MARBLEX Partners with Aptos to Expand Its Multichain Endeavors

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. 

Banking giants in Turkey embrace crypto ahead of legislative changeIt remains unclear what the underlying environment for the further development of the crypto sector in Turkey will be until such time as the country introduces a legislative framework to shape the industry’s development. However, that fact is not deterring a couple of Turkey’s leading banks, who have decided to embrace the digital asset realm.Photo by Michael Jerrard on UnsplashStablex acquisitionOn Monday CoinDesk Turkiye reported that the investment arm of Turkish bank Akbank had acquired local crypto company Stablex. Stablex was founded in May 2020 by Jihad Shannak with the objective of providing professional services, including trading relative to cryptocurrencies in Turkey. Majority shareholding passed to Ak Investment in May of this year, with initial negotiations on the sale having commenced in August 2022.A high-ranking official at Ak Investment expressed the group’s ambition to become a pivotal figure in the digital asset realm, signaling a proactive approach to the evolving financial landscape. Akbank also banks the majority of crypto start-ups based in Turkey.Speaking about the acquisition recently, Akbank executive Mert Erdoğmuş stated:“We have invested in Stablex to respond to the need for reliable and innovative service in the cryptocurrency market. Stablex reflects our values with its experience in the sector, pioneering achievements and professional service approach.”BBVA crypto walletAlongside Akbank’s move into the digital assets arena, Garanti BBVA, Turkey’s second largest private bank, recently unveiled its crypto wallet app. The feature-rich application includes a cold wallet, empowering users to seamlessly send and receive assets such as bitcoin (BTC), USD Coin (USDC) and ether (ETH).The pilot project for the app commenced in August, with the application currently available on iOS. In bringing the app to market, the bank created Garanti BBVA Digital Assets, a dedicated subsidiary firm. Commenting on that development back in August, the subsidiary’s Chairman of the Board, M. Çağrı Süzer, stated:”Our research shows that customers significantly value trust in their crypto transactions and especially on its storage. Hence, we are happy to launch our Crypto Custody Wallet addressing these real needs.”Despite uncertainties, Turkey has firmly established itself in the global crypto landscape, ranking among the top 20 countries in Chainalysis’ Global Crypto Adoption Index 2023. The instability of the Turkish lira in recent years has been a driver for crypto adoption in the country. In recent days, the bitcoin unit price has reached its highest exchange rate level against the local sovereign currency.Earlier this week, it emerged that crypto platform Blockchain.com is adding headcount and has its sights set on expansion into Turkey as one of its growth opportunities.FATF-compliant regulatory approachTurkey’s regulatory stance has been to take a cautious approach. In 2021, the central bank restricted the use of crypto for payments, although a complete ban on digital assets was ruled out by officials.Looking ahead, a government official revealed plans for crypto legislation to be presented to Parliament in November. While details remain scarce, this legislative move aligns with Turkey’s broader strategy to exit the Financial Action Task Force’s (FATF) “gray list.”

While South Korea’s central bank has opted not to accumulate Bitcoin (BTC) at a nation-state level, North Korea has become a major holder of the leading crypto asset, albeit in a very unconventional way. The Democratic People's Republic of Korea (North Korea) is believed to currently be in possession of 13,518 BTC. That’s according to data compiled by the blockchain analytics firm Arkham Intelligence. Arkham has labeled the holding as belonging to the notorious North Korean hacking organization Lazarus Group. It’s been alleged by many observers over recent years that Lazarus is controlled by the North Korean government. Photo by Vasilis Chatzopoulos on UnsplashOn this basis, it would appear that North Korea now has a larger Bitcoin holding than the Bitcoin-friendly jurisdictions of Bhutan and El Salvador. The Kingdom of Bhutan holds 10,635 BTC through Druk Holdings and Investments (DHI), the commercial arm of the Royal Government of Bhutan.  Meanwhile, El Salvador holds 6,119 BTC. Bhutan has been accumulating Bitcoin as a consequence of Bitcoin mining activity carried out by the government in partnership with Singapore-based Bitcoin mining firm Bitdeer and others within the Asian country over recent years. El Salvador made a commitment to buy Bitcoin on an ongoing basis following its recognition of the digital asset as legal tender back in 2021. Based on Bitcoin pricing at the time of writing, Arkham’s data suggests that North Korea currently holds Bitcoin with an overall value of around $1.14 billion. It’s believed that North Korea’s overall holdings have been bumped up recently following a $1.4 billion hack of global crypto exchange Bybit last month. According to crypto data analysis firm Coin Metrics, the hack stands as one of the largest of all time.  Arkham’s data suggests that North Korea now has the third largest nation-state holding of Bitcoin, with the U.S. in first place, with 198,109 BTC, and the UK next with a holding of 61,245 BTC. Besides Bitcoin, the Lazarus Group is understood to be sitting on ETH, BNB, DAI and BUSD worth in the region of $30 million. In the immediate aftermath of the hack, the hackers moved to swap out some of the stolen Ether (ETH) for Bitcoin via the THORChain decentralized liquidity protocol. South Korea not building Bitcoin reserveWhile North Korea appears to have accumulated Bitcoin at the nation-state level through nefarious means, the Republic of Korea’s (South Korea) central bank has given an indication that it currently has no plans to accumulate Bitcoin.  According to a recent local media report, the Bank of Korea (BOK) responded in writing to a query from a Korean parliamentarian, outlining that there is no plan currently to develop a Bitcoin reserve or to stockpile Bitcoin at a national level.  The BOK is understood to have cited Bitcoin’s price volatility as a major concern. Additionally, the central bank outlined that Bitcoin doesn’t conform to the International Monetary Fund’s (IMF) guidelines relative to foreign exchange reserve management.