exempt from MiCA, regulators are now asking “whether CASPs should meet their fiduciary duty vis-à-vis clients by conducting due diligence over DeFi platforms that they make accessible to their clients.”

“The Commission appears to be ready to explore different approaches incl. some that might only permit CASPs to connect their clients with DeFi platforms that are certified (under some new certification regime).”

Prediction markets are also a hot topic currently considered in the EU. Currently there is no unified regulatory structure, and prediction markets are banned in some countries. 

The Commission is seeking comments on whether these offer any economic benefit for consumers, and whether they fall under MiCA or Markets in Financial Instruments Directive (MiFD).

Đurić said this will depend on the nature of the contracts themselves. “Depending on the event contracts available on the platform […] a platform operator can easily become subject to requirements stipulated under different, sometimes conflicting regulatory frameworks: ranging from MiFID II over gambling to MiCA regulatory framework.”

What’s next?

Crypto industry observers say they intend to remain in dialogue with Brussels throughout the process. Harries said that a new, effective MiCA will require “dialogue between industry, policymakers and regulators, learning from how the framework is working in practice and refining areas where greater clarity or flexibility can help support the next phase of growth across the region.”

The period for comment ends on Aug. 31, but according to Đurić, the total process could take years. 

“Given the level of complexity of the points raised in the consultation as well as the usual pace at which the EU legislative process moves […] it is hardly expectable that any concrete legislative proposals will be adopted before 2028.”

Binance’s faltering European Union Markets in Crypto-Assets Regulation (MiCA) license application in Greece has raised questions about whether the bloc’s central bank may have played an informal role in the process, despite not having formal authority over licensing decisions.

Even though MiCA assigns approval of crypto-asset service provider (CASP) licenses to national competent authorities (NCAs), lawyers told Cointelegraph that its wording does not prevent other EU institutions, including the European Central Bank (ECB), from communicating with those regulators during the review process.

“Nothing in the MiCA framework would prevent a third party like the ECB from offering its opinion to that national authority on Binance’s application,” David Lesperance, founder at Lesperance & Associates, told Cointelegraph.

The Big Whale reported on Wednesday, citing unnamed sources, that ECB President Christine Lagarde had signaled to Greek Prime Minister Kyriakos Mitsotakis that Binance was not welcome in Europe. The report followed a Reuters story on Tuesday that Greece’s market regulator was set to reject Binance’s MiCA application.

The reports surfaced less than two weeks before the end of MiCA’s transitional period on July 1, a deadline that will determine which crypto firms can continue operating across the EU under its licensing regime.

Who actually decides under MiCA?

Under MiCA, CASP licenses are granted by national regulators, not by EU-level institutions like the ECB. In Binance’s case in Greece, that authority sits with the Hellenic Capital Market Commission (HCMC). The exchange said in January that it had applied for a MiCA license in Greece.

“Our understanding is that the HCMC completed its review of the application and considered it compliant with MiCA requirements. Our understanding is also that the application was subject to review at the European Securities and Markets Authority (ESMA) level,” Binance wrote in a blog post following the Reuters report.

A Binance spokesperson told Cointelegraph that the company believed ESMA intended to advance the application and authorize it at an upcoming board meeting. The company did not respond to an additional request for clarification. The ESMA does not itself authorize CASP licenses under MiCA.

Yuriy Brisov, a lawyer at Digital & Analogue Partners, said the HCMC hasn’t published a decision on Binance’s application.

Related: BitGo courts crypto firms awaiting MiCA approval amid Binance licensing concerns

Brisov said MiCA “contains nothing that stops the ECB from talking to, advising, or sharing concerns” with a national regulator. However, he noted that ECB involvement is explicitly defined only in certain parts of MiCA, particularly rules governing stablecoin issuers, not CASP licenses such as exchanges like Binance.

Source: EUR-Lex

“That’s a concern that MiCA parks in the stablecoin chapter, not in the exchange-license one,” Brisov added.

Stablecoins raise the political stakes

The ECB has consistently voiced concerns about privately issued stablecoins, favoring tokenized financial infrastructure anchored by central bank money instead. According to The Big Whale, Lagarde’s reported intervention was tied to stablecoins.

Lagarde has argued that Europe should prioritize regulated settlement systems rather than rely on private stablecoins, while ECB Executive Board member Isabel Schnabel has warned that stablecoins could even reinforce US dollar dominance.

At the same time, market data underscores Binance’s position as the world’s largest stablecoin exchange and the dominant hub for stablecoin liquidity.

Source: Binance

According to CryptoQuant data reported in February, Binance held approximately $47.5 billion in USDT and USDC combined, representing about 65% of total stablecoin reserves across centralized exchanges. That figure was up from roughly $35.9 billion a year earlier.

Related: AllUnity debuts SEKAU, a fully reserved Swedish krona stablecoin

The Big Whale also reported that France could be Binance’s remaining route, though no formal French application had been filed.

ESMA and HCMC did not immediately respond to Cointelegraph’s requests for comment. The ECB and French regulator Autorité des marchés financiers (AMF) declined to comment.

Magazine: Crypto wanted to overthrow banks, now it’s becoming them in stablecoin fight

[Updated June 18 at 3:03 pm UTC: Updates with statement from Bybit beginning in the fifth paragraph.]

Crypto exchange Bybit has been added to the Monetary Authority of Singapore’s (MAS) Investor Alert List, a registry designed to warn consumers about entities that may be wrongly perceived as licensed or regulated by the financial watchdog. 

Bybit Fintech Limited and Bybit appeared on the MAS alert list on Wednesday, although the regulator did not provide a specific reason for their inclusion.

Bybit Fintech Limited, the corporate entity behind the exchange, appears on the MAS Investor Alert List website. Source: MAS

According to MAS, the Investor Alert List identifies entities and investment offers that may create the false impression of being licensed, authorized, regulated or registered by the authority, or whose investment offerings may be mistakenly viewed as having received MAS approval.

Based on publicly available information, Bybit is not licensed or regulated by MAS.

“Bybit is aware that Bybit Fintech Limited has been included on the Monetary Authority of Singapore’s (MAS) Investor Alert List and is engaging MAS to better understand the basis for this listing,” the company said in a social media post.

Although Bybit was founded by Singaporean entrepreneur Ben Zhou, the exchange does not operate in the city-state. Singapore is listed among the company’s “Service Restricted Countries” on its website, meaning users in the jurisdiction are not permitted to access its services.

“Bybit has consistently engaged openly and constructively with MAS and has been maintaining measures designed to prevent access by Singapore users,” it said in the post.

Related: SBI Holdings targets majority stake in Singapore crypto exchange Coinhako

Singapore maintains strict oversight of crypto sector

Singapore has cemented its position as a leading crypto hub, ranking among the world’s top jurisdictions for decentralized finance and institutional digital asset services in Chainalysis’ 2025 Global Crypto Adoption Index. Retail crypto adoption, however, ranked significantly lower.

The MAS has continued to take an assertive approach to industry oversight. In May, the regulator revoked the Major Payment Institution license of crypto liquidity provider Bsquared Technology after uncovering what it described as serious regulatory breaches, including weaknesses in risk management and conflict-of-interest policies. 

MAS also said the company had provided false or misleading information on multiple occasions, from its initial license application through a subsequent inspection.

Separately, Singapore police charged former Hodlnaut CEO Zhu Juntao in May with six counts of fraud for allegedly misleading customers about the crypto lender’s exposure to the 2022 Terra ecosystem collapse.

Hodlnaut, a Singapore-based crypto lending platform that once served tens of thousands of users, suspended withdrawals in August 2022 following the Terra implosion and was later ordered to liquidate.

The regulator placed Binance.com on its Investor Alert List in 2021, The Straits Times reported at the time. However, a search on Wednesday of the list did not show any mention of Binance among 910 records in the query.

Related: Singapore Gulf Bank adds stablecoin mint and redeem for 24/7 settlement

Breach of National Financial Laws

The Bank of Ghana has issued a directive ordering regulated financial institutions to immediately halt operations that support unauthorized foreign currency wallet services offered by cryptocurrency platforms.

According to the central bank, several cryptocurrency platforms operating in Ghana have been offering digital wallet arrangements denominated in foreign currencies, primarily U.S. dollars. To keep these services running, the platforms have relied on integration with the local banking system, using payment channels including direct bank transfers, payment cards and other traditional local payment channels. The Bank of Ghana expressed deep concern over these setups, stating that the crypto platforms behind them have not been authorized to conduct such activities.

In a June 12 notice, the central bank clarified that facilitating foreign-currency-denominated digital wallets involves financial mechanisms that require formal authorization under existing Ghanaian legislation. Specifically, these arrangements trigger compliance mandates under the Payment Systems and Services Act of 2019 and the Foreign Exchange Act of 2006.

The Bank of Ghana argues that because crypto platforms lack these approvals, the infrastructure supporting them is illegal under current banking guidelines. The central bank’s regulatory crackdown targets the domestic institutions that make these cryptocurrency transactions possible.

Effective immediately, the directive applies to banks, specialized deposit-taking institutions, electronic money issuers and payment service providers. They are strictly prohibited from establishing or maintaining any arrangements that facilitate the funding, operation and settlement of these unauthorized fiat wallet systems.

“Institutions that currently provide any banking, payment, card acquiring, settlement, or related services in support of such arrangements shall take immediate steps to discontinue such support,” the central bank warned.

The Bank of Ghana closed its notice with a reminder that the order is mandatory. Financial institutions that fail to cut ties with these crypto dollar-wallet providers will face immediate, unspecified supervisory or enforcement actions from the regulator.

For businesses looking to align with national registration guidelines or seeking technical clarity on compliance, the central bank has designated a dedicated inquiry channel through its virtual asset desk.

New Framework Demands Quantitative Data

The Dubai Virtual Assets Regulatory Authority (VARA) has published new guidance aimed at tightening financial crime defenses across the region’s booming digital asset sector. Drawing from insights gathered during the regulatory body’s 2026 Business Risk Assessment thematic review, the guidance underlines the United Arab Emirates (UAE)’s strategic focus on shedding any remaining loopholes that bad actors could exploit within its crypto ecosystems.

Under the updated framework, crypto businesses operating in Dubai must maintain a fully documented, data-driven business risk assessment that integrates quantitative business data into actual day-to-day risk-scoring models. The rules require virtual asset service providers to thoroughly map and continuously evaluate danger areas, such as the specific profile of their customer base. Providers must evaluate geographic exposures, including strict and immediate integration of Financial Action Task Force (FATF) high-risk and blacklisted countries.

The guidance mandates that the risk assessment be refreshed at regular intervals no longer than every three months, or immediately upon any major shift in operational structure or product line. It also mandates separating the risk assessment of proliferation financing and targeted financial sanctions, rather than bundling them into generalized money laundering.

Firms must formally document and account for risks stemming from emerging tools, specifically highlighting artificial intelligence (AI)-enabled operations and anonymity-enhanced transactions. Companies must also demonstrate to the regulatory authority that findings directly dictate resource allocation and everyday compliance enforcement.

By adopting this framework, UAE authorities are demonstrating a pivot away from purely punitive measures toward an active and systematic risk mitigation. By clarifying these standards, the authority expects compliance officers, senior managers and board members to be fully aware of their firm’s residual risk ratings.

Notably, the guidance acts as an operational mirror to broader federal shifts in the UAE, such as the recently published National Risk Assessments. For crypto firms, the message from regulators is unwavering: Innovation will continue to be heavily supported, but only if it is backed by world-class, data-verified financial integrity.

Bitbank Draws the Line

The exchange posted a formal notice citing Japan’s longstanding gambling prohibitions. Bitbank said it would move to suspend any account where deposits or withdrawals connected to prediction market services, or services suspected of being related to them, are detected.

The suspension covers all account functions without exception.

Affected users would lose:

Login access Crypto asset deposits and withdrawals Japanese yen withdrawals All buying and selling of crypto assets

Bitbank also stated it would not be responsible for damages resulting from account suspension measures.

Why Japan Treats Polymarket as Gambling

Polymarket operates as a decentralized event-contract platform where users stake cryptocurrency, typically USDC, on outcomes such as election results, economic indicators, or sports events.

Under Japan’s Penal Code, Article 185, gambling is defined as staking something of value on an uncertain real-world outcome. The narrow exception covers only trivial, non-monetary social bets. Crypto-settled event contracts do not qualify.

The National Police Agency has stated explicitly that accessing and participating in online gambling operated legally abroad remains a crime for Japanese residents. That guidance applies regardless of how a platform labels its product.

Prediction markets hold no authorization under Japan’s Financial Instruments and Exchange Act, and the Financial Services Agency has issued no specific guidance creating a legal path for them.

Polymarket Already Blocks Japan

Polymarket has geoblocked its web frontend for Japanese IP addresses, placing Japan among approximately 34 restricted jurisdictions. The platform explicitly prohibits VPN workarounds as a Terms of Service violation.

Rather than operate in legal uncertainty, Polymarket has appointed a Japan representative and is lobbying for regulatory authorization. The company is targeting government approval around 2030.

What Suspension Means in Practice

Bitbank’s notice specifies a full account freeze, not a partial restriction. A suspended user cannot log in, move funds, convert assets, or withdraw yen. The exchange offered a limited remedy for mistaken suspensions: users not using prediction market services can submit an inquiry form for review.

That carve-out matters because automated detection based on counterparty wallet addresses can sometimes flag unrelated transactions.

Criminal Exposure Remains Real

Japanese residents who participate actively face more than account inconvenience. Criminal penalties under Article 185 include fines of up to 500,000 yen. Habitual activity carries heavier sanctions. Enforcement has intensified since 2025 amendments to Japan‘s Basic Act on Countermeasures Against Gambling Addiction, which specifically targeted illegal online gambling and produced record enforcement actions.

No large-scale enforcement targeting Polymarket users specifically has been widely reported as of mid-2026, but the legal framework puts active users at ongoing risk.

The Broader Picture

Japan’s gambling restrictions trace to Meiji-era law and remain tightly controlled. The government authorizes public horse racing, bicycle racing, and motorboat betting, plus government-operated lotteries. Online gambling outside those channels remains broadly prohibited.

Domestic workarounds exist, including points-based prediction models that decouple participation from direct cash payouts, but fully decentralized crypto-settled prediction markets face a steep path to legalization.

Bitbank’s notice makes clear that Japanese users should treat any connection to Polymarket or similar platforms as an account-level risk, effective immediately.

Brazil’s Congress Moves To Limit State Control Over CBDCs

A bill that seeks to reduce the powers of the Brazilian state if a central bank digital currency ( CBDC) is approved passed the Economic Development Committee of the Chamber of Deputies in a revised form.

The project, based on Bill 4212/25, originally introduced by Deputy Bia Kicis and modified by rapporteur Lafayette de Andrada, seeks to limit the powers of the Central Bank of Brazil and other financial institutions linked to a future CBDC to protect economic freedom, privacy, and citizens’ security.

The law establishes that a digital currency issued by the central bank cannot substitute for paper money, cannot be forced as legal tender, and cannot be used as an instrument of political or ideological surveillance.

Furthermore, in its fifth article, the legislator stresses that governing bodies must ensure that “digital currency does not result in financial exclusion, always guaranteeing alternatives accessible to the population without access to digital media.”

Bicis states that while the creation of an official digital currency, like Brazil’s drex, “can bring important benefits, but it also raises legitimate concerns regarding privacy, individual freedom, and the security of citizens,” explaining that international experiences indicate these can be used for mass surveillance and transaction monitoring.

The project comes at a time when the central bank is reassessing the reach of its drex CBDC project, whose reach was significantly reduced due to privacy concerns. Nonetheless, there are still concerns about the effects of full adoption of a digital currency and the problems it would cause for less tech-savvy citizens who rely on cash for their day-to-day expenses.

While the project still has to be approved by both chambers and obtain presidential sanction, its advance shows that there is real interest in establishing controls over a hypothetical CBDC and its contentious use by the Brazilian government.