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📰 TOP NEWS
South Korea to pilot blockchain-based deposit tokens for government spending
South Korea's Ministry of Economy and Finance will test blockchain-based deposit tokens for government spending in the fourth quarter, replacing traditional purchasing cards as part of a broader push to modernize how public funds are managed. The pilot was approved under a 2026 regulatory sandbox program, allowing business promotion expenses currently processed with government purchasing cards to be paid using tokenized deposits. Token-based payments can be programmed with spending limits and restrictions on how they can be spent, reducing the need for manual audits and lowering transaction fees by removing intermediaries. The trial will take place in Sejong City, and marks the second use of deposit tokens in Treasury operations, following an earlier pilot tied to electric vehicle-charging infrastructure subsidies. The ministry plans to expand the program if it demonstrates stronger control over spending and measurable cost savings.
ECB backs plan to centralize EU crypto supervision under ESMA
The European Central Bank formally endorsed the European Commission's proposal to shift oversight of major crypto asset service providers and other systemically important cross-border financial firms to the European Securities and Markets Authority, calling it an ambitious step toward deeper integration of EU capital markets. The move would mark the most consequential structural change to EU crypto oversight since MiCA became fully applicable at the end of 2024, giving ESMA direct supervisory authority over the largest cross-border firms for the first time, replacing the current model where national competent authorities serve as front-line supervisors. The ECB argued that large crypto firms can be "systemically relevant" and warrant unified oversight to prevent risks from spilling into the banking system, while also requesting a non-voting seat on ESMA's executive board. The proposal faces political headwinds, however, as Ireland, Luxembourg, and Malta — all home to substantial CASP licensing activity, with Coinbase authorized via Luxembourg and OKX and Gemini through Malta — have expressed reservations about ceding oversight to Paris. The ECB's opinion is non-binding, and the proposal now enters negotiations between EU member states and the European Parliament, expected to last several months.
FCA seeks views on crypto regulatory perimeter as UK authorization window approaches
The UK's Financial Conduct Authority has launched a consultation seeking input from firms, industry groups, policymakers, and academics on how activities such as stablecoin issuance, trading platforms, custody, and staking fall within the regulatory perimeter. The consultation closes on June 3, 2026, with crypto firms able to start applying for FCA authorization from September 30, 2026. The publication marks another step toward a full UK crypto regulatory regime following the introduction of the Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2026 in February, with the FCA noting that "until the new regime comes into force, crypto is largely unregulated except for financial promotions and financial crime purposes." Industry reaction was mixed — Thomas Cattee of Gherson Solicitors warned that the UK's crypto regime is "significantly lagging behind Europe," while Nick Jones, founder of Zumo, welcomed the move as "another hugely positive step forward," arguing that the FCA's phased roadmap offers a "more systemic and predictable process than has been seen in many other jurisdictions."
CFTC chief faces congressional pressure over prediction markets and staffing concerns
CFTC Chairman Michael Selig faced sharp questioning from lawmakers at a House Agriculture Committee hearing over the agency's oversight of prediction markets, after contracts allowing users to bet on events such as the death of Iran's Supreme Leader drew public backlash. "This is nuts — I don't believe this is market innovation, that is profiting from tragedy," said Rep. Jim Costa, expressing dissatisfaction with Selig's response that the agency has an advanced notice of proposed rulemaking underway to address the issue. Decentralized exchange Hyperliquid also raised concerns, with Rep. Austin Scott pressing Selig on offshore oil contracts beyond the CFTC's jurisdiction, warning that the volume "has the potential to be detrimental to the U.S. consumer." Lawmakers on both sides of the aisle questioned whether the agency, which has one-sixth the staff of the SEC, has enough resources to handle prediction markets and a potential expanded crypto mandate under forthcoming digital asset legislation. Selig maintained the agency is "running more efficiently and effectively than ever before" and is using artificial intelligence to help with surveillance, while top Democrat Rep. Angie Craig also pressed him to commit to not finalizing new rules as the sole commissioner at an agency that is meant to have five.
🎟️ EVENT OF THE WEEK
HSC Asset Management Conference Hong Kong 2026 Spring Edition
The HSC Asset Management Conference returns to Hong Kong on April 23 at the Hopewell Hotel, bringing together the minds and capital shaping the next chapter of global finance. Across one concentrated day, institutional investors, venture capital firms, family offices, and global asset managers share the floor with builders and operators working across Web3, AI, RWA tokenization, DeFi, PayFi, fintech, and core infrastructure.
Date Apr 23 2026
💬 EXPERT OPINION
Tokenization is the next stage in a long arc of technological change. It can do for finance what the early internet did for information. Stablecoins are the bridge being built from both sides of the river—converging traditional institutions with digital-first innovators to create a more democratic and liquid market."
📊 METRIC OF THE WEEK
Our researchers designed this metric with ❤️
GLOSSARY CORNER A Merkle Tree is a cryptographic data structure used in blockchain where transactions are paired, hashed, and repeatedly combined into a single root hash, allowing networks to efficiently and securely verify the integrity of large amounts of data without processing every transaction individually. | EDITOR’S CHOICE |
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