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The Russian authorities are in the process of bringing in a national registry for crypto mining equipment, with registration to be a mandatory requirement for all operators. That’s according to a report published by Russia’s state-owned news agency, Tass, on Feb. 3. The registry is being established by the country’s Ministry of Energy, with Yevgeny Grabchak, deputy minister of energy, heading up the project.Photo by Egor Filin on UnsplashThe measure is being introduced as part of a raft of amendments to existing mining regulations. The objective is to improve oversight relative to crypto mining activity within the Russian Federation.  Unauthorized mining has been a concern for the Russian authorities for some time. According to the TASS report on this development, the registry would make mining without equipment registration “impossible.” Late last year, a Russian government commission moved to ban crypto mining in specific regions of the country. Management of the power grid was understood to be the main motivating force. Crypto mining activity had caused power shortages in some areas.  A seasonal ban was implemented, running from December to mid-March, with the measure to be repeated each year until 2031. In August of last year, Russian President Vladimir Putin had signed into law legislation that recognized the legitimacy of crypto mining in Russia.  Illegal mining, particularly within these restricted regions, continues to be a concern for the authorities, prompting this latest measure. Additionally, the authorities plan on establishing clear criteria in order to define crypto mining and deal with gaps in current legislation which may be enabling illegal and unregistered operators to carry out such mining activity. According to a report last month by local news media outlet Prime, Russia saw a surge in demand for Bitcoin mining equipment in Q4 2024. Crypto equipment demand increased threefold in comparison with the same quarter in 2023. Addressing the need for a crypto equipment registry, the Russian government stated: “It is important to adapt the law ‘On Mining’ to the current situation, in particular, based on practical experience, to formulate clearer criteria for classifying activities specifically as the production of digital currency.” While efforts are being made to get a firmer grasp on unauthorized mining in areas that are being impacted by power shortages, work is also being done to use crypto mining as a mechanism to fully exploit surplus energy.  Last month, it was revealed that Russian state-owned power company Rosseti is evaluating Bitcoin mining as a means through which surplus energy can be utilized in low-demand regions. In a separate development, the TASS news agency also reported on Feb. 3 that crypto miners are now in a position to report their earnings via online accounts with Russia’s Federal Taxation Service (FNS). The TASS report stated: “A new function has appeared in the personal accounts of taxpayers. With the help of the online service, users can now send information about receiving digital currency to the tax authority.” The feature appears once the registered user submits an electronic signature. 

Chinese Insurer Founds 2 Crypto Funds in Hong KongChina has been in the headlines lately as the country continues to take a growing interest in cryptocurrencies in spite of a previous clampdown. According to a blog post published last Thursday, a Chinese state-owned insurance company launched two crypto funds, further solidifying the country’s stance on digital assets.©Pexels/Charlie JinChinese crypto resurgenceChinese insurance behemoth, the China Pacific Insurance Company (CPIC) has launched the two cryptocurrency funds in Hong Kong. The funds will be managed by the firm’s asset management unit, CPIC Investment Management, and have been established in conjunction with venture capital and blockchain start-up investment firm, Waterdrip Capital. Furthermore, they will focus on investments in cryptocurrencies and related assets, with a particular emphasis on Bitcoin and Ethereum.Waterdrip was originally founded in Shanghai in 2017, and has previously invested in the Chinese crypto mining sector, together with other blockchain-related projects. The move comes as China continues to make strides towards becoming a leader in the digital currency space. Last year, the country’s central bank announced plans to create its own digital currency, which is currently in the testing phase. The move is seen as a way for China to gain more control over its financial system and reduce its reliance on the US dollar.Hong Kong crypto hubChina’s growing interest in cryptocurrencies has been driven in part by the country’s rapidly growing tech industry. Companies like Tencent and Alibaba are leading the way in digital payments and e-commerce, and many believe that cryptocurrencies will play a key role in the future of online transactions.The launch of these two crypto funds by a state-owned insurance company is just the latest indication of the formative development of Hong Kong as a crypto hub. Its believed that China is treating crypto development in Hong Kong as a manner in which it can determine how digital assets can be utilized subsequently on mainland China.It’s not the first time a state-owned entity has gotten involved in cryptocurrency. Earlier this year, a state-owned company launched two crypto funds in Hong Kong, with a focus on investing in Bitcoin and other digital assets.Previous crypto crackdownDespite China’s growing interest in cryptocurrencies, the country has also taken a tough stance on the industry in the past. In 2017, the Chinese government banned initial coin offerings (ICOs) and shut down local cryptocurrency exchanges. However, it appears that the country’s stance is shifting, with the launch of these two crypto funds serving as a clear indication of China’s growing interest in digital assets.While China’s embrace of cryptocurrencies is seen by many as a positive development for the industry, there are also concerns about the country’s growing influence in the space. With China’s central bank developing its own digital currency, some worry that the country could use it to further extend its financial reach and influence around the world.Despite these concerns, it’s clear that China’s interest in cryptocurrencies is only growing. As the country continues to make strides in the digital currency space, it will be interesting to see how it impacts the global economy and the future of finance.

Korbit relists blockchain gaming token WEMIXKorbit, a major fiat-to-cryptocurrency exchange in South Korea, is relisting WEMIX, a cryptocurrency issued by blockchain gaming company Wemade. Korbit’s decision follows in the footsteps of its local competitors, Coinone and Gopax, who have also recently reinstated WEMIX. The WEMIX token is used to pay transaction fees, stake and vote on governance proposals.Starting at 1:00 a.m. UTC on Dec. 7, Korbit users gained the ability to create a WEMIX wallet and deposit the token on the exchange. Trading and withdrawals of WEMIX will be enabled at 3:00 p.m. UTC on the same day.The Korbit exchange only accepts WEMIX deposits originating from the Wemix network. Deposits of WEMIX sent from other blockchain networks, including BNB Beacon Chain, Ethereum and Klaytn, may be processed improperly and carry the risk of becoming irretrievable.Photo by Asa E-K on UnsplashDecision reversal and underlying rationalesOver a year ago, the Digital Asset eXchange Alliance (DAXA), a coalition of the five Korean fiat-to-crypto exchanges — Upbit, Bithumb, Coinone, Korbit and Gopax — collectively decided to delist WEMIX from all their platforms. This decision was based on several concerns, including unreliable disclosure of the token’s circulating supply, provision of inadequate and misleading information to investors and inconsistencies in the data provided during the explanation period. These issues collectively eroded trust in the company.However, Korbit has determined that the previously identified issues with WEMIX have been addressed. The exchange observed that the circulating supply of WEMIX has been reduced to a level that aligns with the schedule initially submitted to DAXA. The launch of the WEMIX mainnet rectified the discrepancy where the circulating supply displayed on crypto data platforms like CoinMarketCap was twice the actual figure. Additionally, the collateral that Wemade had deposited in decentralized finance (DeFi) protocol Kokoa Finance has been recovered.The crypto trading platform also believes that Wemade has resolved the problem of providing misleading information to investors by making corrections to its third-quarter earnings report.Regarding data fallacies, Korbit holds the view that the game publisher has taken steps to address the inaccuracies in the data previously provided to the alliance. These efforts to reduce uncertainty and fulfill disclosure responsibilities include several measures: Wemade now live-updates the circulating supply of WEMIX and other pertinent details on its official blog. The gaming company has also entrusted the management of its non-circulating WEMIX supply to Ceffu, the sole institutional custodian for Binance, a global crypto exchange. Furthermore, Wemade now makes announcements about token movements whenever they occur.Restrictions imposed on GopaxMeanwhile, Korbit stated its commitment to complying with voluntary regulations and common listing guidelines established between DAXA members. This statement is particularly noteworthy in light of the recent developments with Gopax. Gopax faced the three-month suspension of its voting rights from DAXA, following the relisting of WEMIX.