Cryptocurrencies Archives | Page 38 of 165

Sanctions proposed on Bukele amid El Salvador’s crypto controversy

A group of US Democratic senators has proposed legislation seeking sanctions against El Salvador’s President Nayib Bukele and members of his government. The El Salvador Accountability Act targets alleged human rights abuses and Bitcoin misuse during the state of exception.

The bill calls for measures including freezing US-held assets, visa restrictions, and suspending financial aid to Bukele, his cabinet, and other government-linked individuals. It requires the US president to give annual updates on sanctions and a detailed report on El Salvador’s crypto activities.

The report must detail public Bitcoin spending, exchanges used, wallet addresses, and potential gaps enabling corruption or sanctions evasion.

President Bukele rejected the sanctions proposal, mocking the lawmakers on social media and pointing to his growing cooperation with US President Donald Trump. Their collaboration includes efforts against gangs and shared support for crypto initiatives.

Bukele’s dismissal underscores tensions between US lawmakers and El Salvador’s leadership amid ongoing geopolitical and financial debates.

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Greece seizes crypto tied to record Bybit hack

Greek authorities have successfully seized digital assets linked to a major international cybercrime case, marking the country’s first-ever recovery of cryptocurrency. The operation followed a months-long investigation into suspicious blockchain activity in collaboration with blockchain analytics firm Chainalysis.

The recovered funds are part of a record-breaking $1.5 billion theft from crypto exchange Bybit earlier this year. In February, hackers exploited a vulnerability in one of the platform’s Ethereum wallets, transferring the entire contents to an unknown address.

The incident, considered one of the largest crypto heists in history, has been widely attributed to North Korea’s Lazarus Group.

A suspect wallet was identified and frozen, cutting off access to the assets and transferring the case to prosecutors for further legal proceedings.

Officials hailed the move as a significant advance in combating digital crime. Analysts say the operation shows how blockchain transparency and forensic tools, combined with international cooperation, can disrupt even the most complex laundering networks.

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Bitcoin hits new all-time high as institutional demand surges

Bitcoin has broken past its previous record, trading above $111,970 in a move that defied technical indicators and widespread scepticism. The rally, fuelled by institutional flows and growing corporate adoption, forced short sellers to capitulate after building up $35 billion in open interest.

Bitcoin’s latest breakout is driven by spot ETF inflows and corporate adoption, rather than retail speculation or halving narratives. In the second quarter alone, ETF providers absorbed 245,000 BTC—around 1% of the total supply—tightening liquidity and amplifying price pressure.

Analysts now view this as a structural shift where institutional demand outpaces miner issuance by a factor of three.

Stronger-than-expected US job data and fading hopes for a July rate cut failed to dent the crypto rally. The broader equity market also gained, with the S&P 500, Nasdaq, and Dow posting solid advances.

Bitcoin’s parallel rise suggests it is no longer merely a high-risk asset but increasingly seen as a liquidity hedge in uncertain conditions.

Geopolitical risks are quietly building. The Trump administration introduced new tariffs against six countries, potentially escalating global trade tensions. Historically, such moves have weighed on risk assets, but Bitcoin has remained resilient.

Analysts warn, however, that the situation could change by August if the tariffs are implemented.

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Countries build state-level Bitcoin reserves worldwide

Bitcoin is no longer the preserve of tech-savvy investors and crypto enthusiasts. As of mid-2025, more than 460,000 BTC — around 2.3% of the total supply — is held by governments worldwide, according to blockchain data and legal disclosures.

The shift has elevated Bitcoin’s role in global finance, making it a strategic asset for nation-states.

The United States leads the pack with nearly 200,000 BTC, acquired mainly through criminal seizures. Unlike previous administrations, President Trump’s government has moved to consolidate these funds under a federal Strategic Bitcoin Reserve.

China follows closely behind, having confiscated 190,000 BTC from the PlusToken scam, though the fate of much of that stash remains unclear.

Beyond the prominent players, countries like Bhutan have quietly amassed impressive reserves. Using hydropower for mining, Bhutan has reportedly gathered up to 13,000 BTC — worth over $1 billion — equating to more than a third of its GDP.

Meanwhile, the UK holds 61,000 BTC from a money-laundering case, Ukraine used Bitcoin donations during wartime, and Iran requires licensed miners to send their BTC directly to the central bank.

While some nations broadcast their Bitcoin strategy, others operate in silence. From El Salvador’s legal tender experiment to rumours of holdings in the UAE and Bulgaria, the landscape is varied and opaque. Still, one trend is clear: state-level Bitcoin adoption is no longer theoretical.

Governments are actively shaping the future of decentralised money — sometimes loudly, often quietly, but always strategically.

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Turkey sets sights on DeFi platforms after PancakeSwap ban

Turkey’s recent decision to block PancakeSwap has raised concerns that more decentralised finance (DeFi) services could soon face similar enforcement. The move came after the Istanbul Blockchain Week, where regulators outlined a stricter framework for overseeing crypto platforms.

Updated guidelines require DEXs and non-custodial wallets to follow the same rules as centralised platforms if they promote services to Turkish citizens. According to Ali İhsan Güngör of the Capital Markets Board, institutions promoting to users in Turkey fall within the country’s regulatory scope.

Although capital movement remains unrestricted, regulators have begun blocking access to DeFi platforms that directly advertise or promote within the country.

Turkish authorities ordered internet service providers to block access to PancakeSwap and 46 other websites. Mobile apps and social media accounts tied to those platforms were also affected.

PancakeSwap, a decentralised protocol with no registered presence in Turkey, cannot apply for a crypto service provider licence, making it vulnerable under the new enforcement rules.

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Tether defends gold reserves as markets and scrutiny rise

Tether has revealed it holds around $8 billion worth of gold in a Swiss vault, placing it among the largest private holders of the precious metal globally.

According to CEO Paolo Ardoino, the El Salvador-based firm owns almost an 80-tonne stockpile outright, describing the site as ‘the most secure vault in the world’.

Gold accounts for nearly 5% of Tether’s $112 billion reserve portfolio, matching UBS Group’s reported gold exposure. While self-custody helps reduce operational fees, regulatory frameworks in the US and EU may soon force stablecoin issuers to exclude commodities from their reserves.

If enforced, Tether could be required to liquidate its bullion unless the gold backs its separate token, XAUT.

XAUT currently circulates against 7.7 tonnes of gold worth approximately $819 million. Although far below significant exchange-traded funds, its physical redemption model adds a layer of investor confidence.

Ardoino suggested demand for bullion-linked crypto could rise if investors grow wary of US fiscal health or seek to avoid deposit risk.

Gold prices have surged 25% in 2025 amid trade frictions and geopolitical concerns. As BRICS banks buy more gold, Tether blends bullion with blockchain but must show regulators it won’t harm USDT’s liquidity in times of stress.

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Fraudsters exploit dormant Bitcoin addresses to steal data

Analysts at BitMEX Research have revealed a new scam aimed at early Bitcoin holders, particularly those with dormant wallets dating back to 2011. Attackers use Bitcoin’s OP_Return field to send false transactions and messages to deceive owners into sharing sensitive data.

One high-profile victim is the ‘1Feex’ wallet, known for holding around 80,000 BTC stolen from the Mt. Gox hack.

Scammers made a fake Salomon Brothers site claiming that wallets are abandoned unless owners prove ownership with signed messages or personal documents. The site bears no genuine link to the original financial firm or its former executives.

Crypto community members recommend a safer approach: moving a small amount of Bitcoin to demonstrate wallet activity instead of risking the full balance. BitMEX urges users to avoid interacting with fake sites or sharing personal data.

The scam exemplifies growing sophistication in crypto fraud, with losses exceeding $2.1 billion in just the first half of 2025.

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New Zealand bans crypto ATMs and limits cash transfers

New Zealand is introducing sweeping reforms to tackle money laundering and criminal finance by banning crypto ATMs and capping international cash transfers at $5,000. The new bill expands enforcement powers and lets the Financial Intelligence Unit gather more data on persons of interest.

The $5,000 transfer limit aims to block criminals from moving funds offshore via cash while permitting legitimate transfers through electronic banking channels. A recent report found that criminals use crypto ATMs to purchase cryptocurrency and quickly transfer it overseas to finance drugs and scams.

Industry figures broadly welcome the crackdown, viewing it as necessary to mature the sector and protect consumers. Experts note that everyday users favour reputable exchanges over crypto ATMs, which often carry high fees and attract illicit use.

Internationally, New Zealand’s actions reflect a broader trend. Australia’s AUSTRAC and US cities like Spokane have also tightened crypto ATM regulations following alarming fraud and money laundering reports.

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Lithuania questions legality of Robinhood’s new tokens

Robinhood’s new blockchain tokens, which are tied to firms like SpaceX and OpenAI, are under EU scrutiny, with Lithuania’s central bank reviewing whether the product meets financial rules.

The tokens, introduced on 30 July, allow retail investors to gain exposure to high-profile private firms through digital assets. Although Robinhood offered a promotional giveaway to attract EU users, questions quickly arose over the product’s legal classification and how it was marketed to the public.

OpenAI has publicly stated it has no affiliation with Robinhood and has not authorised share transfers. Robinhood responded by confirming that the tokens do not represent actual equity but provide access to the value of private firms via non-equity instruments.

Regulators are now assessing whether the product meets compliance standards and whether investor information has been presented clearly and accurately. The central bank has requested further details before issuing a formal judgement.

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Tether and Binance left out of EU crypto approval list

More than 50 crypto firms are now fully licensed under the European Union’s MiCA framework, six months after it came into effect. The list names 14 stablecoin issuers and 39 service providers, all approved to operate across the EU’s 30 member states.

Leading platforms such as Coinbase, Kraken, Bitstamp, and N26 can now ‘passport’ their services across the bloc without seeking separate national approvals.

Tether and Binance remain absent from the approved list. Tether’s lack of a MiCA licence has already triggered delistings on major platforms, while Binance continues to face regulatory scrutiny in multiple jurisdictions.

In contrast, stablecoins issued by Circle, Société Générale-Forge, and Membrane Finance have gained approval, most of which are euro-denominated.

No company has yet registered to issue asset-referenced tokens (ARTs), reflecting low market demand under current compliance costs. Meanwhile, over 35 firms have been marked non-compliant, with Italy’s CONSOB actively pursuing enforcement.

As firms race to meet rising regulatory standards, a fresh update on MiCA licensing is due in September.

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