March 11th, 2025

Crypto firms spent $134M on 2024 US elections, raising influence concerns

Cryptocurrency companies spent more than $134 million on the 2024 US elections, fueling concerns about their growing political influence and potential risks to regulatory stability, according to a report by the Center for Political Accountability (CPA).

The growing connection of crypto firms with US politics is raising newfound concerns for regulators, investors and the wider financial system, according to a report released by the Center for Political Accountability (CPA).

Cryptocurrency firms shelled out a cumulative $134 million on the 2024 US elections in “unchecked political spending,” which presents some critical challenges, the March 7 report stated.

“While the companies making these contributions may be seeking a favorable regulatory environment, these political donations further erode public trust and expose companies to legal, reputational, and business risks that cannot be ignored,” the report added.

Cryptocurrency regulation has taken center stage over the past week following a historic executive order from US President Donald Trump to create a Strategic Bitcoin Reserve ahead of the first White House Crypto Summit on March 7.

Fairshake, a political action committee (PAC) backed by major crypto firms including Coinbase, Ripple and Andreessen Horowitz, was one of the largest contributors, spending more than $40 million to support candidates aligned with pro-crypto policies.

Fairshake and affiliated PACs were active in key congressional races, attempting to shape legislation favorable to digital assets.

“As the industry continues to seek influence through vast contributions and opaque financial maneuvers, the risks of instability, regulatory backlash, and public distrust only grow,” the report said.

The influx of crypto money into politics did not go unnoticed by regulators. In August 2024, the consumer advocacy group Public Citizen filed a complaint with the Federal Election Commission (FEC), alleging that Coinbase’s corporate contributions to Fairshake and the Congressional Leadership Fund constituted a violation of federal election law due to their status as a federal contractor.

Coinbase has committed an additional $25 million to Fairshake for the 2026 midterm election cycle.

*Coinbase commits $25 million to Fairshake. Source: Coinbase*

“The stakes are too high for us to stand on the sidelines, and that’s why we at Coinbase are proud to help do our part,” the company wrote in an October 2024 blog post.

Crypto’s political donations may be necessary for regulatory clarity

Despite the risks highlighted by the report, some regulatory experts see the donations as necessary for advancing more innovation-friendly regulations.

“As someone deeply involved in crypto, I see this spending as necessary for regulatory clarity, crucial for stability and growth,” according to Anndy Lian, author and intergovernmental blockchain expert:

“It seems likely to boost investor confidence by reducing uncertainty, as seen in pro-crypto candidate wins boosting market sentiment, like bitcoin’s post-election high.”

Still, risks, including “regulatory capture,” where the interests of large firms take priority, may present challenges and erode crypto investor trust. Still, this is part of the organic growth of the emerging crypto industry, Lian said, adding:

“The crypto community’s transparency and decentralization might mitigate this, ensuring fair regulations. While controversial, I don’t find it problematic, viewing it as the industry’s maturation, though public backlash could destabilize politics if seen as buying favor.”

The debate over crypto’s role in politics follows the high-profile collapse of the Libra (LIBRA) token, a memecoin endorsed by Argentine President Javier Milei. The project’s insiders allegedly siphoned over $107 million worth of liquidity in a rug pull, triggering a 94% price collapse within hours and wiping out $4 billion.

Over 100 governmental fraud complaints have been opened in Argentina since the Libra memecoin’s scandal, illustrating the risks of a country’s executive branch promoting “any kind of unregulated security,” the CPA’s report states.

Source: https://cointelegraph.com/news/crypto-firms-134m-election-spending-regulatory-concerns

Anndy Lian

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

www.anndy.com

j j j

March 7th, 2025

Thai Police Raid Five Crypto Firms, Arrest 11 in Crackdown

Thai police have raided the offices of five unlicensed cryptocurrency firms, arresting 11 employees as part of a wider crackdown on illicit crypto-related activities within Thailand.

Officers from the Economic Crime Suppression Division (ECD) had received warrants to search the premises of five companies operating in the provinces of Nakhon Pathom, Samut Sakhon and Bangkok.

ECD commander Thatphum Jaruprat said that the 11 arrested individuals included a mix of executives and less senior employees, with police also seizing six computers and other evidence.

An investigation by the ECD had determined that the arrested individuals had been illegally operating e-money firms with a combined annual turnover of approximately one billion baht, or $29.3 million.

The raided firms had allegedly acted as intermediaries for local investors wishing to buy investment products sold overseas, requiring customers to transfer money into e-wallets in order to complete the cross-border purchases.

Thailand strictly regulates forex-based e-money businesses, with its 2017 Payment System Act requiring all such enterprises to register and secure licensing.

Yet according to the ECD, the firms’ failure to register created a money laundering risk, while it also damaged the economy by enabling capital flight.

The police have charged the 11 suspects with providing unlicensed electronic money services, and it’s not the first time this year that authorities have cracked down on illegal crypto activity.

Thailand’s crypto crackdown

January saw Thailand’s Cyber Crime Investigation Bureau propose a ban on Polymarket, arguing that the crypto-based prediction marketplace creates “economic and social risks.”

Last month, Thai and Chinese police froze cryptocurrencies worth around $2.5 million after arresting two Chinese individuals later charged with fraud and human trafficking.

And only today, Binance TH reported that Thailand has seen one of the biggest increases worldwide in investment complaints and damage, with the exchange receiving over 1,000 data requests from police over the past three years.

Such actions may invite the suspicion that Thailand is cracking down on crypto, yet Singapore-based intergovernmental blockchain advisor Anndy Lian argues that Thai authorities are focused mostly on bad actors.

“You’ve got the Cyber Crime Investigation Bureau (CCIB) working with folks like Binance to bust pig butchering scams—those nasty romance-investment hybrids that have ripped off millions,” he told Decrypt.

Lian noted that one particular operation, named Trust No One, resulted in numerous high-profile arrests and the seizure of substantial sums, while subsequent operation The Purge did something similar last year.

“Then there’s the raids on illegal mining ops in places like Chachoengsao and Surat Thani, where they caught people stealing electricity to power their rigs,” Lian added. “That’s another sign they’re keeping an eye on shady crypto activities.”

Lian reiterated that Thai police are zeroing in on fraudsters, extortionists and thieves much more than the crypto space more generally, although it also has a zero-tolerance policy for platforms that do not register with the Thai Securities and Exchange Commission.

“The SEC’s been pushing to block unlicensed exchanges too, like they did with Bybit and others last year, but that’s more about regulating the space than shutting it down,” he explained.

Thailand and crypto

But in general, the cryptocurrency industry in Thailand is growing healthily: the Southeast Asian nation ranked 16th in Chainalysis’ 2024 Global Crypto Adoption Index, while it saw just over $50 billion in cryptocurrency value received between July 2023 and July 2024.

Thailand’s SEC has also been busy updating its rules surrounding cryptocurrency investment for mutual and private funds, in a bid to attract more legitimate investment in the space.

“Plus, with the SEC now eyeballing spot Bitcoin ETFs and stablecoins, it seems like they’re trying to figure out how to manage it, not kill it,” says Lian, referring to the SEC’s January announcement that it may begin permitting local Bitcoin exchange-traded funds.

Such moves mean that Thailand sits somewhere in the middle of Southeast Asian jurisdictions when it comes to crypto regulations, not quite as liberal as Singapore but “not a total lockdown like China,” according to Lian.

Source: https://decrypt.co/308623/thai-police-raid-five-crypto-firms-arrest-11-in-crackdown

Anndy Lian

www.anndy.com

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March 5th, 2025

Shifting sands: How trade fears and crypto hopes are redefining markets

As I sit down to unpack the whirlwind of events shaping global markets on March 5, 2025, it’s hard not to feel the weight of uncertainty pressing down on us all. The headlines are buzzing with escalating trade tensions, bold economic proposals, and a crypto landscape that’s both thrilling and divisive. Let’s dive into this market wrap and explore what’s driving these shifts, what the data tells us, and where I think this rollercoaster might take us next.

The big story dominating the financial world right now is the trade standoff sparked by US President Trump’s decision to slap 25 per cent tariffs on goods from Canada and Mexico, alongside an additional 10 per cent on China. True to his campaign rhetoric, Trump has followed through, and the fallout has been swift.

Canada and China didn’t waste a moment, hitting back with their own retaliatory tariffs, while Mexico’s president has promised to join the fray by Sunday. The result? Global equities took a beating, with the MSCI US index dropping 1.2 per cent, dragged down by a bruising 3.5 per cent plunge in financials. It’s a grim picture, and you can almost feel the collective sigh from Wall Street as fears of a full-blown trade war loom large.

But here’s where it gets interesting. After the US markets closed, Commerce Secretary Lutnick dropped a hint that talks with Canada and Mexico might yield a compromise. That’s a lifeline for markets desperate for some stability, though I’m skeptical about how quickly this can be resolved.

Tariffs aren’t just numbers—they’re bargaining chips in a high-stakes game, and unwinding them could take time. Still, the mere suggestion of a deal nudged US equity futures upward, hinting at a brighter open today. My take? This feels like a temporary breather rather than a resolution. Trade wars don’t end with a single press conference—they fester, and I’d wager we’re in for more volatility before clarity emerges.

Over in the bond market, the reaction was equally telling. The benchmark 10-year Treasury yield climbed over 3 basis points to 4.21 per cent, reversing an earlier dip, while the 2-year yield slipped 3 basis points to 3.94 per cent. This widening gap—known as a steepening yield curve—screams uncertainty to me.

Investors seem to be betting on inflation from tariffs pushing up long-term yields, while the drop in short-term yields suggests some are seeking safety or anticipating a slowdown. It’s a classic push-and-pull, and I can’t help but think it reflects a market grappling with mixed signals.

Shifting gears to Europe, Germany’s conservatives and Social Democrats have unveiled a jaw-dropping plan: a 500 billion euro fund for infrastructure and a rewrite of borrowing rules to ramp up defense spending. It’s a bold move, and the markets loved it—the EUR/USD shot up to 1.0627 overnight. Other European currencies like the Swiss franc, British pound, Norwegian krone, and Swedish krona followed suit, flexing their muscles as the US Dollar Index stumbled 0.9 per cent to 105.49.

This feels like Europe seizing a moment to assert itself amid global chaos, and I’m impressed by the ambition. If Germany pulls this off, it could spark a ripple effect, boosting infrastructure and jobs while shoring up defenses—a win-win that might just give the eurozone an edge.

Meanwhile, commodities are painting a different picture. Brent crude slipped 0.8 per cent to below US$70 a barrel, the lowest since last October, thanks to OPEC+ signalling output hikes in April. That’s a supply glut waiting to happen, and with trade tensions clouding demand, I’m not surprised oil’s taking a hit.

Gold, on the other hand, rose 0.7 per cent, buoyed by a weaker dollar and its timeless appeal as a safe haven. It’s a tale of two commodities—one sinking under practical pressures, the other shining as a hedge against the unknown. I’d argue gold’s climb is a sign that, despite some optimism, fear still lingers in the market’s underbelly.

Across the Pacific, China’s National People’s Congress kicked off with a gutsy 5 per cent growth target for 2025, tariffs be damned. Investors are laser-focused on spending plans, especially around AI, which could be a game-changer for China’s tech sector.

Asian equity indices mostly rose in early trading, and with Trump set to address Congress today, all eyes are on what he’ll say about trade and beyond. My gut tells me China’s playing a long game here—pushing growth while quietly adapting to external pressures. That 5 per cent target might be ambitious, but if they lean into AI and innovation, it’s not out of reach.

Now, let’s talk crypto, because this is where things get wild. Vietnam’s Prime Minister Pham Minh Chinh has ordered a legal framework for digital assets, with a draft due this month. It’s a big deal—right now, cryptos like Bitcoin and Ethereum exist in a legal no-man’s-land there, forcing businesses to register in places like Singapore or the US.

A clear rulebook could unleash a wave of activity, and I’m excited to see Vietnam stepping up. Indonesia’s crypto scene is already on fire, with transactions soaring to 44.07 trillion rupiah (US$2.68 billion) in January 2025—a 104.31 per cent jump from last year. With 1,396 assets tradable as of February, it’s clear Southeast Asia is becoming a crypto hotspot.

Hong Kong’s not sitting idle either. On February 19, its Securities and Future Commission rolled out the ASPIRe Framework—five pillars and 12 initiatives to grow and secure its virtual asset industry. It’s a smart play to cement Hong Kong’s status as a financial innovation hub, and I’d bet it’ll draw in more players. But the real crypto drama is brewing in Washington.

Trump’s pushing for a strategic cryptocurrency reserve, originally pitched as a way to use seized assets like the US’s US$16.4 billion in Bitcoin and US$400 million in other tokens. The twist? He now wants XRP, SOL, and ADA included—tokens the US doesn’t even hold yet.

That’s sparked a firestorm, with critics crying foul over government meddling in markets and supporters cheering a bold embrace of crypto. Personally, I’m torn. It’s a visionary idea, but buying those tokens could spike prices and invite accusations of favoritism. The logistics alone are a nightmare—how do you stockpile volatile assets without distorting the market?

Stepping back, what strikes me most is the sheer breadth of these developments. Trade tensions are shaking equities and bonds, Europe’s flexing fiscal muscle, and Asia’s charging ahead with crypto and growth targets. The data backs this up: the MSCI US down 1.2 per cent, EUR/USD at 1.0627, Indonesia’s crypto boom, Brent at US$70—all pieces of a puzzle showing a world in transition.

My view? We’re at a tipping point. Trade wars could drag us down, but compromises and innovation—like Germany’s fund or Asia’s crypto push—offer hope. The US crypto reserve is a wild card; if executed poorly, it could backfire, but done right, it might signal a new era for digital assets.

I think markets will stay jittery until trade talks clarify—watch Canada and Mexico closely. Europe’s plans could stabilise things if they deliver, and Asia’s crypto momentum might just steal the spotlight. Trump’s speech today could set the tone, but I wouldn’t hold my breath for miracles. This is a marathon, not a sprint, and as a journalist digging into the facts, I’d say buckle up—we’re in for a ride that’s as unpredictable as it is fascinating.

Source: https://e27.co/shifting-sands-how-trade-fears-and-crypto-hopes-are-redefining-markets-20250305/