This week in crypto saw major geopolitical and financial shifts. Russia firmly rejected former US President Donald Trump’s threats against BRICS, reinforcing its stance on global economic independence. Meanwhile, DeepSeek AI sent shockwaves through financial markets but Bitcoin rebounded above $104,000, and the Czech National Bank is actively considering Bitcoin for its reserves. Additionally, China is gearing up for 2025 as the “Year of the (Crypto) Snake,” hinting at potential regulatory changes that could reshape the industry. Against this backdrop, several other key events occurred that are worth noting.
El Salvador Adjusts Bitcoin Law for IMF Loan
El Salvador made headlines by amending its Bitcoin Law to align with the conditions set by the International Monetary Fund (IMF) for a $1.4 billion loan. The legislative changes will make Bitcoin acceptance optional for businesses, marking a departure from the country’s once-mandatory adoption. Additionally, the government will no longer accept Bitcoin for tax payments and will phase out the state-issued Chivo wallet. While the IMF has long pressured El Salvador to scale back its pro-Bitcoin policies, the country remains committed to increasing its Bitcoin reserves. Despite the policy shift, Bitcoin remains legal tender, and the administration continues to see its potential for financial growth. The reforms reflect a balancing act between maintaining Bitcoin’s role and addressing economic stability concerns raised by global financial institutions.
Norway’s Sovereign Fund Increases Bitcoin Exposure
In Norway, the central bank’s sovereign wealth fund has significantly increased its indirect Bitcoin exposure through investments in MicroStrategy and other crypto-focused firms. Over the past year, Norway’s exposure has tripled, reaching approximately $514 million in MicroStrategy shares, which translates to indirect holdings of around 3,214 Bitcoin. The fund also holds shares in companies like Tesla, Coinbase, and Bitcoin mining firms Marathon Digital and Riot Platforms. Analysts suggest that while these investments are part of a broader sector-weighting strategy rather than a direct Bitcoin acquisition plan, they underscore the growing institutional interest in Bitcoin as a financial asset. As sovereign wealth funds in Norway and Switzerland continue to allocate capital to Bitcoin-heavy firms, institutional adoption of cryptocurrency appears to be expanding worldwide.
Hong Kong Expands Regulated Crypto Ecosystem
Meanwhile, Hong Kong’s Securities and Futures Commission (SFC) issued the first crypto trading platform licenses of 2025, granting approvals to PantherTrade and YAX. With these additions, Hong Kong now has seven licensed crypto exchanges under its regulatory framework. Since launching its licensing initiative in mid-2024, the SFC has emphasized strict compliance with anti-money laundering and cybersecurity regulations. The move is part of Hong Kong’s broader effort to position itself as a leading crypto hub while maintaining robust investor protections. The licensing drive has seen the regulator working closely with virtual asset trading platforms to ensure adherence to high regulatory standards. Currently, only Bitcoin, Ether, Avalanche, and Chainlink are legally tradable in Hong Kong, reflecting a measured approach to crypto adoption.
As the week comes to a close, these developments highlight a recurring theme—governments and financial institutions worldwide are refining their stance on cryptocurrency. Whether through regulatory adjustments, strategic investments, or licensing initiatives, the industry continues to evolve in ways that balance innovation with compliance. With El Salvador modifying its Bitcoin policy, Norway increasing its exposure to crypto-heavy companies, and Hong Kong expanding its regulated crypto ecosystem, the global landscape for digital assets remains as dynamic as ever.