Ukraine is making significant progress towards legalising cryptocurrency, with a draft law set to be ready for its first reading by early 2025. Danylo Hetmantsev, head of the Ukrainian Parliament’s Committee on Finance, Tax, and Customs Policy, confirmed that the legislation is being developed in collaboration with the National Bank of Ukraine and the International Monetary Fund.
The proposed law aims to regulate cryptocurrency transactions and introduce taxation similar to securities. Profits from digital assets will be taxed only when converted into fiat currencies, avoiding tax exemptions to prevent potential misuse. European experts and the IMF have provided input to shape Ukraine’s cautious approach to the emerging market.
Ukraine’s journey towards crypto adoption has been accelerated by its reliance on digital assets during the Russian invasion, receiving millions in crypto donations for humanitarian and military purposes. With the first reading of the bill expected after the New Year, the country is aligning its regulations with international standards, including FATF compliance introduced in late 2023.
El Salvador has signed a mutual agreement with Argentina to advance their digital asset industries through collaboration and training. The partnership, announced by Juan Carlos Reyes, president of El Salvador’s National Commission of Digital Assets, pairs Argentina’s innovative blockchain sector with El Salvador’s expertise in digital regulation.
The agreement focuses on sharing knowledge and refining regulatory frameworks, with Reyes highlighting the benefits of cooperation. He noted El Salvador’s early adoption of digital asset regulations and its ongoing discussions with over 25 other nations for similar collaborations.
Reyes urged global regulators to act swiftly in creating effective crypto rules, warning against delays that could expose the industry to scams and financial crimes. El Salvador’s commitment to cross-border partnerships aims to foster global progress in the digital asset market.
Google’s latest quantum chip, Willow, has stirred discussions in the cryptocurrency world. Capable of completing a computation in minutes that would take supercomputers billions of years, Willow raised concerns over its potential to breach Bitcoin’s encryption, which secures the $2 trillion blockchain. Bitcoin’s price briefly dipped after the announcement but quickly recovered.
While the crypto community acknowledges the theoretical risks of quantum computing, panic remains subdued. Developers, including Ethereum’s founder Vitalik Buterin, suggest that blockchains can be updated to resist quantum threats, just as Bitcoin was improved with the Taproot upgrade in 2021.
For now, the threat seems distant. Willow’s achievement, though impressive, lacks immediate commercial applications. Experts agree the crypto industry has time to adapt before quantum computing poses a genuine risk.
Casa, a crypto custody company, has unveiled a new self-custody option called Praetorian, aimed at helping sovereign nations securely manage their Bitcoin reserves. The service uses multi-signature vaults spread across various jurisdictions, ensuring high levels of security and autonomy. Casa’s CEO, Nick Neuman, stated that self-custody gives nations complete control over their reserves, offering peace of mind even if the company ceases to operate.
The idea of Bitcoin as a strategic reserve is gaining traction. Investor Anthony Pompliano highlighted the global race for Bitcoin, noting how its scarcity could drive nations to secure their share. Recently, US Senator Cynthia Lummis proposed converting some gold holdings into Bitcoin, while Vancouver Mayor Ken Sim suggested Bitcoin could serve as a treasury asset to protect against inflation.
At the Bitcoin MENA 2024 conference, former Binance CEO Changpeng Zhao predicted that China would establish a Bitcoin reserve if the US moves forward with such plans under the incoming administration.
A California court has ordered five individuals to pay over $5 million for their roles in the IcomTech Ponzi scheme. Between 2018 and 2019, the scheme defrauded investors through a fake Bitcoin trading platform. IcomTech promised 100% returns every six weeks, ultimately misappropriating $8.4 million of victims’ funds.
The group, led by founder David Carmona, lured over 190 investors with lavish expos and false claims of wealth. The court found them guilty of violating the Commodity Exchange Act and Commodity Futures Trading Commission (CFTC) regulations. Each was fined $1 million and banned from trading in CFTC-regulated markets.
In addition to financial penalties, the individuals received prison sentences ranging from five to ten years. The CFTC emphasised the importance of protecting investors from such schemes, urging vigilance in the cryptocurrency sector.
The US Supreme Court has dismissed an appeal by Nvidia, rejecting its attempt to block a securities fraud lawsuit accusing the chipmaker of misleading investors about its reliance on the volatile cryptocurrency market. The decision upholds a lower court’s ruling, allowing a 2018 class-action lawsuit led by Swedish investment firm E. Ohman J:or Fonder AB to proceed. The justices, offering no explanation in their one-line order, had previously expressed hesitation about addressing the case’s technical and factual complexities during November arguments.
The lawsuit centres on allegations that Nvidia’s leadership, including CEO Jensen Huang, downplayed how much of the company’s 2017-2018 revenue growth stemmed from crypto-related purchases. Nvidia’s chips gained popularity during the cryptocurrency boom but faced a sales slump when the market cooled in late 2018, leading to a drop in the company’s stock price. A federal judge initially dismissed the case, but the Ninth Circuit Court of Appeals revived it, concluding that plaintiffs sufficiently alleged Nvidia knowingly made misleading statements.
Nvidia has denied wrongdoing and vowed to continue its defence, emphasising the need for clear standards in securities litigation to protect shareholders. However, the plaintiffs argue their case is well-supported by expert analysis and insider accounts. Deepak Gupta, representing the shareholders, called the Supreme Court’s dismissal a victory for corporate accountability. President Biden’s administration backed the investors, reflecting broader concerns about corporate transparency in securities practices.
This case mirrors another recent Supreme Court decision involving Meta, where justices also dismissed a securities fraud lawsuit. Both rulings highlight the challenges of navigating legal thresholds for investor class actions under stringent US securities laws.
Australia‘s Federal Court has fined Bit Trade, the local operator of cryptocurrency exchange Kraken, A$8 million ($5.1 million) for unlawfully offering credit facilities to over 1,100 customers. The ruling came after the Australian Securities and Investments Commission (ASIC) filed civil proceedings against the company, accusing it of non-compliance with regulations for its margin trading product.
ASIC revealed that Bit Trade failed to assess whether its margin extensions—a form of credit repayable in digital assets like bitcoin or national currencies—were suitable for customers. This led to combined customer losses exceeding $5 million, while Bit Trade charged over $7 million in fees and interest. The court classified the margin extension product as a credit facility requiring a specific consumer suitability document, which the company had not provided.
In a statement, Kraken expressed disappointment, arguing the ruling could stifle economic growth in Australia. The exchange emphasised its willingness to work with regulators to shape the evolving cryptocurrency framework. The case marks a milestone for ASIC, as it is the first penalty imposed on a company for failing to provide a target market determination for a financial product.
Japan is set to introduce its first cryptocurrency-backed credit card, thanks to a partnership between Slash Vision Labs and a Japanese credit card issuer. While specific details about the issuer remain under wraps, the deal is expected to bring the Slash Card to market in 2025. The card will be fully compliant with Japan’s cryptocurrency and payment regulations and aims to make cryptocurrency payments more accessible, with unique features such as ‘Pay-to-Earn’ airdrops for global and domestic crypto projects.
Slash, known for supporting memecoin projects like Chiitan Coin (CTAN), has also made moves to integrate crypto into various aspects of Japanese pop culture. Through its platform, Slash has already enabled payments for manga content on Comilio, a platform allowing users to pay for manga with cryptocurrency. The company’s broader mission includes introducing cryptocurrency payment solutions and expanding Web3 opportunities in Japan.
The move aligns with Japan’s growing interest in integrating cryptocurrencies into mainstream finance and entertainment, marking another step in the country’s embrace of digital assets and their growing role in daily transactions.
Hong Kong is moving quickly to position itself as a global crypto hub, with plans to expedite licensing for crypto trading platforms next year. Joseph Chan, Acting Secretary for Financial Services, announced a streamlined licensing process and the establishment of a consultative panel to ensure sustainable and secure innovation in the sector.
The government is also considering broader financial policies, including potential investments in digital assets. While crypto remains a minimal part of the Exchange Fund’s strategy, Chan said external managers could explore diversified holdings.
These steps align with Hong Kong’s earlier efforts to lead in crypto innovation. A proposed stablecoin framework and a plan to waive taxes on crypto gains for wealthy investors reflect the city’s ambitions to attract global asset managers and strengthen its financial hub status.
SEC commissioner Hester Pierce has called on the newly elected government to reform cryptocurrency regulations and address the challenges faced by the digital asset industry. She criticised the current bottleneck of government rules hindering the sector’s access to essential services and urged a collaborative approach to create a clear regulatory framework.
Pierce emphasised that regulators must work alongside industry players to assess existing rules and make necessary adjustments. She advocated for public participation in shaping policies to ensure a transparent and inclusive process that benefits both regulators and the market.
Speaking to Fox Business, Pierce also praised Paul Atkins, the newly appointed SEC chairman, for his efficient and problem-solving approach to governance. While she refrained from commenting on Ripple’s ongoing legal battle, Pierce highlighted the inefficiency and high cost of such lengthy lawsuits as a method of regulating the industry.
