Bank of Russia Blacklists 2,600 Crypto Wallets Linked to Suspected Scams
The Bank of Russia has added about 2,600 cryptocurrency wallet addresses linked to suspected illegal financial activity to a monitoring system used by banks and law enforcement agencies. According to the central bank’s first half 2026 review of illegal financial market activity, more than 1 billion rubles in cryptocurrency had been attracted through the identified addresses. The wallets were connected to companies, projects, individual entrepreneurs and other entities showing signs of unlawful financial activity. The move expands Russia’s use of blockchain transaction data within conventional compliance and enforcement systems, allowing financial institutions and authorities to assess client risk and investigate transactions connected to flagged addresses. Key Takeaways Bank of Russia Adds Crypto Wallets to Monitoring System The flagged wallet addresses were added to an information system available to banks, law enforcement agencies and other authorized bodies. The database is used for client risk assessments, financial investigations and broader anti-money laundering controls. This does not necessarily mean every transaction linked to one of the addresses is automatically proven to be criminal. Rather, the wallets are associated with entities the regulator says show signs of illegal financial market activity. The central bank also reported that banks applied restrictive measures to more than 500 payment details connected to suspected illegal operations during the first half of the year. Authorities initiated more than 330 administrative cases based on information supplied by the regulator, while access to more than 11,800 online resources connected to suspected illegal financial operators and pyramid schemes was restricted. Crypto Remains Common in Pyramid Schemes Cryptocurrency continued to feature heavily in suspected investment fraud. The Bank of Russia said more than 74% of the financial pyramids it identified during the first half of 2026 used crypto to attract funds. Other schemes relied mainly on foreign payment services or cash. Organizers used more than 940 websites, around 120 Telegram channels and more than 2,500 social media pages to reach potential victims. Many schemes promoted cryptocurrency investments, mining opportunities or investments in supposedly profitable data centers. Others offered digital tokens marketed as being linked to the price of physical assets such as gold. The regulator identified 929 entities showing signs of financial pyramid activity and another 379 suspected of illegally soliciting investments. Combined, pyramid and pseudo investment projects declined by about 44% from the first half of 2025. Illegal Crypto Lending Rises While suspected pyramid schemes declined, illegal lending moved in the opposite direction. The number of identified illegal lenders increased to 999 during the first half of 2026, compared with 467 during the same period a year earlier. Among the products identified were so called crypto loans. Some operators offered borrowers loans denominated in Tether’s USDT stablecoin or ruble loans calculated using a fixed crypto related exchange rate outside the formal financial system. The Bank of Russia said it continued to receive complaints connected to these services, while websites linked to illegal lending operations were repeatedly blocked and replaced by new domains. Russia Expands Crypto Compliance Oversight The latest wallet monitoring effort fits into Russia’s broader push to bring more digital asset activity under formal supervision. The country has been developing rules for crypto exchanges, brokers, custodians and other intermediaries while maintaining restrictions on the use of cryptocurrency as a domestic means of payment. At the same time, regulated crypto related products are gradually expanding for professional investors. Moscow Exchange, for example, has introduced indexes linked to assets including Bitcoin, Ethereum, Solana, XRP, Tron and BNB, although direct spot cryptocurrency trading is not part of its existing offering. The contrast reflects Russia’s broader approach: allowing selected digital asset activity within regulated channels while increasing enforcement against unlicensed operators, scams and suspicious payment flows. Separate Scam Campaign Uses Fake Concert Tickets The central bank’s report comes as Russian cybersecurity researchers continue to identify new fraud campaigns involving cryptocurrency. Security company F6 recently reported finding at least 10 fake websites impersonating ticket platforms for Kanye West concerts in Russia. Some of the sites requested payment exclusively in cryptocurrency, while others sought phone based transfers. F6 also identified several Telegram bots connected to the campaign. The incident illustrates how crypto continues to be used as a payment method in fraud schemes because transfers can be difficult to reverse once funds are sent. Conclusion The Bank of Russia’s decision to flag 2,600 crypto wallets shows how digital asset monitoring is becoming more closely integrated with traditional banking compliance and law enforcement systems. More than 1 billion rubles flowed into the identified addresses, while crypto remained the preferred fundraising method for the majority of suspected pyramid schemes detected by the regulator. At the same time, the data shows that the risk landscape is shifting rather than simply shrinking. Pyramid-related activity declined, but illegal lending doubled, and scammers continue to adopt new channels and payment methods. For Russian financial institutions, the expanded wallet database provides another tool for assessing suspicious transactions. For users, it reinforces the growing importance of dealing with verified platforms and treating investment schemes that demand crypto-only payments with caution.
Blockchain Association Backs Treasury’s Proposed GENIUS Act Rules for Stablecoin Issuers
The Blockchain Association has backed key parts of proposed federal customer identification rules for stablecoin issuers under the GENIUS Act, while calling for clearer definitions and better coordination across related compliance requirements. In a comment letter submitted on August 21, the crypto industry group responded to a joint proposal from the Treasury Department’s Financial Crimes Enforcement Network, the Office of the Comptroller of the Currency, the Federal Reserve, the Federal Deposit Insurance Corporation and the National Credit Union Administration. The proposed rules would implement customer identification program requirements for permitted payment stablecoin issuers under the GENIUS Act, which was signed into law in 2025. Key Takeaways Association Supports Primary Market CIP Rules The GENIUS Act requires permitted payment stablecoin issuers, or PPSIs, to maintain effective customer identification programs. The main issue addressed by the proposed rule is how broadly those identification obligations should apply. The Blockchain Association said it supports restricting the requirements to primary market relationships where a stablecoin issuer interacts directly with a customer, such as when issuing or redeeming tokens through an established account relationship. “BA also strongly supports the proposal’s decision to limit CIP obligations to primary-market relationships in which a PPSI interacts directly with a customer, rather than attempting to impose customer-identification obligations across downstream secondary-market activity.” Under that approach, everyday peer-to-peer transfers occurring after stablecoins have entered circulation would generally not create new identification obligations for the issuer. The association argued that issuers often do not control, custody or intermediate those secondary market transfers and may not know the parties involved. Group Calls for Clearer Regulatory Definitions Although the association broadly supports the proposal, it asked regulators to refine several definitions before adopting a final rule. The group highlighted the terms “account,” “customer” and “digital asset service provider” as areas where greater precision is needed. It recommended that one-off redemptions, activities unrelated to stablecoins and certain service provider relationships not automatically be treated as customer relationships under the rule. The concern is that overly broad definitions could pull transactions into the CIP framework even where an issuer does not have the kind of ongoing customer relationship contemplated by the GENIUS Act. The association also argued that regulators should avoid creating duplicative obligations across overlapping regulatory regimes. Stablecoin Issuers Should Have Flexibility in Verification The Blockchain Association also urged the agencies not to prescribe a single method for verifying customer information. Instead, it said permitted issuers should be allowed to use different verification approaches depending on their business models and risks. That could include electronic collection of customer data, reliance on other regulated institutions where appropriate and the use of digital identity tools. The broader aim is to maintain strong controls against illicit finance while allowing issuers to build compliance systems suited to blockchain-based payment products rather than simply copying traditional banking processes. Association Wants AML Timelines Coordinated Another major recommendation concerns implementation timing. The Blockchain Association asked regulators to align the effective date of the customer identification rules with other anti-money laundering, counter-terrorist financing and sanctions related requirements being developed under the GENIUS Act. The group said coordinated implementation would reduce operational strain on stablecoin issuers that may otherwise need to build separate compliance systems on different timelines. That request reflects a broader concern across the digital asset industry that fragmented rulemaking could increase costs and create inconsistent obligations even when the underlying policy goals are similar. The association said the final framework should preserve the balance between compliance and innovation envisioned by the legislation. “The GENIUS Act created a landmark framework for payment stablecoins. Implementation should preserve its goals: strong safeguards, workable rules, and room for continued innovation.” Conclusion The Blockchain Association’s response signals broad industry support for the federal government’s proposed approach to customer identification for stablecoin issuers, particularly its focus on direct relationships between issuers and customers. At the same time, the group is pushing regulators to narrow ambiguous definitions, preserve flexibility in verification methods and coordinate the rollout of CIP rules with wider anti-money laundering requirements. The final rules will be important in determining how much compliance responsibility stablecoin issuers carry once tokens move beyond the primary market. If regulators adopt the approach supported by the association, issuers would face clear identification duties when dealing directly with customers without being made responsible for every downstream blockchain transfer involving their stablecoins.
Moonwell Investigates Base Lending Issue After $8.7m Exploit
Japan is preparing to study a blockchain based settlement system that could eventually allow stock and Japanese government bond transactions to settle in real time and operate around the clock, according to a Nikkei report. The initiative is expected to bring together the Financial Services Agency (FSA), Ministry of Finance, Bank of Japan (BOJ) and private financial institutions. A study group is expected to develop an initial plan as early as the beginning of 2027, covering the system’s technical design, institutional responsibilities and implementation roadmap. If formally approved, the infrastructure could begin operating within several years and potentially reach broader implementation in the early 2030s. However, the project remains at the planning stage, and Japanese authorities have not announced a final decision to deploy the system. Key Takeaways Japan Targets Faster Stock and Bond Settlement Japan’s current securities infrastructure requires a delay between trade execution and final settlement. Stock transactions generally settle two business days after execution under a T+2 cycle, while Japanese government bond transactions typically settle on the following business day. The proposed blockchain system would seek to shorten that period substantially by bringing the transfer of securities and the corresponding payment closer together. For investors, that could mean proceeds from selling securities become available for reinvestment much sooner. Financial institutions could also face a shorter period of counterparty exposure between execution and final settlement. The planned study is expected to examine the blockchain architecture, how responsibilities would be divided among government agencies and financial institutions, and a roadmap for developing the infrastructure. According to Nikkei, the system could also eventually be extended to international remittances. However, faster settlement brings its own challenges. Market participants would have less time to secure the cash or securities needed to complete transactions, potentially creating new liquidity and operational requirements. BOJ Already Testing Blockchain Settlement The reported project would build on experiments already underway at the Bank of Japan. BOJ Governor Kazuo Ueda said in March that the central bank was testing how commercial banks’ current account deposits at the BOJ could be used for settlement through blockchain infrastructure. The work includes examining potential applications for domestic interbank transfers and securities settlement. One possible model involves tokenizing a portion of the central bank deposits that financial institutions already hold at the BOJ. Such an arrangement could support delivery versus payment settlement, where the securities and corresponding cash move simultaneously. That distinction is important because Japan’s reported plan should not be interpreted as moving its stock or government bond markets onto a permissionless cryptocurrency network. The precise blockchain architecture has not yet been decided and is expected to be one of the issues addressed in the 2027 development plan. Japan’s Financial Sector Expands Blockchain Experiments The proposal also comes amid growing blockchain experimentation across Japan’s traditional financial sector. In April, Japan Securities Clearing Corporation, which is owned by Japan Exchange Group, began a trial with Mizuho, Nomura and Digital Asset examining the use of Japanese government bonds as collateral through blockchain infrastructure. Japan’s private sector has also developed regulated tokenized securities platforms. Progmat, for example, has moved hundreds of billions of yen in managed tokenized securities onto dedicated blockchain infrastructure. Meanwhile, SBI Holdings and Startale are developing Strium, a blockchain aimed at supporting around the clock trading of tokenized securities. Japan’s major banks have also been experimenting with stablecoins and tokenized deposits for payments and settlement. These initiatives differ from the latest proposal because the reported government-backed study could eventually address infrastructure supporting mainstream stocks, government bonds and central bank money rather than individual tokenized products. Early 2027 Plan Could Clarify the System Several major questions remain unanswered. The study group would need to determine whether Japan should build a dedicated blockchain, connect existing regulated networks or integrate distributed ledgers with conventional market infrastructure. Governance, cybersecurity, privacy, interoperability and procedures for handling erroneous transactions would also need to be addressed. Around the clock settlement could additionally require banks, securities firms and infrastructure operators to maintain liquidity and operational support outside existing market hours. The early 2027 development plan is therefore likely to be the first major indication of how ambitious the project will become. Conclusion Japan’s reported blockchain settlement initiative could bring distributed ledger technology significantly closer to the core infrastructure of one of the world’s largest financial markets. The immediate objective is to study whether stocks and government bonds can move from existing T+2 and next day settlement cycles toward faster, potentially around-the-clock settlement, with the BOJ’s blockchain experiments providing an important foundation. For now, however, the project remains a proposal rather than an approved national settlement system. The development plan expected in early 2027 should provide greater clarity on the technology, participating institutions, testing process and timetable, while any early-2030s launch remains dependent on formal approval.
Chainalysis Says Global Crypto Taxable Activity Topped $457 Billion in 2025
Potentially taxable onchain cryptocurrency activity reached at least $457 billion globally in 2025, according to a new Chainalysis report, highlighting the scale of digital asset activity that may fall within tax reporting obligations. The United States accounted for an estimated $112.6 billion of the total, while North America led all regions with $134.6 billion. The European Union followed with $125.1 billion, and East Asia recorded $54.7 billion. Chainalysis said the estimate covers realized gains, income from activities such as mining, staking and lending, as well as crypto denominated payments across six major blockchains. It does not include trading and other activity conducted inside centralized exchanges, meaning the $457 billion figure represents a lower bound estimate rather than the full scale of potentially taxable crypto activity. Key Takeaways US Leads Countries in Potentially Taxable Crypto Activity The United States represented the largest individual share of the activity identified by Chainalysis, with an estimated $112.6 billion. Other major markets also recorded substantial totals. Germany accounted for about $24.1 billion, followed by China at $21 billion, the United Kingdom at $19.4 billion and India at roughly $19 billion. Chainalysis grouped taxable activity into several categories, including capital gains, income and payments. Income can include crypto earned through mining, staking, lending and other activities. The analysis also counted certain crypto denominated payments that may create tax obligations depending on the jurisdiction. The study focused on six networks: Bitcoin, Ethereum, Solana, TRON, BNB Smart Chain and Base. It excluded other blockchains and centralized exchange activity, so the actual volume of potentially taxable crypto activity could be considerably higher. CARF Covers Only Part of Onchain Activity One of the report’s main findings concerns the limits of the Organisation for Economic Co-operation and Development’s Crypto Asset Reporting Framework, known as CARF. Chainalysis estimated that transactions falling within CARF’s scope represented only about 14% of the potentially taxable onchain activity it identified. That leaves around 86% outside the framework’s direct coverage, including activity involving decentralized exchanges, peer-to-peer transfers, onchain income and payments. CARF was developed by the OECD to improve international tax transparency for crypto assets. It requires covered service providers to collect customer identity, tax residency and transaction information and report it to domestic tax authorities. Those authorities can then exchange the information with participating jurisdictions. Data collection under CARF began on January 1, 2026, in 48 jurisdictions, including the United Kingdom and countries in the European Union. International exchanges of information are expected to begin in 2027. DeFi Creates a Major Reporting Gap The gap identified by Chainalysis largely reflects CARF’s reliance on intermediaries. The framework is built around crypto service providers that facilitate transactions as a business. That works more easily for centralized exchanges and custodial platforms, where there is an identifiable entity that can be required to collect and report customer data. Decentralized finance is more complicated. Some DeFi protocols operate without a centralized intermediary or custodial relationship, making it less clear which entity, if any, should be responsible for tax reporting. As a result, transactions involving decentralized exchanges, wallet-to-wallet transfers and onchain income streams may remain outside automated reporting systems even when they create taxable obligations for users. That does not necessarily mean the activity is invisible. Chainalysis’ report demonstrates that blockchain analytics can still be used to identify and categorize significant amounts of onchain activity. Tax Authorities Could Rely More on Blockchain Analytics The findings suggest that automatic reporting systems alone may not provide tax authorities with a complete view of crypto activity. Even if CARF is fully implemented across participating countries, governments may still need blockchain analytics, exchange records and other data sources to identify taxable activity occurring outside traditional intermediaries. The scale of the numbers also shows why tax agencies are paying closer attention to digital assets. In some countries, potentially taxable crypto activity is significant relative to broader government finances. Chainalysis estimated, for example, that Nigeria recorded about $4.4 billion in taxable crypto activity in 2025, while Portugal recorded around $2 billion. Conclusion Chainalysis’ estimate of at least $457 billion in potentially taxable onchain crypto activity shows how large the tax reporting challenge has become as digital assets move across centralized and decentralized markets. CARF is expected to improve cross-border tax transparency, but Chainalysis’ finding that only 14% of the identified onchain activity falls within its scope highlights a substantial reporting gap. For tax authorities, the next challenge will be combining international reporting frameworks with blockchain analytics and clearer rules for decentralized platforms. For crypto users, the report is another sign that onchain activity is becoming increasingly visible to regulators even when it takes place outside centralized exchanges.
Evernorth Clears SEC Hurdle for Planned Nasdaq Listing
Evernorth Holdings has cleared a major regulatory step toward becoming a publicly traded XRP treasury company after the U.S. Securities and Exchange Commission declared its Form S-4 registration statement effective. The move allows Evernorth and its merger partner, Armada Acquisition Corp. II, to proceed with shareholder approval and other closing requirements for their proposed business combination. If completed, the combined company is expected to trade on Nasdaq under the ticker XRPN. Key Takeaways SEC Effectiveness Moves Evernorth Closer to Public Markets The effectiveness of the S-4 removes one of the major regulatory hurdles in Evernorth’s proposed combination with Armada Acquisition Corp. II. The filing includes detailed information about the transaction, financial disclosures, risk factors and the securities that would be issued as part of the deal. It registers up to 34,499,992 shares of Evernorth Class A common stock and warrants covering up to 11,499,992 additional shares. The SEC action does not amount to an endorsement of Evernorth, XRP or the transaction itself. It allows the process to advance to the next stages, including the shareholder vote and satisfaction of remaining closing conditions. Armada shareholders are expected to vote on the business combination at a special meeting on September 30. Public shareholders may also choose to redeem their shares, meaning the final amount of cash available to the combined company could depend partly on the level of redemptions. Evernorth expects the transaction to close in late Q3 or early Q4 of 2026 if shareholders approve the deal and other requirements are met. Evernorth Plans Active XRP Treasury Strategy Evernorth is positioning itself differently from companies that simply hold digital assets on their balance sheets. The company plans to actively deploy XRP across areas including lending, liquidity provision and other infrastructure connected to the XRP Ledger. Its broader objective is to increase the amount of XRP represented by each Evernorth share over time. Founder and CEO Asheesh Birla said the company expects blockchain based financial infrastructure to play a growing role in institutional markets. “We plan to enter public markets as blockchain utility continues to grow, and we believe institutional finance will increasingly be built on-chain.” He added: “Evernorth is designed to accelerate XRP’s role in that work.” The company has previously disclosed holdings of roughly 473 million XRP, positioning it to become one of the largest publicly traded vehicles centered on the asset if the merger is completed. Its investor group includes several prominent crypto and financial firms, including Ripple, SBI Group, Pantera Capital, Kraken, GSR and Arrington Capital. Nasdaq Listing Would Give Investors Another Route to XRP Exposure A completed transaction would provide public market investors with an indirect way to gain XRP exposure without purchasing or safeguarding the token themselves. Instead, investors would own shares of a company whose strategy is closely tied to the management and deployment of XRP. That model differs from direct cryptocurrency ownership and from exchange traded products because Evernorth intends to use its treasury actively rather than simply track XRP’s market price. The structure also introduces additional risks. The value of Evernorth shares could be affected by XRP prices, treasury management decisions, SPAC redemptions, operating expenses and the market’s willingness to assign a premium or discount to the company’s underlying digital asset holdings. Digital asset treasury companies have faced greater scrutiny in 2026 as some vehicles have traded closer to or below the value of the crypto they hold. Evernorth has also experienced volatility in the value of its XRP position, making its public market debut a test of investor demand for single asset treasury strategies. September Shareholder Vote Is the Next Major Step The SEC milestone moves Evernorth closer to the Nasdaq, but the transaction is not yet complete. Armada shareholders must still approve the merger, and both companies must satisfy remaining conditions before the combination can close. The September 30 vote will therefore be the next major event to watch. Shareholder redemptions will also matter because they could reduce the amount of capital available to the combined company. If the deal closes successfully, Evernorth is expected to operate as a Nasdaq-listed XRP treasury company under XRPN. Conclusion Evernorth’s effective S-4 marks meaningful progress toward its planned public listing and removes a major regulatory obstacle from the SPAC process. The next stage now shifts from SEC review to shareholder approval and transaction closing. If completed, the deal would create a large publicly traded XRP treasury vehicle backed by some of the crypto sector’s most established firms. Its longer term performance, however, will depend not only on XRP’s price but also on whether Evernorth can successfully execute the active treasury strategy it has outlined.