bitcoinist.com

Based on reports, Russia’s Ministry of Justice has proposed criminal penalties for people who mine digital currency without registering. The draft would add a new criminal article and set fines, forced labor and prison terms tied to how big the operation is and how much money it made. The move follows a law that made mining legal under strict rules last year.

Russia: New Criminal Article Proposed

According to the draft amendments posted on a regulatory portal, a new Article 171.6 titled “Illegal Mining Of Digital Currency And Activities Of A Mining Infrastructure Operator” would be added to the Criminal Code.

Under the proposal, an unregistered miner could face a fine of up to 1.5 million rubles, compulsory labor for up to 480 hours, or forced labor for up to two years. The draft draws a line at income thresholds: if mining generated large-scale income of 3.5 million rubles, liability applies.

For operations that are part of an organized group or that produced especially large income of 13.5 million rubles, penalties rise sharply — fine ranges from 500,000 to 2.5 million rubles, forced labor of up to five years, or imprisonment for up to five years combined with additional financial penalties.

Total crypto market cap currently at $2.97 trillion. Chart: TradingView

Registries And Monthly Reporting

Reports have disclosed that Russia legalized mining on November first, 2024, and on that date the Federal Tax Service opened special registries. All legal entities and individual entrepreneurs involved in mining must register, and operators of mining infrastructure are included.

Registered miners are required to report mined digital currency every month through a section in their personal accounts on the Federal Tax Service website. Based on the agency’s figures, there were more than 1,000 participants listed in the registries by the end of May 2025.

Visibility And Control Through Registration

The draft law appears aimed at forcing visibility into a sector that has often operated in the shadows. By tying criminal penalties to failure to join the registry, authorities gain tools to pursue operators who avoid paying taxes, use subsidized power, or run large-scale farms without oversight. Smaller, informal miners are left most exposed because they may lack the paperwork or know-how to comply with reporting rules.

Timing And Enforcement Signals

Deputy Prime Minister Alexander Novak has said the government plans to introduce criminal liability for illegal mining and illegal lending in 2026.

That comment, combined with the publication of the draft amendments, suggests phased steps: rules and registries are already in place, while tougher criminal measures could follow next year.

Some language in the draft also allows courts to impose fines equal to a convicted person’s salary or income for set periods, which would target earnings from mining operations.

Featured image from Unsplash, chart from TradingView

The Federal Bureau of Investigation (FBI) has recently raised alarms about the increasing number of cryptocurrency scams, particularly those involving Bitcoin ATMs. 

Crypto Requests Now Top Choice For Criminals

According to a report from ABC News, the latest statistics from the FBI indicate a “clear and constant rise” in fraudulent transactions connected to cryptocurrency kiosks, a trend the bureau notes is “not slowing down.” 

In 2024, scammers perpetrated approximately $250 million in losses, which was more than double the amount reported in the previous year. By November 2025, that number had surged to $333.5 million.

There are over 45,000 Bitcoin ATMs across the US allowing users to convert cash into crypto and send it to wallets globally. However, once the money is sent, experts warn that recovery is nearly impossible, making the machines appealing tools for fraudsters.

“Requesting crypto is now the No. 1 preferred method of criminals,” stated Amy Nofziger, director of fraud victim support at AARP (formerly American Association of Retired Persons), in an October interview with ABC News. “It is a huge problem.”

Law enforcement has taken notice of the escalating fraud. In September, the attorney general’s office in Washington, D.C., filed a lawsuit against Athena Bitcoin, a major provider of Bitcoin ATMs in the country.

The suit alleges the company pocketed “hundreds of thousands of dollars in undisclosed fees on the backs of scam victims.” 93% of the transactions made through Athena’s machines in the district were allegedly linked to outright fraud, with victims often being older individuals, the median age being 71.

Athena Bitcoin has strongly refuted these allegations, stating that it implements robust safeguards against fraud, including clear instructions and consumer education. The company also remarked, “Just as a bank isn’t held responsible if someone willingly sends funds to someone else, Athena does not control users’ decisions.”

17 States Move To Regulate Or Ban Bitcoin ATMs 

In response to the rising tide of scams, AARP has called for stricter regulations on Bitcoin ATMs, suggesting measures such as daily deposit caps to protect consumers. 

At least 17 states have enacted legislation in recent years to regulate these Bitcoin ATM machines in the country, while some local governments have moved toward banning them entirely.

New Jersey state Senator Paul Moriarty, who sponsored a bill to prohibit Bitcoin ATMs in the state, expressed strong concerns regarding their impact. 

“These machines are nothing more than conduits for fraud and criminal activity. Period,” he stated. “There’s no other use for them, because if you wanted to buy cryptocurrency you could buy it somewhere else for less.”

In defense of their operations, companies like Bitcoin Depot have stated that while scams do occur, they represent only a small portion of overall transactions.

At the time of writing, Bitcoin was trading at $88,613, marking a slight gain of 1.5% in the past 24 hours and 2% in the past seven days. However, it is still unable to surpass and consolidate above the key $90,000 mark, which is acting as the most important resistance wall in the near term. 

Featured image from DALL-E, chart from TradingView.com 

Kim Byung-kee, the floor leader of South Korea’s ruling Democratic Party, is under fresh scrutiny after reports linked his family ties to a major crypto exchange with his recent parliamentary actions.

Based on reports, his son took an internship at Bithumb and, not long after, Kim publicly raised sharp questions about Upbit, the country’s largest exchange.

Allegations Of Favoritism

A former aide has said that Kim met with Bithumb executives in November 2024, shortly before his son joined the firm, and that the lawmaker personally pushed his son’s resume to companies in the sector.

The same source says aides were later instructed to press lawmakers to raise monopoly concerns about Upbit during committee sessions. Reports also say some Bithumb staff who handled government relations received bonuses reported as high as seven times their base pay.

Market Share And Motive

Reports have disclosed why the matter drew attention: Upbit controls a dominant share of South Korea’s crypto trading market, with figures cited at roughly 72% in recent coverage.

That dominance has made any public criticism of Upbit politically sensitive, and opponents have argued the timing of Kim’s comments and his son’s hiring looks problematic.

Responses And Denials

Kim has denied any improper link between his legislative work and his son’s employment, saying his comments were driven by policy concerns about market concentration rather than private gain.

Bithumb has said its recruitment processes were open and fair. Independent outlets that first reported the story have sought comment from both the exchange and Kim’s office as pressure has mounted.

Crypto & Political Fallout

The controversy has prompted calls for accountability from opposition parties and some within Kim’s own camp.

Several lawmakers demanded he step down from leadership duties while the claims are investigated, and one major news outlet reported that he resigned his floor leader post amid the outcry. Authorities and ethics panels may now review whether rules on conflicts of interest were breached.

Investigators and party officials say they will examine meeting records, personnel files and internal messages to establish a clear timeline.

Kim is expected to address the issue publicly, and lawmakers say they will press for full disclosure if evidence shows undue influence.

Featured image from Unsplash, chart from TradingView

Bitcoin continues to trade below the $90,000 level, struggling to regain bullish momentum as market sentiment deteriorates. A growing number of analysts are now openly calling for a broader bear market, pointing to persistent weakness, failed breakouts, and declining risk appetite across crypto. Despite this gloomy backdrop, not all market participants are convinced that Bitcoin’s next major move will be lower.

Some investors remain focused on 2026, arguing that structural conditions could begin to shift in the coming months. One of the key debates centers on long-term holders (LTHs). While social media narratives increasingly claim that LTHs are distributing Bitcoin at record levels, on-chain data suggests a more nuanced reality.

According to a report by analyst Darkfost, much of the perceived LTH selling has been distorted by large, isolated movements—particularly nearly 800,000 BTC transferred from Coinbase—which skewed traditional LTH metrics.

After adjusting the data to exclude this anomaly, a clear change in supply dynamics emerges. Rather than accelerating distribution, the adjusted chart shows signs that long-term holder supply is stabilizing, and in some cases beginning to recover. This challenges the dominant bearish narrative and suggests that selling pressure from seasoned holders may be fading.

As Bitcoin consolidates below key resistance, the divergence between price weakness and shifting on-chain behavior sets the stage for a critical inflection point ahead.

Long-Term Holders Reduce Selling Pressure

Darkfost adds important context to the evolving Bitcoin narrative by focusing on long-term holder (LTH) supply dynamics. According to his analysis, the monthly LTH supply change—measured as a 30-day rolling sum—had remained firmly locked in a distribution phase since July 16.

For several months, this metric consistently showed negative readings, confirming that long-term holders were gradually reducing their exposure and releasing supply into the market.

That trend has now shifted. The latest data shows the metric moving back into positive territory, with approximately 10,700 BTC transitioning into long-term held coins. While this figure is still relatively small in absolute terms, it marks a clear inflection from sustained distribution to early re-accumulation.

In practical terms, it suggests that LTHs have slowed their selling activity to the point where their aggregate supply is beginning to grow again.

This shift is particularly notable because it is occurring while short-term holders (STHs) continue to hold their positions rather than aggressively selling. The combination points to a cooling of sell-side pressure from both cohorts, even as price remains under pressure.

Historically, similar transitions in LTH supply behavior have often preceded periods of sideways consolidation or, in more constructive cases, the early stages of bullish recoveries.

While this signal alone does not guarantee an upside move, it does suggest that the market may be moving away from forced distribution and toward a more balanced phase, depending on how broader macro and price trends develop.

Bitcoin Consolidates Above Long-Term Support

Bitcoin’s price action continues to reflect a market caught between structural support and lingering downside pressure. After failing to hold above the $100K–$105K region earlier in the quarter, BTC entered a sharp corrective phase that accelerated into November. That move pushed price decisively below the 50-day and 100-day moving averages, confirming a short-term trend shift from expansion to contraction.

At present, Bitcoin is consolidating around the $88K zone, hovering just above the rising 200-day moving average, which sits slightly lower and continues to act as a critical long-term support.

This area has become a key battleground: repeated downside wicks suggest buyers are defending the level, but upside follow-through remains limited. The declining slope of the shorter moving averages reinforces the idea that bullish momentum has not yet returned.

Volume dynamics also support a consolidation narrative rather than active accumulation. Selling pressure has eased compared to the November breakdown, but demand has not expanded meaningfully enough to reclaim prior resistance. Structurally, the market appears to be transitioning from a high-volatility selloff into a compression phase.

As long as BTC holds above the 200-day moving average, the broader bullish structure from earlier in the cycle remains technically intact. However, a failure to defend this level would expose the $80K–$75K region as the next major support.

Featured image from ChatGPT, chart from TradingView.com