Tether has worked with U.S. authorities to block wallets allegedly linked to Venezuelan oil trade sanctions evasion involving PdVSA. The company’s actions have intensified scrutiny of stablecoins, even as USDT holds its $1.00 peg with a market cap of $186.72 billion and 24-hour trading volume of $37.45 billion. These enforcement-aligned freezes are prompting debate over stablecoin compliance and future regulatory expectations.

On January 11, 2026, India's Financial Intelligence Unit announced new KYC rules requiring crypto exchanges to collect customer selfies, geographic coordinates and bank verification via the penny drop method. The guidelines also ban mixing services and anonymous tokens, tighten reporting duties under the Prevention of Money Laundering Act, and require regular KYC updates based on risk. Exchanges must register as reporting entities, obtain PAN and additional ID documents, and use liveness detection software to confirm users' physical presence.

Crypto exchanges that integrate external liquidity providers can access deep order books, tighter spreads and faster execution without building costly in-house market making systems. By connecting through APIs, platforms reduce time to market, support more assets and networks, and lower operational and counterparty risks. This approach helps exchanges deliver smoother user experiences and improve long-term trader retention.

US spot Bitcoin and Ether ETFs saw $749.6 million in net outflows between January 6 and January 9, after a near $700 million inflow on January 5. Bitcoin funds led with $681 million in redemptions, while XRP and Solana ETFs drew $38.1 million and $41.1 million in fresh capital.

Americans have lost more than $333 million to scams conducted through crypto ATMs, with $240 million disappearing in the first half of 2025. In response, cities like Spokane and Stillwater have passed local bans, while several other states and municipalities are weighing restrictions or tighter oversight. Industry participants and legal experts argue the machines expose deeper gaps in banking access, even as authorities focus on their role in fast, irreversible fraud.

On January 9, the Tennessee Sports Wagering Council ordered Kalshi, Polymarket and Crypto.com to immediately stop offering sports-related contracts to state residents and refund all customer funds by Jan. 31, 2026. Regulators allege the CFTC-registered platforms are running unlicensed sports wagering in violation of the Tennessee Sports Gaming Act and warn that noncompliance could trigger civil penalties, criminal referrals and potential gambling-promotion charges.

Brazilian exchange Mercado Bitcoin has released a report projecting that Bitcoin’s market capitalization will more than double by the end of 2026 to reach 14% of gold’s market value. The exchange also expects stablecoin capitalization to climb to $500 billion and altcoin ETFs, led by XRP and Solana products, to see strong institutional inflows.

Nasdaq Inc. and CME Group Inc. plan to relaunch the Nasdaq CME Crypto Index (NCI™) on January 8, 2026, positioning it as a renewed benchmark for institutional participation in digital assets. The index, which includes major cryptocurrencies such as Bitcoin and Ethereum, is expected to support market transparency and infrastructure as Bitcoin trades above $90,000 with a market cap of $1.81 trillion. Analysts suggest the move could encourage new institutional-grade crypto products and reinforce the sector's overall maturity.