Launchy Regulatory Roundup #57 - Trump’s 100% China Tariffs Spark Historic Crypto Crash

Tokenization Needs Rules to Build Trust

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Welcome to our 57th edition of the regulatory roundup. If you know anybody who would benefit from this content, please help us spread the word!

In Today's Edition:

  • Headline: Trump’s 100% China Tariffs Spark Historic Crypto Crash 👀 

  • Global Legal Roundup

  • Case Study: Tokenization Needs Rules to Build Trust 🔎 

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HEADLINE

Trump’s 100% China Tariffs Spark Historic Crypto Crash

State of play: Crypto markets plunged after President Donald Trump announced 100% tariffs on all Chinese imports, retaliating against Beijing’s new export limits on rare earth materials.

  • The policy shock erased nearly $10B in open interest and wiped out over 1.5M traders within a day.

  • CoinGlass data showed $8B in long positions and $1.5B in shorts liquidated, marking one of crypto’s largest wipeouts.

  • Trump later said he could reverse the tariffs before November if China changes course.

What’s Next: Markets now hinge on whether Trump softens or enforces the tariffs before November.

Why it Matters: It highlights how macro policy, not just crypto-native factors, now drives market direction as institutions dominate trading volumes.

Our Take: The tariff shock shows how crypto has become part of the global risk complex.

GLOBAL LEGAL ROUNDUP

America:

  • 🇺🇲 Roger Ver reaches tentative deal with DOJ over $48M tax case.

  • 🇺🇲 Trump mulls pardon for Changpeng Zhao amid concerns over optics.

  • 🇺🇲 North Dakota to launch the state's 'Roughrider' stablecoin next year.

  • 🇺🇲 Crypto.com CEO calls for probe into exchanges after $20B liquidations.

  • 🇺🇲 DeFi legislative proposal draws fire from Republicans, crypto advocates.

  • 🇺🇲 Senate confirms Trump-backed pick Jonathan McKernan to Treasury role.

Europe:

  • 🇪🇺 EU weighs sanctions on ruble-backed stablecoin A7A5.

  • 🇬🇧 UK lifts ban on crypto exchange-traded notes.

  • 🇬🇧 Bank of England plans stablecoin cap exemptions.

  • 🇬🇧 UK to appoint ‘digital markets champion’ to lead tokenization efforts.

  • 🇫🇷 Bank of France wants EU crypto regulation under Paris-based ESMA.

Middle East & Africa:

  • 🇦🇪 Dubai regulator cracks down on 19 unlicensed crypto operators.

APAC:

  • 🇰🇷 South Korea ramps up crypto seizures, will target cold wallets.

  • 🇮🇳 India targets over 400 wealthy Binance traders in tax evasion probe.

  • 🇮🇳 India plans to double down on CBDC, reaffirms stance against crypto.

  • 🇰🇿 Kazakhstan shuts 130 crypto platforms, seizes $17M for illicit activity.

CASE STUDY

Tokenization Needs Rules to Build Trust

IMG: Vinvent Kadar

Credits to Cointelegraph for the original article

State of play: Tokenization promises to unlock trillions in value by digitizing real-world assets (RWAs), but without proper safeguards, it risks repeating the failures of traditional finance.

Vincent Kadar, CEO of Polymath, warns that the recent Detroit real estate scandal where tokenized homes were sold without verified ownership exposed how innovation without compliance can lead to systemic fraud.

  • He argues that tokenization should not be slowed down but redesigned with built-in trust mechanisms.

  • Verified ownership, identity-linked transactions, and automated compliance rules must become standard.

  • Governance systems to resolve disputes and recover assets are equally critical for institutional adoption.

  • In emerging markets, tokenization could expand access to capital and improve transparency, but only if local regulations and investor protections are embedded from the start.

  • Kadar emphasizes that responsible growth means prioritizing secure, permissioned systems over hype-driven launches.

Our Take: The future of tokenization depends on building frameworks that combine innovation with lasting trust.

Take a peek at our referral reward at the bottom of this issue. Share this newsletter and receive our comprehensive database of crypto regulations around the world👇

NOTEWORTHY READS & MEME

  • a16z’s read on the State Crypto Policy Playbook.

  • Crypto in America’s read on Crypto Market Structure Talks Stall.

  • Jake Chervinsky’s read on Senate Democrats & Market Structure Bill.

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Disclaimer: All the information presented in this publication and its affiliates is strictly for educational purposes only. It should not be construed or taken as financial, legal, investment, or any other form of advice.