HIVE Digital co-founder Frank Holmes stated this week that several sanctioned nations are actively mining Bitcoin (BTC) in secret, turning to the crypto as an alternative revenue stream in the face of U.S. financial restrictions.

Holmes made the claims during a recent interview with the Roundtable. He tied a recent drop in global mining difficulty to military strikes targeting power infrastructure in Iran, suggesting the country’s military was using energy resources to mine Bitcoin and generate hard currency.

The comments reflect a broader trend in which governments cut off from traditional financial systems are leveraging crypto mining to fill economic gaps.

Holmes said this is not limited to Iran, implying that other countries facing US sanctions are also participating in similar operations, though much of it remains undisclosed.

He further claimed that Bitcoin has become a strategic asset, especially for nations struggling to access dollars. Mining provides a direct route to accumulate value outside the traditional financial ecosystem.

Holmes said that disruptions to mining facilities can now be observed in network-level data such as hash rate fluctuations.

HIVE ramping up production

While pointing to adversaries of the US using crypto mining as a financial lifeline, HIVE Digital is pursuing growth in U.S.-aligned nations.

The company recently expanded its footprint in Paraguay, acquiring infrastructure to scale operations more rapidly. The decision required divesting a portion of its Bitcoin holdings, but Holmes described it as a strategic trade-off to accelerate production.

Paraguay’s supportive regulatory stance and energy resources make it a key location for HIVE’s expansion, particularly compared to more politically volatile countries in the region.

The move comes amid growing sentiment that Bitcoin mining will continue to flourish in jurisdictions aligned with U.S. economic interests, particularly under the current administration.

HIVE has now surpassed 14 exahashes per second (EH/s) in mining capacity, with a goal of reaching 25 EH/s by the end of November. At current output, the company is generating approximately $315 million in annualized revenue, placing it among the top contenders in terms of efficiency and scale.

The remarks highlight a shifting landscape where mining activity is not just about profitability, but increasingly intertwined with global alliances, sanctions evasion, and power projection through digital infrastructure.

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El Salvador’s legislature has approved major constitutional reforms that will significantly reshape the country’s political structure and electoral timelines.

The new bill, passed on July 31 by 57 lawmakers, enables indefinite presidential re-election, extends the length of presidential terms from five to six years, and removes the need for second-round runoffs in elections.

Crucially, the changes also bring forward the end of President Nayib Bukele’s current term from June 2029 to June 2027. This alignment of presidential and legislative elections means Bukele could now seek another term two years earlier than previously scheduled.

Proponents of the reforms say the moves will enhance institutional stability, reduce election costs, and attract more foreign investment by providing political continuity. They also claimed the overhaul is designed to “stabilize electoral periods” and reduce what they described as a constant state of political campaigning.

Notably, these amendments come just one year after Bukele secured a second term, despite constitutional provisions that had previously barred immediate re-election.

What does this mean for Bitcoin?

President Bukele has positioned El Salvador as a bold experiment in crypto-driven governance. In 2021, the country made history by adopting Bitcoin as legal tender, which drew international praise and skepticism.

Since then, the government has built up a strategic Bitcoin reserve and enabled the use of the crypto for daily transactions, tax payments, and public services.

Considering this, Stacy Herbert, who leads the government’s Bitcoin Office, said the electoral reform would allow the country to continue its current economic trajectory.

According to her:

“The days of chaos, violence, and despair are gone for good. El Salvador will remain on the path to greatness.”

Meanwhile, Max Keiser, a senior advisor on Bitcoin policy, offered a more radical take on the reforms, saying El Salvador would become the Singapore of Central America under Bukele.

He stated:

“El Salvador’s governance model follows Bitcoin. It’s not a ‘Democracy,’ it’s Bitcoin Country. It’s a STARTUP NATION — and as I told The New Yorker 3 yrs ago, Bukele is a cross between JFK & Steve Jobs.”

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The impact of the digital revolution has been felt across all parts of the world. One of the best examples of the expanding influence of technology on the world is the adoption of cryptocurrencies. The unique virtual assets have not only transformed conventional financial landscapes but also introduced new benefits in financial transactions.

As developed nations continue to struggle with embracing cryptocurrencies, the rising rate of cryptocurrency adoption in developing nations presents promising news for the crypto market. Is the accelerated adoption curve in developing countries due to speculative trading of cryptocurrencies? Let us find out the answer by unraveling the opportunities and challenges associated with adoption of cryptocurrencies in developing economies.

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Opportunities for Developing Nations in Adoption of Cryptocurrencies

The primary reason for growing adoption of cryptocurrencies in developing nations revolves around the resolution of formidable economic problems. The economic reality of developing nations is the biggest factor that drives cryptocurrency adoption. 

The traditional financial systems in developing countries have to face issues of limited accessibility and inefficiencies. On top of it, the volatility of economic conditions in developing countries also creates a formidable challenge for citizens. The following points can help you understand the opportunities for crypto adoption in developing countries.

• Addressing the Problems of Financial Inclusion 

One of the biggest problems that cryptocurrencies aim to solve in developing countries is financial inclusion. It is one of the prominent answers to “What is the role of cryptocurrencies in developing economies?” as most of the population in developing countries cannot access basic financial services. The exclusion comes from different factors such as strict onboarding requirements, geographical barriers and higher transaction fees. Cryptocurrencies can overcome these hurdles as they need only a smartphone with internet connection. With cryptocurrencies, citizens of developing countries can create a bank account in their phone and store, send or receive money digitally.

Cryptocurrencies can enable people in developing countries to become a part of the gradually expanding digital economy. Global institutions such as the World Bank have reported a positive correlation between higher rates of Bitcoin adoption and enhanced financial inclusion in developing countries. The best example of growing financial inclusion through cryptocurrencies is visible in Sub-Saharan Africa. In 2021, only 49% of the adults had a bank account in different parts of the region. On the contrary, the rise of crypto adoption in countries like South Africa, Nigeria and Kenya has presented a useful alternative to traditional banking.    

• Simpler Remittances and Cross-Border Payments

Remittances are an integral part of the economy in developing countries as they are the money sent by migrant workers to their families. Traditional remittance services charge exorbitant fees and have extremely slow processing times with payments taking days or even weeks to complete. The inefficiency of traditional international payment systems has a negative impact on the citizens of developing countries who rely on cross-border money transfers. 

Cryptocurrencies can offer the ideal solution to the inefficiencies in cross-border payment systems. Cross-border payments are one of the biggest reasons for crypto adoption in the world as cryptocurrencies offer more cost-effective, secure and faster solutions for international money transfer. Blockchain technology can facilitate almost instant transactions with considerably lower fees than traditional banking systems. Kenya and Nigeria are the two prominent examples of using cryptocurrencies for cross-border payments. The benefits of crypto adoption in Nigeria have helped in facilitating faster money transfer in urban as well as rural areas.

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• Boosting Small Businesses and International Trade

Developing countries can achieve economic growth on the shoulders of their small and medium-size enterprises or SMEs and international trade. The traditional banking systems hold back the growth of developing economies in these areas with various inefficiencies. Cryptocurrencies can solve the problem by empowering businesses to accept payments from customers anywhere in the world. 

Crypto adoption will also help business owners gain access to the services of international suppliers. Small businesses can also use cryptocurrencies to bypass the costs and complexities that come with international banking. As a result, businesses in developing countries can promote economic growth and expand their market presence. On top of it, the immutability of crypto transactions on blockchain helps in ensuring accountability and fighting against corruption prevalent in traditional systems of developing countries.

• Safeguards against Inflation and Currency Devaluation 

Among the many problems of developing nations, the persistent inflation exerts the maximum impact. It can lead to faster depletion of savings and purchasing power of citizens. You can notice crypto adoption opportunities in developing nations where local currencies go through drastic devaluation due to political instability, external shocks or economic mismanagement. The only effective solution in such unstable environments points at assets which can serve as stable store of value.

Cryptocurrencies can offer a promising alternative for hedging against inflation and currency devaluation. While cryptocurrencies like Bitcoin can serve as a hedge due to their finite supply, stablecoins are the better option. Stablecoins are pegged to stable assets like the US Dollar, thereby offering a predictable anchor during inflation. Businesses and individuals in developing nations can use stablecoins and other cryptocurrencies to safeguard their health from inflation and relentless currency devaluation. Argentina and Turkey are the two examples of countries that have witnessed rising cryptocurrency adoption to fight against inflation and currency devaluation.   

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Challenges for Crypto Adoption in Developing Nations

The diverse array of opportunities for crypto adoption in developing nations showcases that the world may witness large-scale adoption of cryptocurrencies in the next few years. At the same time, you should also acknowledge the crypto adoption challenges that might create setbacks for embracing cryptocurrencies. The following challenges will be the biggest barriers to the adoption of cryptocurrencies in developing economies.

• Consumer Protection from Price Volatility

The multiple advantages of cryptocurrencies for developing countries overshadow the fact that the price of crypto asserts is extremely volatile. The price fluctuation in short periods can make anyone think twice about adopting cryptocurrencies as a reliable medium of exchange or store of value. Crypto price volatility can lead to substantial financial losses, which are alarming in developing nations where people have limited financial resources. 

The limited regulatory oversight along with the immaturity of the crypto market in developing nations exposes citizens to various risks. For instance, fraud, exchange breaches or scams indicate that users don’t have any robust protection mechanism. In the event of loss or crypto fraud, citizens in developing nations will have no one to turn to.

• Technological and Infrastructure Concerns 

The existing state of cryptocurrency adoption in developing nations has been shaped by the availability of smartphones and internet connectivity. However, the lack of adequate digital infrastructure and reliable internet connectivity in various areas of developing nations create challenges. The impact of these challenges holds back many users from participating in the crypto space to access digital wallets or complete cross-border transactions. On top of it, many people in developing countries don’t have the fundamental knowledge required to use cryptocurrencies.

Another formidable infrastructure concern associated with crypto adoption is the energy-intensive cryptocurrency mining process. Developing countries that are struggling with power supply can have to face dire environmental challenges with increased crypto adoption. Furthermore, the increased energy demand in crypto mining operations can also drain the national resources of developing economies.

The biggest challenge to crypto adoption in developing countries emerges in the form of regulatory uncertainty. Governments of developing countries don’t have clear or consistent regulatory frameworks, especially for crypto governance. As a result, the legal framework for cryptocurrencies in developing nations is all about patchwork of different approaches. The regulatory uncertainty creates doubt in the minds of individuals, businesses and investors, thereby restricting institutional interest and mainstream adoption. 

Regulatory uncertainty also affects crypto adoption in the world due to the negative impact of unprecedented policy changes. Another notable theme associated with regulatory uncertainty for cryptocurrencies is their borderless and decentralized nature. The governance or regulation of cryptocurrencies at a national level stands against the core principles of cryptocurrencies. Excessive intervention of the government in crypto regulations can lead to issues of terrorist financing and money laundering.

Want to get an in-depth understanding of crypto fundamentals, trading and investing strategies? Enroll now in the Crypto Fundamentals, Trading And Investing Course

How Should Developing Nations Adopt Cryptocurrencies?

Developing nations can capitalize on the benefits of cryptocurrencies by creating frameworks to make the most of opportunities and resolve challenges. The strategic approach for crypto adoption in developing economies must focus on establishing clear and dynamic regulatory frameworks for crypto usage. Developing nations should invest in digital infrastructure, such as internet connectivity in rural areas, and promote financial literacy to encourage citizens to use cryptocurrencies effectively. Most important of all, developing countries must always foster innovation to craft unique solutions to the problems of citizens with cryptocurrencies.

Final Thoughts 

The adoption of cryptocurrencies in developing nations represents a major milestone in the domain of global finance. The emphasis on crypto adoption opportunities such as enhanced financial inclusion, efficient international transactions and hedging against inflation should not undermine the challenges of crypto adoption. Developing countries like Kenya and Nigeria have taken the first steps in crypto adoption on a large scale with success. At the same time, the lack of definite frameworks for working with cryptocurrencies might lead to trouble in the long run. Learn how to follow the expert recommendations for cryptocurrency adoption according to your requirements.

*Disclaimer: The article should not be taken as, and is not intended to provide any investment advice. Claims made in this article do not constitute investment advice and should not be taken as such. 101 Blockchains shall not be responsible for any loss sustained by any person who relies on this article. Do your own research!

Crypto Reporter

Shalini Nagarajan

Crypto Reporter

Shalini Nagarajan

About Author

Shalini is a crypto reporter who provides in-depth reports on daily developments and regulatory shifts in the cryptocurrency sector.

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Last updated: 

June 26, 2025

The Financial Action Task Force has called on governments worldwide to step up enforcement of anti-money laundering standards in the crypto industry, warning that unchecked gaps in regulation could undermine global financial security.

In a report released Thursday from Paris, the global watchdog said jurisdictions have made progress since 2024 on implementing anti-money laundering and counter-terrorism financing frameworks for virtual assets and related service providers.

However, it noted that critical challenges remain, particularly around licensing, offshore oversight, and identifying entities involved in virtual asset services.

The FATF’s latest targeted update focused on Recommendation 15, which was expanded in 2019 to cover crypto markets.

Watchdog Flags Rising Stablecoin Abuse by Illicit Networks, Urges Regulatory Action

According to the report, 99 jurisdictions have either enacted or are preparing legislation aligned with the “Travel Rule,” a key mechanism to ensure transparency in cross-border crypto transfers. The FATF also released a new guide outlining best practices for supervising compliance with the rule.

The report flags mounting threats associated with the rise of stablecoins. It said their use by illicit actors, including North Korea-linked hackers, terror financiers and drug traffickers, has grown significantly. It warned that mass stablecoin adoption without coordinated regulation could increase global exposure to illicit finance.

North Korea’s Record Crypto Theft Exposes Weak Links in Global Enforcement

The update follows a series of alarming trends. So far this year, North Korea executed what the FATF described as the largest virtual asset theft in history, stealing $1.46b from exchange platform ByBit.

Only about 3.8% of the stolen funds has been recovered. This shows serious gaps in international asset tracing and recovery efforts.

Meanwhile, fraud and scams continue to trouble the crypto sector. The FATF cited industry estimates that around $51b in on-chain transactions last year were linked to such illicit activity. These cases point to increasingly sophisticated tactics by bad actors. As a result, governments are under growing pressure to enhance cooperation and improve asset seizure mechanisms.

In one example, the UK’s Operation Destabilise demonstrated how coordinated law enforcement can disrupt crypto-fueled criminal networks. The FATF said such efforts must be replicated globally and backed by more robust supervision and enforcement.

The watchdog acknowledged support from analytics firms including Chainalysis, Lukka, Merkle Science and TRM Labs in compiling the update. It also stressed that nearly 98% of the global virtual asset market is concentrated in jurisdictions within the FATF’s Global Network. Bringing these players into full compliance, it said, will be key to reducing worldwide risk.

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The White House has explicitly framed Bitcoin accumulation as a geopolitical imperative, likening it to a 21st-century “space race.” In an exclusive interview recorded inside the Eisenhower Executive Office Building, Bo Hines, Executive Director of the President’s Council on Digital Assets, spoke with Bitcoin Magazine political correspondent Frank Corva and Riot Platforms head of policy (and former White House deputy communications director) Brian Morgenstern.

Hines framed the administration’s first 100 days as a deliberate reversal of the “lawfare” that had hounded the crypto sector. “The President made promises on the campaign trail,” Hines said at the outset, “and he’s delivered on many of those promises thus far, but we still have quite a bit of work to do.”

The Bitcoin ‘Space Race’

Central to that is the launch of a Strategic Bitcoin Reserve (SBR) and a broader Digital Assets National Stockpile. The goal, Hines explained, is to secure as much of the digital gold as fiscal prudence permits. “We recognize bitcoin as being unique and we’ve said repeatedly that we view Bitcoin as digital gold,” he said.

When asked how much bitcoin the United States hopes to amass, Hines dismissed the premise: “That’s a silly question. That’s like asking any country how much you want of any asset with intrinsic stored value. You want as much as you can possibly accumulate.” Statutory language requires all accumulation to be budget-neutral, but Hines voiced confidence that “high-IQ people in this administration, specifically over at Treasury and Commerce,” will “come up with extremely creative ways for us to accumulate.”

That intent is animated by an explicitly geopolitical lens. “There is definitely a sort of space race as it pertains to accumulation of this asset,” Hines said. “We’ve positioned ourselves to be the bitcoin superpower of the world.” The analogy to the twentieth-century contest for extraterrestrial dominance recurred throughout the conversation; in the administration’s view, hash rate, custody competence and sovereign reserves may soon count as strongly as launch pads once did.

Hines credited much of the early velocity to what he called a deliberate infusion of private-sector talent into government. David Sacks, named both AI and “crypto czar,” was singled out for lending the expertise of Silicon Valley venture capital to federal decision-making. “We’re finally testing the hypothesis… what happens when you take a bunch of private-sector actors who have been successful and inject them into government?” Hines said, arguing that three months of regulatory reversals and policy construction already vindicate the experiment.

The White House’s demolition-construction-implementation roadmap is aggressive. Stage one—removing “burdensome regulations that really stifled innovation”—is already under way with lawsuits dropped by the Securities and Exchange Commission and new banking guidance designed to make the United States, in Hines’s words, “the most pro-crypto-friendly environment that possibly exists in the world.”

Stage two entails shepherding both stablecoin and market-structure bills through Congress. “We want to make sure we deliver on the President’s wishes to get both pieces of legislation on his desk before August recess,” Hines declared, predicting bipartisan passage. Stage three, scheduled to begin once a statutory framework exists, will integrate blockchain rails into conventional payments—an overhaul Hines said could become the signature achievement of the President’s second term.

Open Questions

That timetable is undergirded by a 180-day inter-agency report mandated by the executive order, meant to articulate how federal departments will operate under the forthcoming legal architecture. Treasury has already audited existing government-held Bitcoin (deadline was April 5); Hines said every relevant agency “has been extremely cooperative in producing what they have,” with consolidation now in progress.

One open question is how the government will acquire new coins. Policymakers have floated ideas ranging from revaluing gold certificates to leveraging federal energy assets for on-site mining. Hines declined to privilege any single path. “We can do this in numerous different ways,” he said, emphasizing speed and practicality. “What can we move on in the quickest fashion, and how can we start this accumulation process in the most expeditious manner possible?”

The administration is also trying to strike a balance between blockchain transparency and individual privacy. Hines rejected the notion that crypto rails are uniquely hospitable to illicit finance—“You’re a pretty dumb criminal if you want to use digital assets to do something nefarious, because that can be traced publicly”—while acknowledging the importance of self-custody and anonymity for lawful users. “It is a delicate balance, but it’s one that we can strike very effectively,” he said, adding that the world will “look to the US” for precedent.

As the interview concluded, Hines framed the initiative as both domestic necessity and international contest. If legislation passes and the Strategic Bitcoin Reserve begins accumulating before year’s end, he argued, “we will be the crypto capital of the world at that point.” Whether other nations accept that outcome—or accelerate their own sovereign accumulation—now depends on how seriously they take the United States’ declaration that Bitcoin is the new battlefield where economic superpowers measure their reach.

At press time, BTC traded at $95,068.

Featured image created with DALL.E, chart from TradingView.com

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Bitcoin climbed 5.6% to $81,636 within an hour of the announcement, reflecting broader market optimism.

In his post, Trump said tariffs on Chinese imports would rise to 125% immediately, claiming China had failed to respect global market rules.

“China has been taking advantage of the United States and other nations for too long,” Trump wrote. “The days of ripping off the U.S.A. are over.”

90-Day Pause on New Tariffs for Other Countries, Says Trump

Alongside the China tariffs hike, Trump announced a 90-day delay for other countries, noting that over 75 nations were in discussions with U.S. officials about trade concerns such as currency policies and non-monetary barriers.

During the 90-day window, Trump authorized a temporary reciprocal tariff of 10% for participating countries.

Markets Rally After China Tariffs Announcement

U.S. markets rallied on the news. The S&P 500 gained over 5.5%, while the Nasdaq rose more than 8%.

It is not yet clear whether any countries other than China will face tariffs above 10% once the 90-day delay ends.

Trump’s message did not offer further specifics, though it implied that countries willing to negotiate could avoid harsher penalties.

The move appeared designed to pressure Beijing while keeping trade discussions open with other partners.

With markets responding positively for now, attention turns to China’s reaction and whether the 90-day window leads to progress.

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