El Salvador’s President Nayib Bukele has met with Argentina’s President Javier Milei in Buenos Aires to discuss shared economic and security challenges. Their discussions included Milei’s zero-deficit budget strategy and Bukele’s experiences with debt management. Both leaders found common ground in their political journeys, particularly Bukele’s struggle with parliamentary opposition when he first took office.
During the visit, Bukele also met with Argentine senators and Vice President Victoria Villarruel to advise on cryptocurrency matters. Villarruel expressed significant interest in Bitcoin and El Salvador’s innovative use of Volcano Bonds for financing. These discussions signal Argentina’s growing interest in digital assets as part of its financial future.
Meanwhile, Uruguay has taken a major step in regulating cryptocurrency, passing a law that creates a clear framework for digital asset use. The law grants the central bank oversight of virtual asset service providers, ensuring compliance with anti-money laundering regulations whilst paving the way for new opportunities in the crypto sector.
The UAE has introduced amendments to its VAT regulations, exempting the transfer and conversion of digital assets, including cryptocurrencies, from VAT. This change, which applies retroactively from January 2018, will also benefit companies involved in managing investment funds. Businesses dealing with virtual assets are urged to review their past VAT positions to ensure proper input tax recovery, which enables them to claim back VAT paid on eligible purchases.
Virtual assets in the UAE are defined as representations of value used for digital trading or investment, excluding fiat currencies or financial securities. Meanwhile, regulators in the UAE have stepped up efforts to refine crypto regulations. Dubai’s VARA and the SCA have agreed to supervise virtual asset service providers jointly, allowing VASPs licensed in Dubai to operate across the wider UAE.
Additionally, the Virtual Asset Regulatory Authority has tightened rules on marketing, requiring firms to include disclaimers highlighting the volatility and potential loss in the value of digital assets. This move aims to ensure greater transparency in the rapidly growing crypto market.
LEGO Group’s website was briefly compromised on 5 October, with a scam promoting a fake ‘LEGO Coin’ token appearing on the homepage. The message encouraged users to purchase the token in exchange for ‘secret rewards’ but redirected them to a phishing site. The scam was removed after about 75 minutes, and LEGO confirmed that no user accounts had been compromised.
LEGO has since assured customers that the issue has been resolved and steps are being taken to prevent future incidents. Despite earlier hints in 2021 about entering the NFT space, LEGO has not officially pursued any crypto-related ventures.
This incident highlights the ongoing threat of cryptocurrency scams, which saw $127 million stolen from victims in the third quarter of 2024, with September alone accounting for $46 million in losses.
Grayscale Investments has unveiled the Grayscale Aave Trust, offering accredited investors an opportunity to indirectly invest in AAVE, the token powering Aave’s decentralised lending protocol. Aave, a leading player in decentralised finance (DeFi), operates on the Ethereum blockchain and allows users to borrow and lend cryptocurrencies without traditional intermediaries like banks. By utilising smart contracts, Aave eliminates credit checks, making lending more transparent and accessible.
The Grayscale Aave Trust functions similarly to the firm’s other single-asset investment trusts, with its primary focus on AAVE. This trust provides a streamlined way for investors to tap into Aave’s lending platform, which has become the largest in the DeFi space by total value locked. Grayscale’s private placements, including this trust, are available only to accredited investors through a daily subscription model.
Grayscale continues to expand its range of crypto investment products, with recent launches of the XRP Trust and Sui Trust. The firm’s Head of Product & Research, Rayhaneh Sharif-Askary, highlighted Aave’s potential to transform traditional finance by cutting out intermediaries and optimising lending processes using blockchain technology.
The excitement around ‘Uptober,’ a historically bullish month for crypto, is fading as the market retreats, sparking a shift in social media chatter towards terms like ‘Selltober’ and ‘Octobear.’ Analytics platform Santiment noted that optimistic sentiment has dropped since the start of October, as traders now face a more bearish outlook. Despite this, some experts suggest there is still potential for a short-term rebound.
Bitcoin has slightly recovered after briefly dipping below $60,000 on 3 October, but overall market conditions remain shaky. The crypto market has shed $200 billion in total value since the start of the month, with technical indicators suggesting overextended rallies and sell-offs driving prices down. Historically, Bitcoin has performed well in October, often seeing gains mid-month, leaving some hoping the pattern will repeat despite current bearish trends.
Visa has introduced a blockchain-based platform designed to help financial institutions integrate fiat-backed tokens. The Visa Tokenized Asset Platform (VTAP) will allow banks to mint, transfer, and redeem tokens on public blockchain networks, such as Ethereum. BBVA, a leading Spanish bank, is set to pilot this platform by 2025, aiming to bridge the gap between traditional banking and blockchain technology.
The platform is designed to integrate with existing banking systems using APIs, allowing banks to explore tokenisation use cases. It also offers programmable features to automate complex credit lines and release payments based on smart contract conditions.
Despite Visa’s cautious approach to stablecoin adoption, citing concerns over automated transactions, the platform marks a significant step toward blending blockchain technology with traditional financial services.
PayPal has recently completed its first business payment using its USD-pegged stablecoin, PYUSD, to Ernst & Young via SAP’s digital currency hub. The transaction, made public in early October, highlights how corporations can utilise stablecoins for instant and seamless payments. PayPal launched PYUSD in August 2023, and it has rapidly gained traction, with a market capitalisation of $699 million.
Stablecoins pegged to assets such as the US dollar, provide businesses with a more stable payment option than the often volatile cryptocurrency market. PayPal’s blockchain executive, Jose Fernandez da Ponte, emphasised the appeal of stablecoins in corporate finance, noting the practicality of this digital asset for Chief Financial Officers. Meanwhile, fintech companies like Robinhood and Revolut are also exploring their stablecoins as regulations worldwide, particularly in Europe, become more apparent.
Tether’s USDT has long dominated the stablecoin market, which has a market cap nearing $120 billion, far ahead of competitors like USD Coin. However, with PayPal and other firms entering the space, competition in the stablecoin sector is expected to intensify.
Russian authorities have launched a large-scale crackdown on illegal cryptocurrency exchanges, conducting raids on dozens of addresses in Saint Petersburg and beyond. The operation, involving officers from the Ministry of Internal Affairs and local police, has resulted in over 90 arrests or cautions. The exchanges are believed to be part of a network facilitating illegal cross-border money transfers using crypto.
The government, which does not legally recognise crypto exchanges, suspects these platforms of being used for money laundering. The raids have targeted key figures in the operation, with charges of organised crime and illegal banking activities expected. Investigations continue, with the authorities uncovering further leads on the network’s operations.
The International Monetary Fund (IMF) is holding talks with El Salvador to focus on strengthening reforms, particularly in light of the country’s use of Bitcoin. A key topic in the discussions involves addressing the risks posed by the digital currency, with the IMF calling for a narrowing of the Bitcoin law’s scope. Strengthening regulations and oversight of the Bitcoin ecosystem is seen as crucial.
The IMF has also recommended that El Salvador limit its public sector’s exposure to Bitcoin. Additionally, the country’s 2025 budget proposal has been praised by the IMF as a step towards improving public finances, though the organisation stressed the need for robust implementation to ensure its success.
Bitcoin’s price has fallen for four consecutive days, hitting $60,200, 8% below its peak last week. The decline coincided with a broader risk-off sentiment among investors, spurred by rising geopolitical tensions following Israel’s response to recent attacks. Stock indices such as the Dow Jones and Nasdaq also saw sell-offs, while bond yields and the US dollar index climbed.
Adding to the pressure, large Bitcoin holders like Ceffu sold substantial portions of their assets, accelerating the price drop. Social media buzz around Bitcoin has also contributed to the decline, according to Santiment, with enthusiasm often leading to short-term price reversals. The crypto fear and greed index fell to 39 from last week’s 60, reflecting a shift in market sentiment.
Despite the recent downturn, October and November are traditionally strong months for Bitcoin, offering hope of a rebound. The coin remains above key technical levels, including its 50-day and 200-day moving averages, and has formed a bullish inverse head and shoulders pattern, suggesting a possible recovery ahead.
