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Economist Peter Schiff says the U.S. banking system is insolvent. He stressed that the Federal Reserve destroyed the U.S. banking system, citing near-zero interest rates at banks while “the Fed funds rate is 5.25% and the real inflation rate is much higher.” Schiff previously warned that the U.S. banking system is on the verge of a “much bigger collapse than 2008.” Peter Schiff on U.S. Banking Crisis Gold bug and economist Peter Schiff is back with more warnings about the U.S. economy. He tweeted Friday that the Federal Reserve destroyed the U.S. banking system, emphasizing that it is insolvent and would collapse without government help. Schiff wrote: Bank of America pays just .05% interest on savings accounts and nothing on checking accounts. But the Fed funds rate is 5.25% and the real inflation rate is much higher. The Fed destroyed the U.S. banking system. It’s insolvent and would collapse without government backstops. This was not the first time that the economist sounded the alarm about potential issues within the U.S. banking system. In March, he tweeted: “The U.S. banking system is on the verge of a much bigger collapse than 2008. Banks own long-term paper at extremely low interest rates. They can’t compete with short-term Treasuries. Mass withdrawals from depositors seeking higher yields will result in a wave of bank failures.” The interest-rate issue has been highlighted by numerous individuals, including Tesla and Spacex CEO Elon Musk. The billionaire explained in May that the U.S. Treasury and the Federal Reserve have created a massive gap between money market accounts (Treasury Bills) with interest rates of about 4.5% and bank accounts with interest rates of less than 1%. “That’s a massive incentive to move money out of bank accounts,” he emphasized. When the U.S. government bailed out failed Signature Bank and Silicon Valley Bank in March, Schiff warned: To finance the bank bailouts the Fed is creating more inflation. So the banking crisis didn’t solve the inflation problem, it made it much worse! “Bailing out depositors of failed banks is yet another mistake by the Fed & the U.S. government,” Schiff further stressed. “Not only does the moral hazard lead to even greater instability in the banking system and larger future losses, but the inflation created to pay for it unfairly socializes current losses.” Recently, Schiff issued stark warnings regarding a potential U.S. dollar crisis, economic depressions, and the debt ceiling deal that Congress negotiated in order to prevent a U.S. government default. “Suspending the debt ceiling yet again means that reckless government spending and borrowing will continue until a sovereign debt and U.S. dollar crisis bring it to a catastrophic end,” he opined. What do you think about the statements by economist Peter Schiff? Let us know in the comments section below. View the full article

Rich Dad Poor Dad author Robert Kiyosaki has warned that the real estate market is on the verge of a crash that will be worse than the 2008 financial crisis. Noting that it will be the greatest crash “ever,” he stressed that the 2023 crisis will make the Global Financial Crisis “look like nothing.” ’Greatest Real Estate Crash Ever’ Robert Kiyosaki, author of the best-selling book Rich Dad Poor Dad, has issued another warning about the real estate market, stating that it is on the verge of the greatest crash “ever.” Rich Dad Poor Dad is a 1997 book co-authored by Kiyosaki and Sharon Lechter. It has been on the New York Times Best Seller List for over six years. More than 32 million copies of the book have been sold in over 51 languages across more than 109 countries. The famous author believes that the 2023 crash will be worse than the 2008 Global Financial Crisis (GFC), and is advising investors to protect themselves by buying gold, silver, and bitcoin. He tweeted Wednesday: Greatest real estate crash ever. 2008 was the GFC. 2023 will make 2008 GFC look like nothing. In 2019, office towers in San Francisco were hot. In 2023, same buildings have lost 70% of value … Get gold, silver, bitcoin. Kiyosaki has cautioned many times in the past regarding the potential crash of the real estate market. In March, for example, he tweeted that the Federal Reserve’s rate hikes will crash stocks, bonds, real estate, and the U.S. dollar. In September last year, he similarly tweeted that stocks, bonds, mutual funds, exchange-traded funds (ETFs), and real estate are crashing. Recently, Tesla and Spacex CEO Elon Musk also warned about real estate markets. He tweeted at the end of May that commercial real estate is “melting down fast,” predicting that “home values” will be next. However, some people disagreed with the billionaire about the residential real estate market, including Federal Reserve Governor Michelle Bowman, Shark Tank star Barbara Corcoran, and Glenn Kelman, the CEO of residential real estate brokerage operator Redfin. Kiyosaki previously explained that he no longer recommends real estate as an investment. “In my 2022 book Capitalist Manifesto, I stated Marxist took over the U.S. in the 2020 election. Marxists will raise property taxes, impose rent controls, as rising interest rates decrease property values. I recommend gold, silver, bitcoin,” he tweeted last October. The renowned author has been recommending gold, silver, and bitcoin for quite some time. He predicted in February that by 2025, the price of gold would reach $5,000, silver would soar to $500, and bitcoin would surge to $500,000. Explaining his prediction, he tweeted: “Because faith in U.S. dollar, fake money, will be destroyed. Gold & silver God’s money. Bitcoin people’s $.” Do you agree with Rich Dad Poor Dad author Robert Kiyosaki about the upcoming real estate crash? Let us know in the comments section below. View the full article

On June 10, 2023, bitcoin is dominating with a market capitalization dominance of 47.5%, marking its highest level since this time last year, according to coinmarketcap.com. Meanwhile, ethereum’s dominance is holding steady at 20%, indicating that the recent dominance gains made by these two crypto assets have come at the expense of other digital currencies. Bitcoin Dominance Rises While Ethereum’s Dominance Remains Resilient; Many Other Crypto Competitors Have Not Been So Lucky As of Saturday, June 10, bitcoin (BTC) is still the undisputed leader with a market valuation of $496 billion, accounting for 47.5% of the entire crypto economy’s $1.04 trillion market capitalization. However, BTC has experienced a slight dip of 3.32% in the past day and 5.79% over the week against the U.S. dollar, according to current data. Interestingly, while BTC has weathered the storm relatively well, many other top crypto assets, particularly those in the top 20, have taken a much harder hit in terms of value loss. The top 20 crypto assets have seen some major losses this week, with a handful of them experiencing double-digit dips. BNB, ADA, TRX, SOL, MATIC, DOGE, LTC, DOT, AVAX, SHIB, and ATOM are among the biggest losers. In comparison, ethereum (ETH), the second leading crypto asset, only lost 8.29%. While BTC did experience a brief surge in dominance to 47.18% on June 5, its current dominance rating is even higher at 47.5%. Interestingly, the last time BTC’s dominance was this high was almost exactly a year ago on June 11, 2022, when it was hovering at around 47.49%. While BTC is currently dominating the crypto world, ethereum has managed to hold its own with a 20% dominance rating and a market capitalization of $208 billion. Meanwhile, the stablecoin tether (USDT) is still going strong with a market valuation of $83.39 billion, accounting for 7.96% of the total $1.04 trillion in value. Interestingly, BTC has not come close to breaching the 50% and 60% range it saw in 2019, 2020, and early 2021. It hit the 47.37% mark in terms of dominance on July 31, 2021 However, it wasn’t until May 2021 that BTC last saw its dominance level reach its current high. It remains to be seen whether BTC will continue to climb in the dominance arena, drop lower, or plateau at its current level. What are your predictions for the future of Bitcoin’s dominance and the overall crypto market? Share your thoughts and opinions about this subject in the comments section below. View the full article

While some people believe that bitcoin (BTC) could become a global reserve asset, others are skeptical. Rather than relying on human subjective valuations and biases, we conducted an experiment to let artificial intelligence (AI) determine whether bitcoin could become a global reserve currency. We asked six popular AI chatbots the same question: “Will bitcoin become a reserve currency and when?” AI Experiment Assesses the Likelihood of Bitcoin as a Reserve Currency Bitcoin.com News conducted an experiment on June 9, 2023, using some of the most popular AI chatbots currently available. AI has been a trending topic in 2023, with platforms like Chatgpt, Midjourney, Bard, and Claude gaining popularity. Users of this software have noticed varying outcomes when it comes to text and art content. In our test, we simply asked Openai’s Chatgpt 3.5 and 4, Google’s Bard, Anthropic’s Claude Instant and 4, and Bing AI’s creative mode the same question in the form of a prompt. The prompt was: This experiment aims to gauge the likelihood of bitcoin becoming a global reserve asset. As an expert in the field of bitcoin and crypto assets, you will assess the probability of this occurrence and provide an explanation if it were to happen. While it is plausible to argue that it may never come to pass, if you do acknowledge its potential, kindly state the anticipated year of its realization and succinctly summarize the reasons and mechanisms behind its success. Keep your answer short and under a paragraph in length. Will bitcoin become a reserve currency and when? Chatgpt 3.5 answer: It is challenging to provide a definitive answer as to whether bitcoin will become a global reserve asset and when. While bitcoin has gained significant attention and adoption in recent years, it still faces numerous challenges and uncertainties. It is important to monitor the ongoing developments and evolution of the cryptocurrency ecosystem to assess the potential for bitcoin or other cryptocurrencies to achieve reserve currency status. Bard answer: There are a number of factors that could contribute to bitcoin’s success, including increased adoption by central banks and financial institutions, increased stability in the price of bitcoin, and improvements in the technology behind bitcoin. If bitcoin is able to overcome these challenges, it could become a global reserve asset within the next decade. However, it is also possible that it will never become a reserve asset, or that it will take much longer to achieve this goal. Claude 4 answer: Based on my analysis of bitcoin’s properties and the current global financial system, I would assess the probability of bitcoin becoming a reserve currency as low to moderate, potentially within the next 10-15 years. Claude Instant answer: Chatgpt 4 answer: While bitcoin has the potential to become a global reserve asset, there are significant challenges and uncertainties that could prevent this from happening. If it were to occur, it might take several years or even decades for this to materialize. Bing AI answer: The likelihood of bitcoin becoming a reserve currency is uncertain and depends on various factors, such as: The adoption and acceptance of bitcoin by mainstream users, investors, and institutions. The innovation and improvement of bitcoin’s technology, scalability, and usability. The regulation and governance of bitcoin’s legal status, taxation, and compliance. The competition and cooperation of bitcoin with other cryptocurrencies and fiat currencies. Each answer had similarities, but there were also notable differences. Only Bard and Claude 4 provided a potential probability and possible timeline. During the study, Chatgpt 3.5 noted that its information was based on data available up until September 2021. OpenAI’s Chatgpt 4 also warned that “it cannot predict the future with certainty.” Bard provided reasons why bitcoin would not become a global reserve currency, citing “government regulation,” “security risks,” and “lack of trust.” Chatgpt 4 also provided a second paragraph, despite being asked not to, explaining reasons why bitcoin may not become a global reserve currency. The chatbot cited “volatility,” “regulatory concerns,” “competition from other cryptocurrencies,” and “technological risks” as its reasons. It’s interesting to see how each AI program responded, but it’s important to understand that humans programmed this software with what they believe to be facts and opinions. What are your thoughts on Bitcoin’s potential as a global reserve currency? Do you agree with the AI chatbots’ assessments, or do you have a different perspective? Share your thoughts and opinions about this subject in the comments section below. View the full article

In the FTX bankruptcy case, the presiding judge John Dorsey has ruled to maintain the confidentiality of individual customer identities, according to a recent decision on Friday. Dorsey emphasized the importance of safeguarding these clients, expressing concern for their potential vulnerability to scams. Despite the Media’s Attempt, FTX Customers’ Identities Will Be Shielded From Public Eye Despite media attempts to unveil the identities of those who utilized the now-defunct crypto trading platform FTX, the insolvency judge overseeing the proceedings has opted to keep them concealed, as reported by the Associated Press. A legal representative for various news organizations contended that both the public and the press should have access to this information prior to Dorsey’s ruling. The attorney representing media outlets expounded on the far-reaching consequences of this event, stating that it “sent shock waves not just through the cryptocurrency industry, but the entire financial industry.” The lawyer went on to emphasize that it remains unclear which individuals or institutions were most severely affected by these repercussions. In his determination, Dorsey concluded that redacting this information was in the best interests of FTX clients. He observed that cyber criminals operating on the “dark web” could misuse such data. Dorsey underscored customer welfare in his ruling: “It’s the customers that are the most important issue here,” Dorsey emphasized. “I want to make sure that they are protected and they don’t fall victim to any types of scams that might be happening out there.” This development follows last year’s Celsius bankruptcy case, in which court proceedings allowed for the unsealing of 14,500 pages containing both customer names and transaction histories. At that time, only client addresses were redacted upon release. Conversely, alongside revealing more than 100 pages of creditor names in the FTX case, Dorsey eventually permitted previously concealed creditor data to be publicized. In Friday’s verdict, individual customer identities were permanently sealed by Dorsey while institutional client names will remain undisclosed for an additional three-month period. Nonetheless, he consented to expose the names of individual equity holders from the U.K. and European Union, because of the General Data Protection Regulation (GDPR) policy. Records indicate that FTX had over a million users before its collapse in November 2022. What are your thoughts on the judge’s decision to maintain the confidentiality of FTX customer identities? Share your thoughts and opinions about this subject in the comments section below. View the full article

The overall value of the crypto economy has dropped by more than 5% against the US dollar in the past 24 hours, with the top smart contract token sector losing more than 8% in the same time frame. The downturn has also affected the decentralized finance (defi) sector, with the total value locked in defi today awfully close to dropping below the $40 billion range after shedding 5.65% in value over the last day. TVL Nears the $40 Billion Range, Three Tokens Record Heavy Losses The total value locked (TVL) in decentralized finance (defi) has decreased by 8.97% from $47.12 billion on June 5 to $42.89 billion on June 10, 2023, at 8:30 a.m. (ET). This loss amounts to approximately $4.23 billion in five days. The majority of these losses occurred during the last day, as the crypto economy and the top smart contract coin sector have seen a steep drop in the last 24 hours. The total market capitalization of the top smart contract token economy is currently $312 billion, but it has lost 8.6% of its value since yesterday. Three tokens, namely cardano (ADA), solana (SOL), and polygon (MATIC) have lost more than 20% of their value since Robinhood announced that it would delist these coins on June 27, 2023. Ethereum accounts for $209 billion of the total market capitalization of $312 billion. The TVL in defi has not been this low since March 12, 2023, when it was at $42.51 billion. The TVL had been above $40 billion since January 8, but it is now awfully close to falling below that level. All of the top ten defi protocols have seen losses in the last 24 hours and seven days. Only Lido Finance has recorded gains in the last 30 days, defillama.com’s defi statistics detail. Coinbase’s Wrapped Staked Ether protocol lost the most this week, with a 10.75% decrease. Instadapp also lost 9.59% in the past seven days. Ethereum’s 814 different defi protocols account for 55.88% of the market share at 8:30 a.m. on Saturday, out of the $42.89 billion locked. Tron is the second largest blockchain in terms of TVL size, with a 12.25% market share. Ethereum and Tron are followed by Binance Smart Chain (BSC), Arbitrum, and Polygon. The three tokens that Robinhood decided to delist have experienced significant losses in terms of TVL over the past seven days. Solana lost the least, shedding 5.99% this week, while Polygon saw a loss of around 14.90%. Cardano’s TVL in defi took the biggest hit, losing 32.57% in the last seven days. If the smart contract token economy continues to lose value, the TVL in defi will follow suit and may fall below the $40 billion mark. However, since the crackdown on centralized crypto exchanges, there has been a significant increase in defi activity and decentralized exchange (dex) trade volumes. The largest dex by trade volume, Uniswap, has benefited the most from the influx of dex trades since the recent U.S. Securities and Exchange Commission (SEC) lawsuits against Binance and Coinbase. Will the recent downturn in the crypto market be a temporary setback for smart contract tokens and defi, or is it a sign of deeper troubles ahead? Share your thoughts and predictions on the future of the crypto economy and its impact on defi in the comments section below. View the full article

Cardano fell by over 25% on Saturday, as traders continued to react to the token being delisted from the Robinhood platform. The global cryptocurrency market cap is currently down by nearly 6%, following these developments. Polygon, which was also delisted, dropped to a one-year low to start the weekend. Cardano (ADA) Cardano (ADA) dropped markedly on Saturday, as traders continued to react to the token being delisted from the Robinhood platform. Following a high of $0.3218 on Friday, ADA/USD slipped to a bottom at $0.2304 to start the weekend. Looking at the chart, the decline came as the relative strength index (RSI) plunged below a floor at the 30.00 mark, entering oversold territory. At the time of writing, the index is currently tracking at 17.75. ADA is currently trading at $0.2509, down 22% from yesterday’s peak. Polygon (MATIC) Additionally, polygon (MATIC) lost a significant amount of its value to start the weekend, nearing a one-year low in the process. MATIC/USD sank to a bottom at $0.5605 on Saturday, as prices dropped by nearly 30% from yesterday’s high. As a result of this decline, the world’s twelfth-largest cryptocurrency moved to its lowest point since last July. Overall, the token is now down close to 40% in the last seven-days, after breaking out of a support point at $0.75. This has also led to the 10-day (red) moving average (MA) extending a downwards crossover versus the 25-day (blue) MA. Price strength is also deeply oversold with a reading of 16.22, which is an all-time low point. Register your email here to get weekly price analysis updates sent to your inbox: Do you expect further declines in polygon in the coming days? Let us know your thoughts in the comments. View the full article

Bitcoin moved below the $26,000 level to start the weekend, as bearish pressure intensified following a week of turbulence. Sentiment in the market once again shifted, as traders liquidated their positions on the back of the U.S. Securities and Exchange Commission’s (SEC) crackdown on crypto. ETH dropped below $1,800. Bitcoin Bitcoin (BTC) started the weekend trading below $26,000, as traders continued to react to the fallout of the SEC’s cryptocurrency crackdown. The latest domino to fall came in the form of Robinhood, who moved to delist several altcoins from its platform, including solana and cardano. BTC/USD fell to an intraday low of $25,502 in the news, which comes a day after price peaked at $26,770. Looking at the chart, the latest downturn came as the 14-day relative strength index (RSI) fell towards a floor at 39.00 At the time of writing, the index is tracking marginally above this point at 40.06. In addition to this, the 10-day (red) moving average has extended its downward cross versus its 25-day (blue) counterpart, putting further emphasis on the current bearish sentiment. Ethereum Bears were also present in ethereum (ETH), which dropped below the $1,800 level to start the weekend. After climbing to a peak of $1,861.14 on Friday, ETH/USD slipped to a bottom of $1,721 earlier in today’s session. The move saw ethereum plunge to its weakest point since late April, breaking out of a floor at $1,730 in the process. As a result of this shift in market momentum, the RSI also tailed off, dropping to its lowest level since March. The index is currently at a reading below 40.00, which is close to oversold territory, and could act as a slight positive for bulls. In the event price becomes more oversold, there is a good chance that longer term bulls could move to buy the dip. Register your email here to get weekly price analysis updates sent to your inbox: Could there be more regulatory crackdowns on crypto companies next week? Leave your thoughts in the comments below. View the full article

Majority state-owned lender Sberbank is preparing to allow Russian citizens to buy and sell digital assets. Private individuals will be provided access to its proprietary blockchain platform as early as this month, a top executive of the bank announced. Sberbank to Open Digital Assets Platform to Private Individuals Retail investors will be able to transact with digital financial assets (DFAs) on the distributed ledger platform built by Sberbank by the end of the current quarter, according to the Deputy Chairman of the bank’s Board, Anatoly Popov. “If we talk about individuals, then in the second quarter, in June, we believe this function will be open,” Popov said, quoted by the Tass news agency. They will have the opportunity to buy digital financial assets, sell them and exchange them for fiat, he detailed. DFAs are a relatively new financial instrument for Russia which was regulated with the law “On Digital Financial Assets” in 2021. Unlike decentralized cryptocurrencies, they have an issuing entity and represent tokenized traditional assets such as gold, for example. The Central Bank of Russia (CBR) has already authorized several operators of DFA platforms such as the tokenization service Atomyze, the fintech company Lighthouse, Masterchain, and Alfa-Bank. Sberbank, which is Russia’s biggest bank by assets, was added to the regulator’s register in March 2022. Last week, the bank opened access to its in-house decentralized finance (defi) platform for developers. Since it was licensed, Sberbank has issued DFAs for billions of rubles, Popov noted. In May, the CBR said it expects a significant growth in the Russian digital assets market. The forecast came after in a single month, April, seven DFA placements were made for a total of around 1 billion rubles ($13 million). Russia has been taking steps to develop this regulated market but it’s yet to define the legal status of crypto assets like bitcoin. Several bills aiming to achieve that are now under review in parliament with sanctions pressures working in favor of legalizing crypto payments, at least in cross-border settlements, and regulating certain activities such as crypto mining. Do you think retail investors in Russia will benefit from the access to Sberbank’s DFA platform? Tell us in the comments section below. View the full article

John Reed Stark, founder and former chief of the Office of Internet Enforcement of the U.S. Securities and Exchange Commission (SEC), has warned about a new regulatory “siege” against crypto platforms. Reed Stark believes that “crypto trading platforms are high-risk, perilous, and inherently unsafe” and recommends investors exit all crypto exchanges. Former SEC Enforcement Chief Tells Investors to Get Out of Crypto John Reed Stark, founder and former chief of the Office of Internet Enforcement of the U.S. Securities and Exchange Commission (SEC), has recently issued his opinions regarding the legal actions of the institution against Coinbase and Binance, two cryptocurrency exchanges. Stark, who has more than 19 years of collaboration with the SEC, stated this might be the start of a cryptocurrency regulatory “siege” that could reach other companies in the industry. Stark explained: Get out of crypto platforms now, I can’t say it any plainer. I believe that we now know for certain that crypto trading platforms are under a U.S. regulatory/law enforcement siege which has only just begun. Furthermore, Stark clarified that, in his view, crypto trading platforms are “high-risk, perilous, and inherently unsafe,” declaring that the SEC is on the right track with its enforcement actions. Lack of SEC Registration Stark discussed how the lack of registration of these exchanges with the SEC limits the organization’s capacity for protecting crypto investors. This lack of registration has allowed crypto markets to operate without much supervision. Stark detailed: With crypto trading platforms, the SEC lacks any sort of oversight and access — and has scant ability to detect, investigate and deter fraudulent conduct. Coinbase and Binance have been charged with operating unregistered trading platforms; however, Coinbase CEO Brian Armstrong issued an answer to the SEC lawsuit, denying the company could register its activities after having numerous conversations with the organization. Armstrong recently stated there was no “path to ‘come in and register’ — we tried, repeatedly — so we don’t list securities.” In the same way, lawmakers have also criticized the SEC’s stance on this issue, accusing it of failing the cryptocurrency industry. Senator Cynthia Lummis stated that the SEC “failed to provide a path for digital asset exchanges to register,” and didn’t “provide adequate legal guidance on what differentiates a security from a commodity.” What do you think about John Reed Stark’s recommendations, and his stance on the recent SEC actions? Tell us in the comments section below. View the full article

Singapore-based cryptocurrency exchange Crypto.com announced that it intends to halt services for institutional traders in the United States on June 21, 2023. The exchange cited “limited demand” as the reason for suspending its institutional offering. Crypto.com to Cease U.S. Institutional Services on June 21 Crypto.com, the Singapore-based cryptocurrency exchange with 80 million customers worldwide, announced on Friday that it will cease its institutional offering in the United States. The exchange stated that it will close its U.S. institutional services on June 21 and emphasized that all institutional partners have been notified. The announcement, as seen by Bitcoin.com News, emphasized that Crypto.com’s retail clients need not worry, as the firm’s retail services are completely unaffected by the transition. Crypto.com cited “limited demand” in the country’s “current market landscape” as the reason for the move. The decision by Crypto.com comes in the wake of recent lawsuits filed by the U.S. Securities and Exchange Commission (SEC) against Binance and Coinbase. A spokesperson from Crypto.com spoke to ESPN and assured the media firm’s staff reporter, Dave McMenamin, that the recent decision would not impact the naming rights for Crypto.com Arena in Los Angeles. “We remain fully confident in the continued success of our market differentiating capabilities and offerings and will continue to offer all other regulated services in the markets in which we operate,” Crypto.com informed ESPN. Crypto.com emphasized the potential for its U.S. institutional division to make a comeback. The day before, the company forged a partnership with Coinroutes to “enhance institutional access to liquidity within the digital assets market.” Prior to that, Crypto.com obtained a major payment institution license from the Monetary Authority of Singapore (MAS). What are your thoughts on Crypto.com’s decision to suspend its institutional services in the U.S.? Share your thoughts and opinions about this subject in the comments section below. View the full article

Businesses marketing crypto assets to U.K. consumers will have to abide by stricter advertising rules presented by the country’s financial watchdog. These include prohibiting ‘refer a friend’ bonuses for the industry as well as introducing a cooling-off period for first time investors. Regulator Clamps Down on Crypto Ads, Wants to Make Risks Clearer to British Buyers in Marketing The U.K.’s Financial Conduct Authority (FCA) announced on Thursday new regulations for the advertising of crypto assets to the public. Under the tougher rules, crypto firms must ensure that British investors have “appropriate knowledge and experience to invest in crypto” and are duly warned by promoters about associated risks. The measures include banning ‘refer a friend’ bonuses, a marketing policy quite popular in the crypto space. The FCA also requires companies advertising crypto assets to U.K. consumers to introduce a cooling-off period for first time investors from Oct. 8, 2023. The latter begins when a potential investor responds to crypto advertising materials by requesting additional information, the FCA explained, quoted by Bloomberg. The entity marketing the investment must then wait 24 hours before responding to the customer’s request. The updated rules follow government legislation to bring crypto promotions into the regulator’s remit, the watchdog noted, adding that its approach regarding crypto promotion is consistent with the rules that the FCA imposed last year to tackle misleading financial adverts. Quoted in the press release, FCA Executive Director Consumers and Competition, Sheldon Mills, stated that Brits should be aware that crypto assets remain largely unregulated and risky. “Those who invest should be prepared to lose all their money,” he pointed out and insisted: It is up to people to decide whether they buy crypto. But research shows many regret making a hasty decision. Our rules give people the time and the right risk warnings to make an informed choice. The FCA further remarked that the new regulations enter into force after its own research showed that the estimated crypto ownership in the U.K. has more than doubled in 2022, compared to the previous year. It said that 10% of 2,000 people polled revealed they owned cryptocurrencies. Do you think other regulators in the region will introduce similar advertising rules for the crypto sector? Tell us in the comments section below. View the full article

Binance US has informed its users that U.S. dollar deposits have been suspended and USD withdrawals will no longer be processed. The crypto exchange has asked customers to withdraw dollars by June 13 as it transitions into a crypto-only trading platform. The move followed a lawsuit against the crypto exchange and several other Binance entities by the U.S. Securities and Exchange Commission (SEC). Binance US Suspends Dollar Deposits, Withdrawals Binance US made an announcement Thursday regarding the suspension of U.S. dollar deposits and withdrawals following an “aggressive” enforcement action taken by the U.S. Securities and Exchange Commission (SEC). The securities watchdog filed charges against several entities on Monday, including Binance Holdings, which operates Binance.com; its U.S.-based affiliate BAM Trading Services, which operates Binance US; and Binance CEO Changpeng Zhao (CZ). The regulator followed up with an emergency action application the next day, seeking a temporary restraining order to freeze assets held by Binance US. The SEC also filed charges against the Nasdaq-listed crypto exchange Coinbase on Tuesday. “The SEC has taken to using extremely aggressive and intimidating tactics in its pursuit of an ideological campaign against the American digital asset industry,” the official Twitter account for Binance US wrote Thursday, adding that the SEC’s action “has created challenges for the banks with whom we work.” The exchange continued: In an effort to protect our customers and platform, today we are suspending USD deposits and notifying customers that our banking partners are preparing to pause fiat (USD) withdrawal channels as early as June 13, 2023. We encourage customers to take appropriate action with their USD. In addition, Binance US informed customers that it will remove select BTC and BUSD advanced trading pairs. “We have also decided to streamline our buy, sell & convert offering and have paused our OTC trading portal,” the exchange noted. The platform additionally clarified that it is transitioning into a crypto-only exchange, stating on its website: Binance.US will become a crypto-only exchange. Please withdraw USD by June 13, 2023. “Any USD balances remaining on the platform after June 15, 2023, may be converted to stablecoin that can be withdrawn on-chain,” Binance US noted, emphasizing that “Cryptocurrency services remain fully operational, including crypto trading, staking, deposits, and withdrawals.” Moreover, Binance US stressed that it maintains a 1:1 reserve for all customer assets. In a letter to its users, Binance US stated that “the SEC has brought unjustified civil claims against our business, from which we will continue to vigorously defend ourselves, our customers, our partners, and industry.” The exchange similarly tweeted Thursday that it “will continue to vigorously defend ourselves, our customers, and industry against the meritless attacks of the SEC.” What do you think about Binance US becoming a crypto-only trading platform? Let us know in the comments section below. View the full article

Unlike in the United States where authorities are cracking down on the crypto industry, the regulations governing the industry are “more clearly defined and commercially viable in markets like Hong Kong, Singapore, and the UAE,” Stephan Lutz, the group CEO and CFO of the crypto exchange Bitmex, has said. U.S. Crackdown Driving Away Talent In his written answers to questions from Bitcoin.com News, Lutz hailed regulatory frameworks such as the one adopted by Hong Kong’s Securities and Futures Commission because it “provide[s] standards for digital assets that are crucial for this fast-growing asset class.” Concerning the likely impact on innovation of the United States government’s so-called Operation Choke Point 2.0, the Group CEO concurred with many crypto proponents who argue that such a clampdown will only drive away talent. The crackdown has and will indirectly benefit Hong Kong which according to Lutz is attempting to make itself “the epicenter of the crypto industry in Asia.” The CEO also touched on Bitmex’s product offering and why the crypto exchange is not offering services such as high-risk lending services. Below are Lutz’s detailed answers to all questions sent to him via Telegram. Bitcoin.com News (BCN): Stephen, regulators in the U.S. appear to have stepped up enforcement actions against crypto companies. There are also allegations that the regulators are trying to “de-bank” crypto. Can you shed light on the recent developments and what this so-called Operation Choke Point 2.0 is all about? Stephan Lutz (SL): After months of growing regulatory scrutiny and legal enforcement against crypto companies and their service providers in the United States, aka Operation Choke Point 2.0, we started to see the first evasion effects with local champions such as Coinbase and Gemini announcing plans to grow in offshore markets – evidence that they are shifting resources to attract international clients, with Asia being the focus. While the U.S. is choking the crypto industry and the EU has lower interest from users combined with a smaller market, Asian markets have a broad customer base with access to services. Consequently, Asia is the horse to bet on in the near-midterm, with some CIS markets like Turkey and UAE as the second fastest-growing market segment. Foreseeing competition to intensify and embracing forthcoming changes, we double down on our commitment to product innovation and building the best trading experience for crypto derivative traders. BCN: The U.S. regulatory crackdown against crypto could scare some developers and companies. If the enforcement actions continue without regulatory clarity, do you think it could slow the pace of innovation in the United States? SL: Yes, as there is a risk of top talent moving to markets that offer more regulatory certainty and lower risk, such as Singapore, Hong Kong, Europe, and the UAE. BCN: Even if some crypto projects want to shift base to another location, it often takes more than just favorable regulations to convince them to move to a different country or jurisdiction. What makes Asian jurisdictions like Hong Kong, Singapore, or Dubai attractive destinations for such companies? SL: I believe that the Asian digital assets market is poised for a bright future, with a supportive regulatory environment, an active venture capital market, and a diversified talent pool. Regulation is more clearly defined and commercially viable in markets like Hong Kong, Singapore, and the UAE. Since China is experimenting with CBDCs, Chinese banks in Hong Kong are now actively asked to support crypto businesses. To a money manager that means China is preparing for the asset class, making it a much lower risk to allocate funds to it than say six months ago. Those who visited Hong Kong in the past few weeks must have observed the Web3 spirit in the city. It’s clearly positioning itself to reclaim its position as the epicenter of the crypto industry in Asia, with a government that is embracing blockchain technology and actively competing with other Fintech hubs around the world. BCN: Your company Bitmex has most of its operations and users in Asia meaning you may have some first-hand experience with Asian regulatory and market conditions. Despite China’s apparent anti-crypto stance, do you think Hong Kong can thrive as a crypto hub? SL: Historically, Hong Kong has not just been one of the most popular breeding grounds for crypto innovations, but also where Bitmex first emerged. We believe the Securities and Futures Commission’s regulatory framework is a significant milestone for our industry as it will provide standards for digital assets that are crucial for this fast-growing asset class. On a personal level, I’m delighted to see the administration’s commitment to building a Web3 digital economy, starting with establishing clear guardrails and regulations. We are optimistic that Hong Kong will achieve its ambition of becoming a world-leading Web3 role model city and potentially the Web3 hub for China in years to come. BCN: Bitmex primarily offers crypto derivatives trading to institutional and professional traders rather than the retail crypto audience. What does your exchange offer to institutions and professionals that other exchanges don’t? SL: Bitmex offers the safety of assets, a solid and reliable exchange business without offering any high-risk lending services that could potentially derail the organization, an active community of experienced traders connected in the Bitmex Trollbox, leading BTC-margined contracts, and one of the fastest API-trading interfaces in the market. And, in all honesty, we are one of the few platforms that are not printing fake volumes. BCN: Crypto has financial as well as non-financial use cases, with applications in a wide range of industries. So, what, in your opinion, are the key points that regulators should look at to build a fair regulatory model? SL: Unlike the United States, we can see Europe moving forward with a regulatory framework called Markets In Crypto Assets (MICA) for cryptocurrencies and stablecoins that are not regulated by its existing financial services legislation. What are your thoughts about this interview? Let us know what you think in the comments section below. 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In a recent development, Bitgo, the digital asset trust firm, disclosed that it has penned a letter of intent to acquire Prime Trust, a crypto custodian based in Nevada. Should the acquisition proceed, Prime Trust would become an integral part of Bitgo’s network of regulated trust companies. Bitgo Signs Letter of Intent to Acquire Crypto Custodian Prime Trust Amid Speculative Chatter Bitgo reports that they have signed a letter indicating their intent to acquire Prime Trust. The announcement follows speculative chatter and multiple rumors on social media that suggest Prime Trust was grappling with financial struggles and potential bankruptcy. Last year, Prime Trust found itself in a legal dispute with the now-defunct crypto lender Celsius after they accused the custodian of failing to return $17 million in crypto assets in August 2022. In October 2022, Prime Trust consented to return the $17 million and stated that it would transfer the funds to a wallet designated by Celsius. Prior to Celsius’ grievance in August, the custodian had secured $107 million during a Series B funding round over a month earlier in June. Preceding the Series B, Prime Trust’s Series A round raised $65 million in July 2021. Following the crypto winter in 2022, however, two unnamed sources reported that Prime Trust laid off one-third of its employees in early 2023. On June 8, 2023, Bitgo unveiled its intention to procure Prime Trust and obtain full equity from parent company Prime Core Technologies. “This is a landmark transaction, leading a greater shift in the digital asset landscape toward a more secure and sustainable future,” Bitgo CEO and co-founder Mike Belshe said on Thursday. “With the expected acquisition of Prime Trust, Bitgo is well positioned to enhance its best-in-class, trusted solutions and to service the combined customer base.” Prime Trust collaborated with entities such as Abra, Okcoin, Augeo, Swan Bitcoin, and Trusttoken. Swan Bitcoin disclosed this May that it had shifted its assets into custody with Fortress Trust and Bitgo. Speculation has also circulated on social media regarding Scott Purcell founding both Prime Trust — which he left in August 2021 after over five years — and Fortress Trust in October 2021. In a Linkedin post, Purcell rejected any connection between the two companies, highlighting he exited Prime Trust two years prior. “There is absolutely zero connection between Fortress Trust and Prime Trust,” Purcell wrote. “Quite the opposite as at times we find ourselves competing with them. We are a very different company, from our exec team to our technology infrastructure.” On Thursday, Bitgo announced that incorporating Prime Trust’s infrastructure and exchange network will fortify Bitgo’s offerings in terms of “custody, liquidity, settlement, and regulatory compliance.” Additionally, the Palo Alto-based firm will acquire Prime Trust’s banking partners, crypto IRA, and existing payment networks if the acquisition materializes. “The combination of Prime Trust and Bitgo would be a significant enhancement for the industry,” stated Jor Law, Prime Trust’s interim CEO and president on Thursday. What are your thoughts on Bitgo’s planned acquisition of Prime Trust? Share your thoughts and opinions about this subject in the comments section below. View the full article

In a statement issued on Friday, the U.S. Department of Justice (DOJ) revealed that two Russian individuals have been accused of infiltrating a cryptocurrency exchange and running an unlawful exchange. Reportedly, the pair gained unauthorized access to Mt Gox’s servers from 2011 to 2014 and purportedly pilfered 647,000 bitcoins from the now-dissolved exchange. Russian Duo Accused of Orchestrating Mt Gox Heist and Operating Underground Crypto Exchange The U.S. government has charged two Russians for breaching Mt Gox and managing the former crypto exchange BTC-e. The defendants, Alexey Bilyuchenko and Aleksandr Verner, are believed by authorities to have collaborated with Alexander Vinnik in running BTC-e. As stated in the indictment, “As alleged in the indictments, starting in 2011, Bilyuchenko and Verner stole a massive amount of cryptocurrency from Mt Gox, contributing to the exchange’s ultimate insolvency. Armed with the ill-gotten gains from Mt Gox, Bilyuchenko allegedly went on to help set up the notorious BTC-e virtual currency exchange, which laundered funds for cyber criminals worldwide,” remarked Kenneth Polite Jr., the assistant attorney general of the Justice Department’s Criminal Division. A 2016 indictment was unveiled alongside the press release, revealing more details about the relationship between Mt Gox and BTC-e. The indictment alleges that “Bilyuchenko, Verner, and their co-conspirators” initially accessed Mt Gox in September 2011 and managed to siphon funds from its wallets. “From September 2011 through at least May 2014, Bilyuchenko, Verner, and their co-conspirators allegedly caused the theft of at least approximately 647,000 bitcoins from Mt Gox,” asserts the DOJ. BTC-e, Alexander Vinnik, and Russian nationals have all been implicated in hypotheses surrounding Mt Gox’s demise long ago. In 2019, reports stated that Russian attorney Alexander Zheleznikov from ZP Legal alleged his firm was aware of who the Russian nationals were and tied Mt Gox to the operators of BTC-e. In their latest discovery, the DOJ claims that the pair worked with an unnamed bitcoin brokerage service, referring to it as the “New York Bitcoin Broker” in the indictment. A fabricated advertising agreement was allegedly concocted between Bilyuchenko, Verner, and the New York Bitcoin Broker to camouflage and liquidate bitcoins taken from Mt Gox. “Bilyuchenko and Verner supposedly made regular requests to the owner and operator of the New York Bitcoin Broker to transfer large sums into various offshore bank accounts, including those under the names of shell corporations managed by Bilyuchenko, Verner, and their co-conspirators,” details the DOJ’s charges and unveiled court indictment. What do you think about the DOJ’s charges against the two Russian nationals? Share your thoughts and opinions about this subject in the comments section below. View the full article

Fintech and crypto firm Robinhood has announced the delisting of cardano (ADA), solana (SOL), and polygon (MATIC) on June 27, 2023. This development comes after the publicly-listed company revealed that it was “actively reviewing” its coin listings in the wake of recent U.S. Securities and Exchange Commission (SEC) enforcement actions against Binance and Coinbase. Robinhood Shakes Up Crypto Offerings, Delists Cardano, Solana, and Polygon Robinhood, a financial services company headquartered in Menlo Park, California, intends to remove the 8th, 10th, and 11th largest crypto assets by market capitalization on June 27. The decision was disclosed in a blog post published on June 9, which indicates that cardano (ADA), solana (SOL), and polygon (MATIC) will be taken off Robinhood’s platform. In a statement released on Friday, Robinhood said, “We regularly review the crypto we offer on Robinhood. Based on our latest review, we’ve decided to end support for cardano (ADA), polygon (MATIC), and solana (SOL) on June 27th, 2023 at 6:59 PM ET.” The company further reassured users that “no other coins are affected and your crypto is still safe on Robinhood.” This announcement comes amid increasing regulatory scrutiny of Binance and Coinbase by the U.S. SEC. After lawsuits were filed against both companies by the SEC, Robinhood declared that it was “actively reviewing” its coin offerings. Dan Gallagher, Robinhood’s Chief Legal Compliance and Corporate Affairs Officer, told Bloomberg that this review aimed to “determine what, if any, actions to take.” Should Robinhood clients fail to sell or transfer their ADA, MATIC, or SOL holdings before the deadline, the company will dispose of the assets at their fair market value. “After the deadline, any ADA, MATIC, and SOL still in your Robinhood Crypto account will be sold for market value and the proceeds will be credited to your Robinhood buying power,” Robinhood elaborated. What are your thoughts on Robinhood’s delisting of Cardano, Solana, and Polygon? Do you believe it’s a necessary move in light of regulatory actions, or do you see it as a potential setback for the platform’s crypto offerings? Share your thoughts and opinions about this subject in the comments section below. View the full article

PRESS RELEASE. GAIMIN (www.gaimin.io), the world’s leader in delivering decentralised data processing power through gaimin.cloud (www.gaimin.cloud), is delighted to announce GAIMIN is the world’s first company to power AI modelling computations through high powered distributed gaming PCs. AI processing requires significant amounts of computational power, typically handled by the GPU due to its high performance mathematical processing capabilities. However, the GPU as a device is very much in demand across a number of different industries, more notably within the growing gaming community who use the GPU to enhance their gaming experience, thereby spreading the reach and availability of devices. Research by GAIMIN indicates that GPUs in high performance computers, such as a gaming PC, are underutilised. The most powerful devices are more than capable of supporting competing processing requirements, such as gaming, whilst also delivering other data processing services with no impact on performance. Also, with most gaming computers typically only used for 20% of the day, there is a significant amount of underutilised data processing power available. GAIMIN has created a distributed high-powered computing (HPC) network (www.gaimin.cloud), harnessing the underutilised processing power within gaming PCs. Users participating in gaimin.cloud receive payment and rewards for allowing their devices to accept data processing jobs from GAIMIN. Designed with flexibility for service provision, gaimin.cloud currently supports the rendering of videos and powering of blockchain computations and has recently been extended to support the data processing requirements of various AI Models. Following a period of testing, this service will be added into gaimin.cloud to extend the monetization options through the GAIMIN app (www.gaimin.gg). Martin Speight, CEO of GAIMIN commented, “With the global limited availability of GPU devices combined with the growing need for GPU-based processing power, GAIMIN’s world-wide network of GPU-based data processing power distributes data processing services globally, using devices that are already operational. GAIMIN rewards users in GAIMIN’s soon to be listed cryptocurrency, GMRX, and also through the ability to earn Digital Game Assets (DGAs), enhancing their gaming experience.” Buki Ben-Natan, CTO for GAIMIN, and the designer of this solution, stated, “By innovatively harnessing the power of existing CPU and GPU resources, we have successfully bridged the gap between AI applications and computational scarcity, unlocking endless possibilities for industries seeking to take the next big leap forward.” Martin added, “GAIMIN will offer a cost-effective and hassle-free solution for small and medium-sized businesses to access the power of AI without the need for expensive infrastructure and technical expertise. With our pay-per-use service, businesses can easily integrate AI into their workflows and achieve better results without having to worry about hosting servers or managing complex systems.” Over the coming months, GAIMIN will be adding more AI Models into its platform, augmenting the AI data processing capabilities of the GAIMIN app and extending the monetization aspects available to GAIMIN users participating in gaimin.cloud and helping mitigate the world-wide demand for data processing services. About GAIMIN GAIMIN.IO Ltd (GAIMIN) is a UK and Swiss-based gaming company focused on helping the gaming community monetize the computational power of their gaming PC. GAIMIN has created a decentralized data processing network harnessing underutilized processing power typically found in gaming PCs to create a world-wide decentralized data processing network, delivering supercomputer performance. With a free-to-download PC-based application, GAIMIN monetizes the under utilised performance through innovative approaches to delivering supercomputer-level data processing performance from a world-wide network of independent processing devices which power GAIMIN.CLOUD. Focusing initially on video rendering and AI data processing, with an always available service to power blockchain computations, the GAIMIN data processing network is continuously delivering data processing services and returning rewards back to its user community. GAIMIN rewards users in its own cryptocurrency, GMRX which can then be used for purchases on the GAIMIN Marketplace for NFTs, in-game assets, accessories, and merchandise, or it can be converted to fiat or a different cryptocurrency. For more information on GAIMIN click on this link: www.gaimin.io To download the GAIMIN app, please go to www.gaimin.gg For up-to-date information, please follow the following GAIMIN social media accounts: Facebook: https://www.facebook.com/Gaimin.io Instagram: https://www.instagram.com/gaimin_io/ Twitter: https://twitter.com/GaiminIo LinkedIn: https://www.linkedin.com/company/gaimin/ YouTube: https://www.youtube.com/c/Gaimin Telegram: https://t.me/officialgaimin Discord: https://discord.gg/SmYsmVS8x7 TikTok: https://www.tiktok.com/@gaimin.gg For further information, please contact: The Americas, Middle East and Australian Pacific – Andrew Faridani, Chief Marketing Officer for GAIMIN (based in Toronto, Canada): andrew@gaimin.io UK and Europe – Marc Bray, Chief Communications Officer for GAIMIN (based in Manchester, UK): marc@gaimin.io This is a press release. Readers should do their own due diligence before taking any actions related to the promoted company or any of its affiliates or services. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in the press release. View the full article

In a tweet this week, crypto advocate Nic Carter took aim at those who claim to be bitcoin enthusiasts but have been applauding the U.S. Securities and Exchange Commission’s (SEC) enforcement actions. Carter accused these individuals of turning Bitcoin into a “secular cult” and argued that the “vast majority” of them are actually newcomers to the cryptocurrency space. His criticism highlights the growing divide within the Bitcoin community between those who prioritize decentralization and those who welcome regulatory oversight. Nic Carter ‘Laser Eyes or Bitcoin Maximalism Isn’t Like a Religion, It’s Literally One — It Has Everything a Religion Has’ As of late, a number of Bitcoin advocates have been seemingly cheering on the U.S. Securities and Exchange Commission’s (SEC) enforcement actions against major exchanges like Binance and Coinbase. These individuals argue that all cryptocurrencies except for bitcoin (BTC) are unregistered securities and have been eagerly awaiting the SEC’s crackdown. However, longtime Bitcoin supporter Nic Carter took to Twitter to criticize this group, claiming that they have turned Bitcoin into a “secular cult.” In a lengthy tweet, Carter accused these so-called “bitcoiners” of blindly following a dogmatic belief system. #Bitcoin maxis have saved MILLIONS. Crypto has lost BILLIONS. We are not the same. pic.twitter.com/r4KliZkYvY — The ₿itcoin Therapist (@TheBTCTherapist) June 7, 2023 “[You can call this group] ‘laser eyes’ or ‘maxis,’ whatever you want, they know who they are, we know who they are,” Carter said. “There’s no uncertainty about this – they are people that elevated Bitcoin from a mere tool to a belief system, a way of life. The vast majority of these cult adherents are actually new to Bitcoin,” he added. According to Carter, this group of Bitcoin enthusiasts peddles false promises of wealth and endless price growth. He also noted how they have bought into “fallacies like the stock-to-flow model.” Carter stressed: Again, remember that these are latecomers. They needed to find a moral high ground over the established crypto elites, that mostly made money from their participation in the space, and the pure, underprivileged Bitcoin plebs. Carter’s criticism of this group of Bitcoin enthusiasts didn’t sit well with everyone. One person accused him of being too focused on short-term gains, arguing that simply “stacking” Bitcoin would have yielded better returns all along. Another individual questioned Carter’s assertion that the majority of these enthusiasts are newcomers to the space. “I’m curious where you draw the conclusion that Bitcoin maximalists are new to the space,” the person asked. Carter’s response was blunt: “Because I have eyes.” While some agreed with Carter’s sentiment and expressed their own frustration with Bitcoin maximalists, others dismissed his comments as nothing more than a rant. One of the most absurd threads I ever read. If Coinbase just focused on Bitcoin, it would be irrelevant as a company. The reason why Coinbase matters is that they embraced the innovation that happens across the industry. And bitcoin maxis cheering excessive & arbitrary… https://t.co/67kIKEwjzB — Brian Fabian Crain (@crainbf) June 7, 2023 Carter’s viewpoint was met with opposition from an individual who claimed to have been a “hardcore maxi” since 2016. This person shared their experience of stacking sats and withdrawing their bitcoin from exchanges. In a lengthy response, they vehemently disagreed with the notion of using centralized exchanges and entrusting them with one’s bitcoins. According to them, this practice is even worse than relying on banks to hold one’s money. He added: Coinbase and Binance need to fail they hold way to much customer bitcoin. It needs to be withdrawn immediately from all these exchanges. My profile was created in 2011. I’m honestly surprised you haven’t blocked me yet because of laser eyes. In his tweet, Carter didn’t hold back in his criticism of BTC maximalists, claiming that they aren’t interested in building real companies. Instead, he argued, they’re more like members of a religious cult, complete with their own set of religious texts, a conception myth, eschatology, rituals, and even a tithe. According to Carter, these cultists take issue with exchanges like Binance and Coinbase because they listed other cryptocurrencies, which they see as “impure.” This is despite the fact that these exchanges have “done more for bitcoin adoption and accessibility than literally any other companies in the industry’s history,” he said. While Carter acknowledges that Binance and Coinbase may have made some questionable decisions, he also recognizes that they are two very different companies with different regulatory strategies. Despite this, he believes that “they did provide the tools for bitcoin to achieve global adoption in a way that wasn’t possible before.” Carter’s criticism of Bitcoin tribalism is nothing new, as the community has been grappling with issues and debates associated with altcoins and block size scaling for years. More recently, there has been a growing chorus of voices arguing that non-fungible tokens (NFTs) and BRC20 tokens have no place on the Bitcoin network. This has sparked a fierce debate within the community, with some ‘laser-eyed maxis’ arguing that the Bitcoin blockchain should be used exclusively for financial transactions. What do you think about Nic Carter’s opinion of laser-eyed maximalists? Share your thoughts and opinions about this subject in the comments section below. 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Commonwealth Bank of Australia plans to restrict payments to crypto trading platforms, citing the threat of scams. The measure would deal another blow to digital asset exchanges operating in the country where it has been getting harder to deposit funds for cryptocurrency operations. Crypto Traders in Australia to Face Another Restriction on Fiat Deposits Australia’s largest lender intends to impose a monthly limit of 10,000 Australian dollars ($6,663) on payments made to crypto exchanges. In a statement quoted by Bloomberg, Commonwealth Bank of Australia (CBA) detailed that some of the transfers will be held for 24 hours or declined. Scams around the world are “masquerading as legitimate investment opportunities or diverting funds into cryptocurrency exchanges,” said General Manager of Group Fraud Management Services at CBA, James Roberts, providing reasons for the upcoming move. Australians have lost at least 3 billion Aussie dollars to scams in 2022, the report notes, which represents an 80% increase from a year earlier. Crypto has played a significant role in this trend, according to the Australian Competition and Consumer Commission (ACCC). CBA’s announcement is another threat for the crypto trading industry in Australia where the banking sector has been making it harder to transfer fiat funds to digital asset exchanges, citing scam-related risks in most cases. On May 18, Australia’s Westpac Banking Corp. said it had started trialing new customer protections for some crypto payments to reduce “scam losses.” Right after, Australia admitted it could no longer accept deposits through the Australian payment gateway Cuscal. The latter highlighted its focus on “protecting Australians from financial crimes and scams.” In late May, another Bloomberg report revealed that Binance Australia users were selling bitcoin and other cryptocurrencies at discount rates. The price difference with other exchanges in the country was attributed to the decision of the popular Australian payment provider Payid to quit processing withdrawals in Australian dollars for the exchange’s customers. Do you expect to see more banking restrictions for crypto trading in Australia? Tell us in the comments section below. View the full article

Major Chinese state-owned banks have lowered interest rates on U.S. dollar deposits. However, they reportedly dismissed claims that the moves were influenced by the Chinese government, stating that the rate cuts were market-driven. Chinese Banks Reduce Dollar Deposit Rates Major Chinese state-owned banks reportedly cut the maximum interest rates they offer on U.S. dollar deposits this week. They explained that the moves were market-driven, dismissing recent reports by some news outlets that their decisions were influenced by the Chinese government. Reuters, for example, reported Tuesday that “In a rare attempt to bolster China’s yuan, a self-regulatory body overseen by the country’s central bank has told major state-owned banks to lower dollar deposit interest rates.” The publication cited four people with direct knowledge of the matter. According to a Wednesday report by the Global Times, “some bank insiders” described the reductions in dollar deposit rates as a self-regulatory measure aimed at preserving stability in the dollar-yuan exchange rate. The yuan has weakened more than 6% against the USD since January. A manager at a Bank of China branch in Shanghai detailed that the bank’s one-year dollar deposit rate has been reduced from 5% to 4.3% for deposits exceeding $50,000 starting from Monday, and 2.8% for deposits below $50,000. She anticipated that the deposit rate would remain unchanged for the foreseeable future but gradually decline over the long term. Citing several market factors as the reason behind the rate reductions, including the volatility of global interest rates and a rise in dollar deposits held by the banks, she insisted: The fluctuation of bank interest rates is normal and relatively frequent. A manager at an Industrial and Commercial Bank of China (ICBC) branch in downtown Beijing confirmed to the publication that dollar deposit rates have been significantly cut amid expectations of the U.S. Federal Reserve pausing interest rate hikes. For example, for deposits of $30,000, the rate was reduced from 4.8% on Sunday to 2.8% on Monday. Some Chinese lenders also cut rates on yuan deposits, the news outlet noted. A manager at a Shanghai branch of Ping An Bank said that the bank is considering reducing the current three-year yuan deposit rate of 3.25% to below 3%, with the change expected to take effect next week. On Thursday, Reuters reported that China’s biggest banks have lowered interest rates on yuan deposits. Xi Junyang, a professor at the Shanghai University of Finance and Economics, explained that Chinese banks have sufficient dollar reserves so they do not need to offer high-interest rates to attract deposits. Xi further explained that the anticipation of a decrease in U.S. interest rates allowed Chinese banks the flexibility to make this adjustment, emphasizing that the decision is market-driven. An economist at Oversea-Chinese Banking Corp., Tommy Xie, characterized the reduction in dollar deposit rates as a creative strategy to mitigate the effects of lower yuan interest rates. However, he noted that this measure alone is “probably not enough” to discourage carry trades that use cheaper yuan borrowings to fund dollar purchases. Nomura Holdings’ strategists wrote in a note this week that “lowering onshore USD deposit rates may drive key accumulators of foreign currency to keep even more of their FX earnings offshore,” emphasizing that it may only add to the current negative balance of payment pressures for China. What do you think about Chinese state-owned banks cutting U.S. dollar deposit rates? Let us know in the comments section below. View the full article

Several lawmakers have slammed the U.S. Securities and Exchange Commission (SEC) for regulating the crypto industry by enforcement. One lawmaker says the regulator’s latest action against crypto exchange Coinbase “demonstrates a complete contempt for Congress which is in the process of developing a framework.” Another lawmaker stated that if the regulatory framework were in place, “the SEC wouldn’t have to take the actions that they’ve taken.” Lawmakers Slam SEC and Chair Gary Gensler The U.S. Securities and Exchange Commission (SEC) and Chair Gary Gensler have been heavily criticized for regulating the crypto industry by enforcement after the regulatory agency took action against two leading cryptocurrency exchanges this week. The Nasdaq-listed crypto exchange Coinbase faced a lawsuit from the SEC on Tuesday, while and its CEO, Changpeng Zhao (CZ), were hit with 13 charges by the securities regulator a day earlier. The SEC labeled 12 crypto tokens as securities in the Binance lawsuit and several more in the Coinbase one. U.S. Representative Ritchie Torres (D-NY), a member of the House Financial Services Committee that oversees the SEC, told Marketwatch on Wednesday: The latest enforcement action against Coinbase is an egregious example of regulation by enforcement … It demonstrates a complete contempt for Congress which is in the process of developing a framework. The congressman added that Chairman Gensler’s current position on crypto reflects a significant departure from his previous perspectives on the technology when he taught a course on blockchain and money at the Massachusetts Institute of Technology (MIT) in 2018. Torres described: His view of the law has been constantly changing … Mr. Gensler has gone from a crypto cheerleader to a crypto skeptic … He’s portraying crypto as the villain in order to portray himself as a political hero. Several other lawmakers have similarly criticized the SEC and Gensler for their enforcement-centric approach to regulating the crypto industry, including Senators Cynthia Lummis (R-WY) and Bill Hagerty (R-TN). Congressman French Hill (R-AR), who chairs the House subcommittee on digital assets, stated Monday that the securities watchdog’s recent crackdown is a “cover your ass” move to distract from its failure to prevent the collapse of crypto exchange FTX. Last week, Hill and several other lawmakers released a discussion draft of legislation to provide “a statutory framework for digital asset regulation intended to provide clarity, fill regulatory gaps, and foster innovation, while providing adequate consumer protections.” Hill told CNBC in an interview on Wednesday: “Both the action on Coinbase, on Binance, and of course the infamous collapse of FTX last year, speak to me that we need this clear, concise, statutory, framework.” The congressman emphasized: That’s why we’ve introduced this bill … If we had this bill in place, then the SEC wouldn’t have to take the actions that they’ve taken. What do you think about the actions the SEC took against Coinbase and Binance? Let us know in the comments section below. View the full article

U.S. Securities and Exchange Commission Chair Gary Gensler discussed crypto exchanges and digital currencies at the Piper Sandler Global Exchange & Fintech Conference. He insisted that there is “nothing about the crypto securities markets that suggests that investors and issuers are less deserving of the protections of our securities laws.” Gensler reasserted his belief that “the vast majority of crypto tokens meet the investment contract test.” Gensler Dismisses Claim of Exchanges and Crypto Token Issuers Lacking Fair Notice — ‘Don’t Believe It’ Gary Gensler, the current chair of the U.S. Securities and Exchange Commission (SEC), discussed digital currencies at the Piper Sandler Global Exchange & Fintech Conference in New York. Gensler pointed out that some promoters of crypto asset securities claim that their token’s utility exempts it from being classified as an investment contract. However, the SEC chair rejects this argument and insists that “crypto security issuers need to register the offer and sale of their investment contracts with the SEC or meet the requirements for an exemption.” Gensler stated: Some additional utility does not remove a crypto asset security from the definition of an investment contract. Gensler’s speech follows court documents alleging that the current SEC chairman had once sought to advise for Binance in 2019 and reportedly had lunch with Binance’s founder Changpeng Zhao (CZ) in Japan. When discussing crypto exchanges and alleged crypto securities, Gensler emphasized that the SEC “provided years of guidance to market participants on what does or does not constitute a crypto asset security.” He also highlighted that the SEC’s enforcement actions against LBRY, Telegram, and Kik have further clarified the matter. “In fact, we alleged just this week that Binance’s chief financial officer and chief compliance officer were aware of the Kik case’s relevance to their own business,” Gensler told the attendees. “According to our complaint against Binance, as a result of the SEC’s action against Kik, Binance insiders realized that they would need to ‘start prepping everything’ for a subpoena and Wells notice relating to their exchange token, BNB, including a ‘War chest.’” Gensler Stresses SEC Has ‘Consistently Alleged That Lending and Staking-as-a-Service Offerings Need to Register’ Gensler believes that there are “flexible rules for the disclosures required in registration statements.” He dismissed claims of “lacked ‘fair notice'” by participants on Twitter, urging people not to believe it. Following regulatory actions against Binance and Coinbase, Gensler stated during an interview with CNBC earlier this week that there is no necessity for numerous digital currencies. “We already have digital currency. It’s called the U.S. dollar. It’s called the euro or it’s called the yen, they’re all digital right now,” Gensler conveyed to the show host. Regarding staking-as-a-service and the actions taken against Coinbase in relation to this issue, Gensler emphasized that the SEC had provided prior notice through their crackdown on Bitconnect and Blockfi. Gensler asserts that the SEC has “consistently alleged that these lending and staking-as-a-service offerings need to register and provide the investing public with proper disclosures.” What are your thoughts on SEC Chair Gensler’s response to claims of exchanges and crypto token issuers lacking fair notice? Share your thoughts and opinions about this subject in the comments section below. View the full article

Founder of Terraform Labs, Do Kwon, has withdrawn millions of dollars in crypto from an entity linked to his failed blockchain firm, investigators claim. South Korean authorities are now trying to locate the digital assets that have been allegedly transferred since his arrest in Montenegro in March. Prosecutors Try to Trace Tokens for Millions of Dollars Tied to Terrausd and Kwon Crypto entrepreneur Do Kwon has reportedly funneled tens of millions of dollars’ worth of cryptocurrency out of an entity linked to the blockchain project he founded and managed before its collapse last year, according to a South Korean prosecutor working on the case. Dan Sunghan, director of the financial crime investigation bureau at the Seoul Southern District Prosecutor’s Office, told Bloomberg that the digital coins valued at $29 million were likely moved by Kwon personally, or at his request, after he was detained this spring. Kwon, who vanished after the crash of Terraform’s stablecoin terrausd and cryptocurrency luna in May 2022, was arrested on March 23, this year, while trying to leave Montenegro on a fake passport. He is currently facing trial in the small Balkan nation. Dan revealed that South Korean authorities are now trying to find the tokens, which were withdrawn from a crypto wallet belonging to Kwon’s Luna Foundation Guard (LFG), an entity established by Kwon to help maintain terrausd’s peg to the U.S. dollar. The fate of the crypto assets has been the subject of speculations since the collapse of the Terraform ecosystem and Kwon’s disappearance. Besides these funds, he had previously diverted another 10,000 BTC or more, as alleged by the U.S. securities regulator in February. Kwon and his associates are also believed to hold at least $13 million at Swiss crypto-focused lender Sygnum Bank, Dan Sunghan added. “We’re assuming that Do Kwon, or someone under his direction, took out the amount and moved it to another wallet, not to Sygnum, and cashed it out somewhere else” after Kwon’s arrest, the Korean prosecutor elaborated, noting that investigators have yet to locate the funds. The Terraform Labs founder has been accused of crypto fraud in the U.S. and the Republic of Korea, with the two countries seeking his extradition from Montenegro, where he pleaded not guilty to the charge of using forged travel documents and sought to be released on bail. Kwon may be tried in both South Korea and the United States for the $40 billion crash and potentially spend most of his life in prison, said Dan, who leads the Korean investigation. The 31-year-old man can “be extradited to the U.S. and face trial there, and then have the sentence executed in South Korea and the U.S. after that,” the prosecutor explained. Do you think Do Kwon has managed to divert the cryptocurrency to a wallet under his control? Share your thoughts in the comments section below. View the full article

Lawyers for Binance claim that current U.S. Securities and Exchange Commission (SEC) chair Gary Gensler once sought to become an advisor for the exchange back in 2019. This purported application occurred while Gensler was teaching at the Massachusetts Institute of Technology (MIT) and coincided with his discussion of the crypto network Algorand during a blockchain seminar. Ethical Concerns Arise as Binance Lawyers Accuse SEC Chair Gensler of Past Interest Legal representatives from Gibson Dunn and Latham & Watkins, defending Binance after the SEC filed 13 charges against the platform, suggest that commission chair Gary Gensler expressed interest in advising Binance a few years prior. According to these attorneys, Gensler engaged in multiple talks with Binance executives in March 2019 and allegedly dined with Binance’s founder Changpeng Zhao (CZ) in Japan. At the time, Gensler was not the SEC chair and held a teaching position at MIT in Massachusetts. He worked for the university’s Sloan School of Management where he conducted several blockchain seminars. Gibson and Latham’s lawyers maintain that CZ and Gensler remained in contact after their meeting in Japan. Despite these supposed ties, the SEC informed CNBC that Gensler is aware of his ethical responsibilities. The agency responded by saying: Chair [Gary Gensler] is very familiar with and in full compliance with his ethical obligations including any recusal obligations. This isn’t Gensler’s first brush with allegations of pre-judging matters and breaching recusal commitments. Following an interview with New York Magazine’s Intelligencer reporter Ankush Khardori, Ripple’s chief legal officer Stuart Alderoty contended that Gensler should “recuse himself from voting on any enforcement case that raises that issue.” At the time, Alderoty believed that the SEC chair had “prejudged the outcome.” Additionally, the crypto community has criticized Gensler for his perceived endorsement of Algorand (ALGO). In one notable MIT video, Gensler calls Algorand a “great technology” and suggests it has potential to be utilized for a system akin to Uber. Many view Gensler’s remarks as an endorsement for ALGO, comparable to Kim Kardashian promoting EMAX. What are your thoughts on the alleged past ties between SEC chair Gensler and Binance? Share your thoughts and opinions about this subject in the comments section below. View the full article