Influencers on X have suggested that Elon Musk, the billionaire owner of the platform and one of the world’s richest men, will soon launch ‘X money’ on the platform.

He might give the final green light without waiting for approval from all 50 states in the US, according to reports.

And there is speculation he could connect the system to the crypto industry by making payments and transactions possible in the form of bitcoins or other stablecoins.

Analysts argue that could be a game changer for the crypto industry, and will further boost the crypto price surge that we have witnessed in recent months after Donald Trump’s victory in the US presidential election.

Senior officials at X have already confirmed payments and other features on the platform will be launched in 2025, and have told people to “buckle up”.

Musk has previously spoken about his ambition to transform X into an “everything app”. This is part of an ongoing effort to match other similar apps such as China’s WeChat.

UK’s crypto ads challenge

In the UK, recent reports have claimed the country’s financial watchdog, the FCA, has failed to take action against a number of companies who promote crypto-related ads without authorization.

According to the FT, only around half of the warnings or alerts issued by the regulator between October 2023 and October 2024 resulted in illegal crypto ads, apps and websites being taken down.

The FCA now has the power to take action against firms and individuals who promote “the murky side” of the crypto industry illegally. But data gained through a freedom of information request shows these powers have failed to completely clean up the UK’s crypto ads landscape.

“The rules require crypto ads to gain authorisation from the FCA or an FCA-authorised business before being put up online – or face the watchdog’s promise of ‘robust’ action,” the FT has said.

That being said, the regulator has recently taken action against nine finfluencers, or financial influencers, for illegal activity. The term refers to individuals who promote crypto schemes. The FCA is also talking to a further 20 individuals in relation to unauthorized crypto promotions.

Do Kwon in court

Speaking of taking action, South Korean crypto entrepreneur Do Kwon, who was extradited from Montenegro to the US last week, has appeared in a Manhattan court to face criminal charges.

Kwon is the co-founder of the bankrupt Terraform Labs and is accused of money laundering, as well as securities, commodities and wire fraud, according to reports.

Terraform Labs’ 2022 collapse “led to a $40bn implosion of its TerraUSD and luna tokens,” according to the FT.

The 33-year-old is accused of having “made numerous false disclosures and lied to investors, regulators and via social media about a range of crypto products and platforms connected to Terraform Labs,” according to the paper.

The indictment says: “Kwon’s constructed financial world was built on lies and manipulative and deceptive techniques used to mislead investors, users, business partners and government regulators regarding Terraform’s business.”

But Kwon has denied any wrongdoing and entered a plea of not guilty during his court appearance.

Europe’s MICA project

The European financial markets have finally managed to put together a comprehensive regulator mechanism for the crypto industry in the form of MICA (Markets in Crypto-Assets Regulation), which came into full effect on 30 December.

And analysts believe that, despite concerns about overregulation, the framework will help the crypto industry flourish in Europe and attract more investment in the long term.

Dmitrij Radin, the founder of Zekret and chief technology officer of Fideum, says: “Long-term, [MiCA is] absolutely positive. Every regulation helps us to mature the market. It will drive more funds and more users.”

But Radin has also warned retail investors and end users of crypto platforms about potential greater scrutiny in the future, as the new regulation will aim to focus on the “weak points of control” in Europe’s crypto space.

“The regulation also raises the possibility of enforcement actions against blockchain protocols that fail to comply with MiCA standards,” according to CoinTelegraph.

“European governments may pursue legal cases against noncompliant platforms during the early implementation phase.”

FCA licence for GSR

And lastly, GSR Markets UK, which is a subsidiary of the global cryptocurrency trading firm GSR, has received its licence from the UK’s FCA to operate as a crypto asset business.

“The approval makes GSR the first crypto liquidity provider to achieve dual regulatory authorization from both the FCA and the Monetary Authority of Singapore (MAS),” according to CoinTelegraph.

“The newly granted FCA registration enables GSR Markets UK Limited to facilitate over-the-counter (OTC) and programmatic execution crypto asset trading services for clients, including in the United Kingdom,” a press release has said.

Xin Song, Group CEO, GSR, has said: “Receiving FCA approval marks a significant milestone in our mission to shape a more transparent, inclusive global crypto trading ecosystem.”This licence is a latest sign of a more progressive regulation of the crypto industry by the UK’s financial regulators, and comes amid surging prices and increasing institutional investments in crypto over the course of 2024.