Polish authorities have detained Dmitry V., the former head of Russia’s crypto exchange WEX, in Warsaw following an extradition request from the US Department of Justice. During his tenure at WEX, Dmitry V. was suspected of fraud and money laundering. He is facing potential extradition to the US, where charges could carry a maximum 20-year prison sentence.
Dmitry V. has been linked to WEX, a successor to BTC-e, once Russia’s largest cryptocurrency platform before its collapse in 2018. The exchange was infamous for lax identity checks and ties to high-profile crypto hacks, including the Mt. Gox breach. Around $450 million remains unaccounted for from WEX, which had processed over $9 billion in transactions during its operation.
This is not Dmitry V.’s first arrest; he was previously detained in Poland in 2021 and later apprehended by Interpol in Croatia in 2022. His history also includes a 2019 arrest in Italy, which was short-lived due to errors in the extradition process.
Donald Trump’s family and allies are heading to Abu Dhabi for the Gulf’s largest bitcoin gathering amid record-breaking highs for the digital currency. The Bitcoin MENA conference is set to draw over 6,000 attendees, including key figures in Trump’s cryptocurrency initiative. Eric Trump will deliver the keynote address, followed by exclusive sessions for top investors.
World Liberty Financial, co-founded by Trump and led by billionaire Steve Witkoff, plays a central role in the event. Trump himself is the chief crypto advocate, while his sons act as brand ambassadors. The platform has already attracted major investors like blockchain entrepreneur Justin Sun, despite Sun’s legal troubles under the Biden administration.
Bitcoin’s rise to $100,000 has fuelled excitement, with Trump pledging to make the US the global crypto hub. Former PayPal executive David Sacks has been appointed White House czar for AI and cryptocurrencies, reflecting a broader push towards digital innovation. Keynote speeches and whale-only sessions highlight the growing influence of crypto in Trump’s circle and the broader industry.
The conference also features controversial figures, such as Binance founder Changpeng Zhao, who recently served a US prison sentence. With prominent backers and growing market momentum, the event signals a pivotal moment for cryptocurrency and its role in shaping Trump’s political and economic agenda.
The Czech Republic has introduced a landmark law exempting bitcoin holdings of over three years from capital gains tax. Approved unanimously by parliament on 6 December, the new rule will take effect on 1 January 2025, offering significant incentives for long-term cryptocurrency investors.
Under the law, individuals can benefit from tax exemptions if their annual income from crypto transactions remains under CZK 100,000 ($4,000) or if digital assets have been held for over three years. Prime Minister Petr Fiala highlighted the law as a step towards modernising financial regulations and fostering a favourable environment for cryptocurrency adoption.
The tax exemption also includes provisions for assets acquired before 2025, encouraging retroactive benefits under specified conditions. The reforms align with the EU’s Markets in Crypto-Assets (MiCA) framework, placing the Czech Republic among global leaders like Switzerland and the UAE in promoting crypto-friendly policies.
Google has filed a lawsuit against the Consumer Financial Protection Bureau (CFPB) over its decision to place the company’s payment division under federal supervision. The legal dispute arises from the CFPB’s claims that Google’s handling of its payment products, including a discontinued peer-to-peer payment service, posed risks to consumers.
The lawsuit, lodged in the Washington, DC district court, argues that the CFPB’s actions constitute government overreach. Google asserts the decision was based on limited and unverified user complaints, stating that a discontinued product cannot pose consumer risks. The CFPB, however, maintains that its supervisory authority is essential to enforcing compliance with financial laws, even for defunct services.
Google spokesperson José Castañeda described the agency’s oversight as unnecessary, reiterating that the company’s payment products have always prioritised user safety. Google also claims the CFPB set an unreasonably low standard for determining consumer risks, leading to undue regulatory burdens.
The CFPB’s authority to oversee nonbank financial institutions, announced in 2022, allows it to conduct examinations and intervene against potential risks to consumers. Google contends that applying such measures to its payments division is unjustified and aims to challenge the agency’s approach in court.
Vancouver’s city council will soon debate a proposal by Mayor Ken Sim to integrate Bitcoin into municipal finances. Scheduled for 11 December, the motion seeks to diversify financial reserves and explore options such as accepting taxes and fees in Bitcoin or converting a portion of the city’s reserves into digital currency. Sim’s ABC Vancouver party holds a council majority, making the proposal likely to pass.
The initiative highlights Bitcoin’s potential to protect purchasing power from inflation and promote innovation. Vancouver, known as a crypto-friendly hub since hosting the world’s first Bitcoin ATM in 2013, would join other jurisdictions like El Salvador and Switzerland’s Zug in embracing Bitcoin. However, some critics point to environmental concerns tied to Bitcoin mining and British Columbia’s existing moratorium on new mining projects due to electricity usage.
Mayor Sim, an outspoken Bitcoin advocate, described the cryptocurrency as a revolutionary invention during a recent interview. While the motion has sparked debate, legislative hurdles remain, as neither Vancouver’s nor British Columbia’s charters currently permit the use of cryptocurrency for municipal services.
Ethiopia has rapidly become a major player in Bitcoin mining, now contributing 2.5% of the global hash rate. According to local miner Kal Kassa, this figure is expected to more than double within the year, with local operations consuming 600 MW of power. By year-end, this could rise to 1 gigawatt, increasing Ethiopia’s share to 7% of the global Bitcoin network’s hash rate.
The country’s rise as a mining powerhouse follows China’s 2021 ban on Bitcoin mining, prompting many Chinese miners to relocate. Companies like Bitmain-backed BitFuFu and BIT Mining have set up operations in Ethiopia, attracted by the nation’s abundant hydropower and surplus renewable energy.
The Ethiopian government has actively supported the industry, generating over $55 million in revenue over the past 10 months from agreements with Bitcoin mining companies. This shift could position Ethiopia and other early Bitcoin-adopting nations as new economic leaders in the coming decades.
Coinbase has launched TRUSThub, a new platform designed to simplify compliance and secure data sharing among Virtual Asset Service Providers (VASPs). Unveiled on 5 December, the platform aims to help VASPs meet the requirements of the Travel Rule, which mandates the exchange of specific customer information for certain transactions. TRUSThub will enable seamless data transmission, even to non-members or unregulated entities, and is set to be accessible to TRUST members by the end of 2024.
With prominent VASPs like BitGo, Binance.US, and PayPal on board, TRUSThub will provide a range of features to support compliance and innovation in the rapidly evolving digital asset market. By automating recipient identification and securely sharing Travel Rule data, the platform addresses the growing need for secure information sharing in the crypto industry.
The TRUSThub platform focuses on five key principles: compliance, interoperability, simplicity, usability, and security. These pillars ensure that data sharing aligns with regulatory expectations while maintaining privacy and user satisfaction. As a result, TRUSThub is expected to make compliance more scalable and user-friendly, offering significant benefits to both members and the broader crypto ecosystem.
The Central Bank of Chile has firmly rejected Bitcoin as a national reserve asset, citing regulatory and practical challenges. According to the institution, Bitcoin fails to meet the International Monetary Fund’s standards for reserve assets, which demand security, liquidity, and reliability. Legal restrictions further limit the bank’s reserves to traditional assets like gold and government-backed securities.
Officials emphasised that reserve assets must provide stability during economic stress, a requirement Bitcoin’s volatility does not satisfy. The bank also pointed out technical hurdles in integrating cryptocurrency with its existing systems, reinforcing its preference for conventional financial tools.
Chile’s cautious stance diverges sharply from neighbouring Brazil, where lawmakers are considering legislation introducing strategic Bitcoin reserves. As global debates on cryptocurrency adoption continue, Chile remains committed to its conservative financial policies, prioritising stability over experimentation with digital assets.
At the Investment Forum in Moscow on 4 December, Russian President Vladimir Putin hailed Bitcoin and digital currencies as essential for reducing financial inefficiencies and increasing economic stability. He argued that cryptocurrencies like Bitcoin provide an alternative to the US dollar, which he criticised for being used by the US government to push its political agendas.
Putin pointed to Russia’s $300 billion in frozen reserves, highlighting how this has led many countries to explore safer alternatives like Bitcoin. He emphasised that no one can ban Bitcoin, asserting that these technologies will inevitably evolve as nations seek to lower costs and improve reliability.
Russia has already taken significant steps in embracing cryptocurrencies, with new legislation recognising them as property and offering tax relief for crypto transactions. It signals Russia’s intent to foster innovation and protect its financial system from external pressures.
Putin’s comments align with broader discussions within BRICS nations about using digital currencies for cross-border payments, further challenging traditional financial systems and solidifying crypto’s role on the global stage.
The Federal Deposit Insurance Corporation (FDIC) has begun directly monitoring financial technology (fintech) companies partnering with banks across the United States. New system like this one aims to enhance oversight by identifying risks associated with these partnerships before they threaten banking stability. The monitoring system also allows regulators to maintain consistent supervision, even if fintech firms change their banking partners.
The move comes amid heightened scrutiny of bank-fintech collaborations, following the collapse of Synapse Financial Technologies in April. The startup, backed by Andreessen Horowitz, had provided critical services enabling fintech firms to offer financial products via FDIC-insured banks. Its failure left thousands of users without access to their funds and brought significant regulatory attention to the sector.
In response, the FDIC has proposed strengthening bank record-keeping requirements and expanding the definition of brokered deposits to include fintech-related funds. While these rules are not expected to take effect before 2025, the new monitoring framework provides examiners with an additional tool to safeguard financial stability without waiting for legislative approval.
FDIC Chairman Martin Gruenberg, who is stepping down in January, has played a central role in developing this regulatory approach. His leadership has been pivotal in navigating the challenges posed by the evolving relationship between traditional banking and fintech startups.
