US Public Still Prefers Banks Over Crypto | Catch Up | May 3 – 9, 2026

From South Korea to the US, from Google to World Liberty, here are the crypto stories you may have missed this week.

🏛️ Regulation & Global Policy

South Korea Formalizes 2027 Tax Framework

Photo for the Article - US Public Still Prefers Banks Over Crypto | Catch Up | May 3 - 9, 2026

South Korea has officially set January 1, 2027, as the start date for its virtual asset taxation. Under the current Income Tax Act, gains exceeding KRW 2.5 million will be hit with a 22% total tax rate (20% income tax plus a 2% local surcharge). The National Tax Service is currently working with the “Big Five” exchanges (Upbit, Bithumb, Coinone, Korbit, and Gopax) to streamline reporting.

Public Sentiment: Banks Over Blockchains

A new CoinDesk survey reveals a skeptical American public. Despite years of “banking the unbanked” rhetoric, 65% of U.S. voters trust traditional banks more than crypto for financial inclusion. Perhaps most telling: 60% of respondents view crypto as a “mostly negative” force for the economy.

🤖 AI Meets On-Chain Payments

Google Cloud & Solana Bridge the Gap

In a move to monetize the AI agent economy, the Solana Foundation and Google Cloud launched a dedicated payment gateway. This allows AI agents to pay for APIs (including Gemini and Vertex AI) on a “pay-per-call” basis using stablecoins. No subscriptions are required—just a Solana wallet.

MoonPay Debuts “MoonAgents” Card

Following the AI trend, MoonPay launched the MoonAgents Card, a virtual Mastercard for the UK and Latin America. The card allows AI agents (and their human handlers) to convert stablecoins to fiat instantly at the point of sale, further blurring the line between autonomous code and real-world commerce.

⚖️ Law & Security

World Liberty Financial Sues Justin Sun

The Trump-affiliated crypto project, World Liberty Financial, has filed a defamation lawsuit against TRON founder Justin Sun in Florida. The suit alleges Sun spread false information regarding frozen WLFI tokens and engaged in “straw purchases.” This follows a previous suit by Sun against WLFI, signaling a deepening legal rift between two of the industry’s loudest voices.

ZachXBT Exposes $150M Ponzi Collapse

Renowned investigator ZachXBT reported the collapse of the DSJ Exchange (DSJEX) Ponzi scheme. While over $92 million was laundered between late April and early May, a collaborative effort between Tether, Binance, OKX, and law enforcement has successfully frozen $41.5 million to date.

🛠️ Tech & Exchange Updates

Privacy Boost: Polygon Labs integrated shielded USDC/USDT payments. Using zero-knowledge proofs via Hinkal, users can now hide transaction details from public view while still undergoing KYT (Know Your Transaction) screening.
Safety First: Binance introduced “Withdraw Protection,” allowing users to voluntarily lock on-chain withdrawals for 1–7 days to prevent “heat of the moment” errors or security breaches.

🎙️ Notable Quotes

“We will probably sell some bitcoin to pay a dividend just to inoculate the market and send the message that we did it.”

— Michael Saylor, MicroStrategy Q1 Earnings Call (on the company’s potential shift in BTC strategy).

“99 percent of ‘shitcoins’ could eventually go to zero… it’s a normal market-clearing process.”

— Arthur Hayes, speaking at Consensus Miami 2026.

Market Summary Table

Event	Key Takeaway	Impact Level
Taxation	South Korea’s 22% tax starts Jan 2027	Moderate (Long-term)
AI Payments	Google Cloud accepts Solana stablecoins	High (Innovation)
Lawsuit	Trump-linked WLFI vs. Justin Sun	High (Reputational)
Security	$41.5M frozen in DSJEX Ponzi	High (Recovery)