Last Week Recap: Regulatory Moves by VARA and ASIC; CLS Group July FX Report; Subscription-based FX Trading

Fazzaco continued extensively covering the latest trends in forex, crypto, fintech, and prop trading last week. The below is the selected highlights of last week.

U.S. Treasury Opens Consultation on Stablecoin Oversight

The U.S. Treasury Department has invited public feedback on measures to detect and prevent illicit finance in digital assets, in a step toward implementing the country's first federal stablecoin framework.

In a notice published last Monday, Treasury called on "interested individuals and organizations" to submit comments by October 17. Areas flagged for input include blockchain analytics, artificial intelligence, digital identity systems, and application programming interfaces, all of which could be applied to strengthen compliance in stablecoin markets.

VARA Fines Morpheus (Fuze) Over Compliance Failures

Dubai's Virtual Assets Regulatory Authority (VARA) has taken enforcement action against Morpheus Software Technology FZE, also known as Morpheus (Fuze), citing significant compliance shortcomings and unlicensed activity.

Propel Capital Shuts Down Amid Intensifying Prop Trading Competition

UK-based prop trading firm Propel Capital has closed its doors just over a year after its launch, citing unsustainable competition in the sector. The company's website has gone offline, and trading activity has been halted.

ASIC Expands Scam Takedown Powers to Social Media

The Australian Securities and Investments Commission (ASIC) has expanded its scam-fighting tools to include the removal of fraudulent investment advertisements on social media platforms. The move builds on the agency's existing website takedown program, which has been active for two years.

LeveL Markets and Nasdaq Canada Partner on Liquidity Integration

LeveL Markets, LLC and Nasdaq Canada have announced a new connectivity partnership aimed at broadening access to liquidity for institutional traders. The agreement will allow participants on LeveL's Luminex Alternative Trading System (ATS) to connect directly to Nasdaq Canada's CXD trading book.

CLS's FX Trade Volume Report - July 2025

The analytics team at CLS Group has reviewed foreign exchange (FX) trading activity for July 2025, comparing the month against prior periods and analyzing daily and hourly trading patterns. This resulted in the July 2025 FX Market Trading Report, which covers data from the FX spot, swap, and outright forward markets.

The $5,000 Free Challenge: What's Instant Funding's Marketing Play?

In mid-July, well-known prop trading firm Instant Funding announced on X a campaign that sounded almost too generous to be true (and it is still ongoing at the moment of writing, August 15, 2025): unlimited $5,000 challenge accounts, until 5,000 traders make it to the funding stage. At first glance, it looked like a money giveaway - instantly grabbing the industry's attention.

The Ever-Shrinking Window of Regulatory Opportunity for Brokers

Over the past decade, Zitadelle Advisory Group has closely observed an undeniable global trend: the tightening of financial regulations for brokers and financial service providers.

The Rise of Subscription-Based Forex Trading: Can Brokers Adapt?​

The financial industry has undergone remarkable changes over the years, and the forex trading landscape is no exception. Among the many transformations, a compelling trend is emerging - subscription-based forex trading. Borrowing from the SaaS (Software as a Service) model, this approach is disrupting the traditional broker commission structure and reshaping the way traders interact with the forex market.