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Bitcoin News Update: As Major Crypto Firms Target Affluent Investors, Authorities Increase Scrutiny

Bitcoin News Update: As Major Crypto Firms Target Affluent Investors, Authorities Increase Scrutiny

Bitget-RWA2025/11/28 11:34
By:Bitget-RWA

- Binance launches "Prestige" to target high-net-worth clients, competing with Morgan Stanley and Fidelity through tailored crypto services. - KuCoin secures MiCA license in Austria, enabling EEA operations and emphasizing compliance with global regulatory standards. - Binance faces lawsuit alleging $50M+ in Hamas-related transactions, highlighting crypto's regulatory challenges amid expanded AML measures in South Korea. - Houdini Pay introduces privacy tools for freelancers, addressing wallet transparency

Binance Expands into Traditional Finance with Prestige Service

Binance has strengthened its presence in the traditional finance sector by introducing "Binance Prestige," a customized offering designed for family offices, private investment funds, and high-net-worth individuals interested in entering the cryptocurrency space. Launched in November 2025, this service provides exclusive onboarding, advanced custody solutions, and personalized investment products, positioning Binance as a direct rival to established wealth managers such as Morgan Stanley and custodial firms like Fidelity Digital Assets.

This strategic move comes as interest in digital assets among affluent investors continues to rise, with 55% of traditional hedge funds reportedly holding cryptocurrencies in 2025, up from 47% the previous year. Binance’s latest initiative builds on its earlier Binance Wealth platform, which supports intermediaries overseeing crypto portfolios for their clients.

KuCoin Achieves Regulatory Milestone in Europe

In parallel, KuCoin has obtained a Markets in Crypto-Assets Regulation (MiCA) license in Austria, granting it the ability to operate across 29 countries within the European Economic Area, excluding Malta. This regulatory approval highlights KuCoin’s dedication to compliance, with CEO BC Wong noting that MiCA sets a global benchmark for regulatory standards. The license places KuCoin among a select group of crypto asset service providers navigating the European Union’s rigorous compliance landscape, reflecting a broader industry shift toward meeting international regulatory expectations.

Binance Faces Legal Scrutiny Over Alleged Illicit Transactions

Despite its expansion, Binance is currently embroiled in legal proceedings following accusations that it facilitated over $50 million in transactions for Hamas and other terrorist organizations after October 7, 2023. The lawsuit, brought by families of attack victims, alleges that Binance knowingly enabled money laundering and manipulated its reporting to evade detection. Binance has firmly denied these claims, asserting its adherence to international sanctions and emphasizing recent enhancements to its compliance protocols. This case underscores the ongoing challenge of balancing cryptocurrency’s pseudonymous nature with increasing regulatory oversight, especially as countries like South Korea strengthen anti-money laundering (AML) regulations.

South Korea Tightens Crypto Oversight

South Korea’s Financial Intelligence Unit (FIU) has announced new measures to freeze accounts and broaden AML regulations, including the monitoring of crypto transfers below $680. These reforms, expected to take effect in 2026, are intended to combat illicit financial activities and align with global standards set by organizations such as the Financial Action Task Force. The FIU’s partnership with the National Tax Service, which now has the authority to conduct home searches for concealed crypto assets, signals a comprehensive crackdown on tax evasion and financial crime in the digital asset sector.

Privacy Solutions Emerge for Crypto Payments

Innovation in the crypto payments space is also advancing, with Houdini Pay launching privacy-centric tools tailored for freelancers. These solutions address growing concerns about wallet transparency, where clients might use visible balances to negotiate lower payments or competitors could analyze transaction histories. The introduction of such privacy features comes amid increasing reports of "wrench attacks," where individuals are physically coerced to surrender their crypto, highlighting the urgent need for enhanced security and privacy in digital transactions.

Institutional Crypto Products Spark Debate

The institutional landscape remains contentious, as JPMorgan’s recent introduction of Bitcoin-backed bonds has attracted criticism from Bitcoin supporters. Detractors argue that such products could intensify forced liquidations during market downturns by triggering margin calls on Bitcoin-backed loans. The controversy escalated when MSCI suggested removing companies with significant crypto holdings from its stock indexes, a move that could reduce passive investment flows and potentially depress asset prices.

The Evolving Crypto Landscape

As cryptocurrency platforms navigate a complex environment of regulatory, legal, and competitive challenges, their ability to innovate while maintaining compliance will be crucial in shaping the future of the industry. The expansion of Binance into wealth management, KuCoin’s regulatory achievements, and the development of new privacy tools all reflect a rapidly changing sector where traditional finance and technological innovation are increasingly intertwined.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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