US Court Dismisses Terrorism Lawsuit Against Binance – Judge Finds No Plausible Link to Specific Attacks

Key Takeaways

US District Court Dismisses Claims Under Anti-Terrorism Laws

A judge at the US District Court for the Southern District of New York has dismissed a lawsuit that accused Binance, its former CEO Changpeng Zhao, and Binance.US operator BAM Trading Services of assisting terrorist organizations through cryptocurrency transactions.

The case was brought by hundreds of victims and relatives of victims of terrorist attacks. According to the court filing, the plaintiffs represented 535 individuals connected to 64 attacks that occurred between 2016 and 2024. The attacks were attributed to groups including Hezbollah, Hamas, ISIS, al-Qaeda and Palestinian Islamic Jihad.

The plaintiffs sought damages under the US Anti-Terrorism Act and the Justice Against Sponsors of Terrorism Act. These laws allow victims to pursue claims against entities alleged to have provided assistance to terrorist acts.

Judge Jeannette A. Vargas dismissed the case at the pleading stage. In her ruling, she found that the complaint did not sufficiently establish a connection between Binance’s operations and the specific attacks that caused the plaintiffs’ injuries. While the filing described alleged compliance failures and illicit activity on the platform, the court concluded that it did not plausibly link the exchange’s conduct to the terrorist incidents in question.

The judge stated that any amended complaint must be filed within 60 days.

Plaintiffs Alleged Exchange Facilitated Fund Transfers

The lawsuit argued that attackers or affiliated organizations benefited from cryptocurrency transactions conducted through Binance. According to the complaint, terrorist groups were able to move funds using the exchange’s infrastructure.

However, the court determined that the allegations, as presented, did not meet the legal threshold required to proceed. The decision effectively ends the case in its current form, unless the plaintiffs submit a revised complaint within the timeframe set by the court.

For users of centralized exchanges, the ruling highlights the legal standards required to hold platforms liable under US anti-terrorism legislation. Courts require a direct and plausible link between an exchange’s conduct and specific acts of terrorism, rather than general allegations of illicit activity on a platform.

Changpeng Zhao Responds to Court Decision

Following the dismissal, Changpeng Zhao commented publicly on the case. In a post on X, he stated that centralized crypto exchanges have “zero motive” to assist terrorist organizations.

Zhao argued that the economic structure of crypto trading makes such activity commercially illogical for exchanges. He wrote that terrorist actors are unlikely to generate meaningful trading revenue and would typically deposit funds only briefly before withdrawing them.

His comments addressed the broader question of incentives for centralized exchanges, which generate revenue primarily from trading activity. Zhao’s statement did not introduce new evidence but framed the issue in terms of business incentives.

Ongoing Scrutiny Over Sanctions Compliance

The court ruling comes as Binance faces additional scrutiny in the United States related to transactions involving sanctioned entities.

A group of 11 US senators recently raised allegations that the exchange facilitated transactions linked to Iranian entities. According to media reports referenced in the inquiry, Binance allegedly processed more than $1 billion in cryptocurrency transactions connected to Iranian entities Hexa Whale and Blessed Trust. The reports also claimed that employees who raised concerns internally were dismissed.

In a letter sent to Senators Richard Blumenthal and Ron Johnson, Binance rejected the allegations. The company stated that the February inquiry relied on reports that were “demonstrably false” and lacked credible evidence.

These developments illustrate the regulatory and political scrutiny that large crypto exchanges continue to face in the United States, particularly in relation to anti-terrorism financing rules and sanctions enforcement.

Implications for Crypto Platforms and Users

The dismissal of the lawsuit clarifies that, in this instance, the court did not find sufficient grounds to hold Binance liable under US anti-terrorism statutes based on the claims presented.

For crypto users, including those who use digital assets for trading or payments on online platforms, the case underscores the legal complexity surrounding centralized exchanges. Allegations of illicit finance can lead to significant legal proceedings, even when a case does not proceed beyond the initial stage.

For exchanges operating internationally, the ruling demonstrates the importance of compliance frameworks and the evidentiary standards required in US federal courts when claims relate to terrorist financing.

Our Assessment

The US District Court’s decision dismisses the terrorism-related claims against Binance, Changpeng Zhao and Binance.US at the pleading stage due to insufficient linkage between the platform’s operations and specific attacks. Plaintiffs have 60 days to amend their complaint. At the same time, Binance continues to face separate scrutiny from US lawmakers regarding alleged transactions involving sanctioned Iranian entities, which the company denies. Together, these developments reflect ongoing legal and regulatory examination of large centralized crypto exchanges in the United States.

New Zealand to Launch Online Casino Licensing in July 2026 – Government Moves to Regulate Offshore-Focused Market

Key Takeaways

Online Casino Gambling Bill Sets Legal Framework

New Zealand is preparing to formally regulate its online casino sector, which has so far been largely served by offshore providers. According to a timeline published by the Department of Internal Affairs, the licensing process will begin in July 2026.

The legal basis for the new system is the Online Casino Gambling Bill. The bill passed its first reading in July 2025 and is expected to become law in May following additional parliamentary stages. Once enacted, it will introduce domestic oversight for online casino operators targeting New Zealand consumers.

Government estimates indicate that more than NZ$750 million, equivalent to about $442.54 million, is spent each year by New Zealand players on offshore online casino platforms. The new framework is designed to bring this activity under national regulation.

Licence Cap and Three-Stage Allocation Process

The number of online casino licences will be limited to 15 operators. These licences will be distributed through a structured, three-stage process aimed at ensuring compliance and competitive fairness.

First, once the bill becomes law, operators will be invited to submit an expression of interest. This window is expected to remain open for one to two months.

Second, a licence auction will take place within one month after the expression of interest period closes. Bidding is expected to last up to two months. Only companies that successfully secure a licence during this auction will move to the final stage.

Third, successful bidders must submit full applications. Authorities will assess these applications based on criteria that include consumer protection standards, financial stability, and operational integrity. The evaluation phase is projected to take between four and six months.

Initial licences will be granted for up to three years. Renewals will depend on continued compliance with regulatory requirements.

Application Deadline and Enforcement Measures

The Department of Internal Affairs has set December 1, 2026 as the deadline for operators to apply for a licence. Companies that fail to do so must stop offering online casino services in New Zealand.

Non-compliant operators may face financial penalties of up to NZ$5 million, equivalent to approximately $2.95 million. Authorities may also remove operators from the market if they do not adhere to the new legal requirements.

For international operators currently serving New Zealand customers without a local licence, this deadline establishes a clear compliance timeline. After December 1, 2026, continuing to operate without approval could result in enforcement action.

Taxation and Community Funding Requirements

Under the proposed framework, licensed operators will be subject to a 12% gaming duty. In addition, the government plans to introduce a community funding guarantee equivalent to 4% of gross gaming revenue.

Officials estimate that the measures could generate between $10 million and $20 million in the first 12 months of operation. Earlier versions of the proposal had faced opposition from sports organisations, which warned that the reform could reduce community funding by more than $150 million.

In response, the government incorporated specific funding guarantees into the bill to address these concerns. The 4% gross gaming revenue requirement forms part of that approach.

Harm Prevention and Player Protection Measures

The legislation also includes provisions aimed at reducing gambling-related harm. According to data from the New Zealand Gambling Survey 2023/24, offshore online gambling participation is more common among younger men and certain ethnic groups, particularly in areas experiencing social deprivation.

To address these risks, the bill introduces mandatory age verification requirements and restrictions on advertising that targets children. These measures form part of the broader regulatory criteria that operators must meet during the application and ongoing compliance process.

Consumer protection standards will be a core component of the full application assessment, alongside financial and operational checks.

What the Timeline Means for Operators and Players

The licensing window beginning in July 2026 marks the start of a formal transition from an offshore-dominated market to a regulated domestic system. With licences capped at 15 and allocated via auction, market access will be limited and competitive.

Operators currently serving New Zealand customers must decide whether to enter the licensing process or exit the market before the December 1, 2026 deadline. The combination of a capped licence structure, auction mechanism, and defined tax obligations introduces clear entry conditions.

For players, the shift means that online casino services will increasingly be offered by domestically licensed providers subject to local oversight, tax contributions, and harm prevention requirements.

Our Assessment

New Zealand is moving to regulate an online casino market currently estimated at more than NZ$750 million annually in offshore spending. The Online Casino Gambling Bill establishes a capped licensing system, a structured auction process, defined tax obligations, and mandatory harm prevention measures. With applications opening in July 2026 and a compliance deadline of December 1, 2026, the government has set a clear timetable for transitioning to a domestically supervised online casino framework.

Pakistan Passes Virtual Assets Act 2026 – New Law Formalizes Crypto Oversight and Licensing Framework

Key Takeaways

Parliament Approves Virtual Assets Act 2026

Pakistan’s parliament has passed the Virtual Assets Act, 2026, creating a formal legal framework for the country’s digital asset sector. The bill was approved by both the Senate and the National Assembly and now requires the signature of President Asif Ali Zardari to enter into force.

The legislation legally formalizes oversight of Pakistan’s crypto industry and confirms the Pakistan Virtual Assets Regulatory Authority, or PVARA, as the central regulatory body for digital assets. PVARA had already been established in July 2025. With the new act, its role and powers are now anchored in law.

For crypto users and companies operating in or evaluating the Pakistani market, the passage of the act signals a transition from policy announcements to a structured regulatory regime backed by legislation.

PVARA Granted Licensing and Enforcement Powers

Under the new framework, PVARA is authorized to enforce licensing requirements and exercise oversight over digital asset service providers. This includes the power to regulate entities operating within Pakistan’s crypto ecosystem.

The authority is also tasked with setting and enforcing anti money laundering rules and ensuring compliance with international sanctions obligations. According to PVARA Chairman Bilal Bin Saqib, the regulator has already issued no objection certificates and is developing banking rails in coordination with the State Bank of Pakistan.

Bin Saqib stated that the country is moving toward a comprehensive licensing framework aligned with global anti money laundering and financial integrity standards. This indicates that regulatory supervision will extend beyond registration to ongoing compliance obligations.

For exchanges, custodians, and other service providers, licensing and compliance requirements are expected to become central operational conditions once the law takes effect.

Shift From Previous Resistance to Formal Integration

The passage of the Virtual Assets Act follows a broader policy shift that began in November 2024. At that time, the government moved to regulate cryptocurrencies as legal tender, reversing earlier resistance from regulators who had stated that crypto would not be legalized or integrated into the financial system.

Since that reversal, Pakistan has taken additional steps that signal institutional engagement with digital assets. These include the announcement of a Bitcoin strategic reserve and the allocation of 2,000 megawatts of electricity for Bitcoin mining and AI data centers.

At the Bitcoin MENA conference in December 2025, Bin Saqib described digital assets as a new financial rail for the global south and referred to blockchain technology as critical infrastructure. These remarks align with the government’s decision to formalize oversight through legislation.

Pakistan also ranks near the top of the 2025 Global Crypto Adoption Index published by Chainalysis, reflecting high levels of crypto usage relative to other countries.

International Cooperation and Stablecoin Exploration

In January, Pakistan signed a memorandum of understanding with SC Financial Technologies, an affiliate of World Liberty Financial. The decentralized finance platform was founded by the sons of US President Donald Trump.

The collaboration aims to explore the use of the USD1 stablecoin for digital payments, including cross border transactions and remittances. While the memorandum does not in itself create binding regulation, it reflects Pakistan’s interest in integrating stablecoin based payment solutions into its financial ecosystem.

Such initiatives are taking place alongside the development of domestic regulatory structures under PVARA. For users and service providers, this combination of legislative action and international cooperation indicates that digital assets are being addressed at both policy and operational levels.

Outlook for Pakistan’s Position in the Digital Asset Sector

Changpeng Zhao, co founder of Binance, has stated that Pakistan could emerge as a global hub for digital assets by 2030 if it continues its current pace of development and regulatory progress. While this statement does not constitute official policy, it reflects external attention to Pakistan’s regulatory developments.

With the Virtual Assets Act now passed by parliament, the immediate next step is presidential approval. Once signed, the law will provide the formal legal basis for licensing, compliance monitoring, and enforcement actions by PVARA.

For international crypto businesses, payment providers, and platforms assessing market entry, the existence of a defined regulator with statutory authority reduces uncertainty around oversight structures. For users, the introduction of licensing and anti money laundering standards may affect how platforms operate, particularly in relation to onboarding, verification, and transaction monitoring.

Our Assessment

The passage of the Virtual Assets Act, 2026 establishes a formal legal framework for digital asset regulation in Pakistan and confirms PVARA as the central supervisory authority. The law introduces licensing requirements and mandates anti money laundering and sanctions compliance for digital asset service providers. Combined with earlier steps such as recognizing cryptocurrencies as legal tender, announcing a Bitcoin strategic reserve, allocating energy for mining, and exploring stablecoin based payments, the act marks a structured move toward regulated integration of digital assets into Pakistan’s financial system.

Utexo Raises $7.5 Million Seed Round – Aiming to Enable Native USDT Settlement on Bitcoin

Key Takeaways

Seed Funding Backed by Tether and Institutional Investors

Utexo, a startup focused on Bitcoin-native stablecoin settlement infrastructure, has secured $7.5 million in a seed funding round. The round was co-led by Tether, Big Brain Holdings, and Portal Ventures. Additional participants included Franklin Templeton, Maven11 Capital, Fulgur Ventures, Alchemy VC, Ethereal Ventures, Auros Ventures, Arcanum Capital, Paper Ventures, Axia8, FlowTraders, Plan B, Gate Ventures, Sats Ventures, and strategic angel investors from companies such as Ledger, Hyperion, BTC Turk, Echo, Legion, and SOLV.

The funding is intended to support the development and rollout of infrastructure that enables USDT transactions to settle directly on Bitcoin. According to the company, the goal is to address what it describes as a longstanding gap in the cryptocurrency ecosystem: production-ready payment rails for stablecoins operating natively on Bitcoin.

Focus on Native USDT Settlement Over Bitcoin

Utexo’s core objective is to allow USDT, the stablecoin issued by Tether, to settle directly on Bitcoin rather than relying on alternative networks. The company positions its system as a way to route stablecoin transactions over Bitcoin-native rails while maintaining compatibility with existing custody, compliance, and user interface setups.

Paolo Ardoino, CEO of Tether, stated that Bitcoin has been central to the company’s long-term vision for USDT. He emphasized the importance of resilient and open settlement infrastructure, describing Utexo’s technology as a layer that makes Bitcoin-native USDT settlement viable at scale. According to Ardoino, this strengthens Bitcoin’s function as a settlement rail for dollar-denominated transactions.

For platforms that handle significant volumes of USDT, including exchanges, wallets, payment service providers, and high-frequency trading firms, the ability to route stablecoin flows over Bitcoin without altering operational workflows may reduce integration friction. Utexo states that partners integrate its API once and can then route USDT over Bitcoin while retaining control over cost structures.

Technical Architecture: API Abstraction and Atomic Settlement

Historically, technologies such as the Lightning Network and RGB protocols have offered technical capabilities for Bitcoin-based payments. However, their complexity has limited broader production adoption. Utexo aims to abstract these complexities through a single API layer.

According to co-founder Chris Hutchinson, the system is designed to allow USDT to move instantly and with predictable costs. The infrastructure supports atomic settlement, meaning transactions are either fully completed or not executed at all. The company states that settlement occurs in USDT and is anchored to Bitcoin’s security model, with completion times under one second.

Another co-founder, Viktor Ihnatiuk, noted that the system enables wallets to offer free USDT transactions while potentially increasing adoption of Bitcoin-native stablecoins. The infrastructure also supports privacy-preserving execution and predictable fees that remain independent of network congestion.

A distinguishing feature described by Utexo is transaction encryption. The company states that all on-chain transactions are encrypted, preventing disclosure of counterparties and wallet addresses. This differs from public transaction graphs on other networks, where transaction flows can be more easily traced.

Alignment With Tether’s Broader Bitcoin Strategy

The investment in Utexo reflects Tether’s continued focus on Bitcoin-based infrastructure. In February 2026, Tether open-sourced MiningOS, a modular operating system for managing and automating bitcoin mining operations. The system, unveiled at the 2026 Plan B Forum in San Salvador, provides unified control over hardware, energy, and site infrastructure using a peer-to-peer architecture.

By backing Utexo, Tether extends its involvement beyond mining software into settlement infrastructure. The stated objective is to enable reliable and predictable dollar-denominated payments anchored to Bitcoin’s security model. Rather than launching a speculative layer-2 solution, Utexo focuses on routing existing USDT flows over Bitcoin.

For market participants, particularly those handling large USDT volumes, infrastructure that allows stablecoin settlement on Bitcoin without operational restructuring may influence how payment rails are selected. Exchanges, trading firms, and payment providers often prioritize settlement speed, fee predictability, and system compatibility when choosing blockchain infrastructure.

Implications for Stablecoin Payment Infrastructure

Stablecoins such as USDT are widely used for trading, cross-platform transfers, and payment settlement. Infrastructure developments that alter how and where these tokens settle can affect transaction routing decisions for platforms and users.

Utexo’s model centers on predictable fees, atomic settlement, and encrypted transaction execution. If implemented as described, these features could offer an alternative routing option for USDT flows that emphasizes Bitcoin’s base-layer security model.

The company targets institutional and high-volume operators rather than retail users directly. However, infrastructure changes at the operator level can influence transaction costs, settlement times, and network exposure for end users, including those interacting with exchanges, wallets, and platforms that accept USDT.

Our Assessment

Utexo has secured $7.5 million in seed funding, co-led by Tether, to develop infrastructure enabling native USDT settlement on Bitcoin. The system introduces API-based integration, atomic settlement, encrypted transactions, and sub-second completion times. Tether’s participation aligns with its stated strategy to expand Bitcoin-based infrastructure for USDT. The development focuses on routing existing stablecoin flows over Bitcoin rather than introducing a new token or speculative network layer, targeting exchanges, wallets, and high-volume payment operators.

Klobuchar and Merkley Introduce Bill to Bar Federal Officials From Prediction Markets – Legislative Move Targets Insider Trading Concerns

Key Takeaways

Lawmakers Introduce the End Prediction Market Corruption Act

Sens. Amy Klobuchar and Jeff Merkley have filed new legislation designed to restrict the participation of federal officials in prediction markets. The proposed measure, titled the End Prediction Market Corruption Act, would bar government officials from accessing these platforms.

According to the information provided, the initiative is framed as a response to a series of insider trading controversies. The lawmakers are positioning the bill as a safeguard intended to prevent potential misuse of non public information by individuals holding government positions.

The legislation specifically targets access to prediction markets. While the proposal has been introduced, further details about its scope, enforcement mechanisms, or timeline have not been disclosed in the source material.

Focus on Insider Trading Controversies

The filing of the End Prediction Market Corruption Act comes amid what is described as a series of insider trading controversies. Although the source does not outline individual cases or investigations, the reference indicates that concerns about information asymmetry and potential conflicts of interest are central to the lawmakers’ effort.

By seeking to block federal officials from participating in prediction markets, the bill aims to reduce the risk that individuals with access to sensitive or market moving information could use that knowledge in a trading context. The proposal reflects a legislative attempt to address perceived vulnerabilities tied to the intersection of public office and financial activity on emerging digital platforms.

No additional information has been provided regarding which categories of officials would be covered or whether the restrictions would apply during active service only. The text of the proposal, as referenced, is focused on limiting access in order to curb what lawmakers describe as corruption risks.

Implications for Prediction Market Platforms

If enacted, the End Prediction Market Corruption Act would directly affect who is permitted to participate in prediction markets within the scope of federal employment. Platforms operating in this space would likely need to consider compliance measures to ensure restricted individuals cannot access their services.

The source material does not detail how such restrictions would be implemented or monitored. However, the legislative intent centers on preventing participation by government officials, suggesting that operators could face new obligations if the bill advances through Congress.

For users of digital trading and wagering platforms, including those active in adjacent sectors such as crypto based markets or online betting, legislative scrutiny of prediction markets may signal broader attention from policymakers. The proposal highlights the increasing regulatory focus on how public officials interact with financial and quasi financial digital markets.

Legislative Context and Next Steps

At this stage, the End Prediction Market Corruption Act has been introduced but not yet enacted. The legislative process will determine whether the bill moves forward, is amended, or remains under consideration.

The involvement of two sitting senators underscores that the issue has reached the federal legislative agenda. The stated objective is to prevent government officials from engaging with prediction markets in order to address concerns linked to insider trading controversies.

No timeline has been provided for committee review, debate, or potential voting procedures. As with any proposed federal legislation, the bill would need to pass both chambers of Congress and receive presidential approval before becoming law.

Our Assessment

The introduction of the End Prediction Market Corruption Act marks a formal legislative effort to restrict federal officials from accessing prediction markets. The measure is explicitly linked to insider trading controversies and seeks to limit potential conflicts involving government figures. While details about implementation and scope remain undisclosed, the proposal places prediction markets within the broader discussion of ethics and financial conduct among public officials. For platform operators and users, the bill signals heightened political attention to participation rules and compliance standards in this segment of the digital market landscape.

One in Five Swedes Bet Online and One in Six Play Online Casinos – New Survey Details Participation and Player Behavior

Key Takeaways

Survey Scope and Methodology in the Regulated Swedish Market

The findings come from the 2025 edition of Casinotempen, part of the Casinofeber research project examining participation and player behavior within Sweden’s regulated gambling sector. The survey was conducted between July 3 and July 17, 2025.

Researchers initially screened 3,463 respondents. From this group, they focused on 1,004 individuals who actively gamble online. The final sample consisted of 501 online casino players and 503 sports betting players. Results were weighted according to gender and age to better reflect the broader population.

The data provides a snapshot of how online gambling is distributed across different segments of Swedish society, including age, gender, income, education, and gambling frequency.

Online Betting Reaches More Users Than Online Casino

According to the survey, online sports betting has a slightly larger reach than online casino gaming in Sweden. Around one in five Swedes take part in sports betting. In comparison, nearly one in six participate in online casino games.

Online casino players tend to be somewhat younger than sports bettors. The typical age range for casino players falls between 39 and 42 years. Sports betting players are on average older, ranging from 42 to 49 years.

Employment levels are high in both groups. About two thirds of respondents report working full time. Among online casino players, the most common monthly income range is between 30,000 and 40,000 Swedish crowns. This indicates that participation is common among middle income households rather than being concentrated in a narrow income segment.

Brand Awareness and User Ratings Among Operators

Brand recognition remains strong across both casino and sportsbook segments.

Among online casino brands, LeoVegas achieved the highest recognition level at 69 percent. Other well known operators include bet365, Unibet, and Betsson. When players were asked to rate casinos, Expekt received the highest average score at 3.84.

In the sports betting segment, Svenska Spel leads in brand awareness. A total of 86 percent of respondents recognize the brand, and 64 percent report having placed bets through the platform. ATG and Unibet are also widely recognized among sports bettors.

These figures show that established brands maintain high visibility among Swedish players, both in casino and sportsbook categories.

Player Profile and Betting Preferences

Sports betting participation shows a distinct demographic profile compared with online casino.

Men account for 62 percent of sports betting players. This group also demonstrates higher levels of education compared with casino players, according to the survey results.

Football stands out as the dominant betting market. A total of 63 percent of bettors place wagers on football. Horse racing follows at 30 percent, and ice hockey at 29 percent. These figures indicate a clear concentration around specific sports.

Spending levels are generally modest. The most common monthly betting amount is below 99 SEK. However, 10 percent of sports bettors report spending more than 1,000 SEK per month. Gender differences are visible in spending patterns. Women tend to wager less, while men more often fall within the 200 to 999 SEK monthly range.

Betting frequency varies. About 24 percent of bettors place wagers once per week. Seven percent report gambling almost daily. Live betting is less common. While 45 percent say they sometimes place live bets, only 6 percent do so regularly.

Responsible Gambling Indicators and Use of Spelpaus

The survey also assessed borrowing behavior and awareness of responsible gambling tools.

Most respondents state that they have never borrowed money to gamble. Among online casino players, 84 percent report never borrowing funds. However, within the subgroup of weekly casino players, 28 percent say they have borrowed money at least once.

Among sports bettors, 93 percent report never borrowing money for gambling purposes.

Awareness of Sweden’s national self exclusion system, Spelpaus, remains high. Among casino players, 65 percent are aware of the system but have never used it. Thirteen percent report having used Spelpaus previously or currently.

Among sports betting players, 71 percent know about the service. Only 1 percent report that they are currently self excluded.

Our Assessment

The 2025 Casinotempen survey shows that online gambling participation in Sweden remains widespread, with sports betting slightly more common than online casino play. The data highlights clear demographic patterns, including age differences and a higher proportion of men in sports betting.

Spending levels are generally low for most users, and most respondents report not borrowing money to gamble. Awareness of the Spelpaus self exclusion system is high across both segments. Together, these findings provide a detailed picture of participation, brand recognition, and responsible gambling indicators within Sweden’s regulated online gambling market.

Zerohash Applies for US National Trust Bank Charter – Move Would Expand Custody and Settlement Services for Digital Assets

Key Takeaways

Zerohash Seeks Federal Trust Status to Expand Crypto Infrastructure Services

Chicago based digital asset infrastructure provider Zerohash has filed an application with the Office of the Comptroller of the Currency for a national trust bank charter. The move would allow the company to operate a federally regulated trust entity focused on digital assets and related financial services.

Zerohash provides backend crypto infrastructure to banks, brokerages and fintech platforms. According to its website, clients include prediction markets platform Kalshi and asset manager BlackRock. By obtaining a national trust charter, the firm aims to expand its role in digital asset custody and settlement.

The proposed national trust bank would provide custody for digital assets, fiat currency and other assets. It would also offer custodial staking, transfer agent services and stablecoin management. Stephen Gardner, the company’s chief legal officer, is listed as the proposed chief executive officer of the trust bank.

For users of crypto platforms, custody structure and regulatory status influence how assets are held and administered. A national trust charter would place Zerohash under federal oversight by the OCC, aligning it with other trust institutions that specialize in safeguarding assets rather than operating as full service commercial banks.

What a National Trust Bank Charter Allows and Restricts

A national trust bank differs from a traditional bank in several key aspects. Trust banks cannot accept deposits or issue loans. Instead, their primary function is to hold and administer assets on behalf of clients.

In the crypto sector, this structure has become relevant for firms focused on digital asset custody, settlement and related services such as staking and stablecoin administration. Federal trust status provides a uniform regulatory framework across US states, rather than requiring multiple state level licenses.

Zerohash joins a group of crypto and fintech firms that have recently pursued similar federal charters. In December, the OCC granted conditional approval for trust charters requested by Circle Internet Group Inc., Ripple, BitGo Inc., Fidelity Digital Assets and Paxos. These approvals signal that federal regulators are processing applications from digital asset companies seeking trust status, although final approvals remain subject to regulatory conditions.

For international users evaluating crypto service providers, federal trust status can affect how assets are legally segregated and supervised within the United States. While a trust charter does not permit lending or deposit taking, it formalizes custody and administrative activities under federal banking law.

Mastercard Explored Acquisition as Zerohash Remains Independent

Earlier this year, Mastercard considered acquiring Zerohash in a deal reportedly valued at up to 2 billion US dollars. The company chose to remain independent and rejected an outright purchase.

According to reports, the two companies are now discussing a strategic investment. Such an arrangement would allow Mastercard exposure to Zerohash’s technology and client base while preserving Zerohash’s autonomy.

This context highlights Zerohash’s position within the broader digital asset infrastructure market. Rather than operating a consumer facing exchange or wallet, the company focuses on providing regulated backend services to financial institutions and fintech platforms that integrate crypto functionality for their users.

Kraken Secures Federal Reserve Master Account for Direct Dollar Settlement

In a separate development, crypto exchange Kraken announced that it has secured a Federal Reserve master account. The approval was granted to Kraken Financial by the Federal Reserve Bank of Kansas City.

A master account allows Kraken to access the US central bank’s core payment infrastructure directly. Through Fedwire, the company can settle US dollar transactions without relying on intermediary banks.

However, Kraken will not receive all the benefits associated with traditional banks. The company will not earn interest on reserves held at the Federal Reserve and will not have access to the Fed’s lending facilities. The arrangement reflects discussions around so called skinny master accounts, which provide limited access to payment systems without full banking privileges.

Access to the Federal Reserve payment system has historically been restricted, and crypto firms have sought similar approvals. Other companies, including Ripple and Custodia Bank, have pursued comparable access, although approvals have been selective.

For users, direct access to Fedwire can affect how efficiently US dollar transactions are processed within a platform’s banking structure. It also reduces reliance on third party correspondent banks for settlement.

Regulatory Positioning Becomes Central for Crypto Infrastructure Providers

Both Zerohash’s trust bank application and Kraken’s master account approval reflect a broader focus on regulatory positioning among crypto infrastructure providers in the United States.

Zerohash is seeking a federal trust structure to formalize custody, staking and stablecoin services under OCC supervision. Kraken, through its banking arm, has secured direct access to the US payment system while operating under limited banking privileges.

For international users of crypto trading, betting or payment platforms, these developments matter because infrastructure providers often sit behind consumer facing services. Custody arrangements, settlement mechanisms and access to fiat payment rails influence how platforms manage client funds and process transactions.

Our Assessment

Zerohash’s application for a national trust bank charter would, if approved, place its digital asset custody and settlement services under federal oversight by the OCC. Trust status would allow the company to hold and administer assets but not to accept deposits or issue loans.

Kraken’s approval for a Federal Reserve master account grants direct access to US dollar settlement infrastructure, while limiting traditional banking benefits such as interest on reserves or central bank lending.

Together, these developments show that major crypto infrastructure providers are pursuing formal regulatory frameworks and direct payment access within the United States, shaping how digital assets and fiat transactions are managed at the institutional level.

Malta Gaming Authority Invites Licensees to Contribute to EU AML Standards Consultation – New Draft Rules Target Customer Due Diligence and Reporting Obligations

Key Takeaways

Malta Gaming Authority Alerts Licensees to EU-Level AML Consultations

The Malta Gaming Authority has informed its licensees and other relevant stakeholders that the European Union has opened public consultations on new draft anti-money laundering standards. The consultations are being conducted by the newly established EU Anti-Money Laundering Authority, which is responsible for developing technical standards under the updated EU framework.

According to the Authority, the draft measures are directly relevant to the non-financial sector, which includes gaming. By notifying authorized persons, the regulator is encouraging early engagement with proposals that may shape future compliance obligations for gaming operators licensed in Malta.

The consultation phase comes as the European Union advances toward a more unified and risk-sensitive legislative regime for anti-money laundering and counter-terrorist financing. For operators offering online gambling and related services, including those accepting digital payments, changes at EU level can influence operational processes, customer verification requirements, and reporting structures.

Three Draft Regulatory Technical Standards Under Review

The public consultations concern three separate draft Regulatory Technical Standards.

The first draft, issued under Article 28(1) of the Anti-Money Laundering Regulation – Regulation (EU) 2024/1624 – focuses on customer due diligence. This area covers how businesses verify the identity of their customers and assess risk in ongoing relationships.

The second draft, issued under Article 19(9) of the same Regulation, sets out criteria for identifying business relationships, occasional transactions, and linked transactions. It also addresses the determination of lower thresholds. These provisions are relevant for defining when customer due diligence measures must apply and how transactions are categorized under the regulatory framework.

The third draft standard is issued under Article 53(10) of the Anti-Money Laundering Directive – Directive (EU) 2024/1640. It relates to the reporting of material weaknesses. In practice, this concerns how obliged entities, including gaming operators, would report significant deficiencies in their internal controls or compliance systems.

Together, these draft standards form part of the EU’s broader anti-money laundering framework, which aims to harmonize obligations across Member States and sectors.

Deadlines and Participation Process for Gaming Operators

Two separate deadlines have been set by the EU Anti-Money Laundering Authority.

Feedback on the draft Regulatory Technical Standard under Article 53(10) of the Anti-Money Laundering Directive must be submitted by Monday, March 9, 2026. Responses to the two draft standards issued under Articles 28(1) and 19(9) of the Anti-Money Laundering Regulation are due by Friday, May 8, 2026.

The Malta Gaming Authority has encouraged licensees and stakeholders to review the draft texts carefully and to submit their responses directly to the EU authority through the designated consultation channels. It has also invited stakeholders to share written feedback with the Authority itself, which will use this input to inform its continued engagement as the EU legislative process progresses.

According to the regulator, this consultation stage represents an important legislative step for the gaming sector. It marks a point at which the EU-level authority is actively consulting on non-financial activities, including gaming.

Relevance for the Gaming and iGaming Sector

The Malta Gaming Authority has stated that early and informed participation can help ensure that the resulting technical standards remain proportionate and appropriately calibrated to sector-specific risks. For licensed gaming operators, anti-money laundering rules form a core part of regulatory compliance and are subject to ongoing supervision.

The proposed standards address operational areas that directly affect how gaming companies onboard customers, monitor transactions, and manage internal compliance systems. Requirements on customer due diligence and transaction classification can shape how platforms design verification processes. Obligations to report material weaknesses may also influence internal governance and risk management procedures.

By calling for engagement at this stage, the Maltese regulator is positioning its licensees to contribute to the development of detailed technical rules before they are finalized at EU level.

Our Assessment

The Malta Gaming Authority’s notice highlights that the EU Anti-Money Laundering Authority has entered a public consultation phase on three draft Regulatory Technical Standards relevant to the gaming sector. The drafts address customer due diligence, identification of business relationships and transactions, and reporting of material weaknesses under the updated EU anti-money laundering framework. With specific submission deadlines in March and May 2026, licensed operators have a defined window to provide feedback before the standards move further in the legislative process.