According to Bitcoin exchange River, Microsoft’s latest quantum computing chip, Majorana 1, could accelerate the timeline for making Bitcoin resistant to quantum threats. While the risk of a quantum attack remains distant, experts warn that preparations must begin now. The chip, launched on 19 February, is part of a growing race in quantum technology, with Google’s Willow chip also making headlines in December.
River suggests that if quantum computers reach one million qubits by 2027-2029, they could crack Bitcoin addresses in long-range attacks. Though some argue such a scenario is still decades away, River insists early action is key. The potential threat has reignited discussions on BIP-360, a proposed upgrade to strengthen Bitcoin’s defences against future quantum advancements.
Critics remain sceptical, arguing that quantum computing is still in its infancy, with major technical challenges to overcome. Some believe traditional banking systems, which hold far greater assets than Bitcoin, would be targeted first. Others see quantum developments as an opportunity, suggesting they could help fortify Bitcoin’s security rather than weaken it.
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The European Central Bank is stepping up its efforts to build a blockchain-based payments system, a move which could pave the way for a digital euro. Announced on Thursday, the initiative will unfold in two phases. The first phase will involve developing a platform for settling transactions in central bank money through a link with the TARGET system, which already facilitates payments across the eurozone.
The ECB plans to explore a more integrated, long-term blockchain solution for processing central bank money transactions in the second phase. Executive Board member Piero Cipollone described the project as a step towards improving European financial markets through innovation. The ECB believes this approach could strengthen Europe’s monetary system while reducing dependence on non-European payment providers.
The push for a digital euro aligns with the ECB’s broader goal of unifying Europe’s capital markets. Since 2021, the bank has been studying how to design and distribute a central bank digital currency (CBDC). As it refines its blockchain-based system, the ECB will consult with public and private stakeholders to ensure it meets the needs of European citizens. The full timeline for implementation will be announced at a later stage.
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KuCoin’s European subsidiary has applied for a Markets in Crypto-Assets (MiCA) licence in Austria, aiming to expand its services across the European Economic Area. The move aligns with the exchange’s efforts to comply with EU regulations and strengthen its position in the European market. If approved, KuCoin will operate as a regulated crypto-asset service provider, offering secure and compliant digital asset services.
The company has chosen Vienna as its regional headquarters, citing Austria’s strong regulatory framework and access to skilled professionals in the crypto and fintech sectors. KuCoin CEO BC Wong called the MiCA application a major milestone in the company’s global strategy, emphasising its commitment to compliance and transparency. Two industry veterans, Oliver Stauber and Christian Niedermüller, have been appointed to oversee KuCoin EU’s operations.
Austria has emerged as a key player in Europe’s evolving crypto landscape, attracting major exchanges due to its structured regulatory approach. The MiCA framework, set to be fully implemented by the end of 2024, provides a single licensing system for crypto firms to operate across all EEA member states. With several international exchanges securing licences, KuCoin’s application is part of a broader trend as crypto companies race to establish a foothold in the European market.
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Nigeria has filed a lawsuit against cryptocurrency giant Binance, demanding $79.5 billion in damages for alleged economic losses and $2 billion in unpaid taxes. The case, brought by Nigeria’s Federal Inland Revenue Service (FIRS), claims that Binance’s unregistered operations in the country have negatively impacted its currency and evaded significant tax obligations.
The lawsuit also seeks penalties and interest on the unpaid taxes, pushing the total amount even higher.
Authorities allege that Binance played a role in destabilising Nigeria‘s naira by becoming a primary platform for local currency trading. In 2024, two Binance executives were detained as part of a broader crackdown on cryptocurrency platforms.
The FIRS argues that Binance holds a “significant economic presence” in Nigeria, making it liable for corporate income tax for 2022 and 2023, plus a 10% penalty and a 26.75% interest rate on unpaid sums.
Binance, which has stopped trading in the naira and is contesting the charges, is also facing four counts of tax evasion, including non-payment of value-added tax and aiding users in tax avoidance. Separate money laundering charges have been filed by Nigeria’s anti-corruption agency, which Binance has denied.
The exchange previously stated that it is working with Nigerian authorities to address potential historic tax issues.
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The United Arab Emirates saw a sharp rise in cryptocurrency app downloads in 2024, with a total of 15 million installations recorded. According to data from AppsFlyer, this marked a 41% increase compared to the previous year, with the biggest surge occurring in December when downloads hit 2.8 million.
Analysts attribute this spike to several factors, including growing interest in digital assets and global political shifts. The US presidential election in November, won by Donald Trump, was seen as a boost for the crypto industry due to his pro-crypto stance. His launch of a meme coin in January further fuelled global interest, drawing new investors into the market.
While adoption continues to grow, retaining users has proven to be a challenge. AppsFlyer reported that aggressive marketing campaigns contributed to 60% of downloads, yet one in five crypto apps was uninstalled within 30 days. Despite this, January saw another record high, with 3.5 million downloads in the UAE alone, setting the stage for what could be a record-breaking year for the industry.
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Kraken is gearing up to re-enter the Indian market after being banned in 2024 for breaching anti-money laundering regulations. The exchange is working closely with local authorities to obtain the necessary approvals and has appointed Vishesh Khurana, a prominent industry figure, to lead its expansion efforts. Kraken’s co-CEO, Arjun Sethi, is also expected to play a key role in shaping its strategy in India.
India’s Financial Intelligence Unit blacklisted Kraken and eight other offshore exchanges last year for failing to comply with anti-money laundering laws. To operate legally, exchanges must register with the FIU, adhere to Know-Your-Customer requirements, and report suspicious transactions. Some firms may also need to settle outstanding tax obligations before resuming operations. Binance and KuCoin have already secured approval, raising expectations that Kraken may soon follow suit.
Despite its global success, Kraken is under scrutiny over its ties to Dave Portnoy, the controversial founder of Barstool Sports. Portnoy has been linked to memecoin schemes and accused of market manipulation, with critics arguing his actions undermine trust in the sector. Many in the crypto community have questioned Kraken’s continued support for him, with some openly criticising the exchange for backing someone they believe is harming the industry’s reputation.
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The Czech National Bank (CNB) is exploring Bitcoin’s potential as part of its reserve management strategy, according to Governor Aleš Michl. He emphasised that Bitcoin should not be dismissed outright and urged central bankers to study its underlying technology. While the CNB has not committed to buying Bitcoin, its board has approved an analysis of new asset classes, including the cryptocurrency.
Michl acknowledged Bitcoin’s extreme volatility and clarified that this initiative is not an endorsement but an effort to understand its risks and benefits. If CNB were to allocate even a small portion of its €140 billion reserves to Bitcoin, it could become the first Western central bank to invest in the asset publicly. However, sources suggest that potential exposure would be minimal, likely below 1% of total reserves.
Other European central bankers remain sceptical despite Michl’s openness to financial innovation. German central bank governor Joachim Nagel compared Bitcoin to the 17th-century tulip bubble, calling it neither safe nor liquid. European Central Bank President Christine Lagarde also dismissed Bitcoin as a reserve asset, stating that it fails to meet the ECB’s criteria for stability and transparency. However, Michl remains committed to diversifying CNB’s investments, including increasing its holdings in US stocks.
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The European Union has approved ten stablecoin issuers under its Markets in Crypto-Assets (MiCA) framework, allowing them to operate within the region. Notable names include Circle, Crypto.com, and Societe Generale, with issued stablecoins pegged to both the euro and the US dollar. However, Tether, the issuer of USDT and the world’s largest stablecoin, has been left out, raising concerns over regulatory barriers limiting market participation.
With MiCA rules coming into full effect, some crypto platforms have already delisted USDT for EU users, cutting access to non-compliant stablecoins. Tether criticised these moves as premature and unnecessary, arguing that the regulatory framework remains unclear. Critics warn that the EU’s strict approach may discourage foreign firms from entering the market while pushing local crypto businesses to relocate elsewhere.
Regulatory experts suggest that while the MiCA framework provides clarity, it could come at the cost of innovation and competitiveness. Some argue that excessive red tape is hindering economic growth, with firms possibly looking beyond the EU for more favourable conditions. However, uncertainty in the UK’s crypto regulations makes it unclear where companies might seek new opportunities.
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Three Dutch firms have joined forces to launch EURQ, a blockchain-based digital euro designed to merge decentralised technology with traditional financial systems. The collaboration, involving Quantoz Payments, NPEX, and Dusk, marks the first time a licensed stock exchange will integrate electronic money tokens into its operations. The initiative, fully compliant with European regulations, aims to provide businesses and individuals with a secure, regulated digital euro.
EURQ is built to meet the Markets in Crypto-Assets Regulation (MiCA) requirements, allowing the seamless trading of real-world assets on-chain via the Dusk and NPEX networks. Quantoz Payments will establish a regulatory-compliant framework, enabling faster and more efficient cross-border transactions. The initiative is expected to set a new standard in financial innovation, demonstrating how blockchain can enhance existing monetary systems.
The project’s leaders stress that EURQ is more than just a stablecoin—it is a true digital representation of the euro, fully approved by regulators. They see it as a significant step towards integrating digital assets into mainstream finance, promoting greater transparency and trust within the financial sector. This development highlights the evolving role of blockchain in regulated markets, paving the way for further advancements in digital finance.
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Binance.US has reinstated US dollar deposit and withdrawal services for its customers, ending nearly 18 months of restrictions. This move comes after regulatory clarity, allowing users to link their bank accounts for USD deposits and withdrawals via ACH. The exchange announced on 19 February that the services would gradually be rolled out to eligible customers.
The suspension of USD services in June 2023 followed a lawsuit filed by the US Securities and Exchange Commission (SEC), accusing Binance and its founder Changpeng Zhao of regulatory violations and mishandling user funds. In response, Binance.US had initially shifted towards a ‘crypto-only exchange’ model, removing support for USD transactions.
Binance has faced additional legal challenges, including an Anti-Money Laundering violation settlement in November 2023, resulting in a historic $4.3 billion fine. Despite these hurdles, the return of USD services signals a shift towards regulatory compliance, allowing Binance to rebuild its operations in the US market.
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