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.
Nevada has introduced blockchain technology into its electoral certification process to enhance transparency and security. Secretary of State Francisco Aguilar announced the move, emphasising that blockchain would make altering or counterfeiting certification documents significantly more difficult. The system aims to ensure election integrity, positioning Nevada as a leader in adopting emerging technology for secure elections.
The blockchain system will serve as an immutable ledger to record the certification process, providing a trustworthy and transparent official election record. While details about the implementation remain limited, it’s unclear whether Nevada has developed its blockchain or is relying on existing platforms. Certification by state and national archives is the next step, with Nevada joining states like Alaska and Georgia, which have piloted similar initiatives.
This development follows allegations of election misconduct during the 2020 presidential race. Although the 2023 indictments of six Republican certifiers were later dismissed, the state’s focus on bolstering election integrity highlights its commitment to avoiding future controversies.
As part of the partnership, Binance will also include USDC in its corporate treasury operations, highlighting its growing use in on-chain financial transactions. Circle, in return, will provide the necessary technology, liquidity, and tools to enhance USDC’s infrastructure, supporting its use in a range of financial services.
Both CEOs expressed optimism about the partnership’s potential. Richard Teng of Binance highlighted that it would create new opportunities for users to engage with USDC through more trading pairs and promotions. Jeremy Allaire of Circle emphasised the potential for USDC to become ubiquitous on Binance’s platform, strengthening its position in the global digital asset market.
The partnership comes amid the increasing adoption of stablecoins in the financial world, with more companies exploring their use as a payment method and a bridge into the crypto market. Stablecoins like USDC have become key drivers of crypto adoption, facilitating billions of transactions worldwide.
Microsoft shareholders have voted against a proposal to add Bitcoin to the company’s balance sheet during the firm’s annual meeting on 10 December. The resolution, presented by the National Center for Public Policy Research (NCPPR), suggested that diversifying into Bitcoin could offer significant value to shareholders by tapping into the growing cryptocurrency market.
The NCPPR argued that Bitcoin adoption would not only generate potential profits but also mitigate risks for Microsoft’s investors. The proposal recommended investing between 1% and 5% of the company’s profits into Bitcoin, citing the example of major investors like BlackRock, who offer Bitcoin ETFs. However, the company’s board dismissed the proposal, stating that it was unnecessary and that Microsoft already carefully considered its investments.
Microsoft’s board emphasised that Bitcoin’s volatility made it unsuitable for the company’s treasury, which requires stable and predictable investments. Despite the push from Bitcoin proponents like Michael Saylor, who argued that Bitcoin could add trillions to Microsoft’s market value, shareholders sided with the board’s recommendation, rejecting the resolution. The NCPPR has made a similar proposal to Amazon, which will be discussed at its 2025 meeting.
Kyrgyzstan’s Parliament has approved a draft law to establish the legal framework for the digital som, a central bank digital currency set to modernise the nation’s financial system. Overseen by the National Bank of Kyrgyzstan, the currency will undergo prototype testing in early 2025, with full implementation expected by January 2027.
The digital som will function as legal tender and be issued exclusively by the central bank through a secure, centralised platform. The system promises accessibility through features supporting online and offline transactions, enabling usage even in areas with limited connectivity. However, the feasibility of offline functionality remains a global concern for central banks.
Public discussions on constitutional changes to accommodate the digital currency began in August. Unlike many central bank initiatives, Kyrgyzstan’s model does not rely on blockchain but instead incorporates smart contracts whilst maintaining centralised oversight.
Argentina’s financial regulator has approved the entry of US crypto-related exchange-traded funds (ETFs) into its market, opening new investment opportunities for local traders. Under the CEDEAR programme, regulated by RG No. 1030, Bitcoin and Ethereum spot ETFs are now available for trading after a six-year prohibition under Law No. 27440. This move marks a significant step towards integrating digital assets into Argentina’s capital markets.
The Comisión Nacional de Valores (CNV) has also authorised ETFs tied to gold and the S&P 500 index, alongside Chinese stock market indexes. These offerings are part of broader efforts to diversify investment options and promote access to passive management indices, commodities, and digital assets. CNV President Roberto E. Silva highlighted the innovative nature of these approvals, aiming to attract more investors to the local market.
This development aligns with President Javier Milei’s strategy to counter hyperinflation and stimulate Argentina’s digital economy. With inflation dropping from nearly 300% in April 2024 to below 200%, the introduction of crypto ETFs signals a continued push towards modernising the financial system while embracing digital currency innovation.
Despite cryptocurrency’s volatility, 30% of workers surveyed say they would consider receiving their salaries in digital assets, according to a new study by Clarify Capital. The study, which questioned 800 workers and 200 business owners, revealed that 20% believe crypto will become a regular part of their paychecks within the next five years, with Bitcoin being the most popular choice. A significant 72% of respondents expressed a preference for receiving their wages or bonuses in Bitcoin.
Dogecoin and Litecoin also emerged as other leading choices, with 14% and 16% of surveyed employees respectively favouring these cryptocurrencies for compensation. Interestingly, Gen Z workers — those born between 1997 and 2012 — showed the most enthusiasm, with nearly 40% expressing interest in receiving their pay in crypto. Millennials followed with 32%, while just 23% of Gen X workers shared the same sentiment.
The study also highlighted the growing appeal of crypto within the business lending sphere. Around 25% of business owners indicated they would consider taking a crypto loan to expand their operations, with sectors such as IT, retail, and finance leading this trend. Among those surveyed, 10% of businesses plan to actively pursue crypto loans in 2025, with Gen Z and millennial business owners leading the charge.
