A dormant Bitcoin whale moved $116 million of the cryptocurrency ahead of the Fed’s key interest rate decision as crypto traders braced for volatility in global markets.
Representatives of European Union member states reached an agreement on Wednesday in the Council of the EU to move forward with the controversial “Chat Control” child sexual abuse regulation, which paves the way for new rules targeting abusive child sexual abuse material (CSAM) on messaging apps and other online services.
“Every year, millions of files are shared that depict the sexual abuse of children… This is completely unacceptable. Therefore, I’m glad that the member states have finally agreed on a way forward that includes a number of obligations for providers of communication services,” commented Danish Minister for Justice, Peter Hummelgaard.
The deal, which follows years of division and deadlock among member states and privacy groups, allows the legislative file to move into final talks with the European Parliament on when and how platforms can be required to scan user content for suspected child sexual abuse and grooming.
The existing CSAM framework is set to expire on April 3, 2026, and is on track to be replaced by the new legislation, pending detailed negotiations with European Parliament lawmakers.
EU Chat Control laws: What’s in and what’s out
In its latest draft, the Council maintains the core CSAM framework but modifies how platforms are encouraged to act. Online services would still have to assess how their products can be abused and adopt mitigation measures.
Service providers would also have to cooperate with a newly-established EU Centre on Child Sexual Abuse to support the implementation of the regulation, and face oversight from national authorities if they fall short.
While the latest Council text removes the explicit obligation of mandatory scanning of all private messages, the legal basis for “voluntary” CSAM detection is extended indefinitely. There are also calls for tougher risk obligations for platforms.
To end the Chat Control stalemate, a team of Danish negotiators in the Council worked to remove the most contentious element: the blanket mandatory scanning requirement. Under previous provisions, end-to-end encrypted services like Signal and WhatsApp would have been required to systematically search users’ messages for illegal material.
Yet, it’s a compromise that leaves both sides feeling shortchanged. Law enforcement officials warn that abusive content will still lurk in the corners of fully encrypted services, while digital rights groups argue that the deal still paves the way for broader monitoring of private communications and potential for mass surveillance, according to a Thusday Politico report.
Lead negotiator and Chair of the Committee on Civil Liberties, Justice and Home Affairs in the European Parliament, Javier Zarzalejos, urged both the Council and Parliament to enter negotiations at once. He stressed the importance of establishing a legislative framework to prevent and combat child sexual abuse online, while respecting encryption.
“I am committed to work with all political groups, the Commission, and member states in the Council in the coming months in order to agree on a legally sound and balanced legislative text that contributes to effectively prevent and combating child sexual abuse online,” he stated.
The Council celebrated the latest efforts to protect children from sexual abuse online; however, former Dutch Member of Parliament Rob Roos lambasted the Council for acting similarly to the “East German era, stripping 450 million EU citizens of their right to privacy.” He warned that Brussels was acting “behind closed doors,” and that “Europe risks sliding into digital authoritarianism.”
Telegram founder and CEO Pavel Durov pointed out that EU officials were exempt from having their messages monitored. He commented in a post on X, “The EU weaponizes people’s strong emotions about child protection to push mass surveillance and censorship. Their surveillance law proposals conveniently exempted EU officials from having their own messages scanned.”
The latest movement on Chat Control lands in the middle of a broader global crackdown on privacy tools. European regulators and law‑enforcement agencies have pushed high‑profile cases against crypto privacy projects like Tornado Cash, while US authorities have targeted developers linked to Samurai Wallet over alleged money‑laundering and sanctions violations, thrusting privacy‑preserving software into the crosshairs.
Session president Alexander Linton told Cointelegraph that regulatory and technical developments are “threatening the future of private messaging,” while co-founder Chris McCabe said the challenge was now about raising global awareness.
Terraform Labs co-founder Do Kwon asked a US judge to cap his prison time at five years for his role in the collapse of the Terra ecosystem, which erased about $40 billion from crypto markets in 2022.
In a court filing on Wednesday, Kwon argued that a longer term would be excessive given the punishment he has already served and the penalties he has agreed to accept, according to Bloomberg.
Kwon pleaded guilty in August to two counts of wire fraud and conspiracy to defraud after being extradited from Montenegro, where he had been detained. His lawyers said he had spent almost three years behind bars, “with more than half that time in brutal conditions in Montenegro,” and that he had already paid a heavy personal and financial price.
Under the plea agreement, US prosecutors agreed not to seek a sentence longer than 12 years. However, the defense called anything beyond five years “far greater than necessary” to achieve justice. Kwon also agreed to forfeit more than $19 million along with several properties as part of the deal.
Kwon to face prison time in South Korea
After the US sentencing, Kwon’s legal troubles will not be over. Prosecutors in South Korea are pursuing a separate case tied to the same events and are seeking up to 40 years in prison.
Kwon is scheduled to be sentenced by US District Judge Paul Engelmayer in Manhattan on Dec. 11. Prosecutors are expected to submit their own recommendation in the coming days.
After the 2022 Terra crash, Kwon’s whereabouts were largely unknown until Montenegrin authorities arrested him for using falsified travel documents. He served four months in prison there before US and South Korean officials both petitioned Montenegro for extradition, which was complicated by challenges in the country’s lower courts.
Kwon is not the only crypto-related figure who has not gotten off. In 2024, a federal judge sentenced former FTX CEO Sam Bankman-Fried to 25 years in prison. Earlier this month, the case headed back to court as the former CEO challenged his conviction and sentence in a US appeals court, where his lawyers argued that he was denied a fair trial.
The defense said the jury never heard evidence suggesting FTX remained solvent and claims an early narrative that customer funds were stolen shaped the case before Bankman-Fried could properly defend himself.
Australia’s government has introduced a new bill that will regulate crypto platforms under existing financial services laws after an industry consultation saw cautious support for the legislation.
Assistant Treasurer Daniel Mulino introduced the Corporations Amendment (Digital Assets Framework) Bill 2025 on Wednesday, which would require crypto companies such as exchanges and custody providers to obtain an Australian Financial Services License (AFSL).
“Across the world, digital assets are reshaping finance,” Mulino told the House on Wednesday. “Australia must keep pace. If we get this right, we can attract investment, create jobs and position our financial system as a leader in innovation.”
Daniel Mulino introducing the bill to the House on Wednesday. Source: YouTube
The Treasury launched a consultation over a draft of the bill in September, which Mulino told crypto conferencegoers was “the cornerstone” of the Albanese Government’s crypto roadmap released in March.
The local crypto industry largely supported the draft legislation, but many told the consultation that the bill needed further clarity and simplification.
New bill to include safeguards for crypto held for clients
Mulino told the House it’s currently possible for a company to hold an unlimited amount of client crypto “without any financial law safeguards,” adding the risks of scams or frauds like FTX “cannot be ignored.”
“This bill responds to those challenges by reducing loopholes and ensuring comparable activities face comparable obligations, tailored to the digital asset ecosystem,” he said.
Currently, crypto platforms that simply facilitate trading only need to register with the Australian Transaction Reports and Analysis Centre, which has 400 registered crypto exchanges, many of which are inactive.
The legislation would focus on the companies that hold crypto for customers, “rather than the underlying technology itself,” Mulino added. “This means it can evolve as new forms of tokenisation and digital services emerge.”
Crypto bill adds two new license types, exempts small players
The bill amends the Corporations Act to create two new financial products, a “digital asset platform” and a “tokenized custody platform,” both of which will need an AFSL.
The license will register the platforms with the Australian Securities and Investments Commission. Currently, only exchanges that sell “financial products,” such as derivatives, must register.
Mulino said anyone “advising on, dealing in, or arranging for others to deal in” crypto will be treated as providing a financial service that requires a license.
Under the bill, crypto and custody platforms must meet ASIC’s minimum standards for transactions, settlements and holding customer assets. They must also give a guide to clients explaining their service, fees and risks.
Mulino said the bill exempts “small-scale” companies from licensing, those with less than 10 million Australian dollars ($6.5 million) in transaction volume in 12 months, along with those that deal or advise on platforms “incidental to their main, non-financial activities.”
The bill outlines an 18-month grace period on licensing, which Mulino said gives “relief for businesses trying to do the right thing.”
The bill is likely to quickly pass the House, where Prime Minister Anthony Albanese’s center-left Labor Party holds a 94-seat majority. It will then head to the Senate, where Labor may need the support of the crossbench and opposition to pass it.