4th July

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

Turkey’s Ministry of Treasury and Finance has unveiled a suite of regulations designed to tackle money laundering through cryptocurrency, particularly in relation to illegal betting and fraud. A Finance Minister announcement via X confirms the introduction of waiting periods of 48 hours for most crypto withdrawals and 72 hours for first-time withdrawals if the Travel Rule is not applied. Users will also face daily stablecoin transfer limits capped at $3,000 and a $50,000 monthly allowance. Platforms that fail to enforce these rules risk administrative, legal, and financial penalties.

These measures require crypto asset platforms to collect comprehensive transaction data — including source, purpose, and user identity — as the foundation for compliance. They echo FATF-style risk-based approaches and reiterate mandatory Know Your Customer (KYC) and transparent auditing protocols. Turkey aims to strike a balance: stifling illicit financial flows without obstructing legitimate crypto usage. Lawful users engaged in regulated activities, such as arbitrage or liquidity provision, may access expanded transfer limits if platforms enforce full Travel Rule standards.

In context, Turkey ranks fourth globally in retail crypto adoption, with an estimated 20% of adults holding digital assets. These regulations may prompt some less compliant platforms to exit the market. However, early signals indicate robust platform adherence, as many are upgrading AML systems in time for the July 1 rollout. The government's strategy reflects a growing trend of countries imposing crypto oversight without banning private holdings.

Turkey's regulatory shift is significant for regional dialogue, potentially influencing jurisdictions across the Middle East and Southern Europe. As jurisdictions implement stronger crypto oversight, global regulators may work to standardise Travel Rule enforcement and stablecoin controls — a move that could strengthen Turkey’s financial integrity.

Breaking news from Europe: Germany’s financial regulator, BaFin, has granted a licence to AllUnity — a joint venture led by Deutsche Bank’s asset manager DWS — to issue a MiCA-compliant euro-pegged stablecoin named EURAU. The token is scheduled to launch in July, built on Ethereum and other chains.

This marks a major leap for European tokenisation efforts. Under MiCA, EURAU will operate with full proof-of-reserves, strict audit routines, and secure custody arrangements from partners like Galaxy and Flow Traders. The BaFin-backed stablecoin is expected to streamline cross-border payments, support FX liquidity, and serve as compliant collateral across DeFi markets.

AllUnity’s launch sends a powerful signal to European financial institutions: regulated stablecoins can coexist with traditional finance. Analysts expect institutions across the continent to follow suit, taking confidence from Germany’s robust legal framework. The rollout aligns with similar moves by Société Générale, which recently unveiled a dollar-backed stablecoin.

As Europe puts MiCA into effect, Germany demonstrates that sovereign-backed, fully regulated stablecoins can offer both security and innovation. AllUnity aims to position itself as the euro-region benchmark token, and may open doors for wider Eurozone adoption of blockchain payment infrastructures.

Ripple has taken a bold step by applying for a national bank charter and a Federal Reserve Master Account, aiming to integrate directly into the US financial system. If successful, Ripple would gain the ability to settle payments without intermediaries, clear transactions through the Federal Reserve, and offer insured deposit accounts alongside its RLUSD stablecoin, which has grown to a market capitalisation of around $470 million.

This move mirrors Circle’s recent decision to pursue a trust bank licence, and underscores a wider trend: major crypto firms seeking regulated status to secure market legitimacy. Obtaining a national bank charter is a complex undertaking, requiring compliance with strict capital adequacy standards, consumer protection frameworks, and oversight by the Office of the Comptroller of the Currency. Ripple will also face questions over its historic legal battles with the SEC and how those precedents might affect its risk profile.

Ripple’s leadership has framed this as an opportunity to accelerate the adoption of blockchain-based payment rails. By integrating directly with central clearing systems, the firm believes it can offer faster and more transparent settlement to institutional clients and cross-border payment providers. It also hopes to position RLUSD as a preferred regulated stablecoin for enterprise use.

However, the path forward is far from guaranteed. Approval could take over a year, and regulators are likely to scrutinise Ripple’s governance and financial stability in detail. Still, if successful, the move could set a precedent for the next wave of crypto firms to transition into fully regulated financial institutions.

A disturbing trend is emerging alongside digital hacks: offline attacks targeting crypto investors. This week, The Guardian reported a significant rise in kidnappings, home invasions and extortion attempts against high-net-worth crypto holders and influencers across Europe, Asia and North America. In Pakistan, a trader was abducted in Karachi and forced to liquidate over $340,000 in holdings. Meanwhile, incidents in Paris, Dubai and Florida have demonstrated the global nature of these crimes.

Blockchain’s transparency makes it easy for attackers to trace wallet balances and identify potential targets. This visibility, combined with leaks from compromised exchanges and KYC providers, has fuelled a surge in physical crime against digital asset holders. Analysts say more than 230 confirmed cases have been reported in the past 18 months alone, underscoring how cryptocurrency wealth can create unique personal security risks.

Some investors are taking drastic measures to protect themselves, including using privacy-preserving wallets, distributing assets across multiple addresses and hiring private security. Insurers are also stepping in, with new policies tailored to protect against theft, kidnapping and ransom demands tied to crypto wealth.

The rise of offline attacks illustrates how the real-world risks of holding large digital asset portfolios are evolving. As the sector matures, regulators and industry leaders may need to address not only financial controls but also personal security protections to safeguard investors from targeted violence.

This week’s developments highlight how the cryptocurrency sector is rapidly maturing while encountering new risks and regulatory scrutiny.

Turkey has imposed strict anti-money laundering measures aimed at preventing illicit finance, while Germany’s approval of a euro-backed stablecoin signals growing European leadership in regulated digital assets.

Ripple’s application for a US national bank charter shows how blockchain firms are seeking deeper integration into traditional finance, even as offline attacks on crypto holders escalate worldwide.

These stories illustrate a landscape in flux, balancing innovation with security and regulation.

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