KVANTS DAILY NEWSLETTER - JUL 31ST, 2025
Today, The Deutsche Bank-backed EURAU euro stablecoin launched with full regulatory compliance. South Korea and Algeria moved in stark regulatory directionsSouth Korea strengthening crypto lending oversight and Algeria imposing a total crypto ban. In the US, a White House crypto report opts for regulatory clarity over direct Bitcoin accumulation, and a landmark appeals court decision narrowed the definition of property in NFT insider trading cases.
Corporate crypto treasury holdings top $100B as Ether buying accelerates
Strategy, Metaplanet and SharpLink have significantly expanded crypto market liquidity by accumulating about 100 billion dollars in digital assets, according to Galaxy Research. The majority of these holdings are in Bitcoin with corporate treasuries owning just short of 800 thousand BTC representing almost 4 percent of total supply, while Ether holdings stand at over 1.3 million coins which is just above 1 percent of available Ether. LINK
IMPORTANCE
The entry of corporate treasury firms into the crypto sector represents a structural shift in institutional investment strategies, placing digital assets like Bitcoin and Ether directly onto company balance sheets as treasury reserves. This brings enhanced legitimacy, improved market liquidity and the prospect of further reducing volatility as holdings become more widely distributed among strategic long term holders.
Deutsche Bank-backed EURAU stablecoin launch: Key things to know
AllUnity has officially launched its EURAU stablecoin on the Ethereum blockchain. The EURAU is backed by Deutsche Bank’s asset management division DWS along with Flow Traders and Galaxy, positioning it as one of the few regulated eurodenominated stablecoins in the digital asset sector. The new token is regulated by the German financial authority BaFin and complies with the European Markets in CryptoAssets Regulation. LINK
IMPORTANCE
The launch of EURAU marks a significant moment for institutional adoption of eurobacked stablecoins particularly given the support from major financial institutions and full regulatory compliance under MiCA. This development could set a precedent for other asset managers and banks to enter the regulated digital asset space in Europe, especially as demand for eurodenominated solutions grows among corporations and financial institutions seeking alternatives to dollarpegged tokens.
White House crypto report a mixed bag for Bitcoin advocates
The White House released a comprehensive crypto policy report that offers recommendations on a range of industry topics such as banking rules stablecoins oversight and combating illicit finance. Notably while the document references the establishment of a Strategic Bitcoin Reserve from an earlier executive order it provides no further updates or indication that the United States will begin actively purchasing Bitcoin. LINK
IMPORTANCE
The absence of actionable updates on the United States Strategic Bitcoin Reserve is significant for the digital asset landscape as it suggests the current administration is prioritizing regulatory refinement over proactive investment strategies in digital assets. This conservative approach could slow direct governmental influence in the Bitcoin market compared to other nations taking a more aggressive stance on accumulation.
Appeals court overturns Nate Chastain's conviction in OpenSea insider trading case
A United States federal appeals court has overturned the conviction of Nathaniel Chastain, a former OpenSea product manager, who was previously found guilty of wire fraud and money laundering involving insider trading with non-fungible tokens. The appellate judges determined that the jury was incorrectly instructed on what constitutes the misappropriation of property, finding that Chastain's actions did not meet the statutory requirement of misappropriating traditional property interests. LINK
IMPORTANCE
This decision sets a significant legal precedent regarding the definition of property rights in cases involving emerging digital assets such as non-fungible tokens. The ruling may have far-reaching implications for future enforcement and prosecution of insider trading and market abuse in the digital assets sector, as authorities and courts clarify the boundaries of what constitutes property and fraudulent misappropriation within blockchain native ecosystems.
South Korea to target leveraged crypto lending services with new rules
The Financial Services Commission and Financial Supervisory Service of South Korea are preparing to introduce detailed guidelines on cryptocurrency lending services in August. These regulations will address leverage caps, user qualification standards, and mandatory risk disclosures to address concerns about consumer protection and growing leverage in crypto products. As exchanges like Upbit and Bithumb have recently offered borrowing with high leverage ratios, authorities are forming a task force to design new rules. LINK
IMPORTANCE
This move signals a substantial shift toward harmonizing digital asset markets with established capital market rules, focusing on investor protection and systemic stability. Institutions engaging in or providing services to South Korean digital asset platforms will need to pay close attention to the evolving regulatory landscape, especially in areas related to margin lending and leverage limitations. Tighter leverage restrictions and enhanced disclosures could curb speculative excess and reduce contagion risk across the broader financial system.
Algeria Bans All Crypto Activities, Including Ownership and Mining
Algeria has enacted sweeping new legislation that outlaws all activities related to crypto assets. This includes the issuance, trading, ownership, mining and promotional activities for digital assets such as Bitcoin and Tether. Penalties for violations include prison sentences of up to one year and fines reaching approximately one million Algerian dinars, equivalent to around seven thousand seven hundred dollars. LINK
IMPORTANCE
The decisive move by Algerian authorities reflects a strong regulatory backlash in emerging economies toward unregulated digital asset markets. By criminalizing not only the trading or mining of crypto assets but also basic holding and promotion, the policy sets a precedent for a total exclusion of blockchain-based finance from the local financial ecosystem. This carries significant implications for regional developers and international exchanges that might have considered Algeria as a potential growth market.