Crypto Regulation and Compliance Updates

Hong Kong will allow licensed platforms to offer crypto perpetual contracts under strict risk controls for professional investors. The SFC will limit access to institutions and require strong systems to manage leverage volatility and liquidations. Bitcoin and Ether will anchor crypto

Mandiant has discovered that the North Korea-linked UNC1069 threat group has increased its attacks on cryptocurrency and fintech companies, using seven types of malware, including SILENCELIFT, to deceive victims through forged videos and hacked Telegram accounts, stealing sensitive data and digital assets.

Balancer announces that starting today, a 180-day white-hat rescue fund application window is open. Affected users can apply to recover their tokens. Funds are allocated based on the proportion of liquidity providers in each pool. Assets not claimed by the deadline will become dormant. The investigation is still ongoing.

SEC Commissioner Mark Uyeda emphasizes that tokenization of assets like U.S. Treasuries is moving from concept to reality. He advocates for updated regulations that support blockchain innovation while protecting investors, reflecting cautious optimism in the evolving financial landscape.

Beaverd (@beaverd) wins the $1 million grand prize in the X platform long-form competition but is exposed by Bubblemaps for involvement in Meme coin scams, with profits exceeding $600,000. In response to the allegations, Beaverd not only denies them but also makes provocative remarks, sparking community dissatisfaction. His statements and background have also caused widespread controversy.

Foresight News reports that SBF (@SBF_FTX) posted on X stating that new evidence shows the Biden administration's Department of Justice has threatened multiple witnesses, forcing them to remain silent or change their testimonies. He calls for the charges to be dismissed and believes that the judge's actions against defendants including himself, former FTX executive Ryan Salame, and President Trump, Lewis

The Hong Kong Securities and Futures Commission is pushing forward with virtual asset regulation, and will announce three new measures in the short term, including allowing trading platforms to offer perpetual contracts and permitting brokers to use Bitcoin and Ethereum as collateral for financing. Initially, participation will be limited to professional investors, with an emphasis on risk management and transparency, and regulation of liquidity operations on trading platforms.

The Hong Kong Securities and Futures Commission (SFC) has issued new guidelines allowing licensed virtual asset brokers to provide margin financing services and establish a regulatory framework for perpetual contracts, limited to professional investors. The aim is to enhance market liquidity and risk management while opening up related companies to act as market makers. The SFC emphasizes a step-by-step approach to developing the digital asset market.

On February 11, news reports revealed that Mandiant, Google's security team, disclosed that a hacker group linked to North Korea is using deepfake videos and fake Zoom calls to carry out highly customized social engineering attacks against the cryptocurrency industry. They are also deploying various malicious programs to steal assets and data. The investigation shows that this operation was launched by the cyber threat group UNC1069. The group has been active since at least 2018 and shifted its focus from traditional finance to the Web3 space after 2023, targeting executives of crypto fintech companies, software developers, and venture capital professionals. The incident began when an industry executive's Telegram account was hijacked. The attackers impersonated the individual to contact targets, build trust, and then sent fake Calendly video meeting invitations.

On February 11, news reports indicated that the White House's second round of consultations on stablecoin regulation failed to reach an agreement between banks and crypto companies. The core disagreement centered on whether "stablecoins can offer yields or rewards to users." Several crypto organizations engaged in discussions with major U.S. banks, but deadlock over key provisions has once again hindered the development of the U.S. stablecoin regulatory framework. The meeting was directly related to the proposed CLARITY Act. This legislation is based on the digital asset regulatory framework proposed by the GENIUS Act and has been passed by the House of Representatives, but the Senate has yet to advance it. The yield provisions are seen as the biggest obstacle. Banks are concerned that if stablecoins offer interest or rewards, it will divert traditional deposits, weaken banks' ability to lend to households and small to medium-sized enterprises, and thus impact financial system stability.

On February 11, Hong Kong Financial Secretary Paul Chan announced that Hong Kong is ready to issue the first batch of stablecoin licenses in March, marking the official move into the practical phase of local stablecoin regulation. The statement was made at a digital asset industry conference, sparking significant market attention on topics such as the "Hong Kong stablecoin regulatory framework" and "stablecoin compliance issuance prospects." Paul Chan pointed out that only a small number of licenses will be issued in the initial phase, and regulators will focus on whether applicants have clear use cases, sustainable business models, and comprehensive compliance and risk management systems. He emphasized that stablecoins are not merely payment tools but are important infrastructure connecting traditional finance with on-chain economy, thus requiring a balance between innovation and risk control.

A federal judge in New York dismissed a patent infringement lawsuit from Bancor against Uniswap, stating the patents involved referenced only abstract ideas. The court's ruling allows Bancor to amend its case within 21 days, or the dismissal becomes final.

On February 11, news, the U.S. Southern District of New York Federal District Court made an important ruling, dismissing the patent infringement lawsuit filed by Bprotocol Foundation and LocalCoin Ltd. related to Bancor against Uniswap. Judge John G. Koeltl stated in a memorandum opinion issued on February 10 that the patents involved are essentially "abstract concepts" and do not meet the patentability standards under U.S. patent law. The case centered around the "Constant Product Automated Market Maker" model, which is one of the core liquidity pricing mechanisms in decentralized finance. The plaintiffs claimed that Uniswap illegally used their automated pricing and liquidity pool technology, but the court held that these patents only involve "fundamental economic practices of calculating currency exchange rates for trading," and even if implemented on blockchain and smart contracts, they do not qualify for patent protection.

American "Today Show" host Savannah Gessley's mother was kidnapped, and the kidnappers demanded $6 million in Bitcoin. The case has raised concerns about cryptocurrency crimes and has drawn mainstream society's attention to the risks of blockchain. Law enforcement faces difficulties, with no concrete clues found, and family members released a video for help. This incident serves as a warning about the spread of cryptocurrency crimes in society.

CFTC Chicago Enforcement Team, consisting of 20 people, has completely left. It was once the top enforcement force in the cryptocurrency market, and is currently expanding its regulation of the crypto and prediction markets. A former lawyer said this move was targeted layoffs because they have experience with FTX settlements. The fines collected by the agency's enforcement have dropped sharply from $17.1 billion in 2024 to $9.2 million in 2025.

Hong Kong Securities and Futures Commission Chief Executive Carrie Lam announced three new initiatives to establish a comprehensive virtual asset regulatory ecosystem. In terms of guaranteed financing, brokers will be allowed to provide financing to creditworthy clients, with collateral including securities and virtual assets. Regarding perpetual contracts, a high-level regulatory framework will be announced to permit licensed platforms to offer perpetual contract products. Concerning associated market makers, regulations are expected to be relaxed to allow licensed platforms to provide liquidity through subsidiary market-making units.

Hong Kong Financial Services and the Treasury Bureau Deputy Secretary Chen Hao-lian stated at Consensus 2026 that they welcome Layer 1 protocols establishing a presence in Hong Kong to strengthen the city's position as a Web3 hub. He mentioned that pandemic restrictions have been lifted, and hundreds of Web3 companies are now operating in Hong Kong. The Hong Kong government will continue to strengthen its engagement with blockchain protocols and is considering research into regulatory frameworks for DAOs.

The eight departments of the country issued the "Notice on Further Preventing and Managing Risks Related to Virtual Currencies and Other Assets," and the CSRC introduced relevant regulatory guidelines. The article analyzes China's changing regulatory attitude towards virtual currencies and real-world assets (RWA), pointing out that virtual currencies are still under strict crackdown, while RWA offers a compliant pathway, but the compliance threshold is high, and practical implementation faces multiple challenges.

Ripple Chief Legal Officer Stuart Alderoty said on X that the White House meeting on Tuesday was "productive," with a strong atmosphere of compromise, and both parties still maintain consensus on legislation for the crypto market. Reports indicate that both sides made concessions, with banks willing to discuss stablecoin reward exemptions for the first time. The White House urges all parties to reach an agreement by March 1. However, Polymarket data shows that the probability of the bill passing this year has dropped from 70% to 56%.