Russia Legalizes Crypto Mining Operations

CRYPTO
Russia Legalizes Crypto Mining Operations

Russia has taken a major step by legalizing cryptocurrency mining, set to take effect on November 1, 2024. This move opens the door for legal entities and registered individual entrepreneurs to engage in mining, while those not registered can operate rigs only within strict energy limits. With mining now regulated, the Bank of Russia will play a key role in overseeing the sector, ensuring that miners comply with guidelines set by the government and maintain transparency about their digital currency holdings.

This law also restricts the advertising and offering of cryptocurrencies to the public, reflecting Russia’s cautious approach to widespread crypto adoption. The legal framework emphasizes maintaining monetary stability, with the central bank having the power to impose restrictions on transactions involving digital currencies.

Additionally, an experimental regime will begin on September 1, 2024, giving the Bank of Russia authority to permit selected companies to engage in cross-border settlements and exchange trading using digital currencies. Companies interested in this regime will need approval from the central bank. This experimental phase could pave the way for broader crypto use in foreign trade and exchange trading within the country.

This dual approach represents a cautious yet progressive shift in Russia’s stance on digital currencies.
Source

ROBINHOOD
Robinhood Launches Margin Trading in UK

Robinhood is expanding its footprint in the U.K. by introducing margin trading, a feature that allows users to borrow funds from the broker to increase their trade size. This comes six months after Robinhood first launched its app in the U.K. The margin trading feature, also known as leveraged trading, has been popular in the U.S., where it played a central role in the 2021 meme stock frenzy driven by Redditors on "WallStreetBets."

The U.K. rollout faced some regulatory hurdles, but Robinhood is now offering two-to-one leverage for qualified traders, requiring a minimum of $2,000 to open an account. Robinhood’s U.K. president, Jordan Sinclair, emphasized the company’s focus on ensuring customers have access to the right information and avoid excessive losses.

In addition to margin trading, Robinhood introduced 24/5 trading for U.K. users, enabling them to trade U.S. stocks around the clock. While U.K. stocks are not yet available, Robinhood plans to expand its offerings and aims to establish itself as a long-term investment platform in the region.
Source

WAR
Russia Enlists North Korean Troops

Russia's reliance on North Korean troops underscores the strain on its military and economy as it struggles to sustain the war in Ukraine. Reports from South Korean intelligence confirm the presence of North Korean officers in Ukraine’s Donetsk region, aiding Russian troops. Both Russia and North Korea deny these claims, but analysts suggest this military collaboration highlights Russia's weakening economy, which is bolstered by massive defense spending but strained by Western sanctions, a brain drain, and significant war casualties.

Russia's labor market is tightening, with high inflation and a defense sector consuming a growing share of the workforce. Experts predict that as the economy deteriorates, President Putin will face mounting challenges in maintaining military strength. With dwindling resources, Russia’s economy may face a "meltdown" next year, potentially undermining the war effort and destabilizing Putin's regime. Russia's increasing isolation could drive its economy toward a model similar to that of its ally, North Korea.
Source

WALL STREET
Top Analyst Picks: Fortinet, GitLab, Nvidia

1. Fortinet (FTNT): A cybersecurity company leveraging AI and machine learning to provide secure access services. TD Cowen analyst Shaul Eyal recently reaffirmed a buy rating, raising the price target to $90, citing strong demand and business recovery. Fortinet is also benefiting from AI-led networks and cloud security growth.

2. GitLab (GTLB): An AI-powered software company that boosts developer productivity and reduces security risks. Mizuho analyst Gregg Moskowitz reiterated a buy rating with a $62 target, citing GitLab’s strong market position and potential growth, especially with AI and the GitLab Dedicated product.

3. Nvidia (NVDA): A semiconductor giant driving AI advancements through its advanced GPUs. Goldman Sachs analyst Toshiya Hari raised his price target to $150, highlighting Nvidia’s competitive edge and the expected growth from AI-driven demand and its Blackwell platform.

These stocks are favored for their technological innovations and growth in AI-driven sectors.
Source

Meme of the day

Word of the day
Quipu

An ancient Peruvian device used for recording events and accounts

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.