• EU regulators are examining Binance’s use of MiCA’s reverse solicitation exemption to determine whether its current approach complies with the framework.
• The review follows Binance’s failure to secure a MiCA license, raising questions over its continued EU operations after the July 1 transition deadline.

Binance is facing regulatory scrutiny across Europe over its use of MiCA’s reverse solicitation exemption, a legal provision that allows non-EU companies to serve European clients, but only when those clients independently seek out the relationship without any solicitation or marketing from the firm.

The European Securities and Markets Authority, alongside national regulators in France, Germany, and Greece, is now examining whether Binance’s current service model genuinely meets those conditions. 

Significantly, the review follows Binance’s failure to secure a MiCA license this summer. A setback that should have required the exchange to wind down its EU operations from July 1. It limits the activity to help existing customers transfer or sell their holdings.

What Reverse Solicitation Actually Means, and Why It Matters

Reverse solicitation became prominent in Europe after Brexit, when UK-based firms tried to use it to continue serving EU clients without separate licensing. The provision is narrow by design. ESMA said the exemption should be regarded as the exception and not be used to circumvent MiCA requirements. Moreover, crypto firms cannot simply claim it; clear requirements and guidelines must be met.

Binance’s position is that it operates under reverse solicitation in EU countries where it holds no local licence, with customers onboarding of their own volition. Its Abu Dhabi-regulated entity, active since December 2025, serves traders outside countries where local licences previously existed. 

Local licences in France, Spain, and Poland have since lapsed under the MiCA regime. In addition, Binance said it complies with applicable regulatory requirements and is actively working toward MiCA authorisation. That process is still ongoing.

What Enforcement Could Look Like?

If regulators conclude that Binance’s use of the exemption doesn’t hold up, enforcement action, including fines, could result. Binance is not the only firm under review; smaller platforms are also being examined.

This is not Binance’s first significant regulatory confrontation. The exchange paid a record $4.3 billion fine in the US in 2023. Also pleaded guilty to criminal charges related to money laundering and breaching international financial sanctions.

For the broader crypto market, this probe adds another layer of regulatory uncertainty in one of the world’s largest trading regions. If enforcement action follows and Binance faces restrictions on EU operations, liquidity and trading volume across European markets could take a meaningful hit. Particularly for retail traders who rely on Binance as their primary platform. 

Crypto Market Highlights

MetaMask Staking Begins Lido Validator Exit After Security Incident

• OFAC sanctioned seven TRON addresses linked to an alleged Tren de Aragua money-laundering network.
• The seven addresses received about $6.1M in crypto inflows since March 2022, according to TRM Labs.

The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has sanctioned seven TRON blockchain addresses linked to an alleged ATM jackpotting and money-laundering operation connected to Tren de Aragua (TdA).

The action, announced on September 30, designated eight individuals and two Mexico-based companies tied to the alleged scheme, while also targeting TdA leader Juan Gabriel Rivas Nunez, known as “Juancho.” The seven TRON addresses were added to OFAC’s Specially Designated Nationals and Blocked Persons List.

According to Treasury, the operation used malware to force U.S. ATMs and interactive teller machines to dispense cash without charging a customer account. The stolen money was then moved between TdA members and associates to hide its origin, including through cryptocurrency transactions.

Treasury said reported losses from alleged TdA jackpotting attacks in the U.S. reached $40.73 million across more than 1,500 attacks as of August 2025. The Justice Department has also indicted 98 people since October 21, 2025 for alleged involvement in ATM jackpotting schemes.

Seven TRON Addresses Received $6.1M Since 2022

Blockchain analytics firm TRM Labs found that the seven sanctioned TRON addresses received about $6.1 million in total inflows since March 2022. The largest share, around $2.1 million, went to an address attributed to Eric Gabriel Cardenas Arzola.

TRM said all seven addresses were deposit addresses hosted by a centralized cryptocurrency exchange. The addresses received funds from multiple sources and later transferred money to other addresses associated with TdA. TRM also cautioned that the full $6.1 million cannot necessarily be attributed to the alleged ATM jackpotting operation.

The seven addresses subsequently sent funds to other TdA-linked addresses, which in turn transferred about $35 million to a network U.S. authorities have associated with Venezuelan national Jorge Figueira, who has been charged with laundering about $1 billion. Figueira has not been convicted, and those charges remain allegations.

OFAC’s action blocks property and interests in property of the designated persons that are in the United States or under the control of U.S. persons. The designation also means U.S. persons generally cannot conduct transactions involving the blocked property unless authorized by OFAC.

Bitcoin experienced some wild price moves after the release of the US PCE data yesterday, surging to $85,600, where it was rejected and driven south by $2,500.

Meanwhile, BTW continues to produce massive fluctuations, surging by 35% today. NIGHT and STX have seen double-digit increases as well.

BTC Calms After Wild Ride

Bitcoin exploded last Monday to over $87,000, which became its highest price tag since late January. It was stopped there twice in the span of 36 hours, but the second rejection was quite vigorous. BTC dumped to under $83,000 in a day after it topped $87,000 for the last time in September.

The following several days were a lot less eventful. Bitcoin established a well-defined trading range between $83,000 and $85,000, while the lower boundary was tested a few times more than the upper one. BTC even dipped below it on a few occasions, but managed to hold.

A few more fluctuations between the two lines followed before the markets turned their attention to the PCE numbers on September 30. As the final results beat expectations, the cryptocurrency skyrocketed from $83,000 to $85,600 within minutes. However, its subsequent move was just as rapid but in the opposite direction. As such, BTC has returned to $83,600 as of press time after failing to capitalize on the positive PCE news.

It enters its greenest month with a market cap of $1.680 trillion, while its dominance over the alts remains flat at 58.6% on CMC.

NIGHT, BTW, STX on the Rise

Ethereum continues its fight with the $2,700 resistance, but it’s still on the wrong side of it. BNB is above $765, while XRP has dipped slightly below $1.50. SOL, TRX, LINK, RAIN, XLM, and BCH have posted insignificant losses over the past day.

In contrast, HYPE has neared $90 once again after a 3% increase. QNT is above $290 following a similar daily jump. BTW has stolen the show once again, rocketing by 35% to $1.41. NIGHT has surged by 26% and trades well above $0.04, while STX is close to $0.4 after a 22% daily rise.

The total crypto market cap is up by just over 1% since this time yesterday, at $2.890 trillion on CMC.

 

The post NIGHT Explodes 26% While BTC Cools After Wild PCE Swing: Market Watch appeared first on CryptoPotato.

• DogeOS has opened its public testnet, bringing EVM-compatible smart contracts to the Dogecoin ecosystem.
• DOGE will power transaction fees, while developers can build DeFi, trading, stablecoin, and gaming applications on DogeOS.

DogeOS has opened its public Chikyū testnet, bringing an EVM-compatible smart contract layer to the Dogecoin ecosystem through a zero-knowledge rollup.

The testnet went live on September 30, giving developers a place to build and test applications on top of Dogecoin without changing the network’s underlying Layer 1. DOGE is used as the native token for transaction fees on DogeOS.

The launch gives Dogecoin developers access to Ethereum-compatible smart contract infrastructure. Developers can use familiar tools including Hardhat, Foundry and Remix, while the Chikyū testnet currently operates with chain ID 6281971.

DogeOS Brings DeFi and Other Applications to Dogecoin 

DogeOS is designed to support applications that are not available directly on Dogecoin’s base layer, including decentralized exchanges, lending platforms, perpetual trading, stablecoins, prediction markets and games. Several projects are already building on the testnet, including Barkswap, Superposition Finance, Derps, Split Markets and USDoge.

The network targets about 300 transactions per second, compared with roughly 30 transactions per second on Dogecoin’s Layer 1. DogeOS also uses a separate application layer so that smart contract activity can run without requiring changes to Dogecoin’s core network.

The zero-knowledge rollup is designed to settle its state to Dogecoin. However, Dogecoin does not currently verify DogeOS’s zero-knowledge proofs directly. The testnet instead uses a trusted execution environment, validators and a permissioned sequencer, with bridge state transitions requiring valid proofs along with validator and TEE signatures.

DogeOS has previously proposed a Dogecoin Core upgrade that would allow the base network to verify ZK proofs directly, but that upgrade has not yet been implemented.

For DOGE, the immediate change is therefore on the application side rather than the base blockchain. The cryptocurrency can be used to pay fees for smart contract activity, while developers get an EVM-compatible environment for building applications around Dogecoin.

DogeOS has not announced a mainnet launch date. The current public testnet is being used to allow developers to build and test applications before the project moves toward mainnet.

DOGE was trading around $0.0976 on October 1, up about 2.5% over the previous 24 hours, according to CoinMarketCap data at the time of writing.

• MetaMask Staking has started exiting its Ethereum validators from Lido following a security incident affecting part of MetaMask’s infrastructure.
• The final validators are expected to complete their exit by October 7, 2026, according to Lido.

MetaMask is responding to a security incident affecting part of its infrastructure, and while the wallet provider has been clear that no immediate threat to user wallets has been identified, the precautionary steps it’s taking are significant enough to pay attention to.

As a direct response to the incident, MetaMask Staking, formerly known as Consensys Staking, has begun exiting its Ethereum validators from the Lido protocol. The exit process is being carried out in coordination with clients, partners, and external security advisors. Lido confirmed the exits began this week, with the final validators expected to complete their exit by October 7, 2026.

The nature of the incident, its cause, and the full scope of affected infrastructure have not been disclosed. In addition, MetaMask has confirmed it is actively remediating the issue internally while working alongside external partners.

What Happens to the ETH?

The Ethereum withdrawn from MetaMask Staking’s validators will not disappear. It will likely return to the Lido protocol gradually as each validator completes the exit, withdrawal, and re-entry cycle. According to Lido Finance developer Will Shannon, that process could take up to 45 days due to an extended entry queue currently affecting the network.

Furthermore, Lido has been clear that no action is required from stETH holders. The protocol’s diverse Node Operator set, combined with its ad hoc reserve fund holding over 6,750 stETH, is designed to absorb and contain exactly this type of disruption without impacting normal protocol operations.

One important clarification MetaMask has made, its staking operations are non-custodial. Moreover, the company does not manage withdrawal keys for staked ETH on behalf of clients. The exit process is a protective measure rather than a fund recovery operation.

The Implication

A security incident at MetaMask’s infrastructure level, even one where no direct wallet threat has been confirmed, carries weight. MetaMask is one of the most widely used Ethereum wallets in the world. Any compromise of its backend infrastructure raises questions about how attackers gained access and what data or systems were exposed.

The validator exit from Lido also means foregone staking rewards and possible downtime penalties if validators are taken offline quickly to reduce network penalty risk, a financial cost the company is absorbing to protect client assets. Also, the investigation is ongoing, and the next update will matter significantly for how the market and the broader Ethereum staking community respond.

Crypto Market Highlights

HSBC RedCoin Takes Shape With Phased Stablecoin Rollout in Hong Kong

• Standard Chartered predicts Ethena’s ENA to reach $2 by the end of 2028, with targets of $0.42 for 2026 and $1.10 for 2027.
• ENA is trading above $0.25 after a strong September rally.
• Around 1.4B ENA tokens will unlock on October 5, adding selling pressure.

The leading global bank, Standard Chartered has made a first research coverage of Ethena’s ENA token and set a $2 price target for the end of 2028, putting the bank’s forecast at roughly seven times ENA’s current market price. The report, published on September 30, focuses on Ethena’s position across yield-bearing stablecoins, perpetual futures and tokenized real-world assets. The bank also forecasts ENA to reach $0.42 by the end of 2026 and $1.10 by the end of 2027.

The bank’s case is built largely around USDe, Ethena’s synthetic dollar stablecoin. Standard Chartered expects USDe supply to reach about $40 billion worth by the end of 2028. Right now Ethena issued USDe value stands at $4.98B, meaning the bank’s projection is about 8x higher. 

This comes as the bank expects real-world assets deployed on blockchains to expand from around $40 billion currently to $2 trillion over the same period, creating a larger market for Ethena’s tokenized-asset and yield strategies.

Ethena initially generated USDe’s yield mainly through the crypto basis trade, holding spot assets while shorting perpetual futures to hedge price exposure. The protocol has since expanded into institutional credit, tokenized U.S. equities and equity perpetual futures. 

As well as, its latest equity strategy uses Binance bStocks as tokenized spot exposure and stock perpetuals as the hedge. Since then, open interest in Binance’s equity perpetuals had surpassed $2.9 billion, while the reported six-month annualized basis return averaged 3.56%.

The ENA token’s economics are another part of Standard Chartered’s valuation argument. Ethena’s approved revenue-allocation framework links future ENA buybacks to USDe supply milestones. The first threshold is $7.5 billion in USDe supply. At that level, 5% of eligible net revenue is allocated to buybacks, rising to 10% at $10 billion, 15% at $15 billion and 20% at $20 billion.

ENA Regains Key Support as 1.4B Token Unlock Approaches

ENA is trading at around $0.2586 at the time of writing, according to CoinMarketCap. The daily chart indicates that ENA has pulled back after a sharp September advance, nearly to $0.3. Binance historical data shows ENA closed to $0.2566 on Sep, 28 and $0.2484 on Sep. 29. The Sep. 30 session has so far traded between $0.2441 and $0.2633.

Technical readings also hint that the short-term trend has slightly weakened. In the 4-hours EN/USDT snapshot, ENA is trading around $0.2586, a modest recovery after finding support near the $0.24-0.250 area. 

Zooming in, the recent candles indicate that buyers have returned, with ENA moving back above its 9-day MA at $0.2514. Still, the token is trading just below the 21-day MA at $0.2603, making that level an important near-term resistance.

That puts RSI at 54.55, moving back above the neutral 50 level. This suggests that buying momentum has improved, but the indicator is still well below the 70 overbought zone, leaving room for further movement if buyers remain active.

So, a sustained move above $0.2603 would strengthen the short-term setup and bring the next resistance around $0.2675 into focus. A break above that level could open the way toward the $0.275-$0.280 region, while the recent September high near $0.3 remains a larger resistance area.

But there is also a major supply event ahead. Around 1.4 billion ENA is expected to be released on October 5, bringing a large amount of previously locked tokens into circulation.

Due to that, if ENA price faces rejection, $0.2514 is the first support to watch, as it currently aligns with the 9-day MA. If ENA falls below that level, attention would shift toward the $0.245-$0.250 zone, where the latest rebound began. A clear break below that area would weaken the current recovery structure. 

• HSBC RedCoin marks a major stablecoin move by a traditional bank in Asia, with the name reflecting HSBC’s Hong Kong roots.
• The rollout will be phased, beginning with P2P and P2M payments before moving to corporate and institutional applications.

HSBC has officially named its forthcoming Hong Kong stablecoin HSBC RedCoin. It is one of the most significant moves by a traditional bank into the digital asset space in Asia. The name reflects the bank’s Hong Kong heritage. The launch strategy is deliberately phased. It starts with person-to-person and person-to-merchant payments before expanding into corporate and institutional use cases aligned with Hong Kong’s evolving digital asset landscape.

In addition, the announcement came alongside a survey of over 1,000 local customers. The findings tell a more nuanced story than a simple headline about stablecoin adoption.

What the Survey Actually Shows?

74% of respondents could identify at least one stablecoin use case, a higher number than most banks would have expected. Digital asset trading and tokenised investments led the list at 57%, followed by P2P transfers at 53%, with cross-border remittances and merchant payments both sitting at 52%.

On the understanding side, 60% correctly defined a stablecoin as a fiat-backed digital asset. 26% assumed stablecoins were government-issued, and 10% viewed them as interest-bearing, a feature not included in Hong Kong’s current regulatory framework.

What’s Still Holding People Back

When asked what would build their trust, respondents pointed to fraud protection (53%), seamless cash conversion (51%), and reserve transparency (39%). Also, the two most powerful confidence-boosters, however, were stronger regulatory clarity at 62% and enhanced education at 55%.

That is why HSBC is launching a comprehensive public education series across its banking apps, website, and social media. It is focused on scam prevention and transparent redemption mechanisms. The bank isn’t just launching a product. It’s trying to build the trust infrastructure around it at the same time.

HSBC RedCoin is not arriving in a vacuum. Traditional financial institutions are accelerating their stablecoin strategies globally, from Circle’s partnerships with Visa and Mastercard to JPMorgan’s own tokenisation efforts. For HSBC, one of Hong Kong‘s three note-issuing banks. Notably, naming a stablecoin is a statement of intent rather than just a product launch.

Moreover, the phased rollout, P2P and P2M first, wholesale corporate use cases soon after, reflects a careful read of where customer comfort actually sits right now versus where the institution wants to take it.

On the other hand, a bank of HSBC’s scale entering the stablecoin market with a named product, a survey-backed strategy, and a public education commitment signals that institutional stablecoin adoption in Asia is no longer a future conversation.

Crypto Market Highlights

Kalshi Eyes $40B Valuation in Fresh $1B Funding Push

Bitcoin continues to trade sideways within a well-defined range between $83,000 and $85,000, with the former providing strong support after another dip earlier today.

Most larger-cap alts are slightly in the red today as well, with ETH sliding below $2,700 again, while LINK has plummeted by over 7%. NEAR and QNT are in the green again.

BTC Consolidation Continues

Last week was a lot more eventful for the primary cryptocurrency, especially its start. BTC stood at $80,000 last Monday before it exploded by seven grand in less than 12 hours and topped $87,000 to mark an eight-month peak. Although it was stopped there at first, the bulls initiated another leg up a day later, which resulted in it touching the same local high.

However, the bears finally stepped up at this point and didn’t allow another breakthrough attempt. Just the opposite; BTC started to correct hard and slumped to $83,000 within 24 hours. Since then, it has been mostly sideways trading between $83,000, which serves as the lower boundary of this range, and the upper one at $85,000.

The lower boundary has come under fire a lot more in the past several days, including a couple of dips to $82,400. Nevertheless, it has been able to hold strong, at least for now. The latest rebound came earlier today when bitcoin dropped to $82,850. It trades almost a grand higher now, but it’s still slightly in the red on a 24-hour scale.

Its market capitalization remains at around $1.680 trillion on CMC, while its dominance over the alts is at 58.6%.

Big Altcoin Gainers

ETH was stopped at $2,700 once again and now sits slightly below it after a 1% daily decline. BNB is down to $764, while XRP fights to stay above $1.50. Yesterday’s high-flyer LINK is down by over 7% now and sits below $14.5 after some profit-taking from investors. CRO, ONDO, BTW, CC, HBAR, and LIT are also well in the red, some by double digits.

In contrast, QNT has rocketed by 13% once again, currently trading at $290. PUMP has pumped by 15% as well and now sits close to $0.006. NIGHT is today’s top performer, jumping by over 17.5% to $0.035.

The total crypto market cap has declined slightly and sits at $2.870 trillion on CMC.

 

The post These Altcoins Pump With Double Digits as Bitcoin (BTC) Consolidation Continues: Market Watch appeared first on CryptoPotato.

• Ripple and CSD BR will employ the XRP Ledger to reflect ownership data for Brazilian investment funds.
• This initiative begins with BTG Pactual fund shares and might expand to include native issuance as well as other securities.

Brazil is integrating public blockchain technology into regulated financial infrastructure through a cooperation with Ripple and CSD BR. On September 29, CSD BR announced this initiative, which involves BTG Pactual investment fund shares. The operator has over BRL 22 trillion worth of assets registered. The XRP Ledger will reflect ownership data but will not substitute official records of CSD BR. CSD BR stated that the initiative marks the first use of public blockchain technology by the central securities depository for ownership mirroring. The operator has permission from Brazil’s Central Bank and CVM.

Tokenized Shares Will Be Subject to Institutional Controls

The shares issued by the fund will be based on the multi-purpose token standard of the XRP Ledger used by Ripple and CSD BR. The multi-purpose token standard allows for the setup of rules regarding financial assets and includes restrictions for approved participants as well as asset recovery processes. Corporate and banking institutions need to go through the verification process and anti-money laundering processes prior to gaining entry to the platform. CSD BR will control token issuance, participant approval, administration, and asset freezing. It will also manage clawbacks when regulatory or judicial action requires asset recovery. The blockchain infrastructure will be provided by Ripple together with the custody system.

Project May Be Expanding Beyond Brazilian Securities

This project can go further from simple record mirroring depending on whether the project meets its objectives at this stage. In subsequent stages, there may be the issuance of native financial instruments within the XRP ledger. Tokenized instruments would then be traded through the blockchain network by approved participants. These may include Real Estate Receivables Certificates which are known as CRIs and Agribusiness Receivables Certificates that are called CRAs. 

These are Brazilian fixed income securities which are backed by sector-specific receivables. Other tokenization activities in Brazil already have projects that are being undertaken by VERT and Mercado Bitcoin. For instance, VERT created a private credit platform which is based on XRPL, and it holds a BRL 700 million agribusiness receivables certificate. On the other hand, Mercado Bitcoin planned to tokenize more than $200 million worth of real-world assets.

Highlighted Crypto News:

Illinois Drafts Rules for 0.2% Crypto Transaction Tax

• Illinois has released draft rules for its 0.2% crypto transaction tax, including stablecoins and memecoins.
• The tax is scheduled to take effect on January 1, 2027.
• NFTs are excluded from the proposed digital asset tax rules.

The U.S. state of Illinois has released draft rules for its new 0.2% digital asset tax, giving crypto exchanges and other service providers more detail on how the levy could work when it takes effect next year.

The Illinois Department of Revenue (IDOR) posted the draft rules on September 28 and is accepting public comments through October 30, 2026. The rules have not yet been filed with the Secretary of State or submitted to the Joint Committee on Administrative Rules.

The underlying Digital Asset Tax Act was signed into law in June and is scheduled to take effect on January 1, 2027. It applies a 0.2% tax to the value of a digital asset involved in covered business activity received by an Illinois customer. Digital asset brokers are responsible for collecting the tax.

What the Draft Rules Cover

The proposed rules define taxable activity as the exchange, transfer or storage of digital assets through a business or for a customer. Exchanges include buying or selling crypto for dollars, trading one digital asset for another, converting fiat into crypto, converting crypto back into fiat and bridging assets between blockchains.

Transfers can also fall under the tax when a broker performs them for a fee. The draft specifically includes transfers between accounts belonging to the same customer when a digital asset broker facilitates the transaction for consideration. Direct peer-to-peer transfers without an intermediary are not covered.

The proposal also covers stablecoins and memecoins, while specifically excluding NFTs. Network or gas fees paid directly to miners and validators are not treated as taxable consideration. DeFi transactions generally fall outside the tax unless a platform receives qualifying fees, such as protocol fees.

The tax is based on the dollar value of the digital asset when the taxable activity is completed, rather than on whether the customer made a profit.

How It Compares With U.S. Federal Crypto Taxes

Illinois’ levy is separate from federal crypto taxation. The IRS treats digital assets as property, meaning sales and exchanges can create taxable capital gains or losses. Federal rules also require certain brokers to report digital asset transactions to the IRS through Form 1099-DA.

Illinois is currently the first U.S. state to enact a transaction-based tax specifically targeting digital asset activity. A separate Illinois bill, HB 5798, has been introduced to repeal the Digital Asset Tax Act, but it has not repealed the law.