Russia has introduced a winter ban on cryptocurrency mining in three Siberian regions to prevent electricity shortages during the colder months. These areas, located near Lake Baikal, have become popular for mining due to their low-cost hydropower but face heightened demand for energy during harsh winters.
In territories of Ukraine that Russia claims to have annexed, crypto-mining is also restricted due to extensive damage to energy infrastructure since 2022, causing power shortages.
As a major global crypto-mining player, Russia recently introduced regulations and taxes on the industry, expecting annual revenues of $2 billion.
Italian lawmakers are challenging proposed tax hikes on cryptocurrency capital gains and an expansion of the country’s digital tax. The government’s plans, part of Prime Minister Giorgia Meloni’s 2024 budget, include raising cryptocurrency taxes from 26% to 42% and applying digital levies to smaller firms. However, coalition members are advocating for less drastic measures, calling for a reduced crypto tax of 28% and preserving revenue thresholds for the digital tax.
Italian Economy Minister Giancarlo Giorgetti has signaled openness to revising the cryptocurrency tax proposal, emphasising the need for a balanced approach. Meanwhile, Forza Italia, a co-ruling party, is pushing to keep Italy’s web tax focused on large tech companies like Meta, Google, and Amazon, arguing that expanding it to smaller businesses could harm local enterprises.
Italy introduced a 3% digital tax on major tech firms in 2019, but new proposals to eliminate revenue thresholds have sparked concerns of unfair burdens on small and medium-sized businesses. The debate reflects broader tensions over balancing revenue generation with economic fairness and international relations, particularly with the US, which has criticised the digital tax’s impact on American firms.
Paxos, a prominent blockchain infrastructure firm, has announced plans to acquire Finnish stablecoin issuer Membrane Finance, pending regulatory approval. The acquisition will grant Paxos a sought-after Finnish Electronic Money Institution licence, allowing the company to operate across 30 European countries under EU regulations.
Membrane Finance, known for its EUROe and eUSD stablecoins, launched its euro-pegged stablecoin in February 2023 but saw modest initial demand. Paxos, which already issues dollar-backed tokens like the Pax Dollar (USDP) and gold-backed cryptocurrency PAXG, had not yet ventured into the euro stablecoin market. This deal marks Paxos’ first step into offering euro-pegged digital assets.
The acquisition comes as the European stablecoin market faces tighter oversight under the Markets in Crypto-Assets (MiCA) Regulation, which took effect in July. Paxos sees this move as an opportunity to expand its reach and cater to growing stablecoin demand in Europe, further solidifying its global presence in the digital currency space.
Michael Saylor, the executive chairman of MicroStrategy, is set to deliver a compelling three-minute presentation to Microsoft’s board of directors advocating for a Bitcoin investment. This announcement followed his participation in VanEck’s X Spaces on 19 November, where he shared insights into the proposal. Saylor plans to encourage the board to allocate a portion of their substantial $78 billion cash reserves into Bitcoin.
Microsoft, one of the largest tech firms globally, has no current exposure to Bitcoin or other cryptocurrencies, despite its significant investments in companies like OpenAI. Saylor highlighted that only 1.5% of Microsoft’s stock value is linked to intangible assets, with most of it focused on quarterly earnings. The December’s voting items may include a decision influenced by Saylor’s presentation, potentially paving the way for a revolutionary shift in the company’s financial strategy.
The potential impact of Microsoft embracing Bitcoin could be monumental. Saylor noted the remarkable rise of MicroStrategy’s shares since adopting Bitcoin, with a 2,735% increase over five years. Institutional and corporate adoption of Bitcoin is accelerating, and Saylor believes Microsoft could set a transformative example by joining the trend.
Bitcoin has surged 5.8% in the past 24 hours, reaching a new all-time high (ATH) of $97,750. Its market cap now stands at $1.93 trillion, holding a dominant 57.9% share of the crypto market. Trading volume has also exceeded $85 billion, reflecting the strong bullish momentum.
A poll on Polymarket suggests Bitcoin has an 83% chance of hitting $100,000 before December, further fuelling optimism. This price surge has contributed to the global crypto market reaching an ATH of $3.33 trillion. Additionally, pro-crypto figures in the US government raise expectations of crypto-friendly regulations under a potential second term for Donald Trump.
CryptoQuant CEO Ki Young Ju likened this year’s momentum to the 2020 bull run, citing strong whale accumulation and significant over-the-counter deals as major factors. He also pointed to the Bitcoin halving in April, which reduced miner rewards and pushed prices higher to ensure miner profitability.
The recent launch of spot Bitcoin exchange-traded fund (ETF) options in the US has further boosted Bitcoin’s price, with BlackRock’s iShares Bitcoin Trust receiving approval from the SEC. The introduction of these ETFs is expected to increase demand, allowing investors to better manage risk while participating in the Bitcoin market.
PayPal has partnered with Xoom to enhance access to its stablecoin, PayPal USD (PYUSD), in Asia and Africa. Announced on 19 November, the collaboration aims to facilitate cross-border transactions even outside traditional banking hours. Xoom has teamed up with Cebuana Lhuillier and Yellow Card to manage PYUSD disbursements in these regions.
Launched in 2023, PYUSD is an Ethereum-compatible stablecoin backed 1:1 by US dollars and issued by Paxos Trust Company. It competes with other regulated stablecoins like USDC and is the only stablecoin integrated into PayPal’s payment system. PayPal has positioned PYUSD as a versatile digital currency for developers, wallets, and Web3 applications.
PayPal has been actively expanding PYUSD’s reach, including a recent launch on the Solana blockchain and partnerships with firms like MoonPay and Anchorage Digital. However, despite these efforts, PYUSD remains a smaller player in the market, lagging behind giants like USDT and USDC, which dominate the stablecoin sector with significantly larger market capitalisations.
The Reserve Bank of India (RBI) is taking a cautious approach to expanding its central bank digital currency (CBDC), the e-rupee, as officials prioritise understanding its long-term implications. Deputy Governor T. Rabi Sankar emphasised that while CBDCs could transform cross-border payments, trade settlements, and remittances, the risks and uncertainties surrounding the technology remain a concern.
Launched in December 2022, the e-rupee has seen limited adoption, with just 1 million retail transactions by mid-2024. This slow uptake has been partly supported by incentives, such as salary distributions in the digital currency. Despite this, the RBI has no fixed timeline for a broader rollout, preferring to assess the potential impact on the financial system before proceeding.
Deputy Governor Michael Debabrata Patra has raised additional concerns, warning that CBDCs could destabilise traditional banking. He suggested that during financial crises, digital currencies might be seen as “safe havens,” increasing the risk of bank withdrawals and possible “bank runs.” These uncertainties underscore why the RBI is maintaining its measured stance, ensuring that any expansion is informed and mitigates risks.
Bitcoin surged to a record high of over $94,000, driven by reports that Donald Trump’s social media company, Truth Social, is in talks to acquire cryptocurrency firm Bakkt. The news raised hopes of a more cryptocurrency-friendly approach under a Trump administration. Bitcoin’s price has more than doubled this year, with the latest trading at $92,104.
The potential acquisition, as reported by the Financial Times, is expected to be an all-stock deal between Trump Media and Bakkt, which is backed by the Intercontinental Exchange. This news, combined with the launch of options trading for Bitcoin ETFs on Nasdaq, has spurred further optimism.
Since the US election on 5 November, traders have been betting that President-elect Trump will foster a less restrictive regulatory environment for digital assets, leading to a renewed rally in Bitcoin. The global cryptocurrency market has now surpassed a $3 trillion valuation, according to CoinGecko.
Market analysts suggest there is strong buying momentum behind Bitcoin, with the potential for further gains as traders continue to seek out opportunities in the growing market.
Gold dropped to a one-month low of $2,543 on 14 November, following the release of the US Consumer Price Index report, which confirmed inflation at 2.6% for October. Despite a brief recovery to $2,623, the precious metal remains 2.6% lower over the past month. Meanwhile, Bitcoin soared to a record-breaking high of over $93,400, underscoring its growing appeal as a digital alternative to traditional inflation hedges like gold.
Experts suggest this trend could continue, as Bitcoin’s higher yield and appeal as a diversification tool attract investors. Maruf Yusupov, co-founder of the gold-backed stablecoin Deenar, noted that Bitcoin’s rising popularity may challenge gold’s long-standing dominance as an inflation hedge. The Federal Reserve’s hawkish policies and the strengthening US dollar are also likely to weigh on gold’s attractiveness.
Adding to the momentum, Republican Senator Cynthia Lummis recently proposed selling some of the US Federal Reserve’s 8,133 tonnes of gold reserves to invest in Bitcoin as a national reserve asset. The proposal reflects a shifting perspective among policymakers, signalling a potential long-term shift in investment strategies.
Donald Trump’s media company, Trump Media and Technology Group, is reportedly in advanced negotiations to acquire Bakkt, a crypto trading platform backed by the Intercontinental Exchange. According to sources cited by the Financial Times, the deal would be an all-stock acquisition.
News of the talks caused Bakkt’s shares to skyrocket by nearly 66% before trading was temporarily halted due to volatility. Neither Trump Media nor Bakkt has commented on the matter, while the Intercontinental Exchange declined to respond.
If finalised, the deal would deepen Trump’s ties to the cryptocurrency industry, which he has actively supported long before the US presidential election. In a related move, Trump recently launched a new crypto initiative called World Liberty Financial.
