digital assets

Kraken about to boost UK crypto services

Kraken has secured an Electronic Money Institution licence from the UK’s Financial Conduct Authority, allowing it to issue electronic money and offer faster deposits and withdrawals for British customers.

The move strengthens Kraken’s ability to partner with traditional financial institutions and expand its crypto services across the UK.

Bivu Das, Kraken’s UK General Manager, highlighted the growing demand for crypto-based financial services, stating that the UK is on the verge of mass adoption.

Recent research from the FCA shows that 12% of UK adults now hold crypto, with trading volumes in sterling continuing to rise.

The approval follows Kraken’s recent regulatory success in the EU, where it gained permission to offer regulated derivatives.

With compliance secured in both the UK and Europe, Kraken is positioning itself as a bridge between crypto and traditional finance, with plans to launch new products in the coming months.

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Trump-backed World Liberty buys $20m worth of crypto before summit

World Liberty Financial, a decentralized finance (DeFi) project backed by the Trump family, has made a significant $20 million investment in digital assets ahead of the White House’s first-ever crypto summit on 7 March.

The purchase includes $10.1 million in Ether, $9.9 million in Wrapped Bitcoin, and $1.68 million in Movement Network’s MOVE token. The move has attracted attention due to its timing, with the summit set to explore the future of crypto policy and the potential creation of a Bitcoin reserve.

World Liberty, launched by President Trump’s family in September, aims to allow crypto holders to trade and earn interest on assets without relying on centralised intermediaries.

The project has raised some eyebrows due to a previous report alleging attempts to swap its forthcoming WLFI tokens with other projects, though the company has denied any wrongdoing, clarifying that asset reallocations are for regular business purposes.

The timing of this large acquisition has sparked curiosity, especially with discussions about establishing a US crypto reserve at the summit. Adding to the intrigue, David Sacks, the US crypto czar, criticised past sales of Bitcoin by the government, which resulted in significant losses for taxpayers.

With the summit expected to feature key figures in the crypto industry, it remains to be seen how these developments will shape US policy on digital assets in the future.

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Trump orders creation of Strategic Bitcoin Reserve

President Trump has signed an executive order to establish a Strategic Bitcoin Reserve, aiming to safeguard seized Bitcoin as a national asset.

The reserve will be funded solely through Bitcoin obtained via asset forfeiture, ensuring no financial burden on taxpayers. White House AI and Crypto Czar David Sacks estimated that the government holds around 200,000 BTC, though an official audit is yet to be conducted.

The order mandates a full inventory of the government’s digital assets and bans the sale of Bitcoin from the reserve, likening it to a ‘digital Fort Knox’.

A separate Digital Asset Stockpile will be created to store non-Bitcoin cryptocurrencies seized in legal actions, but the government will not purchase additional crypto beyond this method.

Trump’s administration has also tasked the Treasury and Commerce Departments with exploring ways to expand the Bitcoin reserve without any extra cost to taxpayers.

Sacks criticised previous government Bitcoin sales, stating they cost the country over $17 billion in lost value. By halting these sell-offs, the new policy could reduce Bitcoin’s circulating supply, potentially reinforcing its status as a strategic asset similar to gold.

While the market has yet to react, the move signals a long-term shift in US crypto policy, supporting Trump’s vision of making the country the global leader in digital assets.

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Cryptocurrency adoption surges with over 824 million people owning digital assets

A new report from venture capital firm Epoch reveals that over 824 million people globally now own some form of cryptocurrency, marking a significant surge in adoption.

Rapid growth is largely fuelled by strong price performance, increasing institutional interest, and the rise of accessible investment options such as Bitcoin ETFs. Bitcoin continues to lead the charge, with an estimated 422 to 455 million owners, or roughly 5% of the world’s population.

While cryptocurrency ownership has traditionally been dominated by younger men, the study notes a shift in demographics, with more women now entering the space.

Approximately 13% of women aged 26 to 45 report owning Bitcoin, a figure influenced by ‘ownership by association’ through spouses or partners. The shift highlights the growing legitimacy and accessibility of digital assets, especially with traditional financial institutions backing crypto ETFs.

Institutional and corporate investments are further accelerating crypto adoption. The launch of Bitcoin ETFs has provided a regulated pathway for large investors, while corporations like Microsoft and Amazon are exploring Bitcoin as a reserve asset.

The report predicts that if the top ten US companies allocated just 5% of their cash reserves to Bitcoin, it would result in a $40 billion inflow into the market.

Looking ahead, the study suggests that nation-states are also considering Bitcoin as part of their reserves. With Bitcoin’s unique characteristics, such as liquidity, scarcity, and independent custody, it could potentially surpass gold as a sovereign reserve asset in the coming decade.

The continued growth in adoption signals a promising future for cryptocurrencies, bolstered by increasing awareness and new use cases.

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Russia considers crypto trading trial for elite investors

Russia is considering an experimental cryptocurrency trading programme for top-tier investors, requiring a minimum holding of 24 million roubles ($250,000).

The Ministry of Finance and the Bank of Russia are leading discussions on the initiative, which aims to establish a regulated space for crypto trading.

Whilst the project remains in its early stages, it would allow professional investors to engage in the market under government supervision.

Currently, Russians can own crypto but cannot use it as legal tender, and there is no centralised exchange for digital assets in the country, forcing traders to rely on foreign platforms.

Despite the ban on domestic exchanges, Garantex, a Russian-based platform sanctioned by the US and the EU, remains operational.

The exchange, headquartered in Moscow, enables rouble transactions through major Russian banks, raising concerns over regulatory oversight and enforcement.

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Belarus eyes crypto mining to use surplus energy

Belarusian President Aleksandr Lukashenko has urged officials to strengthen the country’s energy infrastructure and consider cryptocurrency mining to utilise surplus electricity.

Addressing newly appointed Energy Minister Aleksei Kushnarenko, he highlighted the need to upgrade 5,700km of power networks essential for homes and electric vehicles. While high-voltage systems are stable, weaker areas require reinforcement to prevent outages like those in the Gomel Region.

Belarus has been exploring crypto mining for years, with Energy Minister Viktor Karankevich confirming in 2021 that a feasibility study was conducted.

Lukashenko wants to accelerate these efforts, citing global demand for digital assets and the country’s potential to attract investors or establish state-backed mining operations. Officials have been given responsibility for streamlining regulations and presenting concrete plans.

Alongside crypto mining, Lukashenko promotes increased electricity use for heating and hot water, supported by plans for a second nuclear power plant.

He sees this as a long-term strategy to ensure energy reliability and economic growth, positioning Belarus as a key player in the digital asset space and sustainable energy development.

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El Salvador faces new IMF restrictions on Bitcoin transactions

The International Monetary Fund (IMF) has urged El Salvador to stop public-sector Bitcoin purchases as part of its $1.4 billion funding deal with the country. In newly issued documents, the IMF stressed that the government should not voluntarily accumulate Bitcoin or issue any debt instruments tied to it.

Méndez Bertolo, the IMF’s executive director for El Salvador, stated that the fund aims to improve governance, transparency, and economic resilience while mitigating Bitcoin-related risks.

Recent amendments to the Bitcoin Law have clarified Bitcoin’s legal nature, ensuring that its acceptance remains voluntary and that tax payments continue in US dollars. The public sector’s role in Bitcoin adoption has also been scaled back.

The IMF reaffirmed its stance that El Salvador’s Bitcoin engagement should remain limited, in line with international financial policies.

The government has committed to enhancing regulation and supervision of digital assets, aligning with evolving global standards. Despite these restrictions, President Nayib Bukele has continued to acquire Bitcoin, with the country’s holdings now reaching 6,100 BTC.

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CoinDCX to manage seized crypto assets for India’s enforcement directorate

India’s Enforcement Directorate (ED) has chosen CoinDCX to manage and store seized digital assets as part of a crackdown on cryptocurrency-related financial crimes.

The partnership follows high-profile fraud cases like GainBitcoin and BitConnect, which have raised concerns over investor protection. CoinDCX will offer secure custody services to safeguard these assets, implementing advanced security protocols to ensure their integrity.

In a recent case, the ED seized digital assets worth approximately $198 million linked to the BitConnect scam, which defrauded investors worldwide.

Earlier, the Central Bureau of Investigation (CBI) had seized $2.88 million in the GainBitcoin scam, uncovering evidence of financial misappropriation and cross-border transactions. These actions highlight the increasing efforts by authorities to tackle large-scale cryptocurrency fraud.

As cryptocurrency adoption rises in India, regulatory bodies are focusing on stronger enforcement to protect investors from fraudulent schemes.

The collaboration with CoinDCX is part of a broader strategy to ensure transparency in the handling of seized funds and to maintain the integrity of ongoing investigations.

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South Korea moves closer to Bitcoin ETF decision

South Korea’s financial regulators are closely monitoring Japan’s moves towards approving Bitcoin exchange-traded funds (ETFs), with reports suggesting that Seoul may follow suit if Tokyo takes further action. Since late last year, South Korea’s Financial Services Commission (FSC) has discussed Bitcoin ETF approval, but it has maintained a cautious stance towards crypto. However, recent developments in Japan have sparked new responses from South Korean regulators.

The Japanese Financial Services Agency (FSA) is reportedly considering reclassifying cryptocurrency as an investment tool and approving Bitcoin and altcoin ETFs. This potential shift has caught the attention of South Korean regulators, who have reviewed Japan’s policies and shared their findings within Seoul. The FSA aims to implement new crypto regulations by June, and this could set the stage for further legislative changes by 2025 or 2026.

While South Korean regulators have traditionally been hesitant, some financial chiefs have expressed concern over the country lagging behind rival nations. The FSC has recently indicated that it is unlikely to approve virtual asset ETFs shortly, citing Japan’s approach as a key reason. As Japan pushes ahead with its plans, it remains to be seen how South Korea will respond to these growing crypto policy shifts.

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Australia rules out strategic crypto reserve

Australia’s government has ruled out creating a strategic cryptocurrency reserve, despite the US pressing with plans to hold assets like Bitcoin, Ether, XRP, Solana, and Cardano. The Albanese government remains focused on regulating the digital asset sector rather than following the US lead. A spokesperson for the Assistant Treasurer confirmed that efforts are concentrated on developing a clear regulatory framework rather than acquiring crypto.

Meanwhile, the opposition coalition, which could return to power in the upcoming election, has not yet decided whether it would reconsider the decision. Some industry experts believe that while a crypto reserve is an interesting concept, it carries risks due to market volatility and concentration concerns. Others suggest a sovereign wealth fund investing in crypto could be a more viable alternative.

Despite rejecting a national reserve, Australia remains a growing player in the crypto space. Regulators have ramped up oversight, with new anti-money laundering measures and proposed authorisation rules for crypto firms. The country has also become a hub for Bitcoin and crypto ATMs, now ranking third globally with over 1,453 machines.

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