US Treasury’s OFAC Imposes Second Round of Sanctions on Crypto Exchange Garantex
The US Treasury’s Office of Foreign Assets Control (OFAC) has once again sanctioned cryptocurrency exchange Garantex, along with its successor, Grinex, marking a significant escalation in the regulatory crackdown on platforms facilitating illicit financial activities. This move highlights the challenges authorities face in enforcing sanctions against entities skilled at navigating the crypto landscape’s regulatory grey areas.
Garantex has served as a major conduit for ransomware gangs, darknet market transactions, and the movement of illicit funds, processing an estimated $96 billion in crypto transactions from 2019 to March 2025. The re-sanctioning of Garantex and the inclusion of Grinex underscore the persistent issue of successor platforms emerging to bypass regulatory actions.
TRM Labs, a blockchain intelligence firm, argues these sanctions may fall short, as entities like Garantex often have contingency plans ready before enforcement measures hit. This allows for quick migration of clients, infrastructure, and funds to successor platforms, keeping the flow of illicit transactions uninterrupted.
The Philippines SEC’s Regulatory Crackdown on Unregistered Crypto Exchanges
The Philippines Securities and Exchange Commission (SEC) has ramped up its campaign against unregistered cryptocurrency exchanges, issuing advisories against 10 major platforms, including OKX, Bybit, and KuCoin. This reflects a global trend towards tighter oversight of the crypto industry, especially in Southeast Asia.
Starting July 2025, the SEC’s new rules require all crypto service providers to register and comply with local securities laws. Failure to do so could result in cease and desist orders, criminal complaints, and bans from app stores, showing the SEC’s dedication to safeguarding Filipino investors from fraud and losses.
The SEC’s actions, alongside similar regulatory tightening in Indonesia and Thailand, indicate a regional move towards stricter crypto oversight. This is further supported by the SEC’s partnership with tech giants like Google and Apple to curb unauthorized marketing, underlining the pivotal role of technology platforms in enforcement.
SEC Staff’s Guidance on Liquid Staking Raises Regulatory Questions and Potential Challenges
The US Securities and Exchange Commission (SEC) has extended its review of Bitwise’s proposed spot Bitcoin and Ether ETFs, signaling a cautious stance on cryptocurrency-related financial products. This delay highlights the SEC’s challenge in balancing innovation with investor protection in the fast-evolving crypto market.
Bitwise’s ETFs offer an in-kind redemption option, letting investors swap shares for actual Bitcoin or Ether, which could provide tax benefits. Yet, this feature demands thorough regulatory scrutiny to protect market stability and investor interests, showcasing the complexities of merging crypto with traditional finance.
The SEC’s reluctance to greenlight cryptocurrency ETFs, combined with Hungary’s new law penalizing unauthorized crypto trading, points to the global regulatory hurdles facing the crypto sector. These developments stress the fine line between fostering innovation and ensuring consumer safety in the digital asset realm.
Google Play Introduces New Licensing Requirements for Cryptocurrency Wallet Developers
Google Play has updated its policy, requiring cryptocurrency wallet apps to meet specific licensing rules in certain countries by October 29, 2025. This affects developers in over 15 jurisdictions, including the US and EU, demanding compliance with ‘industry standards’ and the securing of necessary licenses.
In the US, developers must register with FinCEN as money services businesses, while in the EU, they need to register as crypto-asset service providers (CASP). These rules apply to both custodial and non-custodial wallets, aiming to boost regulatory compliance and consumer protection but potentially raising costs for developers and limiting wallet availability on Google Play.
This policy shift mirrors a worldwide trend towards stricter cryptocurrency regulation, though differing approaches across regions could fragment the market. The crypto community is watching closely, as these rules may set a precedent for other platforms and jurisdictions.
July Sees Over $142M in Crypto Hacks, CoinDCX Hit Hardest
July 2025 saw a sharp rise in cryptocurrency security breaches, with over $142 million lost in 17 attacks. Incidents included a $44 million server breach at CoinDCX and a $14 million phishing attack on WOO X, highlighting ongoing vulnerabilities in the crypto ecosystem.
The industry’s response has been a unified push for stronger security measures, like more advanced verification processes and separating customer and operational accounts. These breaches have rattled investor confidence and spurred efforts to fortify security across the sector.
Experts stress the need for ongoing improvements in cryptocurrency security to tackle evolving threats. The events of July 2025 serve as a stark reminder of the critical need to protect digital assets for the crypto market’s sustainable growth.
