Tether has quietly become one of the world’s largest private gold holders, amassing 116 tons of physical gold — a reserve size comparable to the central banks of South Korea, Hungary, and Greece, according to an analysis by Jefferies shared via the Financial Times.

Jefferies notes that Tether is now “the largest holder of gold outside central banks,” and its rapid accumulation may be influencing global gold markets more than previously recognized. The firm estimates that Tether’s purchases last quarter accounted for nearly 2% of total global demand and almost 12% of all central bank buying, contributing to short-term supply tightening and bullish market sentiment.

Investors expect Tether to acquire an additional 100 tons in 2025, a target made feasible by the company’s projected $15 billion profit this year.

Tether Expands Deeper Into the Gold Industry

This year alone, Tether has spent over $300 million acquiring stakes in precious-metal producers, including a 32% stake in Canada’s Elemental Altus Royalties. The company is reportedly exploring broader investments across the gold ecosystem — from mining to refining — as part of its strategy to diversify reserves beyond U.S. Treasurys.

Tether’s gold-backed token Tether Gold (XAUt) has also seen rapid growth. On-chain data shows issuance doubling in six months, with an additional 275,000 ounces (worth ~$1.1 billion) minted since August. Tether argues that tokenized gold removes traditional barriers such as custody, storage, and ETF fees.

A Stablecoin Issuer Behaving Like a Central Bank

Tether’s operational model increasingly mirrors that of a sovereign monetary authority. The company mints and redeems USDT, manages vast reserves — including gold, Bitcoin, and short-term U.S. Treasurys — and even exercises powers like freezing addresses linked to illicit activity.

With its expanding gold portfolio and influence on global liquidity, Tether’s role is beginning to resemble that of a non-state central bank in the digital asset economy.

Japan is preparing for one of its most significant crypto regulatory shifts in more than a decade, as the Financial Services Agency (FSA) considers reclassifying crypto assets from “payment instruments” to “financial products.” The move comes amid soaring adoption — with crypto accounts quadrupling to 13 million in five years — and growing concerns over fraud, cybercrime, and inadequate consumer protections.

During the FSA’s sixth crypto working group meeting on Nov. 26, officials highlighted an average of 350 monthly consumer complaints, rising overseas scam activity, and increasingly sophisticated attacks targeting Japanese users.

Why Japan Wants to Shift Crypto Under Securities Law

If approved, oversight would move from the Payment Services Act (PSA) to the stricter Financial Instruments and Exchange Act (FIEA). This would introduce more rigorous disclosure rules, insider-trading safeguards, criminal penalties, and enhanced reporting obligations for exchanges.

Several industry voices argue the change is overdue.
Emeritus Professor Yoshikazu Yamaoki noted that tokens like Bitcoin and Ethereum no longer behave like payment tools but instead mirror speculative investment assets — similar to securities.

Others warn the shift could burden small exchanges and accelerate consolidation, as FIEA-level compliance requirements are significantly heavier.

Tax Reform: The Turning Point

The working group also supports a flat 20% tax on crypto gains, matching stock trading. Currently, crypto income is taxed as miscellaneous earnings — ranging from 15% to 55%.

Industry advocates say aligning taxes with equities could help Japan catch up with global crypto adoption.
ANAP Holdings CEO Rintaro Kawai argues the country is already “significantly behind” and risks having “no future” in Bitcoin innovation without meaningful reform.

A Fragmented Framework That Can’t Keep Up

Japan pioneered early crypto regulation, but years of piecemeal amendments — from Mt. Gox reforms to 2022’s stablecoin laws — have resulted in an inconsistent legal structure. Whitepapers require no formal accuracy standards, and self-regulation by the JVCEA remains weaker than traditional securities oversight frameworks.

Regulators now believe only a full transition to securities-style supervision can restore market integrity.

Privacy is rapidly becoming one of the most important themes in crypto’s next phase of evolution, as rising transparency risks, expanding zero-knowledge (ZK) technology, and stricter regulations push both retail users and institutions toward safer ways of interacting on-chain.

Industry data shows this shift is already underway. Zcash’s shielded supply continues to grow, Railgun activity has reached record levels, and global regulators are tightening oversight—intensifying the debate around how users can protect personal data while staying compliant.

Growing Consensus: Privacy Is Now Essential

Analyst Miles Deutscher warns that privacy may define crypto’s trajectory over the next five years. His message is resonating across X, institutional discussions, and developer circles: without privacy, crypto will struggle to reach global adoption.

The concern is simple—current levels of on-chain transparency expose user activity, corporate transactions, and sensitive financial data. As Deutscher notes, crypto today mirrors the early internet before HTTPS became standard. Just as secure web encryption unlocked mainstream usage, privacy-preserving tools may be the missing link for mass crypto adoption.

Ethereum co-founder Vitalik Buterin echoes this sentiment, saying privacy underpins fairness, freedom, and progress. For institutions, it is also a prerequisite for building compliant on-chain products without exposing client information or business strategies.

Demand for Privacy Tools Accelerates

Search interest in crypto privacy is rising, while on-chain behavior reflects growing adoption:

• Zcash’s shielded pool is approaching 4 million ZEC.
• Railgun continues to hit new all-time highs in transactional flows.
• Developers are accelerating work on privacy-preserving infrastructure as governments introduce stricter oversight.

Europe’s AMLR rules, for example, limit cash payments above €10,000 and require crypto service providers to collect personal identification beginning in 2027. Critics argue such measures risk “criminalizing privacy,” further fueling demand for tools that protect users without undermining compliance.

Why ZK Proofs Are Leading the Shift

Zero-knowledge proofs have emerged as one of the most promising solutions. As engineer Jarrod Watts explains, ZK systems allow someone to prove a fact without revealing the underlying data—an ideal blend of privacy and verifiability.

A16z Crypto notes that ZK technology disproves the belief that privacy and regulation cannot coexist; instead, it enables both at once. This is shifting industry conversations away from whether privacy belongs in crypto to how fast teams can integrate it.

Projects at the Forefront

Several leading initiatives are shaping the privacy landscape:

• Zcash (ZEC) — driving sentiment with expanding shielded usage.
• Monero (XMR) — long-standing leader in anonymous value transfer.
• Humanity Protocol — building privacy-preserving digital identity systems.
• Canton Network — gaining institutional traction with trillions in value settled.
• Railgun — offering private DeFi transactions while operating across major chains.