Tag: CRYPTOS FoxBusiness.

Industry participants are urging the U.S. Securities and Exchange Commission (SEC) to formalize its crypto guidance on decentralized tools, arguing clearer rules would reduce uncertainty and better align oversight with blockchain infrastructure.

Key Takeaways:

• Over 30 crypto industry participants urged SEC to formalize DeFi guidance.
• Regulatory ambiguity around SEC broker rules threatens blockchain innovation.
• Commissioner Hester Peirce backed rulemaking to align SEC policy with DeFi.

Crypto Industry Participants Press SEC to Formalize DeFi Guidance

The crypto industry is urging the U.S. Securities and Exchange Commission (SEC) to turn recent guidance on decentralized tools into formal rules, a move supporters see as positive for long-term blockchain development. On April 21, DeFi Education Fund and over 30 organizations submitted a letter backing the agency’s position on certain crypto transaction interfaces while pressing for a formal regulatory framework that would provide lasting clarity.

The coalition supported the regulator’s distinction on non-custodial tools, arguing that these interfaces serve as technical infrastructure rather than transaction intermediaries. DeFi Education Fund, a U.S.-based advocacy group, organized the response, while the other firms and organizations signed on as independent supporters. The position also aligns with Commissioner Hester Peirce’s broader push for modernized broker definitions that reflect crypto market structure. The letter stated:

“We therefore respectfully urge the Commission to build upon the Statement through notice-and-comment rulemaking.”

“Specifically, the Commission should consider adopting a principles-based framework that provides clear, objective criteria for when activity falls within the definition of ‘broker,’ iterating on the criteria in the Statement,” the letter added.

Commissioner Peirce reinforced this direction in separate remarks, calling for a permanent overhaul of broker-dealer rules to better align with decentralized technologies. She emphasized that legacy definitions risk misclassifying software providers and infrastructure participants, signaling the need for a durable framework that reflects current crypto market realities. Her position adds weight to the industry’s argument that formal rulemaking, rather than guidance, is essential for long-term regulatory clarity.

Formal Broker Framework Seen as Key to DeFi Expansion

Rulemaking is central to the group’s argument because Staff guidance does not carry the same durability as a formal rule. The letter pointed to continuing debate over how the term “broker” should apply in decentralized markets and argued that infrastructure providers, including validators, data services, and communications networks, should be distinguished from entities that actively intermediate transactions. The signatories warned that regulatory ambiguity could chill blockchain development and reduce efficient market access for investors.

The letter closed with a forward-looking appeal for a more stable, technology-neutral approach. The coalition wrote:

“We are hopeful that formalizing the principles in the Statement into a durable, technology-neutral regulatory framework would provide lasting clarity and reinforce the approach outlined by the Staff, and we look forward to providing additional, detailed commentary in the future.”

In the group’s view, codifying the SEC’s position would reduce uncertainty, limit future reinterpretation, and provide a stronger foundation for decentralized finance development.

Bitcoin climbed above $78,000 on April 22, reaching its highest price in 11 weeks, as a wave of short liquidations and improved macro sentiment following Trump’s ceasefire extension combined to push the asset to a key technical level that had resisted multiple breakout attempts.

Bitcoin rose above $78,000 on April 22 for the first time since early February, touching an 11-week high as easing geopolitical tensions and a concentrated cluster of short liquidations above the level combined to push price through resistance that had turned back multiple attempts in recent weeks. According to Fortune’s April 22 price data, BTC was trading at $78,194 as of 9:15 a.m. ET, up approximately $2,293 from the prior morning.

Bitcoin 11-Week High Fueled by Short Liquidations and Macro Relief

CoinDesk reported that approximately $180 million in short futures positions were sitting above the $78,000 level heading into the session, according to CoinGlass liquidation heatmap data, creating significant upside fuel if price could clear the threshold. The broader catalyst was Trump’s extension of the Iran ceasefire announced on April 21, which lifted risk sentiment across equities and crypto simultaneously. Crypto futures open interest rose more than 4% to $126 billion in the 24 hours surrounding the move, with funding rates flipping positive across most major tokens, signaling renewed demand for leveraged long exposure.

Diana Pires, Chief Business Officer at sFOX, said, “Bitcoin reaching an 11-week high and testing the $78,000 level is being framed as a macro-driven move, but the move appears largely driven by positioning, with a significant amount of short liquidations sitting above the market. This is a squeeze dynamic more than a fundamental shift in demand.”

Altcoins Join the Rally, But the Breadth Tells Its Own Story

The Bitcoin move pulled altcoins higher across the board, with memecoins leading gains and higher-beta assets outperforming. As crypto.news documented, a similar dynamic played out during the earlier $225 million short squeeze in mid-April, where forced buying in derivatives markets accelerated a price move that ultimately failed to hold. The current rally’s altcoin participation pattern drew cautious readings from analysts watching for signs of genuine capital reallocation versus tactical risk-on positioning.

According to Diana, “Participation is expanding into altcoins, but it’s concentrated in higher-beta, more speculative segments. That’s consistent with a short-term risk-on reaction, not a broad reallocation of capital.”

Whether the Move Can Hold Is the Real Question

Bitcoin spent more than 46 consecutive days below $76,000 before this week’s move, building up one of the largest concentrations of short positioning in recent history, as crypto.news tracked. K33 Research head of research Vetle Lunde noted that comparable risk-off regimes with negative funding and rising open interest have historically preceded significant recoveries once short sellers were forced to unwind. That structural setup provided the technical conditions for the current move, but analysts are watching closely whether spot demand can sustain price above $78,000 once the immediate liquidation fuel is exhausted. The FOMC meeting on April 28 and 29 is the next major macro test, with rate cut expectations still largely absent from the near-term calendar.

“What matters now is whether this move can sustain without continued positioning support. Liquidity conditions remain tight, and capital is still selective in how it allocates to risk assets. Until that participation deepens and proves durable, this type of price action is more reflective of short-term positioning than a broader shift in market structure,” Diana explained.

An unregistered overseas crypto exchange, KCEX, continues to operate in South Korea despite a government ban, leveraging a loophole through the iOS App Store. This situation reveals significant gaps in the country’s regulatory framework for virtual asset service providers. As of April 22, 2025, the exchange remains accessible to South Korean users, undermining efforts to enforce financial oversight.

KCEX Unregistered Exchange: Background and Timeline

South Korean financial authorities flagged KCEX for unregistered business activities in August 2024. The exchange, based overseas, never obtained the necessary license from the Financial Services Commission (FSC). Despite this, it continues to attract users through its mobile application.

The timeline of events highlights the challenges regulators face. In 2024, the FSC strengthened rules for virtual asset service providers. They required all exchanges to register with the Korea Financial Intelligence Unit (KoFIU). Non-compliance carries penalties, including blocking access to local markets.

However, KCEX sidestepped these measures. The exchange did not block South Korean IP addresses. Instead, it maintained its app on the iOS App Store. This move allowed users to download and trade freely. The app’s availability on Apple’s platform gives it legitimacy in the eyes of many users.

How the iOS App Store Bypass Works

The bypass relies on Apple’s global distribution system. Apple does not individually vet each app for compliance with foreign financial regulations. Instead, it relies on the app developer’s self-certification. KCEX likely listed its app as available in all regions, including South Korea.

This oversight creates a major enforcement gap. South Korean authorities can block websites and domain names. They can also request internet service providers to restrict access. But they cannot directly remove apps from Apple’s App Store without a formal request to Apple. Such requests take time and often face legal hurdles.

Additionally, users can bypass regional restrictions by changing their App Store account region. This technique requires no technical skill. It makes the ban nearly impossible to enforce at scale.

Regulatory Gaps in South Korea’s Crypto Oversight

South Korea has one of the strictest crypto regulatory environments globally. The Specific Financial Information Act requires all exchanges to register with KoFIU. Exchanges must also implement anti-money laundering (AML) and know-your-customer (KYC) procedures.

Despite these rules, unregistered exchanges thrive. A 2024 report from the FSC found over 30 unregistered overseas exchanges targeting South Korean users. These platforms often offer higher leverage or fewer restrictions than domestic exchanges.

Table: Comparison of Registered vs. Unregistered Exchanges in South Korea

Impact on South Korean Crypto Users

The continued availability of KCEX exposes users to significant risks. Without regulatory oversight, these exchanges may engage in market manipulation. They might also fail to secure user funds. In 2023, several unregistered exchanges collapsed, causing millions in losses for South Korean investors.

Moreover, users face legal consequences. Trading on unregistered platforms violates South Korean law. The FSC has warned that users could face fines or criminal charges. Yet enforcement remains rare, creating a sense of impunity.

Financial experts emphasize the need for better user education. Many traders choose unregistered exchanges for lower fees or access to specific tokens. They often overlook the risks until a problem occurs.

Expert Analysis: Why Enforcement Fails

Legal experts point to jurisdictional issues as the primary barrier. KCEX operates from a country outside South Korea’s legal reach. The FSC cannot issue fines or freeze assets held abroad. International cooperation through bodies like the Financial Action Task Force (FATF) exists but is slow.

Furthermore, technology evolves faster than regulation. Decentralized exchanges (DEXs) and peer-to-peer platforms add another layer of complexity. Even if Apple removes the KCEX app, users can access the exchange via web browsers or alternative app stores.

Dr. Kim Min-ji, a professor of financial law at Seoul National University, notes: “The current regulatory framework assumes a centralized, cooperative environment. The crypto market is neither. Regulators must adopt a more proactive, technology-driven approach.”

Broader Implications for Global Crypto Regulation

The KCEX case is not unique. Similar situations occur in Japan, the United States, and the European Union. Apple and Google face increasing pressure to vet financial apps more rigorously. In 2024, the EU’s Digital Services Act (DSA) began requiring app stores to verify the legal status of financial service providers.

South Korea could adopt similar measures. The FSC has discussed requiring app stores to block unregistered exchanges. However, such a mandate would face legal challenges from Apple and Google. It could also set a precedent for other countries.

Industry observers predict a shift toward self-regulation. Crypto exchanges may form consortiums to verify each other’s compliance. Blockchain analytics firms already offer tools to identify unregistered platforms. These tools could help app stores automate vetting processes.

Conclusion

The KCEX unregistered exchange case highlights the persistent challenge of enforcing crypto regulations in a globalized digital economy. Despite South Korea’s robust legal framework, the iOS App Store loophole allows the exchange to operate freely. This situation underscores the need for international cooperation, technological innovation in enforcement, and greater user awareness. Until regulators close these gaps, unregistered exchanges will continue to pose risks to investors and undermine financial stability.

FAQs

Q1: What is KCEX, and why is it considered unregistered in South Korea?
KCEX is an overseas cryptocurrency exchange that has not registered with South Korea’s Financial Services Commission (FSC) as required by law. It was flagged for unregistered activities in August 2024 but continues to operate.

Q2: How does KCEX bypass South Korea’s ban through the iOS App Store?
The exchange lists its app as available in all regions on Apple’s App Store. Apple does not automatically block apps based on foreign financial regulations, allowing South Korean users to download and use it.

Q3: What risks do users face when trading on unregistered exchanges like KCEX?
Users risk financial loss from potential scams or exchange collapses. They also face legal consequences, including fines or criminal charges, for violating South Korea’s Specific Financial Information Act.

Q4: Can South Korean authorities force Apple to remove the KCEX app?
Yes, but only through a formal legal request. The process is slow and requires international cooperation. Apple may comply if the request is legally sound, but enforcement is not immediate.

Q5: What steps can South Korea take to prevent similar loopholes in the future?
Regulators could mandate app stores to verify the registration status of financial apps. They could also strengthen international partnerships and adopt blockchain-based monitoring tools to detect unregistered platforms.

In its latest report on the Bitcoin market, cryptocurrency analytics company Glassnode stated that the price is retesting critical thresholds and the market has entered a “decision phase.”

According to Glassnode’s analysis, Bitcoin signaled a significant shift in market structure by surpassing the $78,100 level, which has long been considered a crucial reference point, often seen as the boundary between bull and bear regimes.

The report states that the short-term investor cost basis is at $80,100, and this area currently stands out as strong resistance. According to the analysis, if the price rises towards $80,000, more than 54% of investors who bought recently will be in profit. This threshold historically marks the point where uptrends begin to tire and selling pressure increases.

Glassnode data reveals that short-term investors realized profits of up to $4.4 million per hour, roughly three times the average of $1.5 million seen at local peaks earlier in the year. According to the analytics firm, this signals a need for caution in the market.

On the other hand, there are signs of a limited recovery in the institutional sector. The 7-day average flows into Bitcoin ETFs turning positive again indicate a gradual return of institutional demand after a long period of outflows.

Early signs of recovery are also being observed in the spot market. While the cumulative volume delta has moved into positive territory, buyers are reportedly behaving more aggressively, particularly on offshore exchanges. In contrast, derivatives markets are presenting a more cautious outlook. The continued negative perpetual funding rates indicate that short positions are gaining weight in the market. However, this situation could act as “fuel” for an upward movement if spot demand strengthens.

On the volatility front, pressure persists. Both implied and realized volatility remaining low indicates the disappearance of premiums in option pricing, suggesting that investors have not yet taken a clear position on a strong direction.

According to Glassnode, from a technical perspective, the $80,000 level acts as mechanical resistance in upward movements, but if the price falls back to $75,000, there is a risk that downward movements will accelerate.

*This is not investment advice.

Quantum computing is no longer a distant theory, as early signals now suggest crypto holders may soon face a silent race to secure their funds.

The Coinbase advisory board has now noted that a quantum computer capable of breaking encryption remains over a decade away.

As the picture became clearer, attention shifted toward the “harvest now, decrypt later” risk model. This means exposed keys today may become targets once quantum capability arrives.

Around 6.9 million Bitcoin [BTC], or 32% of the supply, already sits in exposed wallets.

This creates uneven risk, where older wallets face higher vulnerability. As a result, holders may need to migrate funds within a proposed three-year window, which may reshape behavior and network activity.

Blockchain responses to quantum risk begin to diverge

Quantum risk is pushing blockchains into early preparation, which is reshaping how networks approach long-term security. Bitcoin is exploring new address formats, though it has not committed to a full upgrade, which reflects cautious coordination.

As this unfolds, Ethereum [ETH] has outlined a detailed migration roadmap, which may improve scalability alongside stronger security.

Meanwhile, Solana [SOL], Algorand, and Aptos have begun rolling out quantum-resistant options, which signals faster adaptation among newer chains.

Layer 2 networks like Optimism [OP] have also introduced transition timelines, which adds clarity to execution.

This uneven progress creates divergence, where some networks move faster than others. Over time, this gap may influence capital flows, as users and developers shift toward ecosystems with clearer upgrade paths.

Execution risk drives quantum readiness

The focus has shifted from quantum capability to execution risk, which now drives market perception. Post-quantum cryptography already exists, yet adoption speed remains the key challenge.

As this becomes clearer, readiness starts to diverge, since Algorand and Aptos move faster than major networks.

Meanwhile, Ethereum and Solana still use validator signatures that aren’t secure against future threats, which increases risks by making networks vulnerable to delays in upgrades, problems with validators, and possible security issues.

As markets process this shift, price impact remains muted in the short term, since no immediate threat exists. However, medium-term volatility may rise, as news around breakthroughs or upgrades shapes sentiment.

Over time, assets may develop a safety premium, as investors favor networks with proven migration paths. This dynamic shifts valuation toward crypto-agility, where faster upgrades may attract capital and strengthen long-term positioning.

Final Summary

• Bitcoin faces rising quantum risk, as exposed wallets and migration pressure begin to reshape long-term security and user behavior.
• Ethereum and Solana show growing divergence, as quantum upgrade readiness starts to drive valuation and capital flows.

Crypto protocols have lost more than $606 million to hacks and exploits in just the first 18 days of April 2026, making it the single worst month for theft in the industry since the $1.4 billion Bybit breach in February 2025, according to data from DefiLlama.

Crypto protocols have lost more than $606 million to hackers across 12 separate incidents in just 18 days of April 2026, according to data tracked by DefiLlama. Yahoo Finance reported the figure from BeInCrypto’s analysis, confirming that April has already become the worst month for crypto theft since February 2025, when the Bybit breach alone accounted for $1.4 billion.

April 2026 Crypto Hacks Dwarf the Entire First Quarter

The scale of April’s damage is stark in context. The entire first quarter of 2026 saw $165.5 million in losses across a relatively quiet stretch. April’s $606 million total arrived in under three weeks, making the month 3.7 times larger than Q1 combined and pushing 2026’s year-to-date theft total to approximately $771.8 million across 47 separate incidents. Two exploits account for nearly all of it. The $285 million Drift Protocol attack on April 1, later attributed to North Korea’s Lazarus Group, and the $292 million KelpDAO breach on April 18, also linked to Lazarus, together represent roughly 95% of the month’s losses and approximately 75% of everything stolen in crypto in 2026 so far. As crypto.news reported, the KelpDAO exploit alone triggered over $10 billion in Aave outflows and sent shockwaves across more than 20 connected protocols.

The Attack Frequency Problem Is Getting Worse

Beyond the dollar totals, the pace of attacks is accelerating in a way that concerns security researchers as much as the individual incident sizes. DeFi recorded 47 separate incidents in the first four and a half months of 2026, compared with 28 over the same period in 2025, a 68% year-over-year increase in attack frequency. The shift in attack methods is equally significant. As crypto.news documented, April’s exploits cut across smart contract vulnerabilities, infrastructure attacks, and social engineering campaigns, including AI-driven attacks on wallets like Zerion. The diversification of attack vectors means that technical audits and code reviews alone are no longer sufficient protection for protocols with significant TVL. “None of these accounts for the collateral damage seen across TVL, user trust, valuations, and the space’s morale. DeFi remains a niche market until risk can be properly priced,” an analyst wrote in BeInCrypto’s coverage.

What the April Hack Surge Means for Crypto Markets

Markets have already begun pricing in what analysts are calling a “security risk premium” on DeFi assets. As crypto.news tracked, crypto’s cumulative hack losses have now crossed $17 billion over the past decade, with attackers increasingly pivoting away from smart contract bugs toward private keys, signing infrastructure, and human-layer social engineering. Institutional players are responding with emergency rate limits and frozen bridge flows, while Jefferies has warned the string of marquee hacks could temporarily slow Wall Street’s appetite for DeFi tokenization projects. If even one more mid-size exploit occurs before April 30, the month’s total could approach $700 million, according to DefiLlama data cited by BeInCrypto.

DefiLlama’s hacks tracker shows the attack frequency running at approximately one incident every 2.9 days in 2026, a pace researchers say reflects a growing attack surface driven by DeFi TVL exceeding $120 billion and the proliferation of cross-chain bridge infrastructure.

Bitcoin is reasserting its absolute control over the cryptocurrency market, with its market cap dominance breaking past the 60% threshold for the first time in 2026.

Bitcoin’s dominance ($BTC.D) has surged to 60.63%, leaving the broader altcoin market in the dust.

The metric, which tracks Bitcoin’s share of the total overall crypto market capitalization, had been consolidating in the 58% to 60% range throughout the first quarter of the year before staging a massive breakout in late April.

“The broader promise of crypto has failed”

The rest of the market is struggling to keep pace. This has prompted some to question the viability of the broader altcoin sector.

Veteran trader Bob Loukas has said that Bitcoin didn’t even need a euphoric, record-breaking run to crush its competitors this cycle.

“Bitcoin dominance bottomed out for the Cycle above 50%, without Bitcoin doing anything extraordinary, highlights the broader promise of Crypto has mostly failed,” Loukas stated. The general trend points to a market heavily concentrated on the flagship asset.

$BTC bulls eyeing $80K

Bitcoin’s dominance surge is happening in tandem with a powerful price recovery.

Bitcoin has now shaken off its bearish momentum after truly catastrophic losses in early 2025.

For most of March, Bitcoin has been seeing some volatile price action, with the top coin fluctuating between $62,000 and $72,000. It has recorded a series of higher highs and higher lows.

Currently trading around $78,900 (up over 3.3% on the daily session), Bitcoin is now on the verge of a major psychological breakout. It remains to be seen whether the flagship coin can successfully reclaim the pivotal $80,000 level in the coming days.

Crypto Rover, a prominent YouTuber and Bitcoin analyst, shares why he believes this may be one of the best Bitcoin bear markets ever.

The market pundit discussed this while sharing historical data surrounding drawdowns from previous Bitcoin bear markets. Specifically, the data confirms that despite the overly sour sentiment, Bitcoin’s lowest drawdown so far this season has been an improvement from past bearish phases.

Key Points

• Crypto Rover calls the current Bitcoin downturn one of the best bear markets ever.
• The ongoing bear market began around October 2025 and has lasted about seven months, with weak market sentiment.
• Bitcoin trades around $78,000, about 38% below its $126,000 all-time high in this cycle.
• The lowest price so far is $59,930 in February 2026, marking a 52% drawdown from the peak.
• Past cycles saw deeper losses, with declines between 70% and 85% before reaching their final bottoms.

Current Bitcoin Drawdown Remains Historically Low

The ongoing downturn began around October 2025 and has now stretched to roughly seven months, pushing sentiment into bearish territory. Despite this negative mood, the data suggests that the damage remains relatively limited.

Crypto Rover’s chart shows that the present cycle has only recorded drawdowns of about 42% to 52% more than 190 days after the all-time high. Even as the timeline progresses, the decline remains moderate.

Specifically, at the time of the snapshot on April 15, 2026, Bitcoin traded at $74,836. This price indicated that the cycle’s drawdown stood at 40% from the all-time high of $126,000, attained in early October 2025.

At press time, Bitcoin changes hands at $78,000, which implies a 38% drop from the cycle high. The lowest point so far came in early February 2026, when the price fell to $59,930. This level represents a 52% decline from the peak. Even at this lowest point, the drawdown remains much less severe than what previous cycles experienced.

If the $59,930 level ultimately marks the bottom of this cycle, it would confirm that Bitcoin avoided the deeper corrections typical of past bear markets. Notably, the current cycle has not reached a 55% decline at any stage, confirming how this downturn has been unusually mild.

Historical Data Around Past Drawdowns

For context, the chart compares different Bitcoin cycles by using percentage drops instead of actual prices. Each cycle starts at Day 0, which marks the exact day Bitcoin reached its all-time high for that period.

From there, the chart calculates the decline by dividing the current price by the all-time high price, minus 100%. In this model, 0% means the price is still at its peak, while negative values show how far it has fallen.

Historical comparisons confirm why Crypto Rover called this phase one of the best Bitcoin bear market phases. Earlier cycles consistently recorded drawdowns between 70% and 85%. By 300 to 400 days after their peaks, most past cycles had already dropped between 70% and 80%.

The 2015 cycle hit $198, an 82% decline. The 2018 cycle reached a low of $3,135, translating to an 84% drop. Meanwhile, the 2022 cycle ended at $15,460, with a drawdown of roughly 77%. These declines occurred over periods ranging from 300 to 700 days, with prices remaining deeply suppressed for extended durations.

A Mild Bitcoin Bear Market… For Now

Essentially, Bitcoin’s current downturn remains historically mild. The data shows that the asset has avoided the extreme losses recorded in past cycles. This confirms the claim that the ongoing bear phase ranks among the least damaging on record.

However, there is still uncertainty. While the current drawdown sits at 38%, the cycle has not yet fully concluded. Bitcoin’s future price action could still push prices to new lows, potentially changing the narrative. For now, though, the evidence indicates that this is one of the most resilient bear markets Bitcoin has ever experienced.