South Korea crypto trading volume drops sharply

South Korea’s cryptocurrency trading volume fell 28% year-on-year to $69 billion in the first quarter, marking the steepest decline among major global markets. The drop reflects cooling retail activity as attention shifted toward semiconductor stocks, alongside stricter domestic compliance rules that limited trading options.

Despite the decline, South Korea remained the world’s second-largest market by volume. The United States led with $212 billion in trading activity, followed by Russia at $4.8 billion, India at $4.6 billion, and Turkey at $4 billion.

Shift in market structure signals maturity

The pullback suggests a transition in South Korea’s market dynamics rather than a full exit from digital assets. Trading capital appears to be rotating into equities and more institutional-focused segments such as settlement layers and stablecoins. If the trend continues, it could indicate a less volatile but more structurally mature market environment.

Illinois introduces first state-level crypto tax

Illinois passed the first U.S. state-level tax targeting digital asset transactions, set to take effect on January 1, 2027. The law imposes a 0.2% occupational tax on brokers handling trading, transfers, or custody of digital assets.

The measure is expected to generate about $60 million annually and may impact both in-state and out-of-state firms serving Illinois-based clients, potentially leading to adjustments in fee structures and compliance requirements.

Binance advances MiCA approval process

Binance continues its push for authorization under the European Union’s Markets in Crypto-Assets (MiCA) framework. Greece’s financial regulator has completed its review and forwarded the application to the European Securities and Markets Authority.

The exchange warned that prolonged approval timelines could reduce liquidity and limit competition across the EU’s digital asset market.

Tokenization expands with ETF partnership

Ondo Finance partnered with South Korea’s Mirae Asset to bring ten Global X ETFs on-chain, spanning sectors such as artificial intelligence, blockchain, robotics, and commodities.

The move highlights growing institutional adoption of blockchain infrastructure, as traditional financial products increasingly migrate to tokenized formats.

Prediction platforms tighten controls

Polymarket and Kalshi strengthened anti-fraud measures ahead of the World Cup season, aiming to safeguard growing activity in event-based trading markets. Kalshi reported annualized revenue of about $1.5 billion as of May, reflecting rapid expansion in the segment.

Funding and corporate activity accelerate

Artificial intelligence firm DeepSeek raised between 40 and 50 billion yuan in its first funding round, with founder Liang Wenfeng contributing roughly half the total. Major backers included Tencent, NetEase, JD, and IDG Capital.

Separately, SpaceX filed plans to acquire Anysphere, developer of the AI software Cursor, in a deal valued at $60 billion, signaling continued convergence between AI and large-scale technology platforms.

Mixed performance across crypto markets

Digital asset prices showed mixed momentum. WLD rose 20.24% and UNI gained 19.4%, while SENT led daily gains at 23.79%.

Bitcoin slipped 0.75%, Ethereum edged up 0.21%, and BNB declined 1.52%. Broader market sentiment remained cautious, with traders monitoring macroeconomic signals and ETF flows.

U.S. legislation targets crypto fraud

U.S. Senator Cynthia Lummis introduced the CLARITY Act, allocating $150 million to combat fraud and criminal activity linked to digital assets.

Meanwhile, ADP data showed private employment rose by 25,500 in the week ending May 30, down from 29,000 in the prior period, pointing to a modest slowdown in hiring momentum.