This week, incoming US President Trump’s promise to ease crypto regulations caused a surge in demand for Bitcoin and Ether ETFs, the EU took another step towards launching a digital Euro when the ECB published its second progress report, South Korean regulators again postponed a proposed 20% tax on crypto traders, Crypto firm DWF Labs opened its new HQ in Abu Dhabi, and Coinbase pre-emptively pulled out of the Turkish crypto market.
Read more about each of these stories below.
Trump’s vow to ease US crypto regulations sees Bitcoin & Ether ETFs soar
In the wake of US President-Elect Donald Trump’s election victory and his promise to scale back regulations hampering the crypto industry, the appetite for Bitcoin and Ether exchange-traded funds (ETFs) has surged.
Citing Bloomberg data, the Economic Times reported that Bitcoin ETFs achieved a ‘net inflow’ of $6.5B in November 2024, while Ether ETFs attained $1.1B during the same period. Ether ETFs also broke their record for daily subscriptions on November 29, with a net inflow of $333M on that day. The rising interest in Ether over November could point to a broader and more speculative demand for crypto since Trump’s victory on November 5.
Bitcoin tokens meanwhile neared $100K in value in November, before dropping to under $93K. On December 1, it traded at $96,326K, while Ether valued at $3,672 on the same day.
Among Trump’s crypto policies are scrapping out-going President Biden’s crackdown on the industry, installing ‘friendly regulators’, and implementing a Bitcoin stockpile for the US government.
Citing CoinGecko data, The Economic Times reported that the crypto market has leapt by $1,2TN since Trump was elected.
Read more on this story at The Economic Times.
EU publishes second progress report on Digital Euro launch
In the EU, the European Central Bank (ECB) took another step forward towards a possible October 2025 decision to launch the next phase of preparations for implementing the region’s central bank digital currency (CBDC) by publishing it’s second progress report on December 2, 2024.
Among the highlights of the report were:
- Following widespread consultation with multiple stakeholders, the ECB updated the digital Euro scheme rulebook. This was introduced to align the laws of how the CBDC will be governed in the region when implemented.
- The ECB furthermore initiated a process to select service providers for the different aspects of the digital Euro and the services related to it via a tender process.
- The ECB additionally collaborated with national banks and relevant government agencies to work out protocols for implementing and managing digital holding limits in a way that improves user experience and sustains financial stability.
Although the ECB report noted that the issuance of the CBDC can only be considered once the legislative framework is secured, it also emphasized its commitment to continuing “working closely with all stakeholders involved and to regularly communicate project developments to the wider public, engaging with all euro area citizens.”
Read more about this story at European Central Bank.
South Korean regulators postpone 20% crypto tax to 2027
South Korean financial regulators have agreed to postpone implementing a proposed 20% tax for crypto traders from 2025 to 2027. This followed party political debate between the Democratic Party, who previously were opposed to the delay, but changed tack, and the People’ Power Party (PPP), who were in favor of the postponement.
The law itself will impose a 20% tax on crypto traders. It carries an extra 2% local tariff on profits of over 2.5M South Korean Won (KRW), worth $1,781. Some crypto exchanges have criticized the latter tax, citing that it will reduce trading volumes.
This is the third time that the South Korean government has postponed the virtual asset tax bill, which was first introduced in 2020. Although a National Assembly vote on the tax proposal bill was scheduled for December 2, 2024, both the DP and PPP had already agreed to the postponement.
Read more about this story at Crypto News.
Crypto venture capital firm DWF Labs moves head office to Abu Dhabi
DWF Labs, a Web3 venture capitalist and cryptocurrency business, is setting up its new headquarters in Abu Dhabi. The company already has a presence in the UAE with its Dubai office, along with those in Singapore and Switzerland.
CEO and founder Andrei Grachev announced the move on X on December 2, 2024, stating that it was made “in order to build a strong presence in the Middle East and run more RWA [real world assets] and financial services there.”
DWF Labs, founded in 2022 and with a portfolio worth between $72B and $77B, will join many other similar firms in the Abu Dhabi Global Market (ADGM) economic zone, including Blockdaemon, M2, Laser Digital, QCP Capital, and BlackRock. It is not yet clear how DWF Labs’ role in Abu Dhabi will impact its Dubai office.
Read more about this story at Coin Telegraph.
Coinbase halts pre-application to trade in Turkey market
The US-based crypto exchange Coinbase abruptly halted any plans to enter the Turkish crypto market. This was made clear when, on November 29, 2024, the Turkish Capital Markets Board published a new list of fourteen virtual asset businesses making liquidation declarations.
Coinbase formerly began its pre-application process to enter the Turkish market in August 2024, just four months before the updated list was released. The company has not yet commented on why it made the decision.
Another significant entity on the list was QNB Digital Assets, a part of the Qatar National Bank in Turkey. Meanwhile, the Turkish Capital Markets Board also published the list of the 77 active crypto license applications.
Read more about this story at Turkey Today.
