Africa is experiencing a remarkable surge in cryptocurrency adoption, with Telegram-based communities expanding by an astounding 189% since early 2023, according to research from cryptocurrency exchange Bitget. This shift highlights a significant migration of digital asset interest from traditional Western markets to emerging economies. The study found that Africa’s crypto-focused Telegram groups now boast over 3 million users, primarily driven by a young demographic, with over 56% of users aged under 25.
Factors contributing to this growth include economic instability, limited access to banking services, and the tech-savvy nature of the youth. In addition to Africa, Eastern Europe, particularly Ukraine, is seeing a rise in cryptocurrency usage amid economic challenges. In contrast, Western Europe is growing more slowly due to regulatory constraints and market maturity, with Telegram groups seeing only an 11% increase during the study period.
The research indicates that mobile technology plays a crucial role in this trend, with Telegram becoming the primary platform for crypto communities in emerging markets. Projections suggest Africa’s crypto market could reach 54 million users by 2025, with Nigeria and South Africa leading the way. However, while Telegram fosters trading communities, it also hosts a concerning number of scams, underscoring the need for caution among users navigating this rapidly evolving landscape.
De Nederlandsche Bank (DNB), the Netherlands’ central bank, has fined crypto exchange Bybit €2.2 million ($2.4 million) for operating in the country without the required registration. Bybit’s non-compliance with the Anti-Money Laundering and Anti-Terrorist Financing Act triggered the fine, as the exchange had not registered to support oversight and prevent illicit financial flows. The legislation, enacted in 2020, mandates that crypto providers register to reduce risks tied to anonymous transactions.
DNB stated that Bybit’s non-compliance hindered its ability to report suspicious transactions to Dutch authorities, a critical component of financial oversight. Although DNB acknowledged the severity and duration of the breach, it reduced the fine due to Bybit’s efforts to resolve the issue by transferring Dutch customers to local partner SATOS B.V., which holds a compliant operating licence.
Acknowledging the fine, Bybit underscored its commitment to regulatory adherence. CEO Ben Zhou highlighted Bybit’s actions in 2022 to mitigate potential risks, affirming the company’s goal of responsible growth through close cooperation with European regulators.
A recent report by Electric Capital’s Maria Shen reveals that Asia has become the leading region for cryptocurrency developers, surpassing North America for the first time. Analysis of over 110,000 developer profiles shows Asia’s share has grown from 13% in 2015 to 32% in 2024, while North America’s share has dropped sharply from 44% to 24%.
At the national level, the United States still ranks first globally with 18.8% of crypto developers, though this represents a 51% decrease since 2015. India follows with 11.8%, while the United Kingdom holds 4.2%. Notably, as the industry’s market size soared from $5 billion in 2015 to $2.4 trillion today, the geographical spread of developers has extended well beyond traditional tech hubs like California and New York, with 64% now based outside these centres.
Maria Shen emphasised that cryptocurrency development spans various regions and political affiliations, highlighting the field’s global and diverse nature. Her report, based on 200,000 crypto Git commits from over 350,000 code repositories, underscores the growing decentralisation of crypto talent.
Consensys, a prominent cryptocurrency firm, has announced it will cut 20% of its workforce, equivalent to 162 of its 828 employees. CEO Joseph Lubin attributed the decision to persistent macroeconomic challenges and intensified regulatory scrutiny impacting the crypto sector. Rising interest rates, inflation, and liquidity constraints have further complicated the industry’s environment, contributing to Consensys’ decision.
Lubin voiced concerns over regulatory hurdles in the United States, specifically criticising the Securities and Exchange Commission (SEC) for what he described as overreach in its enforcement actions. He argued that multiple SEC cases, including one involving Consensys, have led to job losses and hindered productive investment. Lubin also accused the agency of misusing its authority, which he claims threatens to financially damage numerous companies involved in crypto.
The regulatory landscape for crypto remains complex, with limited frameworks in place across key markets. While some firms have accused the SEC of stifling innovation, the agency has consistently defended its actions, asserting that these measures are necessary to protect investors.
Taiwan is moving towards stricter oversight of the crypto sector, with the Financial Supervisory Commission (FSC) set to introduce a registration system for crypto exchanges on 30 November. This early implementation is part of Taiwan’s efforts to bring clarity and regulatory compliance to digital asset exchanges, a growing segment of the financial market.
FSC Chairman Peng Chin-long recently noted that 26 exchanges have already fulfilled compliance declarations under Taiwan’s anti-money laundering laws, with up to 30 more applications under review. Following previous inspections that uncovered serious issues around identity verification and transaction monitoring, the FSC plans to inspect six more crypto firms in November and December.
In addition, the FSC is drafting a “Special Law for Crypto Exchange Management” to establish transparent licensing standards and enhanced consumer protection measures. The proposed law will undergo public hearings in early 2025, providing the public with a chance to weigh in on future crypto regulations.
Coinbase users in the UK and US can now fund their accounts instantly using eligible Visa debit cards, following a recent partnership with Visa. This integration, announced on 29 October, allows customers to deposit funds in real-time through the Visa Direct network, providing flexibility for those looking to quickly respond to crypto market changes.
The new feature is set to simplify access to trading funds by reducing traditional wait times associated with crypto funding. With Visa Direct, Coinbase users can now top up their accounts or make crypto purchases almost instantly, while also benefiting from instant cash-outs to bank accounts, minimising delays on major transactions.
The partnership further underscores Visa’s growing involvement in the crypto sector. Earlier in October, Visa also launched its Tokenized Asset Platform, enabling banks to manage fiat-backed tokens, including stablecoins. BBVA, a major Spanish bank, is set to trial this platform on the Ethereum blockchain in 2025, marking a significant step in Visa’s broader blockchain strategy.
Brazil’s net imports of crypto assets have surged by over 60% in the first nine months of 2024 compared to the same period last year, according to the country’s central bank. Total imports reached $12.9 billion through September, already exceeding the $11.7 billion recorded for all of 2023. Fernando Rocha, head of the central bank’s statistics department, noted a slight month-to-month decline from August to September but stressed that year-on-year growth remains strong.
Demand for stablecoins, digital assets pegged to real-world assets such as the United States dollar, has been the primary driver behind this increase, making up nearly 70% of all crypto transactions in Brazil this year, according to tax revenue data. Central bank chief Roberto Campos Neto recently announced plans to regulate stablecoins in 2025, citing concerns about their links to tax evasion and illicit activities.
As the world’s tenth-largest crypto market, according to blockchain analytics firm Chainalysis, Brazil continues to see stablecoins grow in popularity, largely due to their price stability and ease of international transfer. Unlike cryptocurrencies with fluctuating values, stablecoins such as Tether (USDT) and USDC offer Brazilians a reliable way to move funds quickly and securely.
JP Morgan Chase has initiated lawsuits against customers accused of exploiting a glitch to withdraw large sums from its ATMs. The viral ‘infinite money glitch’ trend on TikTok involved users writing large cheques to themselves, depositing them, and withdrawing the money before the cheques were returned as invalid.
The lawsuits target two individuals and two businesses, demanding the return of funds with interest, reimbursement of overdraft fees, and coverage of legal expenses. In a court filing, JP Morgan revealed that one incident involved a $335,000 cheque deposited on 29 August, with over $290,000 still owed after the cheque was deemed counterfeit.
Bank officials stressed their commitment to fraud prevention, describing bank fraud as a serious crime in court documents. The total amount linked to the defendants in the lawsuits exceeds $660,000. Typically, banks permit customers to withdraw only part of a cheque’s value until it clears.
The Wall Street Journal recently reported that the bank closed the loophole shortly after the glitch went viral. An ongoing investigation by JP Morgan is reviewing thousands of potential fraud cases tied to the incident.
The surge in AI exchange-traded funds (ETFs) reflects the growing investor enthusiasm for AI as fund managers launch new options to capture market interest. According to Morningstar, over a third of the AI-focused ETFs on the market were introduced in 2024, raising total assets in this category to $4.5 billion—close to the $5.5 billion held by nuclear-themed ETFs and far outpacing the $1.37 billion in cannabis funds. This growth is partially driven by high-profile gains, like chipmaker Nvidia’s stock surge of over 200% in the last year, which underscores AI’s profit potential, said Morningstar senior analyst Daniel Sotiroff.
BlackRock has added two new actively managed AI ETFs to its lineup, aiming to capture emerging opportunities in AI as the technology evolves. “The AI market is going to change dramatically,” noted Tony Kim of BlackRock, highlighting that what AI represents today will continue to shift. Bank of America analysts agree, describing the competition in AI among tech giants like Microsoft and Amazon as an “arms race.” This year, capital spending on AI by these firms is expected to total $206 billion, marking a 40% increase over last year, while venture capital funding for AI startups is projected to rise 27%, reaching $79.2 billion.
Despite the enthusiasm, AI-focused funds haven’t consistently outperformed the broader market; for instance, the Global X Artificial Intelligence & Technology ETF has gained about 20% in 2024, trailing the S&P 500’s 22% rise. Amplify ETFs recently shifted an existing cloud-computing ETF to focus on AI opportunities, illustrating the industry’s shift toward differentiating AI investment strategies. Nathan Miller of Amplify said that capturing the potential of AI-related capital spending remains a priority for long-term growth.
A coalition of major Japanese financial institutions has called on the government to prioritise top cryptocurrencies like Bitcoin and Ethereum if it decides to approve exchange-traded funds (ETFs) for digital assets. The group, which includes financial heavyweights such as Mitsubishi UFJ Trust and Banking Corp. and Nomura Securities, submitted recommendations on 25 October for creating crypto-focused ETFs, highlighting the importance of well-established tokens with significant market value.
In their proposal, the group also urged Japanese regulators to review the country’s taxation system, suggesting a distinct tax on crypto-derived earnings. This request reflects the institutions’ belief that Bitcoin and Ethereum’s established presence and stability could appeal to investors interested in building long-term wealth.
Despite these proposals, Japanese regulators remain cautious, with officials citing regulatory concerns and public scepticism following past issues, including the Mt. Gox collapse. Nevertheless, several firms remain optimistic about crypto’s future in Japan, as seen by partnerships like that of SBI Holdings and Franklin Templeton, aimed at expanding crypto offerings. Whilst Japan debates, nations such as the US, Hong Kong, and Australia have already approved spot crypto ETFs, creating a trend Japan may soon follow.
