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Greetings, Crypto Fella’s👋,

GM. This is FOMOchain - your own personal lighthouse, guiding you quickly and efficiently through a sea of weekly crypto news.

Here’re the quick highlights from the week:

• China Merchants Bank Makes Its Crypto Move

• South Korea’s Stablecoin Playbook

• Jeju City Hunts Crypto Tax Dodgers

• Japan’s First Yen-Backed Stablecoin

• Monero Faces a 51% Attack Scare

• Hive Digital’s Record-Breaking Quarter

• Hong Kong Tightens Custody Rules

From China Merchants Bank launching a crypto exchange in Hong Kong, to South Korea advancing stablecoin regulation, to Japan preparing its first yen-pegged coin, the big players are stepping in. Meanwhile, Monero faced a network scare, and Hive Digital showed how mining firms are evolving into AI-powered infrastructure giants. Let’s break it down.

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China Merchants Bank Makes Its Crypto Move

One of China’s top banks just stepped fully into crypto. CMB International Securities Limited, a subsidiary of the China Merchants Bank (CMB), launched a Hong Kong-based exchange after securing a virtual asset service provider (VASP) license in mid-July.

📌 The exchange offers 24/7 trading in Bitcoin, ETH, and USDT, but here’s the catch—it’s only open to professional investors.

Why does this matter?

CMB is no small player. The bank manages over $1.7 trillion in assets and carries a $153 billion market cap. When such a heavyweight creates an exchange, it signals that Hong Kong isn’t just testing the waters - it’s becoming a serious hub for regulated crypto activity.

👉 Would you trust a bank-backed crypto exchange more than a traditional one like Binance or Coinbase? Hit reply and tell us.

South Korea’s Stablecoin Playbook

Meanwhile, South Korea is preparing a government-backed bill for stablecoins, due in October. The country’s Financial Services Commission (FSC) will introduce guidelines around issuance, collateral management, and internal control systems.

This is part of the Virtual Asset User Protection Act, which has been rolling out since 2023. The new phase is designed to bring stablecoins under clearer regulation, giving both “investors and issuers” stronger guardrails.

Why does this matter?

Stablecoins are still largely USD-dominated - with USDT and USDC controlling much of the $286 billion market. If Korea pushes forward a won-backed coin, it could reduce dollar reliance and add a strong Asian currency-backed alternative.

👉 Do you think regional stablecoins (like won, yen, or euro-pegged) will ever rival the dollar-backed giants?

Jeju City Hunts Crypto Tax Dodgers

Regulation isn’t just about new rules - it’s also about enforcement. In Jeju City, South Korea, tax officials are targeting alleged crypto tax dodgers.

Here’s what happened:

• Authorities investigated nearly 3,000 individuals owing a combined $14.2 million in unpaid taxes.

• Cross-checking exchange data from Upbit, Bithumb, Coinone, and Korbit, they found 49 individuals holding more than $166,000 in crypto.

• Officials moved to freeze and seize the assets.

Why does this matter?

South Korea already passed laws in 2021 allowing crypto seizures for tax debts. This is the real-world application and it shows that anonymity in crypto has limits once exchanges are involved.

👉 Should governments have the power to seize crypto for unpaid taxes, or does that defeat the core idea of decentralization?

Japan’s First Yen-Backed Stablecoin

Across the East China Sea, Japan is also taking big steps. The Financial Services Agency (FSA) is set to approve the country’s first yen-pegged stablecoin (JPYC) this fall.

JPYC is backed by bank deposits and Japanese government bonds, ensuring a 1:1 peg with the yen. For Japan, which already allows USD stablecoins, this move is historic - it’s the first time the country will host its own fiat-pegged coin.

Why does this matter?

It could reshape demand for Japanese bonds while giving domestic investors a local, regulated stablecoin option. With Japan’s deep financial markets, this move might even encourage regional adoption of yen-denominated digital assets.

Monero Faces a 51% Attack Scare

On the other side of the spectrum, Monero (XMR) faced one of the most feared events in crypto - a 51% attack.

Here’s the rundown:

• Kraken paused Monero deposits after one mining pool gained control of over 50% of the network’s hash power.

• Reports suggested that blocks were reorganized, though the Monero community pushed back on whether it was truly an attack.

• Regardless, the news sent shockwaves across privacy-coin circles.

Why does this matter?

Monero, the 29th largest cryptocurrency, relies heavily on decentralization for its privacy guarantees. A concentration of mining power undermines the network’s core security model. It also raises questions about whether proof-of-work privacy coins can remain resilient against such attacks in the long run.

👉 Do you think privacy coins like Monero still have a future in a world of increasing regulation and surveillance?

Hive Digital’s Record-Breaking Quarter

While some networks face challenges, others are thriving. Hive Digital Technologies reported record revenue in its fiscal Q1 2026:

• $45.6 million total revenue

• 406 BTC mined, a 34% jump from the previous quarter

• $4.8 million in HPC (AI computing) revenue, up nearly 60%

Hive is evolving from a mining firm into a broader AI-focused infrastructure company, leveraging advanced chips for high-performance computing.

Why does this matter?

This pivot shows how miners are hedging against volatility in Bitcoin’s price by diversifying into AI workloads - a trend that could redefine the role of mining companies in the digital economy.

Hong Kong Tightens Custody Rules

To close, let’s circle back to Hong Kong. Alongside welcoming CMB’s new exchange, the city introduced stricter crypto custody rules.

Key updates:

• Ban on using smart contracts in cold wallets

• Requirement of certified hardware security modules

• Withdrawals only to whitelisted addresses

• 24/7 security monitoring with strict multi-factor access controls

Why does this matter?

Hong Kong is clearly aiming to position itself as a global institutional hub, balancing innovation with compliance. But tighter rules may squeeze out smaller players, leading to market concentration among larger firms.

👉 Would you prefer stricter, bank-style custody rules if it meant more safety—or looser rules that allowed more innovation?

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Wrapping It All Together

From banks entering crypto to regulators tightening controls, the story is clear: institutions and governments are no longer on the sidelines - they’re actively reshaping the digital asset landscape.

Crypto’s future may not look like its past, but each move - whether it’s a new stablecoin, a tax crackdown, or a mining firm pivoting into AI - pushes the ecosystem forward.

Thanks for reading FOMOchain’s crypto dive.

Stay tuned, fella’s.
We’ll be tracking Q2 week by week - and as always, decoding the signal from the noise.

Until next time,
From FOMOchain Team.