Cryptocurrencies

Singapore gains edge over Hong Kong in crypto licensing

Singapore has solidified its position as a leading hub for the cryptocurrency industry, granting 13 new licences in 2024, double the number issued the previous year. Major firms like OKX, Upbit, Anchorage, and BitGo have benefited from the city-state’s supportive regulatory environment, which encourages innovation and tokenisation projects.

Meanwhile, Hong Kong’s slower approach has hampered its competitiveness. Though the city has fully licensed seven platforms, including four in December, restrictive policies on asset custody and token listings have deterred some firms. Notable exchanges like OKX and Bybit have withdrawn their applications without explanation, highlighting the challenges posed by the region’s cautious framework.

Analysts point to China’s influence as a limiting factor for Hong Kong’s crypto ambitions. With crypto trading banned in mainland China, Hong Kong faces a unique risk profile. By contrast, Singapore’s forward-thinking regulations and welcoming environment have made it a preferred choice for firms seeking a secure, long-term base in Asia.

The Philippine SEC proposes new crypto regulations

The Philippine Securities and Exchange Commission (SEC) has unveiled a draft of its ‘SEC Rules on Crypto-Assets Service Providers’ to regulate the country’s booming crypto market. The new proposal aims to establish clear guidelines for service providers involved in activities like trading, custody, and public offerings of crypto-assets, which are defined as digital representations of value using distributed ledger technology.

As the Philippines continues to attract a growing number of cryptocurrency users, especially among its tech-savvy population, the SEC’s rules focus on mitigating risks like fraud and market manipulation while promoting innovation. Under the draft rules, service providers must register with the SEC and comply with the standards outlined in the Financial Products and Services Consumer Protection Act. They will also face strict capital requirements and must submit detailed disclosure documents before marketing crypto-assets to the public.

The proposal also places heavy emphasis on cybersecurity and anti-money laundering measures. Service providers will need to align their systems with the National Cybersecurity Plan and undergo regular audits. Additionally, practices to prevent insider trading and market manipulation will be closely monitored.

The public has until 18 January 2025, to provide feedback on the draft rules, marking an important step in shaping the future of the crypto industry in the Philippines.

Crypto industry pushes Trump for quick policy overhaul

As President-elect Donald Trump prepares to take office, the cryptocurrency industry is urging him to swiftly implement his promised overhaul of crypto policies through executive orders. Industry officials are pushing for measures such as creating a bitcoin stockpile, ensuring crypto firms have access to banking services, and establishing a crypto advisory council. They hope these actions will come within the first 100 days of Trump’s presidency, with some anticipating an order on his first day in office, January 20.

During his campaign, Trump positioned himself as a “crypto president” and promised to support the industry’s growth. In contrast to the regulatory crackdowns under President Joe Biden, which focused on concerns about crime and volatility in the sector, Trump’s team is aiming to reverse course, encouraging innovation and positioning the US as a global leader in cryptocurrency. His crypto policy team, including crypto-friendly figures like Securities and Exchange Commission chair Paul Atkins and White House crypto czar David Sacks, is already taking shape.

One of the most discussed proposals is the creation of a strategic Bitcoin reserve, a plan Trump first mentioned in July. Some in the industry, like the Bitcoin Policy Institute, have even drafted potential executive orders for this purpose, suggesting the Treasury Secretary could spend $21 billion over a year to amass the reserve. However, analysts are divided on whether this can be achieved via executive orders or will require congressional action.

Trump is also expected to address the ongoing challenges that crypto firms face in accessing banking services, as many institutions avoid working with them due to regulatory concerns. While an executive order could signal a shift in policy, some executives caution that it may not have the legal force to immediately change regulations, as federal banking authorities are independent.

Trump appoints Stephan Miran to lead economic council

President-elect Donald Trump has named Stephan Miran, a former Treasury official and economist, as Chair of the Council of Economic Advisors (CEA). Known for his pro-crypto stance, Miran has advocated for reforming US crypto regulations to foster innovation. He has also been a vocal critic of Federal Reserve Chair Jerome Powell’s policies.

Trump’s recent appointments signal a strong commitment to his pledge of making the US the “crypto capital of the planet.” Paul Atkins, a former SEC Commissioner under George W. Bush, will lead the Securities and Exchange Commission, further reinforcing the administration’s pro-crypto agenda.

Additionally, Trump appointed Bo Hines as Executive Director of the Presidential Council of Advisers for Digital Assets. Hines will work closely with David Sacks, the incoming ‘Crypto Czar,’ to implement strategies aimed at advancing the US as a global crypto leader. Despite lacking a history in crypto advocacy, Hines is set to play a key role in shaping the administration’s digital asset policies.

Changpeng Zhao claims UAE holds $40 billion in Bitcoin

Binance founder Changpeng Zhao has stirred a debate about cryptocurrency adoption in the UAE by claiming the nation holds $40 billion in Bitcoin. This figure, shared in a tweet, quickly captured the attention of industry professionals, including crypto lawyer Irina Heaver, who questioned the claim’s validity, suggesting it may be AI-generated content lacking credible evidence. Zhao acknowledged the uncertainty but suggested the number could be plausible, given the region’s wealth and the growing number of high-net-worth individuals.

The conversation also highlighted the UAE’s expanding cryptocurrency ecosystem, especially in Dubai. Zhao reflected on the city’s rapid transformation from hosting only a few crypto firms in 2021 to now becoming a hub for thousands of blockchain-based businesses. Dubai’s favourable regulatory frameworks, such as the Dubai Multi Commodities Center’s Crypto Center, have been key in attracting global crypto companies.

While the exact value of the UAE’s Bitcoin holdings remains unverified, the ongoing debate underscores the country’s increasing prominence in the cryptocurrency space.

Tether unveils plans for AI platform launch in 2025

Tether, the company behind the $140 billion cryptocurrency USDT, is making strides in artificial intelligence with plans to launch its own AI platform by the end of March 2025. CEO Paolo Ardoino confirmed the timeline in a recent post, marking a significant step in Tether’s ongoing diversification.

Under Ardoino’s leadership, Tether has broadened its focus, venturing into energy, payments, telecommunications, AI, and commodities trade financing. The company restructured its corporate operations earlier this year to support this shift, further reflecting its ambitions beyond the stablecoin market.

Last year’s acquisition of a stake in AI and cloud computing firm Northern Data hinted at Tether’s expanding interests in the AI sector. While details about the upcoming platform remain scarce, Ardoino emphasised Tether’s commitment to building technology that promotes freedom, independence, and resilience.

Spacecoin sets sights on blockchain networks in space

Spacecoin XYZ has made history with the launch of its first satellite, marking a groundbreaking step towards securing blockchain networks in outer space. The satellite, which was launched aboard SpaceX’s Falcon Heavy on 21 December, represents the first milestone in establishing the ‘Spacecoin layer‘ in Earth’s orbit, according to co-founder Daniel Bar.

Equipped with ‘crypto engines’ and powered by solar panels, the satellite forms the foundation of a larger constellation planned for 2025. This fleet of seven to ten satellites will enable the activation of the Spacecoin mainnet, a project designed to offer unparalleled levels of security and resilience for blockchain networks.

Spacecoin’s ambitions extend far beyond securing blockchains, as outlined in its Blue Paper. The company envisions a decentralised infrastructure network featuring a space-based layer-1, the Celestial Chain, and a terrestrial layer-2, the Uncelestial Network. Adviser Dahlia Malkhi highlighted the untamperable nature of the satellite’s hardware, describing it as a trusted platform for an immutable history that could surpass human lifetimes.

Botswana’s central bank calls for crypto regulations

Botswana’s central bank has stated that while the country’s local crypto markets are still underdeveloped, they pose minimal risks to financial stability. However, the bank cautioned that as crypto becomes more interconnected with the broader financial system, it may present future systemic risks. The bank emphasised the need for regulatory frameworks to address potential risks as the sector evolves.

While the risks from crypto assets are currently low, the Bank of Botswana acknowledged ongoing concerns about misconduct in the sector. To safeguard the financial system, regulators must develop oversight mechanisms to prepare for future growth in digital assets.

The central bank also flagged digital payment instruments as a significant security risk, particularly in relation to money laundering and terrorist financing. The anonymity offered by these platforms increases the potential for illicit financial activities, prompting the need for enhanced market surveillance and cooperation with law enforcement.

North Korean hackers linked to surge in stolen cryptocurrency

Cryptocurrency theft reached $2.2bn (£1.76bn) in 2024, with North Korean hackers reportedly responsible for $1.3bn, according to a Chainalysis report. The total marks a 21% increase from 2023, though it remains lower than peak years.

The study highlights that hackers often target private keys used to access crypto platforms, causing severe losses for centralised exchanges. Significant breaches included a $300m theft from Japan‘s DMM Bitcoin and a $235m loss from India-based WazirX. Many attacks were linked to citizens of North Korea posing as remote IT workers.

The United States government has accused Pyongyang of using stolen funds to evade sanctions and finance weapons programmes. Recently, 14 North Koreans were indicted in a federal court for alleged extortion schemes, while the State Department announced a $5m reward for information on these activities.

Court rules against Craig Wright’s Bitcoin inventor claim

Craig Wright, an Australian computer scientist, has been found in contempt of court for falsely asserting he is Bitcoin’s creator, Satoshi Nakamoto. Despite a High Court ruling in March debunking his claim, Wright continued launching lawsuits seeking intellectual property rights over Bitcoin, including a $1.2 trillion demand.

The court described Wright‘s actions as ‘legal terrorism’ and sentenced him to a suspended 12-month prison term. If he persists, he risks jail time. Wright’s claim lacked concrete evidence, prompting the cryptocurrency industry to unite against him.

The court found Wright ‘lied extensively’ in his pursuit of recognition, creating a ‘chilling effect’ on the industry. The identity of Bitcoin’s inventor, Satoshi Nakamoto, remains unknown, as all claims, including Wright’s, have been discredited.