The governor of the Czech National Bank, Aleš Michl, recently discussed the possibility of adding Bitcoin to the country’s foreign exchange reserves. In an interview with CNN Prima News, Michl stated that he was considering acquiring ‘a few Bitcoin’ for diversification purposes, though he emphasised it would not be a major investment. Any such decision would require approval from the bank’s seven-member board.
Despite Michl’s interest, the Czech National Bank is not currently planning to purchase Bitcoin, according to board adviser Janis Aliapulios. The bank is instead focusing on increasing its gold reserves, with a goal to boost holdings to 5% of total assets by 2028. However, Michl has not ruled out the possibility of revisiting Bitcoin as a diversification option in the future.
The growing interest in Bitcoin as a reserve asset comes as the cryptocurrency continues to outperform traditional assets, such as gold, with a 131% rise in value over the past year. Anndy Lian, a blockchain expert, believes Bitcoin’s potential as a reserve asset could redefine financial strategies globally, though its volatility remains a concern.
Meanwhile, the Bitcoin Act in the US is gaining traction, with bipartisan support for creating a strategic Bitcoin reserve. If passed, the act could solidify Bitcoin’s status as a savings technology, with some speculating that its price could surpass $1 million in the future.
Telegram, the popular messaging app, has fulfilled 900 requests from US authorities for personal information about its users in 2024, with a significant rise in inquiries following the arrest of CEO Pavel Durov in France. A report from 404 Media, published on 7 January, revealed that the platform provided 14 requests for IP addresses and phone numbers between January and September 2024. However, most of these requests were made after October, affecting over 2,000 users.
The increase in requests came after French authorities arrested Durov on 24 August, accusing Telegram of enabling criminal activity. Durov has stated that since 2018, Telegram has been providing user information like IP addresses and phone numbers to law enforcement authorities when requested. The policy, which is mentioned in Telegram’s privacy guidelines, continues to be a source of controversy.
Despite the ongoing legal issues, with Durov still barred from leaving France, Telegram remains a key platform, especially within the cryptocurrency community, where it has more than 950 million monthly active users.
Bitcoin has once again breached the $100,000 mark, trading at $101,700 as of 7 January, showing a strong resurgence after weeks of hovering between $92,000 and $98,000. This sharp rise is further fuelled by a massive surge in $120,000 call options, with over $1.56 billion in open interest, suggesting that traders are betting on a rally to new all-time highs. With the market showing renewed optimism, attention is shifting to upcoming changes in US crypto policy under President-elect Donald Trump, which could have a major impact on Bitcoin’s future.
As Trump prepares for his 20 January inauguration, many in the crypto industry are hopeful that his administration will bring a more crypto-friendly regulatory environment. A key change could be the resignation of SEC Chair Gary Gensler, a figure many crypto advocates view as an obstacle to the sector’s growth. His replacement, crypto-friendly Paul Atkins, may usher in a more supportive stance, especially regarding regulations for decentralized finance. Trump’s administration is also expected to explore initiatives like establishing a US Bitcoin reserve, further boosting the industry’s outlook.
Alongside these political developments, Bitcoin’s price performance is also influenced by broader macroeconomic factors. Economic reports in early January, including job creation and consumer sentiment data, could shape investor confidence, particularly if inflation concerns drive more interest in Bitcoin as a hedge against the dollar’s declining purchasing power. The Federal Reserve’s stance on interest rates will be pivotal, with the market expecting a neutral approach but keeping an eye on any unexpected policy shifts.
As Bitcoin pushes towards the $120,000 mark, analysts are divided on its short-term prospects. Some suggest the market is still in a “buy zone”, with potential for significant gains in the coming months, while others caution that market sentiment remains cautious. Regardless, the market is positioned for a potentially exciting year, with Bitcoin’s role as a key reserve asset likely to grow amidst shifting regulatory landscapes and economic conditions.
Banco de Investimentos Globais (BiG), one of Portugal’s largest banks, has started blocking fiat transfers to cryptocurrency platforms. The decision, revealed in a notification shared by Delphi Labs co-founder José Maria Macedo, comes as part of BiG’s efforts to comply with guidelines from the European Central Bank (ECB), the European Banking Authority (EBA), and the Bank of Portugal. These regulations focus on the risks linked to digital assets, particularly money laundering and terrorism financing.
BiG, which reported assets under management of nearly €7 billion in 2023, justified the move as necessary to align with Portugal’s legal framework. However, this action appears to be limited to BiG for now, as users have reported that fiat transfers to crypto platforms remain unaffected when using Portugal’s largest bank, Caixa Geral de Depósitos.
Macedo criticised BiG’s decision, claiming that such measures would drive more people to decentralised platforms, declaring, ‘Crypto is inevitable, banks are dead, and these abuses of power will only red pill more ppl into moving their wealth on-chain.’ His comments reflect a growing frustration with traditional financial institutions as they respond to increasing pressure from regulators.
This decision aligns with a broader, mixed stance within the EU regarding digital assets. While some ECB officials, like Jürgen Schaaf, have raised concerns over Bitcoin’s volatility and environmental impact, others, such as Piero Cipollone, advocate for the adoption of digital assets to help tackle market fragmentation. The future of cryptocurrency regulations in Europe remains uncertain, with ongoing debates about the potential benefits and risks.
Bitfinex Derivatives, the derivatives arm of the crypto exchange, has secured a Digital Asset Service Providers (DASP) licence to operate in El Salvador. The move marks a significant shift for the company, which will relocate from Seychelles to the Central American nation. Paolo Ardoino, Bitfinex Derivatives’ chief technology officer, praised El Salvador’s growing prominence as a global financial hub and its commitment to creating robust crypto frameworks.
The approval aligns with El Salvador’s ongoing efforts to develop its crypto infrastructure, especially after the country introduced its Digital Assets Securities Law in January 2023. This regulation simplifies tokenisation, allowing companies to raise capital by issuing tokens tied to assets like debt, equity, and real estate.
Bitfinex has already benefitted from the country’s legal framework, with Bitfinex Securities securing a local DASP licence in April 2023. However, the company faced challenges when it had to refund investors in a tokenisation effort for a Hilton hotel project due to failing to meet the minimum fundraising target. Despite this setback, the move to El Salvador signals a positive outlook for the country’s growing role in the crypto world.
Do Kwon, the South Korean cryptocurrency entrepreneur responsible for the collapse of TerraUSD and Luna currencies, pleaded not guilty to US criminal fraud charges on Thursday. The plea followed his extradition from Montenegro earlier this week.
Kwon, co-founder of Terraform Labs, is accused of orchestrating a multi-billion-dollar fraud scheme that led to an estimated $40 billion loss in cryptocurrency value in 2022. Federal prosecutors in Manhattan unsealed a nine-count indictment against Kwon, charging him with securities fraud, wire fraud, commodities fraud, and conspiracy to commit money laundering.
The indictment claims Kwon deceived investors by falsely promoting TerraUSD as a stablecoin guaranteed to maintain its $1 value. Prosecutors allege that when TerraUSD’s value dropped in 2021, Kwon secretly enlisted a high-frequency trading firm to inflate the token’s price, misleading investors and artificially boosting its sister token, Luna.
These alleged misrepresentations drove substantial investment into Terraform Labs’ products, propelling Luna’s market value to $50 billion by early 2022. However, the scheme unravelled in May 2022 when TerraUSD and Luna crashed, causing turmoil in the broader cryptocurrency market.
Kwon, 33, remains in custody in Manhattan after declining to seek bail during his initial court appearance. His trial is set to begin on 8 January. Kwon has faced mounting legal troubles, including a $4.55 billion settlement with the US Securities and Exchange Commission and a federal jury finding him liable for defrauding investors earlier this year.
His case is part of a broader crackdown on cryptocurrency figures, including FTX’s Sam Bankman-Fried and Celsius Network’s Alex Mashinsky, as US authorities tighten scrutiny over the volatile industry.
Bitcoin surged past $100,000 in 2024, more than doubling its value, driven by pivotal regulatory and political developments. The US Securities and Exchange Commission’s approval of exchange-traded funds tied to Bitcoin’s spot price marked a significant milestone, attracting mainstream and institutional interest in the cryptocurrency sector.
A broader crypto rally saw Bitcoin gain over 120% and Ethereum rise nearly 50%, boosting the market’s total value to $3.5 trillion. Analysts predict Bitcoin could reach $200,000 by late 2025, solidifying its status as a premier store of value. Enthusiasm for the asset class has extended to corporate treasuries, with firms like MicroStrategy leading the charge.
MicroStrategy’s shares quintupled in 2024, reflecting its substantial Bitcoin holdings. Other companies, including major financial players, are incorporating Bitcoin into their portfolios. Meanwhile, Donald Trump’s victory in the US presidential election, coupled with his pro-crypto stance, further energised the market.
Despite the rally, challenges persist for smaller crypto miners. Rising energy and hardware costs have limited gains for firms like Riot Platforms and Marathon Digital, which struggled against the year’s bullish trends.
Montenegro has extradited Terraform Labs co-founder Do Kwon to the US, where he faces charges related to investor deception and the collapse of the TerraUSD cryptocurrency. The Montenegrin interior ministry confirmed Kwon was handed over to US law enforcement at Podgorica airport.
Kwon, a South Korean national, was arrested in March 2023 while attempting to leave Montenegro. The Supreme Court recently ruled that legal conditions for extradition were met, prompting Justice Minister Bojan Bozovic to approve the US request. His legal team has appealed the decision at Montenegro’s Constitutional Court.
The former CEO of Terraform Labs is accused of misleading investors about TerraUSD’s stability. The cryptocurrency collapsed in May 2022, triggering an estimated $40 billion in market losses. Kwon and his company are also being sued by the US Securities and Exchange Commission over allegations of fraud involving TerraUSD and Luna.
Stablecoins are digital assets designed to maintain a fixed value, typically pegged to a fiat currency. TerraUSD’s failure undermined trust in their stability and shook the broader cryptocurrency market.
The US Department of Justice and the Federal Trade Commission have initiated legal proceedings against fintech company Dave and its CEO, Jason Wilk. Allegations include deceptive advertising practices linked to cash advances promoted on the platform, some of which users reportedly never received.
Authorities argue the company engaged in unfair practices, including hidden fees, misuse of customer tips, and inadequate cancellation processes for recurring charges. The complaint seeks monetary penalties, consumer redress, and measures to prevent future violations.
Dave denies the allegations, asserting many claims are inaccurate. The company has introduced a simplified fee structure, removing tips and express fees regulators criticised. However, the updated structure was implemented on 4 December for new users, with existing customers transitioning gradually.
The legal filing replaces an earlier complaint from November, initially targeting the company without seeking penalties. Regulators now aim for broader accountability by including the CEO in the amended complaint.
Hackers are using fake job offers from well-known crypto firms to trick victims into installing malware that grants them access to devices and wallets. According to blockchain expert Taylor Monahan, these scams begin with the hackers posing as recruiters offering high-paying roles, with salaries ranging from $200,000 to $350,000. Instead of sharing documents or software, victims are led through a series of steps to “fix” technical issues with their microphone and camera, which results in malware installation.
Monahan explained that the scam unfolds during lengthy interviews where the final step involves the victim being instructed to resolve an access issue. Following the given instructions prompts a fake browser update that compromises their system. The malware can provide attackers with backdoor access to steal crypto funds or cause other damage, and it works across Mac, Windows, and Linux platforms.
These fake recruiters approach victims on LinkedIn, freelancer platforms, and chat apps like Discord and Telegram, advertising roles at major crypto firms like Gemini and Kraken. Monahan advised those who suspect exposure to the malware to wipe their devices and urged everyone in the crypto space to remain vigilant against such tactics.
