Binance founder Changpeng Zhao has stirred a debate about cryptocurrency adoption in the UAE by claiming the nation holds $40 billion in Bitcoin. This figure, shared in a tweet, quickly captured the attention of industry professionals, including crypto lawyer Irina Heaver, who questioned the claim’s validity, suggesting it may be AI-generated content lacking credible evidence. Zhao acknowledged the uncertainty but suggested the number could be plausible, given the region’s wealth and the growing number of high-net-worth individuals.
The conversation also highlighted the UAE’s expanding cryptocurrency ecosystem, especially in Dubai. Zhao reflected on the city’s rapid transformation from hosting only a few crypto firms in 2021 to now becoming a hub for thousands of blockchain-based businesses. Dubai’s favourable regulatory frameworks, such as the Dubai Multi Commodities Center’s Crypto Center, have been key in attracting global crypto companies.
While the exact value of the UAE’s Bitcoin holdings remains unverified, the ongoing debate underscores the country’s increasing prominence in the cryptocurrency space.
Tether, the company behind the $140 billion cryptocurrency USDT, is making strides in artificial intelligence with plans to launch its own AI platform by the end of March 2025. CEO Paolo Ardoino confirmed the timeline in a recent post, marking a significant step in Tether’s ongoing diversification.
Under Ardoino’s leadership, Tether has broadened its focus, venturing into energy, payments, telecommunications, AI, and commodities trade financing. The company restructured its corporate operations earlier this year to support this shift, further reflecting its ambitions beyond the stablecoin market.
Last year’s acquisition of a stake in AI and cloud computing firm Northern Data hinted at Tether’s expanding interests in the AI sector. While details about the upcoming platform remain scarce, Ardoino emphasised Tether’s commitment to building technology that promotes freedom, independence, and resilience.
Spacecoin XYZ has made history with the launch of its first satellite, marking a groundbreaking step towards securing blockchain networks in outer space. The satellite, which was launched aboard SpaceX’s Falcon Heavy on 21 December, represents the first milestone in establishing the ‘Spacecoin layer‘ in Earth’s orbit, according to co-founder Daniel Bar.
Equipped with ‘crypto engines’ and powered by solar panels, the satellite forms the foundation of a larger constellation planned for 2025. This fleet of seven to ten satellites will enable the activation of the Spacecoin mainnet, a project designed to offer unparalleled levels of security and resilience for blockchain networks.
Spacecoin’s ambitions extend far beyond securing blockchains, as outlined in its Blue Paper. The company envisions a decentralised infrastructure network featuring a space-based layer-1, the Celestial Chain, and a terrestrial layer-2, the Uncelestial Network. Adviser Dahlia Malkhi highlighted the untamperable nature of the satellite’s hardware, describing it as a trusted platform for an immutable history that could surpass human lifetimes.
Botswana’s central bank has stated that while the country’s local crypto markets are still underdeveloped, they pose minimal risks to financial stability. However, the bank cautioned that as crypto becomes more interconnected with the broader financial system, it may present future systemic risks. The bank emphasised the need for regulatory frameworks to address potential risks as the sector evolves.
While the risks from crypto assets are currently low, the Bank of Botswana acknowledged ongoing concerns about misconduct in the sector. To safeguard the financial system, regulators must develop oversight mechanisms to prepare for future growth in digital assets.
The central bank also flagged digital payment instruments as a significant security risk, particularly in relation to money laundering and terrorist financing. The anonymity offered by these platforms increases the potential for illicit financial activities, prompting the need for enhanced market surveillance and cooperation with law enforcement.
Cryptocurrency theft reached $2.2bn (£1.76bn) in 2024, with North Korean hackers reportedly responsible for $1.3bn, according to a Chainalysis report. The total marks a 21% increase from 2023, though it remains lower than peak years.
The study highlights that hackers often target private keys used to access crypto platforms, causing severe losses for centralised exchanges. Significant breaches included a $300m theft from Japan‘s DMM Bitcoin and a $235m loss from India-based WazirX. Many attacks were linked to citizens of North Korea posing as remote IT workers.
The United States government has accused Pyongyang of using stolen funds to evade sanctions and finance weapons programmes. Recently, 14 North Koreans were indicted in a federal court for alleged extortion schemes, while the State Department announced a $5m reward for information on these activities.
Craig Wright, an Australian computer scientist, has been found in contempt of court for falsely asserting he is Bitcoin’s creator, Satoshi Nakamoto. Despite a High Court ruling in March debunking his claim, Wright continued launching lawsuits seeking intellectual property rights over Bitcoin, including a $1.2 trillion demand.
The court described Wright‘s actions as ‘legal terrorism’ and sentenced him to a suspended 12-month prison term. If he persists, he risks jail time. Wright’s claim lacked concrete evidence, prompting the cryptocurrency industry to unite against him.
The court found Wright ‘lied extensively’ in his pursuit of recognition, creating a ‘chilling effect’ on the industry. The identity of Bitcoin’s inventor, Satoshi Nakamoto, remains unknown, as all claims, including Wright’s, have been discredited.
Key policymakers, industry leaders, and blockchain innovators convened in Washington, D.C., for the Blockchain Association’s third annual Policy Summit. Held from 16 to 17 December 2024, the event explored the intersection of blockchain innovation, regulatory clarity, and national security, drawing prominent figures such as House Majority Whip Tom Emmer, Congressman Mike Flood, and Congressman Wiley Nickel.
The discussions centred on regulating stablecoins, securities laws, and oversight by agencies like the Securities and Exchange Commission (SEC). Participants emphasised the need for balanced regulation to foster innovation while ensuring national security. Congressman Mike Flood highlighted the importance of state and federal collaboration, expressing optimism about partnerships between the SEC and the Commodity Futures Trading Commission (CFTC).
President-elect Donald Trump addressed attendees via video, affirming his administration’s support for blockchain technology and its role in bolstering national security. Industry representatives, including decentralised projects like CESS, Filecoin, and Helium, showcased the potential of blockchain to safeguard sensitive information and enhance privacy. Calls for practical regulatory approaches echoed throughout the summit, reflecting the industry’s commitment to progress through cooperation with policymakers.
El Salvador has added $1 million worth of Bitcoin to its strategic reserve, purchasing 11 BTC shortly after securing a $1.4 billion financing deal with the International Monetary Fund (IMF). This latest acquisition brings the nation’s holdings to nearly 5,981 BTC, valued at around $580 million. The move diverges from its previous ‘one Bitcoin a day’ policy announced by President Nayib Bukele last year.
The IMF agreement, however, comes with stipulations that aim to limit the government’s involvement in cryptocurrency activities. El Salvador agreed to confine its Bitcoin transactions, make private sector acceptance voluntary, and ensure taxes can only be paid in US dollars. Additionally, the government plans to sell or phase out the Chivo crypto wallet, with private wallets expected to take over its role in the market.
Despite these restrictions, the National Bitcoin Office reaffirmed its commitment to Bitcoin as a core part of the country’s strategy, hinting at potential accelerated purchases in the future. Director Stacy Herbert assured citizens that Bitcoin would remain legal tender, even as the IMF deal awaits final approval. This marks the culmination of years of negotiations, underscoring the challenges posed by Bukele’s ambitious Bitcoin policies.
Spot Bitcoin ETFs in the US faced $680 million in outflows on 19 December, following Bitcoin’s fall below $96,000. This marks the end of a 15-day inflow streak that had brought over $6.7 billion into funds. Fidelity’s FBTC led the outflows, with Grayscale and ARK 21Shares also seeing significant withdrawals. However, WisdomTree’s BTCW recorded modest inflows, standing out as an exception on an otherwise difficult day for the market.
The broader cryptocurrency market struggled as the Federal Reserve announced a cautious stance on future rate cuts, despite implementing a 0.25% reduction. Bitcoin fell to $96,751, a 4.4% decline, whilst trading volumes in Bitcoin ETFs surged to $6.31 billion. The Fed’s hawkish tone, projecting only two additional cuts by 2025 alongside delayed inflation targets, has dampened investor sentiment.
Ethereum ETFs mirrored Bitcoin’s trend, recording $60 million in outflows. Grayscale’s ETHE led these withdrawals, although Fidelity and VanEck managed small inflows. Despite the day’s challenges, Ethereum ETFs still hold a positive net inflow of $2.4 billion. Ethereum’s price dropped 8.1%, landing at $3,378 as the market absorbed the Federal Reserve’s cautious outlook.
Worldcoin, co-founded by OpenAI CEO Sam Altman, has been instructed to delete all iris scan data collected during its operations. The Spanish Data Protection Agency (AEPD) confirmed the enforcement after collaborating with Bavaria’s data watchdog, which ruled the venture breached European Union privacy laws.
The project, designed to create a global identity system using biometric data, faced criticism across multiple countries. In March, Spain’s High Court upheld a temporary ban on the iris-scanning initiative, rejecting an appeal from Worldcoin’s owners.
Based in Bavaria, Germany, Worldcoin rebranded itself as ‘World’ and had aimed to reward participants with free cryptocurrency and digital IDs in exchange for biometric verification. Privacy advocates have voiced strong concerns over the storage and handling of sensitive data.
The directive marks a significant regulatory challenge for Worldcoin, reflecting the growing scrutiny of biometric technologies under Europe’s strict privacy standards. Compliance with the deletion order is now essential to align with the General Data Protection Regulation.
