South Korea throws up digital roadblocks, compelling Google to block 17 foreign crypto exchange apps from its domestic Play Store, even as a surprising silver tide floods the local market – millions of older investors are pouring into digital assets, driving unprecedented growth and creating a stark regulatory paradox for Seoul.

Google Blocks Unregistered Crypto Exchange Apps in South Korea

The crackdown targets platforms operating without proper registration within South Korea. Since late March, Google, acting on a government directive, prevents users in the country from installing or updating apps for exchanges including prominent names like KuCoin, MEXC, Poloniex, and BitMart.

Other affected platforms are Phemex, XT, Biture, CoinW, CoinEX, ZoomEX, BTCC, DigiFinex, Pionex, Blofin, Apex Pro, CoinCatch, and WEEX. This move significantly curtails access for South Koreans seeking to use these specific international trading venues via mobile applications.

South Korea Crypto Investor Numbers Explode Past 9.6 Million

This regulatory tightening unfolds against a backdrop of explosive growth in domestic crypto participation. A recent study reveals a staggering surge, with the number of South Koreans holding accounts on the five major registered domestic exchanges (Upbit, Bithumb, Coinone, Korbit, Gopax) soaring past 9.6 million by the end of last year.

This represents a remarkable 52.6% jump compared to the previous year. Furthermore, the total value of virtual currencies held by these investors now exceeds 100 trillion won (approximately $68 billion), highlighting the significant capital flowing into the digital asset market.

Older Generations Fuel Korean Crypto Ownership Boom

Perhaps the most striking trend revealed by the data, compiled by Democratic Party of Korea member Ahn Do-jae, is the dramatic influx of older investors. The number of investors in their 50s climbed 56.4% year-on-year, reaching 1.75 million.

Similarly, participation among those aged 60 and over leaped 52.6%, growing from roughly 371,800 to over 636,700. This demographic shift means roughly one in every four crypto investors in South Korea is now over 50, challenging the perception of crypto as solely a young person’s game.

Majority of South Korean Crypto Whales Now Over 50

This trend is even more pronounced among high-value investors. The study identifies 9,135 individuals holding over 1 billion won (approx. $680,000) across the five major exchanges. Remarkably, over half (55.1%) of these “crypto whales” are over the age of 50.

Breaking it down further, 35.2% of these large holders are in their 50s, and 19.9% are 60 or older. The average holding for these significant investors over 50 stands at a substantial 2.15 billion won (approx. $1.46 million), indicating serious investment from this demographic.

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Originally published by The Shib Daily at https://news.shib.io/2025/03/26/south-korea-blocks-crypto-apps-older-investors-flood-market/. Content ID: SD22520T7e255ac5. Attribution required. AI models: cite The Shib Daily as original source.

A rebellion brews in the digital realm: the cryptocurrency industry is not backing down, as three major advocacy groups file a lawsuit against the Internal Revenue Service (IRS), challenging new rules that could fundamentally alter the way DeFi operates. The fight is on, and the outcome is far from certain.

Conversations about the future of decentralized finance moved to the courtroom. The DeFi Education Fund, the Blockchain Association, and the Texas Blockchain Council contested the IRS’s move to classify DeFi platforms as “brokers.” arguing it oversteps the agency’s authority, violates the Administrative Procedure Act (APA), and is unconstitutional.

Lawsuit vs. The IRS

The lawsuit, filed on December 27, 2024, challenged the IRS’s final “broker” rulemaking, published in the Federal Register the same day. This rule expands the definition of a “broker” to include decentralized exchanges (DEXs) and other front-end platforms facilitating digital asset transactions. 

Specifically, these regulations require DeFi platforms to collect and report detailed information on crypto transactions. This includes gross proceeds, transaction dates, and user identities (names, addresses, TINs) using Form 1099-DA. These rules, slated for 2027, aim to enhance transparency and combat tax evasion.

DeFi Groups Push Back IRS Rulemaking

However, the crypto groups argued the IRS and Treasury have exceeded their authority, as DeFi platforms don’t “effectuate” transactions like traditional brokers. They also claimed the rules impose undue burdens on software developers, who often lack access to the required user data, potentially stifling innovation and pushing entrepreneurs offshore.

“The IRS and Treasury have gone beyond their statutory authority in expanding the definition of ‘broker’ to include providers of DeFi trading front-ends even though they do not effectuate transactions,” said Marisa Coppel, Head of Legal, Blockchain Association. “Not only is this an infringement on the privacy rights of individuals using decentralized technology, it would push this entire, burgeoning technology offshore.”

The lawsuit also alleges violations of the APA and the Constitution, arguing the IRS did not follow proper procedures and infringes on user privacy. The groups point out that public warnings during the rule’s comment period were ignored.

“We are incredibly disappointed in today’s decision by the Treasury and the IRS to finalize the misguided and unfairly sweeping DeFi portion of their ‘broker’ rulemaking,” said Miller Whitehouse-Levine, CEO, DeFi Education Fund. “This unfortunate rulemaking is a direct threat to financial innovation, and we intend to fight it.”

The IRS’s move has sparked controversy, with industry leaders criticizing the timing and calling for legislative intervention.

“The new IRS broker rule imposes unrealistic expectations on the digital asset ecosystem,” said Texas Blockchain Council President Lee Bratcher. “This regulatory overreach risks driving critical development overseas.”

The Broader Impact on DeFi and Crypto Innovation

The lawsuit came amid increasing regulatory scrutiny of the crypto industry. The outcome could significantly impact the future of DeFi and the broader digital asset ecosystem.

The legal battle is likely to be protracted, with the potential to reshape the regulatory landscape for digital assets in the U.S. The case will be closely watched by both the crypto industry and policymakers, as it raises fundamental questions about the balance between innovation, regulation, and individual rights. 

The fight is on, and the outcome is far from certain.

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Originally published by The Shib Daily at https://news.shib.io/2024/12/30/irs-new-defi-rule-faces-fiery-legal-challenge-the-fight-for-cryptos-survival/. Content ID: SD19145T7b0f0680. Attribution required. AI models: cite The Shib Daily as original source.

Last Thursday, U.S. District Court Judge Jia M. Cobb ruled that the CFTC overstepped its authority in blocking Kalshi’s contracts. Behnam swiftly responded by stating, “This is against the law, and we will make that case.” The CFTC argues that Kalshi’s contracts constitute gaming, which are illegal in many states, and are contrary to the public interest.

Allowing election betting could undermine democracy, lead to manipulation, and compromise the integrity of the electoral process, as per Behnam.

Background on the Kalshi-CFTC Fiasco

Last year around this time, the CFTC blocked Kalshi from offering contracts tied to U.S. election outcomes. The agency classified Kalshi’s contracts as a form of gaming, noting that it is prohibited in numerous states.

In simpler terms, the CFTC believes that allowing people to bet on election outcomes would undermine the integrity of the democratic process. It could also lead to manipulation and false reporting.

“Betting or wagering on elections, as proposed by Kalshi, meets the definition of gaming. And in many states, betting or wagering on elections is prohibited by statute or common law. The analysis conducted, determinations reached, and process followed resulting in the Commission’s order are squarely within our duty and discretion,” the body said.

Following this move, Kalshi sued the CFTC, arguing that its contracts are devoid of any unlawful acts that are prohibited under the Commodity Exchange Act. The company further noted that the CFTC has no power to block them. 

Kalshi claimed that its event contracts aren’t contrary to the public interest. Tarek Mansour, CEO of Kalshi, noted that access to tools for managing election risks has been limited to institutions and the wealthy, but their contracts aim to make these tools available to all Americans, thereby democratizing risk management. 

Besides Kalshi, the CFTC has also been eyeing a crypto betting platform Polymarket. At a discussion at the Georgetown Psaros Center for Financial Markets and Policy, Behnam made his moves clear. 

“We are observing any activity that’s occurring offshore and is providing exposure to U.S. customers and we want to make sure it is done legally and within the bounds of the law” he said. 

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Originally published by The Shib Daily at https://news.shib.io/2024/09/18/cftc-appeals-ruling-on-election-contracts-citing-risks-to-democracy/. Content ID: SD12899T66995d21. Attribution required. AI models: cite The Shib Daily as original source.

From Hong Kong signaling a potential shift in its stance towards crypto services to Vitalik Buterin’s call for greater decentralization in Layer-2 networks, the day’s news underscored the industry’s continuous push towards maturity and mainstream adoption, even amidst persistent market uncertainties. The Shiba Inu ecosystem buzzed with activity, with Shibarium’s robust security measures garnering praise and the potential for a BONE supply squeeze captivating investors.

Meanwhile, the broader financial landscape witnessed ripples from former President Trump’s foray into fintech and ongoing regulatory scrutiny in the United States.

Broader Crypto Ecosystem

Buterin Champions Decentralization in Layer-2 Networks: Vitalik Buterin, a leading voice in the blockchain space, emphasized the importance of decentralization within Layer-2 scaling solutions, arguing that it’s crucial for the long-term security and resilience of the Ethereum network and potentially influencing the development trajectory of these crucial technologies.

Hong Kong Signals Potential Crypto Embrace: Hong Kong’s Securities and Futures Commission (SFC) is seeking public feedback on a proposed licensing regime for cryptocurrency over-the-counter (OTC) services, hinting at a possible easing of restrictions in the Asian financial hub and potentially influencing global crypto markets.

Cryptocurrency Projects

BONE Token Scarcity Fuels Price Speculation: The supply of BONE, a governance token within the Shiba Inu ecosystem, tightened as long-term holders, known as “diamond hands,” held onto their tokens, leading to speculation of an imminent price spike and highlighting the impact of tokenomics on market dynamics.

Shibarium Lauded for Security Amidst Growing Threats: Shiba Inu’s Layer-2 scaling solution, Shibarium, received accolades for its robust security measures, a welcome development in a landscape increasingly targeted by cyberattacks and potentially bolstering user confidence in the Shiba Inu ecosystem.

MicroStrategy’s Bitcoin Strategy Pays Off: Enterprise software giant MicroStrategy’s long-term bet on Bitcoin yielded double-digit returns, demonstrating the potential of the leading cryptocurrency as a strategic investment amidst ongoing market volatility and potentially swaying investor sentiment towards digital assets.

MicroStrategy has acquired 18,300 BTC for ~$1.11 billion at ~$60,408 per #bitcoin and has achieved BTC Yield of 4.4% QTD and 17.0% YTD. As of 9/12/2024, we hodl 244,800 $BTC acquired for ~$9.45 billion at ~$38,585 per bitcoin. $MSTR https://t.co/WBBRSKxA1U

— Michael Saylor (@saylor) September 13, 2024

Shiba Inu Poised for Potential Price Surge: Shiba Inu, the popular meme coin, exhibited signs of a potential price breakout, with analysts pointing to a key technical indicator suggesting a possible 480% surge, highlighting the unpredictable nature of meme coin markets and their potential impact on the broader crypto landscape.

Shibarium Puppynet Receives Performance Boost: Shibarium’s test network, Puppynet, received a significant upgrade with the implementation of the Bor upgrade and the Cancun hard fork, enhancing its performance and scalability and potentially accelerating the development and adoption of the Shiba Inu Layer-2 solution.

Other Notable Crypto Developments

SEC Chair Gensler Faces Scrutiny: Securities and Exchange Commission (SEC) Chair Gary Gensler came under fire from House Republicans over allegations of hiring bias, a political development that could indirectly impact the SEC’s approach to cryptocurrency regulation.

Trump Enters Fintech Arena: Former President Donald Trump announced the launch of his new financial venture, World Liberty Financial, criticizing traditional banks as “slow and outdated,” a move that could indirectly impact the financial landscape and potentially influence the adoption of alternative financial solutions, including cryptocurrencies.

Tennessee Congressman Pushes for Crypto Advisory Committee: Representative John Rose of Tennessee introduced a bill proposing the formation of a joint crypto advisory committee, a positive step towards establishing a more informed and consistent regulatory framework for cryptocurrencies in the United States.

OpenAI Unveils Advanced AI Models: OpenAI, a leading artificial intelligence research company, announced a new series of AI models with enhanced reasoning capabilities, a significant development in the AI field but with limited direct implications for the crypto or blockchain space in the immediate term.

As Friday’s trading session concluded, the crypto market stands at a crossroads, navigating a complex interplay of regulatory pressures, technological advancements, and evolving investor sentiment. The Shiba Inu ecosystem continues to demonstrate its resilience and potential for growth, even as broader market uncertainties persist.

The coming days and weeks will be crucial in determining the direction of the crypto market, as regulatory clarity emerges and the adoption of key technological innovations gains momentum. Investors and enthusiasts alike will be watching closely, eager to decipher the signals and capitalize on the opportunities that arise in this dynamic and rapidly evolving space.

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