2 days ago • cryptodaily
Hong Kong's Open Crypto Regulatory Framework Attracts New Firms
Hong Kong is making significant strides towards becoming a global crypto hub, with the latest developments indicating that the city is positioning itself as an attractive destination for crypto-related businesses.
Recent reports indicate that Signum Digital, a joint venture of Coinstreet and Somerley, has received approval-in-principle from the Hong Kong Securities and Futures Commission (SFC) for its security token offering (STO) and subscription platform, which will be a pioneering development in Hong Kong. Cryptocurrency data firm Kaiko has also announced its plans to move its Asian headquarters from Singapore to Hong Kong, citing the city’s pro-crypto policies and impressive recovery from covid-related restrictions.
Security tokens, a new category of digital assets built on blockchain technology, represent ownership of tangible assets like private equities, real estate, art, and collectibles. By being linked to real-world assets, security tokens lower risks for potential investors, facilitate research processes, and provide a foundation for the market value of the investment opportunity.
According to Signum Digital, following the receipt of final authorization from Hong Kong’s SFC, it will manage the STO platform using the brand name “CS-Pro.” The STO platform is expected to create new investment opportunities for everyday investors, and it will be subject to the regulatory frameworks set up by the Hong Kong government.
Kaiko, on the other hand, is relocating its Asian headquarters from Singapore to Hong Kong due to the latter’s pro-crypto policies and attractiveness to investors, hedge funds, and asset managers. Kaiko has built a reputation for providing credible market data on digital assets to institutional investors and market participants.
Hong Kong’s push to become a global crypto hub has attracted other players in the crypto industry, including Singaporean bank DBS and Seychelles-based crypto exchange, Huobi. The city’s administration is committed to building an enabling environment that facilitates the growth and development of the digital asset industry, and it plans to introduce a mandatory license for all cryptocurrency exchanges and stablecoin providers operating within its territory. The city also introduced the world's first tokenized green bond.
Hong Kong's efforts to establish itself as a leading crypto hub are not only reflected in the influx of crypto-related businesses, but also in the regulatory policies and plans being implemented by the local government. In fact, Hong Kong's growing faith in the digital asset market is apparent in its decision to allow individual investors to freely trade major cryptocurrencies like Bitcoin and Ether, among others.
The Hong Kong government is set to introduce a mandatory license for all cryptocurrency exchanges and stablecoin providers operating within its territory. This move aims to regulate and monitor the activities of digital asset companies, ensuring that they operate within the boundaries of the law and provide a safe environment for investors.
Hong Kong is determined to build a regulatory framework that encourages digital asset adoption while protecting its citizens against industry crises. This is evident in the city's response to the FTX bankruptcy saga that occurred in November 2022. As part of its measures to mitigate the impact of the crisis on its citizens, Hong Kong's Securities and Futures Commission (SFC) mandated FTX to pay a compensation fee of HKD 1.2 billion ($154 million) to affected customers.
Hong Kong's efforts to regulate the digital asset industry are not limited to its domestic market. The city is also exploring ways to collaborate with other countries to establish an international regulatory framework for the crypto industry. In particular, Hong Kong's SFC is a member of the Global Financial Innovation Network (GFIN), a group of regulators from different countries that aims to promote innovation in the financial sector while maintaining regulatory compliance.
It's admirable how Hong Kong's determination to build a regulatory framework that fosters digital asset adoption while protecting its citizens is a positive development for the crypto industry. As the city continues to attract more businesses and investors, its pro-crypto policies and regulatory initiatives are expected to provide a secure and stable environment for the growth and development of the digital asset market.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
2 days ago • cryptodaily
SingularityNET ($AGIX) Launches $RJV Utility Token, Surges 150%
In an environment where the majority of the cryptocurrency market is grappling with the ongoing crypto winter and challenges within the banking sector, Rejuve.AI ($RJV), an artificial intelligence token with connections to Cardano, has experienced remarkable traction, all while of course, also experiencing some degree of volatility.
At the time of writing, the token's price has skyrocketed by roughly 153% within the past 24 hours, reaching a new all-time high (ATH) of $0.1132, according to data from CoinMarketCap.
The token's recent surge can be traced back to its successful Token Generation Event (TGE), which followed a series of community funding round events. The token's design is linked to both Ethereum (ETH) and Cardano (ADA), leveraging the capabilities of two leading proof-of-stake (PoS) Layer 1 protocols. Rejuve itself was launched by SingularityNET ($AGIX) as a utility token, with the prospect of accelerating the extension of human health and lifespans. SingularityNET's thrust, in terms of the social impact it aims to achieve, is quite straightforward: to enable individuals to easily "create, share, and monetize" AI services through a globally accessible AI marketplace.
The current enthusiasm surrounding the Rejuve.AI protocol and token can be attributed to the crypto market's broader excitement in terms of artificial intelligence ecosystems and projects. With the introduction of OpenAI's ChatGPT and GPT-4 algorithmic models, numerous crypto projects are pivoting towards AI, devising solutions and applications to advance the frontiers of both AI and blockchain technology.
The convergence of AI and blockchain technology has garnered support from numerous proponents, and it is this intersection that Rejuve.AI is currently exploring. However, while the integration of artificial intelligence (AI) within the Web3 ecosystem offers numerous benefits that have the potential to revolutionize the way we interact with decentralized networks and applications, there are several factors that we (humans, yes, all too human humans) need to stay wary of.
The unethical use of artificial intelligence, especially in the context of Web3 and blockchain development, may lead to unintended consequences and threats. This may also be countered given how recent deployments of OpenAI's GPT-4 model were used to debug smart contract code, opening the possibility of outsourcing or automating code audits to large language models which contain vast libraries and databases of smart contract code, even those which may be too obscure or may be reserved only for those who have been developing smart contracts since its heydays sometime between 2013 and 2014, which was when Ethereum and other derivatives first sprang.
In this instance, AI-driven applications may be exploited for malicious purposes, such as manipulating markets, facilitating illegal activities, or creating fraudulent dApps. Moreover, the mass use of AI can amplify existing biases and inequalities, as algorithms may inadvertently reinforce discriminatory patterns present in training data.
Another potentially incriminating quandary with the use of AI for Web3 and blockchain development is this: the centralization of AI development and resources can potentially undermine the decentralized nature of Web3, resulting in power imbalances and compromised security. Consequently, it is crucial to approach AI integration in Web3 with caution, ensuring ethical and responsible use to prevent negative outcomes.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice. Opinions stated herein are solely of the author's, and hence do not represent or reflect CryptoDaily's position on the matter. The author has no stakes in any of the digital assets and securities mentioned, and does not have any significant hold of own any cryptocurrency or token discussed.
4 days ago • cryptodaily
ChangeNOW Plans to Seek SFC Regulatory Approval for Its Official Hong Kong Market Entry
ChangeNOW, a non-custodial crypto exchange platform that also offers a broad range of crypto-related products and services, is setting its sights on Hong Kong, a major financial center in Asia, according to Hong Kong media reports.
After seeing a growing interest in the platform among Hong Kong users, ChangeNOW made the commitment to secure a license from the local regulator that will allow it to extend its reach and contribute to the growing popularity of cryptocurrencies in the special administrative region of China.
ChangeNOW announced its plans to apply for a license from the Securities and Futures Commission of Hong Kong (SFC) as part of its commitment to creating a safe, transparent, and compliant crypto trading ecosystem and following Hong Kong regulators' proposed decision to make large-cap tokens available to retail investors through licensed platforms.
Retail clients may be able to access licensed virtual asset providers starting June 1, 2023. According to the SFC, the proposal will be subject to public consultation until March 31.
Hong Kong has experienced an explosive increase in cryptocurrency interest, with ChangeNOW specifically witnessing its HK user numbers spike by 62% and transaction volumes peak by 202% in February. According to the exchange, Hong Kong users prefer stablecoins based on Polygon and TRON, as well as the SHIB altcoin.
Source
According to ChangeNOW, the most popular assets among Hongkongers are TRON, MATIC as well as stablecoins on the Polygon and Tron networks. This surge in activity indicates the growing popularity of cryptocurrency in the region and the territory's increasing openness to cryptocurrencies.
A number of factors may have influenced Hongkongers to embrace ChangeNOW. First of all, the platform earned a sterling reputation for its efforts in combating hacks and fraud, culminating in the recovery of more than $20.5 million worth of tokens and coins. In 2021, ChangeNOW recovered $15 million worth of crypto for Compound and just a few weeks ago, it stopped hackers from stealing $1.5 million worth of Algorand tokens.
Hong Kong users' preference for ChangeNOW may also be attributed to the fact that it has evolved into an all-in-one solution for crypto investors. Dozens of fiat currencies and over 800 virtual currencies are supported by the platform that can be exchanged in one click.
With ChangeNOW's fiat-to-crypto on-ramps and off-ramps, along with its non-custodial NOW Wallet, anyone can buy, sell, and store crypto without prior experience with blockchain or crypto trading. The platform's premium version, ChangeNOW Pro, is available for a more personalized, smoother user journey.
ChangeNOW has a number of nifty features that make it the go-to cryptocurrency exchange platform. Among these are intuitive interfaces available in several languages, fixed and floating exchange rates, fast transaction times, a non-custodial architecture that means users keep control of their own funds at all times, stringent AML and risk-prevention mechanisms, no hidden commissions, and a solid support team.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
4 days ago • cryptodaily
EU Parliament Passes Data Act That Affects Smart Contracts
The European Parliament has voted in favor of proposed legislation that will challenge the immutability of smart contracts.
The European Parliament on Tuesday adopted legislation under the Data Act which includes provisions on smart contracts and the internet of things (IoT). The legislation was passed with 500 votes in favour and 23 against.
Although the proposed legislation, which is not law yet, does not take specific aim at crypto, it could affect decentralized finance (DeFi), according to reports by Blockworks. The proposed legislation addresses smart contracts under Article 30. It includes provisions such as “rigorous access control mechanisms at the governance and smart contract layers” and protections of trade secrets integrated into the design of smart contracts. The Block reports that smart contracts would have to be designed under the new provisions with the possibility to terminate or interrupt transaction mechanisms.
Under the new rules, smart contracts will be subject to “harmonized standards” defined in the Act.
The new version of the bill also reintroduces strict compliance measures for smart contract developers that were previously removed. The bill reads:
The vendor of a smart contract or, in the absence thereof, the person whose trade, business or profession involves the deployment of smart contracts for others in the context of an agreement to make data available shall perform a conformity assessment with a view to fulfilling the essential requirements.
Confusion and Uncertainty Over the Data Act
The revised version of the bill has drawn criticism from the DeFi community. Curve Finance, a major decentralized exchange, said it would be “impossible to comply” with the new regulations:
> Smart contract developers may need to design reset possibilities to allow termination or interruption of transactions.> The European Parliament adopted legislation under the Data Act on Tuesday, with 500 votes in favor and 23 against.Fire them all. Impossible to comply here https://t.co/FV8lJdcrqX
— Curve Finance (@CurveFinance) March 14, 2023
Thibault Schrepel, an associated professor at the VU University Amsterdam, said the new bill “endangers smart contracts to an extent that no one can predict.” He tweeted saying:
Article 30 does not provide clarity as to who should be able to ‘terminate the continued execution of transactions.’ Adding, “Is it the creator of the smart contract? Public authorities? Courts?”
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
4 days ago • cryptodaily
What is EUDI and how does Dusk Network’s Citadel fit in it?
On 10 February, 2023, the European Union published an exciting, but incredibly complicatedly named document, specifically The Common Union Toolbox for a Coordinated Approach Towards a European Digital Identity Framework: The European Digital Identity Wallet Architecture and Reference Framework, or ARF. We will dive into this document and what it means for Europe and for Dusk Network here, and to keep things brief, will follow the EU’s own suggested abbreviations for this document: EUDI and ARF.
What is EUDI?
The concept of a European Digital Identity (EUDI) has been brewing for a while now. All the way back on the 3rd of June 2021, the European Commission announced its intention to lead the way in making this product available to all European citizens. Now, almost two years later, the EU is ready to start moving on to the piloting phase. But piloting what?
In effect, EUDI is a form of identification that can be used by any citizen of any European Union member state, by any company operating in the European Union, and accepted by any business or government agency in the European Union. Rather than replacing pre-existing identity mechanisms (i.e. national ID cards), EUDI sits alongside those as an auxiliary digitized identity system. For example, a bank in the Netherlands would continue to accept the Dutch identity card for new account openings, but would also accept EUDI for non-Dutch residents, meaning that they would only need to support two forms of identity verification. This is a step forward from banks’ current options to either learn how to support a plethora of identity certificates OR to restrict services to only people with Dutch IDs.
EUDI would not be limited, however, only by the services that a member state’s identity card is used for, but rather would also extend to any interaction where attributes about a person need to be proven. The use cases that the EU itself identified are far and wide, including:
Secure and trusted identification to access online services
Mobility and digital driving license
Professional business certifications
Paying for things where different prices occur, such as toll roads
Health records such as patent summaries, or ePrescriptions
Educational credentials and professional qualifications
Digital Finance products
Digital Travel Credentials (such as passports and visas)
Currently, proving identity and credentials in the European Union is confusing and prone to errors. In fact, a huge number of different certifications are needed for whatever it is that a citizen is trying to do, which also differ in number and style from member state to member state. True to the European mission to harmonize all member states into a single trade and travel area, they wish to solve this problem with one single EUDI for all.
What is ARF?
ARF is a recent document that marks the beginning of the EUDI pilot phase. It is essentially a checklist for each member state to agree upon and harmonize before piloting can commence. This includes:
Defining roles and responsibilities of every player in the EUDI process.
Outlining functional and non-functional requirements of the EUDI Wallet.
Identifying potential building blocks.
Since each member state’s implementation of EUDI needs to be interoperable with all the others, it is critical that everyone starts by building on the same set of standards and using consistent terminology. This is important when it comes to specifics like certifying the validity of an ID or document. For example, if a certificate has an expiry date, it should automatically become invalid on or after that date. But should the issuer also have the ability to revoke the certificate at any point before the certificate naturally expires? And if something is valid ‘until it is revoked’, does it need an expiry date just in case? The ARF sets guidelines for how all these things should be set up, how the information would flow between the parties involved, and who should have access to what.
This is crucial, given that multiple parties are involved in even a simple transaction like issuing a discount rail ticket to a student. In this example, the parties include:
The student.
The railway operator.
The university (which verifies the student’s status).
A national student body (who may also have to verify the student).
The operator of the railway station (if different from the operator).
The train ticket website that sold the ticket.
As you can see, even a seemingly simple transaction like purchasing a train ticket for a student can involve up to six different parties. Can you imagine what kind of complexity might be involved in dealing with sophisticated financial instruments?
Why does Dusk Network welcome this?
At Dusk Network we believe that the ARF specifications are an important step towards improving privacy and security in the EUDI process: two of our main priorities. The above (fairly simple) example of a student purchasing a train ticket highlights the need for selective disclosures. They would allow individuals to share only the necessary information, while simultaneously making unsafe practices like sharing copies of IDs or requiring personal data completely obsolete. You can think of selective disclosures like showing someone your driving license, but with your fingers covering all the information except your photo, since that is all that is really needed.
Data leaks are becoming increasingly more common in society, and we at Dusk are alarmed that even the simplest of transactions carry a big potential for data leakage. The easiest way to protect users and organizations is to either store data in a secure encrypted format or to not get any exposure to it.
To address this concern, the ARF specifications point to a EUDI that must-have features such as certificate issuance and revocation, encryption, secure transfer of identity and other personal information, and a range of selective disclosure options.
That sounds a little familiar, doesn’t it?
Why use Citadel for EUDI?
Citadel is Dusk’s privacy-preserving digital identity solution that allows for privacy, compliance, decentralization, and a one-and-done approach to KYC. As such it would be a great choice for EUDI for multiple reasons, but mostly for privacy, compliance, and efficiency.
Privacy is a key concern for everyone involved in the EUDI process. Citadel is built using zero-knowledge proofs (ZKPs), which means that private data does not need to be revealed in order to confirm that a person has legitimate access to a service, is authorized to enter a country, or has a legitimate right to be somewhere. This approach to privacy and identity is new and revolutionary and allows for a solution that preserves privacy while still providing secure identity verification. In that sense, it goes above and beyond the EUDI’s current ambition of issuing a digital version of what already exists.
ZKPs have the power to prove that something is true without any other disclosure and in the case of the EUDI, that would translate into giving people the power to prove eligibility without having to share their identity. Whether they enter a country, open a bank account, or even access a service, Citadel would ensure that their data remains private as well as dramatically reducing any chance of hackers’ attacks.
Compliance is another advantage that Citadel offers, specifically programmable compliance. The EU can program its regulations into Citadel itself, which not only ensures compliance but it also makes it easier to update the regulations as things change.
For example, during Brexit, Citadel as the EUDI could have been used to update the system and change what was and wasn’t allowed, making it simpler to maintain compliance. Presumably, UK citizens’ EUDIs would have been made invalid.
Finally, efficiency is a crucial advantage of Citadel. Unlike traditional systems that require extensive data storage and compliance departments, Citadel eliminates the need for these costs. With Citadel, there would be no need to maintain redundant copies of databases storing the digital identities of approximately 450 million people, alongside entire legal, compliance, and cybersecurity departments. Only proof of eligibility would be transmitted, while data would not. If there is nothing to hack, there’s no need for all this overhead.
In conclusion, Citadel has the potential to provide both the EU and its citizens with the privacy, programmable compliance, and efficiency that they need to make digital identities a success. Thanks to its use of zero-knowledge cryptography and programmable compliance, Citadel offers a new approach to digital identity that is both secure and efficient and has the potential to revolutionize the way we approach identity verification.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
5 days ago • cryptodaily
Wemade announces Partnership with Space and Time to Power Blockchain and Gaming Services
Seoul, South Korea, 15th March, 2023, ChainwireWemade Co., Ltd (KOSDAQ:112040), one of the largest publicly-listed gaming companies in South Korea with a market capitalization of US$1.4 billion, has announced a strategic partnership with Space and Time (SxT), a leader in decentralized data warehousing. The partnership will allow Wemade to power its blockchain and gaming services with Space and Time’s decentralized suite of developer tools.
Today, Wemade services more than 20 different play-to-earn (P2E) games across all genres, including MIR M and the world's no. 1 blockchain game MIR4, on its global open blockchain gaming platform WEMIX PLAY. This is part of the mega-ecosystem that its blockchain developer subsidiary, WEMIX is building which encompasses its own mainnet, WEMIX 3.0; an extensive range of services like NFTs and DeFi; and WEMIX coin - the bridge that connects all of the components of the mega-ecosystem. WEMIX has also announced plans to launch an Ethereum layer-2 utilizing zero knowledge proof (ZKP) protocols that will improve scalability while still ensuring users' privacy and security. Space and Time and Wemade are planning to closely collaborate in the future with next-generation decentralized infrastructure for more robust and scalable GameFi development.
"We believe that blockchain is the future of gaming, offering gamers greater ownership and control over their digital assets," said WEMIX CEO Shane Kim. "As the blockchain transformation of traditional games continues to grow, the partnership with Space and Time will help strengthen our blockchain infrastructure capabilities and contribute to our commitment to building an inter-game economy."
Space and Time packages a full suite of developer tools in a single decentralized deployment. The platform provides developers with real-time, tamperproof indexed blockchain data, a hybrid transactional and analytic (HTAP) data warehouse, and a serverless API gateway for simplified building of fully decentralized applications and faster dApp time-to-market.
Queries run in the Space and Time data warehouse are verifiably tamperproof. Space and Time’s novel cryptography, Proof of SQL, allows smart contracts to run tamperproof queries directly, opening up a wealth of powerful use cases built on blockchain technology and a fully decentralized stack.
Game developers building on Space and Time can join real-time blockchain data with off-chain game-generated data in a single query and connect the results back to smart contracts on-chain. Space and Time will enable Wemade to facilitate more complex earning schemes for its P2E games, run tamperproof analytics against game activity, and reduce on-chain storage costs by connecting a scalable decentralized data warehouse to the blockchain-based platform.
“We’re thrilled to partner with one of the biggest and most respected gaming companies in the world,” said Nate Holiday, CEO and Co-Founder of Space and Time. “Space and Time is committed to advancing the blockchain gaming industry with essential next-generation infrastructure and developer tools. This partnership is a huge step forward for the Web3 gaming industry. Together, Wemade and Space and Time are building a new blockchain gaming ecosystem to onboard the next wave of game developers.”
Wemade is known for its blockbuster title The Legend of Mir 2, which is one of the most successful RPG titles in the history of Chinese gaming. Within years of its 2002 launch in China, The Legend of Mir 2 dominated the Chinese gaming market with a 64% market share.
In addition to its Web3 GameFi initiatives, the Wemade platform also supports DEXs, NFT marketplaces, and more on its L1 mainnet. Wemade remains committed to actively expanding its blockchain ecosystem beyond GameFi. By partnering with Space and Time, Wemade will provide more secure and decentralized services to developers building GameFi, DeFi, and other Web3 applications.
About Wemade
Wemade is a pioneering game developer from Korea, with a focus that shifts towards metaverse and blockchain (NFT, DeFi) technology, emphasizing personalized gaming experiences. Wemade strives to transform everyday games with blockchain technology and establish its WEMIX coin as a key currency in the gaming industry. Wemade aims to become a mega-ecosystem by launching its own mainnet, WEMIX 3.0, introducing its own currency, $WEMIX, and offering a wide range of services and platforms that embrace DeFi and NFT, etc.
For more information, visit: https://www.wemade.com/
For media inquiries, please contact: Kevin Foo, Head of PR, [email protected]
About WEMIX
WEMIX Pte. Ltd aims to accelerate the mass adoption of blockchain technology by building an experience-based, platform-driven, and service-oriented mega-ecosystem to offer a wide spectrum of intuitive, convenient, and easy-to-use Web3 services. Headquartered in Singapore, WEMIX is a subsidiary of Wemade, the developer and owner of “The Legend of Mir” IP, a highly successful game series with over 500 million users.
About Space and Time
Space and Time is the first Web3-native decentralized data warehouse that joins tamperproof on-chain and off-chain data to deliver enterprise use cases to smart contracts. Space and Time has developed a novel cryptography called Proof of SQL™ that allows developers to connect analytics directly to smart contracts, opening up a wealth of powerful new use cases and business logic on blockchain technology. Space and Time is built from the ground up as a multichain data platform for Web3 developers in financial services, gaming, DeFi, or any project requiring next-gen analytics.
For more information, visit: Website | Twitter | Discord | Telegram | LinkedIn | YouTube
For media inquiries, please contact: Spencer Reeves, [email protected] ContactKevin [email protected]
5 days ago • cryptodaily
Coinbase Files Amicus Brief in Insider Trading Case
Coinbase has filed an amicus brief in the industry’s first case of insider trading involving cryptocurrencies. The exchange has called on the SEC for proper guidance and rules in its filing.
Crypto exchange Coinbase filed an amicus brief in the case involving one of its former employees, Ishan Wahi, who has pled guilty to insider trading. Wahi and his brother were charged with insider trading by the DOJ. Wahi and his brother have both pled guilty to the charges brought against them.
The case is also the subject of a civil complaint by the SEC for securities fraud regarding leaking information about new token listings on Coinbase. While the former Coinbase employee has pleaded guilty, he denies the SEC’s allegation of securities fraud and argues that the tokens in question were not securities. Wahi has called for the suit to be dismissed.
Coinbase’s chief legal officer, Paul Grewal, announced the filing in support of dismissing the “misguided suit.”
Last week I testified to Congress about Coinbase’s futile effort to register with the SEC so we can begin to offer digital asset securities. Today we filed an amicus brief in SEC v. Wahi that explains why this misguided suit only makes things worse. 1/5https://t.co/9iWYrWwpiI
— paulgrewal.eth (@iampaulgrewal) March 14, 2023
In its filing, Coinbase said the digital assets it lists are not securities but said if given proper rules and guidance from the SEC, it would like to list securities. Coinbase, however, said the SEC is somewhat unwilling to engage with it properly.
Grewal said in a Twitter feed:
Coinbase doesn’t list securities but we would like to. We even petitioned the SEC to begin rulemaking on this issue last year. We put forward 50 questions that would need to be answered for us to list securities – we haven’t heard back on any of them.
Coinbase’s brief reads:
The SEC’s suit rests on the erroneous premise that the seven Coinbase-listed assets identified in its complaint are ‘securities.’ But Coinbase does not list any securities on its platform.
It adds:
The SEC posits that the digital assets qualify as securities because they are “investment contract[s], but the assets lack both essential attributes of that statutory term: They are neither contracts nor investments.
Reports by CoinDesk indicate that Coinbase’s filing should not be regarded as support for Wahi but rather as an attempt to prohibit the SEC’s involvement in what should be a criminal matter.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
5 days ago • cryptodaily
Natwest to impose limits on customer payments to crypto exchanges
Natwest is the latest UK bank to enforce limits on its customers’ dealings with crypto companies.
Limitations on crypto payments
Using the rational of protecting its customers against crypto scams and to “help protect customers losing life changing sums of money”, the UK bank is the latest to join the list of banks that have either banned or severely curtailed their customers’ ability to transact in cryptocurrencies.
The new limitations prevent a customer of the bank from sending more than £1,000 a day to a crypto exchange, or more than £5,000 over any month.
Crypto scams?
The UK-based This is Money financial website published an article that focussed on the possibility that customers could be scammed. These scams were said to be in the form of criminals promoting “high returns”, and fraudulent “giveaways”.
These kinds of scams are all fairly common, and nothing new throughout the financial industry today, and they are certainly not just applicable to crypto. Many highly serious crypto projects are innovating and improving the legacy financial system and must not be tarred with the same brush.
Cost of living crisis caused by central banks
The This is Money article went on to say that “fraudulent crypto investments” were a growing concern “particularly during the cost-of-living crisis.
There is no mention of how the cost-of-living crisis was engineered by the central banks’ printing of massive amounts of currency that has to be repaid by taxpayers and that has caused inflation that continues to steal the purchasing power of citizens.
Best savings deals?
The This is Money article finishes with a promotion of “Money’s five of the best savings deals”. The deals range from saving 2.86% to 4.3%, depending on how long a saver chooses to lock their money away for.
There is no comment on the fact that inflation in the UK is currently running at 10.1%, meaning that the best deal offered wouldn’t even account for half of the inflation that is stealing the purchasing power from those living in the UK.
Banks becoming obsolete
Banks began as institutions that served their customers. They were never there to make decisions on their customers’ behalf, whether they agreed or not.
Bank accounts are a necessity for those wishing to make transactions in their daily lives, but they are increasingly becoming tools of the government and its agencies to restrict and decide how, and with whom citizens can do business.
As the world becomes ever more interconnected, people are working with partners from many countries. Banks will need to adapt to this changing environment or face becoming redundant. Cryptocurrencies are bringing about this change.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
9 days ago • cryptodaily
Russia Mining Bill: Not Declaring Profits Could Result in Prison
A new Russian crypto mining bill proposes sending individuals who fail to declare profits derived from mining to prison.
The Russian Ministry of Finance has proposed imprisoning miners who fail to declare their profits to tax authorities, suggesting up to four years in prison. Local media reports the new proposal is contained in a package of bills, which Deputy Minister Aleksey Moiseev sent in February for consideration to the Ministry of Economic Development, the Ministry of Justice, the Federal Tax Service, the Russian Central Banks and various other departments.
According to the reports, a meeting was held in January with the Deputy Chief of Staff of the Russian Government, Ilya Trunin, where the Finance Ministry was ordered to finalise the bill on crypto mining.
A new version of the crypto mining bill mandates that miners “provide information on the receipt of digital currency” to the tax office. Miners must also provide “information about the unique sequence of characters used to account for transactions with digital currency.” The bill specifies that miners offer this data “in a manner and within the time limits established by the legislation of the Russian Federation on taxes and fees.”
Finance Ministry Suggests Severe Punishment for Offenders
The Ministry of Finance has proposed harsh penalties for miners who do not declare digital assets. The Criminal Code, developed by the Ministry and amended, states that if a miner fails to report income from crypto mining on two occasions in three years, and the amount not declared is above 15 million rubles, a miner could face up to two-year imprisonment and a fine of up to 300 thousand rubles.
The Code states that the penalty will be far more severe if the amount not declared exceeds 45 million. The Ministry suggested up to four years imprisonment, a fine of up to two million rubles and forced labor of up to four years.
Harsh Punishment for the Illegal “Circulation” of Digital Assets
The newly proposed crypto mining bill suggests even harsher punishment for the “illegal organisation of the circulation of digital currencies.” The bill details two ways cryptocurrencies can be exchanged for fiat: via foreign crypto exchanges or a Russian platform still under an experimental legal regime.
The bill also states that Russia will have an official register of operators to exchange digital assets, which can be either banks or other legal entities. According to the bill, any activity that does not fit within its framework is considered a violation. Offenders could face up to seven years imprisonment, a fine of up to one million rubles, and up to five years of forced labor.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
10 days ago • cryptodaily
Silvergate Shuts Down
The crypto-focused bank has finally made the call to shut down operations after struggling to stay afloat in the FTX aftermath.
End Of The Road For Silvergate
In their latest press release, Silvergate Capital Corp has announced that it will be winding down its operations and liquidating all assets in order to be able to return all deposits. The company, which is behind the crypto-focused Silvergate Bank, will be following applicable regulatory processes to shut shop and undergo voluntary liquidation. The company is also focusing on the way forward to resolve claims and preserve asset valuation to the best of its abilities.
The company statement said,
“In light of recent industry and regulatory developments, Silvergate believes that an orderly wind-down of Bank operations and a voluntary liquidation of the Bank is the best path forward. The Bank’s wind-down and liquidation plan includes full repayment of all deposits. The Company is also considering how best to resolve claims and preserve the residual value of its assets, including its proprietary technology and tax assets.”
FDIC Efforts In Vain
The decision to wrap down operations completely does not come as a surprise, as the company has been struggling to stay afloat ever since the FTX debacle. Other than the financial blow, the company was further destabilized by the increased scrutiny from regulators and a criminal investigation by the Justice Department’s fraud unit into its association with both FTX and Alameda Research. Despite zero evidence of any wrongdoing, the troubles increased, with several other partners jumping ship. As a result, the bank had to incur deep losses as it sold off its assets and shut down the flagship payments network.
There was a ray of hope over the last few weeks when officials from the Federal Deposit Insurance Corp (FDIC) were looking into helping the company figure out a way to survive. However, the latest announcement from the company highlights that all efforts have failed to salvage the bank.
Flagship Payment Network Shutdown
The wind-down process is being overseen by the company’s financial advisor - Centerview Partners LLC and its legal advisor - Cravath, Swaine & Moore LLP. Strategic Risk Associates are also involved in the process of providing transition project management assistance.
The company had already discontinued the Silvergate Exchange Network in early March. The network acted as a conduit between crypto and traditional banking services and was considered a faster and easier alternative to wire transfers. With the discontinuation of this network, there is a gap in the market for a viable banking service in the crypto space.
Despite the wind-down process being started, all deposit-related services (other than the Silveragate Exchange Network) are still operational. The company has stated that customers will be notified of any further changes.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.