Italy‘s economy minister Giancarlo Giorgetti has defended plans to raise taxes on cryptocurrency capital gains as part of the country’s 2025 budget, despite facing opposition from members of his own League party. The proposal would increase the tax rate on cryptocurrency profits from 26% to 42%, a move expected to generate an additional €16.7 million per year.
Giorgetti, speaking at a banking conference in Rome, argued that cryptocurrency investments present a higher level of risk than other assets and lack connection to tangible projects. He urged investors to distinguish between traditional investments and cryptocurrencies, citing the volatility of digital assets as a primary concern.
The tax increase has drawn criticism from League lawmaker Giulio Centemero, who described it as ‘counterproductive’ and called for further consultation with market players. The proposal coincides with the European Union‘s implementation of its Markets in Crypto-Assets (MiCA) regulation, which mandates licensing for crypto firms and enforces anti-money laundering measures across member states.
The cryptocurrency industry is bracing for a shift in US regulatory policy, with leaders expecting a more favorable approach from Washington, regardless of the next administration. After years of regulatory tension under President Joe Biden’s administration, crypto companies are optimistic that the incoming administration will adopt a more supportive stance toward digital assets. Notable crypto firms, including Bitwise and Canary Capital, are actively developing new products, and other companies are preparing fresh pushes for pro-crypto legislation in Congress.
Both presidential candidates, Donald Trump and Vice President Kamala Harris, have expressed openness toward the digital asset industry. Trump has even pledged to become a “crypto president,” while Harris, though less specific, has shown support for digital innovation and investor protection, which many industry leaders interpret as a potential shift in regulatory tone. This perspective is reinforced by Harris supporter Mark Cuban, who recently emphasised her promise to protect crypto users.
The US Securities and Exchange Commission (SEC), led by Chair Gary Gensler, has taken a strict stance on crypto assets, citing risks illustrated by cases like FTX’s collapse. Gensler’s tenure has involved multiple enforcement actions against major crypto exchanges, creating a challenges for digital assets. However, crypto executives believe that a new administration could bring changes, including potentially overturning regulatory guidance that has deterred financial institutions from crypto involvement.
A new survey by Turkish crypto exchange Paribu reveals that Turkish investors are turning increasingly to cryptocurrencies as their preferred investment, even surpassing traditional assets like real estate. The ‘2024 Cryptocurrency Awareness and Perception’ survey, which included over 2,000 participants familiar with crypto, found that 30% of respondents now favour digital assets over real estate and stocks. This trend highlights a shift in Turkey’s investment landscape as investors seek the speed, accessibility, and potential returns offered by crypto.
Gold remains the top investment choice for 56% of those surveyed, while foreign currency and cryptocurrency follow closely. Interestingly, real estate dropped in preference from 30% last year to 26% this year, signalling a broader change in investor sentiment. Paribu’s research content manager, Nergis Nurcan Karababa, explained that the rise in crypto interest is also driven by institutional support, reflecting an optimistic outlook on crypto’s role in Turkey’s economy.
While cryptocurrency awareness in Turkey has nearly reached universal levels, with almost 99% recognising digital assets, understanding of blockchain technology remains limited, with 72% lacking basic knowledge. Despite this gap, Turkey has solidified its position as a global crypto market leader, ranking fourth worldwide. Regulatory support is expanding, with 47 crypto firms, including Bitfinex and Binance TR, applying for licences to operate under Turkey’s new regulations.
The Russian government has introduced new regulations limiting electricity usage for home-based cryptocurrency miners to 6,000kWh per month. Mining operators exceeding this limit will now need to obtain an individual entrepreneurial licence to continue their operations legally. These measures are part of two crypto mining laws that came into effect on 1 November, which recognise mining as a legitimate enterprise in Russia, provided operators adhere to these usage caps.
For those surpassing the electricity threshold, additional compliance measures are required. These operators must register with the Federal Tax Service and submit details about mined cryptocurrencies, including wallet address details. Government agencies, including the anti-money laundering agency Rosfinmonitoring, will have access to this information, though data from the registry will remain confidential and only available to officials.
The laws also restrict participation based on specific criteria. Operators in regions with local mining bans, individuals who have declared bankruptcy, or those previously violating anti-money laundering regulations will be barred from registering. Experts estimate that while large-scale Russian miners primarily focus on Bitcoin, home-based operators often mine Ethereum, highlighting Russia’s diverse but heavily regulated mining landscape.
Huawei has announced that its latest operating system, HarmonyOS NEXT, will incorporate China’s central bank digital currency, the digital yuan. Officially launched on 22 October 2023, HarmonyOS NEXT will streamline digital yuan access for Huawei’s extensive user base, estimated at nearly 1 billion people. This marks the first in-house operating system developed entirely by Huawei, positioning it as the world’s third most popular operating system after Android and iOS.
With the digital yuan built directly into the operating system, users can access the currency without needing a separate application, simplifying its use. Huawei has also announced improvements in digital wallet management and enhanced interoperability with other financial applications, making the central bank’s digital currency more accessible and practical. Plans to expand the digital yuan’s reach across IoT devices and smart chips signal further integration across a range of technologies.
This integration comes at a time when China’s digital yuan is gaining momentum domestically and internationally. Recently, the International Air Transport Association (IATA) included the digital yuan as the first digital currency it will accept, citing China’s leading position in digital currency adoption. Meanwhile, China is preparing to update its Anti-Money Laundering laws to address risks associated with virtual assets, underscoring the country’s evolving approach to digital finance.
The Blockchain Association, an advocacy group for cryptocurrency and blockchain, reported that the US Securities and Exchange Commission (SEC) has cost crypto firms over $426 million in legal expenses since Gary Gensler became chair. According to the group, SEC actions against digital asset companies have increased since 2021, with 104 cases filed over two years. Industry leaders argue that this ‘regulation by enforcement’ approach has hindered growth and cost jobs.
Calling for change, the Blockchain Association stated that voters want fair regulations and an end to what it describes as the SEC’s “anti-innovation crypto crusade.” The association’s CEO, Kristin Smith, urged the public to support new SEC leadership, echoing complaints from other industry advocates and some lawmakers about Gensler’s strict approach.
The association further hinted that crypto could play a significant role in the upcoming election, with 18% of voters reportedly open to supporting candidates favouring digital asset innovation. As Election Day nears, political parties may increasingly see crypto regulation as a key issue in attracting undecided voters.
Aleksei Andriunin, the founder of cryptocurrency firm Gotbit, has been indicted in the US for alleged involvement in a conspiracy to manipulate cryptocurrency markets. The Justice Department claims that Andriunin and his firm provided market manipulation services to increase artificial trading volumes for various cryptocurrency companies from 2018 to 2024.
The superseding indictment also names Gotbit’s directors, Fedor Kedrov and Qawi Jalili, who were already charged earlier in October. Prosecutors allege that these actions aimed to distort the cryptocurrency markets, with several companies, including some in the United States, reportedly benefitting from these tactics.
If convicted, Andriunin faces significant penalties, with wire fraud charges carrying a potential 20-year prison sentence. He could also face an additional five years for conspiracy charges. The allegations form part of a larger crackdown on crypto market manipulation, which has already led to several arrests and asset seizures worth $25 million.
Recent moves by federal prosecutors highlight a more aggressive stance on crypto-related fraud. They have targeted multiple firms, including Gotbit, and several leaders have already agreed to plead guilty. The crackdown aims to strengthen transparency and curb malpractice in the cryptocurrency market.
With Election Day approaching, former President Donald Trump is promoting a pro-Bitcoin stance in his re-election campaign, urging voters to support him for his promises to bolster US Bitcoin production. In a recent post, Trump claimed he would move all Bitcoin mining to the US and end what he calls Vice President Kamala Harris’s ‘war on crypto.’ He also celebrated the anniversary of Bitcoin’s white paper, positioning himself as a champion of the digital asset.
This campaign pivot comes despite Trump’s past remarks dismissing Bitcoin as a ‘scam’ and saying it was based on ‘thin air.’ His current promises, including pledges to restrict BTC mining within the US and block the development of a central bank digital currency, align with efforts to attract pro-crypto voters. Polls indicate a close race between Trump and Harris in key states where crypto policies could influence undecided voters.
Meanwhile, social media has seen a wave of misinformation on both candidates’ crypto positions. For instance, MicroStrategy’s Michael Saylor falsely claimed Trump proposed abolishing capital gains taxes on crypto. With voting in critical states like Georgia, Texas, and Arizona ending soon, the candidates’ crypto policies may prove decisive in an election too close to call.
Eastern Europe is witnessing a significant increase in cryptocurrency activity, with over $499 billion in digital assets received between July 2023 and June 2024, according to a report from Chainalysis. Notably, decentralized finance (DeFi) activities contributed more than $165 billion to this total, accounting for about one-third of the region’s cryptocurrency transactions. This surge has propelled Eastern Europe to become the fourth-largest cryptocurrency market globally, representing over 11% of total crypto value received worldwide.
Despite the ongoing war and international sanctions, both Russia and Ukraine are leading in crypto transaction values, with Russia receiving over $182 billion and Ukraine over $106 billion. The report indicates that large institutional transfers significantly drive Ukraine’s market growth, as investors seek financial stability amid turmoil. Local exchanges like WhiteBIT remain active, facilitating a surge in professional transfers, which have been influenced by global market volatility and inflation.
In Ukraine, the rise in Bitcoin transactions has been particularly notable, with purchases using the national currency, the hryvnia, exceeding $882 million in the past year. This trend follows a period of high inflation, which peaked at over 26% in December 2022, prompting many Ukrainians to view Bitcoin as a safer alternative for storing value.
Praxis, a forward-thinking tech company, has secured a remarkable $525 million investment to create a groundbreaking city on the Mediterranean coast that merges cryptocurrency and AI. This ambitious project, aimed at crafting a tech-driven society, envisions a seamless blend of nature and advanced technology, where electric vehicles and AI-driven systems enhance urban life.
Founded in 2019 by Dryden Brown and Charlie Callinan, Praxis seeks to establish a utopian city that champions innovation, minimal governance, and a libertarian lifestyle. With plans to use cryptocurrency as the primary currency, the city promises to attract top tech talent and entrepreneurs looking for a fresh start free from traditional constraints. Despite the project’s romantic nature, it has already garnered the interest of over 2,000 prospective residents, with a waiting list of 50,000.
Collaborating with renowned firm Zaha Hadid Architects, Praxis aims to design a city that harmoniously fuses futuristic and traditional styles, ensuring adaptability for future growth. While some critics question the project’s feasibility, the support from prominent investors like Peter Thiel and Balaji Srinivasan underlines the potential for this vision to reshape urban living. With operations projected to begin around 2026, Praxis is set to host its first event in the Dominican Republic to gather leaders and innovators focused on the future of digital sovereignty.
