Crypto Morning Brief: New Virtual Currency Regulations Released; This Week AVAX, APT, STRK, and Other Tokens Face Large Token Unlocks

Author: TechFlow

Yesterday’s Market Highlights

Nikkei 225 Index surges 4.00% intraday to 56,437.40

The Nikkei 225 Index surged 4.00% intraday to close at 56,437.40.

Crypto journalist: White House’s next stablecoin yield discussion meeting scheduled for next Tuesday

According to crypto journalist Eleanor Terrett, sources indicate that the White House’s next round of discussions on stablecoin yields has been scheduled for next Tuesday. The meeting will remain at the staff level, with bank representatives and industry association representatives in attendance.

Illinois introduces “Community Bitcoin Reserve Act” to establish state-operated Bitcoin reserve program

Per Bitcoin.com News, Illinois introduced the “Community Bitcoin Reserve Act” this week, proposing a state-operated Bitcoin reserve program using multi-signature cold wallets for custody. The first reserve is named the Altgeld Bitcoin Reserve. The bill stipulates that BTC held in the reserve may only be traded or sold upon authorization via new legislation.

Central bank and seven other ministries jointly issue notice: Full ban on virtual currency trading and RWA tokenization activities

The People’s Bank of China (PBOC), together with seven other ministries, issued today the “Notice on Further Preventing and Addressing Risks Related to Virtual Currencies” (Yinfa [2026] No. 42), clarifying that virtual currencies do not hold legal tender status and related business activities constitute illegal financial activities.

The notice prohibits virtual currency trading and real-world asset (RWA) tokenization activities within mainland China. Domestic entities are prohibited from issuing virtual currencies or conducting tokenization activities overseas without prior approval from relevant authorities.

Financial institutions are barred from providing services to such activities, and internet companies must not provide online platforms or promotional support. The notice mandates enhanced risk monitoring and sectoral supervision, as well as stringent crackdowns on related criminal offenses. It takes effect immediately upon issuance and supersedes the 2021 regulations.

Bloomberg analyst: 21Shares files Ondo ETF application

Eric Balchunas, Senior ETF Analyst at Bloomberg, announced on social media that 21Shares has filed its Ondo ETF application documents.

Li Hua Yi’s on-chain ETH holdings fully liquidated

According to Arkham data, on-chain addresses associated with Li Hua Yi transferred the final 534 ETH to Binance, fully liquidating their ETH holdings. Only 0.165 ETH remains in those addresses.

Bithumb: To fully compensate customers affected by “erroneous distribution of 620,000 BTC” incident

Per an official announcement, South Korean cryptocurrency exchange Bithumb released a comprehensive compensation plan addressing the “erroneous distribution of 620,000 BTC” incident that occurred on February 6. Bithumb pledged 110% special compensation to affected users, with estimated losses totaling approximately 1 billion KRW.

The announcement states that Bithumb will strengthen its internal control systems, including upgrading its asset verification system, refining multi-tier approval workflows, enhancing AI-powered abnormal transaction detection and automatic blocking capabilities, and engaging global security specialists for system audits.

In addition, Bithumb will offer 20,000 KRW compensation to all users who logged in during the incident period, provide seven days of zero-fee trading for all users, and establish a “Customer Protection Fund” with a size of 100 billion KRW to ensure customer asset safety.

Li Lin responds to rumors: Not an investor in LD or Garrett Gin; no BTC or ETH selling during current rally

Li Lin, founder of Huobi, stated on social media: “I am not an investor in LD or Garrett Gin, nor have I sold any Bitcoin or Ethereum during this market rally. I’ve been retired for years, yet I still find myself clarifying such rumors almost annually.”

FWDI CIO: If industry faces liquidity crunch, Forward will pursue aggressive strategy and consolidate other SOL treasury firms

According to CoinDesk, Ryan Navi, Chief Investment Officer of Forward Industries (FWDI)—the largest Solana treasury company—stated that market mispricing is creating opportunities. FWDI carries no debt, and should the industry face liquidity constraints, Forward will adopt an aggressive strategy and consolidate other SOL treasury companies.

FWDI holds nearly 7 million SOL—the largest publicly listed SOL reserve, exceeding the combined holdings of its next three competitors.

Ryan Navi reiterated: “A leveraged-free balance sheet is the true competitive advantage in the crypto treasury market. While others go on defense, Forward Industries will continue accumulating. Going forward, we will remain unleveraged, debt-free, and treat Solana as a long-term strategic infrastructure investment—not short-term speculation.”

Michael Saylor re-posts Bitcoin Tracker update, signaling possible BTC purchase next week

Michael Saylor, Founder and Executive Chairman of Strategy, posted Bitcoin Tracker-related information again on X, writing: “Orange Dots Matter.”

Consistent with past patterns, Strategy discloses its Bitcoin purchases the day after publishing such announcements.

Major token unlocks for AVAX, APT, STRK, and others this week

Data from Token Unlocks shows multiple crypto projects face significant token unlocks this week.

CONX: 1.32 million tokens unlock on February 15, valued at ~$15.6 million (1.56% of circulating supply);

AVAX: 1.67 million tokens unlock on February 11, valued at ~$15.2 million (0.32% of circulating supply);

APT: 11.31 million tokens unlock on February 10, valued at ~$12.3 million (0.69% of circulating supply);

STRK: 127 million tokens unlock on February 15, valued at ~$6.3 million (4.61% of circulating supply);

SEI: 55.56 million tokens unlock on February 15, valued at ~$4.2 million (1.03% of circulating supply);

MOVE: 164 million tokens unlock on February 9, valued at ~$3.8 million (5.46% of circulating supply);

ME: ~1.48 million tokens unlock on February 9, valued at ~$1.48 million (2.32% of circulating supply);

LINEA: ~4.38 million tokens unlock on February 10, valued at ~$4.38 million (5.96% of circulating supply).

Market Data

Recommended Reading

Interview with Jeff Park: We’re in a bear market; QE no longer works; silver will crash like a meme coin

This article explores evolving trends in the Bitcoin market, volatility in precious metals markets, and the future trajectory of U.S. monetary and fiscal policy. Through an interview format, it delves into Bitcoin’s relationship with the broader global economy and introduces the concept of “positively correlated Bitcoin.” It also discusses Kevin Warsh’s potential candidacy for Federal Reserve Chair and analyzes the current state and outlook for the silver market.

Analyzing Strategy’s latest financial report: After $12.4B loss, how much longer can the Bitcoin flywheel spin?

This article examines Strategy’s deep interdependence with Bitcoin. Its financial report reveals that operational performance is heavily contingent on Bitcoin price fluctuations. Though capital allocation has been skillful, prolonged Bitcoin price declines could threaten its operating model over the long term.

Forbes editorial board: The most accurate short-signal in crypto?

This article explores the correlation between crypto market cycles and Forbes magazine cover features, noting that market euphoria often peaks when mainstream media spotlight intensifies. It analyzes the underlying logic through case studies involving prominent crypto figures—including CZ, SBF, and Michael Saylor.

U.S. equities, Bitcoin, and silver massacred: A bizarre global asset bloodbath

This article investigates the February 6 “liquidity black hole”-style global asset bloodbath, during which U.S. equities, silver, and cryptocurrencies all plunged simultaneously. Despite the absence of an obvious external black swan event, liquidity crisis emerged as the core driver behind the market collapse. The article analyzes the causes of this global market turmoil across U.S. equities, silver, crypto assets, and Japanese government bond markets.

Amid crypto’s darkest hour, Real Vision founder: Hold firm, buy aggressively

This article describes the current market’s depressed state and widespread investor panic and confusion. Yet the author emphasizes holding firm and aggressively buying the dip. It highlights the advantages of long-term holding and dollar-cost averaging, noting high volatility as an inevitable cost of participation. The author maintains an optimistic outlook on future markets, characterizing the current downturn as a panic-driven correction within a bull market—and plans to continue accumulating crypto assets.