USDGlobal Crypto Policies Weekly Shift: Australia, Russia, Vietnam, and Japan Lead Changes
Australia Rules Out Strategic Crypto Reserve, Focuses on Regulation Instead
Australia's government has no plans to establish a strategic crypto reserve, unlike the Trump administration's recent initiative to stockpile major cryptocurrencies such as XRP, Solana, Cardano, Ether, and Bitcoin. The Albanese government is currently focused on regulating digital asset platforms, emphasizing opportunities presented by blockchain technology for the economy. While recent polling indicates a potential shift in government power, with the center-right Coalition leading 51% to 49%, the crypto reserve concept is acknowledged as complex, potentially leading to concentration risk.
Industry experts suggest that the emergence of a long-only sovereign wealth fund to hold crypto may be more feasible. Notably, Australia ranks third globally in Bitcoin and crypto ATMs, with over 1,453, up from 67 in August 2022. 2025 will see intensified regulatory focus on the cryptocurrency industry, driven by new guidance and compliance requirements from Australian authorities.
Belarus Explores Bitcoin Mining to Utilize Surplus Electricity, Says President Lukashenko
Belarus, under President Alexander Lukashenko's directive, is exploring Bitcoin mining to utilize its surplus electricity, as reported by state-owned news agency BeITA. Lukashenko emphasized the potential profitability of crypto mining amid increasing demand during the appointment of Energy Minister Alexei Kushnarenko. The President outlined two approaches: either leveraging state resources for direct mining or selling excess electricity to investors for their operations. This initiative aligns with a global trend of government engagement in the crypto sector, similar to Russia's regulatory actions.
A study by the Perryman Group highlights the economic impact of mining, indicating over 31,000 jobs and $4.1 billion in annual output in the U.S. Moreover, environmentalist Daniel Batton noted that Bitcoin mining could promote sustainable energy practices by using wasted or renewable energy, framing it as a mechanism for resource optimization and waste reduction, challenging the notion of mining as merely energy-intensive.
Russia Plans Controlled Crypto Trading for High-Network Investors
On March 5, 2025, Russia's Ministry of Finance and Central Bank announced plans to establish a controlled crypto trading framework for "super-qualified" investors, which includes individuals and corporations with over 24 million rubles ($250,000) in assets. This initiative aims to create a structured legal environment for digital asset trading, although it is still under development. Aleksey Yakovlev, from the Ministry of Finance, indicated that the project will likely be implemented through an experimental legal regime, as comprehensive crypto legislation is currently lacking.
The authorities emphasize the importance of mitigating risks and ensuring investor protection in the integration of cryptocurrencies into the financial system. This move aligns with Russia's efforts to regulate the crypto industry; in 2024, the government enabled traditional stock exchanges to facilitate digital asset trading and established a taxation framework for cryptocurrencies, imposing rates between 13% and 15% based on income.
Russia Dismisses Crypto for National Wealth Fund, Citing Volatility Risks
Russia’s Deputy Finance Minister, Vladimir Kolychev, has firmly rejected the idea of including cryptocurrencies in the National Wealth Fund (NWF), citing concerns over their volatility. Kolychev emphasized the need for stability in sovereign reserves, stating that assets must be easily liquidated without significant price fluctuations. As of March 1, 2025, the NWF managed 11.88 trillion rubles ($135.47 billion), with 3.394 trillion rubles ($38.7 billion) in liquid assets, constituting 1.6% of Russia's projected GDP.
Despite some lawmakers advocating for a strategic Bitcoin reserve to enhance economic resilience amid geopolitical challenges, Kolychev clarified that he has not heard of discussions regarding a government-backed crypto reserve. He suggested any potential plans would fall under the central bank’s jurisdiction, highlighting a contrast between the finance ministry’s cautious stance and the broader Russian embrace of cryptocurrencies for navigating Western sanctions.
Vietnam to Launch Digital Asset Exchange Pilot in March, Fostering Crypto Regulation
Vietnam is set to pilot a digital asset exchange in March, as announced by Deputy Finance Minister Nguyen Duc Chi. This initiative aims to establish a regulatory framework for digital assets, with the exchange to be managed by state-licensed units to safeguard participants' rights. Both the Ministry of Finance and the State Bank are working on regulations for digital currencies, with a government report expected this month. Prime Minister Pham Minh Chinh's Directive No. 05 seeks to boost economic growth to at least 8% by 2025, accelerating the regulatory timeline originally planned for May.
The Ministry of Finance is also developing regulations that enable Vietnamese enterprises to issue virtual assets, aligning them with the global trend towards cryptocurrencies. Despite the lack of regulation leading to increased instances of crypto fraud, Vietnam continues to be a significant player in the crypto space, emphasizing the need for a legal framework to enhance capital access for businesses.
Japan’s LDP Proposes 20% Crypto Capital Gains Tax Amid Regulatory Reforms
Japan's ruling Liberal Democratic Party (LDP) is pursuing ambitious regulatory reforms for cryptocurrencies, proposing to cut capital gains tax on digital assets from its current rate to 20%. This initiative will classify cryptocurrencies as a distinct asset class, separate from traditional securities, under the Financial Instruments and Exchange Act. Key proposals include equal tax treatment for cryptocurrency derivatives and deferring taxes on crypto-to-crypto swaps, with taxes only applied when converting to fiat currency. These reforms reflect Japan's evolving stance on digital assets, shifting towards a more investment-friendly environment.
The LDP is soliciting public feedback on these changes until March 31, 2025. By embracing innovation with caution, Japan aims to balance consumer protection while fostering digital asset investment, moving away from its previous cautious approach. Additionally, discussions around potential Bitcoin reserves highlight the government’s interest in remaining competitive on the global stage, despite hesitations expressed by Prime Minister Shigeru Ishiba.
South Korea's Ruling Party Considers Approving Spot Crypto ETFs Amid Soaring Trading Volume
On March 7, 2025, Kweon Seong-dong, leader of South Korea's ruling People Power Party, announced intentions to consider approving spot crypto-based exchange-traded funds (ETFs) following necessary revisions. During a meeting with officials and cryptocurrency exchange heads, he emphasized the importance of reviewing global trends and infrastructure before moving forward. The Financial Services Commission (FSC) has been engaged in discussions regarding Bitcoin ETF approval since late 2024 but has taken a cautious approach.
Notably, during November 5-28, 2024, South Korean crypto exchanges reported an average daily trading volume of approximately $9.4 billion, surpassing the KOSPI's $7 billion, highlighting the significant interest in cryptocurrencies. Financial leaders warn that South Korea risks falling behind other nations in adopting crypto ETFs, underscoring the need for user protection and market development amid growing trading volumes.
This article has been refined and enhanced by ChatGPT.
