<h2>Stricter Regulations Aim to Combat Illicit Crypto Activity</h2>Turkey is set to&nbsp;<a href="https://cointelegraph.com/news/turkey-new-crypto-regulation-aml-2024">implement</a> stringent anti-money laundering (AML) regulations targeting cryptocurrency transactions beginning February 25, 2025.&nbsp;The new framework mandates that users conducting transactions exceeding 15,000 Turkish lira (approximately $425) must disclose identifying information to crypto service providers, according to an announcement published in the Official Gazette of the Republic of Turkey on December 25. This move aligns Turkey with global efforts to regulate the burgeoning digital asset sector, drawing inspiration from Europe's forthcoming Markets in Crypto-Assets (MiCA) framework.The new policy enables crypto service providers to classify certain transfers as “risky” if sufficient user information is unavailable, empowering them to halt transactions or restrict business relationships under the law. Transfers involving unregistered&nbsp;<a href="https://coin360.com/glossary/crypto-wallets">wallet</a> addresses will also require identification verification, adding an additional layer of scrutiny to combat the misuse of cryptocurrencies in money laundering and terrorism financing. Notably, transactions below the $425 threshold are exempt from these reporting requirements.Turkey's heightened focus on cryptocurrency regulation follows a year of robust activity in its digital asset market. In 2024, the Turkish Capital Markets Board (CMB) received 47 license applications from crypto firms, signaling increased interest in compliance ahead of the new rules. This uptick coincides with the implementation of the “Law on Amendments to the Capital Markets Law” on July 2, which aimed to establish a comprehensive regulatory framework for crypto service providers.The backdrop to this regulatory tightening is Turkey's position as one of the world’s largest crypto markets. As of September 2023, the country ranked fourth globally, boasting a trading volume of $170 billion, surpassing significant markets like Russia and Canada, according to Chainalysis. While Turkish residents can buy, hold, and trade cryptocurrencies, using digital assets for payments has been banned since 2021. The government is now exploring a potential 0.03% transaction tax on crypto trades to bolster public finances, further reflecting its evolving approach to the sector.Turkey’s regulations come amid broader global efforts to enhance oversight of the crypto industry. The timing of the announcement, just days ahead of MiCA’s enforcement on December 30, underscores Turkey’s ambition to align itself with leading jurisdictions in cryptocurrency governance. These developments signal a transformative period for the nation’s crypto landscape as it seeks to balance innovation with security and compliance.This article has been refined and enhanced by ChatGPT.

Robot analyzing blockchain in Ottoman arches

Robot analyzing blockchain in Ottoman arches_11zon.webp

Turkey Tightens Grip on Crypto with New AML Rules

<h2>A New Era for Crypto Investments in Israel</h2>Israel is set to make a significant entry into the cryptocurrency investment landscape with the launch of&nbsp;<a href="https://www.coindesk.com/policy/2024/12/25/six-bitcoin-mutual-funds-to-debut-in-israel-next-week-report">six mutual funds</a> pegged to&nbsp;<a href="https://coin360.com/coin/bitcoin-btc">Bitcoin</a>’s price. Scheduled to begin trading on December 31, these funds received final approval last week from the Israel Securities Authority, marking a pivotal moment in the country's evolving approach to digital assets.&nbsp;Managed by a diverse group of financial firms—Migdal Capital Markets, More, Ayalon, Phoenix Investment, Meitav, and IBI—the funds offer varying management fees, ranging from 0.25% to 1.5%, catering to a wide spectrum of investor preferences. While most funds aim to mirror Bitcoin's market performance, one will adopt an actively managed approach, striving to outperform the cryptocurrency's benchmarks. Initially, trading will occur once daily, though future offerings may include continuous trading to meet market demand.The approval positions Israel among a growing number of nations embracing mainstream cryptocurrency investment opportunities. This regulatory milestone mirrors broader global trends, as major markets like the United States have also advanced their crypto offerings. Earlier this year, the U.S. Securities and Exchange Commission approved spot Bitcoin exchange-traded funds, a move that coincided with a surge in Bitcoin's value. Over the past year, Bitcoin has more than doubled in price, approaching its all-time high, while U.S.-based funds have attracted a staggering $35.6 billion in net investor inflows.Israel's decision arrives as digital currency regulations continue to evolve worldwide. Turkey, for instance, has tightened anti-money laundering measures, requiring users conducting crypto transactions exceeding 15,000 Turkish liras, roughly $425, to disclose their identities to service providers. The developments underline the global regulatory push for greater oversight of digital assets as they gain prominence in traditional financial systems.This article has been refined and enhanced by ChatGPT.

Mosaic robot balancing Bitcoin coin in pastel Israeli desert

Mosaic robot balancing Bitcoin coin in pastel Israeli desert.webp

Israel to Launch Six Bitcoin Mutual Funds on December 31

<h2>Crypto Market Hits Milestone as Investors Surge</h2>The cryptocurrency market in South Korea has reached a staggering new milestone, with&nbsp;<a href="https://m.yna.co.kr/view/AKR20241224079900002?input=1195m">over 15.59 million</a> domestic investors reported by the end of November, according to data from the Bank of Korea. This figure represents more than 30% of the country’s population actively engaged in digital asset investments, primarily through the nation’s top five exchanges—<a href="https://coin360.com/exchange/upbit">Upbit</a>, Bithumb,&nbsp;<a href="https://coin360.com/exchange/coinone">Coinone</a>,&nbsp;<a href="https://coin360.com/exchange/korbit">Korbit</a>, and&nbsp;<a href="https://coin360.com/exchange/gopax">GOPAX</a>. The growth underscores the nation’s increasing adoption of crypto as an asset class, with investors collectively holding an impressive $79 billion in digital assets.November marked a pivotal moment in South Korea’s crypto landscape. The number of domestic investors surged by 610,000 in a single month, a significant leap compared to the steady growth of 100,000 monthly investors seen from July to October. By November’s end, the country’s crypto investor count had risen from 14.74 million in July to its current 15.59 million. This sharp increase aligned closely with&nbsp;<a href="https://coin360.com/coin/bitcoin-btc">Bitcoin</a>'s price rally, which climbed from approximately 100 million KRW in late October to over 135 million KRW by the end of November.The rise in investor activity and Bitcoin prices pushed the nation’s total crypto holdings to 102.6 trillion KRW ($79 billion), a significant jump from October’s 58 trillion KRW. In addition to invested assets, unallocated deposits in domestic exchanges reached 8.8 trillion KRW. November also saw average daily trading volumes across South Korea's virtual asset exchanges exceed 14.9 trillion KRW—outperforming the combined daily trading volumes of the country’s Kospi and Kosdaq stock markets. By contrast, October’s average daily transactions hovered around 3.4 trillion KRW.Rep. Lim Gwang-hyun of the Democratic Party of Korea highlighted the crypto market's growing prominence, stating that trading volumes are now comparable to those of the stock market. He stressed the need for government measures to ensure the market's stability and safeguard the rights of crypto investors as the sector continues its rapid growth.While South Korea’s crypto market thrives, the international crypto regulatory landscape remains tense. In a related development, Montenegro’s Constitutional Court has&nbsp;<a href="https://cointelegraph.com/news/do-kwon-extradition-dismissed-montenegro">rejected</a> Terraform Labs co-founder Do Kwon’s appeal against extradition. The court upheld a prior ruling favoring Kwon’s extradition to both the United States and South Korea, where he faces fraud charges linked to the $40 billion collapse of the&nbsp;<a href="https://coin360.com/coin/terra-luna">Terra</a> Luna ecosystem in May 2022. Kwon’s arrest in Montenegro in March 2023 while using a forged passport has placed him at the center of global scrutiny, with potential ramifications for stablecoin regulations and decentralized finance (<a href="https://coin360.com/glossary/decentralised-finance">DeFi</a>) oversight.This article has been refined and enhanced by ChatGPT.

Robot on Bitcoin wave, gavel in hand, Korean design

Robot on Bitcoin wave, gavel in hand, Korean design_11zon.webp

South Korea's Crypto Investors Exceed 15.59M, Holding $79B in Assets

<h2>Transforming Trade and Energy Through Bitcoin</h2>According to&nbsp;<a href="https://www.reuters.com/markets/currencies/russia-is-using-bitcoin-foreign-trade-finance-minister-says-2024-12-25/">Reuters</a>, Russia has officially embraced&nbsp;<a href="https://coin360.com/coin/bitcoin-btc">Bitcoin</a> and other digital currencies for international trade, marking a pivotal shift in its economic strategy. Finance Minister Anton Siluanov confirmed that this initiative, effective as of December 25, 2024, was enabled by legislative changes earlier this year that legalized cryptocurrency mining and authorized its use in foreign trade. The move underscores Russia’s ambition to diversify its trade mechanisms while navigating the complexities of global financial restrictions.This decision arises as a calculated response to the tightening grip of Western sanctions. Traditional banking systems, wary of penalties tied to Russia-related transactions, have restricted financial access, particularly with key partners such as China and Turkey. By integrating cryptocurrencies, Moscow has found a workaround to bypass these hurdles, ensuring smoother trade flows and a more resilient financial infrastructure.In a broader legislative context, Russia’s 2024 laws cemented the legitimacy of cryptocurrency mining within its borders, bolstering the country’s stature as a global Bitcoin mining leader. Leveraging vast energy reserves, Russia has positioned its mining operations at the forefront of the cryptocurrency ecosystem. This aligns with President Vladimir Putin’s vision of shifting away from the politicized dominance of the U.S. dollar in global markets. Putin has been vocal in endorsing alternative assets like Bitcoin, describing it as a decentralized, unregulatable financial tool that offers new opportunities for economic engagement.However, this embrace of digital assets is tempered by the nation’s acute focus on energy management. Starting in 2025, Russia will impose&nbsp;<a href="https://cointelegraph.com/news/russia-crypto-mining-ban-2025-2031">stringent regional and seasonal restrictions</a> on cryptocurrency mining to address the energy demands of its harsh winters.&nbsp;A total ban is slated for ten regions, including Dagestan, Chechnya, and Donetsk, while Siberian areas such as Irkutsk and Buryatia will face partial winter restrictions. These measures aim to manage the annual consumption of 16 billion kilowatt-hours attributed to mining activities, representing 1.5% of the country’s total electricity usage.The restrictions will operate on a defined timeline, initially applying from January to mid-March in 2025 and expanding to a November-through-March framework in subsequent years. These measures will remain in place until 2031, reflecting a nuanced approach that seeks to regulate mining activity without entirely sidelining its economic benefits.Economic gains from cryptocurrency mining are also a focal point. Newly introduced taxes on mining activities are anticipated to generate an estimated 200 billion roubles ($2 billion) annually. This financial boost highlights Russia’s pragmatic approach to balancing economic potential with energy concerns. Finance Minister Siluanov emphasized that these regulations are tailored to facilitate international trade rather than serve as a primary revenue source, aligning with the government’s broader agenda to reduce its reliance on oil and gas exports to 23% of GDP by 2027.Russia’s strategy to weave cryptocurrencies into its economic fabric showcases a sophisticated blend of innovation and caution. As it navigates the challenges of sanctions and energy consumption, the nation’s adoption of Bitcoin for trade reflects a broader strategic pivot aimed at reshaping its economic and geopolitical standing.This article has been refined and enhanced by ChatGPT.

Robot holding flag on Bitcoin in futuristic trade port

Robot holding flag on Bitcoin in futuristic trade port_11zon.webp

Russia Utilizes Bitcoin for Foreign Trade, Says Finance Minister Amid Crypto Mining Limits

<h2>Innovative Approach to Redistributing MEV Profits</h2><a href="https://coin360.com/coin/aave-aave">Aave</a>, one of the leading decentralized finance (<a href="https://coin360.com/glossary/decentralised-finance">DeFi</a>) protocols, is exploring the integration of&nbsp;<a href="https://coin360.com/coin/chainlink-link">Chainlink</a>’s newly unveiled Smart Value Recapture (SVR) oracle to tackle the persistent challenge of maximum extractable value (MEV) in its ecosystem.&nbsp;<figure class="image"><img alt="Proposed implementation of Chainlink SVR with Aave v3 on Ethereum.webp" src="https://prod-coin360-cms.s3.eu-central-1.amazonaws.com/Proposed_implementation_of_Chainlink_SVR_with_Aave_v3_on_Ethereum_de61e9567f.webp"><figcaption>Implementing Chainlink SVR with Aave v3 on Ethereum. Source: Chainlink</figcaption></figure>This strategic move, detailed in Aave’s governance forum, aims to redirect MEV-generated profits from blockchain transaction backrunning to benefit the protocol’s users. By leveraging the SVR oracle, Aave seeks to optimize its operations and mitigate the adverse effects of MEV, which often enriches blockbuilders at the expense of everyday users.Chainlink&nbsp;<a href="https://twitter.com/chainlink/status/1871241636211982752">introduced</a> the SVR oracle on December 23, offering a mechanism to capture MEV profits and return them to DeFi protocols. On the same day, Aave proposed adopting the SVR to reclaim MEV profits arising from&nbsp;<a href="https://coin360.com/glossary/understanding-liquidation-crypto-trading-guide">liquidation</a> events within its platform. These captured profits would then be channeled to the Aave DAO to enhance user rewards.&nbsp;<figure class="image"><img alt="tweet_1871241636211982752_20241225_011631_via_10015_io_11zon.jpg" src="https://prod-coin360-cms.s3.eu-central-1.amazonaws.com/tweet_1871241636211982752_20241225_011631_via_10015_io_11zon_55394c1317.jpg"><figcaption>Source: Chainlink</figcaption></figure>Liquidations in Aave’s system occur when the value of a borrower’s collateral dips too low, prompting third-party liquidators to repay a portion of the debt in exchange for collateral and a liquidation bonus. While effective, this system has inadvertently created opportunities for MEV exploitation, allowing blockbuilders to reap significant profits with minimal contributions to the protocol.MEV arises when blockbuilders reorder transactions to maximize their gains before finalizing blocks on the blockchain. This dynamic often tilts the financial benefits in favor of blockbuilders, leaving protocol users to bear the brunt of its impact. Aave estimates that integrating Chainlink’s SVR could enable the protocol to capture approximately 40% of MEV profits, offering a more balanced distribution of value within its ecosystem.The broader&nbsp;<a href="https://coin360.com/coin/ethereum-eth">Ethereum</a> network has also been grappling with MEV-related challenges, sparking widespread interest in mitigation strategies. One popular approach involves private transactions, commonly referred to as “dark pools.” These transactions bypass the public mempool by sending orders directly to validators, effectively shielding them from MEV exploitation. According to a recent report by Blocknative, private transactions now dominate Ethereum’s order flow as users increasingly prioritize MEV protection.By integrating Chainlink’s SVR oracle, Aave not only positions itself at the forefront of MEV mitigation but also sets a precedent for DeFi protocols to align user interests with innovative blockchain technologies. This proposal reflects the ongoing evolution of the DeFi space, where protocols continuously refine their mechanisms to foster fairness and enhance user benefits.This article has been refined and enhanced by ChatGPT.

Energetic robot capturing liquidation dynamics with hovering ghost companion

Israel to Launch Six Bitcoin Mutual Funds on December 31

A New Era for Crypto Investments in Israel

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Turkey Tightens Grip on Crypto with New AML Rules

Israel to Launch Six Bitcoin Mutual Funds on December 31

South Korea's Crypto Investors Exceed 15.59M, Holding $79B in Assets

Russia Utilizes Bitcoin for Foreign Trade, Says Finance Minister Amid Crypto Mining Limits

Aave Explores Chainlink Oracle for MEV Mitigation