Russia’s central bank has announced plans to develop a new platform to curb illegal financial activities, including unregulated crypto-to-fiat over-the-counter services. Collaborating with Rosfinmonitoring and financial institutions, the initiative aims to track and block suspicious transactions while preventing misuse of banking systems.
The system focuses on individuals known as ‘droppers,’ who exploit bank accounts for illicit purposes such as money laundering, drug trade, and unregulated cryptocurrency exchanges. Currently, monitoring is limited to individual banks, making it challenging to prevent offenders from opening accounts elsewhere. A centralised database is expected to improve information sharing across all financial institutions.
The Bank of Russia has stressed the need for a solution that enforces regulations without causing unnecessary harm to law-abiding citizens. While the project is still in development, no official timeline for its launch has been provided.
Binance founder Changpeng Zhao has stirred a debate about cryptocurrency adoption in the UAE by claiming the nation holds $40 billion in Bitcoin. This figure, shared in a tweet, quickly captured the attention of industry professionals, including crypto lawyer Irina Heaver, who questioned the claim’s validity, suggesting it may be AI-generated content lacking credible evidence. Zhao acknowledged the uncertainty but suggested the number could be plausible, given the region’s wealth and the growing number of high-net-worth individuals.
The conversation also highlighted the UAE’s expanding cryptocurrency ecosystem, especially in Dubai. Zhao reflected on the city’s rapid transformation from hosting only a few crypto firms in 2021 to now becoming a hub for thousands of blockchain-based businesses. Dubai’s favourable regulatory frameworks, such as the Dubai Multi Commodities Center’s Crypto Center, have been key in attracting global crypto companies.
While the exact value of the UAE’s Bitcoin holdings remains unverified, the ongoing debate underscores the country’s increasing prominence in the cryptocurrency space.
Tether, the company behind the $140 billion cryptocurrency USDT, is making strides in artificial intelligence with plans to launch its own AI platform by the end of March 2025. CEO Paolo Ardoino confirmed the timeline in a recent post, marking a significant step in Tether’s ongoing diversification.
Under Ardoino’s leadership, Tether has broadened its focus, venturing into energy, payments, telecommunications, AI, and commodities trade financing. The company restructured its corporate operations earlier this year to support this shift, further reflecting its ambitions beyond the stablecoin market.
Last year’s acquisition of a stake in AI and cloud computing firm Northern Data hinted at Tether’s expanding interests in the AI sector. While details about the upcoming platform remain scarce, Ardoino emphasised Tether’s commitment to building technology that promotes freedom, independence, and resilience.
US President-elect Donald Trump announced on Sunday that Bo Hines, a former congressional candidate from North Carolina, will serve as executive director of the Presidential Council of Advisers for Digital Assets. The council, a newly formed body under Trump’s administration, will focus on shaping US policy on cryptocurrencies and digital assets. It will be chaired by David Sacks, a prominent venture capitalist and tech entrepreneur who has been dubbed the incoming administration’s ‘crypto czar.’
Hines, a political newcomer who gained attention during his congressional campaign, has been a vocal supporter of blockchain technology and its potential to revolutionise finance. In his new role, Hines will work closely with Sacks to advise the administration on regulatory frameworks, market opportunities, and the integration of digital assets into the broader economy. The appointment signals a potential shift in federal policy toward a more active and structured approach to managing the growing influence of cryptocurrencies.
David Sacks, known for his extensive experience in the tech sector and his advocacy for decentralised finance, is expected to play a leading role in the council’s direction. His appointment reflects the administration’s interest in fostering innovation while addressing concerns about security, fraud, and market stability. Together, Sacks and Hines will oversee a team of experts tasked with navigating the complexities of the digital asset landscape, aiming to position the United States as a global leader in the rapidly evolving sector.
Trump’s creation of the council underscores the importance of cryptocurrencies and blockchain in the modern economy. As the sector continues to expand, the administration’s policies could have far-reaching implications for innovation, financial regulation, and the global competitiveness of the US digital asset industry.
El Salvador has added $1 million worth of Bitcoin to its strategic reserve, purchasing 11 BTC shortly after securing a $1.4 billion financing deal with the International Monetary Fund (IMF). This latest acquisition brings the nation’s holdings to nearly 5,981 BTC, valued at around $580 million. The move diverges from its previous ‘one Bitcoin a day’ policy announced by President Nayib Bukele last year.
The IMF agreement, however, comes with stipulations that aim to limit the government’s involvement in cryptocurrency activities. El Salvador agreed to confine its Bitcoin transactions, make private sector acceptance voluntary, and ensure taxes can only be paid in US dollars. Additionally, the government plans to sell or phase out the Chivo crypto wallet, with private wallets expected to take over its role in the market.
Despite these restrictions, the National Bitcoin Office reaffirmed its commitment to Bitcoin as a core part of the country’s strategy, hinting at potential accelerated purchases in the future. Director Stacy Herbert assured citizens that Bitcoin would remain legal tender, even as the IMF deal awaits final approval. This marks the culmination of years of negotiations, underscoring the challenges posed by Bukele’s ambitious Bitcoin policies.
Ethereum’s price dropped sharply this week, falling to a key support level of $3,540, marking a 10% decline from its recent peak. The pullback comes in the wake of the Federal Reserve’s hawkish interest rate announcement, which also affected other cryptocurrencies like Bitcoin and Solana. The decline, however, does not change Ethereum’s strong fundamentals, as it continues to attract significant institutional interest, particularly through Ethereum Exchange-Traded Funds (ETFs), which have seen 18 consecutive days of inflows, totalling over $2.46 billion.
Despite the drop, Ethereum remains a dominant player in the blockchain space. The amount of staked ETH continues to rise, now surpassing 54.7 million tokens, with more than 206,000 unique stakers. This reflects long-term optimism from investors who are holding onto their positions. Ethereum’s Decentralized Finance (DeFi) ecosystem is also growing, with total value locked surpassing $73.7 billion, far ahead of competitors like Solana, Base, and Arbitrum.
The price retreat follows the Federal Reserve’s decision to cut its 2025 interest rate forecast, from four cuts to just two. This hawkish tone has had a cooling effect on cryptocurrencies and other risky assets, which typically perform better under a more dovish stance. Ethereum’s price chart shows a bearish double-top pattern, indicating potential further declines if the $3,526 support is broken. However, if Ethereum can break past the $4,090 resistance level, it may see a stronger recovery.
The Hong Kong Securities and Futures Commission (SFC) has granted conditional licences to four virtual asset trading platforms, including Accumulus GBA Technology, DFX Labs, Hong Kong Digital Asset EX, and Thousand Whales Technology. However, the platforms must meet certain regulatory conditions before they can begin fully operating.
These licences follow the SFC’s risk-based inspections, which were introduced in June to assess compliance with the region’s virtual asset regulations. The inspections are aimed at ensuring investor protection while promoting growth in the cryptocurrency sector.
The platforms must undergo third-party vulnerability assessments and penetration tests to address any potential security risks. The SFC will oversee the process, ensuring the platforms meet all necessary requirements before expanding their operations.
The SFC has also issued a roadmap to streamline the licensing process, providing clear guidance to ensure that licensed platforms maintain the highest security and compliance standards, safeguarding user funds and preventing fraud.
Bitcoin and the broader crypto market experienced a sell-off following the Federal Reserve’s announcement of a 25 basis point rate cut to its benchmark policy rate. While the rate cut was anticipated by many traders, the market reacted negatively to Fed chair Jerome Powell’s indication that fewer rate cuts than initially expected could take place in 2025. Following the announcement, Bitcoin’s price dropped by 4.6%, falling to $101,300, and Ether saw a 5.96% decline, dropping to $3,600.
Powell’s comments about only two rate cuts in 2025 and an increased inflation outlook raised concerns among market participants. The Fed’s revised inflation forecast, which now expects a 2.5% rate in 2025, also contributed to a more cautious sentiment. Some traders view these shifts in perspective as a sign of a more hawkish stance from the central bank, particularly with the potential policy changes under the incoming administration.
Crypto analysts noted that the drop in Bitcoin’s price cleared out both long and short positions, with BTC falling into a bid zone between $100,000 and $98,000. The key for Bitcoin to maintain upward momentum will be reclaiming the $100,000 to $101,400 zone before the daily candlestick closes. The recovery is seen as crucial to restore market confidence.
The US Treasury’s Office of Foreign Assets Control (OFAC) has imposed sanctions on two individuals and a company based in the United Arab Emirates (UAE) for allegedly aiding North Korea’s use of digital assets in illegal activities.
The sanctions target Lu Huaying and Zhang Jian, along with Green Alpine Trading, LLC, a front company linked to a broader scheme of money laundering. These actions aim to disrupt a network that, according to US authorities, funnels millions of dollars to North Korea’s nuclear weapons and missile programs.
North Korea has a history of using digital assets and cybercrimes to fund its military efforts, employing IT workers and hackers to generate funds that are often obscured through complex laundering operations. The sanctions focus on Sim Hyon Sop, a representative of North Korea’s state-run Korea Kwangson Banking Corporation, who has been previously sanctioned. Sim is accused of using a mix of cryptocurrency cash-outs and money mules to move funds back to the regime for its military projects.
Under the new sanctions, any property owned by the designated individuals or entities in the US is blocked, and US citizens and companies are prohibited from engaging in transactions with them. Non-compliance could lead to further enforcement actions, even against those outside the US. The move reflects a coordinated effort with the UAE to combat North Korea’s destabilizing activities. It highlights the importance of international cooperation in tackling illicit financial networks that exploit new technologies, including cryptocurrencies.
European Parliament Member from France, Sarah Knafo, has called on the EU to embrace Bitcoin by establishing national strategic reserves and rejecting the European Central Bank’s (ECB) proposal for a digital euro. In a video shared on her X account, Knafo advocated for European nations to develop their crypto-mining industries and cease increasing taxes on cryptocurrency holders. She highlighted Bitcoin as a means to secure freedom and protect citizens from the overreach of centralised financial systems.
Knafo, citing the example of El Salvador‘s adoption of cryptocurrency and the US plans for a Bitcoin reserve, criticised the EU for clinging to outdated financial systems that are prone to inflation and crises. She warned that the ECB’s digital euro could lead to an over-centralised system, where officials could control transactions and potentially exclude individuals from the banking system for expressing dissenting opinions.
Knafo also pointed to the growing global trend of nations considering Bitcoin reserves to safeguard their financial stability, with countries like Japan, Russia, and Brazil exploring similar initiatives. She argued that Bitcoin could serve as a more reliable financial system, offering long-term protection from economic mismanagement.
The call for a Bitcoin reserve reflects the increasing global recognition of decentralised finance as a potential solution to financial instability, with various countries looking to Bitcoin as a safeguard for national funds.
