🇨🇳 May 2025 Global Blockchain and Cryptocurrency Developments

The blockchain and cryptocurrency sectors are experiencing rapid evolution, driven by technological advancements, regulatory shifts, and increasing global adoption. From Beijing’s ambitious blockchain action plan to innovative financial platforms in Dubai and Singapore, the landscape is marked by both opportunity and complexity. However, challenges such as illegal activities and sophisticated cyber threats persist. This article explores recent developments in the blockchain and crypto space, highlighting key innovations, regulatory efforts, and emerging risks.

Beijing’s Vision for Blockchain Leadership

Beijing has unveiled an ambitious roadmap with the Beijing Action Plan for the Innovative Application and Development of Blockchain (2025–2027), aiming to solidify its position as a global leader in blockchain technology. By 2027, the plan seeks to enhance the capabilities of independently developed blockchain systems to serve as a foundation for China’s national digital infrastructure. Key targets include achieving breakthroughs in next-generation technologies such as blockchain-specific chips, privacy protection mechanisms, cross-chain interoperability, and distributed networking.

The plan outlines specific milestones, including petabyte-level trustworthy storage for blockchain nodes, trustworthy interconnection of tens of thousands of blockchain networks, and mutual recognition of hundreds of millions of digital identities. These advancements are expected to bolster applications in finance, supply chain management, and public services, positioning Beijing as a hub for blockchain innovation. This strategic focus underscores China’s commitment to leveraging blockchain for economic and technological sovereignty.

Regulatory Shifts: Russia’s VAT on Mining Equipment Leasing

In Russia, the Ministry of Finance has proposed a bill to impose value-added tax (VAT) on domestic companies leasing mining equipment or providing real-time computing power to foreign clients. This move aims to close a legal loophole in the taxation of cross-border mining services. With 606 registered miners and 116 mining infrastructure operators, Russia’s crypto mining sector is significant, potentially generating 50 billion rubles ($670 million) in annual tax revenue.

The introduction of VAT reflects Russia’s broader effort to regulate and monetize its growing cryptocurrency mining industry, which has thrived due to low energy costs and favorable infrastructure. However, the tax could increase operational costs for Russian firms serving international clients, potentially affecting their competitiveness in the global market.

Combating Illegal Mining in Malaysia

In Terengganu, Malaysia, authorities recently dismantled an illegal Bitcoin mining operation, seizing 45 mining machines valued at 225,000 ringgit ($51,000). The operation, which illicitly tapped into residential and commercial power supplies, caused monthly electricity losses of 36,000 ringgit ($8,200). This crackdown highlights the persistent challenge of electricity theft in crypto mining, a practice that strains public utilities and raises environmental concerns.

Such incidents underscore the need for robust regulatory frameworks to govern crypto mining activities. Malaysia, like many countries, is grappling with balancing the economic potential of cryptocurrencies with the enforcement of legal and environmental standards.

Cybersecurity Threats: North Korean Hackers Target Kraken

The cryptocurrency exchange Kraken recently exposed a sophisticated infiltration attempt by North Korean hackers posing as job applicants. By conducting multiple rounds of remote interviews under the guise of an engineering candidate, the hackers sought to gain insider access to Kraken’s systems. Kraken’s security team identified inconsistencies in the candidate’s identity and technical responses, ultimately uncovering the state-sponsored operation without alerting the perpetrators.

This incident highlights the growing cybersecurity risks facing the crypto industry, particularly from state-backed actors. Exchanges and blockchain companies must invest in advanced threat detection and employee vetting processes to safeguard sensitive data and infrastructure.

Strategic Partnerships: WLFI and Binance’s Global Vision

In Abu Dhabi, the founders of WLFI—Zach Witkoff, Zak Folkman, and WatcherChase—met with Binance founder Changpeng Zhao (CZ) to discuss the global expansion of cryptocurrencies. The meeting focused on promoting widespread crypto adoption and establishing new industry standards. Despite concerns about potential negative media coverage, CZ emphasized a commitment to constructive collaboration.

Such high-level discussions signal the crypto industry’s push toward mainstream acceptance. Partnerships between innovative projects like WLFI and established players like Binance could drive advancements in accessibility, interoperability, and regulatory compliance.

Maple: Bridging Traditional Finance and DeFi

Launched in 2021, Maple is an on-chain asset management platform that combines expertise from traditional finance and decentralized finance (DeFi). By leveraging blockchain technology, Maple offers innovative solutions for capital markets, enabling efficient and transparent asset management. Its focus on bridging TradFi and DeFi positions it as a key player in the evolving financial ecosystem, catering to institutional and retail investors alike.

Metaplanet’s Bitcoin Investment Strategy

Japan-based Metaplanet Inc. has announced plans to issue 3.6 billion yen ($24.71 million) in zero-coupon bonds to fund additional Bitcoin purchases. The bonds, set to mature on October 31, 2025, will be redeemed at face value, with proceeds primarily sourced from stock subscription rights. Additionally, Metaplanet has established a U.S. subsidiary in Florida with $250 million in registered capital to manage Bitcoin-related funds.

This move reflects a growing trend among corporations to diversify portfolios with Bitcoin as a hedge against inflation and currency devaluation. Metaplanet’s aggressive investment strategy underscores the increasing institutional confidence in cryptocurrencies.

Ant Digital’s Blockchain Innovations in Dubai

At the RWA REAL UP Summit in Dubai on April 30, 2025, Ant Digital Technology, a subsidiary of Ant Financial, launched the Jovay Layer 2 blockchain and the DTVM Stack smart contract platform. The Jovay blockchain aims to enhance financing infrastructure for real-world assets (RWAs), while the Ethereum-compatible DTVM Stack, powered by a large-language model, supports open-source development.

Ant Digital’s initiatives focus on transforming assets like solar energy facilities into tradable blockchain-based instruments, with Hong Kong and Dubai serving as key hubs. These advancements highlight the potential of blockchain to revolutionize industries such as green energy and finance by improving liquidity and transparency.

KuCoin’s Re-Entry into South Korea

Cryptocurrency exchange KuCoin is planning to re-enter the South Korean market after achieving compliance in major jurisdictions like the U.S., EU, China, and India. The exchange has initiated discussions with South Korean regulators to navigate the country’s stringent crypto regulations. Previously, KuCoin was among 22 unregistered exchanges flagged by South Korea’s Financial Services Commission, facing access restrictions.

KuCoin’s compliance efforts reflect the broader challenge of operating in highly regulated markets. South Korea’s cautious approach to crypto underscores the importance of aligning with local laws to gain market access.

Hong Kong’s AI-Web3 Entrepreneurship Hub

Cai Wensheng, founder of Meitu, has acquired a 25-story commercial building in Tin Hau, Hong Kong, for HK$650 million ($83 million) to create an AI-Web3 entrepreneurship center. The facility, named PARK AURA, will feature AI-themed cafes, lecture spaces, shared offices, and studios dedicated to AI and Web3 innovation. Shared office spaces will be offered free to Hong Kong entrepreneurs, fostering a vibrant startup ecosystem.

This initiative positions Hong Kong as a leading hub for AI and blockchain innovation, leveraging its strategic location and business-friendly environment to attract global talent and investment.

Singapore Gulf Bank’s SGB Net

Singapore Gulf Bank (SGB) has launched SGB Net, a real-time multi-currency clearing network tailored for digital asset participants, including crypto exchanges, stablecoin issuers, and market makers. Unlike traditional banking systems reliant on SWIFT, SGB Net enables 24/7 free transfers, enhancing operational efficiency for the global digital economy.

SGB Net’s launch underscores Singapore’s role as a fintech and blockchain innovator, offering infrastructure that supports the scalability and accessibility of digital assets.