Crypto Regulation and Compliance Updates

Australia passed the “Corporations Amendment (Digital Asset Framework) Act 2025” on April 1, establishing the nation’s first digital asset regulatory framework, requiring cryptocurrency exchanges and custody service providers to obtain financial services licenses within 6 months. The new legislation targets “digital asset platforms” that hold cryptocurrencies on behalf of users and “tokenized custody platforms” that hold physical assets and issue digital tokens. The purpose of this bill is to reduce the risk of past crypto platforms collapsing, and it is expected to generate A$24 billion in value for Australia.

Zcash has addressed a critical flaw in its node software that could have allowed attackers to exploit the deprecated Sprout shielded pool, potentially draining ZEC funds. No exploits occurred, and all user funds are safe following the fix. This incident highlights the ongoing risks posed by legacy components in cryptocurrency systems.

Magic Eden is discontinuing its wallet app, transitioning to an export-only mode, which means users must export their private keys to avoid losing access to their funds. This change emphasizes the importance of self-custody and key preservation for cryptocurrency users.

Three crypto executives extradited from Singapore appeared in federal court in Oakland on Monday as US prosecutors expanded a wash-trading case that has now charged 10 foreign nationals tied to four crypto market-maker companies. The court appearances mark the latest step in a US crackdown on

US Federal Reserve Governor Michael Barr said Tuesday that clearer US stablecoin rules could speed the market’s growth, but warned that regulators still need to address money laundering risks, bank run risks and consumer

Australia tightening crypto regulations: exchanges must have a financial services license Australia has just approved a new regulatory framework for the cryptocurrency industry; under it, exchanges and digital asset custody platforms will be required to apply for a financial services license within the next six months. The move is seen as a significant step toward greater oversight and regulation of the sector.

Texas Senate vice governor Dan Patrick announced that the forecast market, cryptocurrency, and blockchain research will be priorities for the next legislative session, aiming to advance the Texas conservative agenda. Texas will evaluate cryptocurrency ATMs and strengthen coordination of federal regulatory efforts, while also focusing on the legal compliance of prediction markets. In addition, Patrick proposed studying the impact of artificial intelligence on the workforce. Texas markets and investors will closely watch the development of relevant policies.

The Hong Kong government's delay in issuing HKD stablecoin licenses, initially promised by March, is creating uncertainty in the market. Despite strong institutional interest, the approval process remains stalled as regulators prioritize thorough evaluations over swift implementation.

In March 2026, cryptocurrency hacking incidents increased sharply, with losses exceeding $52 million, significantly higher than February’s $26.5 million. The attack on Resolv Labs was especially severe, leading to the unauthorized minting of 80 million USR tokens and causing their price to plunge. Various hacking methods and social engineering attacks occurred frequently, increasing the security risks for holders of crypto assets. Experts are calling on investors to strengthen their security awareness and take stricter protective measures.

The Yinchuan City Xingqing District People’s Court concluded a civil and commercial dispute involving entrusted investment in virtual currency. The plaintiff sought repayment of the investment funds but did not obtain it, and therefore filed a lawsuit based on unjust enrichment. The court determined that the relationship was one of an entrusted contract, facilitated a mediation, and reminded investors to be mindful of legal risks.

Amid rumors of a partnership between American Express and XRP ultimately falling through, it was actually announced that it would become the NFL’s official payments partner, without mentioning Ripple. The prior hype misled people, leading to a negative market reaction, and the XRP price dropped by about 29%. Analysts warn investors to stay alert to false information and social-media hype.

A federal grand jury indicted 10 executives and employees, accusing them of scheming a “pump-and-dump” scam involving false transactions with cross-border ties. The investigation was conducted jointly by the FBI and IRS-CI, uncovering market manipulation. If convicted, they face up to 20 years in prison and substantial fines. This case highlights the intensity of regulatory crackdowns on the crypto market and promotes global cooperation.

Anthropic accidentally leaked 512,000 lines of source code for Claude Code on March 31, triggering security risks and concerns about market valuation. After the leak, the code quickly spread to GitHub and prompted DMCA takedowns. The leaked content revealed internal functionality and unpublished details, exposing the security risks businesses face. The incident highlights that AI companies need to strengthen code security and permission management, and it could also affect Anthropic’s pre-IPO prospects.

On-chain reports show that about 6.7 million bitcoins are stored in addresses that are vulnerable to quantum computing attacks, some of which belong to Satoshi Nakamoto. Google’s team warns that these bitcoins face a risk of their private keys being derived due to the use of early P2PK scripts. Experts emphasize that it is crucial to safeguard the security of these assets, and call for advances in quantum protection and the development of regulatory policies to address future threats.

The European Central Bank, in its latest DeFi report, used data from DeFiLlama for the first time, indicating that regulators are paying close attention to decentralized finance. The report sheds light on the problem of concentrated governance power, which is of great significance for policy-making. Improving DeFiLlama’s credibility can help promote cooperation between regulators and DeFi platforms. In the future, DeFi may face stricter compliance requirements, while also bringing governance challenges.

The LML token was attacked, suffering a loss of about $950,000, and its price is nearly zero. The attacker exploited a design flaw in the TWAP pricing mechanism to manipulate the price, using a series of trades to obtain large rewards and quickly cash out. This incident highlights the potential risks in DeFi protocol reward mechanism design, and also serves as a reminder for the industry to strengthen safeguards to prevent similar attacks from happening again.

Gate News update. On April 1, Bloomberg reported that the EU is pushing to consolidate regulatory authority over large crypto institutions into the European Securities and Markets Authority (ESMA), and Malta has publicly opposed it. If the relevant proposal is advanced by the EU Council and Parliament this summer, Malta may need to hand over its direct regulatory authority over top crypto institutions to ESMA.