Unleash Protocol suffered a governance-level exploit that allowed an attacker to deploy an unauthorised contract upgrade and withdraw about $3.9 million in user assets. The incident, identified by PeckShieldAlert and later confirmed by the team, affected tokens including WIP, USDC, WETH, stIP, and vIP, with 1,337.1 ETH ultimately funneled into Tornado Cash via Ethereum bridges. Platform operations have been paused while external security specialists investigate how the multi-signature admin controls were bypassed.

Japan plans to overhaul how cryptocurrency gains are taxed in 2026, shifting eligible holdings from progressive income tax of up to 55% to a flat 20% rate. The lower rate will only apply to specified crypto assets handled under the Financial Instruments and Exchange Act, alongside the introduction of a three-year loss carry-forward for crypto investments. These steps are part of a wider move to bring digital assets under a framework more closely aligned with traditional securities while tightening investor protections.

US-listed spot Bitcoin ETFs attracted $457 million in net inflows on Wednesday, the largest daily total in more than a month. Fidelity's FBTC took in about $391 million and BlackRock's IBIT added roughly $111 million, lifting cumulative net inflows above $57 billion as institutions adjusted positioning amid changing US rate expectations.

India's competition regulator approved Coinbase's plan to take a minority stake in DCX Global, the parent of CoinDCX, on Wednesday. Coinbase resumed Indian user sign-ups last week after a two-year pause, and its latest funding disclosure was made in mid-October. CoinDCX previously reported a $44.2 million wallet-related breach in July with no customer funds affected.

MSCI is considering excluding companies with large crypto treasuries from its equity indexes, with a final decision expected by Jan. 15 and possible implementation in February 2026. Analysts estimate that passive funds could be forced to sell between $10 billion and $15 billion of crypto-linked exposure, with Strategy accounting for roughly three-quarters of the affected float-adjusted market capitalisation. JPMorgan projects Strategy alone might face $2.8 billion in outflows if removed, potentially adding pressure to already weakening crypto markets.

HashKey, described as Hong Kong’s largest cryptocurrency exchange, began trading on the HKEX main board on Wednesday after completing a $206 million IPO. The deal was sharply oversubscribed across retail and international tranches, but the first trading session saw the share price briefly rise before slipping below the IPO level. The offering, which sold 240 million shares and attracted nine cornerstone investors, is seen as part of a broader lineup of crypto firms targeting public listings in 2025.

On Dec. 17, Aave founder Stani Kulechov outlined a 2026 roadmap featuring the V4 upgrade, Horizon's tokenised real‑world asset lending, and a mobile app push. Horizon deposits are around $550 million after surpassing $50 million by Sept. 1, with a goal above $1 billion. The plan follows the SEC ending its investigation.

Bhutan plans to channel up to 10,000 Bitcoin from its national reserves into the development of Gelephu Mindfulness City, a special administrative region launched in 2024. The country holds about 11,286 Bitcoin in total, ranking fifth among national holders, and aims to build the city in phases over 20 years with executive autonomy and legal independence. The project is intended to serve as an economic hub that supports sectors such as finance, tourism, green energy, and technology.

Singapore-based StraitsX plans to extend its XSGD and XUSD stablecoins to Solana by early 2026. The move targets automated payments and onchain SGD–USD exchange, with the pair having processed over $18 billion in onchain transactions. StraitsX operates under MAS oversight and is exploring a consumer pilot with Grab.