Scenius Sync (Issue # 184)

Happy Holidays! Russia to Legalize Domestic Crypto, Philippines blocks Coinbase & Gemini, Uniswap 100M token burn, HashKey raised $250M for its fourth crypto fund, Banking startup Erebor raised $350M

Scenius: The intelligence and the intuition of a whole cultural scene. The communal form of the concept of genius.

Welcome to The Scenius Sync.

Our mission with this concise publication is twofold:

1. Share the essential stories driving the crypto industry and markets.

2. Highlight innovative applications and mainstream adoption of crypto and blockchain technology.

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Essential News 🗞

1. US eyes crypto mining at disputed nuclear plant in Russia-Ukraine conflict: report

   • Putin said the U.S. has expressed interest in using a proposed stake in the Zaporizhzhia Nuclear Power Plant (ZNPP) for crypto mining as part of ongoing peace negotiations, Kommersant reported. The plant is located in Ukraine and has been under Russian control since 2022, with its future management a key issue in peace talks. Control over the ZNPP determines who manages a major source of electricity for southern Ukraine, influences grid stability across the region, and carries major security implications.

2. Russia Moves to Legalize Domestic Crypto Deals for Retail Buyers

   • Russia’s central bank has prepared a framework to regulate cryptocurrencies on the domestic market that will allow retail investors to buy them in addition to qualified investors, in a fresh sign of how sanctions have reshaped its approach to the assets. Non-qualified investors would be allowed to buy the most liquid cryptocurrencies after passing a knowledge test, with transactions capped at 300,000 rubles (about $3,800) per year through a single intermediary.

   • Similarly, Russia’s central bank unveils new crypto rules to be adopted in 2026

3. Philippines blocks Coinbase, Gemini amid wider crackdown on unlicensed VASPs

   • Internet service providers (ISPs) in the Philippines began blocking major crypto trading platforms as regulators moved to enforce local licensing rules on crypto service providers. Users reported that as of Tuesday, access to global cryptocurrency exchanges Coinbase and Gemini was unavailable in the Philippines. Cointelegraph independently confirmed that both platforms were inaccessible across multiple local ISPs.

   • See related news here: Philippines Blocks Coinbase, Gemini: 50 Platforms Hit in Major Regulatory Crackdown

4. Uniswap governance passes major ‘UNIfication’ proposal; 100 million token burn imminent

   • The proposal, jointly introduced by Uniswap Labs and the Uniswap Foundation in November, activates the long-anticipated protocol “fee switch.” This redirects a portion of trading fees previously allocated entirely to liquidity providers directly to the protocol, which will burn UNI tokens on an ongoing basis. Net sequencer fees from Unichain will also be routed into the same burn system. Following the passage, the proposal enters a two-day timelock after which the protocol will burn 100 million UNI, an estimate of what might have been burned if the protocol fee switch had been active at token launch.

5. Polymarket cites third-party vulnerability in recent user account hack

   • Decentralized prediction market platform Polymarket confirmed that multiple users were affected by a recent security breach involving a third-party authentication provider. According to user reports on social media, the issue appears to have affected users who signed up for Polymarket through Magic Labs, which lets users sign in via email addresses and creates non-custodial Ethereum wallets. Magic Labs sign-up is widely used by first-time crypto users who do not already have digital asset wallets.

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Innovation & Adoption 💡📈

1. HashKey Capital’s $500 million-target blockchain fund raises $250 million in first round

   • HashKey Capital closed the first round of fundraising for its fourth crypto fund, securing $250 million from institutional investors, family offices, and high-net-worth individuals. The HashKey Fintech Multi-Strategy Fund IV aims to raise a total of $500 million and will invest in blockchain infrastructure and applications with real-world use cases. HashKey Capital now has over $1 billion in assets under management and has emerged as one of Asia’s largest digital asset fund managers, with a history of backing prominent crypto projects, including Ethereum.

2. Coinbase to acquire prediction markets startup The Clearing Company

   • Coinbase has agreed to acquire The Clearing Company, a prediction markets startup that recently announced a $15 million seed round backed by investors including Coinbase Ventures. The deal follows Coinbase’s recent rollout of prediction markets on its platform and is expected to close in January, with The Clearing Company team joining Coinbase to help scale the offering. The Clearing Company was founded earlier this year by Toni Gemayel, a former head of growth at both Polymarket and Kalshi.

3. Banking startup Erebor raises $350 million at over $4 billion valuation following FDIC approval: Axios

   • Erebor, a banking startup co-founded by Anduril CEO Palmer Luckey, has raised $350 million at a $4.35 billion valuation, Axios reported Monday.

     The news comes on the heels of last week’s Federal Deposit Insurance Corporation (FDIC) approval of Erebor’s deposit insurance application to establish it as a newly chartered national bank. Erebor has pitched itself as a tech and digital asset-focused bank, and the FDIC process reportedly included a capital call agreement designed to ensure investors can inject more funds if certain triggers are hit.

   • See related news here: Peter Thiel-Backed Bank Erebor Raises $350M At $4.35B Valuation

4. XRP holders can now earn yield without selling their tokens

   • Flare’s earnXRP allows XRP holders to earn yield without selling their tokens or engaging in complex DeFi strategies. Users can deposit FXRP into a vault to earn returns compounded back into XRP. The vault enhances onchain activity and liquidity by turning idle XRP into productive capital, appealing to holders seeking yield without stablecoin exposure.

5. Binance opens up ways for users to generate income using ETH options

   • Binance is opening up ether options to all users, allowing them to earn passive income, expanding a strategy previously limited to professional traders. The exchange’s move responds to growing demand for advanced derivative tools from both retail and institutional investors. Binance has upgraded its options platform to offer faster execution and greater flexibility, aiming to dominate the competitive crypto options market.