Crypto regulation in the world: weekly digest #146
USA
The US Office of the Comptroller of the Currency (OCC) has issued new guidance that significantly expands the ability of national banks and federal savings associations to offer cryptocurrency services to their clients. The OCC’s Interpretive Letter №1184 confirms that national banks and federal savings associations can provide a broad range of crypto-related services. These include buying and selling digital assets on behalf of customers, custody services (safekeeping and secure storage of crypto), facilitating crypto-to-fiat exchanges, transaction settlement, trade execution, recordkeeping, valuation, tax reporting, and compliance services.
Banks are allowed to outsource crypto-asset activities, such as custody and execution services, to third-party providers, provided these partners adhere to robust risk management and internal controls. Sub-custodians must meet the same standards as the banks themselves to ensure customer asset protection. The OCC rescinded previous requirements for banks to seek supervisory non-objection before engaging in crypto activities. This eliminates a major regulatory hurdle and allows banks to offer digital asset services without waiting for special approval, provided they maintain safe and sound practices. Banks can now act directly on customer instructions to buy or sell crypto held in custody, making it easier for clients to manage their digital assets through familiar banking channels.
While the OCC has opened the door for banks to engage in crypto activities, it emphasizes that all such services must be conducted in a safe, sound, and compliant manner. Banks are expected to have strong internal controls and risk management frameworks in place, especially when working with third-party providers.
The OCC’s updated stance is part of a broader move among US regulators. The Federal Reserve has also dropped its previous requirements for state member banks to provide advance notice before engaging in crypto activities, and the FDIC has issued similar guidance for institutions under its supervision. This guidance signals that crypto is no longer a fringe or taboo activity for regulated banks. With clear rules in place, banks can now integrate digital asset services alongside traditional offerings, potentially accelerating mainstream adoption of crypto in the US financial system.
Kuwait
Kuwait has experienced a significant reduction in electricity consumption following a major crackdown on illegal cryptocurrency mining operations. Authorities targeted the Al-Wafrah region, where more than 100 homes were suspected of hosting crypto mining rigs, some consuming over 20 times the electricity of an average Kuwaiti household. After the raids, energy use in Al-Wafrah dropped by 55% almost overnight.
Kuwait is currently facing a severe power crisis, exacerbated by rapid population growth, urban development, soaring summer temperatures, and delayed maintenance at power plants. The country’s cheap electricity-among the lowest rates globally-has made it attractive for crypto miners, despite a ban on cryptocurrency trading and, more recently, mining itself. The Ministry of Interior has labeled crypto mining as an «unlawful exploitation of electrical power», warning that it can cause outages impacting residential, commercial, and service areas, and posing a direct risk to public safety.
Authorities raided approximately 100 homes in Al-Wafrah, with some using more than 20 times the electricity of a typical home. Nationally, the government has identified over 1,000 illegal crypto mining locations and questioned more than 100 individuals as part of ongoing investigations.
In 2023 Kuwait has implemented one of the most comprehensive bans on cryptocurrency activities in the world. The ban was implemented on July 20, 2023, by the Capital Markets Authority and covers all transactions where cryptocurrencies are used as payment instruments or methods, investments, and digital assets mining.
Germany
German law enforcement, led by the Federal Criminal Police Office (BKA) and the Frankfurt Public Prosecutor’s Office, conducted a major operation on April 30, 2025, targeting the cryptocurrency platform eXch. Authorities seized the platform’s German server infrastructure, more than 8 terabytes of data, and cryptocurrency assets valued at approximately €34 million ($38.2 million) in Bitcoin, Ether, Litecoin, and Dash.
The operation resulted in the shutdown of eXch’s online infrastructure and confiscation of both hardware and digital assets. The seized assets represent one of the largest digital currency confiscations in BKA history, and the servers and data are expected to aid ongoing investigations into cybercrime and money laundering.
The platform allegedly facilitated money laundering, including laundering a portion of the $1.46 billion stolen in the Bybit hack, which has been attributed to North Korea’s Lazarus Group. Investigators estimate that eXch processed about $1.9 billion in cryptocurrencies since its inception, much of it suspected to be of criminal origin. eXch was specifically advertised as not implementing anti-money laundering (AML) or know-your-customer (KYC) measures, making it attractive for illicit use.
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