Hong Kong is advancing its Stablecoins Bill as the government seeks to establish a clear regulatory framework for digital assets. The proposed legislation was published on 6 December and entered the Legislative Council for its first reading on 18 December. Before becoming law, the bill requires three readings and approval from the region’s chief executive.
The bill outlines key regulations, including mandatory licensing for stablecoin issuers through the Hong Kong Monetary Authority. Issuers must meet strict requirements, such as maintaining stable reserves and mechanisms to ensure the value of their coins. Only regulated entities will be authorised to market or offer stablecoins to the public, with robust consumer protections included.
If enacted, this legislation could reshape the stablecoin market in Hong Kong, potentially mirroring Europe’s experience under MiCA regulations. In Europe, compliance-driven issuers have thrived while others exited the market, paving the way for a more regulated digital asset landscape.
Japan’s Prime Minister Shigeru Ishiba stated that his government lacks sufficient information about Bitcoin reserve strategies being considered by the US and other nations. The remarks followed questions in the House of Councilors about whether Japan should explore adding Bitcoin to its foreign exchange reserves, a proposal supported by Councilor Satoshi Hamada. However, Ishiba clarified that crypto assets like Bitcoin do not fall under Japan’s foreign exchange framework.
The debate comes amid global discussions on Bitcoin’s role in national reserves. In Brazil, a recent bill seeks to establish a sovereign Bitcoin reserve, while in the US, speculation has emerged about potential executive action to adopt Bitcoin as a reserve asset. These developments have reignited interest in digital assets as part of national financial strategies.
Meanwhile, Japan continues to show promise in the stablecoin market. Ripple CEO Brad Garlinghouse highlighted the growing interest in a yen-based stablecoin and praised Japan’s proactive approach to cryptocurrency regulation. Despite being considered a conservative market, Japan’s regulatory clarity positions it as a leader in the digital asset space.
Russia’s central bank has announced plans to develop a new platform to curb illegal financial activities, including unregulated crypto-to-fiat over-the-counter services. Collaborating with Rosfinmonitoring and financial institutions, the initiative aims to track and block suspicious transactions while preventing misuse of banking systems.
The system focuses on individuals known as ‘droppers,’ who exploit bank accounts for illicit purposes such as money laundering, drug trade, and unregulated cryptocurrency exchanges. Currently, monitoring is limited to individual banks, making it challenging to prevent offenders from opening accounts elsewhere. A centralised database is expected to improve information sharing across all financial institutions.
The Bank of Russia has stressed the need for a solution that enforces regulations without causing unnecessary harm to law-abiding citizens. While the project is still in development, no official timeline for its launch has been provided.
South Korea has seen a significant rise in cryptocurrency holders, with over 610,000 new users recorded in November. According to data shared by Yonhap News, the country now has 15.6 million crypto investors, representing more than 30% of the population. The data, sourced from major exchanges like Upbit and Bithumb, highlights the growing influence of digital assets in South Korea’s financial landscape.
The surge coincided with Donald Trump’s win in the US presidential election on 5 November. Many in the global crypto community believe Trump’s victory could signal a shift towards more favourable regulations for digital currencies, a sentiment that has resonated strongly in South Korea.
Additionally, the introduction of the Virtual Asset User Protection Act by South Korea’s Financial Services Commission has enhanced investor confidence. Under the new regulations, crypto exchanges must prioritise the security of users’ assets. This is the first time such comprehensive statistical data on crypto ownership has been released, further underscoring the sector’s rapid growth.
With South Koreans holding $70.3 billion in crypto assets and transaction volumes nearing those of the local stock market, the country’s crypto boom shows no signs of slowing.
Argentine authorities have seized a crypto wallet containing $3.5 million in Tether’s USDT as part of a sweeping investigation into the Rainbowex Ponzi scheme. The crackdown has also led to the freezing of additional cryptocurrency wallets and bank accounts linked to those accused of orchestrating the fraud.
The investigation has benefited from collaboration with Lemon, a major digital asset exchange in Argentina, along with blockchain forensics experts from Chainalysis and Qlue. Their technical expertise enabled authorities to track the flow of funds and uncover the scale of the alleged scheme.
Rainbowex lured investors with promises of extraordinary daily returns, amounting to an annual rate of nearly 3,500%. Authorities estimate that tens of thousands of San Pedro, Buenos Aires residents were affected. The operation has already resulted in over 15 raids, with four arrests made, while efforts to apprehend additional suspects, including individuals in Malaysia, continue with Interpol’s support.
Greek authorities have made their first-ever cryptocurrency seizure, confiscating 273,000 USDT (Tether) as part of a criminal investigation. The operation, conducted in December, was carried out under the supervision of the Greek European Public Prosecutor’s Office and involved collaboration with various law enforcement departments, including the Digital Evidence Examination Department.
The seizure, which is part of the ongoing ‘Admiral’ operation, highlights the growing challenges law enforcement faces in dealing with advanced technologies like blockchain and cryptocurrencies. Cryptocurrencies, known for their anonymity and security features, are often used in criminal activities such as fraud and money laundering. Experts stress the need for precision and expertise in handling digital assets, as mistakes can lead to irreversible losses.
Crypto-related scams are becoming more common in Greece, with many victims falling prey to fraudulent schemes. As cryptocurrencies gain popularity, particularly with the rise of Bitcoin and NFTs, the lack of understanding among the public increases the risk of scams. Experts warn that technological advances in AI are making these scams harder to detect, even for experienced investors.
In addition to combating fraud, authorities are also focusing on the management of seized cryptocurrencies, with plans to convert them into funds for the state, similar to practices in other European countries.
Russia has announced a six-year ban on cryptocurrency mining across 10 regions, beginning January 2025. This move, approved by the government, aims to address energy concerns and follows new laws on crypto mining signed earlier this year. The ban, effective until March 2031, applies to individual miners and mining pools in territories such as Dagestan, Chechnya, and the Donetsk and Lugansk People’s Republics.
Additionally, seasonal restrictions will be imposed in key Siberian regions like Irkutsk, Buryatia, and Zabaikalsky. These limits aim to prevent winter energy shortages, initially running from January to mid-March in 2025, with longer periods planned for future years.
The decision reflects a shift in strategy, as earlier proposals considered bans in 13 regions, including Irkutsk, a hub for major mining firms like BitRiver. While the Irkutsk region has been spared a blanket ban, the restrictions may still impact operations reliant on its low-cost energy. Industry stakeholders have yet to comment on the implications of these measures.
Despite curbs in specific areas, Russia continues to refine its approach to cryptocurrency regulation, balancing the sector’s economic potential with energy stability.
A crafty new scam is ensnaring would-be crypto thieves by baiting them with fake wallet seed phrases. Cybersecurity experts at Kaspersky have revealed how scammers post these phrases in YouTube comments, claiming the wallets hold significant funds. The wallets, however, are traps designed to exploit anyone attempting to steal the assets.
One wallet discovered by Kaspersky analyst Mikhail Sytnik reportedly held $8,000 in USDT on the Tron network. A thief must send Tron (TRX) tokens to move the funds to cover transaction fees. Unbeknownst to them, the wallet is a multi-signature account, meaning the TRX sent for fees is instantly redirected to another wallet controlled by the scammers.
Sytnik described the scammers as “digital Robin Hoods” for targeting other opportunists. He advised people never to try accessing others’ wallets, even if given a seed phrase, and to remain cautious of strangers’ claims about cryptocurrency online.
This isn’t the first time fraudsters have exploited greed in the crypto space. In July, Kaspersky exposed a similar scam on Telegram, where users were tricked into downloading malware disguised as legitimate crypto tools, potentially compromising their devices and funds.
The United States Internal Revenue Service (IRS) has reaffirmed that cryptocurrency staking rewards are taxable as income upon receipt, opposing a lawsuit that argues they should only be taxed when sold. According to its 2023 guidance, the IRS considers block rewards as income based on their market value at the time they become usable.
The ongoing dispute involves Joshua and Jessica Jarrett, who earned 8,876 Tezos (XTZ) tokens in 2019 through staking. The couple believe such rewards should be treated as property, similar to crops or manuscripts, and taxed only when sold. They filed their first lawsuit in 2021, which was dismissed after they declined a $4,000 refund offered by the IRS.
In October 2024, the Jarretts launched a second lawsuit seeking a $12,179 refund for taxes paid on staking rewards in 2020. They argue the IRS’ policy unfairly treats new property as taxable income and are calling for a permanent change to the agency’s tax stance.
The outcome of this legal battle could establish a crucial precedent for how staking rewards are taxed in the US, potentially impacting the entire cryptocurrency industry.
El Salvador is celebrating Christmas 2024 with a Bitcoin-themed tree, showcasing its unwavering commitment to the cryptocurrency despite facing restrictions from the International Monetary Fund (IMF). On 19 December, the country added 11 BTC, valued at over $1 million, to its reserves, a move that highlights its bold strategy of embracing Bitcoin as a key part of its financial future.
Despite the IMF’s criticism and a $1.4 billion loan agreement signed the previous week, which includes terms limiting cryptocurrency transactions and the use of state-backed wallets, El Salvador has maintained its position. The IMF’s loan conditions also prevent companies from being required to accept Bitcoin and mandate taxes to be paid in US dollars.
However, the government has remained steadfast, with the National Bitcoin Office reaffirming that no Bitcoin from the country’s reserves will be sold. El Salvador’s total BTC holdings now amount to nearly 6,000 coins, valued at approximately $572 million. The country’s long-term strategy remains focused on Bitcoin as a means of achieving financial independence and reducing reliance on traditional global financial institutions.
Despite facing global scepticism, El Salvador’s Bitcoin strategy continues to evolve, with recent portfolio statistics showing steady long-term growth. The festive Bitcoin tree is a symbol of the nation’s enduring dedication to cryptocurrencies, which could play a significant role in its financial future.
