The New York Department of Financial Services (NYDFS) has unveiled a Transatlantic Regulatory Exchange programme, fostering collaboration with the Bank of England to advance oversight of digital assets and emerging payment systems. This initiative will facilitate a six-month staff exchange starting February, aiming to enhance regulatory alignment and share expertise.
NYDFS Superintendent Adrienne Harris, who has led the regulator since 2022, emphasised the importance of the programme for global harmonisation in digital asset regulation. The department, renowned for its 2015 BitLicense scheme, views this partnership as a step towards strengthening crypto oversight.
The UK and US differ significantly in their approaches to digital currencies. The Bank of England continues exploring a central bank digital currency, while the US administration resists a government-backed digital dollar. With such exchanges, both regulators hope to gain deeper insights into navigating the challenges of the crypto landscape.
MicroStrategy Inc. has bolstered its position as a Bitcoin powerhouse, purchasing $243 million worth of the cryptocurrency in its 10th consecutive weekly acquisition. The company, based in Virginia, now controls over 2% of Bitcoin’s finite supply, continuing a strategy initiated by co-founder and Chairman Michael Saylor in 2020.
The firm acquired 2,530 Bitcoin between 6 and 12 January at an average price of $95,972 per token, according to a regulatory filing. With plans to raise $42 billion in capital by 2027 through stock sales and debt offerings, MicroStrategy intends to invest heavily in Bitcoin. It has already reached two-thirds of its equity-raising goals in just a few months and could potentially purchase an additional $6.5 billion in Bitcoin.
MicroStrategy’s shares have risen 13% this year, closing at $327.91 last week, while Bitcoin itself has experienced a slight dip, losing 3% in value after a 120% surge in 2024. The firm’s approach has drawn attention from hedge funds employing convertible arbitrage strategies, betting on the volatility of MicroStrategy’s stock as the company advances plans to expand its equity offerings.
Russia’s crypto mining industry is experiencing unprecedented growth, with demand for industrial equipment tripling in the last quarter of 2024 compared to the previous year. The boom follows new laws introduced by President Vladimir Putin, effective November 2024, permitting businesses and entrepreneurs to mine crypto after registering in the national miners’ registry. Individual miners using under 6,000 kWh of energy monthly are exempt from registration, ensuring flexibility for smaller operations.
Experts highlight that these regulatory changes have made mining more credible and economically viable, attracting both large-scale operators and individual investors. However, rapid growth has prompted the government to draft restrictions, including a proposed mining ban in energy-stressed regions such as Dagestan and Chechnya, starting in January 2025. These measures aim to manage electricity shortages and price disparities in subsidised areas.
Additionally, Russia introduced a 15% tax on Bitcoin mining profits in November 2024, marking the sector as a regulated economic contributor. Despite these challenges, industry leaders suggest mining remains a solid diversification strategy, recommending investors allocate up to 5% of their portfolios to this burgeoning field.
Kenya is taking decisive steps to regulate cryptocurrencies as the government shifts its stance from cautious warnings to a more structured approach. Treasury Cabinet Secretary John Mbadi has confirmed plans to introduce a legal and regulatory framework aimed at fostering a fair and stable crypto market. This move is outlined in the ‘National Policy on Virtual Assets and Virtual Asset Service Providers,’ a draft proposal open for public feedback until 24 January.
The policy proposes comprehensive regulations for virtual assets, addressing key concerns such as money laundering, terrorism financing, and consumer protection. It aims to establish clear standards and procedures to govern virtual asset service providers, setting Kenya on a path similar to other African nations like South Africa and Nigeria, which have embraced crypto regulation.
Kenya’s cautious journey with cryptocurrencies dates back to a 2015 warning by the Central Bank of Kenya (CBK), highlighting risks like fraud and lack of legal safeguards. However, a significant shift occurred in September 2023 when the country completed an assessment of money laundering risks tied to virtual assets. With stablecoins accounting for nearly half of the region’s transaction volume, Kenya’s proactive regulatory approach could solidify its role as a leader in sub-Saharan Africa’s crypto adoption landscape.
Litecoin’s X social media account fell victim to hackers on 11 January, briefly promoting a fake Litecoin token on the Solana network. The fraudulent post included a contract address and scam link but was deleted after Litecoin regained control of the account. According to the Litecoin team, the breach occurred due to a compromised delegated account, which has since been removed.
This incident highlights a troubling trend of account hacks on X, with scammers exploiting high-profile accounts to promote fake tokens and phishing links. Victims in recent months include EigenLayer, Wiz Khalifa, the Cardano Foundation, and Yat Siu, co-founder of Animoca Brands. Each hack involved fraudulent campaigns, some generating significant trading volumes before being uncovered.
As scams on social media platforms rise, users are urged to exercise caution and verify information before engaging with any token promotions.
OpenSea users are facing increased risks after over 7 million email addresses were exposed in a data breach dating back to 2022. The breach occurred when an employee of Customer.io, OpenSea’s email delivery partner, mishandled user data, sharing email addresses with an unauthorised third party. This data includes the emails of major figures in the crypto world, raising concerns about potential phishing attacks and scams.
Blockchain security expert 23pds highlighted the growing threat, warning that the leaked information had been circulated multiple times before becoming public. OpenSea had previously alerted users about phishing risks following the breach, advising them to be cautious with email links and attachments.
Phishing scams targeting OpenSea users have been a persistent issue, with attackers using fake websites and fraudulent email campaigns to exploit vulnerabilities. One such scam in January 2024 promised exclusive access to an NFT event, only to direct victims to a malicious site designed to steal funds and wallet information.
Experts continue to advise users to stay vigilant, verify email sources, enable two-factor authentication, and never share sensitive wallet details to protect themselves from ongoing phishing threats.
Indian cryptocurrency exchange Mudrex has temporarily suspended crypto withdrawals, prompting a backlash from its users. The move, announced on 11 January is set to last until 28 January as the platform undergoes a compliance framework upgrade. According to co-founder and CEO Edul Patel, the suspension is necessary to prevent misuse by bad actors, with Patel emphasising the importance of a secure infrastructure in the crypto space.
Mudrex, one of the few Indian exchanges to allow crypto withdrawals, has faced criticism from the community. Trader Vivan Live urged users to withdraw their funds immediately, suggesting the platform’s motives were dubious. Another user, Aakash Athawasya, claimed that Mudrex never truly offered crypto withdrawals, accusing the platform of offering “price exposure” instead of ownership. Despite the criticism, Mudrex reported a significant surge in its user base and trading volume in recent months.
Meanwhile, India’s regulatory environment continues to impact exchanges, with Bybit announcing a temporary suspension of its services in the country due to evolving regulations. On a more positive note, CoinDCX, another Indian exchange, has launched crypto withdrawals, allowing users to withdraw crypto in exchange for disabling Indian rupee deposits.
Despite circulating rumours, the US government has made no moves to sell its massive Bitcoin holdings seized from the Silk Road and other cases. Blockchain intelligence firm Arkham verified that approximately $6.44 billion in Bitcoin remains under government control, dispelling reports of a Department of Justice-sanctioned liquidation.
The speculation followed claims that 69,370 BTC had been cleared for sale by federal authorities, reportedly backed by a late December court ruling. However, with President Trump’s inauguration nearing, the administration’s approach to these assets remains unclear. Trump has proposed a national Bitcoin reserve, a plan supported by Senator Cynthia Lummis and tabled in Congress.
Crypto advocates are urging Trump to prioritise Bitcoin in his early days in office, with states like Texas and Ohio already considering legislation to advance BTC adoption. As Biden’s administration enters its final days, whether the US will act on its Bitcoin stockpile remains uncertain.
Authorities in Thailand have confiscated 996 Bitcoin mining rigs in Chon Buri province, accusing operators of illegally tapping into the power grid. The raid, conducted on 8 January in the Phanat Nikhom district, targeted JIT Co., a digital asset trading firm that allegedly tampered with power meters to avoid electricity charges. Losses to local providers are estimated in the hundreds of millions of baht.
Despite solar panels being present on the site, investigators revealed they were not connected to the equipment, which relies on immense computing power to mine Bitcoin. Thai officials highlighted the heavy energy demands of mining, which can cost hundreds of thousands of baht per Bitcoin, compared to the typical household electricity bill of 750 baht.
The case underscores the growing global challenge of managing crypto mining’s resource demands. Thai regulators reiterated the need to safeguard public utilities as they continue investigating the scheme and identifying additional parties involved.
Bitcoin’s price took a sharp tumble below $95,000 on 8 January, reversing gains from earlier in the week when it briefly surpassed $100,000. The sell-off was largely driven by short-term holders (STHs), who moved over 26,000 BTC worth more than $2.4 billion to exchanges, often at a loss.
According to analysis from Alphractal, STHs have shown a growing tendency to liquidate their holdings rather than accumulate, a trend evident since early December. This shift has weakened demand and amplified Bitcoin’s price volatility in recent weeks.
The data highlights how short-term investor behaviour continues to play a pivotal role in shaping Bitcoin’s market trends, as their decisions ripple across the broader cryptocurrency landscape.
