Indian tax authorities have uncovered a complex money laundering scheme involving hawala networks and cryptocurrency transactions in Jaipur. The investigation, triggered by raids on local wedding planners, led to the seizure of $2 million (₹20 crores) in cash and jewellery. Officials also recovered three crypto wallets linked to the operation, including one tied to a major global exchange.
The scheme involved clients making unreported cash payments exchanged for cryptocurrencies like Bitcoin and Tether through hawala operators in Gujarat and Rajasthan. Hawala, an illegal payment system, allows funds to be transferred abroad without moving money physically. Authorities believe the perpetrators exploited crypto exchanges with weak KYC policies or intermediaries to launder funds.
Records of these activities, including WhatsApp messages, emails, and spreadsheets, reveal the network extends beyond Jaipur to cities like Mumbai, Hyderabad, and Delhi. The operation also implicated resorts, hotels, and event service providers who accepted cash or bank payments. The tax department plans further raids across India to tackle tax evasion in the wedding and events industry.
Ukraine is preparing to block Russia’s use of Bitcoin and other cryptocurrencies in international trade. The announcement follows comments from Russian Finance Minister Anton Siluanov, who confirmed that Russian companies use crypto to bypass Western sanctions.
Vladyslav Vlasiuk, an advisor to Ukraine’s president, stated that Ukraine had warned its international partners of Russia’s crypto strategy earlier this year. Measures, including sanctions and other solutions, are now in development to prevent unwanted crypto payments. Ukraine remains committed to limiting Russia’s ability to evade sanctions through digital currencies.
Russia has sought alternatives to traditional payment systems as sanctions disrupt its trade with countries like China. Some Russian companies have reportedly used stablecoins for transactions with Chinese partners. This follows the Kremlin’s recent legal framework allowing Bitcoin miners to use crypto for international trade, signalling an intensified reliance on digital assets to navigate economic restrictions.
MicroStrategy Inc., the business intelligence firm and the largest corporate holder of Bitcoin has emerged as the top-performing cryptocurrency stock of 2024. The company’s stock surged by an impressive 402%, driving its market cap to $83 billion. The rise aligns with MicroStrategy’s ongoing strategy of acquiring more Bitcoin throughout the year, with the firm now holding approximately 444,262 BTC, valued at over $45 billion at current prices. The rally in Bitcoin’s price, which soared by 120% in 2024, contributed significantly to the company’s impressive performance, bolstered by factors like the approval of a spot Bitcoin ETF and geopolitical support for the digital asset.
Alongside MicroStrategy, other crypto-linked stocks also saw significant gains, with Core Scientific rising 307%, Terawulf gaining 142%, and Bitdeer Technologies increasing by 122%. These firms benefitted from strong market conditions and strategic moves such as AI partnerships and mining expansions. However, MicroStrategy remains the standout performer, driven by its growing Bitcoin holdings.
Looking ahead, MicroStrategy is set to hold a shareholder meeting in early 2025, where it will present key proposals to increase the number of authorized shares. These proposals are part of the company’s broader plans to raise $42 billion through equity and fixed-income instruments, further cementing its position as a major Bitcoin treasury holder. Chairman Michael Saylor sees these measures as essential for the company’s continued growth and expansion in the crypto space.
Elder fraud scams are becoming increasingly sophisticated, as illustrated by a recent case where an 82-year-old woman lost her life savings to criminals posing as the FBI. After depleting her accounts, the scammers coerced her into withdrawing funds via a Bitcoin machine and kept her isolated in a hotel under the guise of ‘protection.’ Despite her family’s intervention, the scammers struck again, convincing her to hand over $20,000 by exploiting false hopes of recovering a promised reward.
Elderly individuals are prime targets for such schemes, often due to their savings, trust in others, and unfamiliarity with modern technology. Fraudsters employ tactics like intimidation, urgency, and psychological manipulation to exploit their victims. According to recent statistics, seniors lose billions annually to scams, with the emotional toll leaving many feeling ashamed and fearful.
To combat these threats, experts recommend verifying unsolicited requests, limiting personal information sharing, using strong security measures, and reporting suspicious activity. Education and vigilance are key to protecting vulnerable individuals and ensuring scammers are outsmarted.
Turkey has unveiled plans for stringent cryptocurrency regulations set to take effect in February 2025. These measures aim to align Turkey’s anti-money laundering frameworks with global standards, inspired by the European Union’s MiCA framework. Crypto service providers will be required to verify the identities of users making transactions exceeding 15,000 Turkish lira (£425), with unregistered wallets also subject to strict checks.
The new rules place significant compliance burdens on crypto firms, including mandatory licensing from the Capital Markets Board and ongoing oversight by the Financial Crimes Investigation Board. Turkey’s Scientific and Technological Research Council (TÜBİTAK) will also audit the technological systems of these firms. While the regulations aim to enhance consumer protection and combat financial crimes, critics warn they could discourage smaller startups and limit innovation.
Turkey, ranked eleventh globally for crypto adoption, continues to attract international attention as these regulations shape its evolving crypto landscape. Despite limitations on crypto payments, the proposed rules may open doors for larger, established firms to expand in the Turkish market.
Russia is advancing its use of digital financial assets (DFAs), including Bitcoin, to facilitate foreign trade. Finance Minister Anton Siluanov revealed in a recent interview that these transactions are part of an experimental legal framework that began in September 2024. The initiative is seen as a step towards modernising global trade settlements and reducing reliance on the US dollar.
Siluanov highlighted that Russia’s ability to mine Bitcoin domestically supports this effort. “We can pay for goods with digital financial assets, including Bitcoin we mine here,” he said, adding that such practices will be further developed in the coming year. The shift aligns with Russia’s 2021 law recognising DFAs, although their use as domestic payment methods remains prohibited.
While embracing Bitcoin for trade, Siluanov has cautioned against investing in cryptocurrencies, citing their volatility. Despite Bitcoin reaching record highs recently, he advised against viewing it as a secure investment, pointing to safer alternatives. Russia’s push towards DFAs marks a significant shift in its economic strategy, aiming for resilience and innovation in global markets.
Hong Kong is advancing its Stablecoins Bill as the government seeks to establish a clear regulatory framework for digital assets. The proposed legislation was published on 6 December and entered the Legislative Council for its first reading on 18 December. Before becoming law, the bill requires three readings and approval from the region’s chief executive.
The bill outlines key regulations, including mandatory licensing for stablecoin issuers through the Hong Kong Monetary Authority. Issuers must meet strict requirements, such as maintaining stable reserves and mechanisms to ensure the value of their coins. Only regulated entities will be authorised to market or offer stablecoins to the public, with robust consumer protections included.
If enacted, this legislation could reshape the stablecoin market in Hong Kong, potentially mirroring Europe’s experience under MiCA regulations. In Europe, compliance-driven issuers have thrived while others exited the market, paving the way for a more regulated digital asset landscape.
Japan’s Prime Minister Shigeru Ishiba stated that his government lacks sufficient information about Bitcoin reserve strategies being considered by the US and other nations. The remarks followed questions in the House of Councilors about whether Japan should explore adding Bitcoin to its foreign exchange reserves, a proposal supported by Councilor Satoshi Hamada. However, Ishiba clarified that crypto assets like Bitcoin do not fall under Japan’s foreign exchange framework.
The debate comes amid global discussions on Bitcoin’s role in national reserves. In Brazil, a recent bill seeks to establish a sovereign Bitcoin reserve, while in the US, speculation has emerged about potential executive action to adopt Bitcoin as a reserve asset. These developments have reignited interest in digital assets as part of national financial strategies.
Meanwhile, Japan continues to show promise in the stablecoin market. Ripple CEO Brad Garlinghouse highlighted the growing interest in a yen-based stablecoin and praised Japan’s proactive approach to cryptocurrency regulation. Despite being considered a conservative market, Japan’s regulatory clarity positions it as a leader in the digital asset space.
Russia’s central bank has announced plans to develop a new platform to curb illegal financial activities, including unregulated crypto-to-fiat over-the-counter services. Collaborating with Rosfinmonitoring and financial institutions, the initiative aims to track and block suspicious transactions while preventing misuse of banking systems.
The system focuses on individuals known as ‘droppers,’ who exploit bank accounts for illicit purposes such as money laundering, drug trade, and unregulated cryptocurrency exchanges. Currently, monitoring is limited to individual banks, making it challenging to prevent offenders from opening accounts elsewhere. A centralised database is expected to improve information sharing across all financial institutions.
The Bank of Russia has stressed the need for a solution that enforces regulations without causing unnecessary harm to law-abiding citizens. While the project is still in development, no official timeline for its launch has been provided.
South Korea has seen a significant rise in cryptocurrency holders, with over 610,000 new users recorded in November. According to data shared by Yonhap News, the country now has 15.6 million crypto investors, representing more than 30% of the population. The data, sourced from major exchanges like Upbit and Bithumb, highlights the growing influence of digital assets in South Korea’s financial landscape.
The surge coincided with Donald Trump’s win in the US presidential election on 5 November. Many in the global crypto community believe Trump’s victory could signal a shift towards more favourable regulations for digital currencies, a sentiment that has resonated strongly in South Korea.
Additionally, the introduction of the Virtual Asset User Protection Act by South Korea’s Financial Services Commission has enhanced investor confidence. Under the new regulations, crypto exchanges must prioritise the security of users’ assets. This is the first time such comprehensive statistical data on crypto ownership has been released, further underscoring the sector’s rapid growth.
With South Koreans holding $70.3 billion in crypto assets and transaction volumes nearing those of the local stock market, the country’s crypto boom shows no signs of slowing.
