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Should You Leave Australia To Avoid Paying 47% Tax On Crypto Gains?

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Should You Leave Australia To Avoid Paying 47% Tax On Crypto Gains?

In part one of our special on how to avoid Australia’s massive hike in capital gains taxes on crypto in July next year, we looked at borrowing against your Bitcoin or setting up a self-managed super fund (SMSF), among four ways to mitigate the impact of the taxes.

While an SMSF offers Australians the greatest tax advantages, it’s only suitable for older investors, or those who are willing to lock up their crypto for decades until they retire. For younger investors, moving overseas could reduce your future crypto tax bills to 0% — but there are less drastic options to save on tax too. 

5. Leave Australia and move to country with 0% CGT

Australia’s impending tax changes have already inspired crypto king Fred Schebesta, founder of Finder.com, to become a tax exile in Singapore. 

From July, the top rate on real, long-term crypto gains will increase to 47%, minus the effects of inflation on the cost basis. 

For upwardly mobile, single crypto investors, the “nuclear option” of leaving the country to avoid giving almost half their gains to the government will look increasingly attractive.
Many of the world’s top crypto hubs — Singapore, Portugal, Malta, UAE and Hong Kong — offer 0% capital gains taxes on long-term crypto gains in an attempt to attract wealthy investors.

Also read: The one thing these 6 global crypto hubs all have in common…Should you leave Australia to avoid paying 47% tax on crypto gains?

Ben Simpson, founder of crypto advisory service Collective Shift, says some of his members have already pulled the trigger. 

“Yeah, we’ve had a number of people that have sort of packed up and gone basically, ‘f—- this. I’m off to the Bahamas or whatnot,’” he says. 

Andrea Yuen, CEO of Sywftx, says she is keenly aware of the tax advantages of living outside of Australia.

“I lived in Singapore for 30 years. I do miss my no capital gains tax,” she says. But she didn’t move there for tax reasons, and cautions that uprooting your life to avoid a bit of tax is a pretty drastic step.

“I would never say that we should structure our lives only to think about tax outcomes,” she says. “There are many other wonderful reasons why I’ve come back to Australia and continued to live in Australia.”

“I think if you’re moving countries solely based on a decision about whether you know your crypto is going to get taxed, then you probably need to think a little bit harder.” 

Simpson has considered the idea, given he already spends half the year in America looking after Collective Shift US, but looking into the rules put him off.

“You really have to cut pretty much all ties to Australia. So if you are genuinely happy to leave and don’t want to come back for the majority of the year, and cut your healthcare and cut all your ties back to Australia, then that is a strategy.” 

“Bitcoin Jesus” Roger Ver gave up his US residency in 2014, and ten years later he was arrested and charged over failing to correctly report the value of his crypto holdings and paying exit taxes. He was forced to pay almost $50 million to make the case go away.

Similarly, Australians leaving the country face a hefty exit tax on departure, which may require selling a decent amount of your stack.  

“They tax you on the way out. If you’ve got a lot of gains or profits you’re sitting on, they’ll catch you when you leave,” says Adrian Forza, director of Crypto Tax Australia. “Arguably it’d be bigger in the future, but it’s still difficult to stomach selling off everything to leave.”

Forza explains you also have the option of paying the Australian taxes later on, but on the full value of the gain after you sell the asset. So if you expect Bitcoin to go up, you’d be best off paying the exit tax now.

Related: Australia releases draft bill to adopt OECD crypto tax reporting framework

6. Set up a company to benefit from the company tax rate

Simpson is only 27 and the prospect of locking up his crypto portfolio for forty years holds little appeal. Instead, he trades and holds crypto via a company to benefit from the 25% company tax rate. 

Running a single-person company is easier than you might think, but not worth the hassle unless you have a reasonable amount of capital and intend to make a lot of trades. It requires registering the company with ASIC and paying an annual fee, paying an accountant to produce financial statements and/or an annual company tax return and mucking about with payroll software and payday superannuation contributions if you plan to pay yourself an income. You can pay yourself a dividend at any time when you need some money. 

“The company structure is good if you’re wanting to cap the capital gains tax at the company tax rate,” he says, but notes there’s a big catch: when you take funds out of the company, you need to pay the difference between the 25% company tax rate and your personal tax rate.

“You still need to pay your marginal income tax rates. If you’re on the top tax rate, like 47%,” he says.

You may be wondering: if you have to pay your income tax rate anyway, which will equal the CGT rate from July, what is the benefit in paying a few thousand dollars and filling out a bunch of paperwork to run a company?

Simpson explains that the key advantage is that while you are building up your crypto portfolio by trading in and out of different coins, you only pay the 25% company rate for each sale. That means paying up to 22% less than CGT each time you exit a position, which builds into an even more significant saving over time.

“Instead of paying 47% because you’ve just taken the profits… then the CGT amount is only 25% — the company tax rate. So when you put that money back in, you’ve got more capital to play with.”

However, if you don’t trade enough, it might be taxed at 30%.

Forza says the advantages are greater for those on higher incomes. 

“If you’re a single person, then you’ve got a company, and you’re earning, you know, 150 grand a year, um, or over 200, then yeah, definitely a company would be the way to go, especially now that the CGT discount has gone out the window.”

It’s not a particularly useful structure if you just plan to just hold your Bitcoin, however. There are some potential advantages but arguably not enough of them to be worth the hassle.

7. Just get out of crypto entirely to avoid high CGT rates

The 50% CGT discount has been replaced by an indexation discount, which takes into account how much inflation affects how much you paid originally for an asset. 

This means that investors who buy and hold dividend stocks or index funds for a long period will receive a bigger CGT discount. So should you drop crypto and buy a bunch of ETFs so you can pay less tax?

The short answer is no: the new CGT ‘discount’ is largely an illusion, as it simply measures your real gain after inflation.

Simpson says crypto has been hit hard by the CGT changes, but it still offers the best risk-reward opportunity.

“For us in Bitcoin, the growth … heavily outweighs the tax considerations. In my point of view. If you’ve got the right portfolio, that can give you the right upside.”

History suggests that despite volatility and years-long bear markets, the return from investing in Bitcoin over time would still leave investors ahead of ETF investors even after paying more tax. Investing further down the risk curve with altcoins however, can either pay off handsomely or end in total disaster. 

JPMorgan assumes that Bitcoin will compound by 10% on average in the years ahead. (Source JPMorgan/Bitcoin Archive)

Simpson says he convinced his younger sister, who is a basketball player on a low income, to invest in Bitcoin two years ago rather than putting money into a savings account.

“She’s up like 40% or 50% in her portfolio and she’s like, ‘wow, this is going to get me so much further towards buying a house one day than sitting in cash and losing 10% [to inflation over time],” he says. 

“That’s why I think Bitcoin makes so much sense to accumulate. And the tax considerations are not really there for most people I think.”

Yuen says crypto is one of the few asset classes that offers investors the chance to make double-digit returns in a few months, or to potentially double their money. Even after paying the new taxes, crypto investors with those sorts of returns will still be ahead.

“My dad always said to me, it’s a good thing, if you’ve made profits, you should be happy to pay some tax on it.” 

Well maybe not happy about it, but you’ll still be making money.

Also read: How Aussie Bitcoiners can avoid 2027’s shock CGT hike, Part 1

Why the UK Needs Stablecoin Freeze Rules

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Why the UK Needs Stablecoin Freeze Rules

Opinion by Lissele Pratt, co-founder, Capitalixe

Last weekend, the Federal Bureau of Investigation claimed that North Korea was behind the $6.3 billion Binance hack, which analysts are calling the largest heist on record.

While I’ve read a lot about the scale of this heist, far less has been said about what went right.

Because while it is true that the perpetrators stole $6.3 billion, they haven’t actually been able to hold on to a significant proportion of those takings. $2.85 billion of the funds has been frozen.

The reason for this comes down to what the stolen money was comprised of. Of that $2.85 billion, 94% was held in stablecoins.

While this hack was terrible news all around, it did show that centralized control, oftentimes criticized by crypto purists, might actually be one of the strongest tools we have against crypto crime.

Because, unlike other assets, stablecoins can be frozen by their issuers, giving victims a real chance to stop stolen money reaching the wrong hands.

It does, however, raise an uncomfortable question. If private companies have the power to freeze billions of dollars in assets, who decides when they should be allowed to use it?

The United Kingdom now has the opportunity to do just that.

The race to get rid of stablecoins

To get an idea of just how much the freeze mattered, you just have to look at what the hackers did within the first hour of their heist.

Related: Binance, Polymarket seek Polygon hard fork to recover $6.8M in stolen crypto

Clearly, they understood that there was a very limited window to move the stablecoins before anyone could stop them. So that’s exactly what they did.

What was frozen from the Binance hack. Source: Elliptic

Less than an hour after the hack began, they had already sold $325 million worth of stolen USDT (Tether’s stablecoin) for Ether. The reasoning behind this was to swap an asset that could be frozen with one that could not.

Luckily, stablecoin issuers were quick to act, with Tether’s first major freeze coming just 37 minutes after the stolen funds reached the hackers’ main wallet, and Circle following three minutes later, blocking the movement of USDC.

Without Tether and Circle intervening, far more of the funds could have ended up beyond their reach.

We’re yet to agree on the rules

The freeze, to its credit, worked for the most part because a handful of companies decided, in real time, to use it.

The problem is that there still isn’t an agreed standard that outlines when a freeze is justified or how quickly the response needs to be, and we’re beginning to see the consequences of not having these answers.

For instance, Circle is facing a proposed class action from Drift Protocol investors who allege it failed to freeze around $230 million in stolen USDC after the April hack. Their argument is that Circle could have stopped the money from moving, but didn’t act in time.

Meanwhile, Tether is being sued in New York by two businessmen who claim it froze millions of their assets months before a seizure warrant existed. It’s important to mention that Tether has responded to this case, calling these allegations baseless.

Working in payments and banking, it’s not uncommon for me to see traditional banks freeze money and accounts. Due to this, you may argue that if a bank can do this frequently, why shouldn’t a stablecoin issuer be able to?

Stablecoin freeze timeline. Source: CertiK

My argument isn’t that they shouldn’t. But banks don’t get to decide they want to freeze assets out of nowhere. There’s usually a legal trigger behind their decision, as well as a way to challenge it.

Stablecoin issuers now hold the same power while having to act faster and across borders. So it’s about time they’re given some structure.

Britain can fix this

There is, however, a caveat with regulating stablecoin issuers. Tether and Circle, two of the largest issuers, aren’t based in the UK, so British regulators can’t simply tell them what to do.

Related: Binance traces $6.3B hack to fake job interviews, compromised AI tool

What Britain can control, though, is which stablecoins UK customers are allowed to buy, and they’ve already begun doing so.

In June, the Financial Conduct Authority (FCA) published its cryptoassets regime. Under it, UK trading platforms must carry out due diligence and publish a disclosure document before they list a coin, and that includes stablecoins issued overseas. It comes into force on 25 October 2027.

The Bank of England is finalizing its Code of Practice for systemic stablecoin issuers by the end of this year. It covers stablecoins used widely enough for payments to matter to UK financial stability.

Neither framework establishes the clear obligations around freezing stolen funds that I believe are necessary. But both are still taking shape, giving the UK the perfect opportunity to address this gap now, rather than trying to retrofit new requirements later.

Two conditions for a UK listing

So here’s a solution that I believe would work. Before a stablecoin can be sold on a UK platform, its issuer should have to agree to two conditions.

The first being that it is contactable and ready to act. Tether and Circle did exactly that last week, but the victim was the world’s biggest exchange. A small UK platform should get the same response.

I work with a number of smaller crypto businesses that don’t have Binance’s profile or a direct line to Tether. Under the current system, they’re the ones most likely to be left waiting.

The second is that there needs to be a clear timetable for what happens next. If an issuer freezes funds, it should notify the National Crime Agency that same day. The freeze should then expire if there hasn’t been a court order put out to keep the wallet frozen.

Neither of these are extremely controversial takes. They’d give law enforcement a chance to intervene when money is stolen and also protect people from having their assets frozen indefinitely, without legal grounds.

The Binance hack has shown us that stablecoins can give victims of crypto crime a chance to stop stolen money before it’s gone for good. That shouldn’t be a privilege reserved only for the world’s biggest exchanges.

Magazine: Can decentralized phone networks power the AI revolution?

Elysium Layer 2 Targets 600x Faster Trading on Hyperliquid

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Elysium Layer 2 Targets 600x Faster Trading on Hyperliquid

Kinetiq has launched Elysium, a high-performance Layer 2 blockchain designed to bring faster trading, automated market making and decentralized financial applications to the Hyperliquid ecosystem.

The network, which opened its public mainnet on November 9, is built using the Arbitrum Platform and infrastructure operated by Conduit. It settles transactions to HyperEVM, Hyperliquid’s smart-contract environment, while allowing developers to run computationally intensive applications separately from HyperCore, the exchange’s core trading engine.

The launch comes as blockchain developers increasingly turn to specialized execution environments to support professional trading systems that require lower latency, deeper liquidity and more sophisticated financial infrastructure.

Elysium Targets 600x HyperEVM’s Throughput

Elysium targets block production every 100 milliseconds and execution capacity of 300 million gas units per second.

Kinetiq says that represents 600 times the throughput of HyperEVM’s large-block configuration. However, the comparison measures theoretical gas-processing capacity rather than actual transactions completed. The 300 Mgas/s target was validated in pre-launch load testing, according to the company’s technical documentation, and remains to be demonstrated under sustained mainnet demand.

HyperEVM currently uses a dual-block architecture that balances smart-contract execution with HyperCore’s requirements.

Small blocks process 3 million gas units every second, while larger blocks carry 30 million gas units approximately once every minute. The design helps preserve HyperCore’s performance but limits the capacity available for sustained high-frequency activity.

Elysium attempts to remove that bottleneck without requiring applications to leave Hyperliquid’s financial ecosystem.

“Hyperliquid has proven that onchain markets can compete with the best venues in the world,” said Justin Greenberg, CTO and co-founder of Kinetiq.

“Elysium gives builders the throughput and capacity to put programmable execution right next to that liquidity, without leaving the ecosystem or holding a new token. Every application that succeeds on Elysium makes the broader Hyperliquid economy significantly larger.”

The network supports high-frequency trading systems, professional market-making automated market makers, spot exchanges, lending, derivatives and token-launch infrastructure.

Arbitrum Technology Connects Elysium to Hyperliquid Liquidity

Rather than building an entirely new blockchain architecture, Kinetiq developed Elysium using Arbitrum Orbit, Nitro and ArbOS.

Conduit operates the network infrastructure, while its Ethereum Virtual Machine compatibility allows developers to deploy Solidity and Vyper smart contracts using existing tools, including Foundry, Hardhat and ethers. This reduces the technical changes required to migrate Ethereum-compatible applications.

HYPE serves as the native token for transaction fees.

Users can transfer HYPE between HyperEVM and Elysium on a one-to-one basis without introducing a separate wrapped gas token. ERC-20 assets can also move between the networks, while tokens launched on Elysium have a pathway toward HyperCore spot-market listings.

The arrangement is intended to limit liquidity fragmentation, a persistent challenge in decentralized finance where users often need to move funds between separate networks and trading venues.

“Hyperliquid has established itself as the home of perpetual markets. With Elysium, that vision expands towards becoming the home of onchain finance,” said Andrew Huang, CEO and founder of Conduit.

Kinetiq Allocates 50% of Revenue to KNTQ Buybacks

Elysium introduces a revenue-sharing structure that ties network activity to Kinetiq’s token economy and application developers.

Kinetiq has committed 50% of sequencer revenue to purchasing KNTQ tokens on the open market, with purchased tokens subsequently burned through Hyperliquid’s Assistance Fund. Another 25% is reserved for applications generating network activity, while the remaining 25% supports treasury operations.

Developers can direct their revenue allocation toward liquidity incentives, trading rebates and other user-acquisition programs.

Unlike conventional ecosystem grants, which typically provide upfront funding, the model creates a recurring financial incentive linked to applications’ consumption of network capacity.

However, the economic benefits will depend on whether Elysium attracts enough activity to generate meaningful sequencer revenue.

Kinetiq also expects the network to strengthen Hyperliquid’s broader economy. Additional USDC liquidity could expand HyperEVM’s stablecoin reserves, while arbitrage between Elysium markets and HyperCore order books could generate further trading volume and fees. These remain prospective benefits rather than demonstrated outcomes.

Direct HyperCore Trading Integration Is Still Ahead

One of Elysium’s most significant proposed capabilities is not available at launch.

Kinetiq plans to introduce direct access to HyperCore order books, prices, balances and trading positions through an ArbOS upgrade expected approximately four weeks after mainnet activation. Smart contracts will eventually be able to retrieve market data without relying on external oracle feeds.

The planned integration would also allow contracts to submit orders through revocable, trade-only agents connected to users’ HyperCore accounts.

Kinetiq targets approximately 100 milliseconds from an order instruction to placement on HyperCore. That could support automated market makers that continuously adjust quotes, lending protocols that react to market prices and investment vaults that hedge positions directly through the exchange.

However, faster execution introduces technical and operational trade-offs.

Elysium launches with a single sequencer, permissioned validation and one Conduit-operated data-availability server. The network provides a fallback that posts transaction data to HyperEVM, but a broader data-availability committee and permissionless fraud proofs remain future upgrades. Standard optimistic withdrawals also carry a challenge period of approximately 5.5 days.

Competition Intensifies Among Specialized Blockchain Networks

Elysium enters a market where financial platforms are increasingly deploying purpose-built blockchain infrastructure.

Robinhood launched the public mainnet of Robinhood Chain on July 1, using the Arbitrum Platform to support tokenized assets, decentralized finance and trading applications. The network includes integrations with Uniswap, Alchemy and other infrastructure providers, demonstrating how established financial platforms are adopting customizable blockchain environments.

Competition is also intensifying among decentralized perpetual-futures exchanges.

Hyperliquid processed $1.82 billion in perpetual-futures trading volume during the 24 hours ending November 8, accounting for 30% of activity across exchanges tracked by Castle Labs. Lighter followed with $1.23 billion, while GRVT and Variational recorded $571.3 million and $564.3 million, respectively.

Hyperliquid nevertheless maintained a substantial lead in outstanding derivatives positions.

Its $7.31 billion in open interest represented 57% of the tracked decentralized perpetual-futures market, ahead of Aster’s $1.38 billion and Variational’s $841.7 million. The figures show Hyperliquid’s established liquidity position but also highlight growing competition for trading activity.

That existing liquidity could provide Elysium an advantage over networks attempting to establish trading activity from scratch.

Read Also: This is the First U.S.-Chartered Depository Bank to Offer Stablecoin Invoicing

Disclaimer: The information provided on AlexaBlockchain is for informational purposes only and does not constitute financial advice. Read complete disclaimer here.

Coinbase Receives OCC Approval for National Trust Bank Charter

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Coinbase Receives OCC Approval for National Trust Bank Charter

Coinbase’s national trust bank charter took effect on Friday, according to the US Office of the Comptroller of the Currency (OCC).

The applied for the charter in October 2025 and received preliminary approval in April 2026, according to the OCC’s filing record. The charter allows Coinbase National Trust Company to hold digital assets on behalf of clients as a fiduciary, according to the OCC’s preliminary approval letter.

Coinbase plans to offer institutional clients segregated custody accounts, with access to staking, financing and trading through other Coinbase entities, according to its charter application.

Coinbase’s application also outlined plans to explore digital asset payment products and custody services that would allow clients to interact with select smart contracts.

Other crypto companies that received OCC national trust bank charters include Ripple, Circle, BitGo, Fidelity Digital Assets and Paxos.

Crypto.com and Stripe-owned Bridge received conditional approval, while Kraken and EDX Markets are still pursuing charters.

Related: Hyperliquid Strategies seeks futures registration for perps

Binance, Tether and Trump-Linked Firms Face Senate Deadline

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Binance, Tether and Trump-Linked Firms Face Senate Deadline

US Senator Richard Blumenthal gave Binance, Tether and two Trump-linked crypto firms until Jan. 4, 2027, to voluntarily turn over records sought in Senate inquiries.

Failure to meet the January deadline could prompt further action, he warned.

Blumenthal, the ranking Democrat and incoming chair of the Senate Permanent Subcommittee on Investigations, sent follow-up letters Thursday to Binance, Tether, World Liberty Financial and Fight Fight Fight LLC, the company that launched President Donald Trump’s TRUMP memecoin.

The letters asked the companies to begin turning over records by Nov. 30. The Jan. 4 deadline falls a day after Democrats are due to take control of the Senate.

Blumenthal wrote that the subcommittee would consider “alternative measures to obtain compliance” if the companies miss the January deadline. The panel’s current rules allow its chair to issue subpoenas for documents and records.

Cointelegraph sought comment from Binance, Tether, World Liberty Financial and Fight Fight Fight LLC but did not receive responses before publication.

Related: US senator probes Tether after reported deal with ex-Trump crypto adviser

Senate inquiries span sanctions and Trump’s crypto ties

In May 2025, Blumenthal opened an inquiry into potential conflicts of interest involving Trump’s crypto ventures. He sought records from both firms on their ownership, foreign investments and safeguards against conflicts of interest. World Liberty Financial’s lawyers disputed his claims and said the company had no affiliation with Fight Fight Fight LLC.

In June 2026, Blumenthal and four other Senate Democrats called for hearings into a reported $500 million deal for an Abu Dhabi investment firm to buy a 49% stake in World Liberty Financial.

In February, Blumenthal asked Binance for records on transactions linked to Iranian entities and Russia’s shadow fleet. Binance called the underlying reports false in its March reply and said that, to its knowledge, no Binance account had transacted directly with an Iran-based entity. In Thursday’s letter, Blumenthal said Binance still hadn’t turned over any of the requested records.

Blumenthal’s letter to Tether renewed requests for records on the use of USDT by sanctioned entities and on Tether’s dealings with Nxum, a consulting firm co-founded by former White House crypto adviser Bo Hines.

In September, Blumenthal released a report by the panel’s Democratic staff alleging that USDT has become a key part of Iran’s shadow banking network. Tether disputed claims that USDT provides a haven for sanctioned actors, saying it helped authorities freeze nearly $550 million in Iran-linked tokens in 2026.

Magazine: Vitalik ‘pivots’ ETH to store of value, crypto suffers after US midterms: Hodler’s Digest

Greece Approves 10% Crypto Gains Tax Starting in 2027

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Greece Approves 10% Crypto Gains Tax Starting in 2027

Greece’s parliament approved legislation imposing a 10% tax on cryptocurrency gains, establishing new rules for investors as the country prepares to introduce the levy in 2027.

The Hellenic Parliament passed the tax measures Thursday as part of a broader bill covering loan oversight, debt protections and financial market regulation.

The bill introduces a 10% tax on profits from crypto asset sales but exempts investors whose annual gains do not exceed 500 euros ($560), local financial publication Oikonomikos Tachydromos reported Friday. The new framework is scheduled to take effect on Jan. 1, 2027.

The legislation also imposes a 15% tax on income from staking, crypto lending and providing liquidity to decentralized protocols. Using crypto to buy goods or services may also trigger capital gains tax, while swapping one crypto asset for another does not generate taxable gains, the report notes.

Greece’s Ministry of National Economy and Finance first proposed the tax in October. The legislation gives investors 12 months to voluntarily declare previously unreported crypto gains. They must pay the resulting tax within 60 days of filing to avoid penalties and interest.

Related: Greece gets first MiCA entrants as watchdog denies Binance-Lagarde claim

Nigeria Sets Stablecoin Reserve Rules, Bans Algorithmic Tokens

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Nigeria Sets Stablecoin Reserve Rules, Bans Algorithmic Tokens

Nigeria’s central bank has introduced new licensing and reserve requirements for cryptocurrency companies, tightening oversight of stablecoins and digital asset payment services in one of Africa’s largest crypto markets.

The Central Bank of Nigeria (CBN) issued the Regulations for the Operations of Non-Security Virtual Assets on Thursday, establishing rules for stablecoin issuers, crypto payment providers, exchanges, custodians and other covered service providers.

The regulations took effect immediately, though existing operators have 180 days to apply for licenses or authorizations. The CBN said the framework aims to support responsible innovation while protecting consumers and financial stability.

The move follows President Bola Tinubu’s July executive order, which sought to coordinate crypto oversight among Nigerian authorities without changing their existing powers.

Stablecoin issuers face new capital and reserve rules

Under the new regulations, stablecoin issuers must fully back their tokens with reserve assets and maintain an additional buffer equal to at least 2% of their value. At least 40% of reserves must consist of cash or qualifying highly liquid assets.

The rules also set minimum paid-up capital of 10 billion naira ($7.4 million) for naira-backed issuers and 15 billion naira ($11.1 million) for foreign currency-backed stablecoin issuers.

Additionally, companies providing payment-related crypto services, including exchange and custody services, must maintain minimum paid-up capital of 1 billion naira ($742,000).

The regulations also prohibit stablecoins that rely primarily on algorithms rather than eligible reserves to maintain their value, along with tokens that lack enforceable redemption rights.

Nigeria’s crypto crackdown enters a new phase

Nigeria has taken a restrictive approach to crypto trading, previously limiting banking access for exchanges and seeking to restrict peer-to-peer trading using local currency.

The country drew international attention in the crypto industry over its dispute with Binance, the world’s largest cryptocurrency exchange by trading volume.

Binance discontinued its Nigerian naira services in March 2024 amid government scrutiny of crypto trading and allegations of currency manipulation. Nigerian authorities also detained Binance executive Tigran Gambaryan for nearly eight months before dropping money laundering charges against him in October 2024.

More recently, Nigeria’s revenue agency introduced crypto tax collection rules for digital asset platforms and peer-to-peer marketplaces in August 2026.

Magazine: Stablecoins can drain from banks and nations at lightning speed

US Treasury Blocks MEXC Over Alleged $16B in Illicit Transactions

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US Treasury Blocks MEXC Over Alleged $16B in Illicit Transactions

The US Department of Treasury on Friday issued an order to cut cryptocurrency exchange MEXC Global off from the US’ financial system after accusing it of facilitating at least $16 billion in transactions linked to sanctions evasion, cybercrime and other illicit activity.

The Treasury’s Financial Crimes Enforcement Network (FinCEN) asserted that MEXC handled transactions involving sanctioned groups in Iran, Russia and North Korea between May 2021 and May 2026. This included around $1.5 billion in transactions linked to Russian sanctions evasion, according to the official press release.

The order effectively bans US financial institutions from processing money transfers involving MEXC and will take effect 30 days after it is published in the Federal Register. 

“Financial institutions cannot have it both ways: Either you support the Iranian regime, or you have access to the U.S. financial system,” said Secretary of the Treasury Scott Bessent. “Treasury will continue to sever the Iranian regime’s economic lifelines and thwart its desperate attempts to circumvent U.S. sanctions using digital assets.”

The action is part of Operation Economic Outcast, a US Treasury campaign launched in August with aims to cut off financial entities that help Iran evade sanctions.

According to DefiLlama, the exchange held about $4.48 billion in total assets as of Friday. Cointelegraph contacted MEXC for comment but had not received a response by publication.

Related: Binance hack is ‘cyber war,’ TRM Labs executive says

US 401(k) Proposal Could Allow Altcoins In Retirement Plans

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US 401(k) Proposal Could Allow Altcoins In Retirement Plans

Smaller cryptocurrencies could become available in US 401(k) retirement plans under a proposed Labor Department rule, but experts say they may face more challenges than Bitcoin (BTC) and Ether (ETH).

The rule reached the White House for final review on Thursday, according to the Office of Information and Regulatory Affairs. It aims to make it easier for retirement plans to offer alternative investments like crypto, while offering more legal protection for employers and plan managers.

The Labor Department’s March proposal neither specifies which digital assets could be included nor sets a minimum market capitalization requirement. However, it does guide retirement plan managers to consider six factors when choosing: performance, fees, liquidity, valuation, benchmarks and complexity.

The proposal could open the door to more cryptocurrencies in retirement plans, however, it does not guarantee they will be offered. And when it comes to smaller tokens, experts say they could face challenges because of their limited history, liquidity and other risks.

Why smaller cryptocurrencies could face challenges

Teresa Goody Guillén, managing partner at Bellementis PLLC, said Bitcoin and Ether are likely to be the first cryptocurrencies offered because of their established markets and investment products. Bitcoin and Ether are the two largest cryptocurrencies by market capitalization, at approximately $1.5 trillion and $273 billion, respectively, according to CoinGecko data as of 20:01 UTC on Nov. 6.

Still, that doesn’t automatically exclude altcoins, she said. Instead, those managing 401(k) plans would need to show that their investment choices are sensible. 

“The real question isn’t which cryptocurrencies regulators pick – it’s whether an investment meets the same standards of prudence, liquidity, valuation and investor protection as any other retirement option,” Guillén said.

She added that while a digital asset’s market cap matters, it shouldn’t be the deciding factor. “Big doesn’t mean suitable, and small doesn’t mean disqualified,” Guillén said. “Digital assets shouldn’t get special treatment, or be excluded because they use different technology.”

Bernardo Brites, co-founder and CEO of Trace Finance, echoed Guillén sentiment, adding: “Run any token through that list and the answer is short. Bitcoin passes clearly. Ether passes; everything else fails on track record or benchmark before a fiduciary ever gets to market cap.”

Brites explained, in this situation, market cap matters only indirectly. “The practical test is simpler: can a plan committee document a daily, reliable price from a regulated wrapper?” he said. “If not, it is not going in.”

ETFs could come before direct crypto holdings

While the Labor Department’s proposal does not limit crypto investments to exchange-traded funds (ETFs) or managed funds, experts said those products will likely be offered before direct crypto holdings.

“ETFs and managed funds will likely come first because they fit existing custody and recordkeeping systems,” Guillén said. Whereas holding cryptocurrencies directly would raise additional concerns about storage, cybersecurity and pricing, Guillén said. Still, she added that those risks should not automatically rule them out.

Brites also expects crypto investments to become available gradually. He said existing brokerage options would likely come first, followed by standalone ETFs and funds that include small amounts of crypto.

He expects some crypto investment options to become available in 2027, followed by ETFs at larger employers later that year. Crypto could become more widely available in retirement funds by 2028, he said.

“The rule changes the legal risk, not the plumbing, and the plumbing is slower,” Brites said. “White House review can take up to ninety days, then publication, then an effective date typically sixty days later.”

Legal uncertainties remain

Brites further explained that legal uncertainty could also slow adoption. The proposal would offer retirement plan managers some protection from lawsuits, but it would not prevent them from being sued over their investment decisions.

He also warned that future administrations could reverse the rule, a possibility that could make employers hesitant to add crypto to long-term retirement plans.

“The 2022 guidance was reversed in 2025; a fiduciary signing a ten-year plan design has to consider that this rule could be reversed too,” he said. “And with courts giving less deference to agencies, how much weight the safe harbor carries in litigation is itself unsettled.”

Russia Approves Bitcoin, Ether and USDT for Retail Trading

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Russia Approves Bitcoin, Ether and USDT for Retail Trading

Russia’s central bank has finalized rules allowing exchanges to offer Bitcoin (BTC), Ether (ETH) and Tether USDt (USDT) to retail investors starting Nov. 17.

Under the rules, non-qualified investors can purchase up to 300,000 rubles (around $3,700) in cryptocurrency annually through each intermediary, including brokers, asset managers and crypto exchange providers. Qualified investors face no purchase limits, but all investors must pass a mandatory test before trading.

The directive builds on legislation signed by Russian President Vladimir Putin on Aug. 4 establishing a regulated cryptocurrency market under central bank oversight.

A week later, on Aug. 11, the Bank of Russia published its draft regulations, identifying BTC, ETH and USDT as eligible for public trading based on market capitalization, average daily trading volume and at least five years of price history on foreign exchanges.

The law took effect Sept. 1, and the Bank of Russia subsequently authorized Sberbank, the country’s largest bank, to offer crypto exchange services in October.

The regulatory developments come as Moscow Exchange, Russia’s largest securities exchange and a publicly traded company, prepares to launch cryptocurrency trading on Dec. 1, initially offering the three cryptocurrencies through pilot transactions.

Russia to restrict peer-to-peer crypto trading

While expanding access to cryptocurrencies through regulated platforms, Russia is also tightening restrictions on transactions outside those channels.

Direct peer-to-peer crypto trading will be prohibited starting July 1, 2027, while transfers from regulated digital accounts to self-custody wallets are already banned, according to the Bank of Russia. The country also maintains a prohibition on using cryptocurrency to pay for goods and services.

Magazine: Asian crypto exchanges batten down the hatches as hacks surge: Asia Express 

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