Crypto Weekly Market Wrap May 4: Regulatory Momentum, Policy Shifts, and Treasury Accumulation Trends

The crypto market saw another busy week as regulation, policy, DeFi security, and institutional treasury activity moved together. Several governments progressed with tax rules, sanctions, and licensing requirements. Meanwhile, firms expanded tokenized stocks, stablecoin payments, Bitcoin treasuries, and recovery plans after significant DeFi incidents. In this article, we will discuss these events that made headlines last week.

Bybit Exits Malaysia Alert List After Compliance Talks

Bybit announced on April 29 that Malaysia’s Securities Commission removed the exchange from its investor alert list. Chief Executive Ben Zhou stated the firm had positive talks with the government and adjusted its activities to the requirements. The exchange also resulted in a venture in Hata, a Malaysian crypto platform with dual licenses. Zhou said that regulated local infrastructure helps build trust among users, and Malaysia is a key market in crypto adoption in the region.

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OFAC Warns Shipping Firms Over Iran Digital Payments

The U.S. Treasury Office of Foreign Assets Control warned maritime firms to avoid paying Iran-related tolls on 1st May. The agency suggested that it would impose sanctions on shipping companies due to such payments. OFAC noted that Iran could demand payment in fiat or other digital assets. The Treasury also noted that it will target those who support Iran’s military and urged maritime companies to enhance their due diligence on payments.

Arbitrum DAO Reviews rsETH Recovery Funds

On May 1, Arbitrum DAO said it is reviewing a proposal to release 30,765.67 of frozen ETH. The request was supported by Aave Labs, KelpDAO, LayerZero, EtherFi, and Compound. The funds were obtained from attacker-linked addresses that were frozen on April 21. The ETH would enter into a Gnosis Safe for remediation of rsETH and user compensation.

BNB Chain Launches xStocks Trading Platform

BNB Chain introduced xStocks, a tokenized stock platform offering over 50 U.S. stocks and ETFs on April 30. The portfolio consists of Apple, Tesla, NVIDIA, and an S&P 500 ETF. The assets can be traded with a minimum promotion of $10 on PancakeSwap and CowSwap. According to the officials, the tokens can be used to support collateral and yield strategies.

Welcome @xStocksFi to BNB Street

Over 50 tokenized U.S. equities are now live on BNB Chain, with 100+ more coming in the next few weeks, bringing market-deep liquidity with 24/5 access for the BNB community

The next chapter of onchain capital markets is on BNB Chain 🧵👇 pic.twitter.com/9JZdoXdA0b

— BNB Chain (@BNBCHAIN) April 30, 2026

Ondo Adds Proxy Voting for Tokenized Stocks

Ondo Finance collaborated with Broadridge on April 28 to provide proxy voting and disclosure access to over 250 tokenized stocks and ETFs. The ProxyVote system offered by Broadridge can be accessed by users through wallets. Ondo said token holders do not directly own shareholder rights because the tokens remain structurally separate from underlying stocks. However, the platform plans to consider user voting preferences when voting on the shares it holds.

World Liberty Financial Sells More WLFI Tokens

According to Bloomberg’s May 1 report, World Liberty Financial raised more than $550 million in two financing rounds. The Trump family-linked crypto project also sold about 5.9 billion WLFI tokens from founder and partner allocations. The latest sale targets accredited private investors and could bring in hundreds of millions of dollars. Meanwhile, early investors still hold about 80% of their tokens under lockup and plan a vote on extending restrictions.

Carrot Sets Withdrawal Deadline Before Shutdown

Carrot, a Solana-based DeFi protocol, announced its shutdown on April 30 after the Drift vulnerability incident damaged its operations. The protocol set May 14 as the deadline for withdrawals. After May 14, Carrot plans to deleverage the system and reduce all leverage to zero. The team said deposited funds remain user-owned, while any Drift recovery funds will follow earlier distribution plans.

ZetaChain Suspends Cross-Chain Transactions After Exploit

On April 27, ZetaChain said hackers compromised its GatewayEVM contract, although the incident affected only internal team wallets. The network said it blocked the attack path and found no remaining risk to user funds.

There was an attack against the ZetaChain GatewayEVM contract today that impacted the internal ZetaChain team wallets only. We've already blocked the attack vector so no more funds can be compromised and will be releasing a detailed post mortem after we have completed our…

— ZetaChain 🟩 (@ZetaChain) April 27, 2026

As a precaution, ZetaChain suspended cross-chain transactions. SlowMist said the GatewayZEVM exploit involved weak access control and weak validation inside the contract’s call function.

Russia Moves Ahead with Crypto Income Tax

Russia’s Government Legislative Activities Commission approved a Finance Ministry proposal to tax income from digital currency transactions on April 27. The proposal covers earnings from crypto exchange trades under tax rules. The draft uses FIFO accounting to calculate costs and bars traders from carrying losses into later tax periods. It also proposes VAT exemptions for digital depository services, crypto exchangers, and selected foreign digital rights.

South Korea Prepares Virtual Asset Tax Filing

South Korea’s National Tax Service began preparations for virtual asset taxation on April 29. The agency is collecting exchange data and building an integrated system to analyze transaction records. The first comprehensive income tax filing for virtual assets will occur in May 2028. Under current rules, gains above 2.5 million won from virtual asset transfers and lending face a 22% tax rate.

Porvenir Opens Bitcoin Exposure Through IBIT

Porvenir, Colombia’s largest pension fund manager, launched a crypto portfolio offering indirect Bitcoin exposure via IBIT on April 27. The product serves voluntary pension accounts and requires a minimum investment of $25. Investors must complete a risk assessment before entering the portfolio. Porvenir said the launch targets younger investors, as Latin America’s crypto user base keeps growing.

🇨🇴 Fue noticia esta semana: El fondo de pensiones ma´s grande de Colombia, Porvenir, lanzó un portafolio que permite a sus pernsionados ganar exposición a bitcoin a través del ETF de BlackRock, con la posibilida de invertir desde 100.000 pesos (25 dólares). pic.twitter.com/toEn4IKboa

— CriptoNoticias (@CriptoNoticias) May 3, 2026

White House Advances Bitcoin Reserve Proposal

The Trump administration continued to advance plans for a Strategic Bitcoin Reserve. Bybit’s weekly report noted that the White House may release an official proposal. The plan would classify about 200,000 government-seized Bitcoin as national reserve assets. White House digital asset adviser Patrick Witt also said a major reserve announcement could arrive in the coming weeks.

EU Expands Russia Sanctions Into Crypto

The European Union adopted its 20th sanctions package against Russia, adding broad crypto restrictions for the first time on April 23rd. The measures ban Russian crypto service providers and block platforms connected to the digital ruble and RUBx. The package also stops EU entities from trading on DeFi platforms in Russia and Belarus. Officials said Russia increasingly uses crypto assets to bypass financial sanctions.

Canada Faces Calls to Ban Crypto ATMs

On April 28, Canadian police warned that scammers are using the Royal Canadian Mounted Police logo in crypto recovery schemes. The fraud targets people who have already lost money, then offers fake help recovering alleged crypto balances.

🚨CANADA MOVES TO BAN CRYPTO ATMS IN MAJOR CRACKDOWN

Canadian government plans to prohibit crypto ATMs, labelling them a key tool for scams and illicit money flows.

With the world’s highest crypto ATM density per capita, the crackdown impacts nearly 4,000 machines nationwide. pic.twitter.com/Q22kWWSRSB

— Coin Bureau (@coinbureau) April 29, 2026

One resident lost about 5,000 Canadian dollars in a remote work scam before facing another recovery attempt. Police said the RCMP never asks for payment, contacts victims about hidden crypto accounts, or works with paid recovery firms.

PayPal Establishes Standalone Crypto Business Division

PayPal announced a restructuring that divides the company into three major operating groups on April 30. The new units cover Checkout Solutions and PayPal, Consumer Financial Services and Venmo, and Payment Services and Crypto. The Payment Services and Crypto division will combine Braintree, small business payment processing, platform capabilities, and cryptocurrency operations. The restructuring also includes plans to separate Venmo as a separate unit.

Japan Moves Toward Crypto ETF Listings

Japan Exchange Group Chief Executive Hiromi Yamaji said on April 30 that JPX will prepare crypto asset ETF listings after tax clarity. The timing still depends on the progress of related legislation. The launch could arrive as early as 2027. However, JPX may delay listings until 2028 if lawmakers need more time to finalize the required crypto asset framework.

Japan Clarifies Rules for Yen Stablecoin JPYC

On April 28, Japan’s Financial Services Agency classified JPYC under fund transfer business regulations in its April Access FSA publication. Officials described JPYC as serving the same economic role as payment services such as PayPay and Rakuten Pay. Users buy JPYC with yen, and final holders can redeem the token for yen. The framework requires JPYC to maintain full user asset protection of at least 100%.

Pakistan Requires Approval for Virtual Asset Services

Pakistan’s Virtual Assets Regulatory Authority issued an advisory requiring prior approval for all virtual asset services on April 26th. The rule covers stablecoins, tokenization, cross-border payments, and other crypto operations inside Pakistan.

Official Regulatory Advisory by PVARA

Under the Virtual Assets Act, 2026, virtual asset services fall within PVARA's regulatory perimeter and require prior authorization before commencement or public announcement.

PVARA welcomes responsible innovation and encourages early… pic.twitter.com/auN5s285S1

— Pakistan Virtual Assets Regulatory Authority (@PakistanVARA) April 27, 2026

The regulator said public partnership announcements or pilot projects without consultation could create compliance and FATF risks. Stakeholders must seek authorization through official regulatory channels before launching services.

CLARITY Act Compromise Lifts Stablecoin Debate

A compromise between Thom Tillis and Angela Alsobrooks moved the CLARITY Act debate forward on May 1. The agreement focuses on stablecoin rewards after banks pushed for restrictions on yield-like incentives tied to crypto products. The revised language limits rewards that resemble deposit interest while allowing incentives connected to payments and platform activity. Coinbase executive Faryar Shirzad said the final text preserved usage-based rewards while keeping market confidence around a possible 2026 passage.

Strategy Adds More Bitcoin Through Share Sales

Strategy bought 3,273 Bitcoin for about $255 million during the week ended April 24. The company paid an average price of $77,906 per coin, according to its SEC filing. The purchase used proceeds from common share sales under its equity program. Strategy now holds 818,334 Bitcoin, acquired for about $61.81 billion at an average cost of $75,537.

Strive Raises Bitcoin Holdings Above Fourteen Thousand

Strive acquired another 789 Bitcoin for $61.43 million on April 27. The purchase came at an average price of about $77,890 per Bitcoin. The company now holds 14,557 Bitcoin, worth about $1.3 billion in treasury assets. Strive has funded accumulation partly through its SATA preferred stock product, which pays investors a variable monthly dividend.

Strive has acquired 789 BTC for $61.43 million at an average cost of ~$77,890 per bitcoin.

As of 4/24/2026 we hodl 14,557 $BTC. $ASST $SATA pic.twitter.com/6JYBemuVq6

— Matt Cole (@ColeMacro) April 27, 2026

Bitmine Expands Ethereum Treasury Beyond Five Million

Bitmine Immersion Technologies announced on April 27 that it increased its Ethereum holdings above 5 million ETH after buying 101,901 ETH. The company reported 5,078,386 ETH as of April 26. The firm now controls about 4.2% of Ethereum’s circulating supply. More than 3.7 million ETH remains staked, allowing Bitmine to generate yield through validators.

U.S. Bitcoin ETFs See Strong April Inflows

U.S. spot Bitcoin ETFs recorded $1.9 billion in net inflows in April. The month marked the strongest performance this year and the largest inflow total since October last year for ETF investors. The rebound followed March inflows of $1.32 billion and turned year-to-date flows positive. BlackRock’s IBIT led monthly demand, while Fidelity’s FBTC contributed steady inflows across the ETF market.

Western Union Prepares USDPT Stablecoin Launch

On April 27, Western Union announced plans to launch USDPT in May. The Solana-based stablecoin will be issued by Anchorage Digital Bank and used first for settlement. The company also plans a Digital Asset Network linking crypto wallets to its retail network. Later in 2026, Western Union expects to introduce a USD Stable Card across several markets while expanding consumer payment tools.

BlackRock Challenges OCC Reserve Cap Proposal

BlackRock asked the OCC on Friday to avoid a 20% cap on tokenized reserve assets under GENIUS Act rules. The firm argued that asset risk depends on liquidity, duration, and credit quality. The asset manager also asked regulators to confirm Treasury ETFs as eligible reserves. Additionally, it recommended adding two-year Treasury floating-rate notes to the permitted reserve asset list. The request focused on clear backing standards.

Bitcoin Price Performance

Bitcoin posted another positive performance last week, with a surge of more than 2%. The price surged from lows of $75K to retrace above the $80K mark. This latest bullish momentum has pushed the monthly gain to 20% after a period of intense volatility. At the time of this writing, the price was trading around $79,520, with a market cap of $1.59 trillion. Moreover, its trading volume has exploded by 120% to $35 billion. 

Looking at the technical front, BTC has formed an uptrend as green candlesticks continue forming after bouncing from the support around the $65K region. The asset has now reclaimed the resistance at the $80K mark as the bulls hold the upper hand at the moment.

The upward rally has been supported by indicators such as the Relative Strength Index and Moving Average Convergence Divergence. The 14-day RSI is hovering around 47 levels, indicating a neutral sentiment in the market. Meanwhile, the MACD line is holding above the signal line, with the histogram printing green bars.

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