Russian President Vladimir Putin has signed a new federal law regulating crypto mining and granting legal recognition to digital currencies as property. The law, which will take effect on January 1, 2025, introduces a personal income tax of 13% to 15% on cryptocurrency sales, with mining operations exempt from value-added tax (VAT). It also mandates that mining infrastructure operators report their services to local authorities every quarter, with penalties for late submissions.
The legislation also recognises digital currencies as property, granting them legal status and allowing their use in cross-border transactions under Russia’s experimental legal regime. Crypto miners will be taxed progressively based on income, with a 13% rate on earnings up to 2.4 million rubles and 15% on income above that threshold. However, corporate profits from mining activities will face a higher tax rate of 25% from 2025 onwards.
Alongside the tax changes, Russia’s ongoing energy crisis has led to restrictions on mining activities in energy-scarce regions. Certain areas, such as Irkutsk and Donetsk, may face mining limits until 2031, which could have a significant impact on mining companies relying on cheap energy sources.
This regulatory clarity has contributed to a rise in demand for cryptocurrencies, reflected by an 8% increase in traffic to major exchanges in November. However, the energy-intensive nature of mining and regional restrictions remain key challenges for the industry.
Coinbase has announced it will end its USDC Rewards programme in the European Economic Area (EEA) on 1 December, citing the region’s incoming MiCA regulations as the reason. Customers eligible to earn rewards on their USD Coin balances can do so until 30 November, after which the service will cease. The EEA includes 30 nations, comprising 27 EU member states alongside Iceland, Norway, and Liechtenstein.
MiCA’s regulations, introduced in June, impose strict standards for stablecoin issuers, including a ban on offering interest for stablecoin holdings. The move has drawn criticism, with figures like Paul Berg, co-founder of Sablier, and Ripple’s David Schwartz calling the rules counterproductive to consumer interests.
Coinbase had previously announced plans to delist non-compliant stablecoins by the end of the year, including Tether’s Euro-pegged EURT. Tether recently confirmed it will cease support for EURT and shift focus towards MiCA-compliant tokens, such as EURQ and USDQ. The new framework is set to fully take effect by 30 December.
The Swiss canton of Bern’s parliament has approved a motion to commission a report on Bitcoin mining, despite opposition from the Government Council. The report, which passed with 85 votes in favour and 46 against, will explore the potential benefits and drawbacks of Bitcoin mining in the region. Specifically, it will assess how excess energy could be used for mining, the possible collaboration with Swiss Bitcoin miners, and how it could contribute to stabilising the local electricity grid.
Proponents of the report argue that Bitcoin mining could offer several advantages, including job creation, promotion of renewable energy, and grid stability, with the US state of Texas serving as a model. Despite the Government Council’s reservations, the proposal was supported by members of the Bitcoin Parliamentary Group, signalling a shift in the narrative around Bitcoin.
The report is part of a broader effort to shape Swiss energy policy and integrate Bitcoin mining into it, though the Government Council has pointed out that the issue of energy consumption is a global one, not local. Still, Switzerland’s reputation as a pro-crypto country remains intact, with cities like Zug and Lugano playing key roles in the blockchain industry.
Microsoft and Atom Computing have announced a significant breakthrough in quantum computing that could revolutionise blockchain mining. The two companies developed a quantum system with 24 entangled logical qubits using just 80 physical qubits, setting a new record in quantum efficiency. This achievement could eventually lead to a transformation in the world of proof-of-work (PoW) blockchain mining, as quantum systems become capable of outperforming traditional mining methods.
The advancement is especially notable for its potential to impact the security of blockchain networks like Bitcoin, which rely on SHA-256 encryption. Quantum computers, by applying Grover’s Algorithm, could significantly speed up the process of solving the PoW puzzle, threatening the security measures that have safeguarded blockchain technology. While Grover’s Algorithm has shown promise in small-scale experiments, it has yet to be proven on the large scale required for cracking SHA-256 encryption.
Though the timeline for practical quantum mining remains uncertain, with experts predicting it could take 10 to 50 years, Atom Computing and Microsoft aim to bring a 1,000-qubit quantum computer to market as early as 2025. This breakthrough could drastically shorten the path to quantum systems capable of rivaling traditional mining rigs.
21Shares, a Swiss wealth manager, has expanded its European offerings by adding four new exchange-traded products (ETPs) focused on various digital assets. Announced on 27 November, the new products are backed by Pyth Network, Ondo, Render, and the Near Protocol, representing sectors such as price oracles, asset tokenisation, decentralized computing, and artificial intelligence. These additions are part of a broader push by 21Shares to meet growing demand for crypto investment options in Europe.
The new ETPs, available for trading in cities such as Amsterdam and Paris, offer more flexibility, including the ability for investors to reinvest staking rewards from the Near Protocol ETP. By participating in Near’s proof-of-stake blockchain, investors can earn yield, potentially improving the performance of the ETP and driving greater returns.
This move follows 21Shares’ call for clearer regulatory guidelines for digital asset products in Europe. The company has been vocal about the need for comprehensive regulation, especially concerning crypto exchange-traded funds (ETFs) and ETPs. Despite progress with stablecoin and exchange regulations, 21Shares believes the European Securities and Markets Authority could play a key role in bridging these regulatory gaps.
The introduction of these new ETPs also builds on 21Shares’ earlier rebranding of its Ethereum Core ETP, which now includes staking rewards, reinforcing the company’s focus on enhancing returns for investors in the evolving crypto market.
India’s cryptocurrency market is thriving despite the government imposing high taxes on crypto trading. Since the implementation of a 30% tax on crypto gains and a 1% tax deducted at source in 2022, the community has shown resilience, maintaining its position as a global leader in adoption, according to the Chainalysis Global Adoption Index.
Driven by its youthful, tech-savvy population, India is home to over 100 million crypto owners in 2024. Local exchanges like ZebPay and CoinDCX highlight how seamless conversion systems and blockchain interest are fuelling growth, even under challenging tax policies. However, experts argue these taxes deter frequent trading and could hinder broader participation.
Industry leaders and analysts believe India’s crypto ecosystem has yet to realise its full potential. Calls for a more flexible regulatory framework are growing, with hopes that reforms could further energise the market and secure India’s leadership in cryptocurrency adoption.
OKX, a leading cryptocurrency exchange, has expanded into Belgium by launching its trading platform and self-custodial wallet. The new services offer Belgian customers access to over 200 cryptocurrencies, with euro deposits and withdrawals facilitated through Bancontact, a widely used payment system in the country.
Operating through its Malta-based entity, OKX provides services to Belgium under EU regulations without direct approval from Belgian authorities. Customers can trade after completing verification via the Itsme identification app, ensuring secure and compliant access.
With 25% of Belgians already engaged with cryptocurrency, OKX’s launch comes amid growing interest in digital assets. By 2028, crypto penetration in Belgium is projected to reach 28%. OKX’s entry aligns with its broader European expansion strategy, which includes prior launches in the Netherlands and plans for an EU regulatory hub in Malta.
Vancouver’s mayor, Ken Sim, is pushing for the city to embrace Bitcoin, positioning it as a leader in cryptocurrency adoption. During a city council meeting on 26 November, Sim proposed integrating Bitcoin into Vancouver’s investment portfolio as part of a broader effort to diversify financial assets.
The initiative aligns with a growing global trend of Bitcoin adoption by institutional investors. Major entities such as Japan’s Government Pension Investment Fund (GPIF) and the State of Wisconsin Investment Board have already included Bitcoin ETFs in their holdings. Similarly, asset management giants like Goldman Sachs are increasing their exposure to Bitcoin, showcasing its growing role in mainstream finance.
Sim’s vision highlights Bitcoin’s potential to preserve purchasing power while modernising the city’s financial strategies. If implemented, this move could place Vancouver among the world’s pioneering Bitcoin-friendly cities.
Tether, the issuer of USDt, has announced the discontinuation of its euro-pegged stablecoin, EURt. Users are advised to redeem their holdings within the next year, with a final deadline set for November 2025. The decision comes as Tether adjusts its strategy to align with Europe’s evolving regulatory landscape for stablecoins.
The move coincides with the implementation of the European Markets in Crypto-Assets (MiCA) Regulation, which will come into effect by late 2024. Tether previously criticised MiCA’s approach to stablecoins, citing concerns over systemic risks. As part of its shift, the company will now focus on MiCA-compliant initiatives, such as EURq and USDq stablecoins, developed with Dutch fintech firm Quantoz Payments.
Tether’s Hadron tool will play a central role in these projects, offering simplified stablecoin management and enhanced compliance mechanisms. By investing in MiCA-friendly solutions, Tether aims to foster a stable and inclusive financial ecosystem while redefining innovation in the stablecoin space.
A federal judge in Little Rock, Arkansas, has temporarily blocked state officials from shutting down a cryptocurrency mining firm owned by a naturalised US citizen of Chinese descent. The company, Jones Eagle, was targeted under Arkansas laws prohibiting property and business ownership by Chinese nationals or entities, despite its owner, Qimin ‘Jimmy’ Chen, holding US citizenship.
The court’s restraining order, issued by Chief Judge Kristine Baker, stops Arkansas from taking immediate action against Chen’s business. Chen argued the state’s actions were discriminatory, as he had previously provided documentation confirming his US citizenship and compliance with local laws. The state’s case relied on Acts 636 and 174, which restrict property ownership by individuals linked to China and foreign digital asset miners.
The restraining order is in effect for 14 days, allowing time for a hearing to decide whether it will be extended. Chen’s legal team intends to challenge the constitutionality of the laws, describing them as overreaching and discriminatory. The outcome could have broader implications for property and business rights in the US amidst growing scrutiny of enterprises linked to China.
