Chief executive of Tether has denied any signs of the company being under investigation by US authorities. His remarks follow a Wall Street Journal report suggesting federal investigators are looking into possible violations of sanctions and anti-money laundering rules.
The report stated that the US Attorney’s Office in Manhattan is examining whether Tether was involved in activities like funding drug trafficking, terrorism, or hacking, either directly or through third parties. Concerns have been raised over whether the cryptocurrency has facilitated the laundering of illicit funds.
Tether, the world’s largest stablecoin, aims to maintain a stable value over time. CEO Paolo Ardoino dismissed the claims on X, asserting that no investigation is underway. The Treasury Department is reportedly considering sanctions, though no official comments have been provided by the US Attorney’s Office or other relevant agencies.
In response, Tether criticised the Wall Street Journal for allegedly overlooking the firm’s cooperation with law enforcement to combat illegal activities involving cryptocurrencies. Officials from the Treasury’s Financial Crimes Enforcement Network did not immediately respond to media inquiries.
India’s Central Bank Governor, Shaktikanta Das, has voiced strong concerns about the impact of cryptocurrencies on financial stability, reiterating his cautious stance during a recent talk at the Peterson Institute for International Economics’ Macro Week 2024. Das highlighted that cryptocurrencies were originally designed to sidestep traditional financial systems, posing questions about whether governments are prepared to accept privately issued digital currencies with monetary attributes.
Das argued that issuing currency has always been a sovereign role, warning that allowing cryptocurrencies to operate could lead to sections of the economy moving beyond central bank oversight. This shift could destabilise monetary policy, as it would hinder the central bank’s control over money supply, a critical tool for managing inflation and economic cycles.
He further stressed that widespread crypto use could disrupt the existing financial system, potentially leading to chaos as banks lose their control over liquidity. Das’s comments underline India’s scepticism towards cryptocurrency, advocating for careful consideration of the long-term implications on economic stability.
Microsoft shareholders will vote on 10 December on whether the tech company should assess adding Bitcoin to its balance books, following a proposal filed with the US securities regulator. While the National Centre for Public Policy Research (NCPPR) urged Microsoft to consider Bitcoin investments, highlighting MicroStrategy’s profitable strategy and rising corporate adoption, Microsoft’s board advised against it.
The board argued that they already reviewed various assets, including Bitcoin, as part of their investment evaluations. The NCPPR, however, stated that Bitcoin could act as an inflation hedge, suggesting that even a small investment—around 1% of assets—might offer long-term benefits.
Despite interest from some shareholders, Microsoft’s current focus remains on artificial intelligence rather than blockchain or cryptocurrency investments. Though it once accepted Bitcoin payments for its Xbox store, this practice was discontinued in 2018, and Bitcoin investment is viewed as unlikely at present.
The United States and Nigeria have launched the Bilateral Liaison Group on Illicit Finance and Cryptocurrencies to counter cybercrime and misuse of digital assets. Led by the US Department of Justice and Nigerian authorities, this new initiative aims to strengthen both countries’ capabilities in investigating and prosecuting cyber and crypto-related financial crimes as digital finance expands globally.
The group’s formation comes soon after the release of Tigran Gambaryan, Binance’s head of financial crime compliance, who was detained in Nigeria since February on money laundering charges. His release due to health concerns follows rising tensions, and this new collaboration may help ease strained relations as both nations work toward secure cyberspace operations.
Aligned with US goals for global cyber enforcement, this liaison group aims to streamline coordination between the two countries’ enforcement bodies. This joint effort underscores the importance of cross-border cooperation to address the unique challenges posed by digital assets in the fight against financial crime.
At Fintech Week 2024, Dr Eric Yip of Hong Kong’s Securities and Futures Commission (SFC) announced key steps to streamline licencing for virtual asset trading platforms (VATPs). With fourteen platforms currently operating under ‘deemed-to-be-licensed’ status, the SFC plans to expedite full licencing by the end of this year through on-site inspections and close cooperation with platform leaders to maintain transparency and compliance.
The SFC will also establish a consultative panel in early 2025 to boost regulatory cooperation. This panel will include representatives from each licensed VATP and aim to foster dialogue between industry stakeholders and the SFC, with insights contributing to a white paper on upcoming regulatory priorities.
Alongside licencing efforts, the SFC will work with the Hong Kong Government and other agencies to establish frameworks for trading services and token custody. The SFC is also backing Project Ensemble, a tokenisation initiative by the Hong Kong Monetary Authority, aiming to set standards for tokenised asset settlement in the finance sector. Dr Yip highlighted the regulator’s commitment to investor protection and market growth through a ‘pragmatic and proactive approach.’
Kraken, a prominent cryptocurrency exchange, is set to unveil its new blockchain platform, Ink, in early 2025. The initiative marks a strategic shift towards decentralised finance (DeFi), empowering users to trade, borrow, and lend assets without intermediaries, a departure from Kraken’s traditional centralised operations. Ink aims to streamline DeFi access, making it more user-friendly and cost-effective.
The blockchain, inspired by similar efforts like Binance’s BNB Smart Chain and Coinbase’s Base, will launch without a native token but will include DeFi tools such as decentralised exchanges (DEXs) and yield-generating platforms, all accessible through the Kraken Wallet app. Kraken also plans to serve as Ink’s primary sequencer, managing network transactions and generating revenue, a model that has proven profitable for competitors.
Kraken introduced a derivatives trading platform in Bermuda on 3 October, following the receipt of a Class F Digital Business Licence from the Bermuda Monetary Authority in July. This expansion allows Kraken to provide digital asset wallet services, as well as futures and derivatives trading, aiming to capitalise on the growing market demand for these offerings.
South Korea has unveiled plans to regulate cross-border cryptocurrency transactions, set to take effect in the latter half of 2025. The forthcoming regulations will mandate that businesses engaged in virtual asset trading across international borders register with relevant authorities and provide monthly transaction reports to the Bank of Korea. This initiative aims to enhance transparency and oversight in a rapidly evolving market that has seen explosive growth in recent years.
The move comes in response to alarming statistics from the customs agency, which revealed that since 2020, foreign exchange-related crimes have amounted to 11 trillion won (approximately $7.97 billion). Notably, over 80% of these crimes have involved virtual assets, highlighting the need for stricter controls. The South Korean government is prioritising legislative measures to ensure the successful implementation of these regulations within the next 18 months, reflecting its commitment to combating financial crime and protecting investors.
By introducing these regulations, South Korea aims to create a safer environment for cryptocurrency transactions, aligning with global efforts to establish clearer frameworks for digital asset trading. As countries worldwide grapple with the implications of cryptocurrency, South Korea’s proactive stance may serve as a model for other nations looking to regulate the digital asset space effectively.
The Dutch government has invited public input on a new law proposal aimed at increasing transparency around cryptocurrency ownership. The legislation would require crypto service providers to collect and share user data with the local tax authority, aligning with the European Union’s reporting requirements to reduce tax evasion. According to the Netherlands’ Ministry of Finance, the law will not change current tax obligations for Dutch crypto owners, who are already required to declare their assets.
Under these new rules, the Dutch tax authority would share collected data on EU residents with other member states, as per the EU’s DAC8 crypto tax reporting framework. Additionally, non-EU countries that adhere to the OECD’s Crypto-Asset Reporting Framework, such as the United States and the United Kingdom, would receive relevant data through international cooperation agreements.
Garanti BBVA, Ripple, and IBM have joined forces to significantly enhance Garanti BBVA Kripto’s digital asset platform, addressing the rapidly growing demand for secure, reliable trading and storage solutions for over 14,000 users in Turkey. By leveraging Ripple’s transaction services alongside IBM’s advanced custody solutions, Garanti BBVA Kripto provides a secure environment for digital assets, including BTC, ETH, and USDC.
Furthermore, the Ripple-IBM partnership delivers an institutional-grade infrastructure incorporating essential security features, such as data encryption, isolated customer environments, and hardware security modules. Consequently, this setup ensures compliance with regulatory standards and establishes a robust governance framework to protect customer data and mitigate risks from potentially malicious actors. In addition, IBM’s sustainable infrastructure, powered by IBM LinuxONE, enables Garanti BBVA Kripto to maintain a high-performance and eco-friendly platform.
As a result of this partnership, Garanti BBVA, Ripple, and IBM are now better positioned to support Turkey’s burgeoning crypto asset market. Their combined focus on security, performance, and regulatory compliance enables Garanti BBVA Kripto to expand its digital asset offerings and strengthen its presence in the digital economy.
As demand continues to rise, collaboration provides the essential technological backbone for Garanti BBVA Kripto to innovate further and develop a secure, trustworthy, and scalable digital asset management ecosystem.
CryptoQuant CEO Ki Young Ju suggests that Bitcoin’s increasing mining difficulty could be a step toward its evolution into a stable digital currency. Mining difficulty, which has surged by 378% over the past three years, reflects growing competition driven by large mining companies with institutional backing. Ju views this rise in competition as beneficial for Bitcoin’s stability and development, projecting that by the 2028 halving event, Bitcoin could reach low volatility levels, making it more appealing as a currency.
Meanwhile, US Bitcoin mining giants like Riot Platforms and Marathon Digital are pushing for pro-crypto legislation by backing a political action committee that will focus on key states. This move, along with institutional and regulatory developments, points towards a future where Bitcoin may be mainstreamed as a peer-to-peer electronic cash system by 2030, fulfilling Satoshi Nakamoto’s original vision.
Though some remain sceptical of Bitcoin’s viability as a global currency, Ju asserts that Bitcoin’s growing infrastructure, alongside regulatory support and reduced volatility, could allow it to transition from an investment to a usable digital currency within the decade.
