Eastern Europe is witnessing a significant increase in cryptocurrency activity, with over $499 billion in digital assets received between July 2023 and June 2024, according to a report from Chainalysis. Notably, decentralized finance (DeFi) activities contributed more than $165 billion to this total, accounting for about one-third of the region’s cryptocurrency transactions. This surge has propelled Eastern Europe to become the fourth-largest cryptocurrency market globally, representing over 11% of total crypto value received worldwide.
Despite the ongoing war and international sanctions, both Russia and Ukraine are leading in crypto transaction values, with Russia receiving over $182 billion and Ukraine over $106 billion. The report indicates that large institutional transfers significantly drive Ukraine’s market growth, as investors seek financial stability amid turmoil. Local exchanges like WhiteBIT remain active, facilitating a surge in professional transfers, which have been influenced by global market volatility and inflation.
In Ukraine, the rise in Bitcoin transactions has been particularly notable, with purchases using the national currency, the hryvnia, exceeding $882 million in the past year. This trend follows a period of high inflation, which peaked at over 26% in December 2022, prompting many Ukrainians to view Bitcoin as a safer alternative for storing value.
Praxis, a forward-thinking tech company, has secured a remarkable $525 million investment to create a groundbreaking city on the Mediterranean coast that merges cryptocurrency and AI. This ambitious project, aimed at crafting a tech-driven society, envisions a seamless blend of nature and advanced technology, where electric vehicles and AI-driven systems enhance urban life.
Founded in 2019 by Dryden Brown and Charlie Callinan, Praxis seeks to establish a utopian city that champions innovation, minimal governance, and a libertarian lifestyle. With plans to use cryptocurrency as the primary currency, the city promises to attract top tech talent and entrepreneurs looking for a fresh start free from traditional constraints. Despite the project’s romantic nature, it has already garnered the interest of over 2,000 prospective residents, with a waiting list of 50,000.
Collaborating with renowned firm Zaha Hadid Architects, Praxis aims to design a city that harmoniously fuses futuristic and traditional styles, ensuring adaptability for future growth. While some critics question the project’s feasibility, the support from prominent investors like Peter Thiel and Balaji Srinivasan underlines the potential for this vision to reshape urban living. With operations projected to begin around 2026, Praxis is set to host its first event in the Dominican Republic to gather leaders and innovators focused on the future of digital sovereignty.
Florida’s Chief Financial Officer, Jimmy Patronis, has proposed a potential shift towards cryptocurrency by encouraging the state’s retirement funds to consider investing in Bitcoin. In a letter to the Florida State Board of Administration (SBA), Patronis highlighted Bitcoin as ‘digital gold’ and a secure hedge that could diversify the state’s portfolio. He has requested the SBA assess the feasibility, risks, and advantages of this investment strategy ahead of the legislative session scheduled for March 2025.
The Florida Retirement System Trust Fund, managed by the SBA and valued at approximately $205 billion, could benefit from such a shift. Patronis suggested that a portion of this fund could be allocated to a “Digital Currency Investment Pilot Program” through the Florida Growth Fund, which has already invested nearly $1 billion in high-growth areas over the past year.
Patronis noted that adding Bitcoin aligns with Florida’s broader opposition to central bank digital currencies (CBDCs) and could offer strong returns for public employees. Should Florida move forward, it would join other states, like Wisconsin and Michigan, which have already included Bitcoin in their retirement fund portfolios.
The founder of cryptocurrency firm MyTrade, Liu Zhou, pleaded guilty in Boston federal court on Wednesday to charges of market manipulation and wire fraud. Zhou, who described himself as the ‘mastermind’ behind the company, entered the plea just weeks after being indicted along with 14 others as part of a groundbreaking FBI investigation dubbed ‘Operation Token Mirrors.’ This operation was notable for involving the creation of a digital token by the FBI itself to uncover fraud in the crypto sector.
Prosecutors revealed that MyTrade was one of three market makers involved in providing illicit trading services to cryptocurrency firms. During the investigation, Zhou agreed to manipulate the market for a token backed by the FBI, known as NexFundAI, which operates on the Ethereum blockchain. As part of a plea agreement, Zhou faces a maximum prison sentence of 1.5 years and must refrain from appealing if sentenced within that timeframe. Additionally, MyTrade must stop facilitating fraudulent trades that had previously manipulated the trading volumes of about 60 cryptocurrencies.
Zhou founded MyTrade in 2021, a British Virgin Islands-registered company that offered services like ‘volume support,’ where automated bots were used to inflate trading volumes. Prosecutors characterised this practice as ‘wash trading,’ which artificially boosts an asset’s trading activity. Zhou’s discussions with NexFundAI promoters included plans for market manipulation and ‘pump and dump’ schemes. Following a meeting on 23 September, Zhou quickly agreed to plead guilty after the FBI approached him. Four others involved in the investigation have also pleaded guilty.
Interest in cryptocurrency has seen new applications for Bitcoin, including its recent adoption in life insurance by Meanwhile, which claims to be the first company to denominate policies in Bitcoin. Rather than using dollars, Meanwhile’s life insurance policies operate entirely in Bitcoin, covering everything from premium payments to policy loans and payouts.
Meanwhile offers whole life insurance, so holders are covered for life. Director of Wealth and Asset Management, Danny Baer, highlights unique tax advantages, particularly thetax-free policy loan option. This allows policyholders to borrow Bitcoin against the policy’s value. As Bitcoin increases in price, the value of the policy and the amount that can be borrowed also rise, and the loaned Bitcoin’s cost basis adjusts to the current rate.
Baer suggests that if Bitcoin’s price skyrockets over time, the ability to borrow against the policy without incurring capital gains tax could be highly beneficial for long-term holders. Meanwhile’s Bitcoin-denominated approach appeals to those looking to invest in an asset with a low time preference, which complements the long-term nature of whole life insurance.
Coinbase users in the UK and US can now fund their accounts instantly using eligible Visa debit cards, following a recent partnership with Visa. This integration, announced on 29 October, allows customers to deposit funds in real-time through the Visa Direct network, providing flexibility for those looking to quickly respond to crypto market changes.
The new feature is set to simplify access to trading funds by reducing traditional wait times associated with crypto funding. With Visa Direct, Coinbase users can now top up their accounts or make crypto purchases almost instantly, while also benefiting from instant cash-outs to bank accounts, minimising delays on major transactions.
The partnership further underscores Visa’s growing involvement in the crypto sector. Earlier in October, Visa also launched its Tokenized Asset Platform, enabling banks to manage fiat-backed tokens, including stablecoins. BBVA, a major Spanish bank, is set to trial this platform on the Ethereum blockchain in 2025, marking a significant step in Visa’s broader blockchain strategy.
A coalition of major Japanese financial institutions has called on the government to prioritise top cryptocurrencies like Bitcoin and Ethereum if it decides to approve exchange-traded funds (ETFs) for digital assets. The group, which includes financial heavyweights such as Mitsubishi UFJ Trust and Banking Corp. and Nomura Securities, submitted recommendations on 25 October for creating crypto-focused ETFs, highlighting the importance of well-established tokens with significant market value.
In their proposal, the group also urged Japanese regulators to review the country’s taxation system, suggesting a distinct tax on crypto-derived earnings. This request reflects the institutions’ belief that Bitcoin and Ethereum’s established presence and stability could appeal to investors interested in building long-term wealth.
Despite these proposals, Japanese regulators remain cautious, with officials citing regulatory concerns and public scepticism following past issues, including the Mt. Gox collapse. Nevertheless, several firms remain optimistic about crypto’s future in Japan, as seen by partnerships like that of SBI Holdings and Franklin Templeton, aimed at expanding crypto offerings. Whilst Japan debates, nations such as the US, Hong Kong, and Australia have already approved spot crypto ETFs, creating a trend Japan may soon follow.
India’s Central Bank Governor, Shaktikanta Das, has voiced strong concerns about the impact of cryptocurrencies on financial stability, reiterating his cautious stance during a recent talk at the Peterson Institute for International Economics’ Macro Week 2024. Das highlighted that cryptocurrencies were originally designed to sidestep traditional financial systems, posing questions about whether governments are prepared to accept privately issued digital currencies with monetary attributes.
Das argued that issuing currency has always been a sovereign role, warning that allowing cryptocurrencies to operate could lead to sections of the economy moving beyond central bank oversight. This shift could destabilise monetary policy, as it would hinder the central bank’s control over money supply, a critical tool for managing inflation and economic cycles.
He further stressed that widespread crypto use could disrupt the existing financial system, potentially leading to chaos as banks lose their control over liquidity. Das’s comments underline India’s scepticism towards cryptocurrency, advocating for careful consideration of the long-term implications on economic stability.
Microsoft shareholders will vote on 10 December on whether the tech company should assess adding Bitcoin to its balance books, following a proposal filed with the US securities regulator. While the National Centre for Public Policy Research (NCPPR) urged Microsoft to consider Bitcoin investments, highlighting MicroStrategy’s profitable strategy and rising corporate adoption, Microsoft’s board advised against it.
The board argued that they already reviewed various assets, including Bitcoin, as part of their investment evaluations. The NCPPR, however, stated that Bitcoin could act as an inflation hedge, suggesting that even a small investment—around 1% of assets—might offer long-term benefits.
Despite interest from some shareholders, Microsoft’s current focus remains on artificial intelligence rather than blockchain or cryptocurrency investments. Though it once accepted Bitcoin payments for its Xbox store, this practice was discontinued in 2018, and Bitcoin investment is viewed as unlikely at present.
The United States and Nigeria have launched the Bilateral Liaison Group on Illicit Finance and Cryptocurrencies to counter cybercrime and misuse of digital assets. Led by the US Department of Justice and Nigerian authorities, this new initiative aims to strengthen both countries’ capabilities in investigating and prosecuting cyber and crypto-related financial crimes as digital finance expands globally.
The group’s formation comes soon after the release of Tigran Gambaryan, Binance’s head of financial crime compliance, who was detained in Nigeria since February on money laundering charges. His release due to health concerns follows rising tensions, and this new collaboration may help ease strained relations as both nations work toward secure cyberspace operations.
Aligned with US goals for global cyber enforcement, this liaison group aims to streamline coordination between the two countries’ enforcement bodies. This joint effort underscores the importance of cross-border cooperation to address the unique challenges posed by digital assets in the fight against financial crime.
