Crypto News Round-Up — October 2025

Global cryptocurrency markets saw a flurry of activity in the past day, with regulators, financial institutions and cyber threat analysts making headlines. Notable developments include government intervention in stablecoin projects, emerging blockchain-based hacking methods, and increased institutional crypto adoption. This round-up highlights the key stories driving markets and policy discussions today.

• Chinese Tech Firms Suspend Stablecoin Plans
• North Korean Hackers Hide Crypto Malware in Blockchains
• Federal Reserve to Host Payments Conference on Stablecoins
• Morgan Stanley Expands Crypto Offerings for Clients
• Crypto Exchanges Face Increased Regulatory Scrutiny
• IMF Warns of Systemic Risks from Crypto

Chinese Tech Firms Suspend Stablecoin Plans

Major Chinese technology companies including Ant Group and JD.com have abruptly paused plans to issue their own stablecoins, reportedly after Beijing authorities intervened (Reuters). These firms were preparing to participate in Hong Kong’s new licensing framework for fiat-backed stablecoin issuers established in May. However, top regulators from China’s central bank (PBOC) and cyber agency (CAC) warned against allowing tech giants or brokers to distribute or back digital currencies, prompting the halts (www.reuters.com). The Hong Kong Monetary Authority, which oversees the stablecoin regime, declined to comment on the matter.

(Reuters) reports that the companies were advised to stay out of the stablecoin business to prevent private sector control over digital currencies (www.reuters.com). The move underscores Beijing’s cautious stance on decentralized finance, even as Hong Kong seeks to position itself as a crypto innovation hub.

Why it matters:

• Reflects Chinese regulators’ wariness of decentralized currency initiatives and limits tech-sector involvement (www.reuters.com).
• Calls into question Hong Kong’s effort to attract stablecoin projects; licensing regime may face political constraints.
• Could slow adoption of regulated digital currencies linked to traditional finance in the region (Reuters).

North Korean Hackers Hide Crypto Malware in Blockchains

Cybersecurity researchers have uncovered a novel tactic by North Korean state-sponsored hackers (UNC5342) who are embedding cryptocurrency-stealing malware within public blockchain transactions (TechRadar). According to Google’s Threat Intelligence Group, the attackers exploit the immutable nature of Ethereum and BNB Chain ledgers to hide malicious code inside smart contracts and transaction data (www.techradar.com). When unwitting users execute these contracts, JavaScript payloads download backdoor malware (nicknamed “INVISIBLEFERRET”) onto their systems, all without any direct files or downloads from the attackers themselves (www.techradar.com).

This method—often referred to as “EtherHiding”—marks one of the first known instances where a nation-state leverages blockchain’s immutability for stealth malware. Victims are lured through techniques like fake coding challenges, and once they interact with the tampered contracts, the malicious scripts activate. (TechRadar) warns that because the malicious code resides on-chain, it is effectively permanent unless the original contract creator intervenes.

Why it matters:

• Illustrates a new dimension of cyber-threat: nation-state actors weaponizing blockchain properties to evade detection (www.techradar.com).
• Highlights security risks for developers and users, since malware hidden on immutable ledgers can be nearly impossible to remove.
• Underlines the importance of caution with unknown smart contracts and transactions in blockchain ecosystems (TechRadar).

Federal Reserve to Host Payments Conference on Stablecoins

The U.S. Federal Reserve has announced a one-day conference on October 22 to explore the future of payments, with a special focus on stablecoins and other fintech innovations (Axios). Scheduled speakers include Fed officials and prominent industry leaders, and agenda topics reportedly cover digital tokenization, generative AI in finance, and regulatory considerations for new digital payment methods. The conference follows growing interest in how private stablecoins and central bank digital currencies could reshape financial systems (Axios).

Per (Axios), the event underscores the Fed’s proactive role in shaping crypto-related policy and technology. By bringing together policymakers and private sector experts, the Fed aims to engage on the benefits and risks of blockchain-based payments and set the stage for potential future regulatory guidance.

Why it matters:

• Signals U.S. regulatory focus on stablecoins and digital money – likely a precursor to new policy or guidelines.
• Offers industry participants a forum to influence how crypto innovations are integrated into traditional banking systems.
• Highlights potential paths for employing blockchain and AI technologies in payments, affecting future market development.

Morgan Stanley Expands Crypto Offerings for Clients

Leading U.S. bank Morgan Stanley is reportedly widening cryptocurrency investment options for its high-net-worth clientele (Bloomberg). The firm plans to launch new regulated funds and advisory services that allow clients to gain exposure to Bitcoin and Ethereum through familiar financial products, such as ETF-based vehicles or managed crypto portfolios. This expansion follows recent regulatory approvals that opened crypto markets to institutional flows (Bloomberg).

By offering these services, Morgan Stanley aims to meet rising client demand while keeping crypto exposure within the regulatory framework. According to (Bloomberg), the move reflects a shift in traditional finance: more banks are treating digital assets like any other asset class when structuring investment products.

Why it matters:

• Indicates growing institutional acceptance of cryptocurrencies, lending legitimacy to the asset class (Bloomberg).
• Can channel significant new investment into crypto market, potentially driving price and liquidity.
• Makes crypto accessible to broader segments of investors, not just tech enthusiasts or niche funds.

Crypto Exchanges Face Increased Regulatory Scrutiny

Regulators worldwide are stepping up oversight of cryptocurrency trading platforms amid concerns over compliance and consumer protection. (Bloomberg) reports that U.S. securities authorities have intensified probes into major crypto exchanges for issues like unregistered securities listings and inadequate KYC procedures. At the same time, agencies in Europe and Asia are drafting or enforcing stricter licensing requirements and audit standards for crypto firms.

This week’s developments include discussions of new rules to limit anonymous trading and demands for clearer proofs of reserves. Exchanges are reportedly preparing to implement enhanced identity verification and to submit to more rigorous financial audits. Increased scrutiny is partly a response to past incidents of exchange failures, aiming to bring these trading venues more in line with traditional finance regulations.

Why it matters:

• Tighter oversight could lead to higher compliance costs and operational changes for exchanges.
• Likely improves investor protections by enforcing standards like KYC/AML and reserve disclosures.
• Signals that regulators are moving to integrate crypto platforms into conventional regulatory frameworks (Bloomberg).

IMF Warns of Systemic Risks from Crypto

The International Monetary Fund has issued a new warning about the systemic risks of unregulated cryptocurrency growth (Reuters). Its latest report cautions that while digital assets have become popular investment vehicles, they remain prone to fraud, market manipulation and severe price swings. The IMF urged governments to accelerate regulatory coordination and consider the broader impact of crypto on financial stability (Reuters). The advisory coincided with recent market volatility that saw major coins rapidly change value.

The report emphasizes that without clear oversight, the expanding use of crypto—for example as collateral or savings—could pose risks to banks and investors. By highlighting these concerns, the IMF is effectively calling for tighter rules on stablecoin issuers and crypto exchanges to prevent potential spillovers into the global financial system (Reuters).

Why it matters:

• Reinforces the push for global regulatory frameworks to safeguard against crypto-related shocks (Reuters).
• Counters overly bullish sentiment with reminders of fraud and volatility risks inherent in digital assets.
• Encourages investors to be cautious and do thorough research given possible implications on broader financial stability.

Disclaimer: Cryptocurrency markets remain highly volatile. This round-up is for informational purposes only and does not constitute investment advice. Always do your own research and consider the risks before trading digital assets.

Bottom Line

In summary, recent developments reflect a crypto landscape dominated by regulatory caution and technological evolution. Chinese authorities are reining in stablecoin initiatives, global regulators are closely scrutinizing exchanges, and even international institutions like the IMF are highlighting risks. At the same time, traditional finance firms are moving into crypto, and novel cyber threats are emerging. These stories underscore the sector’s rapid changes and the importance of staying informed and cautious in a volatile market.