US bank regulators have provided new guidance for banks that are considering providing crypto custody services, and have also cautioned them of the special risks associated with crypto.
The US Federal Reserve, the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC) announced in a joint statement that while banks can hold digital currencies, such as Bitcoin or Ethereum on customers' behalf, they should have robust risk management policies.
The regulators said that securing cryptographic keys, whether offline or online storage, is a technical and security issue. Loss or theft of the keys would result in irreparable losses, and, therefore, secure storage is a necessary requirement, reports Cointelegraph.
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The regulators further said that institutions are supposed to be in compliance with current laws addressing anti-money laundering, fraud monitoring, and data security.
Unauthorized Crypto Trading in Hungary Now Punishable by Prison
Hungary has amended its Criminal Code to impose prison sentences on individuals and service providers involved in unauthorized cryptocurrency trading, including the use of unlicensed crypto exchanges. As reported by Cointelegraph, the new laws came into effect on July 1 and introduce two new criminal offences related to crypto.
Individuals using an unlicensed crypto exchange could face up to two years in prison for trades valued between 5 million and 50 million forints (around $14,600 to $145,950). The sentence increases to three years for trades up to 500 million forints and up to five years for transactions above that.
Crypto service providers operating without authorisation also face strict penalties. Providing unauthorised exchange services involving less than 50 million forints could attract a prison term of up to three years. This rises to five years for trades valued between 50 million and 500 million forints and eight years for anything above.
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According to Cointelegraph, the laws have caused confusion among crypto businesses. Hungary’s Supervisory Authority for Regulatory Affairs (SZTFH) has been given 60 days to set out compliance guidelines, but no framework has been issued yet.
UK-based fintech firm Revolut initially halted all crypto services in Hungary due to the legislation. The company has since reinstated crypto withdrawals and stated that it is pursuing a license under the European Union’s crypto regulatory system.
Bitcoin-Fuelled Darknet Marketplace Abacus Disappears In Suspected Exit Scam
Abacus Market, one of the most active darknet marketplaces that relied heavily on Bitcoin transactions, has suddenly gone offline, raising strong suspicion of an exit scam. The platform, which dominated nearly 70 per cent of the Bitcoin-based darknet trade, became inaccessible in early July 2025. Users can no longer access either its dark web site or the clearnet mirror.
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According to Cointelegraph, signs of trouble began in late June this year when users faced delays in withdrawing their funds. The marketplace’s administrator, known as “Vito,” had claimed that a sudden spike in user activity and a denial-of-service attack were to blame. However, there was a sharp decline in daily deposits, falling from over $200,000 to just around $13,000 within days, suggesting users quickly lost trust in the platform.
Abacus Market had become a central hub for trading illegal items, including drugs and unlicensed pharmaceuticals. It accepted both Bitcoin and the privacy coin Monero for transactions. The shutdown follows a wave of closures among similar platforms, some of which were taken down by law enforcement. However, in Abacus’s case, there has been no official seizure notice or confirmation of any operation against it.
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Analysts say that top darknet markets are often vulnerable to either law enforcement crackdowns or exit scams, as operators face growing risks of exposure. In this instance, many believe the administrators have vanished with the remaining funds, leaving users with little chance of recovery.
