The cryptocurrency market saw a massive $300 billion boost after Donald Trump reaffirmed his commitment to making the US the world’s crypto leader. His latest executive order establishes a national crypto reserve, set to include Bitcoin, Ethereum, XRP, Solana, and Cardano.
Bitcoin surged past $93,000, jumping 8% in a day, while Ethereum climbed 11%. Altcoins rallied even harder—Cardano skyrocketed 66%, Solana rose 20%, and XRP soared 28%, overtaking USDT to become the third-largest cryptocurrency. Despite the market’s enthusiasm, the Crypto Fear & Greed Index remains in the ‘Fear’ zone at 33.
Trump’s plan signals a shift from simply holding Bitcoin to actively building a strategic reserve. While some welcome the move as a push for US dominance in digital assets, others argue government control could destabilise the dollar or become subject to political shifts.
Investors are now eyeing the upcoming crypto summit, where key policy details will be revealed. With expectations high, the market awaits clarity on regulations and the long-term impact of the reserve.
For more information on these topics, visit diplomacy.edu.
Colombian lawmakers have launched a fresh bid to regulate the nation’s growing cryptocurrency industry, aiming to provide legal clarity and consumer protection. The proposed bill, backed by Senator Gustavo Moreno and Congress Representative Julián López, seeks to create rules that safeguard users while encouraging investment. Lawmakers warn that the current lack of regulation leaves the sector vulnerable to fraud, financial crime, and uncertainty.
With over five million Colombians using crypto and transactions reaching $6.7 billion in 2024, concerns over scams and illicit activities have intensified. The Superintendencia Financiera de Colombia has been working on crypto-related pilots since 2021, but no solid regulatory framework has emerged. The bill proposes a licensing system for Virtual Asset Service Providers (VASPs), ensuring compliance with anti-money laundering and counter-terrorist financing laws.
Supporters argue that clear regulations will boost investment and integrate crypto into the national financial system. However, critics caution against excessive restrictions that could push businesses abroad. Some investors stress the importance of fair taxation, warning that heavy tax burdens could discourage crypto adoption rather than support its growth.
The bill, covering areas such as consumer protection, marketing rules, education, and taxation, aims to create a balanced approach. While debates continue, Colombia faces a crucial decision—whether to foster innovation or risk falling further behind in the global crypto market.
For more information on these topics, visit diplomacy.edu.
The hacker behind the $1.4 billion Bybit exploit has already laundered more than half of the stolen Ethereum, primarily swapping it for Bitcoin via THORChain. Blockchain analysts report that over $614 million has been moved in just five days, pushing THORChain’s daily transaction volumes from an average of $80 million to an astonishing $580 million. On 26 February alone, swaps reached a record $859 million.
The US Federal Bureau of Investigation has officially linked the attack to North Korean state-sponsored hackers, identifying it as part of a wider cybercrime operation. Security experts confirmed that Bybit’s core infrastructure remained intact, with the breach traced back to a compromised developer machine that injected malicious code into the Gnosis Safe UI. While the attack targeted Bybit’s cold wallet, the platform’s smart contracts were not affected.
In response, Bybit has launched a dedicated website to track the movement of stolen funds and is offering a bounty to exchanges that assist in their recovery. The incident underscores a growing trend where hackers are shifting focus from exchanges themselves to the infrastructure providers that support them.
For more information on these topics, visit diplomacy.edu.
Texas is moving closer to establishing a state-managed Bitcoin reserve after the Senate Banking Committee unanimously backed a new bill on 27 February. The proposed legislation, known as Senate Bill 21 (SB-21), would allow the Texas Comptroller to acquire and manage Bitcoin and other cryptocurrencies as part of the state’s financial reserves.
Supporters argue that adding Bitcoin to state holdings could shield Texas against inflation and economic instability. The bill was originally focused solely on Bitcoin but was later amended to include other digital assets, bringing it in line with a recent federal push to assess the feasibility of a national digital asset reserve. Advocates emphasise Bitcoin’s transparency and resilience as key advantages for public financial management.
Texas joins a growing number of states exploring similar initiatives, with over 20 introducing proposals to invest public funds in Bitcoin and other cryptocurrencies. While states such as Oklahoma and Arizona have moved forward with similar bills, others like Montana and Wyoming have rejected the idea due to concerns over volatility. If approved, Texas’ move could set a precedent for wider government adoption of Bitcoin in financial strategies.
For more information on these topics, visit diplomacy.edu.
North Korean hackers have recorded the largest cryptocurrency theft, stealing approximately $1.5bn from the Dubai-based exchange ByBit. According to the FBI, the stolen funds have already been converted into Bitcoin and spread across thousands of blockchain addresses. The attack highlights North Korea’s growing expertise in cybercrime, with proceeds believed to be funding its nuclear weapons programme.
The notorious Lazarus Group, linked to the regime, has been responsible for several high-profile hacks, including the theft of over $1.3bn in cryptocurrency last year. Experts say the group employs advanced malware and social engineering tactics to breach exchanges and launder stolen assets into fiat currency. These funds are critical for bypassing international sanctions and financing North Korea’s military ambitions.
Beyond cybercrime, Pyongyang has deepened its ties with Russia, allegedly supplying troops and weapons in exchange for financial backing and technological expertise. Meanwhile, the regime has recently reopened its borders to a limited number of international tourists, aiming to generate much-needed foreign income. As global scrutiny intensifies, concerns are growing over North Korea’s increasing reliance on illicit activities to prop up its economy and expand its military power.
For more information on these topics, visit diplomacy.edu.
Many young Indians are turning to cryptocurrency trading to supplement their income, as slow wage growth and limited job opportunities push them towards alternative financial avenues. Many, like Ashish Nagose, a 28-year-old flower shop owner from Nagpur, are dedicating time to learning the intricacies of crypto trading. Previously involved in stock options trading, Nagose switched to digital assets after tighter regulations made equity derivatives trading less accessible.
The surge in interest has led to a sharp rise in trading volumes, with India’s four largest crypto exchanges seeing a twofold increase to $1.9 billion in late 2024. Experts attribute this momentum to global factors, including optimism surrounding former US President Donald Trump’s pro-crypto stance, alongside growing interest in smaller Indian cities. Non-metro areas such as Jaipur, Lucknow, and Pune have emerged as key centres of crypto activity, with projections suggesting India’s digital assets market could expand from $2.5 billion in 2024 to over $15 billion by 2035.
Despite the enthusiasm, Indian authorities remain cautious. The Reserve Bank of India (RBI) has raised concerns about the risks of widespread crypto adoption, and stringent tax policies continue to pose challenges for traders. While domestic exchanges have regained momentum following a ban on offshore platforms, the government has upheld its strict tax regulations, rejecting calls to lower the tax-deducted-at-source (TDS) rate. However, this has not deterred young investors like Sagar Neware, a 25-year-old mechanical engineer, who hopes crypto trading will enable him to revive his father’s business.
With rising crypto education demand, training centres are thriving across the country. Institutions such as Thoughts Magic Trading Academy in Nagpur claim to have trained thousands of students eager to navigate the market. While regulatory uncertainty lingers, India’s crypto landscape evolves rapidly, driven by a generation determined to carve out new financial opportunities.
For more information on these topics, visit diplomacy.edu.
The European Union has introduced its 16th package of sanctions against Russia, marking three years since the Ukraine conflict began. The measures include financial restrictions, trade bans, and stricter oversight of digital assets linked to Russian entities. A total of 83 new listings have been added, targeting individuals and organisations accused of undermining Ukraine’s sovereignty, including those involved in cryptocurrency transactions used to bypass previous sanctions.
These new restrictions extend to Belarus, adding trade controls and tighter regulations on crypto wallets and financial services. The EU has also blacklisted 74 vessels accused of circumventing oil price caps and imposed stricter controls on banks using Russia’s SPFS messaging system. Further trade limitations target companies in China, India, Kazakhstan, Türkiye, and other nations allegedly supporting Russia’s defence sector.
Beyond direct economic impact, these sanctions highlight the growing role of digital assets in geopolitical conflicts. While regulators push for greater oversight, Russia continues exploring alternative financial systems, including its digital rouble. The effectiveness of these measures remains uncertain, as decentralised networks and emerging payment systems present ongoing challenges for policymakers.
For more information on these topics, visit diplomacy.edu.
Crypto exchange Bybit has seen a dramatic drop in reserves, losing over $6 billion in just two days. The mass withdrawals came after a $1.4 billion exploit on 21 February, sparking panic among users. Data shows that Bybit processed $2.5 billion in withdrawals on 22 February and another $3.26 billion the following day, bringing its total assets down from $16.9 billion to $10.8 billion.
The biggest outflows were in stablecoins and Bitcoin, with users withdrawing more than $2.3 billion in USDT and over $1.5 billion in BTC. Some of these funds were reportedly transferred to Binance and over-the-counter (OTC) platforms, raising speculation over whether Bybit sold Bitcoin or used it as collateral to cover Ethereum withdrawals.
Despite the turbulence, the exchange managed to process all withdrawals without major disruptions. Bybit’s CEO, Ben Zhou, reassured users that the platform had resolved its Ethereum shortfall and maintained full backing of customer assets on a 1:1 basis. However, the incident has reignited concerns about security and liquidity in the crypto industry.
For more information on these topics, visit diplomacy.edu.
Russia’s Energy Ministry claims that banning crypto mining in parts of Siberia has eased pressure on the region’s power grid. Officials reported a reduction of over 300 MW in electricity consumption since the restrictions took effect on 1 January 2025. The ministry insists this has prevented blackouts during peak winter months and has announced plans for ongoing meetings to assess the policy’s impact.
Despite government assurances, local reports suggest crypto mining remains strong in Siberia. Power provider Irkutskenergosbyt noted that household electricity usage increased by 1% in January compared to the previous year, despite milder winter temperatures. Industry analysts also estimate that Russia’s Bitcoin mining sector expanded by 7% in 2024, indicating continued activity.
Some experts argue the ban does little to curb mining operations, with many industrial-scale enterprises still running in parts of Irkutsk. While Bitcoin remains the dominant cryptocurrency for miners, there is also significant interest in Litecoin, Kaspa, Ethereum, and Monero. Meanwhile, the Energy Ministry is pushing for a national register of mining equipment to track legal operations and tackle illegal activity.
As debate over the effectiveness of the restrictions continues, Russian energy firms have approved plans that could see power allocated to mining increase significantly in the coming years. Experts remain divided on whether stricter regulations will stifle the industry or simply drive it further underground.
For more information on these topics, visit diplomacy.edu.
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.
For more information on these topics, visit diplomacy.edu.
