10th October

You can read the last “This week in crypto” here.

Gemini, the exchange founded by the Winklevoss twins, has launched Gemini Intergalactic Australia to serve the domestic market with full regulatory compliance. The new entity has registered with AUSTRAC as a digital currency provider, which allows it to operate under Australia’s financial oversight framework. This move gives it credibility and trust among local users who have been wary of offshore, unregulated exchanges.

Australia has one of the highest crypto adoption rates in the world, with surveys showing around 30 per cent of adults having used or held crypto. Gemini can reduce friction, offer local fiat on‑ramps, improve customer support, and better integrate with Australian banking infrastructure by creating a local presence. It also positions Gemini to compete more directly with established homegrown exchanges like Independent Reserve and CoinSpot.

The exchange’s Australian offering includes wallet services, trading pairs in AUD and other global assets, and compliance features such as KYC, AML, and real‑time transaction monitoring. It is also partnering with local custodians to maintain strong security and compliance assurance for institutional clients.

Strategically, Gemini’s expansion is consistent with a trend of global exchanges localising operations in high-growth jurisdictions. Local entities need to absorb regulatory risk and customer preferences better. It also underscores that exchanges see Australia as an important hub in the Asia‑Pacific crypto infrastructure landscape.

S&P Dow Jones Indices has introduced a new index called Digital Markets 50, combining 15 major cryptocurrencies with 35 crypto‑adjacent stocks. The idea is to give investors a balanced exposure across digital assets and traditional blockchain infrastructure equities. Each component is capped at 5 per cent to ensure no single asset dominates the index.

To bridge equities markets and blockchain, the index will be tokenised via Dinari’s dShares platform. Investors may, therefore, gain on‑chain access to the same diversified index. This structure allows a regulated crypto and stock exposure blend in one product.

Rebalancing is scheduled quarterly, and the index will follow standard S&P governance, liquidity and eligibility criteria. That gives institutional investors comfort that the index design is professional rather than speculative.

This launch may mark a turning point in how institutional capital perceives crypto. Rather than picking individual coins or stocks, diversified indices may help reduce idiosyncratic risk and attract capital from investors wary of picking winners. It could lower barriers to entry for firms wanting exposure to the crypto economy without direct holdings of volatile tokens.

The controversial stablecoin A7A5, linked to Russia’s Promsvyazbank and registered through old Vector in Kyrgyzstan, has reportedly transacted more than $6 billion since August—even amid US and global sanctions. Observers say the stablecoin has been “cleansed” by destroying token histories to break on‑chain traces to previously sanctioned wallets.

The scheme underscores a broader concern: that state‑aligned actors may continue to exploit crypto infrastructure to evade sanctions. A7A5’s rapid reissuance of tokens has effectively severed links between wallets used to transact newly sanctioned coins and fresh tokens.

Blockchain analysts warn that this activity could erode trust in the enforceability of sanctions regimes. If tokens can be “laundered” on‑chain with minimal traceability, enforcement may struggle to follow financial flows across jurisdictions.

The incident highlights the importance of collaboration between regulators, exchanges and blockchain analytics firms. More robust tracing, KYC enforcement, and token design constraints may be needed to maintain the integrity of sanctions and finance rules. For now, A7A5 represents one of the boldest examples of crypto being used in geopolitical finance strategy.

After a strong run earlier in the week, crypto markets have entered a cooling phase. According to market reports, Bitcoin slipped about 1 per cent to $121,830 over 24 hours as traders locked in gains and reacted to a stronger US dollar. Other major assets have also retreated—Ethereum fell 3.6 per cent, XRP declined 2.4 per cent, and Solana dipped by 0.3 per cent.

Over the week, Bitcoin’s once robust gains have moderated, with net positive movement pared down to around 1 per cent. That suggests the rally may have attracted short‑term traders who exited on peaks. Market sentiment is shifting toward caution as macro data, regulatory signals and liquidity flows are scrutinised more heavily.

Analysts point to a combination of profit‑taking, a stronger dollar, and general market jitters as contributing factors. The dollar index reportedly climbed 1 per cent, draining momentum from risk assets. Some traders also cite dwindling fresh capital inflows and questions about valuation caps for crypto at these levels.

While the correction is mild rather than sharp, it reminds us of the volatility inherent to crypto markets. The pause may offer breathing room for consolidation before the next leg. If macro cues turn favourable, the market could resume its upward direction. But for now, participants are more careful, watching each data point more closely.

This week brought a diverse mix of developments across the crypto landscape, reflecting both innovation and complexity. Gemini’s decision to establish a formal local presence in Australia shows how exchanges are adapting to regulatory expectations while tapping into high‑adoption markets. At the institutional level, S&P’s new blended index may help traditional investors enter crypto with greater confidence, offering a bridge between token assets and equity infrastructure.

Meanwhile, geopolitical tensions once again collided with the world of decentralised finance, as Russia‑linked A7A5 stablecoin flows raised concerns about how blockchain can be exploited to sidestep sanctions. This has sparked renewed calls for better tracking, enforcement, and regulatory cooperation. As for markets, the recent rally appears to be taking a breather, with traders eyeing macro indicators and profit levels carefully. Bitcoin’s pause around the $121k mark reminds us that price momentum alone rarely tells the whole story.

Looking ahead, eyes will be on whether consolidation holds, or if a new phase of market direction emerges in response to economic data, global politics, or further institutional entry. Crypto may still be young, but its intersections with finance, regulation, and society are growing more complex each week.

Stay tuned for more updates, and check back next week for the latest market movements, adoption news, and the stories shaping the digital asset world.

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