Crypto Shake

2022-04-14 19:40:00 ​​Cryptocurrency sector still reeling from European parliament votes

Cryptocurrency sector still reeling from European parliament votes
Crypto exchange providers to be held accountable to provide data on the unhosted wallet
Attendees at the Paris Blockchain Week Summit learned Wednesday that the cryptocurrency sector is still reeling from a series of votes in the European Parliament that some said might be regulatory overkill.

The EU’s plans to reduce the energy consumption of proof-of-work technology – which some feared might amount to a bitcoin ban – were defeated in March when voted on in the European Parliament. However, a second, equally contentious anti-money laundering measure did pass, and it could become legislation if governments sign up.

Under planned banking regulations referred to as the Travel Rule, parties involved in crypto transactions would have to identify each other. EU lawmakers want that requirement to apply even for tiny payments or those made to private individuals rather than regulated exchanges.

Assita Kanko, a lead lawmaker, urged that the travel rule would aid in doing away with crime, bringing more people into the sector.

“If the banking sector, which is seen by many in the crypto space as stuffy and outdated, can survive the travel restriction… Why couldn’t fashionable, cool crypto people? They could figure it out. I suppose I’m encouraging them to give it a shot.” she added shortly after her committee approved the measure on March 31.

Crypto exchange providers to be held accountable for providing data on the unhosted wallet
The regulation gives the crypto exchange provider control over information flow, allowing them to be held accountable for providing efficient data if they discover an unhosted wallet. Hedi Navazan, head of compliance for Crystal Blockchain, told attendees Wednesday.

The financial intelligent unit has the mandate to gather laundering cases suspects with information known as suspicious activity report, she added.

The Law Commission in the United Kingdom said in June 2019 that “too many low-quality” laundering reports were being sent to authorities, “undermining the integrity of the entire procedure.” Even the European Banking Authority, Europe’s own regulatory body, has complained about a “tick-box” method, in which financial institutions simply follow procedures rather than identifying. Open / Comment

2022-04-13 15:20:00 ​​The Kingdom Secures $3.6M Funding Round for Culture-led Metaverse

Culture-led Metaverse network, The Kingdom, has officially secured a $3.6 million funding on its private funding round. As per the information gathered by CoinQuora, the funding was joined by numerous investors that believed in the project to be at the forefront of Web3 development.

The Kingdom network will become an open-world metaverse designed to focus on culture-led experiences. The non-fungible tokens (NFTs) are one of the core facets of the network. In addition, it will feature various NFT avatars that can socialize, play and entertain in an immersive digital environment.

Furthermore, the network features land parcels for users to stake and enable them to establish new structures and zones.

The Kingdom CSO Josh Kovac comments:

The Kingdom is going to be a first of its kind metaverse that really harnesses the power of cultural zeitgeist. Our vision is to create a social hub for all, we see users from all over contributing to the fabric of this world. Inspired by the never-ending hustle of Asian metropolises, Miraijuku is the first city to be unveiled and unlocked in The Kingdom.

He added that users can “collaborate and create with others, earn through P2E games or simply explore the city of the future. We want our users to have the freedom to decide how they want to experience The Kingdom and its endless opportunities.”

In terms of use cases, The Kingdom introduces its play-to-earn (P2E) features for those who are interested in playing games and creating user-generated content. The users’ rewards can be used to purchase NFTs and upgrades for characters.

The network also enables brand partners to generate NFTs that can be sold or used in an open-world metaverse for various purposes. The Kingdom’s team is currently in talks with different organizations in and outside the crypto world to expand its marketing reach and collaborative opportunities. As per the network, the first NFT partnerships are expected to be announced in Q2 2022.

On the other hand, the vision for The Kingdom has attracted the attention of various investors and VCs in the space. A new private funding round raised $3.6 million in working capital for the team. The round noted participation by Infinity Ventures Crypto, Alameda Research, Shima Capital, Newman Capital, Sweeper DAO, 3 Commas, Chiron Partners, SMG, and Liquid Lab Ventures. Open / Comment

2022-04-12 13:25:00 ​​Cameroon, Congo & DRC Takes Major Steps to Foster Bitcoin And Crypto Adoption In their Countries

More nations are looking to tap into the opportunities associated with cryptocurrencies to boost their economies.

Three African countries, including Cameroon, the Democratic Republic of Congo (DRC), and the Republic of the Congo, have declared their intention to adopt cryptocurrency and blockchain-based solutions, to foster the growth of their economies.

Per a press release shared today, the three African nations are eyeing the Layer-1 proof-of-stake blockchain, The Open Network (TON), as the leading technology to enable their vision to become a reality.

Previous Relationships with TON

Prior to the announcement, the trio had tapped TON independently for a number of initiatives in a bid to deliver useful cryptocurrency and blockchain solutions.

So far, the engagements have yielded positive results and the African countries are committed to enhancing their relationships with the network, as part of efforts to boost their economies in the near future.

Reactions to the Upcoming Partnerships

“This marks the beginning of our journey to adopting cryptocurrency as a financial instrument within the DRC, and with the support of TON as a partner we aim to increase our nation’s exposure to modern financial tools,” Désiré Cashmir Eberande Kolongele, the DRC Minister for Digital Economy, said.

Aside from providing basic financial services for the unbanked and underbanked populace of the DRC populace, the country is also considering partnering with a TON to develop a national stablecoin to facilitate payments.

Both Cameroon and Congolese ministries of telecommunications also commented on the importance of the partnership to their economies, as they stressed that the collaboration will foster financial inclusion for their citizens.

“There is unbounded potential for these three countries to benefit from the adoption of cryptocurrency with our blockchain as the foundation. It’s fantastic that TON’s value is recognized in terms of its technology and utility,” Steven Yun, Founding Member of TON Foundation, said.

The Unending Benefits of Cryptos Toward World Economies Growth

The importance of cryptocurrency and blockchain payment solutions toward the growth of world economies cannot be overemphasized.

Cryptocurrencies are tipped to provide financial solutions to underdeveloped and developing countries, which have a majority of their citizens denied access to basic financial services.

For instance, in 2019, only about 12.4 million people in the Democratic Republic of Congo have access to basic financial services, whereas over 40 million adults have smartphones and access to the internet in the country.

These shortcomings highlight the need for cryptocurrency adoption in the country, as the majority of people who have access to the internet can also conduct financial services using digital currencies.

El Salvador Leads Countries’ Crypto Adoption

Last year, El Salvador announced its adoption of Bitcoin as a legal tender.

Even though El Salvador’s Bitcoin move has been heavily criticized, the country has stood behind its decision and has embarked on numerous Bitcoin accumulation sprees. Open / Comment

2022-04-11 15:00:14 ​​Should Biden Administration or Congress Address Stablecoin Regulation? Democrats Divided

Currently, Democrats are divided on whether the Biden Administration or Congress should be directly addressing stablecoin regulation, as questions surrounding whether the dollar-pegged asset should fall under the umbrella of existing rules or whether new regulations are necessary?

Since October 2021, stablecoins have grown approximately 500%, according to the Biden Administration. Despite the bipartisan consensus regarding the need for federal intervention in the stablecoin market, lawmakers are playing a guessing game as to when to intervene.

“This is a relatively narrow segment of the crypto universe and it would be very constructive if we provided some regulatory certainty and clarity,” said Senator Pat Toomey (R-PA), a seasoned member of the Senate Banking Committee. Sen. Toomey has continued to advocate for regulation via banks to address the current issues associated with stablecoins.

Sen. Toomey’s proposed bill
Last week, the Senate Banking Committee released a draft bill, where Toomey stated that he wants stablecoin issuers to adopt clear redemption policies and implement disclosure mechanisms surrounding reserve asset backing. He also recommends that issuers meet liquidity and asset quality standards.

By allowing stablecoin issuers to operate according to state rules, Sen. Toomey believes this would address many of the industry’s concerns, specifically the recent actions of the CFTC against Tether.

Democrats hesitate to legislate stabelcoins
However, some Democrats are hesitant to be proactive in addressing this type of legislation, preferring to pass a bill that addresses the wider range of regulatory issues related to cryptocurrency, according to the Wall Street Journal.

In the absence of any congressional action, the Biden administration said that it would encourage Treasury Secretary Janet Yellen’s Financial Stability Oversight Council to recognize elements of stablecoin processing as being systemically important for the stability of financial markets. Ultimately, this could result in tighter oversight of stablecoin assets, which some Democrats prefer to the legislative structures that currently have bipartisan support.

Senator Sherrod Brown (D-OH), chairman of the Senate Banking Committee believes that the Biden administration should continue under its own authority.

However, Rep. Ritchie Torres (D-NY), disagrees, stating his preference for congressional legislation:

“The lack of congressional action has left behind a power vacuum that regulators like the SEC are trying to fill and without a congressional statute, the regulations could vary widely from administration to administration,” he said.

Delays could hurt Democrats
Last month’s executive order from the Administration requested that agencies review areas in which new legislation was needed to improve the handling of digital assets.

Given that some of those reviews could take months, lawmakers predict that Congress won’t take any major action regarding cryptocurrency until next year – an act that could hurt Democrats in the forthcoming midterm elections.

With a president who has a disapproval rating below 50 percent in the Marist poll, losing 37 House seats could be detrimental for the upcoming November election, if Democrats fail to act on stablecoin regulation. Open / Comment

2022-04-10 19:30:00 ​​CoinSpot Now Lets Australians Buy Cars With Crypto in Country First

One of Australia’s largest crypto exchanges by total users has inked a deal with a local retailer allowing individuals to purchase luxury vehicles using crypto.

The deal between crypto exchange CoinSpot and Melbourne-based car retailer Dutton Garage means customers of the car company can now make a purchase in up to 30 cryptos including bitcoin, according to a statement on Friday.

The move to allow investors to purchase vehicles using digital assets breaks new ground for the country and is one of the world’s first since electric carmaker Tesla initially proposed the sale of its cars for bitcoin last year. Tesla CEO Elon Musk later walked back the company’s decision citing environmental concerns over bitcoin mining.

Purchases will be made available through CoinSpot’s over-the-counter trading desk which the exchange says will limit exposure to market fluctuations, minimize low liquidity risk and reduce slippage for those customers transacting greater than $50,000.

The crypto industry’s relationship with luxury vehicles has a deep history stemming back to 2011 when startup CEO Peter Saddington cashed in 45 bitcoin he had acquired for $115 to buy a $200,000 Lamborghini Huracan. The Lamborghini, or “Lambo,” became somewhat of a status symbol to prove one’s success in the crypto world and inspired a meme culture around it.

Indeed, some luxury vehicles listed on Dutton’s site, including a 1967 Ford Mustang and a 1964 Porsche Coup, retail for around $350,000 (US$262,000).

Both companies said the partnership was in response to “strong demand” from Australian customers to purchase vehicles and other luxury items using crypto.

“With Web3, digital currencies are becoming more than just stores of value, and instead, legitimate ways to purchase big-ticket items,” said CoinSpot Chief Product Officer Gary Howells. “Increasing crypto’s utility is the key to driving mass adoption of what we believe is the future of finance.” Open / Comment

2022-04-08 19:40:00 ​​Robinhood Releases Crypto Wallet to 2M Users, Plans Integration With Bitcoin Lightning Network

MIAMI — Robinhood Markets (HOOD) said Thursday it has activated its crypto wallet for 2 million “eligible” customers, making digital asset transfers broadly possible in the long-firewalled investments app.

Chief Product Officer Aparna Chennapragada made the announcement on stage at the Bitcoin 2022 conference in Miami.

Only a handful of wallet beta testers could move bitcoin (BTC), ether (ETH), dogecoin (DOGE) and a handful of other traded coins in and out of Robinhood’s walled garden before. Now, all waitlisted customers outside of regulatory no-go zones Nevada, New York and Hawaii can do so.

Additionally, she said Robinhood will add support for bitcoin transactions on the Lightning Network, the speedy, low-cost settlement layer for Bitcoin.

“For the larger community this is a fantastic way” to access bitcoin cheaply and in a green way, she said, adding that BTC is the top recurring buy on the app.

HOOD’s crypto push
First teased last September, Robinhood’s crypto wallet eschews advanced features like self-custody. “Corporate wallets” control customers’ private keys, a FAQ page read; it said those who want to be their own bank can move their digital assets elsewhere.

That won’t likely matter to the troves of day traders who got their first taste of the crypto markets betting on Robinhood-held DOGE. They can now spend and send those meme coins – perhaps on Dallas Mavericks basketball tickets or a Tesla-branded belt buckle.

Nearly 10 million Robinhood users swapped coins early last year in one sign of the app’s crypto appeal, the company has said. Robinhood’s almost three-year-old crypto trading functionally has produced an explosion of revenue, last quarter generating $48 million for the publicly traded firm.

“Wallets are just the first step we’re taking to connect our customers to the broader crypto ecosystem,” CEO Vlad Tenev said in a press statement.

Limitations
Still, Robinhood’s multi-asset wallet falls short of true functionality. It cannot plug into Ethereum-based services as MetaMask does. It cannot accept ERC-20 tokens, non-fungible tokens (NFTs) or any asset outside of Robinhood’s trading list. Tokens generated by airdrops and forks won’t work, either.

“Any NFTs sent to a Robinhood Ethereum address may be lost and unrecoverable,” the FAQ page said.

Staking also appears to be off-limits for now. Tenev has previously acknowledged customers’ desire for the yield-earning feature and said during last quarter’s earnings call that Robinhood was investing in the necessary tech. A staking service would have to be “compliant,” he said.

Users won’t be charged for moving their Robinhood-based crypto into wallets that have such abilities. The company said it will apply estimated gas fees but not withdrawal fees to requested outbound transfers.

There’s a $5,000 daily cap on outbound transfers and newly-acquired crypto stays put until the transaction settles, the web page said. Further, users must undergo an identity check and enable two-factor authentication to access the wallet. Open / Comment

2022-04-07 15:15:00 ​​Bank of England Governor Says Crypto Creates ‘Opportunity for the Downright Criminal’

The governor of the Bank of England, Andrew Bailey, has warned that crypto creates an “opportunity for the downright criminal.” The central bank chief described: “You only have to ask the question ‘What do people committing ransom attacks usually demand payment in?’ The answer is crypto.”

Bank of England’s Governor Warns About Cryptocurrency
Bank of England (BOE) Governor Andrew Bailey talked about cryptocurrency Monday at a “Stop Scams” conference organized by the central bank.

Bailey said cryptocurrencies are the new “front line” in criminal scams, stressing that crypto created an “opportunity for the downright criminal.”

He described:

You only have to ask the question ‘What do people committing ransom attacks usually demand payment in?’ The answer is crypto.

Bailey urged banks, tech companies, and government institutions to work with the Bank of England to tackle scams targeting consumers, which he acknowledged is a job that “will never be done.”

The central bank governor also accused some crypto users of violating sanctions imposed on Russia after its invasion of Ukraine. He asserted:

Some crypto enthusiasts say they shouldn’t be covered by Russian sanctions because that’s not their world. I’m sorry, it is your world. We’re all in the same world.

The British government unveiled a detailed plan earlier this week to position the U.K. as a global crypto hub.

“We think that by making this country a hospitable place for crypto we can attract investment … generate swathes of new jobs … and create a wave of ground-breaking new products and services,” said John Glen, the U.K.’s economic secretary to the Treasury. Open / Comment

2022-04-05 16:10:00 ​​Traders Drain $4.3 Billion Worth of Bitcoin from Exchanges

A massive amount of Bitcoin is being actively removed from exchanges by traders and investors, according to the most recent Glassnode data. As the project suggests, March became the fourth month in a row when exchanges lost around 100,000 BTC.

Series of exchange outflows
Starting from the end of 2021, traders and investors were actively moving funds away from exchanges as trust in centralized exchanges dropped significantly and the market slowly entered the accumulation phase.

Bitcoin exchange outflow volume recently hit a rate of 96.2k BTC per month.

Aggregate exchange outflows of this magnitude have only been seen on a handful of occasions through history, with most being after the March 2020 liquidity crisis.

Back at the beginning of January, Bitcoin already lost almost 40% of its value since reaching the all-time high. Reportedly, at that time, Bitcoin whales started accumulating new coins in their wallets by purchasing new assets on centralized exchanges and moving them to their noncustodial wallets.

With intensified accumulation and supply removal from trading platforms, Bitcoin may become a victim of a supply shock in the future in the event of the appearance of strong demand from retail or institutional traders.

Investors losing trust

Another cause fueling large exchange outflows is tied to the series of limitations and bans of account on large exchanges like Kraken or even Binance. The CEO of Kraken urged users to move their holdings away from exchange-controlled wallets in order to avoid any trading or withdrawing restrictions, which the exchange management team cannot control due to the regulators of the countries they are based in.

While large investors choose wallets over trading platforms, smaller market participants are moving their funds to decentralized trading platforms that can avoid sanctions or regulations from third parties. Open / Comment

2022-04-04 16:10:00 ​​Colombian Tax Authority Warns About Consequences of Not Declaring Crypto Related Taxes

The Colombian tax authority, DIAN, has reminded taxpayers that they need to start registering cryptocurrencies in their statements starting this year. The director of the DIAN, Lisandro Junco, reminded cryptocurrency users that this kind of asset is taxed as any other asset held by citizens. Colombia has already collected $1 billion in digital economy-related taxes.

Colombian Citizens Must Start Including Crypto in Their Tax Statements
The Colombian tax authority has reminded taxpayers about their duty of declaring cryptocurrency assets in their tax statements starting this year. In a consultation made by local media, the organization informed the public that it is empowered to perform verifications on the received data from taxpayers to ensure the correct application of the tax laws of the country.

The director of the tax authority, Lisandro Junco, informed about crypto assets and their tax status in Colombia. He declared:

You have to pay taxes even if it is an element of the digital economy.

Furthermore, the organization defined that all elements fulfilling the definition of assets in the law should be declared, including bonds, stocks, and cryptocurrencies. But not only cryptocurrency users need to know about crypto taxation. Cryptocurrency miners must also declare their mining numbers, because the agency has also classified mining earnings as income, according to BDO Colombia, an accounting firm.

Applicability and Penalties

While most tax watchdogs still depend on users to report their crypto transactions and holdings, the Colombian tax authority has some sources that can help it detect cryptocurrency tax evasion. Junco stated that the DIAN is immersed in different exchanges of information with other countries, that deliver the names of the citizens that should be declaring crypto-related taxes. Junco stated:

And what we do is review the substantial element against the tax return, whether or not there is room for an inaccuracy, an evasion or if it is up to date.

The penalties for not declaring cryptocurrency taxes in Colombia amount to double the funds not included in the tax statement. Colombia has collected $1 billion in the last three years in taxes linked to the digital economy, according to Junco, who invited taxpayers to declare their cryptocurrency holdings.

The authority had previously announced a series of actions designed to tighten the control on cryptocurrency usage to detect tax evasion faster. Open / Comment

2022-04-03 18:55:00 ​​Polygon ID platform seeks to enhance self-agency and privacy in the Web3 space.

The zero-knowledge-based platform is expected to be fully operational in Q3 of 2022.

Layer-2 Ethereum scaling solution, Polygon (MATIC) has announced the establishment of Polygon ID, an identity platform designed to complement the decentralized finance and decentralized application (DApp) economies by providing users greater privacy and sovereignty within Web3.

Professed to be the first identity platform of its kind to adopt cryptographic-based zero-knowledge technology, the platform will utilize Iden3’s Circom ZK toolkit, including zk-SNARK cryptography for the generation and the zk-Proof Request Language protocol to verify the authenticity of the proposed claim.

Users of the platform can provide proof of their identity when engaging in activities such as initial coin offerings, token airdrops, decentralized exchange (DEX) trading, or those in which strict Know Your Customer (KYC) requirements apply.

With the capacity to introduce a Sybil-resistant one-vote-per-person mechanism, the use-cases can also expand beyond the DeFi sector, to the metaverse, gamify and nonfungible token (NFT) industries whereby asset authenticity is verified via on-chain, privatized claims.

The team is expecting to deploy the public version of the ID wallet app during Q2 of 2022, alongside features such as “Claims Issuance, Private Authentication, zk-Proof Generation and Verification,” with the full platform release and accompanying SDK functionalities scheduled for the following quarter.

In November 2021, Polygon made a concerted effort to expand its zero-knowledge proof development by pledging over $1 billion towards the technology, a sum that included 250 million MATIC tokens for startup firm Mir.

On a video call with Cointelegraph, Rafal Nazarkiewicz, the product manager at Polygon Hermez and Polygon ID, shared exclusive insights into the technicalities and purported benefits of the technology for blockchain advocates and consumers, alike. Open / Comment