Japan’s top financial regulator, the Financial Services Agency (FSA), has announced plans to redefine cryptocurrency assets like Bitcoin as ‘financial assets‘ in its tax reform proposals for fiscal year 2025. It would shift crypto from its current classification as “payment instruments” to something more in line with traditional investments. The change aims to give cryptoassets more legitimacy and could encourage greater public investment.
While the FSA did not directly call for tax reform, it suggested the possibility of revising Japan’s controversial crypto tax rules. It follows similar calls from the ruling Liberal Democratic Party (LDP), which has advocated for regulations that offer investor protection comparable to those for stocks. The LDP also wants to move away from the current crypto tax system, which subjects traders to high income tax rates, in favour of a capital gains tax.
Despite some differences in approach, such as the FSA favouring a broader income tax integration, both the FSA and LDP agree on the need to update the legal classification of crypto. The shift comes at a time when companies in Japan are increasing their investments in Bitcoin, signalling growing interest in the evolving regulatory landscape.
A power provider in Siberia’s Irkutsk region has been caught illegally leasing land to crypto miners, with the plot originally designated for public utilities. The Irkutsk Region Prosecutor-General’s Office announced that the unnamed power company had facilitated the establishment of a crypto mining farm, leading to a fine of 330 thousand rubles (approximately $3,120) and an ongoing administrative case against the firm.
This case highlights the ongoing issue of illegal crypto mining in Russia, particularly in Siberia, where miners are drawn to cheap electricity and low temperatures that reduce cooling costs. However, the increased demand for power has led to grid instability and power outages in the region, prompting Moscow to implement temporary mining bans in some areas. Despite these measures, illegal mining continues to thrive, especially in Irkutsk.
Other parts of Russia, like Tyumen and the Komi Republic, are emerging as alternative hotspots for crypto mining, with new facilities being developed to attract miners. In addition to these developments, Russia’s largest industrial mining firm, BitRiver, is building a new 100MW data centre in Buryatia, set to become the largest in the Far Eastern Federal District. These moves reflect the growing demand for crypto mining infrastructure across the country, despite the regulatory challenges.
KULR Technology, a US-based firm specialising in thermal management solutions, has boldly invested $21 million in Bitcoin. The purchase marks the beginning of its strategy to allocate 90% of its surplus cash to the leading cryptocurrency. The company acquired 217.18 BTC at an average price of $96,556.53 per coin.
The decision aligns with KULR’s belief in Bitcoin’s growing adoption and potential to enhance its financial standing. CEO Michael Mo stated that the investment would support the company’s growth and strengthen its balance sheet. KULR utilised Coinbase’s Prime platform for custody and wallet services to ensure the secure handling of its digital assets.
KULR joins a wave of companies embracing Bitcoin as part of their financial strategies. Firms like Genius Group and MicroStrategy have also increased their holdings, viewing Bitcoin as a hedge against inflation and a tool for innovation. This trend highlights the cryptocurrency’s rising role in corporate treasury management.
Strive, the asset management firm founded by Vivek Ramaswamy has filed a request with US regulators to list an ETF focusing on Bitcoin bonds. The proposed fund, called the Strive Bitcoin Bond ETF, will invest in convertible bonds from companies like MicroStrategy and others that allocate significant resources to Bitcoin purchases.
MicroStrategy, a pioneer in corporate Bitcoin investment, has used convertible bonds to fund its $27 billion Bitcoin holdings since 2020. These bonds, paying little to no interest, can convert into company shares under specific conditions. Strive’s ETF aims to offer exposure to similar instruments and will actively manage investments, potentially using financial derivatives like swaps and options.
The filing comes amid a surge in interest in crypto-focused ETFs, with corporate treasuries holding over $56 billion worth of Bitcoin. Analysts predict that Trump’s recent presidential win and his pro-crypto regulatory plans could pave the way for wider adoption of crypto ETFs in the financial market.
Indian tax authorities have uncovered a complex money laundering scheme involving hawala networks and cryptocurrency transactions in Jaipur. The investigation, triggered by raids on local wedding planners, led to the seizure of $2 million (₹20 crores) in cash and jewellery. Officials also recovered three crypto wallets linked to the operation, including one tied to a major global exchange.
The scheme involved clients making unreported cash payments exchanged for cryptocurrencies like Bitcoin and Tether through hawala operators in Gujarat and Rajasthan. Hawala, an illegal payment system, allows funds to be transferred abroad without moving money physically. Authorities believe the perpetrators exploited crypto exchanges with weak KYC policies or intermediaries to launder funds.
Records of these activities, including WhatsApp messages, emails, and spreadsheets, reveal the network extends beyond Jaipur to cities like Mumbai, Hyderabad, and Delhi. The operation also implicated resorts, hotels, and event service providers who accepted cash or bank payments. The tax department plans further raids across India to tackle tax evasion in the wedding and events industry.
Ukraine is preparing to block Russia’s use of Bitcoin and other cryptocurrencies in international trade. The announcement follows comments from Russian Finance Minister Anton Siluanov, who confirmed that Russian companies use crypto to bypass Western sanctions.
Vladyslav Vlasiuk, an advisor to Ukraine’s president, stated that Ukraine had warned its international partners of Russia’s crypto strategy earlier this year. Measures, including sanctions and other solutions, are now in development to prevent unwanted crypto payments. Ukraine remains committed to limiting Russia’s ability to evade sanctions through digital currencies.
Russia has sought alternatives to traditional payment systems as sanctions disrupt its trade with countries like China. Some Russian companies have reportedly used stablecoins for transactions with Chinese partners. This follows the Kremlin’s recent legal framework allowing Bitcoin miners to use crypto for international trade, signalling an intensified reliance on digital assets to navigate economic restrictions.
MicroStrategy Inc., the business intelligence firm and the largest corporate holder of Bitcoin has emerged as the top-performing cryptocurrency stock of 2024. The company’s stock surged by an impressive 402%, driving its market cap to $83 billion. The rise aligns with MicroStrategy’s ongoing strategy of acquiring more Bitcoin throughout the year, with the firm now holding approximately 444,262 BTC, valued at over $45 billion at current prices. The rally in Bitcoin’s price, which soared by 120% in 2024, contributed significantly to the company’s impressive performance, bolstered by factors like the approval of a spot Bitcoin ETF and geopolitical support for the digital asset.
Alongside MicroStrategy, other crypto-linked stocks also saw significant gains, with Core Scientific rising 307%, Terawulf gaining 142%, and Bitdeer Technologies increasing by 122%. These firms benefitted from strong market conditions and strategic moves such as AI partnerships and mining expansions. However, MicroStrategy remains the standout performer, driven by its growing Bitcoin holdings.
Looking ahead, MicroStrategy is set to hold a shareholder meeting in early 2025, where it will present key proposals to increase the number of authorized shares. These proposals are part of the company’s broader plans to raise $42 billion through equity and fixed-income instruments, further cementing its position as a major Bitcoin treasury holder. Chairman Michael Saylor sees these measures as essential for the company’s continued growth and expansion in the crypto space.
Elder fraud scams are becoming increasingly sophisticated, as illustrated by a recent case where an 82-year-old woman lost her life savings to criminals posing as the FBI. After depleting her accounts, the scammers coerced her into withdrawing funds via a Bitcoin machine and kept her isolated in a hotel under the guise of ‘protection.’ Despite her family’s intervention, the scammers struck again, convincing her to hand over $20,000 by exploiting false hopes of recovering a promised reward.
Elderly individuals are prime targets for such schemes, often due to their savings, trust in others, and unfamiliarity with modern technology. Fraudsters employ tactics like intimidation, urgency, and psychological manipulation to exploit their victims. According to recent statistics, seniors lose billions annually to scams, with the emotional toll leaving many feeling ashamed and fearful.
To combat these threats, experts recommend verifying unsolicited requests, limiting personal information sharing, using strong security measures, and reporting suspicious activity. Education and vigilance are key to protecting vulnerable individuals and ensuring scammers are outsmarted.
Turkey has unveiled plans for stringent cryptocurrency regulations set to take effect in February 2025. These measures aim to align Turkey’s anti-money laundering frameworks with global standards, inspired by the European Union’s MiCA framework. Crypto service providers will be required to verify the identities of users making transactions exceeding 15,000 Turkish lira (£425), with unregistered wallets also subject to strict checks.
The new rules place significant compliance burdens on crypto firms, including mandatory licensing from the Capital Markets Board and ongoing oversight by the Financial Crimes Investigation Board. Turkey’s Scientific and Technological Research Council (TÜBİTAK) will also audit the technological systems of these firms. While the regulations aim to enhance consumer protection and combat financial crimes, critics warn they could discourage smaller startups and limit innovation.
Turkey, ranked eleventh globally for crypto adoption, continues to attract international attention as these regulations shape its evolving crypto landscape. Despite limitations on crypto payments, the proposed rules may open doors for larger, established firms to expand in the Turkish market.
Russia is advancing its use of digital financial assets (DFAs), including Bitcoin, to facilitate foreign trade. Finance Minister Anton Siluanov revealed in a recent interview that these transactions are part of an experimental legal framework that began in September 2024. The initiative is seen as a step towards modernising global trade settlements and reducing reliance on the US dollar.
Siluanov highlighted that Russia’s ability to mine Bitcoin domestically supports this effort. “We can pay for goods with digital financial assets, including Bitcoin we mine here,” he said, adding that such practices will be further developed in the coming year. The shift aligns with Russia’s 2021 law recognising DFAs, although their use as domestic payment methods remains prohibited.
While embracing Bitcoin for trade, Siluanov has cautioned against investing in cryptocurrencies, citing their volatility. Despite Bitcoin reaching record highs recently, he advised against viewing it as a secure investment, pointing to safer alternatives. Russia’s push towards DFAs marks a significant shift in its economic strategy, aiming for resilience and innovation in global markets.
