This weekly review covers the latest developments in the blockchain and cryptocurrency space. Source: Crypto Valley Journal

BancaStato Enters the Crypto Business

Ticino's cantonal bank, BancaStato, this week launched a regulated cryptocurrency trading service for its retail clients. Anyone holding an account at BancaStato can now directly buy, hold, and sell Bitcoin, Ethereum, Litecoin, and Solana through their e-banking portal. This new functionality is enabled by an interface provided by Sygnum, a cryptocurrency bank that has been licensed by FINMA since 2019.

The service is integrated directly into the Avaloq core banking system, which eliminates the need for a separate order management system. Furthermore, client assets are held off-balance-sheet within Sygnum's institutional custody solution, ensuring they remain fully protected in the event of insolvency.

BancaStato's launch of regulated crypto trading makes it the sixth Swiss cantonal bank to introduce a regulated retail crypto offering, following similar moves by the cantonal banks of Zug, Lucerne, Zurich, St. Gallen, and Thurgau. Three of these six institutions rely on Sygnum's infrastructure. Sygnum's B2B platform now serves more than 25 banks, including PostFinance and SocGen FORGE. Together, these institutions reach over a third of the Swiss population. Consequently, regulated crypto offerings are steadily evolving from a competitive differentiator into an established industry standard. Switzerland's early and deliberate regulatory clarity through FINMA has positioned its banking sector ahead of most European peers, even as EU institutions now adapt to the Markets in Crypto-Assets (MiCA) regulation that took effect in 2024.

BlackRock and Partners Prepare Bitcoin Against Quantum Computers

Major players in traditional finance are increasingly engaging with Bitcoin on a technical and developmental level. This week, nine financial institutions and Bitcoin-focused firms founded the Bitcoin Security Consortium, collectively pledging USD 15 million over a three-year period to enhance the protocol's security. The consortium's founding members include asset management giant BlackRock, ARK Invest, Coinbase, Fidelity Digital Assets, and Strategy.

The consortium does not operate a central fund; instead, it functions purely as a coordinating body. Each member independently directs its own funds to developers of its choosing, an approach designed to sidestep accusations of undue institutional influence over Bitcoin's development. The group's primary focus is on preparing for post-quantum cryptography.

According to Coinbase's technical advisory board, an estimated 7 million BTC—valued at approximately USD 458 billion at current market prices—are considered vulnerable. These are primarily older addresses with an exposed public key. While large-scale quantum computers do not currently exist, current estimates point to their potential arrival around 2030. Proponents emphasize that a proactive transition requires substantial lead time, as updating cryptographic standards across a decentralized network is inherently complex. The consortium's formation also signals that Wall Street firms with growing Bitcoin exposure through ETFs and corporate treasuries now have a direct stake in the protocol's long-term technical resilience.

Trump Backs Ethics Clause for the Clarity Act

In the United States, the first comprehensive market structure law for digital assets is advancing. President Donald Trump has agreed to an ethics clause within the Clarity Act. This clause explicitly prohibits the president, the vice president, and members of Congress from issuing their own cryptocurrencies while serving in office. The broader Clarity Act aims to establish a clearer regulatory boundary between securities and commodities for digital assets, defining the respective oversight roles of the SEC and CFTC—a delineation the crypto industry has sought for years.

A critical aspect of the rule is its jurisdiction: enforcement will be handled by the Department of Justice (DOJ) rather than state attorneys general. This specific provision has sparked criticism. Democrats have raised concerns about a potential conflict of interest, noting that Trump's former lawyer, Todd Blanche, is currently undergoing confirmation to lead the DOJ.

The legislative path remains narrow. Passage requires 60 votes, but Republicans currently hold only 53 seats. The practical deadline for approval is August 7, just before the summer recess; failure to meet this deadline would delay further progress until November. The debate is further complicated by Trump's own cryptocurrency earnings, which reportedly reached around USD 1.4 billion in 2025, raising the stakes for the legislation's ethical boundaries.

Kazakhstan Lures Crypto Traders With Tax Exemption

While Washington debates regulatory specifics, Kazakhstan is taking direct action by presidential decree to bolster its domestic crypto sector. President Kassym-Jomart Tokayev signed an ordinance this month, developed by the Digital Ministry, the National Bank, and the Astana International Financial Centre. The centerpiece of the ordinance is a tax exemption. Trading gains realized on licensed and regulated platforms will remain completely free of income tax. Conversely, individuals who trade through unregulated channels will not receive any tax benefits, effectively pulling users toward registered domestic exchanges. Kazakhstan has been one of the world's largest Bitcoin mining hubs since China's 2021 mining ban drove operators to relocate, and the new measures signal a pivot from primarily hosting mining activity toward building a comprehensive, regulated trading ecosystem.

Additionally, the ordinance allows investors to voluntarily disclose crypto assets previously held abroad and transfer them onto Kazakh platforms. Two other measures target the broader economy: stablecoins are intended to streamline cross-border payments for import and export businesses, and cryptocurrency mining operations are permitted to generate electricity using otherwise unused associated gas from oil and gas fields.

BitMEX Pulls the Plug After Eleven Years

Crypto derivatives exchange BitMEX has announced it will permanently cease trading operations at the end of September, bringing an eleven-year run to a close. The exchange was founded by Arthur Hayes, Ben Delo, and Samuel Reed. New registrations were halted this week with immediate effect, and the exchange plans to settle or forcibly liquidate all open positions by September 23, 2026, following a sale process that ultimately produced no buyer for the exchange.

BitMEX has had a profound impact on the cryptocurrency industry. The platform developed the perpetual swap, a futures contract without an expiry date that offered up to a hundredfold leverage, which is now considered the most-traded crypto product globally. At its peak in the late 2010s, BitMEX held roughly 57% of the global market share, making it a dominant force. The perpetual swap product it pioneered continues to generate the bulk of trading volume on successor platforms such as Binance and Bybit, underscoring the paradox of BitMEX's closure while its signature innovation thrives industry-wide.

However, several factors contributed to its recent decline. A sale process initiated in February 2025 failed to find a buyer, and the exchange experienced a change in leadership in June. Its regulatory history also remained a burden; the company was charged by US authorities in 2020, resulting in a USD 100 million fine in January 2025. Following the shutdown announcement, the exchange's native token, BMEX, plunged by more than 90%.