This Week in Crypto: Adoption, Crackdowns, and a Major Hack

The last few days have brought an intense mix of developments for the crypto world, from record profits and institutional endorsements to renewed regulatory crackdowns and high-stakes hacks.

As traditional finance dives deeper into digital assets, states are increasingly forced to choose between embracing, controlling, or rejecting crypto. Here’s a breakdown of the biggest headlines, what they mean – and why they matter.

BlackRock’s Bitcoin ETF Is Now Its Most Profitable Product

BlackRock’s spot Bitcoin ETF has officially become the company’s biggest source of ETF-related income. Launched earlier this year, the fund has attracted massive investor interest, helping it grow faster than most traditional ETFs.

This is a powerful signal that Bitcoin is no longer seen only as a risky asset. Instead, it is now part of the mainstream financial system and a key profit driver for the world’s largest asset manager.

China Reaffirms That All Virtual Currencies Are Illegal

China’s central bank repeated its strict position on digital assets. Officials stated clearly that virtual currencies are not real money and that any activities involving them are illegal.

The government is especially worried about fraud, illegal fundraising, money laundering, and the use of stablecoins. Despite crypto’s global growth, China continues to fully reject it and vows to strengthen its crackdown.

Kazakhstan Creates a State Crypto Reserve

Kazakhstan’s central bank announced it has created a national crypto reserve and may invest up to $300 million in crypto-related assets. Rather than directly buying coins like Bitcoin, the country plans to invest through financial instruments connected to the crypto industry.

This move is part of a broader strategy to diversify national reserves and participate in the digital financial system without taking excessive risk.

Uzbekistan Will Allow Stablecoins for Payments in 2026

Uzbekistan announced that stablecoins will be approved as a form of payment starting January 1, 2026. The country will introduce this change through a controlled testing environment, also known as a regulatory sandbox. It will allow both stablecoin payments and tokenized asset issuance as part of a broader digital transformation plan.

Upbit Exchange Hacked: $36 Million in Assets Stolen

Major crypto exchange Upbit suffered a security breach that resulted in the loss of around $36 million worth of assets, most of them based on the Solana network. After the attack, the exchange moved remaining funds to cold storage and promised to compensate affected users.

Still, the incident has raised fresh concerns about the safety of centralized exchanges and the risks of storing large amounts of funds on hot wallets.

JPMorgan Closes Accounts Linked to Crypto Companies

JPMorgan reportedly closed accounts tied to crypto firms, making it harder for some digital asset businesses to access banking services. This move is being seen as an attempt to limit the influence and growth of crypto companies in traditional financial systems. It highlights the ongoing tension between old financial institutions and the new digital-asset industry.

European Central Bank Warns About Stablecoins

The European Central Bank (ECB) issued a strong warning that stablecoins could pose a serious risk to global financial stability. According to the ECB, widespread use of private stablecoins could weaken central bank control over money, disrupt payment systems, and increase the risk of sudden financial shocks.

Grayscale Applies for a Spot Zcash ETF

Grayscale filed an application to launch a spot ETF for Zcash, a privacy-focused cryptocurrency. If approved, it would be one of the first ETFs tied to a privacy coin. This could expand institutional interest in digital assets beyond Bitcoin and Ethereum, although it may also face strong regulatory resistance.

Bolivia Moves Toward Stablecoin Integration

Bolivia plans to integrate stablecoins into its national financial system as part of broader economic reforms. The government sees digital assets as a way to improve transactions, attract foreign investment, and stabilize parts of the local economy during difficult financial conditions.

Bitcoin Capitulation May Signal a Market Bottom

Analysts noticed that a significant number of Bitcoin holders are selling at a loss, a behavior known as short-term capitulation. Historically, this kind of event often appears near the bottom of a market cycle. While not guaranteed, it has previously preceded strong price recoveries, making some investors cautiously optimistic.

About Paybis

Paybis is a global cryptocurrency exchange platform that provides fast, secure, and user-friendly digital asset transactions. Founded in 2014, the company specializes in fiat-to-crypto and crypto-to-fiat conversions, enabling users to buy, sell, and swap Bitcoin, Ethereum, and other cryptocurrencies using various payment methods, including credit/debit cards, bank transfers, and e-wallets.

With a strong focus on security and compliance, Paybis is registered with regulatory authorities and implements industry-leading AML/KYC procedures. The platform is known for its intuitive interface, 24/7 customer support, and competitive exchange rates, making it a preferred choice for both beginners and experienced traders.

Summing Up

This week shows how divided the crypto world still is. While major institutions like BlackRock and some governments are moving deeper into digital assets, others remain firmly against them. At the same time, security remains a major concern after another high-value hack.

One thing is clear: crypto is no longer on the sidelines. Whether through ETFs, stablecoins, reserves, or regulations, digital assets are now shaping global finance in real and lasting ways.

Written by

Rem Vasilenko

Rem Vasilenko is a Growth Operations Manager at Paybis. With a keen interest in FinTech, Rem brings a unique perspective to the evolving digital finance landscape. He combines his passion for FinTech with his marketing and business skills to drive innovative strategies. Find him on LinkedIn.