October 23, 2026 · Crypto & Web3 Daily Digest
A digest of crypto, regulation, and Web3 developments for October 23, 2026, with summaries, links, and commentary.
I. Regulation and Policy
1. China's cyberspace commission issues the informatization plan and targets a national blockchain network by 2030 (Policy)
Summary:
The Central Cyberspace Affairs Commission issued the 15th Five-Year Plan for National Informatization on October 23, 2026. The plan says that by 2030 China should make major progress in informatization, complete a next-generation communications network, start commercial 6G at an appropriate time, and largely complete a national blockchain network. A project column calls for a central backbone, linked regional hubs, and shared services such as distributed digital identity, with uses in shipping and cargo trade, the low-carbon transition, government services, and taxation. Regional tasks name blockchain for the Beijing-Tianjin-Hebei airport hubs and smart logistics, trade and finance in the Yangtze River Delta, faster blockchain applications in the Guangdong-Hong Kong-Macao Greater Bay Area, and scaled use in commerce, manufacturing, and agriculture in the Chengdu-Chongqing region. The indicator table sets expected internet penetration at 85 percent in 2030, from 80.1 percent in 2025, and 5G base stations, including 5G-Advanced, at 50 per 10,000 people, from 34. Xinhua's English report the same day confirms that the commission issued the document and that the 2030 goals include largely completing the national blockchain network.
Links:
- Cyberspace Administration of China — Commission issues the 15th Five-Year Plan for National Informatization
- Xinhua — China proposes largely completing a national blockchain network by 2030
Commentary:
The plan dates an existing national blockchain build for 2030 and covers backbone, identity, and industry uses, not a reopening of crypto-asset trading.
2. MAS says the Malaysian and Thai central banks have joined BLOOM for cross-border digital-money settlement (Regulation)
Summary:
The Monetary Authority of Singapore announced on October 23, 2026, that Bank Negara Malaysia and the Bank of Thailand have joined BLOOM (Borderless, Liquid, Open, Online, Multi-currency) as policymaker members. The three central banks will work with industry in their jurisdictions on how digital money is accepted, exchanged, and settled across borders, including tokenized deposits and regulated stablecoins. Newly listed industry and multilateral participants include Airwallex, Mastercard, Maybank, Monee, Nium, Ripple, ShopeePay, Visa, and the World Bank Group. The work has three tracks: acceptance and settlement across jurisdictions, interoperability among digital-money arrangements, and programmable controls such as identity checks, sanctions screening, and transaction controls. MAS Deputy Managing Director Leong Sing Chiong said multiple forms of digital money will operate across institutions and markets. Bank of Thailand Deputy Governor Daranee Saeju said the work will inform regulatory approaches to tokenized money, especially in cross-border payments and wholesale settlement. The MAS BLOOM page carries a published date of October 23, 2026, and lists the three central banks as policymaker members.
Links:
- Monetary Authority of Singapore — BLOOM initiative
- The Asian Banker — MAS, Bank Negara Malaysia, and the Bank of Thailand partner on BLOOM
Commentary:
Friday widened the list of central banks and payment networks in the trial, and it did not announce a live cross-border settlement rail.
3. The Bank of Korea says it will draft a forex-law amendment this year defining stablecoins as payment instruments (Regulation)
Summary:
The Block reported Friday, citing local outlet Digital Asset, that South Korea's government and the Bank of Korea plan to revise the Foreign Exchange Transactions Act this year so stablecoins are regulated as payment instruments, alongside a monitoring framework for virtual assets. The central bank said it is coordinating with the government on rules for cross-border digital-asset transactions. It noted that crypto transfers can move across borders outside traditional financial institutions, and that mixers and unhosted wallets increase anonymity. The report ties the statement to last year's National Assembly audit, when lawmakers asked for large-value payment systems to run until 8 p.m. and for measures against money-laundering risk from global crypto exchanges. The Bank of Korea also said it will keep consulting ministries to limit regulatory arbitrage while the Digital Asset Basic Act takes shape. That act is still being drafted and is meant to cover exchange licensing and stablecoin issuance. Financial Services Commission Chairman Lee Eog-weon said at a hearing on Thursday that consultations were nearing completion and that the government would introduce the bill as soon as possible. The Block's account is a report of the central bank's statement. The amendment text has not been published.
Links:
Commentary:
A payment-instrument definition in the forex law would put stablecoins into cross-border monitoring first, while issuance licenses still wait on the basic-act text.
4. Blumenthal writes to Tether and Nxum seeking records on payments tied to a former White House crypto adviser (Regulation)
Summary:
The Block reported Friday that Senator Richard Blumenthal, Democrat of Connecticut, wrote on Thursday to Tether and the consulting firm Nxum. He said multimillion-dollar payments by the stablecoin issuer to a firm controlled by the White House official primarily responsible for cryptocurrency policy implicate federal ethics, anticorruption, and lobbying laws. A letter posted by the Senate Homeland Security and Governmental Affairs Committee is dated October 22, 2026, from the minority of the Permanent Subcommittee on Investigations to Tether chief executive Paolo Ardoino. The letter cites the Wall Street Journal for more than $6 million flowing from Tether into Nxum, and says that in May 2025 Tether agreed to pay Nxum $415,000 a month after the firm pitched lobbying and public relations. It also says Bo Hines did not divest his one-third stake in Nxum while serving as the White House crypto adviser, and that he pushed GENIUS Act provisions later called the Tether loophole. A Tether spokesperson told The Block that the company is reviewing the letter and that an earlier investigation by external counsel found no evidence of wrongdoing. Blumenthal also wrote to Nxum. These are allegations in an investigative letter, not court findings.
Links:
- The Block — Blumenthal seeks answers from Tether on payments to a firm founded by a former White House crypto adviser
- U.S. Senate Homeland Security and Governmental Affairs Committee — Blumenthal letter to Tether
Commentary:
This is a minority investigative letter, not a subpoena or a judgment, and Tether's reply is that outside counsel found no wrongdoing while the document request is still open.
5. Netanyahu says he has asked for a blockchain plan in case of banking sanctions (Policy)
Summary:
The Times of Israel reported that Prime Minister Benjamin Netanyahu, in an interview aired Friday on Israel's Channel 10 economic network, said Israel should prepare its economy and banking sector for harsh global sanctions. The interviewer referred to broad UK sanctions on settlements announced last month. Netanyahu said he is concerned, and that tens of billions of dollars in U.S. defense aid will not keep coming and that it is only a question of time. He then said sanctions, including banking sanctions, would require an alternate economy that can circumvent them, and he pointed to currencies that get around the existing system, including the blockchain cryptocurrency network. Asked whether blockchain is one of the options, he said it is, and that he has already asked for a plan to be prepared. He did not say who would write it, which chain or currency it would use, or when it would be implemented. The Block's translation likewise records that he has asked for a plan and that no details were given.
Links:
- The Times of Israel — Netanyahu says Israel needs an alternate economy to circumvent sanctions
- The Block — Netanyahu seeks a blockchain plan to prepare for possible sanctions
Commentary:
The public record is the sentence that a plan has been requested, with no budget, pilot chain, or central-bank endorsement.
II. Markets and Major Assets
6. Bitcoin recovers to about $81,700 from midnight UTC, with altcoins moving faster (Markets)
Summary:
CoinDesk reported Friday that bitcoin rose 0.5% since midnight UTC to about $81,700, recovering from a low around $81,000, while ether rose 0.9%. The lead says the CoinDesk 80 gained 1.4% and the memecoin gauge climbed 2.9%. The body separately says the CoinDesk 80 rose 0.7%. In the token section, pepe rose 14%, the largest advance in the CoinDesk 100 and its biggest daily move in a month, on about $353 million of 24-hour volume, roughly 10% above the same time a day earlier, with no clear catalyst cited. Uniswap gained 3.5% to about $7.25 and Ethena rose 2.0% to about 20 cents. Futures volume fell 19% over 24 hours, liquidations fell 23%, and open interest rose 1%. The Nasdaq Composite fell 2.6% on Thursday, its steepest drop since June. South Korea's Kospi added 0.3%, China's CSI 300 rose 1.7%, and Japan's Nikkei 225 slipped 0.25%. Brent crude was near $113 a barrel. Traders are looking to the Federal Reserve meeting on October 27-28. The Block separately said bitcoin was around $81,500 earlier on Friday, down 3.4% over the past day, and that CoinGlass showed at least $440 million of leveraged crypto positions liquidated over 24 hours, including about $397 million of longs.
Links:
- CoinDesk — Bitcoin recovers to about $81,700 as altcoins rebound and pepe climbs 13%
- The Block — Bitcoin ETFs swing to outflows as spot trades near $81,500
Commentary:
The bounce since midnight is under 1 percent and open interest is only slightly higher, so price is still sitting in the range left by Thursday's tech selloff.
III. Protocols and Upgrades
7. Ethereum postpones the Glamsterdam activation on Hoodi that had been set for October 26 (Protocol)
Summary:
CoinDesk reported Friday that Ethereum developers called off the Glamsterdam upgrade on the Hoodi test network. Activation had been set for October 26 at 17:42:48 UTC. The delay was decided at Thursday's All Core Devs Execution meeting because new gas accounting could change how contracts already on the network handle failed transactions, letting an error that should have reversed the whole transaction be recorded permanently. The focus is EIP-8037 and EIP-8038. ChainSecurity published an analysis on October 13 calculating that creating a new storage slot could require 110,020 gas when a separate allowance is exhausted, compared with 22,100 under the old rules. CoinDesk said ChainSecurity has demonstrated the mechanisms but has not publicly established that a major production protocol is exploitable. Sepolia completed its activation on October 6. A planned increase of Hoodi's gas limit to 200 million was postponed with the fork. No replacement date has been announced, and the mainnet activation date remains unconfirmed. Cointelegraph reported that ChainSecurity identified 13 real-world contract examples that could be affected and is coordinating disclosure with the projects, and that developers had been considering early December for mainnet, with the schedule to be set after a successful Hoodi test.
Links:
- CoinDesk — Ethereum delays the Glamsterdam test after security researchers flag risk to existing contracts
- Cointelegraph — Ethereum delays the Glamsterdam Hoodi testnet fork over gas security risks
Commentary:
What stopped is Monday's testnet rehearsal and the 200 million gas-limit increase. Mainnet did not have a confirmed date.
IV. Institutions, ETFs, and Stablecoins
8. U.S. spot bitcoin ETFs post $635.6 million of net outflows on Thursday, erasing Wednesday's inflows (Institutions)
Summary:
The Block reported Friday, using its compiled data, that U.S. spot bitcoin ETFs had $635.6 million of net outflows on Thursday, more than reversing Wednesday's $528.4 million of net inflows and the largest daily net outflow since June. BlackRock's IBIT lost $254.1 million, Fidelity's FBTC lost $217.5 million, and Ark Invest and 21Shares' ARKB lost $109.4 million. Bitwise's BITB and Grayscale's GBTC also had net outflows. Morgan Stanley's MSBT added $2.3 million, and the remaining products recorded zero flows. The week is still positive at $442.7 million through Thursday: $526.7 million on Monday, $23.2 million on Tuesday, and $528.4 million on Wednesday. Since the January 2024 launch, combined net inflows exceed $57 billion and assets under management exceed $100 billion. U.S. spot ether ETFs had $110.6 million of net outflows on Thursday after $14.9 million of net inflows on Wednesday. Solana and Hyperliquid ETFs also saw net outflows that day, while XRP funds added $3.6 million. CoinDesk, citing SoSoValue, put Thursday's bitcoin ETF net outflow at $635 million and said inflows over the first three sessions of the week exceeded $1 billion. Before the reversal, Tesseract senior DeFi analyst Lorris Beziers told The Block that the next test was whether inflows would continue while bitcoin held $80,000 to $81,000.
Links:
- The Block — Bitcoin ETFs swing back to net outflows as $636 million in withdrawals erase the previous day's inflows
- CoinDesk — Bitcoin recovers to about $81,700 after spot ETFs lose $635 million on Thursday
Commentary:
One day of redemptions was larger than the previous day's creations, but the four sessions of the week are still a net inflow, so the institutional book is flipping rather than leaving in one direction.
9. HSBC launches its first stablecoin, RedCoin, on PayMe for more than 3.3 million users (Stablecoins)
Summary:
HSBC Hong Kong announced on October 23, 2026, that its first stablecoin, HSBC RedCoin (ticker RCHKD), is available from that day on PayMe by HSBC. The token is denominated in Hong Kong dollars and licensed by the Hong Kong Monetary Authority. The stablecoin issuer licence number is FRS02. The Hongkong and Shanghai Banking Corporation Limited, a wholly owned subsidiary of HSBC Holdings, received the licence in April 2026. Over the coming days, more than 3.3 million PayMe users will be able to activate an in-app stablecoin wallet, send peer-to-peer transfers, and pay at more than 100,000 merchants. A staff pilot of nearly 100 users tested minting, wallet activation, and live transfers. HSBC Digital Assets Custody provides safekeeping. HSBC plans later this year to add a stablecoin wallet to the HSBC HK Mobile Banking App and to let customers subscribe to tokenized investment products with RedCoin, including a forthcoming share class of its Hong Kong dollar money market fund. John O'Neill said wholesale corporate and institutional uses will follow. HSBC said Orion has enabled issuance of more than $8.3 billion in digitally native bonds globally since its 2023 launch, and that HSBC Gold Token had recorded 390,000 trades with a traded value of $2.5 billion by the end of August 2026. In a June survey of 1,060 customers, 53 percent said HKD stablecoins could strengthen economic competitiveness.
Links:
- HSBC Hong Kong — HSBC RedCoin launches today
- CoinDesk — HSBC rolls out its first stablecoin to more than 3 million everyday app users
Commentary:
The licence was granted in April. What starts today is retail wallet activation, while the banking app and the tokenized money-market fund are still scheduled for later this year.
V. Security Incidents
10. Initia halts its layer 1 and rollups, and a co-founder says about $2.7 million was bridged out (Security)
Summary:
The Block reported Friday that Initia, a blockchain built for interconnected chains, halted its layer-1 network and rollups after a security incident. CoinNess said the team put the halt at 15:41:30 UTC on October 23 and is investigating the scope with its security team, validators, and exchanges. Co-founder Ezaan Mangalji, who goes by Zon, said preliminary findings point to a previously unknown zero-day in the network's MoveVM implementation on the Cosmos SDK. He said the bug allowed unauthorized minting and does not apply to the native INIT token. He said the attacker minted and bridged out about $2.7 million of AUSD, ETH, and USDC before the chain was paused. On-chain researcher Spreek initially estimated that about $2.6 million had been cashed out, with more funds in transit. The Block also wrote that Initia has not confirmed the amount lost and that the story is still developing. INIT fell 14 percent immediately after the exploit report, then reversed, and was up about 14 percent on the day.
Links:
- The Block — Initia halts its network after a security incident as an attacker reportedly mints tokens
- CoinNess — Initia halts its layer 1 and rollups after a security incident
Commentary:
What can be checked is that block production stopped and that a co-founder put the bridged amount near $2.7 million. The project has not confirmed the final loss.
11. CoinDCX denies that active wallets were hacked and attributes about $16 million of outflows to addresses taken in July 2025 (Security)
Summary:
CoinDesk reported Friday that CoinDCX, India's largest crypto exchange, denied that its active wallets were compromised. On-chain observers flagged about $16 million of outflows on Wednesday from addresses linked to the exchange, in USDT and Tron TRX, sent to a single Tron address. The largest transaction was 15,819,002 USDT, and that address then split the funds. A spokesperson told CoinDesk that the addresses were created in January 2025, were compromised in the July 2025 hack, and have not been used by CoinDCX since. The exchange said current central and user addresses were not affected and that no funds from active wallets were taken. CoinDCX was exploited for about $44 million in July 2025. Chief executive Sumit Gupta wrote on X that the July 2025 attackers appear to be reusing the old addresses. Investigator ZachXBT disputed that account, saying deposit address TQKJQ was still used by a liquidity provider for 10 months after the July 2025 incident and swept user deposits and received gas as recently as April and May 2026 into the exchange's then-current public hot wallet. CoinDCX acknowledged that some users kept depositing to deprecated addresses after being told not to, that the sweep of those deposits failed for a period, and that it absorbed the operational losses and credited affected users. Trading continues as usual.
Links:
Commentary:
The exchange's admission is a failed sweep of retired addresses and a loss it absorbed, not a new break-in of the live hot wallet. TQKJQ was still sweeping deposits this spring, so retirement was not immediate.
Today's Summary
- The Central Cyberspace Affairs Commission wrote a largely complete national blockchain network into the 2030 targets and named uses in Beijing-Tianjin-Hebei, the Yangtze River Delta, the Greater Bay Area, and Chengdu-Chongqing. MAS said the Malaysian and Thai central banks joined BLOOM. The Bank of Korea said it will draft a forex-law amendment with the government this year defining stablecoins as payment instruments.
- HSBC's Hong Kong dollar stablecoin RedCoin went live on PayMe, with wallets opening over the coming days for more than 3.3 million users and payments at more than 100,000 merchants. U.S. spot bitcoin ETFs had $635.6 million of net outflows on Thursday, erasing Wednesday's $528.4 million of inflows, while the week through Thursday is still a $442.7 million net inflow.
- Bitcoin rose 0.5% from midnight UTC to about $81,700. Brent crude was near $113 a barrel, and traders are waiting for the Federal Reserve meeting on October 27-28. At least $440 million was liquidated over 24 hours.
- The October 26 Glamsterdam test on Hoodi was postponed, with no new date. Initia halted its layer 1 and rollups at 15:41:30 UTC, and a co-founder said about $2.7 million was bridged out. CoinDCX denied that active wallets were stolen. Blumenthal's letter and Netanyahu's blockchain remark do not yet have implementing documents.
Daily Framing:
Today was a national-chain and stablecoin-arrangement day in the crypto cycle: China, Singapore, and Hong Kong advanced a blockchain backbone, a cross-border digital-money trial, and a licensed Hong Kong dollar stablecoin, while bitcoin sat near $82,000, Thursday's ETF redemptions erased the previous day's creations, and the Hoodi rehearsal and Initia block production stopped on security grounds.
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