Federal Reserve Governor Jerome Powell has called for stronger regulations on cryptocurrencies, stating that the US central bank and Congress have been actively working on the issue. Speaking at the Federal Open Market Committee meeting, he emphasised the need for a clearer regulatory framework while assuring that the Fed is not opposed to innovation in the sector.
Powell also addressed concerns over ‘debanking’ practices, stating that banks should not be forced to cut ties with legal crypto firms due to excessive risk aversion. He stressed that financial institutions are free to serve crypto customers as long as they can manage the associated risks. While acknowledging that regulatory standards for crypto activities are higher due to their novelty, he suggested that consumer protections similar to those in traditional finance should apply.
Avoiding direct engagement with recent comments from President Trump, Powell reaffirmed the Fed’s commitment to economic stability. He noted that the central bank is prepared to adjust its monetary policy as needed. Meanwhile, Bitcoin saw modest gains, reclaiming $105,000 in Asian trading hours.
Donald Trump’s media company has launched Truth.Fi, a financial services platform aimed at cryptocurrency investments. The initiative, backed by Trump Media & Technology Group, will allocate up to $250 million from its $700 million cash reserves to assets like Bitcoin, crypto-related securities, and ETFs.
This move follows a trademark application last year and reports that Trump Media considered acquiring Bakkt, a licenced crypto service provider. Trump has also voiced support for World Liberty Financial, a decentralised finance protocol. Through his company, which operates Truth Social and various crypto assets, he has become the first US president with direct ties to the industry.
Crypto supporters see this as a potential boost for regulatory acceptance, while critics like Senator Elizabeth Warren have raised concerns over his crypto-linked associates. As Trump deepens his involvement in digital assets, the industry watches closely for signs of shifting policies in Washington.
Hong Kong’s Securities and Futures Commission (SFC) has awarded its first two crypto operational licences of 2025 to exchanges PantherTrade and YAX. These licences bring the total number of crypto licences issued since mid-2024 to seven, as Hong Kong continues its push to regulate the virtual asset industry.
Both exchanges were registered under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (AMLO), marking a significant step in the city’s efforts to ensure secure crypto trading. The SFC has been focused on rigorous checks, including Know Your Customer (KYC) processes, asset safeguarding, and cybersecurity, to ensure high regulatory standards.
With Hong Kong aiming for a balanced approach, it has now formally licensed 10 exchanges since 2020, including four in December 2024. These measures are designed to protect investors while promoting growth in the digital asset sector.
Currently, only four cryptocurrencies—Bitcoin, Ether, Avalanche, and Chainlink—are legally available for trade in Hong Kong, highlighting the city’s cautious but forward-looking stance on crypto regulation.
El Salvador’s Congress has quickly approved a reform to its bitcoin law, aligning it with a recent agreement with the International Monetary Fund (IMF). The amendment, proposed by President Nayib Bukele and passed within minutes, makes bitcoin acceptance voluntary for businesses. Lawmakers from Bukele’s New Ideas Party, who hold a majority in Congress, ensured the bill’s swift passage.
Bitcoin was declared legal tender in El Salvador in 2021 alongside the US dollar, drawing international attention and strengthening Bukele’s reputation as a cryptocurrency advocate. However, an IMF-backed $1.4 billion loan deal, finalised in December, required limits on the government’s bitcoin exposure.
The lender specifically urged El Salvador to make bitcoin acceptance optional for the private sector, a key aspect of the newly approved law.
Ruling party lawmaker Elisa Rosales defended the reform, arguing it would secure bitcoin’s status as legal tender while ensuring its effective implementation. The law passed with 55 votes in favour and only two against.
Bukele’s government remains committed to bitcoin, recently confirming plans to continue acquiring the cryptocurrency for national reserves. Market optimism surrounding cryptocurrency policies under US President Donald Trump has contributed to bitcoin’s rising value.
Kazakhstan is moving to expand its legal crypto operations as President Kassym-Jomart Tokayev calls for urgent reforms. He stressed the need to improve the country’s infrastructure for digital assets, pointing out that most crypto users still operate in a legal grey area. Only around 5% of investors use regulated platforms, while the rest rely on unregistered services.
To address this, Tokayev urged financial regulators to develop a stronger legal framework. Authorities have already intensified their crackdown on illegal platforms, shutting down 36 unlicensed exchanges in 2024 with a total turnover of 60 billion tenge ($112.84 million). Officials have also blocked over 3,500 unregistered trading sites in coordination with the National Security Committee.
With these efforts, Kazakhstan aims to transition from a grey-market hub to a regulated crypto-friendly nation. As global attitudes towards digital assets shift, the country is positioning itself as a key player in the evolving crypto landscape.
Crypto.com will stop supporting Tether’s USDT for European users by 31 January, aligning with the EU’s Markets in Crypto-Assets (MiCA) regulations. The exchange recently secured a MiCA licence in Malta, allowing it to operate across the region, but compliance rules require removing certain non-compliant assets. Alongside Tether, Crypto.com will also delist Dai, Wrapped Bitcoin, Pax Gold, Pax Dollar, and its derivative tokens.
Users have until 31 March to convert these assets to MiCA-compliant alternatives. If not, they will be automatically switched to a stablecoin or asset of similar value. A Crypto.com spokesperson confirmed the decision only applies to EU customers and urged them to take action before the deadline.
This move makes Crypto.com the second major exchange to remove USDT in Europe, following Coinbase’s delisting last year due to MiCA’s stricter stablecoin rules. While Tether has taken steps to align with the new regulations, the future of its $138 billion stablecoin within the EU remains uncertain.
Coinbase has received regulatory approval to operate in Argentina, securing a Virtual Asset Service Provider licence from the National Securities Commission. The approval allows the exchange to offer its services within Argentina’s virtual asset framework, marking a significant step in its global expansion.
With inflation soaring and the local currency struggling, cryptocurrency adoption has surged in Argentina. Around 5 million Argentinians use crypto daily, viewing it as a tool to protect their wealth and access global financial markets. A recent Coinbase survey found that 87% of locals see digital assets as a way to enhance economic independence.
Coinbase’s operations in Argentina will be led by fintech expert Matías Alberti. The company plans to combine trading services with educational initiatives to help users navigate the risks and benefits of crypto. The company has highlighted security and compliance as key priorities, aiming to build trust in a market where financial stability remains a major concern.
French prosecutors have launched a new investigation into Binance, marking the second time authorities have scrutinised the crypto exchange. The probe includes allegations of drug trafficking, money laundering, and tax evasion, with possible additional charges yet to be disclosed. This follows an earlier inquiry in 2023 over suspected financial crimes linked to the platform.
Regulators worldwide have tightened their grip on cryptocurrency firms after the collapse of FTX and other high-profile failures. Binance has faced mounting legal challenges, including a record $4.3 billion settlement with US authorities. Despite leadership changes, including the resignation of founder Changpeng Zhao, the company remains under regulatory pressure.
As Binance navigates legal battles across multiple jurisdictions, its future in key markets remains uncertain. The latest investigation in France adds to the exchange’s ongoing struggles, reinforcing the global crackdown on crypto platforms accused of financial misconduct.
Indian fintech platform Cred, backed by Tiger Global and Peak XV, has become the first payment firm to offer access to India’s central bank digital currency (CBDC), the company announced on Tuesday. The Reserve Bank of India (RBI) began piloting the e-rupee, a digital equivalent to cash, in December 2022, initially limiting access to banks. In April 2024, the RBI expanded eligibility to payment firms, paving the way for wider adoption.
Cred’s e-rupee wallet will initially be available to select users, with YES Bank facilitating the issuance of digital currency tokens. Cred’s founder, Kunal Shah, said the initiative aims to streamline e-rupee transactions and promote adoption among India’s most creditworthy individuals. The company joins a competitive landscape, as major firms like Google Pay, PhonePe, Amazon Pay, and MobiKwik have also sought participation in the pilot.
While the e-rupee saw an initial surge in usage, adoption rates have since slowed, reflecting the challenges central banks face in popularising digital currencies globally. Cred’s involvement marks a significant milestone in advancing the accessibility and usability of India’s digital currency.
Metaplanet, a Tokyo-listed company, has unveiled a bold corporate treasury plan aiming to accumulate 10,000 Bitcoins by the end of 2025 and 21,000 by 2026. The initiative is designed to position the company as one of the world’s largest corporate holders of Bitcoin, with over $180 million worth of assets already in place.
The strategy dubbed the ’21 Million Plan’, involves issuing 21 million shares through moving strike warrants to raise nearly $740 million. This capital raise is set to be one of Asia’s largest bitcoin-focused equity raises. The plan aims to protect shareholder value by setting an exercise price at 100% of the previous day’s closing price, thus avoiding dilution.
Metaplanet has achieved impressive BTC yields, including a 309.82% return for Q4 2024, reinforcing the success of its strategy. The company’s Director of Bitcoin Strategy, Dylan LeClair, emphasised that the firm measures success by bitcoin yield, not fiat currencies. The company’s ultimate goal is to maximise Bitcoin per share for its shareholders, positioning Bitcoin not only as an asset but as an exit strategy.
