Day: April 27, 2023

Hong Kong to Release Cryptocurrency Exchange Licensing Guidelines

by Blockchain News

The Hong Kong Securities Futures Commission (SFC) is set to release guidelines for cryptocurrency exchange licensing in May, as it moves to support trading services to retail investors from June 1. According to Bloomberg, the plans were confirmed by the SFC’s CEO, Julia Leung, who revealed that over 150 interested parties had provided feedback during the consultation process on the licensing regime.

The upcoming guidelines will likely include regulatory requirements for Anti-Money Laundering (AML) and Know Your Client (KYC) measures, among other considerations. A February 20 report by the SFC also highlighted these factors as important for regulating virtual assets.

While most prospective Virtual Asset Service Provider (VASP) licensees are still awaiting confirmation, some trading platforms have already received licenses from the SFC. Among them are OSL and Hashkey Group, according to Reuters.

However, not all trading platforms have chosen to stay in Hong Kong amid its ambitions to become a major crypto hub. Bitget, which boasts $1.4 trillion in assets in reserve, announced on April 24 that it would cease offering services to its Hong Kong customers when the VASP regime takes effect on June 1.

Despite this setback, the release of the licensing guidelines is expected to bring further clarity and regulation to the Hong Kong crypto market, while also providing a framework for legitimate trading platforms to operate under. This could help to boost investor confidence in the sector and support the city’s wider efforts to establish itself as a leading hub for digital assets and blockchain technology.

Hong Kong has already made significant strides in this area, with its Securities and Futures Commission becoming one of the first regulators to issue guidance on digital asset fund managers in November 2018. The city has also played host to a number of high-profile crypto events in recent years, including the Token2049 conference, which attracts blockchain industry leaders from around the world.

Despite this progress, however, Hong Kong still faces stiff competition from other global crypto hubs, such as Singapore and Switzerland. By introducing clear licensing guidelines and regulatory requirements for crypto trading platforms, the SFC may be able to help Hong Kong strengthen its position in this increasingly competitive field.

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NFT Market Facing Persistent Selling Pressure

by Blockchain News

According to the data provided by the analytics platform NFTGo during the month of April, the market for nonfungible tokens (NFTs) has been regularly seeing a greater amount of selling pressure than purchasing. There were only 7,907 purchasers on April 26, although there were 8,641 vendors trying to sell their NFTs. On April 19, there were just 5,893 purchasers, which led to the market reaching its second-lowest point in the preceding year.

There were 18,495 buyers in the market on April 5, but there were also 36,423 sellers, and there hasn’t been a single day in April in which the number of buyers has outweighed the number of sellers. Even with the rise on April 5 to 18,495 buyers, the market still had 36,423 sellers. Those who have their sights set on selling their NFTs in the near future could find this consistent selling pressure to be reason for alarm.

NFT trade volumes on March 10 were between $68 million and $74 million before the collapse of the bank; nevertheless, they dropped to $36 million on March 12. In addition, between March 9 and March 11, there was a reduction of 27.9% in the number of daily sales of non-fungible tokens (NFTs).

Twitter users have expressed their opinions on a wide variety of topics in response to the volatile circumstances in the NFT market. The co-founder of Canary Labs, Ovie Faruq, said in a tweet on April 26 that the NFT market is “not functioning” at the present time.

The amount of wash trading on the top six NFT markets increased to a total of $580 million in February, according to a research that was published by CoinGecko on March 20. This was the fourth consecutive month that wash trading increased. According to the findings of the research, the volume of the NFT marketplace increased by 126% from the previous month’s level of $250 million. The rise may be attributed to the general recovery of the market for non-traditional financial assets.

Despite the fact that the NFT market has been under pressure to sell during the month of April, it is important to keep in mind that the NFT market is still a relatively young and emerging business, and it is not unusual for the market to be volatile. Despite this, the consistent selling pressure may indicate to sellers that they need to change their pricing strategy or explore the possibility of hanging onto their NFTs for extended periods of time.

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Binance CEO Denies Bloomberg’s Net Worth Report

by Blockchain News

Changpeng “CZ” Zhao, the CEO of Binance, one of the world’s biggest cryptocurrency exchanges, has refuted the net worth stated by Bloomberg in its financial rich list. Bloomberg included Zhao on its list of the world’s richest people in finance. With an estimated wealth of $28.2 billion, CZ is positioned among the top three financial billionaires in the world, as shown by the ranking. On the other hand, CZ said on Twitter on April 27 that the statistics are all incorrect and that he does not have anywhere near as much money as what is supposed to have been the case for him, notwithstanding what was previously stated.

CZ began his tweet with the number 4, meaning that his worth should fall somewhere between Dan Gilbert’s $19.4 billion and Uday Kotak’s $13 billion. Uday Kotak is the richest person in India. It should not come as a surprise that CZ would take the initiative to call attention to the falsehoods that have been reported, given that he has been critical of the way that the cryptocurrency business is portrayed by mainstream media sites. He has made a number of denials about the information that was provided by authoritative sources such as Bloomberg and Forbes, often labeling such stories as FUD, which stands for fear, uncertainty, and doubt.

CZ’s critical position on the industry’s depiction in mainstream media was clear in his reaction to a story published by Forbes, which said that Binance had proceeded with a “backroom maneuver” involving a $1.8 billion transaction in 2022. The article claimed that Binance had done this in order to circumvent regulatory oversight. It was his contention that Forbes “don’t know how an exchange works.” In a similar manner, he disproved a story from Bloomberg that said Binance was contemplating severing connections with its US-based business partners.

In addition to correcting certain errors that had been made in the article, CZ said in his tweet that he does not consider the defunct FTX bitcoin exchange to be a competitor of his company’s. He emphasized the need of better-run exchanges in the cryptocurrency market and expressed his satisfaction with the increasing number of well-run exchanges in the sector.

The cryptocurrency market is receiving a growing amount of attention from the mainstream media as a result of stories detailing its enormous growth potential and adoption by institutional investors. Nevertheless, CZ’s criticism of the mainstream media draws attention to the need of truthful reporting on the innovations and evolution of the business.

CZ’s rejection of Bloomberg’s net worth report and his critical attitude on the depiction of the cryptocurrency sector in mainstream media both underscore the need of factual reporting. In conclusion, CZ’s position on the representation of the cryptocurrency industry in mainstream media is crucial. Reporting that is well-informed and provides a fair picture of the innovations and progress of the industry is required because of the growth potential of the sector and the rising usage of its products.

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Google Ads Used in $4M Crypto Phishing Scam

by Blockchain News

A recent study by ScamSniffer, a Web3 anti-scam service provider, has revealed that scammers have stolen over $4 million in cryptocurrency from unsuspecting users through phishing websites promoted on Google Ads. The fraudulent websites prompt wallet login signature requests that compromise users’ addresses, and have specifically targeted decentralized finance protocols, websites, and brands, including Zapper.fi, Lido, Stargate, DefiLlama, Orbiter Finance, and Radiant.

The phishing websites use slight variations to official URLs, making it challenging for users to identify that they’ve clicked on malicious links. Analysis of metadata from some of the phishing websites shows that they are linked to advertisers in Ukraine and Canada, who employ several methods to bypass Google’s ad review process. This includes manipulating the Google Click ID parameter, allowing the attackers to show a normal webpage during Google’s ad review. Other malicious adverts use anti-debugging methods to redirect users with developer tools enabled to a normal website, while a direct click takes users to the malicious website. These tactics allow scammers to bypass some of Google Ads’ machine reviews.

On-chain data analysis from addresses linked to malicious websites advertised on Google from ScamSniffer’s database suggests that $4.16 million has been stolen from over 3,000 users in the past month. The anti-scam service provider followed on-chain flows of funds to various exchange and mixing services, including SimpleSwap, Tornado Cash, KuCoin, and Binance.

ScamSniffer also suggests that promoting crypto-related phishing websites is a lucrative business. The average cost per click for associated keywords is between $1 to $2, estimating a conversion rate of 40% from 7,500 users clicking on malicious adverts, scammers have spent around $15,000 on advertising which provided a return on their malevolent investments of 276%, given the $4 million stolen to date.

This news comes as Russian cybersecurity and anti-virus provider Kaspersky highlights a significant increase in crypto-related phishing attacks through 2022, with over 5 million phishing attacks identified last year, up 40% year on year.

It is essential for users to be vigilant and take precautions to protect their cryptocurrency. Users should avoid clicking on suspicious links, ensure their devices have up-to-date anti-virus software, use two-factor authentication (2FA) wherever possible, and use a reputable wallet with secure features.

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Celsius Creditors Seek Help from Bankruptcy Judge to Uncover Potential Market Manipulation

by Blockchain News

Creditors of Celsius Network have requested the help of a bankruptcy judge to investigate potential market manipulation of Celsius’ CEL token. The creditors, represented by a committee, are seeking information from cryptocurrency exchange FTX regarding users associated with 10 wallets that were allegedly involved in suspicious trades of the CEL coin between April and August 2022. The creditors suspect that the trades may have artificially inflated the price of the CEL token and want to determine if they were legitimate or constituted market manipulation, such as wash trading.

To identify the suspicious transactions, the committee employed the services of blockchain consultant Elementus. According to Elementus, 947 transactions involving a near one-to-one relationship of CEL token deposits and withdrawals occurred over three-day periods between 10 private wallets and 10 FTX-operated wallets. The committee believes that the information from FTX will be crucial in determining whether the trades were intended to inflate the price of CEL token artificially.

In addition to uncovering potential market manipulation, the committee is also requesting information regarding any short positions taken on CEL. The committee believes that short positions could have had a negative impact on the price of the CEL token, and that this information could also be critical in resolving a dispute related to Celsius’ bankruptcy.

The creditors are seeking permission from the bankruptcy judge to issue subpoenas to FTX to obtain the requested information. The request for subpoenas was made in court papers filed on April 26. The information obtained from FTX could be important in resolving disputes related to Celsius’ bankruptcy.

Meanwhile, FTX is pending approval from the United States Bankruptcy Court for the District of Delaware to sell LedgerX, its futures and options exchange and clearinghouse, to an affiliate of Miami International Holdings for approximately $50 million. The sale is expected to provide FTX with the funds needed to pay back its creditors. A hearing to approve the sale is scheduled for May 4.

In conclusion, the Celsius creditors’ request for subpoenas to FTX reflects their efforts to investigate potential market manipulation of the CEL token. The information obtained from FTX could be crucial in determining whether the trades involving CEL were legitimate or constituted market manipulation, and could be important in resolving disputes related to Celsius’ bankruptcy. Meanwhile, FTX’s pending sale of LedgerX is expected to provide the exchange with the funds needed to pay back its creditors.

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Bitget Pledges $10 Million for Fetch.ai Ecosystem

by Blockchain News

A big cryptocurrency derivatives exchange known as Bitget just just made the news that it will be spending $10 million towards the development of an ecosystem that is known as Fetch.ai. An artificial intelligence agent network is the primary offering made available by Fetch.ai, a startup that specializes in the provision of infrastructure for autonomous service providers. This network makes it possible for decentralized and autonomous agents to carry out a range of tasks, ranging from simple data processing to complex financial modeling. In addition, the smart wallet that is provided by Fetch.ai includes automation and interaction with OpenAI’s ChatGPT API. This API was first introduced in January 2023 and has amassed a user base of one hundred million users in only a few short months after its debut.

The investment that Bitget has made in the AI infrastructure provider Fetch.ai has two main goals: one is to contribute to the firm’s continued growth and the other is to encourage the extension of commercial partnerships that the company already has. Bitget cited the recent AI buzz that was generated by OpenAI’s ChatGPT as evidence that the technology has the potential to increase human productivity and creativity. As part of the partnership, Bitget will provide marketing consultancy and other services to Fetch.ai in order to aid the firm in growing its clientele.

According to CoinGecko, Bitget is now the ninth largest cryptocurrency spot exchange in the world, with a daily transaction volume of $990 million in bitcoin. This information was obtained from Bitget. Bitget, a company that now serves over 8 million consumers, has its headquarters in the Seychelles. The company’s clientele is spread out throughout more than one hundred countries and territories. In April 2023, Bitget was awarded a regulatory license, which cleared the way for the firm to start providing its services to customers in Lithuania. In the previous month, the firm made an investment of $30 million in the multichain wallet provider BitKeep. As a result of this investment, the corporation became the dominant investor in the company.

As a direct consequence of Bitget’s investment, it is projected that Fetch.ai would see increased levels of growth. The company is in the process of increasing the size of its infrastructure so that it can support autonomous services. As a result of Bitget’s financial support, Fetch.ai is in a position to both expand the scope of its commercial relationships and continue the development of innovative products. These are the kinds of problems that can be solved with the help of artificial intelligence.

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Kraken Fights IRS Over Customer Information

by Blockchain News

Kraken, the popular crypto exchange, is contesting the United States Internal Revenue Service’s (IRS) demand for critical exchange user information, citing it as an “unjustified treasure hunt.” According to Bloomberg, the crypto exchange has requested federal court intervention in San Francisco to ask the IRS to back off from its demand for customer information.

Kraken’s pushback against the IRS comes in response to the agency’s February summons, which demanded additional user information to identify Kraken accounts that did at least $20,000 of cryptocurrency trading in any single year between 2016 and 2020. The exchange claims that the IRS has gone “far beyond” its intrusive summons, and its demands for customer information are not justified.

Kraken’s request for federal court intervention cited Coinbase’s case from 2017, where the tax agency scaled back its initial demand after Coinbase’s continuous refusal. In the Coinbase case, U.S. District Judge Jacqueline Scott Corley decided that the summons sent to more than 14,000 customers of the exchange wasn’t too intrusive because the IRS had a valid reason to look into taxpayers who might not be disclosing their Bitcoin (BTC) gains.

Kraken’s lawyers claimed that the IRS has gone “far beyond” the rules set by Judge Corley in the Coinbase case. Kraken joined Coinbase in its efforts to push back against growing regulatory scrutiny by American regulators. Coinbase is currently fighting its own battle against the U.S. Securities and Exchange Commission (SEC) over offering crypto staking services.

The SEC alleged that staking services offered by Kraken, Coinbase, and other platforms violate securities law. While Coinbase settled with the SEC for $30 million for offering staking services, it has decided to head to court for its IRS battle.

The growing regulatory scrutiny has become a growing concern for crypto companies in the U.S. The likes of Coinbase CEO Brian Armstong and USD Coin issuer Circle CEO Jeramy Allaire have warned that the growing pushback from regulatory bodies will force budding crypto companies to move offshore.

In conclusion, Kraken is fighting against the IRS’s demand for customer information, citing it as an “unjustified treasure hunt.” The exchange has requested federal court intervention, pointing out that the IRS has gone “far beyond” its intrusive summons. With growing regulatory scrutiny, Kraken and Coinbase’s pushback against American regulators could become a growing trend in the crypto industry, with more companies moving offshore to avoid regulatory barriers.

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Standard Chartered raises $36m for crypto custody platform

by Blockchain News

Standard Chartered has raised $36 million in a new series A funding round for its cryptocurrency custody subsidiary, Zodia Custody. The funding round was led by Japanese financial conglomerate SBI Holdings, which reportedly became the second-largest shareholder in Zodia Custody. Prior to this funding round, Zodia was backed exclusively by Standard Chartered and Northern Trust, with Standard Chartered holding a 90% stake in the firm. However, it remains the majority shareholder even after the latest fundraise, according to Zodia Custody CEO Julian Sawyer.

Zodia Custody was launched in December 2020 as a joint venture between Standard Chartered and Northern Trust, with a focus on providing custody services for digital assets. The platform is designed to provide institutional investors with a secure and compliant way to store their cryptocurrencies. With the new funding, Zodia plans to expand its offering and develop new products and services for its clients.

Standard Chartered’s move to raise funding for its crypto custody platform is part of a larger trend of global banks expanding their capabilities in the cryptocurrency space. As more institutional investors look to gain exposure to cryptocurrencies, banks are stepping up to provide the infrastructure and services needed to support this demand. In addition to Standard Chartered, other major banks such as JPMorgan, Goldman Sachs, and Bank of New York Mellon have all recently announced plans to offer cryptocurrency-related services to their clients.

The involvement of SBI Holdings in the latest funding round is notable, as the Japanese conglomerate has been a major player in the cryptocurrency space for several years. SBI Holdings operates a number of cryptocurrency-related businesses, including a crypto exchange and a mining subsidiary. The firm has also invested in several blockchain startups and is known for its bullish stance on cryptocurrencies.

In summary, Standard Chartered has raised $36 million in a funding round for its cryptocurrency custody subsidiary, Zodia Custody, with SBI Holdings leading the round. The move reflects a larger trend of global banks expanding their cryptocurrency-related capabilities to meet growing demand from institutional investors. With the new funding, Zodia plans to expand its offering and develop new products and services for its clients.

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Cogni Launches KYC-Backed NFTs for Crypto Wallet Users

by Blockchain News

A recent upgrade has made it possible for users of the noncustodial multichain crypto wallet offered by Neobank Cogni to have access to a previously unavailable feature. Users of the wallet that the bank provides will soon be able to receive soulbound nonfungible tokens (NFTs) that incorporate information from the Know Your Customer (KYC) protocol. The NFTs, which will be constructed on the Polygon network, will provide customers the chance to convert their “Web2” KYC verification, which was performed by the bank when the client established their account, to a Web3 setting. This will be made possible via the Polygon network.

The cryptocurrency wallet that was introduced by Cogni in January allows users to send, receive, and store cryptocurrencies as well as NFTs. These capabilities were first made available to users. Users of wallets will now have the option to mint non-transferable soulbound NFTs, which can only be decrypted by decentralized apps (DApps) with the owner’s explicit authorization. Wallet users will be able to do this by using their private keys.

According to Ganesh Ravishankar, the Chief Executive Officer of Cogni, the user experience and a lack of faith in the ecosystem are the reasons why a lot of people have not jumped on the decentralization bandwagon just yet. This data was provided by the Chief Executive Officer of Cogni. The information about bank-level KYC that is contained on the NFT, on the other hand, satisfies the KYC rules in the United States, and it will be made available to cooperating DApps without the need for any further action on the part of those DApps.

Cogni’s mission is to provide a marketplace for decentralized apps (DApps) that can be connected to with just a few clicks, and this will include the KYC verification procedure. The use of wallets that do not contain custodial services has been on the rise, especially in light of the failure of large cryptocurrency organizations to escape bankruptcy during the crypto winter. This failure led to the money of customers being frozen in custodial wallets, which resulted in the increased popularity of wallets that do not include custodial services.

It is planned that sometime over the summer, the Cogni soulbound NFT will be made available to the general public. Initially, however, it will only be accessible to a select group of users. The objective of the firm is to improve the user experience of decentralized finance (DeFi) by creating a platform that is easy to use, has security on par with that of banks, and validates the identities of users.

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Santa Cruz Adopts Blockchain for Govt Services

by Blockchain News

The County of Santa Cruz in northern California has become the latest local government to adopt blockchain technology for governmental services. At a meeting of the Board of Supervisors on April 25, 2023, members unanimously voted to move forward with implementing digital wallets for government services and official documentation purposes.

The white-label digital wallet will be powered by HUMBL and will launch a three-stage pilot program starting in July 2023. During the pilot period, beta testers, such as mobile users seeking access to government services like bicycle registration and RV parking registration, will be able to use the digital wallet. Other potential pilots include registration of park facilities, tracking volunteer hours, over-the-counter building permit distribution, and pet licensing.

Zach Friend, a Santa Cruz County Supervisor involved in the situation, stated that the value of digitizing paper documents, records, and services is an essential step for the convenience of Santa Cruz County residents and improving equity and access for the community.

Upon successful completion of the pilot, the county plans to provide a formal report and rollout plan by no later than September 2023.

The digital wallet project began to take shape in April 2022, following a collaboration between the Santa Cruz Board of Supervisors and HUMBL on the digital wallet technology infrastructure needed to begin a pilot program.

While local officials are pushing forward with the plans for a digital wallet, an open discussion forum on the county’s website revealed concerns from local residents. One commenter, Becky Seinbruner, asked to suspend further action and progress on the digital wallet developments. Seinbruner raised concerns over inappropriate use and sales of personal data by the infrastructure provider HUMBL.

During the pilot period, local officials will assess if users trust the underlying technology and understand what is happening “under the hood.” The county plans to provide a formal report and rollout plan for the digital wallet by no later than September 2023.

The adoption of blockchain technology by Santa Cruz County is part of a wider trend of governments turning to blockchain for better management of public records and services. By using blockchain technology, governments can create a tamper-proof and transparent record of transactions, leading to improved trust and efficiency in government services.

Blockchain also has the potential to reduce costs associated with traditional paper-based systems and the time-consuming manual processes that go along with them. Furthermore, it can provide secure access to information and services, thus improving equity and access for all members of the community.

Despite the benefits, concerns around privacy and data security remain. As seen in the case of Becky Seinbruner’s comment, some residents are worried about the potential misuse of personal data. To address these concerns, it is essential that governments work with trusted partners who have a strong track record of data security and privacy protection.

In conclusion, the adoption of blockchain technology by Santa Cruz County for governmental services is a promising development in the evolution of public services. By improving the efficiency and accessibility of services, governments can provide better value to citizens and drive growth in the local economy. As with any emerging technology, it is crucial to be mindful of privacy and security concerns, but with careful planning and execution, blockchain can become a valuable tool in modernizing government services.

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Bitcoin (BTC) $ 26,527.11 0.91%
Ethereum (ETH) $ 1,626.73 0.05%
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