Traditional Finance Embraces Cryptocurrency (Issue 1 · Week 29, 2026)

01Event Overview

On July 8, 2026, AscendEX announced its closure due to the lack of EU MiCA authorization and failed fundraising efforts, exposing the compliance risks and fragile capital structures of exchanges. Around the same time, Wisconsin and New York State filed criminal charges against Circle for refusing to freeze fraudulent assets, sparking a fierce debate over the technical architecture of stablecoins and their legal obligations. Additionally, giants such as Samsung and Figure took advantage of the bear market to acquire licensed institutions at low prices, accelerating the transformation of crypto infrastructure from an informal sector to a more institutionalized one.

02Course of the incident

• [2026-06-14] Arbitrum plans to develop ZK settlement and compliance tools to explore technical pathways for compliance.
• [2026-06-15] Binance’s prospects for European compliance are said to depend on the approval process in France, with regulatory uncertainties persisting.
• [2026-06-16] Trace Finance completed a $32 million funding round aiming to build a compliant payment bridge for stablecoins in Latin America.
• [2026-06-18] WhiteBIT obtained Austria’s MiCA license, entering the countdown phase for compliant operations across Europe.
• [2026-06-26] Zuckerberg pushes Meta to enter predictive markets, but compliance concerns remain unresolved.
• [2026-07-01] AscendEX announced it would shut down and suspend withdrawals due to lack of EU MiCA licensing and failed fundraising.
• [2026-07-02] New regulations in Taiwan emphasize bank-centered systems, with USDC potentially replacing USDT thanks to its compliance advantages.
• [2026-07-08] As AscendEX ceased operations due to compliance issues, analysts noted a funding gap of several million dollars in hot wallets, putting users at risk of partial or no refunds.
• [2026-07-08] Wisconsin and New York State filed criminal charges against Circle for failing to freeze fraudulent assets, triggering a crisis regarding stablecoin compliance.
• [2026-07-09] Five acquisitions over the past month reveal changes in the industry, with giants like Samsung and Figure acquiring licensed firms at low prices to accelerate the institutionalization of crypto infrastructure.
• [2026-07-10] The implementation of EU MiCA regulations has spurred the rise of compliant stablecoins. EURC issued by Circle obtained a French license, with both on-chain activity and new address counts reaching four-year highs.
• [2026-07-10] Gate US acquired a currency transmission license in Florida, bringing its total state-level licenses to 36 and expanding its compliant operations to 47 U.S. jurisdictions.
• [2026-07-10] Polymarket applied to the NFA for a futures commission merchant license through an affiliated company, seeking to offer compliant margin trading services.
• [2026-07-13] Robinhood Chain focused on RWA but was overtaken by the CASHCAT token; its CEO leveraged this situation to boost the token’s market value to $200 million.
• [2026-07-13] Japan’s prime minister has supported Web3 for three consecutive terms. SBI invested nearly $500 million in full-chain development, while Rosen piloted stablecoin payments to create a zaibatsu-level compliant ecosystem.
• [2026-07-13] Progmat, a subsidiary of Mitsubishi UFJ, migrated $3 billion worth of securities tokens to Avalanche, marking a shift from pilots to actual deployment of RWA solutions.
• [2026-07-14] The Ethereum Foundation team founded EthSystems, a company dedicated to developing Ethereum privacy and compliance technologies for banks and asset management firms.

03Impact Analysis

04Impact Analysis

05Market Prices

The compliance process has led to a polarization in asset valuations. On one hand, traditional giants are taking advantage of low prices during bear markets to acquire licensed institutions, accelerating the industry’s transition from an unregulated environment to a more institutionalized one. On the other hand, speculative assets such as CASHCAT have seen their market value soar to $200 million thanks to a cold launch via the Robinhood Chain. The price of the mainstream asset XRP is currently $1.11, with a 7-day increase of +1.6%, and a comprehensive rating of 54, indicating a neutral to stable market sentiment. However, compliance pressures have also caused some platforms to face funding shortages; for example, AscendEX was shut down for failing to meet MiCA standards, resulting in millions of dollars in shortfalls in its hot wallets.

06Regulatory Responses

Global regulatory frameworks are being implemented at an accelerated pace, with compliance becoming crucial for survival. The enforcement of Europe’s MiCA regulations has spurred the rise of compliant stablecoins. EURC, issued by Circle, has obtained a license in France, with both on-chain activity and the number of new addresses reaching new highs in four years. In the United States, Gate US has secured a money transmission license in Florida, expanding its compliance footprint to 47 jurisdictions; Polymarket has applied for a futures commission merchant license to offer margin trading in compliance with regulations. Japan is investing nearly $500 million through tax reforms and support from SBI to build a compliance framework on par with that of conglomerates. Conversely, Circle has faced criminal charges in Wisconsin and New York for refusing to freeze fraudulent assets, highlighting the tension between the technical architecture of stablecoins and legal obligations.

07Ecological Impacts

The tokenization of RWA (Real World Assets) has entered the practical application phase. Progmat, a subsidiary of Mitsubishi UFJ, has migrated $3 billion worth of securities tokens to Avalanche, utilizing subnet architectures to balance regulation and efficiency. LayerZero and Centrifuge are addressing the conflict between compliance requirements and speed in the $33 billion RWA market through their hub-and-spoke models. At the infrastructure level, the Ethereum Foundation’s team has established EthSystems to focus on developing privacy-compliant technologies for banks and asset management firms. Brazil’s B3 exchange has introduced real-time crypto options denominated in reals, creating a risk management platform that does not require custody. These initiatives signal that the development of crypto infrastructure is shifting from pure technological competition to the creation of financial infrastructure that emphasizes both compliance and efficiency.

08Subsequent focus areas

09Key Areas for Ongoing Monitoring

1. Jurisdictional Conflicts Over Stablecoins: Continuously track the developments in the criminal charges filed by Wisconsin and New York states against Circle for refusing to freeze fraudulent assets. If regulators force stablecoin issuers to modify their technical architectures to facilitate law enforcement asset freezes, it will directly undermine the trust foundation of decentralized finance. There is also a need to be vigilant about potential liquidity crunches caused by soaring compliance costs.

2. Scale of RWA Tokenization and Compliance Implementation: Monitor the on-chain activity and legal disputes following Progmat, a subsidiary of Mitsubishi UFJ,’s migration of $3 billion worth of securities tokens to Avalanche. If traditional financial institutions face allegations of regulatory arbitrage or technical failures within these subnet architectures, it may slow down the adoption of cross-chain solutions like LayerZero in the $33 billion RWA market.

3. Compliance Licensing for Exchanges and Risks of Closure: Pay close attention to whether Gate US, after obtaining licensing in Florida, will face new state-level reviews regarding its compliance framework covering 47 jurisdictions in the U.S. At the same time, be wary of the ripple effects resulting from the closure of platforms like AscendEX due to failure to meet MiCA standards. If more platforms encounter issues such as shortfalls in hot wallet funds or delays in withdrawal approvals, it will further erode users’ trust in centralized custody services.

4. Regulatory Developments in Derivatives Compliance: Keep an eye on Polymarket’s efforts to apply for a futures commission merchant license from the NFA and seek approval from the CFTC to amend rules to support non-full-margin trading. If U.S. regulators tighten regulations on margin trading, it may force prediction market platforms to adjust their business models, impacting their compliance progress.

10Related Reads

1. “Compliance Pressures Force Platform Shutdowns; Millions in Shortfall for Hot Wallets”
2. “Refusing to Freeze Assets: 380,000 People Faced Criminal Charges as Stablecoin Compliance Crisis Erupts”
3. “Valuation Cut by 90%; Giants Seize Compliance Licenses Amid Bear Market”
4. “Half a Year of Preparation for Compliance Chain, Yet Triggered a 200 Million Dollar Market Value Surge Thanks to a Cat”
5. “MiCA Takes Effect, Sparking Compliance Wave: EURC’s On-Chain Data Reaches Four-Year High”
6. “Gate US Gets Florida Approval; U.S. Compliance Coverage Expands to 47 Jurisdictions”
7. “Polymarket Applies for U.S. FCM License to Offer Compliant Margin Trading”
8. “Major Players Back It Up; SBI Invests 500 Million, Rosen Launches Services: Japan Takes the Lead in Seizing Compliance Benefits”
9. “$3 Billion in Assets On-Chain: Japan Sets New Benchmark for Compliant Tokenization”
10. “$33 Billion RWA Market: LayerZero and Centrifuge Solve the Paradox of Compliance Speed”
11. “Ethereum Foundation Team Founds Privacy-Compliant Company EthSystems”
12. “Brazilian Exchange Introduces Crypto Options: A New Paradigm for Local Compliant Derivatives”