YM Lee

U.S. President Donald Trump, who had pressured allies to dispatch warships to the Strait of Hormuz—a chokepoint for global energy shipments controlled by Iran—has reversed course, saying "no further support is needed," as the United States remains at war with Iran. On the morning of the 17th (local time), Trump wrote on his social networking service (SNS) Truth Social that "the United States has been informed by most NATO allies that they do not wish to be involved in our military operation against Iran, a terrorist regime," adding, "even though nearly every country strongly agrees with what we are doing and with the fact that Iran must not be allowed to obtain nuclear weapons in any form or manner." He continued, "I am not surprised by their actions," saying, "because I have always thought of NATO as a 'one-way street'—we spend hundreds of billions of dollars every year to protect them, but they do nothing for us, especially when we need it." He added, "Fortunately, we have destroyed the Iranian military," saying, "the navy and air force, air defenses and radar are gone, and perhaps most importantly, leadership at nearly every level has been eliminated so they can never again threaten us, our Middle East allies, or the world." He also said, "Because of the fact that we achieved this military success, we no longer need or want support from NATO members," adding, "We never did. The same goes for Japan, Australia and South Korea. As President of the United States of America, the most powerful country in the world, we do not need anyone’s help." Ahead of a summit with Irish Prime Minister Micheál Martin at the White House in Washington, D.C., Trump again voiced disappointment with NATO. Asked what progress had been made in persuading allies to support the United States in escorting oil tankers transiting the Strait of Hormuz, Trump replied, "We don’t really need much help, and in fact we don’t need any help." He also said, "All NATO allies expressed full support, but they didn’t want to help us," judging that "Iran was a tremendous threat and effectively a threat to every NATO member." He added, "But if they say they won’t actually help us, I think they are very foolish." He then referred to the conflict between Ukraine and Russia, saying, "We are helping them, but they are not helping us," adding, "I think this is a very wrong situation." However, immediate retaliatory steps or a review of ties are not expected. Trump said, "No (retaliation), but I don’t think it’s good for the partnership," adding, "I’m disappointed in NATO. We have spent trillions of dollars over years for NATO—truly enormous sums—and one of the reasons the United States runs a fiscal deficit is precisely that." Still, he underscored that "there is nothing specific being reviewed at this time." Trump’s emphasis that he "does not need anyone’s help" has also prompted speculation that there could be changes to the Trump administration’s concept of a "Hormuz coalition." Another interpretation is that, rather than forcefully pushing to form a Hormuz coalition, Washington could shift toward seeking support in other ways. Kim So-yeon, Hankyung.com reporter sue123@hankyung.com

The U.S. Securities and Exchange Commission (SEC) signaled a shift in regulatory direction by offering an interpretation that it will not view most virtual assets (cryptocurrencies) as securities. According to Cointelegraph on the 17th (local time), the SEC published an interpretive notice explaining how federal securities laws are applied to virtual assets and said it would clarify the regulatory scope for non-security crypto assets. The SEC said the interpretation would serve as an "important link" in the regulatory framework in conjunction with the digital-asset market structure bill currently being discussed in Congress. In particular, it presented a token classification framework that distinguishes among digital commodities, digital collectibles, digital tools, stablecoins and digital securities. It also clarified standards for whether various activities—such as airdrops, protocol mining, staking and wrapped assets—fall under securities laws. SEC Chairman Paul Atkins said, "Regulators must provide clear standards," adding that this "acknowledges that most crypto assets are not inherently securities." He added that it also reflected the reality that "investment contracts can end." The SEC said that, under this interpretation, the scope of securities-law coverage is effectively limited to "tokenized traditional securities." As a result, typical crypto assets are more likely to be classified as commodities, raising the likelihood that the Commodity Futures Trading Commission's (CFTC) jurisdiction will expand. The move came shortly after the SEC and the CFTC signed a memorandum of understanding to cooperate on crypto regulation, and is seen as an effort to more clearly delineate roles between the two agencies. The SEC encouraged market participants to review the interpretation to understand regulatory boundaries between the two regulators. Meanwhile, personnel changes within the SEC are continuing. The previous day, Division of Enforcement Director Margaret Ryan resigned, and Sam Waldon was appointed acting director. In response, former SEC official John Reed Stark criticized the agency, saying, "The SEC is no longer Wall Street's watchdog," adding that it has "turned into a service organization for major financial firms." The SEC currently has only three Republican-leaning commissioners remaining, and President Donald Trump has yet to announce plans to nominate additional commissioners. Against this backdrop, attention is focused on how the SEC's shift in regulatory stance will affect overall crypto-asset policy going forward.

US Democratic lawmakers have introduced legislation to curb betting in prediction markets tied to wars and military operations. The move follows allegations that bettors may have used inside information in wagers over the possibility of US and Israeli strikes on Iran. According to Cointelegraph on the 18th (local time), Rep. Greg Casar and Sen. Chris Murphy introduced the "BETS OFF Act," which would ban event contracts related to sensitive military operations and federal government functions. The lawmakers said the bill was prompted by signs that some Polymarket accounts placed unusually large bets on the likelihood of the US and Israel launching a war against Iran. Murphy has previously argued that it is highly likely that people with inside information about then-President Donald Trump's plans for strikes on Iran participated in those bets. Casar said, "We should not live in a country where decisions about war and peace, life and death are swayed by someone sitting in the Situation Room wagering hundreds of thousands of dollars." The bill extends a broader push in Washington to tighten oversight of prediction-market platforms and allegations of insider-driven trading. Last week, Sen. Adam Schiff also introduced the "DEATH BETS Act" to block the listing of event contracts related to war, terrorism, assassination and an individual's death. Platforms such as Polymarket and Kalshi offer betting products on a wide range of topics, including sports and US politics. However, controversy has grown as they have expanded to trading detailed military scenarios surrounding a potential US-Israel conflict with Iran. A military journalist at The Times of Israel said he received threats "aimed at settling a Polymarket prediction" after reporting the date an Iranian missile struck Israel. Critics say war-related prediction markets are influencing not only the parties involved in real-world events but also reporting on the ground. Even now, Polymarket hosts markets on issues such as whether the US will deploy ground troops to Iran, the timing of a ceasefire and the possibility of a change in Iran's leadership. Regarding its Middle East-related markets, Polymarket said, "The value of prediction markets lies in providing accurate and unbiased forecasts on socially important events," adding that it "can offer answers that are difficult to obtain from TV news or X."

Prediction-market platform Kalshi has filed a preemptive lawsuit against regulators in the U.S. state of Iowa, citing a regulatory clash over its sports event contract products. According to Cointelegraph on the 12th (local time), Kalshi filed suit in federal court in Iowa against Iowa Attorney General Brenna Bird and the Iowa Racing and Gaming Commission, among others. Kalshi argued that Iowa authorities are highly likely to take enforcement action against its event contract products. In its complaint, Kalshi said regulatory risk increased after a meeting with the Iowa attorney general. Kalshi said, “The Iowa attorney general mentioned that they have been reviewing our company for a long time,” adding, “After that meeting, we concluded there is a substantial risk that the state will move to take enforcement action.” Kalshi also said it asked the state whether it planned any future enforcement but did not receive a clear answer. Kalshi said it requested confirmation from the Iowa attorney general’s office that there were no enforcement plans, but was told, “We cannot provide any assurance regarding potential future enforcement.” In the lawsuit, Kalshi contended that its event contract products fall under a contract market regulated by the U.S. Commodity Futures Trading Commission (CFTC). Kalshi stressed that “federal law preempts the application of Iowa’s regulation,” and that regulatory authority over the products lies with the CFTC.

Losses from scams involving crypto (cryptocurrency) ATMs surged sharply last year, a report shows. According to Cointelegraph on the 12th (local time), cybersecurity firm CertiK said in a report that losses tied to crypto ATM scams in the U.S. totaled about $333 million in 2025. Related complaints filed with the U.S. Federal Bureau of Investigation (FBI) also jumped. From January to November 2025, the number of victim reports exceeded 12,000—up about 33% from a year earlier. CertiK said crypto ATMs are being used by criminal groups as one of the easiest ways to siphon off funds. The cash-to-crypto conversion can be completed in under five minutes, and identity checks are often limited, making them easy to exploit for fraud, the firm explained. The U.S. is also home to about 78% of the world’s roughly 45,000 crypto ATMs, resulting in relatively larger losses. The report said a significant share of victims are older adults. About 86% of total losses were incurred by people aged 60 and above, with large cash holdings such as retirement funds and low understanding of crypto cited as key factors. Most crypto ATM scams rely on social engineering to coax victims into making transfers directly at an ATM. Common schemes cited include impersonation of government agencies, tech-support scams, “grandparent scams,” investment fraud and romance scams—so-called “pig butchering.” In particular, the use of artificial intelligence (AI) in fraud has been driving losses even higher. CertiK estimated that AI-driven social engineering scams in 2025 delivered about 4.5 times the profitability of traditional methods. “The biggest near-term risk factor is scam tactics using real-time deepfake video and audio,” the report said, adding that criminal groups are even leveraging social media data to replicate the speech patterns and appearance of a victim’s acquaintances.

US prosecutors have filed a court submission arguing that FTX founder Sam Bankman-Fried’s request for a retrial should be denied. According to Bloomberg on the 12th (local time), prosecutors said in a court filing that Bankman-Fried failed to show his conviction was unjust and that there is no basis to hold a new trial. In 2023, Bankman-Fried was found guilty by a jury on fraud and conspiracy charges tied to the collapse of FTX, a cryptoasset (cryptocurrency) exchange, and is currently serving a 25-year prison sentence. Earlier, in court papers he drafted himself in February, he sought a retrial, arguing that if two former FTX executives who did not testify at trial were to appear as new witnesses, they could rebut prosecutors’ claims. The individuals he cited were former FTX executives Daniel Chapsky and Ryan Salame. Prosecutors, however, countered that those individuals do not qualify as new witnesses. “Both were well known to the defense before trial,” prosecutors said, adding that because the defense could have sought their testimony at the time, their post-trial views cannot be claimed as “new evidence.” Prosecutors also dismissed Bankman-Fried’s claim that his prosecution was a political attack by the administration of former President Joe Biden as “baseless.” They noted that “the defendant was a major donor to Democrats in 2020 and 2022, and the campaign finance offenses were also related to those donations.” The case is being heard in the US District Court for the Southern District of New York.

A security vulnerability that could allow attackers to steal crypto wallet seed phrases has been discovered in chipsets made by mobile chipmaker MediaTek, and the company appears to have fixed it via a patch. According to Cointelegraph on the 11th (local time), Donjon, the security research team at crypto hardware wallet maker Ledger, said it had found a vulnerability in MediaTek chips’ secure boot system. Ledger explained that the flaw stemmed from the structure of MediaTek’s secure boot chain, a security mechanism that ensures only authorized software runs when a smartphone boots. The research team said that if an attacker can gain physical access to a smartphone, they can use a USB cable to bypass security protections and extract sensitive data. In the process, critical information such as crypto wallet seed phrases could also be stolen. Ledger said that during testing it connected a Nothing CMF Phone 1 to a laptop and succeeded in compromising the device’s security in about 45 seconds. The team said it was able to recover the PIN code and decrypt stored data even without booting the Android operating system, then extract seed phrases from multiple software wallets. In the attack demonstration, seed information was reportedly extractable from major mobile wallets including Trust Wallet, Base, Kraken Wallet, Rabby, Tangem mobile wallet and Phantom. Ledger said it had reported the issue to MediaTek, and MediaTek stated that it distributed a security patch on Jan. 5 this year to fix the problem. It stressed, however, that users who have not applied the latest security update may still be at risk and need to install the update. Ledger Chief Technology Officer (CTO) Charles Guillemet said, “Smartphones are inherently designed around convenience rather than security,” adding that “even when powered off, a PIN or seed information can be extracted in under a minute.” He added, “A Secure Element is designed to protect private keys in an environment isolated from other parts of the system, providing stronger protection even in the event of a physical attack.”

Lee Chan-jin, governor of South Korea’s Financial Supervisory Service (FSS), attended a top-level meeting of the Basel Committee on Banking Supervision (BCBS) to discuss prudential regulatory measures related to banks’ cryptoassets (cryptocurrencies). According to the FSS on the 12th, Lee attended the BCBS’s top-level meeting, the Group of Central Bank Governors and Heads of Supervision (GHOS), held in Basel, Switzerland on the 9th (local time), where participants discussed the implementation status of Basel III rules and measures to manage cryptoasset exposures (the scale of exposure), among other issues. The meeting was attended by heads of financial supervisory authorities and central bank governors from 28 major economies, including the United States, Europe and Japan. The meeting reviewed member jurisdictions’ progress in adopting Basel III rules. About 75% of member jurisdictions are known to have already implemented the relevant regulations or are preparing to introduce them. South Korea established a regulatory framework aligned with global standards, following the early adoption of credit risk rules in 2020 and the application of the final standards related to market and operational risk in 2023. Participants agreed that maintaining a consistent global regulatory framework is important amid heightened volatility in financial markets. They also agreed to consider, at the BCBS level going forward, reviewing prudential standards for banks’ cryptoasset exposures and methodologies for assessing global systemically important banks (G-SIBs). Lee later met with Christine Lagarde, president of the European Central Bank (ECB), in Frankfurt, Germany, to exchange views on key risks in global financial markets as well as the direction of regulation and supervision for digital assets. He said that while financial market volatility has increased due to geopolitical tensions in the Middle East, the FSS is working to manage market stability based on crisis response experience it has accumulated. He also stressed that financial stability and financial consumer protection are being set as core principles in the process of building a supervisory framework for digital assets. Lee also held talks with Petra Hielkema, chair of the European Insurance and Occupational Pensions Authority (EIOPA), to discuss measures to strengthen consumer protection in the insurance and pension sectors and policy responses to risks related to ageing and climate change. He also requested cooperation to ensure that the equivalence assessment of reinsurance regulation between South Korea and the European Union (EU) proceeds smoothly.

Patrick Witt, executive director of the White House Crypto Advisory Committee, argued that stablecoins could serve as a channel for new capital to flow into the U.S. financial system. In a post on X on the 11th, Witt said stablecoins that comply with the GENIUS Act could have the effect of increasing deposit inflows into the U.S. banking system. He added, "There is an important fact being obscured by the debate over stablecoin rewards or interest structures," and said, "Stablecoins that comply with the GENIUS rules will in fact generate deposit inflows into the U.S. banking system." He continued, "Global demand for U.S. dollars is extremely strong," explaining that "if foreign investors exchange their local currencies for stablecoins issued by U.S.-based issuers, that ultimately creates a mechanism through which new capital flows into the U.S. financial system." The GENIUS Act is legislation that sets standards for stablecoin issuance in the United States and reserve management, with the core aim of establishing a regulatory framework that allows dollar-denominated digital assets to be used within the regulated financial system.

Naver Pay has launched a new community service leveraging non-fungible tokens (NFTs). On the 12th, Naver Pay said it has added NFT-based community features to its non-custodial digital asset wallet service, “Naver Pay Wallet.” Users can use the NFTs they hold to join communities on a range of topics and communicate with other users. Naver Pay Wallet is a wallet service that can store NFTs in the form of digital art. It was designed to store not only art NFTs but also NFTs in various formats such as tickets and certificates. The newly unveiled “Naver Pay Wallet Community” consists of open channels centered on specific topics and verified spaces that only NFT holders can access. For example, communities related to the Jeju digital tourism certificate “Nauda” and game-streaming content on Naver’s streaming platform “Chzzk” are open to anyone, while verified communities are also operated for holders of ticket NFTs such as those for the Korea Ladies Professional Golf Association (KLPGA). Naver Pay plans to expand the service across a broad range of content areas, including sports, games and performances. Starting on the 31st, it will run community events linked to Chzzk game broadcasts, offering participatory services that allow fans to interact while watching matches. It also plans to broaden the scope of community operations to major sporting events, game events and large-scale concerts, developing it into an NFT-based fandom community platform.

South Korea’s Financial Services Commission (FSC) has been found to be additionally gathering views from the securities industry on stablecoin distribution and payment structures. According to the financial investment industry on the 12th, the Korea Financial Investment Association (KOFIA) sent a notice to major securities firms asking them to submit, by the 13th, any regulatory improvements or institutional supplements needed in relation to stablecoins. The feedback collection was said to have been carried out at the FSC’s request. The focus of this round of input is understood to be on ways to use stablecoins in the tokenized securities (STO) market. The securities industry has consistently argued that an institutional framework should be put in place to allow stablecoins to be used in STO payment processing and in collateral-setting procedures. In the market, there is also analysis that the move is a response mindful of recent controversy that stablecoin制度 design is tilting toward a bank-centric approach. The industry has raised concerns that if authority to issue and distribute stablecoins is designed mainly around banks, the role of securities firms could be constrained. Meanwhile, the government and the Democratic Party of Korea’s Digital Asset Task Force (TF) have prepared an integrated draft of the Framework Act on Digital Assets. The bill is reportedly likely to be introduced as early as this month following consultations between the ruling party and the government. During legislative discussions, an option has been floated to initially allow stablecoin issuance in the form of bank-led consortia. At the same time, it was reported that authorities are also reviewing a plan to set the cap on ownership stakes for major shareholders of virtual asset exchanges at 20% for individuals and up to 34% for corporations approved by the FSC.

The Israeli military announced it has begun large-scale airstrikes targeting Tehran, the Iranian capital. According to AFP on the 11th (local time), the Israeli military said it had "launched extensive airstrikes against Iranian regime infrastructure across Tehran." The strikes are part of a continuing wave of attacks following the start of military operations by the United States and Israel against Iran, further heightening tensions in the Middle East. Recent military clashes between Iran and Israel have shown signs of escalation, with repeated missile and drone attacks as well as airstrikes. Reports have also continued that explosions and smoke were observed in parts of Tehran, but the exact scale of damage and the targets struck have not yet been officially disclosed.

U.S. President Donald Trump said he would release oil from the Strategic Petroleum Reserve (SPR) to bring down energy prices that have surged due to the military clash with Iran. According to CNBC on the 11th (local time), Trump said in an interview, "We will release some of the Strategic Petroleum Reserve to lower energy prices," adding, "When prices stabilize, we will refill it." The current average U.S. gasoline price was estimated at about $3.58 per gallon. That is roughly 22% higher than about $2.94 a month earlier. The increase reflects intensifying upward pressure on energy prices as concerns grow over disruptions to global crude supply following U.S. and Israeli attacks on Iran. The move came after the International Energy Agency (IEA) agreed the same day to release 400 million barrels from strategic stockpiles to respond to global supply disruptions. It is said to be the largest release in the IEA’s 50-year history. According to Walter Bloomberg, the U.S. Department of Energy said it had received approval for a plan to release about 172 million barrels from the SPR starting next week. The U.S. SPR currently stands at about 415 million barrels, roughly 58% of its total storage capacity of 714 million barrels. Whether the U.S. will take part in the IEA’s coordinated release will ultimately be decided by President Trump.

Concerns are growing that global energy shipments could be disrupted after reports that Iran has laid sea mines in the Strait of Hormuz. According to Reuters on the 11th (local time), two sources familiar with the matter said Iran installed about 12 sea mines in the Strait of Hormuz. The move was said to potentially make reopening the strait more difficult. The Strait of Hormuz is a key maritime chokepoint linking the Persian Gulf to global energy markets and a major route for crude oil and liquefied natural gas (LNG) shipments. Exports of crude oil and LNG through the waters have effectively been halted for about 12 days since the United States and Israel began military operations against Iran. As a result, fears of supply disruptions are spreading across global energy markets, adding upward pressure on international energy prices.

Discussions on the Digital Asset Framework Act, being pursued as part of Phase 2 legislation for virtual assets (cryptocurrencies), are losing momentum as ruling-party–government consultations have been postponed amid deteriorating conditions in the Middle East. According to the industry on the 12th, consultations on the bill that the Democratic Party of Korea’s Digital Asset Task Force (TF) and the Financial Services Commission had planned to hold are not expected to take place this week, contrary to the original plan. A TF official said the schedule has yet to be finalized and that it is highly likely the talks will be pushed to next week or later. The ruling-party–government meeting was originally set for the 5th, but was postponed once as volatility in financial markets increased following military clashes in the Middle East. A rescheduling was subsequently considered, but as the war situation has become even more unstable, the timing for resuming discussions has been pushed back again. Still, the DP’s TF is maintaining its plan to introduce the Digital Asset Framework Act within this month. The TF said that while the timetable has been adjusted due to external factors, its resolve to push ahead with the legislation remains unchanged. The biggest focal point in the current discussions is regulation of major shareholders’ equity stakes in virtual asset exchanges. In the talks, a proposal is reportedly being seriously considered to cap individual investors’ stakes at 20%, while allowing up to 34% on an exceptional basis when a corporation is the largest shareholder. This standard would make the ceiling more explicit than the 15%–20% range previously reviewed by the Financial Services Commission. However, the proposal has not been finalized, and may be adjusted through ruling-party–government consultations and deliberations by the National Assembly’s Political Affairs Committee. Experts suggest that the recent external environment may also have affected the policy timetable. Hwang Seok-jin, a professor at Dongguk University’s Graduate School of Information Security, said external factors such as rising energy prices and heightened geopolitical tensions may have led to a reprioritization of policy discussions. The industry is also voicing concerns about the legislative delay. One virtual asset industry official said companies need clarity on the regulatory direction to set investment and business strategies, adding that once market conditions stabilize, related discussions should regain pace.

Fintech firm Revolut has obtained a full banking licence in the UK, moving to expand its range of financial services. According to Cointelegraph on the 11th (local time), Revolut said it will begin banking operations in the UK after receiving approval from the Prudential Regulation Authority (PRA), the country’s financial regulator. As a result, Revolut plans to offer deposit account services to retail and corporate customers through “Revolut Bank UK.” Deposits at Revolut Bank UK will be protected by the UK’s Financial Services Compensation Scheme (FSCS). The FSCS is a system that safeguards customer deposits in events such as a financial institution’s failure, with coverage of up to £120,000. Existing Revolut customers in the UK will be migrated sequentially to the new bank account framework over the coming months. Revolut said, “With the launch of this bank, we plan to provide a broader range of financial services going forward, including lending.” Cointelegraph noted that crypto-asset (cryptocurrency) companies and fintech firms have recently been actively pursuing banking licences to strengthen links with the traditional financial system. Ripple, Paxos, and Circle—the issuer of the US dollar stablecoin USDC—are also moving to obtain banking authorisations or secure related regulatory status. Revolut, too, is pushing to expand its global banking business. The company applied for a banking licence in Peru in January this year and has also applied for a federal bank charter in the United States. Meanwhile, in the United States, some traditional financial-sector players are also moving to oppose crypto firms’ entry into banking. A US banking industry group is reportedly considering litigation against the Office of the Comptroller of the Currency (OCC) to block crypto firms from obtaining bank charters.

The U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) said they will strengthen their cooperation framework to better align their financial-market oversight regimes. According to an SEC press release dated the 11th (local time), the SEC and the CFTC signed a memorandum of understanding (MOU) aimed at enhancing cooperation and coordination between the two agencies. The agreement is intended to reduce duplicative regulation that hampers innovation and to better align the financial-market supervisory framework. Under the agreement, the SEC and the CFTC plan to bolster efforts including refining regulatory definitions, expanding supervisory cooperation, and sharing data. In particular, they agreed to work together to establish a clearer regulatory framework for emerging technology areas, including digital assets. SEC Chair Paul S. Atkins said that regulatory conflicts between the SEC and the CFTC and overlapping registration requirements have long hindered innovation and driven market participants to other jurisdictions, adding that the MOU will serve as a roadmap ushering in a new era of regulatory alignment between the two agencies. CFTC Chair Michael S. Selig also said that as financial markets evolve rapidly, the regulatory regime must be modernized in step, noting that the cooperation will help reduce duplicative and excessive regulation and close gaps in financial-market oversight. Alongside the agreement, the two agencies also launched the Joint Harmonization Initiative. The initiative will strengthen cooperation across key regulatory functions including policymaking, examinations and enforcement, and will play a role in improving regulatory clarity for emerging financial-technology areas such as digital assets. Going forward, the SEC and the CFTC plan to expand cooperation across a range of areas including joint interpretations and rulemaking, improvements to clearing and margin frameworks, streamlined trade-data reporting, and enhanced market surveillance and risk monitoring.