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.
Botswana’s central bank has stated that while the country’s local crypto markets are still underdeveloped, they pose minimal risks to financial stability. However, the bank cautioned that as crypto becomes more interconnected with the broader financial system, it may present future systemic risks. The bank emphasised the need for regulatory frameworks to address potential risks as the sector evolves.
While the risks from crypto assets are currently low, the Bank of Botswana acknowledged ongoing concerns about misconduct in the sector. To safeguard the financial system, regulators must develop oversight mechanisms to prepare for future growth in digital assets.
The central bank also flagged digital payment instruments as a significant security risk, particularly in relation to money laundering and terrorist financing. The anonymity offered by these platforms increases the potential for illicit financial activities, prompting the need for enhanced market surveillance and cooperation with law enforcement.
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.
Ohio may soon lead the charge in government cryptocurrency adoption, with proposed legislation aimed at incorporating Bitcoin into the state’s financial strategy. Derek Merrin, Leader of the Ohio House Republicans and former Mayor of Waterville, introduced House Bill 703, which would authorise the state treasurer to invest in Bitcoin. Dubbed the ‘Ohio Bitcoin Reserve,’ this initiative is positioned as a hedge against the declining purchasing power of the US dollar, preserving the value of public funds for future generations.
If passed, the bill would grant Ohio the flexibility to allocate treasury funds into Bitcoin, marking a significant step towards crypto integration in government finances. Advocates argue that such a move could enhance the state’s financial resilience, encourage corporate adoption of digital assets, and position Ohio as a trailblazer in global finance. Cynthia Lummis and other proponents believe Bitcoin’s growing acceptance by businesses and even some government agencies underscores its potential as a reliable financial tool.
Ohio’s $72.16 billion public debt, largely tied to infrastructure and education funding, adds urgency to innovative financial strategies. By diversifying its reserves with Bitcoin, the state could improve long-term solvency, potentially reducing the need for tax increases or service cuts. As digital assets gain traction, Ohio’s initiative could set a precedent for other states exploring crypto adoption to bolster fiscal stability.
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.
President-elect Donald Trump met with Kris Marszalek, CEO of Crypto.com, on 16 December at Mar-a-Lago to discuss plans for a US Strategic Bitcoin Reserve. The meeting focused on developing a policy framework for the reserve, which aims to classify Bitcoin as a strategic asset within the Treasury’s Exchange Stabilisation Fund. The plan also includes rigorous audits and security protocols for government-held Bitcoin, consolidating assets within seven days and establishing a management programme within 60 days.
The Strategic Bitcoin Reserve is designed to bolster US economic security and global financial leadership in the digital asset space. The move aligns with Trump’s broader pro-crypto agenda, which includes appointing key industry advocates like Howard Lutnick as commerce secretary and Paul Atkins to lead the SEC. His administration’s crypto-friendly outlook is expected to enhance regulatory clarity and foster innovation.
The news coincided with Bitcoin reaching an all-time high of $108,268.45 on 17 December. This surge reflects growing confidence in the cryptocurrency’s role in the US financial landscape. Meanwhile, Ohio’s Derek Merrin has also proposed a state-backed Bitcoin reserve, signalling increasing governmental interest in Bitcoin as a hedge against economic uncertainties.
Bit Trade, the operator of Kraken in Australia, has been fined $8 million for offering an unapproved margin lending product to over 1,100 customers. The Federal Court of Australia ruled that the company breached financial regulations by failing to assess customer suitability and neglecting to provide a Target Market Determination (TMD), a document essential for ensuring products are appropriately matched to consumers’ needs.
The Australian Securities and Investments Commission (ASIC) revealed that customers lost $7.85 million due to the product, with one individual losing $6.3 million. Justice John Nicholas criticised Bit Trade’s actions as “serious” and profit-driven, calling out the company for its delayed response to compliance issues. In addition to the fine, Bit Trade was ordered to cover ASIC’s legal costs.
Kraken was disappointed with the ruling, arguing that Australia’s regulatory framework lacks clarity and calls for tailored cryptocurrency laws. However, ASIC Chair Joe Longo described the decision as a turning point for consumer protection, urging digital asset firms to meet compliance obligations. The regulator is currently consulting with the crypto industry on updates to its guidance, though critics claim the government’s inaction has left the sector in “regulatory limbo.”
Bitcoin prices have reached a new record, surpassing $107,000 amid speculation that President-elect Donald Trump might establish a Bitcoin strategic reserve. The milestone came shortly after prices broke through $106,000, reflecting growing optimism in the cryptocurrency market.
Meanwhile, MicroStrategy announced a $1.5 billion bitcoin purchase, adding 15,350 bitcoins at an average price of $100,386 each. The company now holds 439,000 bitcoins, worth $47 billion, and has seen its market cap soar from $1.1 billion in 2020 to nearly $100 billion. The firm’s shares have surged by 527% this year, boosted by Bitcoin’s rally and its forthcoming inclusion in the Nasdaq 100 index.
Despite its impressive growth, analysts suggest MicroStrategy may face challenges in joining the S&P 500 due to concerns over profitability. Current accounting rules restrict how gains from bitcoin holdings are recorded, although new standards expected in January 2025 could help the company more accurately reflect its bitcoin-related gains.
Bitget has secured a Bitcoin Service Provider licence from El Salvador’s Central Reserve Bank, allowing the platform to offer Bitcoin-to-fiat exchanges, payments, and custody services in the country. This licence is part of Bitget’s strategy to strengthen its global regulatory position and expand its presence in Latin America.
El Salvador, which made Bitcoin legal tender in 2021, has become a hub for cryptocurrency adoption. With this new licence, Bitget aims to tap into the country’s growing crypto market, which serves as a gateway to the wider region. The company is also pursuing a Digital Assets Service Provider licence from El Salvador’s National Commission of Digital Assets to extend its services to other cryptocurrencies.
In addition to its progress in Latin America, Bitget has secured Virtual Asset Service Provider licences in Poland and Lithuania and recently re-entered the UK market through a partnership with Archax. The company also plans to set up a dedicated team in El Salvador to strengthen its local presence.
Société Générale has achieved a milestone by conducting the first repo transaction using blockchain within the Eurosystem. The transaction carried out with Banque de France through Société’s digital asset subsidiary Forge, involved tokenised bonds issued on Ethereum in 2020 as collateral. Central bank digital currency (CBDC) issued by Banque de France was exchanged as cash, showcasing the potential of blockchain in modern financial operations.
The move highlights the feasibility of conducting interbank refinancing on-chain. Société Générale stated that using CBDCs for such transactions could improve liquidity for digital financial securities. Tokenisation, which converts traditional securities into digital tokens, offers faster settlement times and an immutable record of transactions, making it a promising technology for the financial sector.
Banque de France has been actively exploring CBDC use cases since 2021, including cross-border transactions and collaborations with global partners like the Hong Kong Monetary Authority. Meanwhile, Société Générale continues to expand its digital asset operations, including launching its euro-denominated stablecoin EUR convertible. The bank’s innovative efforts reflect its position as one of the world’s largest financial institutions.
