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Financial institutions in Russia will not be able to communicate with clients through instant messengers based outside the country, local media revealed. A new law passed by the State Duma also prohibits banks from using chats to send personal data and payment documents. Bill Restricts Russian Banks and Brokers From Sending Sensitive Information Through Foreign Messengers Banks in the Russian Federation will not be allowed to contact their customers on a number of popular messengers, according to new legislation approved by the lower house of parliament. The ban applies to foreign-based platforms. A list of the affected apps is yet to be published by Roskomnadzor, the Federal Service for Supervision of Communications, Information Technology and Mass Media, but Telegram, Whatsapp, Viber, and the like fit the description, the business daily Kommersant reported. The draft law, passed by the State Duma in the third reading, also restricts the use of this type of messaging service for correspondence containing sensitive information like personal data or documents related to payments and money transfers. The restrictions concern not only banks but all other financial organizations as well, including brokers, companies operating in the securities market, management firms, investment funds, and private pension funds and depositories, the article details. Digital Development Ministry to Oversee the Implementation of the New Restrictions According to Anatoly Aksakov, head of the parliamentary Financial Market Committee, the Russian Ministry of Digital Development, Communications and Mass Media will be tasked to oversee the ban, not the Central Bank of Russia in this case. Commenting for Kommersant, he also stated: Credit organizations, of course, are very careful about the implementation of the law, and are unlikely to violate it. Therefore, obviously, they will take steps to avoid falling under sanctions. Speaking to the newspaper, members of the industry noted that instant messengers are rarely used to communicate with clients, especially by large players who have developed their own applications featuring built-in support chats. Others employ third-party solutions, most often secure platforms for communicating with clients, exchanging documents, concluding agreements, uploading data, and reporting to the central bank, explained Tatyana Evdokimova, an investment advisor. “We know what personal data protection is, and we have been complying with certain requirements for a long time,” she emphasized. Do you think the ban will affect the daily operations of banks and other financial institutions in Russia? Share your thoughts on the subject in the comments section below. View the full article

A strategist at global investment bank JPMorgan says crypto is effectively nonexistent as an asset class for most large institutional investors. “The volatility is too high, the lack of an intrinsic return that you can point to makes it very challenging,” he added. JPMorgan on Institutional Crypto Investing JPMorgan Asset Management’s head of institutional portfolio strategy, Jared Gross, discussed crypto and institutional investors’ interest in the asset class on Bloomberg Friday. The senior investment strategist described: As an asset class, crypto is effectively nonexistent for most large institutional investors … The volatility is too high, the lack of an intrinsic return that you can point to makes it very challenging. Gross added that it is “self-evident” that bitcoin has not proven itself to be a form of digital gold or haven asset like some have hoped. He continued: Most institutional investors probably are breathing a sigh of relief that they didn’t jump into that market and are probably not going to be doing so anytime soon. The crypto market has declined significantly this year as the Federal Reserve and other major central banks around the world raised interest rates to fight inflation. There have also been collapses and bankruptcies within the sector, including the most recent fallout of crypto exchange FTX. Meanwhile, a growing number of banks and financial institutions are offering crypto products and services to their institutional clients. Investment giant State Street, for example, said in September that it sees unwaning demand for crypto assets from institutional investors. Nasdaq recently established a crypto unit called “Nasdaq Digital Assets,” citing increased demand among institutional investors. Furthermore, a survey released in November by crypto exchange Coinbase showed that institutional investors increased their allocations during the crypto winter. The firm emphasized that there is “a strong signal of the acceptance of crypto as an asset class.” A study published by financial giant Fidelity in October showed that 74% of institutional investors surveyed plan to invest in digital assets. What do you think about the JPMorgan strategist’s statement regarding institutional investors’ interest in crypto assets? Let us know in the comments section below. View the full article

The host of Mad Money, Jim Cramer, says he would not touch crypto in a million years. He called investors who own various altcoins idiots and urged the U.S. Securities and Exchange Commission (SEC) to do “a big sweep” on the crypto industry. Jim Cramer’s Crypto Warnings The host of CNBC’s Mad Money show, Jim Cramer, has issued more warnings about cryptocurrency. Cramer is a former hedge fund manager who co-founded Thestreet.com, a financial news and literacy website. He said on CNBC Friday: I would not touch crypto in a million years because I wouldn’t trust the deposit bank. He was then asked whether he is making a distinction between centralized and decentralized platforms. “They fought regulation. They didn’t want regulation and you don’t have regulation,” Cramer replied, indicating that he does not trust any platforms that do not want regulation. The Mad Money host continued: I’m just saying you are using a lot of blind faith, and I like to have my money at JPMorgan, and I check on Monday to see whether my balance is there. It feels good. “Try getting your money out,” he advised crypto investors, adding that when he had money at a crypto firm: “It was a fight to get the money out — a fight!” Cramer opined: I think that everybody who owns these various coins — you know, solana, litecoin — I do think you are an idiot, okay. I did not go to college to get stupid. These people who own these things should not own them. They shouldn’t own them. Jim Cramer Calls on SEC to Do a Big Crypto Sweep Cramer also commented on the chairman of the U.S. Securities and Exchange Commission (SEC), Gary Gensler, stating that existing securities laws are adequate for the regulation of the crypto industry. He wants the SEC to “come on and enforce” crypto firms. The Mad Money host added: I think they need to do a big sweep. They have to stop people creating money. “It’s the creation of money by cretins. I don’t think cretins should create money and then suck people in. These are worse than even the worst Nasdaq stocks,” Cramer concluded. The Mad Money host used to invest in bitcoin, ether, and non-fungible tokens (NFTs) but he sold all his crypto holdings last year. Cramer has been advising investors to avoid investing in speculative assets, including crypto, while the Federal Reserve continues to tighten the economy. Earlier this month, he advised investors to get out of crypto, emphasizing that it is never too late to exit “an awful position.” What do you think about the warnings by Jim Cramer about the danger of crypto investing? Let us know in the comments section below. View the full article

People involved in financial tech, software programming, cyber security, and cryptocurrencies have been talking about the Lastpass data breach that was disclosed two days ago. The password management company detailed that a breach, committed earlier this year, allowed hackers to obtain a “backup of customer vault data.” Lastpass Reveals ‘Threat Actor Was Also Able to Copy a Backup of Customer Vault Data’ On Dec. 22, 2022, the password management firm Lastpass disclosed that an “unknown threat actor” managed to breach the firm’s cloud-based storage environment in or around Aug. 2022. As soon as the news was published, the Lastpass data leak has been a topical discussion on social media and forums. A great number of people believe that Lastpass’ situation “may be worse than they are letting on.” LastPass attackers now know all websites you have passwords stored for and the blobs, encrypted only by your master password https://t.co/Wdbt6mWe8C https://t.co/HldcJ8DYkK — SwiftOnSecurity (@SwiftOnSecurity) December 22, 2022 “Based on our investigation to date, we have learned that an unknown threat actor accessed a cloud-based storage environment leveraging information obtained from the incident we previously disclosed in August of 2022,” Lastpass disclosed. The password management company added: The threat actor was also able to copy a backup of customer vault data from the encrypted storage container which is stored in a proprietary binary format that contains both unencrypted data, such as website URLs, as well as fully-encrypted sensitive fields such as website usernames and passwords, secure notes, and form-filled data. Lastpass insists the encrypted fields are secure with 256-bit AES encryption and the info can only be decrypted by leveraging each user’s master password using the firm’s zero-knowledge architecture. “As a reminder, the master password is never known to Lastpass and is not stored or maintained by Lastpass,” the company detailed. lastpass gets hacked and immediately after a ton of crypto wallets are broken into and drained “be your own bank” nah go break into a brick & mortar establishment if you want my funds nerds, good luck — gainzy (@gainzy222) December 24, 2022 Lastpass’ Security Reassurance Doesn’t Seem to Convince a Number of Critics However, a number of reports believe that the situation is worse than Lastpass is letting on. Reviewgeek.com’s Andrew Heinzman stresses in his report to “please, stop using Lastpass.” “Even if you use a strong master password, there’s a chance that hackers will try to phish some information out of you,” Heinzman wrote. The author added: To be clear, Lastpass is still investigating this data breach. And after four months of ‘sorry, it’s worse than we thought,’ customers are rightfully worried that Lastpass doesn’t have all the details. For all we know, things could get even worse. We asked our readers to stop using Lastpass in July 2020. Crypto supporter Udi Wertheimer also warned people that if they use Lastpass “attackers probably have a copy of your vault.” Wertheimer’s recommendation is the same as Heinzman’s as the digital currency proponent insisted that users should “stop using Lastpass.” “We don’t know how bad things are,” Wertheimer added. “It’s possible that attackers have ongoing access, so don’t just change your passwords and put them back into Lastpass.” Moreover, a Twitter user who claims to have worked as an engineer for the company seven years ago also noted that Lastpass’ breach situation is a big deal. “I worked at Lastpass as an engineer a long time ago. 7+ years ago. My 2 cents on the situation,” the individual said. “This is the worst breach Lastpass has had. By a lot. The key difference is that customer vaults were accessed this time, which are kept in a completely separate database.” What do you think about the Lastpass data breach and the speculation that it is worse than Lastpass is letting on? Let us know what you think about this subject in the comments section below. View the full article

Following FTX co-founder Sam Bankman-Fried’s arrest and the statements from his co-workers Gary Wang and Caroline Ellison, the spotlight has turned on the remaining executives who were part of the team’s inner circle. Another person people are curious about these days is Alameda Research’s ex-co-CEO Sam Trabucco. The 30-year-old executive left Alameda in Aug. 2022, but since Ellison detailed misconduct happened in 2019, it’s assumed that Trabucco knows a thing or two about what happened. Spotlights Remain on a Few More FTX and Alameda Execs Like Sam Trabucco Since Sam Bankman-Fried (SBF) was arrested and then later released on bail, attention has been drawn toward executives who have not come forward, or at least not publicly announced they have been cooperating with law enforcement. So far we know that at least three co-workers have turned on SBF including Caroline Ellison, Gary Wang, and Ryan Salame. Two other execs people are curious about include FTX’s former director of engineering, Nishad Singh, and FTX’s former head of product Ramnik Arora. Caroline Ellison: Stanford degree in Mathematics Sam Trabucco: MIT degree in Mathematics SBF: MIT degree in Physics & Mathematics These degrees are not easy to get. Make no mistake – these criminals didn't "accidentally" forget about $8b. This was methodical, systematic fraud. — FatMan (@FatManTerra) November 18, 2022 Another executive people are scrutinizing is Alameda Research’s ex-co-CEO Sam Trabucco. The former co-CEO left Alameda in Aug. 2022 and amid the FTX chaos he tweeted two interesting tweets. On Nov. 6, he retweeted a tweet written by Caroline Ellison that said: “[Changpeng Zhao] if you’re looking to minimize the market impact on your FTT sales, Alameda will happily buy it all from you today at $22!” Then on Nov. 8, 2022, he tweeted: “Much love to everyone — I’m sure the past few days have been dark for many and I hope the road ahead is brighter.” Since then the ex-Alameda executive has been pretty silent on social media and he hasn’t spoken with the press. It is uncertain whether or not Trabucco is working with the feds. He has not been named in any of the indictments besides the brief mentions of his association with Alameda. Sam Trabucco and Brett Harrison really got out at the right time. — Autism Capital (@AutismCapital) November 9, 2022 People have been speculating on social media and saying that Trabucco is being hunted by law enforcement. “The FBI is now looking for Sam Trabucco, the Former Co-CEO of Alameda Research and Nishad Singh,” the Twitter account called “Wall Street Silver” said. I'm 99% sure Williams is referring to Sam Trabucco (among others) here without naming him when he asks additional co-conspirators to come forward. https://t.co/CWsNnpOrIl — David Parody (@freeAgent85) December 22, 2022 According to New York Post and Bloomberg reports, the 30-year-old executive who helped run Alameda up until last summer revealed a number of things on Twitter. For instance, The Post details that Trabucco explained that Alameda helped people “reduce exposure to Okx,” the centralized crypto exchange. “Not only are we not sellers, we’re HUGE buyers — even though it’s risky — because, in fact, we can take the risk and this trade is GREAT according to what we know — was crucial, and it’s something we’re always aiming to do,” Trabucco said on Twitter. Before working for Alameda, Trabucco was a trader at Susquehanna International Group. Furthermore, Bloomberg’s report details that Trabucco revealed that he “may or may not be banned from 3 casinos” for counting cards at blackjack tables. Ellison’s testimony claims that the fraud between FTX and Alameda took place as early as 2019 and Trabucco joined Alameda the same year. In crypto circles, the Massachusetts Institute of Technology (MIT) graduate is suspected of being aware of financial misconduct if he was the co-CEO for that long and if Ellison’s story is accurate. What do you think about the crypto community wondering where Sam Trabucco is? Let us know what you think about this subject in the comments section below. View the full article

The last 12 months have been tough on digital currency investors as the crypto winter has caused a large sum of value to leave the once-bustling economy. The privacy coin economy, for instance, shed more than 55% against the U.S. dollar as it dropped from $11.7 billion in Jan. 2022 to the current $5.22 billion. Privacy Economy Loses 55% Against the Greenback, European Union Looks to Ban Anonymizing Cryptos Privacy coins are not talked about like they used to be. These days, the hype and discussions surrounding decentralized finance (defi) and non-fungible tokens (NFTs) have eclipsed privacy coin conversations. Furthermore, during the last 12 months, the privacy coin economy has dropped from $11.7 billion to today’s $5.22 billion. Last January, the top two privacy tokens included monero (XMR) and zcash (ZEC). At the time, monero was the largest privacy coin by market cap and still is today. In Jan. 2022, XMR’s price was around $202.97 per unit and it had a market valuation of around $3.66 billion on Jan. 19, 2022. Today, XMR is exchanging hands for around $142.35 per coin and it has an overall market capitalization of around $2.58 billion. Zcash holds the second-largest privacy coin market valuation this year and in January it was around $1.53 billion. At the end of Dec. 2022, ZEC’s market cap is down to $517 million. Jan. 2022’s top five privacy coins by market cap included monero (XMR), zcash (ZEC), secret (SCRT), decred (DCR), and horizen (ZEN). December 2022 stats show the top five privacy coins include monero (XMR), zcash (ZEC), dash (DASH), decred (DCR), and beldex (BDX). XMR’s and ZEC’s market caps equate to roughly $3.1 billion which is 59.4% of the entire privacy coin economy. In Jan. 2022, XMR and ZEC were valued at $5.19 billion and represented only 44.36% of the entire privacy coin economy. Today, the top two privacy coins by market cap have a lot more dominance. Last month it was reported that leaked EU plans could ban privacy coins like XMR, ZEC, and DASH. “The European Union could ban banks and crypto providers from dealing in privacy-enhancing coins such as zcash, monero, and dash under a leaked draft of a money laundering bill obtained by Coindesk,” the publication noted on Nov. 15, 2022. Government policy decisions and proposed guidelines have caused a number of crypto exchanges worldwide to stop listing privacy coins like XMR and ZEC. The lack of listings gives privacy coins a lot less liquidity which makes them more susceptible to price fluctuations. What do you think about privacy coins this year and their market performances during the last 12 months? Let us know what you think about this subject in the comments section below. View the full article

Solana fell to a one-month low to start the weekend, as cryptocurrency markets moved lower ahead of Christmas Day. Today’s drop saw the token fall for a fourth straight session, as market sentiment shifted bearish. Uniswap was also in the red on Saturday, with price falling for a second consecutive day. Solana (SOL) Solana (SOL) was in the red on Saturday, as prices moved lower for a fourth straight session. SOL/USD slipped to a low of $11.24 in today’s session, which comes less than a day after the token was trading at $11.95. Today’s drop saw solana fall to its lowest point since November 22, when price hit a low of $10.94. As can be seen from the chart, Saturday’s decline came as the 14-day relative strength index (RSI) broke out of a floor at 34.00. The index is currently tracking at 31.79, with the next visible point of support at the 29.90 level. Should the RSI continue to head to this point, it is likely that solana will fall below the $10.94 level, which was last seen four weeks ago. Uniswap (UNI) Uniswap (UNI) also moved lower to start the weekend, as the token extended a recent bear run. Following a high of $5.32 on Friday, UNI/USD fell to an intraday low of $5.20 on Christmas Eve. The move led to uniswap landing on its long-term point of support, with bears likely to force a breakout as the weekend matures. As of writing, the token remains marginally above its $5.20 floor, and is currently trading at $5.22. Should this floor be broken, a possible target for sellers will possibly be a floor at $4.95, which was last hit in late November. Register your email here to get weekly price analysis updates sent to your inbox: Do you expect uniswap to fall below $5.00 this weekend? Let us know your thoughts in the comments. View the full article

Bitcoin rose closer to the $17,000 level on Saturday, despite crypto markets mostly consolidating to start the week. The global cryptocurrency market cap is down 0.32% as of writing. Ethereum was also higher earlier in the day, with prices nearing the $1,230 level. Bitcoin Bitcoin (BTC) remained under the $17,000 level to start the weekend, as prices continued to consolidate despite earlier gains. BTC/USD hit a high of $16,905.22 earlier in today’s session, which comes a day after price was at a bottom, at the $16,793.53 mark. The move saw the world’s largest cryptocurrency continue to trade above a key point of support at $16,800. As can be seen from the chart, earlier gains have somewhat eased, as the 14-day relative strength index (RSI) failed to break above a ceiling at 48.00. The index is currently trading at 46.72, with bulls still attempting to push past the aforementioned point of resistance. On the other hand, should price strength decline below a floor at 45.00, bitcoin will likely move towards the $16,000 level. Ethereum In addition to BTC, ethereum (ETH) also consolidated to start the weekend, with prices edging closer to a key resistance level. Following a low of $1,216.34 on Friday, ETH/USD raced to a peak of $1,227.00 earlier in today’s session. As a result of today’s move, ethereum once again attempted to break out of a key ceiling at the $1,230 level. Looking at the chart, the breakout did not occur, mainly due to the RSI also remaining below a ceiling of its own at 47.50. As of writing, the index is tracking at 47.12, with momentum appearing to be bearish as a result of the direction of moving averages (MA). The 10-day (red) MA extended its downward cross with its 25-day (blue) counterpart, which typically is a sign of price declines. Register your email here to get weekly price analysis updates sent to your inbox: Could market sentiment change ahead of Christmas Day? Leave your thoughts in the comments below. View the full article

Bank of England Deputy Governor Sir Jon Cunliffe has revealed that the British central bank is planning to step up its efforts to regulate cryptocurrency trading with new laws. “We should think about regulation before it becomes integrated with the financial system and before we could have a potential systemic problem,” he stressed. Sir Jon Cunliffe on Crypto Regulation Sir Jon Cunliffe, Bank of England (BOE)’s deputy governor for financial stability, talked about cryptocurrency in an interview with Sky News Thursday. He explained that the British central bank plans to step up its effort with new laws to regulate crypto trading following the collapse of crypto exchange FTX. “Trading of crypto assets was not big enough to destabilize the financial system, but it was starting to develop links,” Cunliffe said, elaborating: We had banks and investment funds and others who wanted to invest in it and I think we should think about regulation before it becomes integrated with the financial system and before we could have a potential systemic problem. The Bank of England deputy governor noted that trading in crypto should be regulated rather than banned. While cautioning that many coins were little more than a “gamble” and most were “without intrinsic value,” he admitted: “There are people who want to engage in that activity.” The BOE official clarified: “Provided they do that with their eyes wide open in a place that is safe, is not full of money laundering or illicit finance … then we should provide them at least with the opportunity to do that.” Cunliffe opined: If we’re talking about creating the regulation in which people can see whether they can develop services that have benefits using those technologies to the real economy … then I think there’s a real benefit for the U.K. However, he cautioned: “If we’re talking about using these crypto technologies to create, basically, crypto assets that have nothing behind them … I don’t think there’s ever going to be a sustainable financial activity around that.” In November, Cunliffe said the collapse of crypto exchange FTX highlighted the urgent need for tighter crypto regulation. The Bank of England executive regularly warned about the danger of cryptocurrency. In July, he said crypto is “prone to collapse.” He also expects to see tough times ahead for the industry as the Federal Reserve continues to tighten financial conditions. What do you think about Sir Jon Cunliffe’s statements on crypto and its regulation? Let us know in the comments section below. View the full article

Tesla CEO and Twitter chief Elon Musk says the Federal Reserve’s recent rate hikes “might go down in history as most damaging ever.” The billionaire has urged the Fed to cut interest rates immediately, emphasizing that the U.S. central bank is “massively amplifying the probability of a severe recession.” Elon Musk on Fed Rate Hikes Tesla, Spacex, and Twitter boss Elon Musk warned Thursday about the damaging impact of the Federal Reserve rapidly raising interest rates. His warning was in reply to a tweet by former investment manager Genevieve Roch-Decter stating that “the Fed has never raised rates faster” than this year. Musk wrote: At the risk of being repetitive, these Fed rate increases might go down in history as most damaging ever. Roch-Decter also included a chart with her tweet showing that the Fed has hiked interest rates further and faster this year than at any other time in modern history. Many people agreed with Musk. “I agree, Elon. The mortgage industry is taking a blood bath. Good professionals like me (marketing) laid off. Applications at historic lows. This is a disaster,” one Twitter user wrote. Another described: “This is what happens when the government artificially infuses $3.5 trillion into the U.S. economy. The Fed makes up for it in damaging interest hikes … It’s going to get worse.” Musk also blamed the Federal Reserve for Tesla’s loss of market value. Investment advisor Ross Gerber tweeted last week: “Elon has now erased $600 billion of Tesla wealth and still nothing from the Tesla BOD [board of directors]. It’s wholly unacceptable.” Musk replied: Tesla is executing better than ever. We don’t control the Federal Reserve. That is the real problem here. The billionaire has warned several times about the risks of the Federal Reserve hiking interest rates. Earlier this month, he cautioned that the recession will be greatly amplified if the Fed raised interest rates again. The central bank then raised rates by 50 basis points following four consecutive 75-basis-point hikes. Last month, Musk warned that the “trend is concerning,” emphasizing that the Fed “needs to cut interest rates immediately.” He added: “They are massively amplifying the probability of a severe recession.” The billionaire also previously said that he believes the recession will last until the spring of 2024. What do you think about the warning by Tesla CEO Elon Musk about the Fed’s rate hikes? Let us know in the comments section below. View the full article

The chairman of the U.S. Securities and Exchange Commission (SEC), Gary Gensler, has revealed that the regulator will use all available tools to bring crypto platforms into compliance with its rules. In addition, the SEC chief said: “Proof of reserves is neither a full accounting of the assets and liability of a company, nor does it satisfy segregation of customer funds under the securities laws.” SEC Chair Gensler on Crypto Regulation SEC Chairman Gary Gensler stressed the importance of bringing crypto platforms into compliance after the securities regulator filed charges against former Alameda Research CEO Caroline Ellison and former FTX executive Gary Wang for their role to defraud equity investors. The SEC boss tweeted Wednesday: Until crypto platforms comply with time-tested securities laws, risks to investors will persist. It remains a priority of the SEC to use all of our available tools to bring the industry into compliance. In an interview with Bloomberg Thursday, Gensler indicated that the SEC is just getting started with its crackdown on crypto firms that are not in compliance with its rules. “The runway is getting shorter” for crypto firms to come in and register with the SEC, Gensler explained, emphasizing: “The casinos in this Wild West are non-compliant intermediaries.” The SEC chief also commented on proof-of-reserves (POR) reports used by a number of crypto exchanges, including Binance, to prove that they have enough funds to fulfill customer withdrawals. Noting that this practice falls short of the disclosures needed to protect investors, Gensler explained: Proof of reserves is neither a full accounting of the assets and liability of a company, nor does it satisfy segregation of customer funds under the securities laws. Gensler suggested that crypto companies should “give customers confidence that their crypto is really there” by “coming into compliance with time-tested custody, segregation of customer funds rules and accounting rules.” The SEC is focused on crypto firms’ financial record keeping. The securities watchdog and its chairman have been heavily criticized by some for their enforcement-centric approach to regulating the crypto industry. They have also been scrutinized in the collapse of crypto exchange FTX since Gensler and SEC staff met with former FTX CEO Sam Bankman-Fried (SBF) several times. Congressman Tom Emmer (R-MN) tweeted Thursday: “Gary Gensler and the SEC had more meetings with SBF and FTX/IEX than anyone else in crypto, allegedly to craft a special regulatory framework designed to benefit FTX alone.” The lawmaker further wrote: Making backroom regulatory deals with bad actors is not a tool in the SEC’s toolbox. Congressman Emmer said last month that the FTX fallout is not a crypto failure but the failure of the SEC and Chair Gensler. The lawmaker from Minnesota has called on Gensler to testify before Congress about the cost of his regulatory failures. Last week, the SEC chief stressed the importance of regulating crypto issuers and intermediaries. He previously said that most crypto tokens are securities but the crypto field is significantly non-compliant. The securities regulator recently published its strategic plan for the next four years and crypto is among its top priorities. Gensler said in November that the SEC’s Enforcement Division remains focused on crypto. What do you think about the statements by SEC Chair Gary Gensler on crypto regulation? Let us know in the comments section below. View the full article

On Dec. 23, 2022, Matthew Russell Lee from the Inner City Press published the recently unsealed guilty plea transcript of Caroline Ellison, Alameda Research’s former CEO. In her statements, Ellison describes that she was the co-CEO and CEO of Alameda, and under those roles, she reported directly to the former FTX CEO Sam Bankman-Fried (SBF). The ex-Alameda CEO’s testimony details that she was fully aware from 2019 to 2022, that Alameda Research had access to a special borrowing facility that allowed the company to maintain an unlimited line of credit with zero collateral. The ‘borrowing facility,’ according to Ellison, was FTX’s customer funds. Caroline Ellison Details FTX’s Misconduct With Alameda and the Co-Mingling of Customer Funds Started From the Very Beginning Following the unsealing of Caroline Ellison’s plea deal, Inner City Press reporter Matthew Russell Lee published a tweet storm that featured screenshots of Ellison’s unsealed guilty plea transcript. Russell Lee said that the plea arraignment was “held in secret, and not docketed until today, once Bankman-Fried was freed on $250 [million] bond.” If Ellison’s testimony is true, the document highlights a number of infractions both FTX and Alameda executives partook in since 2019. “From 2019 to 2022, I was aware that Alameda was provided access to a borrowing facility on FTX.com, the cryptocurrency exchange run by Mr. Bankman-Fried. I understood that executives had implemented special settings on Alameda’s FTX.com account that permitted Alameda to maintain negative balances in fiat currencies and cryptocurrencies,” Ellison’s testimony details. “In practical terms, this arrangement permitted Alameda access to an unlimited line of credit without being required to post collateral, without having to pay interest on negative balances, and without being subject to margin calls or FTX.com’s liquidation protocols,” the ex-Alameda CEO added. Ellison’s account of the situation continued: I understood that if Alameda had significant negative balances in a particular currency, it meant that Alameda was borrowing funds that customers had deposited on the exchange. Ellison Understood FTX Customer Funds Were Used to ‘Finance FTX’s Loans to Alameda,’ Ex-Alameda CEO Is ‘Truly Sorry’ for What She Did Ellison was aware that many of Alameda’s investments were illiquid, and she said she fully agreed to borrow funds from FTX’s coffers. “While I was co-CEO and then CEO, I understood that Alameda had numerous large illiquid investments and had lent a lot of money to Mr. Bankman-Fried and other FTX executives,” Ellison’s testimony explains. “I also understood that Alameda had financed the investments with short-term and open-term loans worth several billion dollars from external lenders in the cryptocurrency industry. In or around June 2022, I agreed to borrow several billion dollars from FTX to repay those loans. I understood that FTX would need to use customer funds to finance its loans to Alameda.” Ellison further added: I also understood that many FTX customers invested in crypto derivatives and that most FTX customers did not expect that FTX would lend out their digital asset holdings and fiat currency deposits to Alameda in this fashion. Furthermore, Ellison said in or around July 2022 to October 2022, she agreed with SBF to “provide materially misleading financial statements to Alameda’s lenders.” Ellison said that the team served lenders botched quarterly reports that obfuscated “the extent of Alameda’s borrowing.” The ex-Alameda CEO also elaborated that she was aware that FTX’s equity investors were kept in the dark about the nature of FTX’s and Alameda’s co-mingled relationship. “I agreed with Mr. Bankman-Fried and others not to publicly disclose the true nature of the relationship between Alameda and FTX, including Alameda’s credit arrangement. I also understood that Mr. Bankman-Fried and others concealed the source and nature of those funds,” Ellison’s account of the situation details. According to SBF’s alleged ex-girlfriend, Ellison said she was very sorry for what she has done. At the end of her transcript, she apologizes a great deal for what she did. The testimony from Ellison is very different than that of SBF’s stories, when he managed to do a media tour for a month before he was arrested and he apologized a great deal. While SBF apologized a lot, he never admitted to doing any wrongdoing in terms of fraud or committing any financial misconduct. SBF further said that he did not run Alameda Research, and stressed that he had little knowledge of the trading firm’s business dealings. Speaking virtually at the New York Times’ Dealbook Summit with Andrew Ross Sorkin, SBF insisted he “didn’t knowingly co-mingle funds.” As far as Alameda Research was concerned, SBF said: I didn’t know the size of their position. I wasn’t running Alameda — I didn’t know exactly what was going on. Ellison’s unsealed testimony completely contradicts SBF’s position during his media tour, and not only does she apologize, she explains a number of misdeeds she personally committed. “I am truly sorry for what I did,” Ellison concluded. “I knew that it was wrong. I want to apologize for my actions to the affected customers of FTX, lenders to Alameda, and investors in FTX. Since FTX and Alameda collapsed in November 2022, I have worked hard to assist with the recovery of assets for the benefit of customers and to cooperate with the government’s investigation. I am here today to accept my responsibility for my actions by pleading guilty.” When the judge asked Ellison if she knew what she did was illegal, she replied “yes.” Billionaire Bill Ackman’s Recent FTX Twitter Thread Slammed Interestingly, billionaire Bill Ackman tweeted about SBF and cohorts the day prior on Dec. 22, and decided to describe the case as a business “failure.” “One that is “so frightening that they can’t acknowledge it, and they do stupid sh-t to avoid the embarrassment and the come down,” Ackman wrote. Ackman’s most recent FTX Twitter thread wasn’t received well by a great majority of commenters who told Ackman that SBF and FTX are being convicted of starting the fraud from the very beginning. Ellison’s testimony even notes that her special Alameda treatment and the co-mingling of customer funds began in 2019. Bitcoin proponent Nic Carter, for instance, replied to Ackman and said: “They were engaging in fraud from day 1.” Coinshares executive Meltem Demirors also responded to Ackman’s tweets and remarked: “They were depositing FTX customer funds directly into Alameda’s bank account from day 1.” Ackman was reminded on several occasions in the thread that maybe he should read the SEC charges, before claiming that FTX was a “legitimate profitable exchange started by an MIT grad with backing from top VCs at a massive valuation.” What do you think about Caroline Ellison’s testimony and her side of the story? Let us know what you think about this subject in the comments section below. View the full article

According to the U.S. Securities and Exchange Commission’s Paul Munter, the agency’s acting chief accountant, the U.S. regulator is monitoring proof-of-reserves (POR) more closely. “We’re warning investors to be very wary of some of the claims that are being made by crypto companies,” Munter explained to the Wall Street Journal (WSJ) on Dec. 22. SEC Official Warns Investors Should Be ‘Wary’ of Proof-of-Reserve Audits and Crypto Exchange Claims U.S. regulators, and more specifically the Securities and Exchange Commission (SEC), are looking more closely at proof-of-reserves (POR) these days following the collapse of FTX. Speaking with the WSJ on Thursday, SEC’s acting chief accountant, Paul Munter, explained that investors should not put much faith in POR audits and claims. SEC is concerned that investors “may be getting a false sense of reassurance from the firms’ reports,” the WSJ report detailed. “We’re warning investors to be very wary of some of the claims that are being made by crypto companies,” Munter explained. “Investors should not place too much confidence in the mere fact a company says it’s got a proof-of-reserves from an audit firm,” the SEC accountant stressed. Munter continued: [A POR audit] is not enough information for an investor to assess whether the company has sufficient assets to cover its liabilities. The commentary from Munter follows the POR concept gaining traction among crypto exchanges since FTX collapsed. Companies like Okx, Binance, Crypto.com, Huobi, and others have released POR audits but some were met with controversy. Furthermore, on Dec. 16, Bitcoin.com News reported on the accounting agency Mazars Group after it revealed it would no longer provide crypto exchange audits. Binance’s POR audit completed by Mazars was also removed from the web. “We are increasing our understanding of what’s going on in the marketplace,” Munter told the WSJ. “If we find fact patterns that we think are troublesome, we will consider a referral to the division of enforcement.” Additionally, after Mazars Group said it would not offer POR audits to crypto exchanges, a spokesperson for the auditing firm BDO said that week it is contemplating which kinds of customers to take on. University of Texas professor Jeffrey Johanns believes auditing firms are doing the right thing by being reluctant to offer crypto firms auditing services. “The Big Four firms have…rightly decided the risks [of auditing crypto companies] are extremely high,” Johanns told the WSJ. What do you think about the SEC’s acting chief accountant and his comments about POR audits? Let us know what you think about this subject in the comments section below. View the full article

Court filings show that debtors from FTX Trading Ltd. and Alameda Research want 56 million shares of Robinhood stock frozen after multiple creditors are seeking access to the funds, and also Sam Bankman-Fried (SBF). Court Filing Wants to ‘Enforce an Automatic Stay’ Against Claims Over FTX’s 56 Million Robinhood Shares On Dec. 22, 2022, court documents show that debtors from FTX want to freeze 56 million Robinhood shares owned by a subsidiary crafted by SBF called Emergent Fidelity Technologies. The debtors from FTX and Alameda have said that multiple entities are seeking to claim these assets, including the now-defunct crypto lending firm Blockfi. FTX wants the court to enforce an automatic stay against claims for the 56 million Robinhood shares worth roughly $450 million. The Class A common stock Robinhood shares are currently custodied at ED&F Man Capital Markets Inc. (EDFM) in New York City. EDFM does not dispute the ownership of the $450 million shares of Robinhood stock. The court filings say that not only is BlockFi Inc. attempting to gain access to the shares, but Yonathan Ben Shimon and SBF are also looking to obtain the stocks. FTX insists to the court that the debtors have “at least a ‘colorable’ claim to ownership of the Robinhood Shares.” “The fact that multiple prepetition creditors of different Debtors and Mr. Bankman-Fried are all seeking to obtain possession of the Robinhood Shares demonstrates that the asset should be frozen until this Court can resolve the issues in a manner that is fair to all creditors of the Debtors,” the FTX court filing submitted on Thursday evening details. “The full evidentiary record, once completely developed, will show the Robinhood Shares are conclusively estate property,” FTX added. The filing shows that Alameda’s ex-CEO Caroline Ellison allegedly almost sold the Robinhood shares in an over-the-counter (OTC) deal. Further, Ellison later pledged the shares to Blockfi in order to commence a deal which was an attempt to save the troubled crypto lender from defaulting and filing for bankruptcy. The court document shows that Blockfi’s CEO Zac Prince “agreed to Ms. Ellison’s offer to pledge the Robinhood Shares and certain other Alameda assets as security for Alameda’s debts.” What do you think about the court filings that show FTX wants to freeze $450 million worth of Robinhood shares? Let us know what you think about this subject in the comments section below. View the full article

PRESS RELEASE. Victoria, Seychelles (December 23 2022) – Leading crypto exchange, Bitget, announces the conclusion of its biannual trading tournament, King’s Cup Global Invitation (“KCGI”): Football Edition with record-breaking participation. Hosted from November 21 to December 19, a total of 32,174 participants joined the tournament in a team battle, individual competition and invitational competition. The tournament recorded the highest participation this time since the event debuted, and all the winners took home a rewards pool of more than half a million USDT combined. The KCGI tournament is a biannual futures trading tournament hosted by Bitget, and this season’s tournament was given a football theme because of the World Cup and the company’s partnership with the legendary Argentinian football star, Leo Messi. The company prepared various football-related prizes and activities to engage users in the World Cup football craze, including football fan tokens, Messi autographed jerseys, trophies, predicted World Cup winner games and giveaways. Players were given the option to participate in KCGI in three competition modes. Here are the final results: Team Battle: the top 5 winning teams generated a total of more than 1,450,000 USDT profit with a 1,731.24% P/L ratio in the competition period Invitational Competition: the top 5 leaders of the Invitational Competition invited 789 members altogether Individual competition: the top 5 users in the Individual Competition earned close to 230,000 football points by completing various daily tasks on the platform, including completing KYC, registration, inviting friends, etc. All of the winning parties shared a total prize pool of 565,000 USDT. Gracy Chen, Managing Director of Bitget, comments, “KCGI is one of our major spotlights throughout the year. This time, the tournament is hosted during the FIFA World Cup Qatar 2022, where Argentina and our partner Leo Messi are crowned winners. Congratulations to all the winners in KCGI, Messi and Argentina team! We are glad to have the opportunity to engage Bitget users with the World Cup and stand with Messi throughout his journey to the Championship.” “In the midst of a bear market and slow market sentiment, Bitget is also investing efforts into perfecting our product offerings. In line with the sense of community we all felt during the World Cup and KCGI, we have rolled out a few products recently to upgrade users’ social trading experience, including Shark Fin, Spot margin trading, DCA trading strategy, and so on, as well as announced measures to protect our users’ assets with the Bitget Protection Fund and our fully transparent Merkle tree Proof of Reserves information. We do these all to improve our internal strength and security while providing maximum transparency, hoping to rebuild the industry and set a good example.” About KCGI The King’s Cup Global Invitation (KCGI) is a biannual global crypto futures trading competition hosted by Bitget. KCGI 2022: Football Edition ran from November 21 to December 19, 2022, and consisted of three competing formats: Team Battle, Individual Competition, and Invitational Competition. Debuted in 2021, the appeal of KCGI has drawn overwhelming responses as the last three competitions recorded over 44,000 participants worldwide, and stay tuned for the next tournament to be scheduled in mid-2023. About Bitget Bitget, established in 2018, is the world’s leading cryptocurrency exchange with innovative products and social trading services as its key features, currently serving over 8 million users in more than 100 countries worldwide. The exchange is committed to providing users with a secure, one-stop trading solution. It aims to increase crypto adoption through collaborations with credible partners, including legendary Argentinian footballer Leo Messi, the leading Italian football team Juventus, and official eSports events organizer PGL. To learn more about Bitget, please visit https://www.bitget.com. 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

Cardano climbed for a second consecutive session on Dec. 23, as the token surged to its highest point since Monday. Overall, crypto prices were marginally higher as of writing, with the global market cap currently up 0.49%. Xrp, formerly known as ripple, also rose, with prices nearing a key resistance level. Cardano (ADA) Cardano (ADA) was in the green on Friday, as prices surged for a second straight session. ADA/USD raced to a high of $0.2623 in today’s session, which comes less than a day after the token was trading at $0.2482. The move saw the token climb towards a resistance level of $0.2685, and it is currently trading at its highest point since Monday. As can be seen from the chart, Friday’s gains come as the 14-day relative strength index (RSI) has moved closer to a ceiling of its own at 32.00. The index is currently tracking at 30.18, with the price slipping from earlier highs, and trading at $0.2586 as of writing. In order for bulls to hit the ceiling at the $0.2685 mark, this upcoming ceiling of 32.00 on the RSI must first be broken. XRP XRP, formerly ripple, also rose on Friday, as the token extended a recent bull run, in hopes of breaking out of a key resistance point. Following a low of $0.3424, XRP/USD raced to an intraday peak of $0.3531 earlier in today’s session. Today’s high is the strongest point that the token has traded at since Sunday, when it was at a top of $0.3555. Despite this recent climb in price, sentiment in XRP still appears to be bearish, with the 10-day (red) moving average (MA) extending its downwards cross with the 25-day (blue) MA. In addition to this, the 14-day RSI is currently tracking at 39.65, which is close to a ceiling of 41.00. If bulls are unable to force a breakout of this level, we will likely see XRP once again move lower. Register your email here to get weekly price analysis updates sent to your inbox: Do you expect xrp to break its current resistance of $0.3565 this weekend? Let us know your thoughts in the comments. View the full article

As the new year approaches, more than a dozen bitcoin mining pools still dedicate a total of 238 exahash per second (EH/s) toward the Bitcoin blockchain in order to secure the network and reap mining rewards. Statistics indicate that the mining pool Foundry USA discovered the most block rewards this year, as the operation found 11,779 bitcoin blocks out of the 53,240 rewards mined during the last 365 days. More Than 53K Bitcoin Block Rewards Discovered in 2022, Top Five Mining Pools Mined a Total of 39,545 Blocks On Thursday, Dec. 22, 2022, metrics show that 53,240 blocks were mined this year and a total of 23 known mining pools discovered the block subsidies. Presently, bitcoin’s price and high mining difficulty rating are making it awfully hard for miners to profit at the end of the year. Data indicates that the average BTC mining cost according to metrics from macromicro.me is around $18,816 per unit, while BTC’s average spot market value in U.S. dollars is $16,800 per unit. The discrepancies between the cost of BTC production and BTC’s spot market value have been a tough reality for miners since mid-June 2022. Prior to mid-June 2022, BTC’s spot market value was well above the average cost of production since mid-Nov. 2020. 12-month metrics show that in 2022, Foundry USA obtained the most blocks with 11,779 recorded. Three of those blocks were empty blocks, and Foundry’s block discovery indicates that it represented 22.12% of the network’s hashrate this year. 2022 was a good year for Antpool in terms of finding BTC blocks over the last 12 months. Antpool found 8,560 block rewards during the past 365 days and 22 of them were empty blocks. Antpool’s 12-month metrics show the pool’s hashrate this year represented 16.08% of the total network. F2pool managed to hold down the third largest mining pool position in 2022 with 14.72% of the year’s total hashrate. F2pool gained a total of 7,837 out of the 53,240 blocks found and 28 were empty blocks. Binance Pool found 6,175 BTC blocks in 2022 which equates to 11.60% of the year’s total hashrate. Viabtc clocked in at 9.76% of the hashrate as the pool attained 5,194 of this year’s blocks. Calculations show that the top five mining pools mined a total of 39,545 of this year’s 53,240 blocks discovered, or 74.28% of the total hashrate. Other notable bitcoin mining pools in the top ten standings in 2022 include Poolin, Braiins Pool, Btc.com, Luxor, and SBI Crypto, respectively. Those five pools accounted for 22.62% of the total hashrate over the last 365 days. Unknown hashrate, otherwise known as stealth miners, accounted for 1.45% of the hashrate during the last 12 months, discovering approximately 771 bitcoin block rewards. On Dec. 23, 2021, Bitcoin’s total hashrate was around 184 EH/s or 184,000 petahash per second (PH/s). Roughly around that time, within a three-day radius, Foundry had around 30.93 EH/s and today the pool has around 75 EH/s. F2pool had around 27.88 EH/s and now has around 29.20 EH/s, while Antpool had 25.59 EH/s compared to today’s 48.09 EH/s. Besides the increase of around 29.35% from a year ago today in overall hashrate from 184 EH/s to 238 EH/s, the Bitcoin network also tapped a lifetime high in terms of total hashrate. Statistics show that on Nov. 12, 2022, at block height 762,845, the total hashrate tapped a high of around 347.16 EH/s. The 347.16 EH/s lifetime record equates to 0.347 zettahash per second (ZH/s). It also became a lot more difficult to find a bitcoin block this year, as the mining difficulty jumped from 24.37 trillion to today’s 35.36 trillion. The mining difficulty rating also tapped an all-time high this year at 36.84 trillion after block height 760,032 and the two weeks that followed. The network recorded these feats despite the lower prices during the last 12 months compared to last year’s bitcoin bull run. 2022 saw a number of newly introduced bitcoin mining rigs that packed a whole lot more hashpower per watt. Bitmain released the Antminer S19 XP Hyd., which boasts around 255 terahash per second (TH/s). The company also released the Antminer S19 XP with 140 TH/s. Canaan released the Avalon A1366 bitcoin mining device, which produces around 130 TH/s. There’s also the Microbt Whatsminer M50S bitcoin mining rig that produces around 126 TH/s. What do you think about the last 12 months of bitcoin mining? Let us know what you think about this subject in the comments section below. View the full article

Ethereum edged closer to a key resistance level of $1,230 on Dec. 23, as markets continued to react to better than expected U.S. GDP data. Gross domestic product in the United States was revised higher to 3.2%, better than the 2.9% expected. Bitcoin mostly consolidated in today’s session, with prices trading near the $16,800 mark. Bitcoin Bitcoin (BTC) was once again in consolidation on Friday, as markets continued to react to the latest U.S. Q3 GDP figures. Following a low of $16,592.41 on Thursday, BTC/USD was marginally higher, with prices rising to a peak of $16,880.87 in today’s session. The surge in price pushed BTC above a key resistance point of $16,800, as bulls once again attempted to recapture the $17,000 mark. As can be seen from the chart, recent price uncertainty comes as the 14-day relative strength index (RSI) remains close to a floor at 45.00. Sentiment also seems uncertain following a recent crossover between the red 10-day moving average, and its 25-day (blue) counterpart. If this downward trend continues, we could see BTC trading near $16,000 during the Christmas weekend. Ethereum Ethereum (ETH) was marginally higher to end the week, as prices moved closer to a key resistance level earlier today. ETH/USD raced to an intraday peak of $1,224.21 in Friday’s session, less than 24 hours after hovering at $1,187.13. Today’s move sees ETH bulls once again try to break out of the long-term resistance level of $1,230. Looking at the chart, the 14-day RSI is now rallying above a resistance point at 47.00, and tracking at 47.92, with the next visible ceiling at 52.00 In order for bulls to continue to push ethereum higher, price strength will likely need to surge towards this upcoming resistance of 52.00. Register your email here to get weekly price analysis updates sent to your inbox: Do you expect ethereum to be above $1,230 before Christmas? Leave your thoughts in the comments below. View the full article

Barely a month after announcing the restricting of cash withdrawals to under $50 per week, the Central Bank of Nigeria said on Dec. 21 that individuals will be able to withdraw an equivalent of $1,120 per week starting on Jan. 9, 2023. The central bank said individuals and corporate organizations withdrawing amounts exceeding the new limits would be required to pay processing fees of 3% and 5% respectively. CBN’s Digital Currency Push The Central Bank of Nigeria (CBN) has said that starting on Jan. 9, 2023, individual banking clients will be able to withdraw an equivalent of $1,120 (N500,000) per week, up from the under $50 cap introduced on Dec. 6. For corporate organizations, the CBN said the cash withdrawal would be capped at $11,200, a nearly tenfold increase from the previously announced limit. In a new circular to heads of financial institutions, the CBN, which is pushing for the broader adoption of its digital currency, said its decision to revise the cash withdrawal limits was “based on feedback received from stakeholders.” The bank added that while it pushes for a cashless society it remains mindful of the role played by cash, particularly in underserved communities. “The CBN recognizes the vital role that cash plays in supporting underserved and rural communities and will ensure an inclusive approach as it implements the transition to a more cash-less society,” the central bank statement said. Processing Fees for Withdrawals Exceeding New Limits As previously reported by Bitcoin.com News, the Nigerian central bank’s decision to restrict cash withdrawals came as it prepared to unveil new banknotes. The new banknotes, which were subsequently introduced into circulation on Dec. 15, are part of an attempt by the CBN to promote the use and adoption of the e-naira. Meanwhile, in the latest circular, the CBN said individuals and corporate organizations that wish to withdraw amounts exceeding new limits would be charged processing fees of 3% and 5%, respectively. In addition, such withdrawals will be processed after the client furnishes the bank with several documents that include a letter from the CEO of a financial institution authorizing the withdrawal. Register your email here to get a weekly update on African news sent to your inbox: What are your thoughts on this story? Let us know what you think in the comments section below. View the full article

PRESS RELEASE. Sheikh Hamad Rakadh Salem Hamad Alameri, a well-known Sovereign Wealth Fund (SWF) member of the Royal Family in Abu Dhabi, United Arab Emirates, has officially become a MaskEX shareholder following the signing of a Memorandum of Understanding (MOU) to develop a smart city in Dubai, United Arab Emirates. Sheikh Hamad Rakadh Salem Hamad Alameri is a big supporter of Abu Dhabi’s 2030 Vision by directly contributing to the emirate’s social and human development and creating a sustainable, knowledge-based nation. MaskEX is a Canadian company. It has successfully fulfilled the requirements of the MSB compliance program and is now fully prepared to comply with the regulations in the SCA and VARA compliance program in Dubai, United Arab Emirates. MaskEX has developed a payment system based on the principle of “Your Wallet, Your Way”, Which aims to make life easier for residents by providing a convenient and secure way to make payments and manage financial transactions. In addition, the system also uses advanced security measures to protect users’ personal and financial information from fraud and identity theft. The company has achieved incredible feats and is building innovative technologies for developing smart cities. The partnership between MaskEX and the Sheikh was initiated because of their shared vision of a smart city. In the past year, the company got much attention from traders and investors in the UAE market, which led to extensive research and the idea of developing a new concept of a smart city in the UAE. MaskEX will use its innovative technology to improve the quality and access to services and increase efficiency and sustainability. In addition, MaskEX is now collaborating with a BIG 4 audit firm to protect the ecosystem and blockchain infrastructure. After completing its strategy and implementation for the UAE market, MaskEX plans to expand to the MENA region to serve people and help them adapt to smart cities. Due to the MENA region’s popularity as a tourism destination and its diverse community of expatriates, MaskEX will be able to attract investors from different industries. To fully realize the potential of smart cities, MaskEX will work with lifestyle retailers. The company has already signed hundreds of memorandums of understanding with merchants in various countries, enabling customers to pay for products, services, and even living expenses with a simple scan of their wallet. When asked about the concept of a smart city, Eric Yang, CEO of MaskEX, said, “The smart city concept covers many sectors. Starting from healthcare, manufacturing, and many more. The most important is the new concept with our solutions. We will be contributing largely to the realization of this vision.” With the support of MaskEX’s new shareholder, Sheikh Hamad Bin Rakad Bin Salem Bin Rakad, MaskEX expects to create a unique environment in the UAE market to attract more FDI in the region and create innovative solutions on the market. Consequently, MaskEX will move its headquarters from Canada to Dubai, United Arab Emirates. The MaskEX app now provides users access to various digital industry services, which can be accessed through the app. Community & Social Media: Website |Twitter| Telegram| LinkedIn Contact Details: MaskEX Global Tata Tcholaria Marketing & PR Email: tamar.tcholaria@mask.net 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

President Jair Bolsonaro has approved law 14.478, which regulates cryptocurrency-related operations and virtual asset service providers (VASPs) in Brazil. The document, approved on the last day of the period allowed, will begin to be applied 180 days after its sanction. This will give all parties a period to adapt to compliance. Cryptocurrency Law Finally Sanctioned in Brazil Brazil has, at last, approved its cryptocurrency law in the nick of time. After having completed almost the whole period for taking action, President Jair Bolsonaro signed bill 14.478 into law on Dec. 21, when it was published in the Official Journal of the Union, the government publication of the country. With Bolsonaro’s sanction, exchanges and other organizations subject to the law will have 180 days to prepare to comply with the new directives. However, if Bolsonaro had not sanctioned the law, the project would have returned to Congress, with the opportunity of being sanctioned by the Senate and the Deputy Chamber without presidential support. This would have been another way of approving the legislation before President-elect Luis Inacio Lula Da Silva assumes his position in January. Reactions on the Approval The reactions to the approval of the law have been mostly positive, with people in the industry considering this as the first step for regulating the status of cryptocurrency and cryptocurrency trading in Brazil. However, due to different views on the subject, the project had to be approved leaving out several controversial elements, like fund segregation and tax discounts for green mining operations. This has caused some to consider the law a stepping stone, given that there will have to be subsequent laws in order to complement the foundation the current cryptocurrency law offers. On Nov. 29, Isac Costa, a partner of the local law firm Warde Advogados, stated: Perhaps the law will take up to two years to have any practical effect, which leads me to believe that its approval is a merely symbolic act. Other global companies have a different view of the subject, considering this as an important step to increase the usage of bitcoin and other cryptocurrencies as payment methods in the country. On this, Alex Adelman, CEO of Lolli, a bitcoin rewards app, stated: Brazil’s move to regulate bitcoin as a payment mechanism sets the stage for greater bitcoin adoption in the country and Latin America at large. What do you think about the sanction of the cryptocurrency law in Brazil? Tell us in the comment section below. View the full article

Authorities in Italy and Albania have hit a fraud scheme enticing victims with promises of low-risk investments in cryptocurrencies. During an operation coordinated by Eurojust, investigators from the two countries searched a dozen locations and seized assets and computer equipment. Fraudsters Contacted Investors From a Call Center in Tirana, Albania Law enforcement officers in Italy and Albania have taken down an online fraud scheme offering fake investment opportunities related to cryptocurrencies. The investigation was carried out with the support of Eurojust, the EU agency responsible for judicial cooperation in Europe. Authorities participating in the joint operation have seized €3 million (almost $3.2 million) worth of assets from the crime group that organized the scam. The total losses resulting from its activities have been estimated at €15 million (over $15.9 million), Eurojust detailed in a press release. The perpetrators operated a call center in the Albanian capital Tirana, from which they contacted victims by phone and over the internet, using virtual phone numbers and VPNs. They convinced customers to open accounts on a dedicated website and make transfers. The scammers would gain their trust by allowing them to secure a quick profit against a small initial investment. After consulting seemingly reputable trading platforms, the victims were contacted by “brokers” who suggested “zero-risk” crypto investments. The members of the fraud scheme also tried to access the online banking of the victims using remote control software. Those who eventually uncovered the deception were contacted by other representatives of the platform who asked them to make additional payments in order to recover the lost funds. The operation was carried out between Dec. 13 and Dec. 15 and arrest warrants were issued against the main suspects, Eurojust revealed without providing details on any detentions. Police searched 13 addresses in Albania and confiscated over 160 electronic devices in both countries, including computers, servers, and video recorders. Italy opened the criminal case with Eurojust in 2020 and the agency facilitated the cooperation between the national authorities involved in the investigation, including by setting up a coordination center for the operation to dismantle the scam network. Under similar circumstances, Ukraine’s Cyberpolice exposed in November a crypto fraud scheme making €200 million a year from fake investments in crypto assets and securities. It had offices and call centers with thousands of employees across Europe. Several European countries, including Albania, supported the investigation against that organization. What are your thoughts on the case of the crypto investment scam involving Italy and Albania? Let us know in the comments section below. View the full article

The province of Buenos Aires in Argentina will begin taxing cryptocurrency mining and possibly staking, in 2023. A new proposal modifies the tax law to introduce cryptocurrency mining as a taxable activity that will levy 4% on the income calculated via these operations. However, it is still unclear if staking will be taxed. Buenos Aires Adds Cryptocurrency Mining as Taxable Activity The province of Buenos Aires in Argentina approved a project to add cryptocurrency mining as a taxable activity for the next year. A document, presented by the governor of the province, Alex Kicillof, establishes that the activity formally described as “Processing and validation services for crypto assets and/or cryptocurrency transactions (crypto asset and/or cryptocurrency mining)” will require a 4% aliquot over income produced in these operations. The taxes would be paid to the government of the province, and would not be related to any other taxes established by the Argentine national government. The document further clarifies that this tax will apply only when the hardware used to deploy this activity is located in the province’s jurisdiction. This tax regime will begin to be applied in January, but there are still some elements undefined around the implementation of this new tax. Doubts Remain The doubts that analysts have about the application of this tax are related mainly to two areas. The first one has to do with the definition of the equipment that will be taxed. If the approved documents refer only to proof-of-work hardware, only ASIC miners and graphic cards will be considered for these taxes. However, if computers running staking nodes are also considered part of this hardware, staking could also be taxed. Further, Marcos Zocaro, an Argentine accountant, has questions about the price at which the mined (or staked) cryptocurrencies will be taxed. The document states that these crypto assets will be taxed at “official or current value in place,” but fails to define the source of these values that vary from exchange to exchange. It is also unclear if this value will be calculated when the cryptocurrency is mined, or when the tax period is finished. In April, Buenos Aires announced it would allow users to pay taxes with crypto this next year. The city also has a project to use a blockchain ID system and will host Ethereum nodes as part of its digitization and modernization push in 2023. What do you think about the new taxes that Buenos Aires will apply to cryptocurrency mining? Tell us in the comments section below. View the full article

The governor of India’s central bank, the Reserve Bank of India (RBI), has warned that the next financial crisis will come from cryptocurrencies, like bitcoin and ether. The central bank chief added that cryptocurrencies pose “huge inherent risks” to India’s macroeconomic and financial stability. Indian Central Bank Warns About Crypto Causing the Next Financial Crisis Reserve Bank of India (RBI) Governor Shaktikanta Das warned about the danger of cryptocurrency Wednesday. The central banker cautioned: Cryptocurrencies have … huge inherent risks for our macroeconomic and financial stability. The RBI is primarily concerned about cryptocurrencies having no underlying value, Das clarified, emphasizing that crypto is “speculative” and should be banned. Indian authorities refer to any non-government-issued cryptocurrencies, such as bitcoin and ether, as “private” cryptocurrencies. Commenting on crypto trading, Das said: It is a hundred percent speculative activity, and I would still hold the view that it should be prohibited … because, if it is allowed to grow — if you try to regulate it and allow it to grow — please mark my words, the next financial crisis will come from private cryptocurrencies. Meanwhile, India is trying to launch its own central bank digital currency (CBDC). The RBI recently started both wholesale and retail digital rupee pilots. Das explained that CBDCs can expedite international money transfers and reduce the need for logistics, including printing notes. Earlier this month, RBI Deputy Governor T. Rabi Sankar claimed that India’s central bank digital currency can do anything cryptocurrencies can do. The Indian government is also working on the country’s crypto policy. Earlier this week, the government provided Lok Sabha, the lower house of India’s parliament, with an update on its cryptocurrency bill that was scheduled to be discussed in the winter session of parliament last year. Meanwhile, India’s finance minister, Nirmala Sitharaman, has shared that the government plans to discuss crypto regulations with the G20 countries to establish a technology-driven framework for crypto assets. Last month, she and U.S. Treasury Secretary Janet Yellen discussed crypto regulation during the ninth India-U.S. Economic and Financial Partnership meeting. What do you think about the warning by India’s central bank governor about crypto causing the next financial crisis? Let us know in the comments section below. View the full article

A U.S. senator has introduced a bill to “establish the first federal regulatory framework for payment stablecoins.” The lawmaker explained: “This bill will also ensure the Federal Reserve, which has displayed significant skepticism about stablecoins, won’t be in a position to stop this activity.” Stablecoin TRUST Act of 2022 U.S. Senator Pat Toomey (R-PA), ranking member of the Senate Committee on Banking, Housing, and Urban Affairs, introduced the “Stablecoin Transparency of Reserves and Uniform Safe Transactions Act of 2022” on Wednesday. The bill is also known as the “Stablecoin TRUST Act of 2022.” According to the lawmaker, the legislation would “establish the first federal regulatory framework for payment stablecoins and guide Congress towards a path for sensible regulation of cryptocurrencies.” Senator Toomey opined: I hope this framework lays the groundwork for my colleagues to pass legislation next year safeguarding customer funds without inhibiting innovation … This bill will also ensure the Federal Reserve, which has displayed significant skepticism about stablecoins, won’t be in a position to stop this activity. “Stablecoins are an exciting technological development that could transform money and payments. By digitizing the U.S. dollar and making it available on a global, instant, and nearly cost-free basis, stablecoins could be widely used across the physical economy in a variety of ways,” Toomey noted. The lawmaker from Pennsylvania will be retiring from the Senate at the end of his term in January next year. The bill “encourages competition by authorizing several types of regulated entities to issue payment stablecoins,” the Senate Committee on Banking, Housing, and Urban Affairs described, adding that it “enhances financial stability by requiring that all payment stablecoins are fully backed by high-quality liquid assets.” Furthermore, the bill “establishes transparency by subjecting all payment stablecoin issuers to standardized disclosure requirements and attestations by registered accounting firms,” the Senate committee further detailed. Toomey published a draft of this Stablecoin TRUST Act back in April, calling it “the first Senate bill to establish a comprehensive regulatory framework for payment stablecoins.” The senator from Pennsylvania is pro-crypto. Last week, he said cryptocurrency cannot be stopped and that the collapse of crypto Exchange FTX is not an indictment against cryptocurrency. In February, the lawmaker said crypto assets are here to stay and a thoroughly diversified portfolio should have some. What do you think about the Stablecoin TRUST Act? Let us know in the comments section below. View the full article