Summary of this article
Kraken discussed tokenisation frameworks with SEC’s Crypto Task Force.
CertiK warns $2.5B crypto thefts signal endless hacker battles.
Japan’s finance minister backs crypto with fairer taxation reforms.
Kraken has recently sat down with the US Securities and Exchange Commission's (SEC) Crypto Task Force to explore the future of asset tokenisation and tokenised trading systems, reported Cointelegraph. The meeting was attended by representatives from Kraken's parent company, Kraken Securities, along with the firm's legal advisers.
Kraken's proposal focused on three key points. First, they set out how a tokenised trading system might be constructed, defining its essential components and the transaction lifecycle. Second, they discussed how such a system would align with current federal securities laws, highlighting where regulatory guidance would be needed to facilitate compliance. Third, it highlighted the potential benefits, suggesting that tokenisation could help raise capital and make markets more open and efficient.
Tokenised shares, in particular, have drawn concern, as they can be traded around the clock and may not provide the same protections as traditional stocks.
Earlier this year, Kraken launched its tokenised stock product, known as xStocks, which allows non-US investors to trade American equities at any time. The platform now operates on blockchains such as Solana and BNB Smart Chain.
For now, tokenised shares remain a small part of the market. Together, they are worth about $360 million, a fraction of the $26.5 billion held in tokenised real-world assets overall.
CertiK Forecasts Limitless War With Crypto Thieves After $2.5 Billion Lost
Cryptocurrency protocols are battened down in what CertiK, a blockchain security firm that scans smart contracts for vulnerabilities and assists in identifying them before they can be taken advantage of, refers to as a never-ending war with hackers. Co-founder Professor Ronghui Gu explained that even with the improvements in cybersecurity, attackers just need to hit upon a single flaw in tens of millions of lines of code. He cautioned losses would still be in the billion-dollar bracket next year as both defences and cybercriminals become more powerful.
In the first six months of 2025, hacks, scams and exploits caused losses of $2.47 billion, roughly 3 per cent more than the losses in 2024. While the second quarter saw a decrease with $800 million lost through 144 incidents, down 52 per cent compared to the first quarter, the damage is still substantial overall. The biggest single loss was the $1.4 billion Bybit hack on 21 February, which is now the largest crypto exploit ever.
Cointelegraph reported that attackers are also shifting their focus. In 2024, operational risks such as private key compromises made up nearly half of all incidents. Phishing and social engineering are growing problems, too. This year alone, one wrongly signed transaction cost an investor $3 million in USDT, while another wallet was stripped of more than $900,000 in assets by a phishing scam.
Japan's Finance Minister Supports Crypto As Investment Tool
Japan's Finance Minister Katsunobu Kato has stated that cryptocurrencies have a place in diversified portfolios, with an emphasis on having a secure and stable trading environment.
Addressing the Web3 Conference WebX 2025 in Tokyo, Kato admitted that digital assets are extremely volatile but said that with the right framework, they could become a legitimate investment option. He also said that, with more individuals using cryptocurrencies, the government must look at developing stronger protection for the market.
His remarks are made as the Financial Services Agency urges a new taxation system for crypto investments. Currently, gains are labelled as miscellaneous income and are liable to progressive charges between 15 and 56 per cent. The agency has proposed taxing crypto gains similar to stocks, which would reduce the charge to approximately 20 per cent.
Japan is becoming more facilitative in its attitude toward digital assets. Metaplanet, a bitcoin treasury firm, was recently moved from a small-cap to a mid-cap by FTSE Russell, qualifying it for inclusion in the FTSE Japan Index.
Large financial institutions are also entering blockchain. Japan's SBI Group has joined forces with Chainlink to build financial institution tools and has just signed deals with Circle, Ripple and Startale. Even regulators are ready to authorise yen-denominated stablecoins later this year, highlighting Japan's move to become a digital finance leader.
