Russia is continuing its move towards becoming a major player in the crypto mining world, with the Komi Republic set to establish 15 new mining data centres. The first two centres in Mikun and Sindor will cost approximately $27.6 million. Backed by investors and a local power company, the project highlights Russia’s determination to strengthen its presence in the crypto space. While it remains unclear which cryptocurrencies will be mined, Bitcoin is expected to be the focus.
Komi’s cold winters and abundant natural resources, including oil and gas reserves, make it an ideal spot for crypto mining. This expansion follows the government’s efforts in Russia to regulate the industry, with President Vladimir Putin recently signing a law to legalise mining. Additionally, state-owned energy giant Gazprom has announced plans to build a large crypto mining centre, aiming for full capacity by 2028.
Once the hotspot for Russian miners, Siberia has seen a crackdown on illegal mining due to strain on local grids. As a result, miners are now looking to other regions like Komi to continue their operations.
A group of US Senate Democrats has called on the nation’s largest Bitcoin ATM operators to step up efforts in preventing fraud targeting elderly Americans. The Senators, led by Senate Judiciary Committee Chair Dick Durbin, addressed the growing number of scams using Bitcoin ATMs, urging companies to take immediate action to protect vulnerable populations.
Data from the Federal Trade Commission reveals that in the first half of this year alone, Bitcoin ATM-linked fraud amounted to $65 million. Older adults, particularly those aged 60 and over, were disproportionately affected, being three times more likely to report financial losses than younger users. Senators, including Elizabeth Warren, pointed to recent reports showing scammers coercing elderly individuals into sending funds through Bitcoin ATMs.
The Senators have asked major Bitcoin ATM firms to respond by early October, detailing their measures to combat fraud. This comes amid broader concerns over the rise in crypto scams, with the FBI reporting a significant increase in overall crypto-related fraud this year.
Delta Prime, a decentralised finance (DeFi) platform, was hit by a hack resulting in nearly $6 million in losses. The incident began with an initial loss of $4.5 million, but further malicious transactions pushed the total stolen to $6 million. The attack appears to have been caused by a private key exploit, allowing the hacker to take control of the platform’s wallet and drain funds from Delta Prime‘s pools on the Arbitrum chain. It follows a larger trend of increasing cyber-attacks on DeFi platforms.
The hack on Delta Prime comes just two months after WazirX, an Indian cryptocurrency exchange, suffered a $230 million theft, marking it as one of the largest crypto hacks of the year. As the DeFi space grows, so does the frequency of attacks, with hackers continually finding new ways to exploit vulnerabilities.
Experts warn that North Korean hackers may now target US Bitcoin exchange-traded funds (ETFs) due to their significant holdings. With US Bitcoin ETFs holding over $53 billion in assets, they present a highly attractive target for cybercriminals.
Circle, the company behind the USDC stablecoin, is confident that stablecoins will become a mainstream form of money. With increasing competition in the market, Circle’s chief strategy officer Dante Disparte emphasises the need for global regulatory harmony to ensure proper compliance for all stablecoin issuers, particularly in areas like financial crime prevention and conservative reserving practices.
Circle is also preparing to relocate its global headquarters to New York by 2025, as it continues to advocate for federal stablecoin regulations in the US. Disparte argues that the lack of a clear framework poses a risk to American interests, potentially allowing foreign entities to exploit trust in the US dollar without proper oversight.
Meanwhile, Europe’s new MiCA regulation has provided much-needed clarity for stablecoins, with Circle achieving compliance under this framework. As competition heats up with entrants like PayPal and Ripple, Circle remains at the forefront of regulatory discussions, pushing for clearer rules that foster innovation while safeguarding consumers.
MicroStrategy has significantly expanded its bitcoin holdings, acquiring $1.11 billion worth of the cryptocurrency between August 6 and September 12. The company now holds approximately 244,800 bitcoins, valued at $9.45 billion. The average purchase price was around $38,585 per bitcoin, including fees and expenses.
This aggressive move towards bitcoin began in 2020, as MicroStrategy sought to preserve its reserves amid declining revenue from its core software business. Its decision to prioritise cryptocurrency has drawn support from investors, linking the company’s stock performance to the fluctuating price of bitcoin.
The firm’s shares have more than doubled in 2024, while bitcoin itself has risen by nearly 31% year-to-date. The approval of spot bitcoin exchange-traded funds by the SEC, alongside backing from influential figures like Elon Musk, has contributed to the mainstream acceptance of the asset.
MicroStrategy also recently underwent a 10-for-1 stock split to increase accessibility for investors, further signalling its commitment to growth in the crypto space. Its ongoing bitcoin strategy reflects confidence in the long-term potential of the digital asset.
On Friday, US spot Bitcoin ETFs experienced a significant rise in inflows, totalling $263 million as Bitcoin’s price surged over $60,000. Fidelity’s Bitcoin ETF led the pack, pulling in $102 million, while ARK Invest and 21Shares followed closely with $99 million in net inflows. This marks a shift in sentiment after weeks of outflows, signalling renewed investor optimism in the crypto market.
Despite the positive inflows for most ETFs, BlackRock’s iShares Bitcoin Trust and WisdomTree’s Bitcoin Fund recorded no new investments. However, US spot Bitcoin ETFs collectively closed the week with more than $400 million in net inflows. This, combined with Bitcoin’s 12% price increase, reflects growing confidence in the market.
The wider cryptocurrency market also benefited, with Ethereum rising by 8% and altcoins like Toncoin, Chainlink, and Avalanche performing strongly. Investors remain hopeful as expectations build for a potential interest rate cut by the US Federal Reserve, which could further boost the crypto market.
Sam Altman, known for his leadership at OpenAI, has another ambitious project called Worldcoin, which seeks to address the potential fallout from AGI. He envisions AGI reshaping the global economy, and Worldcoin aims to build a framework to identify humans online and eventually offer universal basic income through its cryptocurrency.
Worldcoin’s plan involves the use of biometric data, particularly scanning people’s irises, to create digital IDs. These unique identifiers ensure that only humans can participate in online activities, preventing bots from infiltrating online spaces. While this technology may seem dystopian, the project insists on the safety and encryption of personal data, immediately deleting images after processing.
Despite concerns, Worldcoin has garnered substantial interest, including backing from major investors. CEO Alex Blania acknowledges the need to communicate the project’s vision clearly, especially as it faces regulatory challenges in various countries. Collaboration with governments is essential to ensure smooth deployment of the technology.
With AGI on the horizon, projects like Worldcoin are positioning themselves to shape the future. Altman believes that once AGI becomes widespread, the digital identity and financial framework offered by Worldcoin could play a vital role in adapting to this new reality.
According to a court filing on Thursday, Kraken faces accusations similar to those levelled against other major crypto exchanges, Binance and Coinbase, by the SEC. The US federal regulator contends that these companies failed to register as brokers, clearinghouses, or exchanges, as mandated by law.
In November last year, the SEC initiated legal action against Kraken in the Northern District of California, asking the court to permanently enjoin the exchange from committing further securities violations. The agency also seeks to disgorge Kraken’s ‘ill-gotten gains’ and other civil penalties. The SEC has specifically listed 11 tokens claiming these as unregistered securities, arguing that Kraken’s failure to register these securities directly violates federal law.
Kraken asserts it was not required to register with the SEC as it does not classify itself as an exchange, broker-dealer, or clearing agent within the meaning of the Exchange Act. The exchange argues that digital assets should not be considered investment contracts as they lack the rights and obligations associated with traditional financial instruments like stocks or bonds. Additionally, Kraken accuses the SEC of acting without due process and fair notice, suggesting the regulator’s enforcement actions are punitive rather than corrective.
By demanding a jury trial, Kraken is poised to challenge the SEC’s regulatory authority, potentially setting a legal precedent that could influence future digital asset regulation in the United States and beyond.
A new bill introduced by US Representative John Rose aims to foster cooperation between two major financial regulators, the SEC and CFTC, in overseeing the cryptocurrency industry. The ‘Bridging Regulation and Innovation for Digital Global and Electronic Digital Assets’ Act (BRIDGE Act) seeks to create a Joint Advisory Committee to draw expertise from agencies and private crypto industry professionals. The committee would meet twice yearly to help shape a regulatory framework that encourages innovation without compromising investor safety.
Representative Rose criticised the current enforcement-driven approach, which he believes has stifled innovation. Instead, he advocates for a more collaborative effort between regulators and private stakeholders to explore how blockchain technology can enhance traditional financial sectors. His proposal includes appointing 20 industry experts to the advisory committee, serving two-year terms.
The latest legislative move is part of a broader effort by US lawmakers to clarify how digital assets should be regulated. The SEC and CFTC have historically clashed over whether cryptocurrencies like Ethereum should be classified as securities or commodities, leading to ongoing legal disputes. While some crypto bills, like the Financial Innovation and Technology for the 21st Century Act, have faced opposition from the White House, negotiations on regulatory frameworks for digital assets are ongoing.
Grayscale Investments has launched a new investment trust tied to XRP, offering accredited investors exposure to the cryptocurrency. The Grayscale XRP Trust operates similarly to the firm’s other single-asset investment vehicles and is aimed at institutional and individual investors. Although this is not an exchange-traded fund (ETF), the trust’s creation is seen as a potential stepping stone towards the eventual approval of an XRP ETF by the US Securities and Exchange Commission (SEC).
Grayscale has outlined a four-phase product life cycle for the XRP Trust, which could ultimately lead to the trust being converted into an ETF. While a trust faces fewer regulatory hurdles, an ETF requires SEC approval and is aimed at retail investors. The potential for an XRP ETF has generated interest, particularly given XRP’s role in cross-border payments and its transformative potential for the global financial system.
Grayscale’s head of product and research, Rayhaneh Sharif-Askary, highlighted XRP’s real-world applications, specifically in making international payments more efficient. The XRP Ledger, a decentralised blockchain, plays a key role in enabling fast and cost-effective cross-border transactions, which Grayscale believes could revolutionise outdated financial systems.
