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.
South Korea has unveiled plans to regulate cross-border cryptocurrency transactions, set to take effect in the latter half of 2025. The forthcoming regulations will mandate that businesses engaged in virtual asset trading across international borders register with relevant authorities and provide monthly transaction reports to the Bank of Korea. This initiative aims to enhance transparency and oversight in a rapidly evolving market that has seen explosive growth in recent years.
The move comes in response to alarming statistics from the customs agency, which revealed that since 2020, foreign exchange-related crimes have amounted to 11 trillion won (approximately $7.97 billion). Notably, over 80% of these crimes have involved virtual assets, highlighting the need for stricter controls. The South Korean government is prioritising legislative measures to ensure the successful implementation of these regulations within the next 18 months, reflecting its commitment to combating financial crime and protecting investors.
By introducing these regulations, South Korea aims to create a safer environment for cryptocurrency transactions, aligning with global efforts to establish clearer frameworks for digital asset trading. As countries worldwide grapple with the implications of cryptocurrency, South Korea’s proactive stance may serve as a model for other nations looking to regulate the digital asset space effectively.
Japan’s financial regulators remain cautious about approving spot crypto exchange-traded funds (ETFs), even as other markets like the US and Hong Kong move forward with similar products. Oki Shiozawa, investment director at Sumitomo Mitsui Trust Asset Management, explained that Japan’s Financial Services Agency (FSA) is conservative and not yet ready to allow such ETFs, despite global advancements.
While Japan aims to position itself as a crypto-friendly hub, strict regulations and high tax rates have limited the growth of digital assets. Crypto gains in Japan are taxed as high as 55%, compared to the 20% tax rate for traditional assets like ETFs. Keisuke Kimura, from the Japan Cryptoasset Business Association, noted that past scandals, like Mt. Gox, have made both regulators and the public wary of crypto investments.
Despite the challenges, companies like Franklin Templeton and SBI Holdings are preparing for potential regulatory shifts, while others, like Nomura, have already launched crypto-related products for institutional investors. As global markets embrace crypto ETFs, Japan faces increasing pressure to adapt.
Elon Musk, CEO of Tesla and SpaceX, addressed the potential of cryptocurrency during a town hall in Pittsburgh, emphasising its role in safeguarding individual freedom. Although he stopped short of directly endorsing XRP, Musk highlighted how cryptocurrencies like it could be crucial in resisting centralised control. His comments were met with enthusiasm from XRP supporters, with Ripple’s ongoing legal battle against the SEC remaining a hot topic.
The legal dispute over whether XRP is a security continues, as Ripple defends its position that XRP is a cryptocurrency. Ripple’s CEO, Brad Garlinghouse, agreed with Musk’s view, stressing that crypto and XRP are no longer niche concerns but essential issues for voters who want policies that foster innovation.
Musk’s involvement in the crypto space remains significant, with Tesla recently transferring $765 million worth of Bitcoin to new wallets. While Tesla stopped accepting Bitcoin for payments over environmental concerns in 2021, the company continues to engage with the crypto market, also accepting Dogecoin for some merchandise.
Japan’s Democratic Party for the People (DPP), led by Yuichiro Tamaki, has announced a plan to lower the tax on cryptocurrency gains to 20% if elected. In a recent post on X, Tamaki outlined that crypto assets should be taxed separately, contrasting the current regime where gains can be taxed up to 55% as ‘miscellaneous income.’ The DPP aims to treat digital assets similarly to stock market profits, which are taxed at a maximum of 20%.
The party’s proposals also include measures to enhance the token economy in Japan, promoting the use of non-fungible tokens and cryptocurrencies to invigorate the economy. Tamaki indicated that trading crypto assets would not incur tax liabilities under their plan, emphasising the need to foster a robust web3 business environment in Japan.
Additionally, the DPP intends to introduce cryptocurrency exchange-traded funds and enhance leverage in trading from two-fold to ten-fold. The proposal includes the introduction of digital regional currencies by local governments to stimulate local economies. Despite these ambitious plans, recent surveys suggest that the DPP may struggle to gain traction in the upcoming elections, as the ruling Liberal Democratic Party maintains a strong lead in voter support.
Members of Argentina’s cryptocurrency industry have voiced their concerns regarding a new draft that seeks to impose restrictions on crypto institutions. The Argentine securities regulator (CNV) has announced a public consultation for a draft aimed at regulating virtual asset service providers (VASPs), which would require institutions to register with a minimum capital amount to operate within the country.
If approved, the proposed regulations would mandate crypto companies to disclose their agreements with third parties and customers while also establishing measures to combat money laundering and terrorism financing. CNV President Roberto Silva has emphasised that the intention is to balance regulation with the need for innovation within the sector.
A notable aspect of the draft is the proposed minimum capital requirement of nearly $173,000 for institutions involved in the transfer, custody, and management of virtual assets. While individual users will still be able to engage in fiat-to-crypto and crypto-to-crypto exchanges without forming a company, industry members caution that the regulations must be conducive to growth.
Industry leaders like Carlos Peralta of Bitso Argentina and Juan Pablo Fridenberg of Lemon have expressed support for regulations that encourage local exchanges to operate efficiently, highlighting the importance of a thoughtful approach to regulation that avoids driving users to unregulated markets.
Samson Mow, CEO of Bitcoin technology company Jan3, has called on Germany to incorporate Bitcoin into its national strategic reserves. Speaking at the German Bundestag, Mow suggested that the country acquire 281,267 Bitcoin, stressing its potential to strengthen financial resilience. His remarks came during discussions on Bitcoin strategies for nation-states, which attracted Members of Parliament and Bitcoin supporters alike.
Mow, a leading voice in the Bitcoin community, is known for helping El Salvador become the first country to adopt Bitcoin as legal tender. Drawing on his past experience, he emphasised that Bitcoin could be used by countries like Germany to stabilise their economies by holding it as a reserve asset, much like gold.
He remains a strong advocate for nations adopting Bitcoin as part of their financial strategy, arguing it could reduce dependence on traditional currencies and offer a way to diversify national reserves.
The amount of Ethereum held in accumulation addresses has surged past 19 million, according to the latest data from CryptoQuant. This figure has nearly doubled since January 2024, when it stood at 11.5 million. Analysts predict the number could surpass 20 million by the end of the year, as the approval of Ethereum Spot ETFs earlier this year has boosted confidence among both institutional and individual investors.
With this growing accumulation, the total value of these Ethereum holdings is projected to reach $80 billion by December 2024, with ETH priced at around $4,000. The increasing institutional interest in Ethereum is seen as a driving factor behind its mainstream adoption.
Currently, 71% of Ethereum holders are in profit, with over 74% having held their ETH for more than a year. Ethereum’s price recently reclaimed the $2,700 mark, marking a 10% rise over the past week.
A recent paper from the European Central Bank has sparked controversy by claiming that Bitcoin should either be heavily regulated or banned altogether to prevent older holders from profiting at the expense of new investors. Published on 12 October 2024, the report suggests that those who purchased Bitcoin early are exploiting newer buyers, a practice common to all financial markets. The authors argue that without intervention, the rising price of Bitcoin could lead to social unrest.
The paper also attempts to link Bitcoin to criminal activity, despite a US Treasury report from May 2024 confirming that fiat cash remains the primary tool for illicit transactions. Moreover, the authors neglect the fact that Bitcoin was created as a response to government-induced inflation, which continues to erode the value of fiat currencies globally.
Bitcoin’s pseudonymous creator, Satoshi Nakamoto, designed the digital asset as a decentralised method of payment and a hedge against monetary mismanagement. With rising public sector debt in both the UK and the US, critics argue that Bitcoin’s growing popularity is a direct reaction to the failings of traditional financial systems.
The European Union is set to enforce new common regulations for crypto asset service providers (CASPs) under the Markets in Crypto-Assets (MiCA) framework by 30 December, replacing national laws. The Cyprus Securities and Exchange Commission (CySEC) has already begun freezing CASP applications under Cypriot law as of 17 October, advising market participants to prepare for the upcoming changes.
CASPs that register under national regulations before the December deadline can continue to operate until July 2026, unless they receive or are denied MiCA authorisation before then. The transition will bring new regulatory standards, and CASPs must comply with the European Commission’s guidelines, which are still pending final publication. In the meantime, the European Securities and Markets Authority (ESMA) has issued draft standards for CASPs to follow.
Other European regulators, such as the Dutch Authority for the Financial Markets, are already investigating potential fraud and manipulation schemes before MiCA takes full effect. The new regulations aim to bring greater transparency and stricter oversight to the crypto market across the EU.
