Crypto markets are seeing a wave of renewed optimism as two major geopolitical and regulatory developments unfold. Former U.S. President Donald Trump has confirmed a high-stakes meeting with Chinese President Xi Jinping at the upcoming APEC summit in Seoul on October 31, a reversal of his earlier position. Meanwhile, Japan is exploring groundbreaking changes to its cryptocurrency regulations, potentially allowing banks to hold digital assets like Bitcoin. In parallel, developers in the decentralized finance (DeFi) space are voicing concerns about legal risks following recent warnings from U.S. authorities.
Trump Confirms APEC Meeting with Xi Jinping, Easing Tensions
In an interview with Fox News, Trump confirmed: “We’re going to meet in a couple of weeks,” referring to the upcoming summit with President Xi. The announcement has been well-received by financial markets, including cryptocurrencies, which are particularly sensitive to geopolitical shifts.
Previously, Trump had downplayed the necessity of meeting with Xi, but this turnaround has sparked optimism that tensions between the U.S. and China may cool — a sentiment that often correlates with increased investor confidence in digital assets. A de-escalation in global trade friction and diplomatic standoffs typically creates a more favorable environment for risk-on assets, including crypto.
Japan May Allow Banks to Hold Bitcoin Under New Regulations
In a potentially landmark move, Japan’s Financial Services Agency (FSA) is reportedly considering a proposal to allow banks to hold cryptocurrencies like Bitcoin. Under current rules, traditional financial institutions are barred from directly holding volatile crypto assets. The FSA now aims to reassess these restrictions to better align digital asset management with conventional financial products.
The proposed reform will be discussed at an upcoming Financial Services Council meeting, with discussions expected to focus on risk management, custody frameworks, and accounting standards. If passed, the policy shift could position Japan as a progressive global leader in crypto integration within the traditional banking system.
Experts believe that institutional adoption by banks in Japan could lead to broader acceptance of crypto and further price stability as demand matures.
Legal Warning Sends Ripples Through DeFi Developer Community
While markets cheer geopolitical progress and regulatory openness, not all news has been positive. Roman Storm, a developer of the privacy protocol Tornado Cash, has issued a cautionary message to fellow open-source developers. He warned of the increasing risk of retroactive prosecution by the U.S. Department of Justice (DOJ) for building non-custodial, decentralized platforms.
Storm’s comments follow his own legal battles after being indicted for allegedly enabling money laundering through Tornado Cash. His case has become a focal point in the debate over developer liability in the Web3 ecosystem.
The concern centers around the legal gray area in which many decentralized protocols operate. Developers are calling for clearer legislation to ensure that writing open-source code does not become a criminal liability.
