“Defi and Web 3.0: Staying Ahead of Regulatory Changes”

The new crypto tax reporting system of the European Union, known as DAC8, has a specific focus on enforceable objectives, leaving decentralized finance (DeFi) outside of its scope for the time being.

Colby Mangels, former advisor to the Organisation for Economic Co-operation and Development (OECD) and currently serving as Taxbit’s global head of government solutions, stated that the regulations prioritize identifiable intermediaries, such as custodians and exchanges, who will be required to collect and report standardized user activity data in accordance with the OECD’s Crypto Asset Reporting Framework (CARF).

However, this exemption for DeFi may not remain in place. Mangels noted that tax authorities are increasingly utilizing Anti-Money Laundering (AML) frameworks to define accountability within the crypto market, and regulators are closely monitoring whether DeFi platforms can be classified as virtual asset service providers.

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Animoca, RootstockLabs partner to bring Bitcoin DeFi to Japanese institutions

In a collaboration between Animoca Brands Japan and RootstockLabs, Japanese corporations will now have access to Bitcoin-based DeFi tools, with a specific focus on treasury management.

The partnership will localize Rootstock’s institutional program for the Japanese market, allowing companies to effectively manage their Bitcoin holdings and utilize onchain financial tools built on the secure Rootstock network. This network is powered by Bitcoin’s proof-of-work (PoW) through merged mining.

This partnership reflects the increasing interest among Japanese companies in utilizing Bitcoin as a treasury asset, with a desire for more advanced infrastructure beyond just custody.

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The Digital Commodity Intermediaries Act (DCIA): Exploring its Impact on the Crypto Market and DeFi

As US senators prepare to vote on amendments to the DCIA, a highly anticipated bill that will shape the regulatory landscape for cryptocurrencies, the topic of decentralized finance (DeFi) has emerged as a contentious issue.

The main purpose of the DCIA is to clarify the roles of the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) in regulating the crypto market. However, concerns have been raised by lawmakers and industry groups about how the bill’s provisions regarding DeFi will be implemented.

This ongoing debate highlights the significance of DeFi in the discussions surrounding US market structure, despite efforts to advance a regulatory framework after years of delay.

Read on to learn more about the differences between web 1.0, 2.0, and 3.0 and how DeFi, along with other emerging technologies like NFTs and DAOs, are shaping the future of the internet and the financial world.

The Growth of DePIN: A $10 Billion Sector Despite Token Slump, According to Messari

In a joint report by Messari and Escape Velocity titled “State of DePIN 2025”, it is revealed that decentralized physical infrastructure networks (DePIN) have quietly emerged as a $10 billion sector, with onchain revenue reaching $72 million in the previous year.

Despite the fact that many tokens in this category have seen a decline of 90% or more from their previous highs, the report highlights the steady revenue generated by leading networks through real-world usage in areas such as bandwidth, computing, energy, and sensor data.

Messari notes that DePIN is evolving towards an infrastructure business model, where the focus is on usage and cash flow rather than token performance. This has resulted in DePIN revenues being more resilient during the current market downturn compared to DeFi protocols and layer-1 networks.

Read on to learn more about the growth of DePIN.

Understanding the Launch of Citrea ZK-rollup and its Impact on the Bitcoin Block Space Debate

Citrea recently launched its mainnet for Bitcoin zero-knowledge rollup, offering BTC-backed lending, structured products, and a native stablecoin called ctUSD. This launch highlights Bitcoin’s potential as a base collateral for DeFi and payments.

By utilizing Bitcoin’s base layer for anchoring proofs and data availability, Citrea aims to activate “economically idle” BTC and increase onchain liquidity. The team expects early DeFi liquidity to reach $50 million.

The launch has sparked renewed discussion about the ongoing block space debate surrounding Bitcoin. As Citrea’s DeFi activities consume measurable Bitcoin bandwidth, questions arise about the appropriate level of complexity that the base layer should support.

Continue reading to learn more about the differences between web 1.0, 2.0, and 3.0 and how web 3.0 is shaping the future with concepts such as DeFi, NFTs, and DAOs.

Understanding the DeFi Market in Web 3.0

Based on statistics from Cointelegraph Markets Pro and TradingView, the majority of the top 100 cryptocurrencies by market value experienced declines this week.

The CLO token for Yei Finance saw the largest decrease of 58% in the past seven days, followed by SKR token with a 55% drop.

Thank you for reading our recap of the most significant DeFi developments this week. Join us next Friday for more updates, insights, and education on this rapidly evolving space.