roadrunner

On Nov. 9, 2022, a day after the news broke regarding Binance planning to purchase the exchange FTX, the crypto economy dropped 11.17% in 24 hours. The crypto economy has slid under $900 billion for the first time since January 2021. The Binance and FTX news has come as a shock to a lot of people, and FTX’s financial troubles caused a number of executives from well known crypto trading platforms to discuss a concept called proof-of-reserves. FTX Frontman Falls From Crypto Savior Status to Needing an Emergency Lifeline People are not too pleased with the situation surrounding FTX, and there’s a lot of unanswered questions right now, and nearly everyone has been searching for answers. While the exchange FTX did not showcase crypto reserve transparency, people did have the perception that FTX was a financially solid company. In fact, during the start of the crypto winter after the Terra blockchain fallout, CEO Sam Bankman-Fried was perceived as a savior. For instance, the FTX chief executive officer spoke with Bloomberg at the end of May, and Bankman-Fried said his firm was a “profitable company,” and he further added that FTX was ready to spend billions on acquisition deals. After the exchange Voyager revealed it was suffering from financial hardships, Bankman-Fried said that FTX would help Voyager customers access liquidity. On July 22, during an interview with CNBC’s “Closing Bell,” Bankman-Fried remarked that FTX was willing to deploy “hundreds of millions beyond what we have thus far” to crypto firms suffering from the downturn. FTX also helped the crypto lender Blockfi, and FTX had an “option to acquire” Blockfi at a price of up to $240 million. In addition to the aforementioned moves FTX made after the Terra fallout, at the end of June 2022, Bankman-Fried warned that more crypto company insolvencies were coming. Sudden Shift in Narrative Jolts Crypto Investors, FTX’s Financial Troubles Spark Proof-of-Reserve Discussions With all that in the backdrop, it seemed as though FTX was financially strong and Bankman-Fried was working to help troubled crypto companies. Then on Nov. 6, 2022, Binance CEO Changpeng Zhao (CZ) explained that Binance would be dumping FTX’s exchange token FTT. The news caused a significant amount of speculation on whether or not FTX was solvent, and the crypto token FTT plummeted in value. Two days later, reports disclosed that onchain data had shown FTX had stopped processing withdrawals. On the same day, it was revealed that Binance has plans to acquire FTX, after the trading platform FTX sought help from Binance. The conversation sparked greater interest in another topic (and rightfully so) called proof-of-reserves, a concept that highlights true transparency by companies sharing proof that the firm has all the reserves it claims to hold. Bitcoin proponent Nic Carter discussed the importance of proof of reserves in an editorial that highlights “the equation is simple (in theory.” “Proof of Reserves + Proof of Liability = Proof of Solvency,” Carter’s article details. After CZ revealed Binance would acquire FTX, the Binance CEO said that Binance would start to provide proof-of-reserves soon. “All crypto exchanges should do Merkle-tree proof-of-reserves,” CZ said. The Binance CEO added: Banks run on fractional reserves. Crypto exchanges should not. Binance will start to do proof-of-reserves soon. Full transparency. Kraken executive Jesse Powell responded to CZ’s tweet and said: “We look forward to your arrival, ser.” In a separate tweet, Powell remarked that consumers should start to demand regular proof-of-reserve audits. Kraken is listed on Nic Carter’s web portal that shows Merkle tree verified audits of specific crypto companies. “Kraken continues to increase the frequency and scope of our audits. It’s not 100% foolproof but the more often you have to prove it, the harder it is to hide a problem,” Powell remarked. While the Crypto influencer Cobie said he found it “difficult to believe FTX is insolvent,” he added, “All exchanges should have transparent proof of reserves, w transparent dashboards linking to on-chain data/wallets.” OKX Reveals Plans to Share Proof-of-Reserves — Coinbase, Cumberland, Circle, Tether, and Deribit Deny Material Exposure to FTX Coinbase CEO Brian Armstrong told the crypto community that Coinbase “doesn’t have any material exposure to FTX or FTT (and no exposure to Alameda).” In a blog post, Coinbase stresses that people can review the company’s publicly filed, audited financial statements that note Coinbase holds “customer assets 1:1.” Coinbase’s blog post insists “there can’t be a ‘run on the bank’ at Coinbase” and the company further added that Coinbase is “in a strong capital position.” The exchange OKX also tweeted about sharing proof-of-reserves (POR), and said it is important for exchanges to share such information. “It’s critical for all major crypto venues to publicly share their auditable Merkle tree proof-of-reserves or POR,” OKX tweeted. “We plan to publish ours in the coming weeks (within 30 days). This is an important step to establish a baseline trust in the industry,” the exchange added. OKX director of financial markets, Lennix Lai, further explained to Bitcoin.com News that the exchange plans to release a POR via Merkel tree. “This type of disclosure is crucial, as it provides much-needed transparency and decentralisation to the industry at this particular point in time. Releasing our proof-of-reserves via Merkel tree is one of the best ways to provide clarity on just how many funds we hold,” Lai detailed. The exchange executive added: The OKX reserves are going to be audited and verified though an advanced cryptographic accounting procedure. This will provide a greater degree of transparency than is offered by traditional financial institutions. Circle Financial CEO Jeremy Allaire told the public that Circle has “no material exposure to FTX and Alameda.” The well known over-the-counter crypto business Cumberland also said it had no exposure to FTX. “While we had virtually no exposure to FTX and our operational controls enabled us to provide deep liquidity to a market in search of it, the exchange consolidation we saw was unfathomable 60 hours ago,” Cumberland tweeted. Tether, the issuer of the stablecoin USDT told the public it had no exposure to FTX. “Tether does not have any exposure to FTX or Alameda,” Tether CTO Paolo Ardoino said. “0. Null. Maybe is time to look elsewhere. Sorry guys. Try again.” Additionally, the crypto options giant, Deribit, told the crypto community that the firm has no exposure to FTX. “Deribit does not have any special terms for Alameda or large & risky positions,” Deribit tweeted. Prior to the slew of crypto executives explaining that their companies had no exposure to FTX, one individual stressed: “If your crypto exchange / bank doesn’t provide proof-of-reserves or deposit insurance, don’t deposit funds.” Currently, according to Nic Carter’s POR web portal, only eight crypto businesses have declared POR with a Merkle tree approach. A great number of well known exchanges are not represented on the POR list. The platforms showcased on the POR list, at least as of today, include companies like Kraken, Nexo, Coinfloor, Gate.io, HBTC, Bitmex, and Ledn. The platforms Revix, Bitbuy, and Shakepay have provided partial validations, the website details. It remains to be seen if a large influx of exchanges will start to offer proof-of-reserves with a Merkle tree approach. But the troubles surrounding FTX have definitely forced a number of exchanges to proclaim that they will offer some sort of POR solution in the near future. What do you think about the proof-of-reserves conversation? Let us know what you think about this subject in the comments section below. View the full article

Bitcoin plunged to a two-year low on Wednesday, as the FTX token sell-off continued to weigh on cryptocurrency markets. After an initial 30% slide, FTX token fell by as much as 80%, as Binance confirmed its intention to absorb the failing exchange. Ethereum was also lower, dropping below $1,200. Bitcoin Bitcoin (BTC) fell to its lowest level in two years on Wednesday, as markets continued to react to the volatility caused by the FTX/Binance affair. The world’s largest cryptocurrency plunged to a low of $17,402.55 earlier in today’s session, less than a day after trading at a high of $20,582.24. This move, which saw prices plummet by as much as 10%, took BTC/USD to its lowest level since November 2020. As can be seen from the chart, the decline intensified when the token fell below its long-term support level of $19,000. In addition to this, the 14-day relative strength index (RSI) has also slipped to a floor of its own, which is near the 29.75 level. BTC has somewhat rebounded from earlier lows, with the token now trading at $17,718.95, with some bulls hoping for a support around $17,900 to be established. Ethereum In addition to BTC, ethereum (ETH) also fell considerably in today’s session, as prices dropped below $1,200 in the process. Following a high of $1,564.55 on Tuesday, ETH/USD was down by as much as 20%, hitting a low of $1,157.23 . This drop saw ETH move to its lowest level since July 14, when the token was trading slightly above $1,000. Like with bitcoin above, the RSI on this ethereum chart is now tracking at 33.00, which is marginally above a floor of 32.50. This reading, which is the weakest reading in the last five months, means that prices are now in oversold territory, which long-term bulls believe means that a bottom has been hit. However, the 10-day (red) moving average continues to fall downward, and should this trend continue, it is likely that ETH will move below $1,000. Register your email here to get weekly price analysis updates sent to your inbox: Have we reached a bottom, or will this week’s sell-off intensify? Leave your thoughts in the comments below. View the full article

Convinced that cryptocurrencies are affecting the tasks performed by monetary authorities around the world, the Dutch central bank has urged for comprehensive international regulations. The call comes after research into the development of crypto assets and policy responses. ‘Proper Regulation Indispensable for Risky Cryptos,’ Dutch Central Bank Insists Bitcoin, tether, and other digital coins are affecting many of the tasks and objectives of central banks and supervisory authorities, according to Steven Maijoor and Olaf Sleijpen, members of the Executive Board of De Nederlandsche Bank (DNB). The two presented a new study, “Crypto-assets: evolution and policy response,” into the rapid development of cryptocurrencies. “While the crypto markets have become somewhat less hyped over the past six months due to global interest rate hikes, investment fraud and cybercrime, cryptos are here to stay, and international financial authorities simply cannot afford to look the other way,” the Dutch central bank said in a post titled “Proper regulation indispensable for risky cryptos.” The DNB is emphasizing the importance of swiftly agreeing on international rules for cryptocurrencies. The bank believes that effective regulation would help to leverage their innovative added value, in terms of potential for storing and transferring value without a central party, while avoiding stifling innovation due to the risks associated with their speculative nature. Unbacked Coins Not Suitable as Money, DNB Thinks Stablecoins Are Better The authors of the research conclude that “clearly, unbacked cryptos like bitcoin are not suitable for use as money” as their prices are too volatile to allow them to function as a means of payment, store of value and unit of account. Besides the lack of underlying assets, they also highlight the great number of digital coins which, as they say, can be confusing when it comes to pricing. Stablecoins, on the other hand, should prevent such volatility as they are backed by euros, U.S. dollars, or other assets, adding to the benefits of decentralized transaction settlement, the DNB elaborates. These crypto assets can contribute to cheaper cross-border payments, for example, but without appropriate regulation their widespread use could also pose risks to financial stability. New EU regulations, such as the Markets in Crypto-Assets Regulation (MiCA) package, differentiate between backed and unbacked cryptocurrencies and introduce requirements for issuers and market participants, the Dutch central bank points out. However, “laws, regulations and supervision will never mitigate all risks, if only because of the international nature of cryptos,” De Nederlandsche Bank notes and vows to contribute to international standards in that area. What do you think about the De Nederlandsche Bank’s conclusions regarding cryptocurrencies and stablecoins? Let us know in the comments section below. View the full article

Hong Kong’s Securities and Futures Commission (SFC) is “actively looking” to create a regulatory framework that allows crypto futures exchange-traded funds (ETFs), an SFC official reportedly said. “We have come to believe that some initial concerns about virtual asset futures ETFs have become manageable and can be addressed with proper safeguards.” Rising Demand for Crypto ETFs in Hong Kong Hong Kong’s top financial regulator is “actively looking” to set up a regulatory framework that allows retail investors to trade exchange-traded funds (ETFs) with exposure to cryptocurrency futures, Ignites Asia reported Monday. The publication cited Julia Leung, deputy chief executive officer and executive director for the Intermediaries Division at the Securities and Futures Commission (SFC). Leung reportedly said last week during her keynote speech at Hong Kong Fintech Week that the SFC is “actively looking to set up a regime to authorize ETFs that provide mainstream virtual assets with appropriate investor guardrails.” She explained that initially, the Securities and Futures Commission will only allow ETFs that invest in bitcoin futures and ether futures traded on the Chicago Mercantile Exchange (CME) exchange. The SFC published a circular on Oct. 31 outlining the requirements under which it “would consider authorizing exchange-traded funds (ETFs) that obtain exposure to virtual assets (VAs) primarily through futures contracts (VA Futures ETFs) for public offering in Hong Kong,” the regulator detailed, elaborating: A broad range and larger number of investment products providing exposure to VAs, including VA-related ETFs offered in various markets globally, are now available to both retail and professional investors and have become increasingly popular. Similarly, demand for such products has increased in Hong Kong. The circular further states that the SFC “is prepared to accept applications for authorization of VA Futures ETFs.” A regulatory framework for crypto assets was first issued in November 2018 restricting access to professional investors. Defending the decision to disallow retail investors to trade crypto, Leung said: “Given the novelty of our framework and the high volatility of crypto assets, we believed it was prudent to impose an overarching ‘professional investor’ restriction.” However, the executive director emphasized that Hong Kong’s crypto ecosystem had made “substantial advancement” in the past four years. During this time, the SFC had gained more experience in regulating crypto trading platforms and fund firms, she detailed, elaborating: We have come to believe that some initial concerns about virtual asset futures ETFs have become manageable and can be addressed with proper safeguards. “It is now an opportune time to review the ‘professional investor only’ requirement,” she added, emphasizing that the SFC is preparing to adjust its “regulatory response and allow retail access” to security token offerings with certain safeguards in place. What do you think about Hong Kong looking to establish a regulatory framework to allow crypto futures ETFs for retail investors? Let us know in the comments section below. View the full article

PRESS RELEASE. Hong Kong, 9th Nov 2022 – Bitget, the leading global crypto exchange with a core focus on social trading, launches another innovative social trading feature, Strategy Plaza. The new feature provides users with the option to follow a series of automated trading strategies and allows the system to automatically execute the strategies after subscription, facilitating trades with convenience and flexibility. Strategists could create their unique automated trading strategies and share them on Strategy Plaza. At the same time, regular users could review each strategist’s profile and performance contributed by their strategies, and choose to subscribe to their favourite strategists and follow those strategies. After subscribing to strategists, the trading strategies will be automatically executed for the users over the following 30 days, including the actions to start and end strategy taken by the strategists, as an addition to copy trading with manual ordering. Strategy Plaza will not only benefit the users with the variety of trading strategies set by experienced and excellent traders, but also help strategists profit from sharing, as a subscription fee may be needed for some strategists. Together with other social trading features such as One-click copy trade and Bitget Insights, Strategy Plaza could further enhance Bitget as a one-stop trading platform, with seamless integration of opinion sharing, social interaction and copy trading, providing well-rounded social trading services to better suit everyone’s needs. Gracy Chen, Managing Director of Bitget, says, “Bitget focuses on providing users with the best social trading experience. The additional feature, Strategy Plaza, diversifies the platform’s offering and further optimizes users’ trading portfolio, as well as improves the benefits of being an experienced trader. We hope that, with our continuous effort in developing new tools and innovation to upgrade our social trading products, users will be more capable of achieving their goals.” Bitget’s flagship product of social trading One-Click Copy Trade has received massive popularity in the industry since its launch. The exchange recently also developed another social trading tool “Bitget Insights”, to better educate traders with insights and learnings from their more experienced peers, further bridging the knowledge gap between beginners and expert traders. For more information, please visit here. 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 around the world. The exchange is committed to providing one-stop and secure trading solutions to users and aims to increase crypto adoption by collaborations with creditable partners, including Argentinian legendary footballer Lionel Messi, Italian leading football team Juventus, PGL Major’s official esports crypto partner, and the leading esports organisation Team Spirit. 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

The Central Bank of Russia is proposing to introduce tax incentives for long-term holders of digital financial assets. The idea has been circulated with a consultation paper published for public discussions on the development of the digital asset market in the Russian Federation. Bank of Russia Talks Regulation in New Report Devoted to Digital Assets Market Russia’s monetary authority has published a report on the future of the Russian digital asset sector. The document explores the development of the market for digital financial assets (DFAs) and utility digital rights (UDRs), and legal terms partially covering cryptocurrencies and tokens — those with an issuing entity, in particular. The Central Bank of Russia (CBR) believes that additional regulations are needed to improve the DFA framework and harmonize it with the rules that govern the traditional financial industry. According to the regulator, this would increase investment, circulation, and liquidity while ensuring better investor protection. Taxation is one the aspects reviewed in the consultation paper. The Bank of Russia proposes to offer tax incentives for investors holding long-term DFAs and UDRs, suggesting the adoption of a mechanism similar to a special tax regime that applies to holders of individual investment accounts. The latter was introduced with the aim to attract citizens’ free funds to the securities market. The CBR believes its proposal would create new opportunities for Russian citizens and businesses, simplify transactions with digital assets and digital rights, and reduce operating costs. However, it notes that additional discussions with relevant government institutions and market participants are needed before approving such tax incentives. Russia’s Central Bank Pushes for Better Identification of Digital Asset Investors The Russian central bank also wants to see improvements in the identification procedures applied to DFA holders. Quoted by RBC Crypto, the monetary policy regulator explained this would allow the country to let foreign DFAs enter its market, adopt regulations designed specifically for smart contracts, and develop necessary accounting procedures. Among the other proposals for which the CBR is seeking feedback in the next month is the idea to facilitate the tokenization of various assets such as securities and bonds, precious stones and metals, property rights in the form of non-fungible tokens, and claims secured by mortgages. The Bank of Russia also wants the public discussions to cover the listing of digital assets on existing exchanges and digital asset transactions through intermediaries. Russia has been looking to expand its regulatory framework for DFAs and the institutional debate over the status of decentralized assets such as cryptocurrencies has been going on for months. While the central bank called for a blanket ban on crypto activities in January, it later agreed with the finance ministry in Moscow to legalize cross-border crypto payments. The change in its stance came amid increasing sanctions pressure over Russia’s invasion of Ukraine which started in late February. Do you think the Russian government will adopt tax incentives for digital asset holders? Share your expectations in the comments section below. View the full article

Abu Dhabi-based fintech, Pyypl, announced on Nov. 7 that it had raised $20 million in Series B funding and this brought the total of funds raised to nearly $40 million. Pyypl has said it plans to use the recently raised funds to develop and add new features to its proprietary technology. The company further wants to assist “800 million financially underserved smartphone users” from the region through virtual and physical prepaid cards. Pyypl’s Financial Inclusion Journey Pyypl, an Abu Dhabi-based fintech, recently revealed it had raised $20 million in a Series B round, to fund its planned expansion into the Middle East and Africa. United Arab Emirates-based venture capital company Global Ventures is one of the ten new and existing investors that participated in the round. The latest capital raise, which brings the total raised so far to $40 million, is set to fund the development and addition of new features to Pyypl’s proprietary technology. In addition to seeing the number of its users quadruple since its previous capital raise, Pyypl — an Abu Dhabi Global Market’s Financial Services Regulatory Authority licensed blockchain-based platform — has reportedly established relationships with Binance, Ripple, and Visa. Commenting on his firm’s latest fintech fundraise, Antti Arponen, the co-founder and CEO at Pyypl, said: We welcome our new investors and appreciate the further investment from our existing shareholders in support of our financial inclusion journey. The fintech added that its objective now is to assist “800 million financially underserved smartphone users” from the region through virtual and physical prepaid cards as well as “user-to-user transfers.” Meanwhile, Arponen is quoted in another report stating that his firm is aiming to serve a billion users from the region. Oman and countries in the Gulf Cooperation Council (GCC) are among the countries that Pyypl is targeting. What are your thoughts on this story? Let us know what you think in the comments section below. View the full article

PRESS RELEASE. Gofaizen & Sherle is a legal and business consulting firm specializing in digital asset-based businesses, financial institutions and investment funds. Having been founded in September 2021, the company has successfully gained a portfolio of hundreds of different projects for numerous clients all over the world. Now, Gofaizen & Sherle is introducing full-cycle online accounting in Lithuania. Common accounting issues for cryptocurrency companies include high prices, a lack of market knowledge, and regulations in various countries. However, a majority of these problems can be solved quickly and cheaply using online accounting. In Lithuania, Gofaizen & Sherle therefore accommodated a large amount of expertise and accounting practices have become much easier with their product as a result. What makes Gofaizen & Sherle different? Clients of Gofaizen & Sherle can easily resolve any and all business-related issues through the company’s wide array of useful features and services. Moreover, the customers would never have to deal with any legal problems either. This is critical because, while there are many businesses dealing with digital assets nowadays, not all of them follow the appropriate regulations, KYC and AML procedures. According to Mark Gofaizen, Senior Partner at Gofazien & Sherle, the rapidly growing and fast-paced realm of digital financial services is being faced with a demanding, slow conventional approach to establishing companies and handling license subtleties in new markets like Germany, Estonia, Lithuania, and numerous others. He went on to say that the core task for him and his team would be to help clients resolve these legal complexities while also guaranteeing dynamic growth in new markets. Furthermore, the company is planning to steadily grow its presence in these new markets and therefore will develop useful fintech products to assist multiple businesses in running more seamlessly and effectively. These products and services will also include acquiring, accounting, and other simple crypto business tools. How does Lithuania fit into the company’s plans? In Lithuania, Gofaizen & Sherle started an online accounting service for crypto companies. Essentially, the company began offering a ready-made solution for digital accounting which simplifies and expedites the complex process of report preparation. The service additionally verifies the accuracy of the reports and helps with tax calculation and navigation in key dates on the tax calendar. Mark Gofaizen stated that reporting and accounting are important aspects of the job that require a significant amount of time, which entrepreneurs are naturally short of. Gofaizen & Sherle’s online accounting is hence an innovative and useful solution for crypto businesses as well as traditional businesses which desire to make this process simple, effective, and quick. Mark also indicated that the service handles the paperwork, allowing customers to concentrate on strategic tasks. Traditional businesses can thus easily utilize the service, which provides full accounting support. Once again, the goal of the solution is to simplify and expedite the generation of annual, quarterly, tax, and payroll reports for any business. According to Gofaizen & Sherle, Lithuania is also a comparatively better option than Estonia. Further details about the service are available here for anyone who may be interested. About Gofaizen The Gofaizen & Sherle team, which began with legal and business professionals, has more than doubled in the last year. It now consists of highly qualified experts who can help with all aspects of starting a new business, including legal and financial advice, business analysis, and product development. Put simply, the company offers customers a comprehensive approach to their needs. The figures speak for themselves, as Gofaizen & Sherle clients have successfully obtained over 200 financial licenses in European, American, and Asian jurisdictions to date, and they often rely on the company’s timely assistance as they continue to expand their businesses into new markets with each passing day. Regarding future goals, the company will keep expanding its influence in emerging markets while developing useful fintech products and services to help businesses run more smoothly and efficiently as aforementioned. For instance, acquiring, accounting, and other quick and easy crypto business tools will all be provided. Visit the official website for more information along with the LinkedIn channel for regular updates. 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

MUFG, the biggest bank in Japan, is projecting to offer financial services through the metaverse in 2023. The financial giant has partnered with ANA Holdings, a holdings consortium focused on air transportation companies, to be part of ANA’s Granwhale metaverse, and explore the possibility of selling financial products on this platform next year. MUFG Prepares to Enter the Metaverse The biggest financial institution in Japan, MUFG, is making its move to enter the metaverse. On Nov. 7, the company announced a partnership with ANA Holdings, a consortium of companies dedicated to air travel and transportation services, to be part of ANA’s upcoming digital platform. The platform is expected to begin operations with a user base of 38 million, corresponding to the mileage members of the company. The metaverse platform, called ANA Granwhale, is projected to be operational in 2023. Customers of the company will be able to roam the 3D world with their avatars and interact with different stores and stands in the virtual world. MUFG, ANA, and Sompo Japan, an insurance company, will explore the possibilities of conducting their specific activities in the metaverse, examining laws and regulations regarding this matter. MUFG aims to be able to offer its financial services to the users of this metaverse platform. Sompo Japan is also expecting to be able to sell insurance for possible losses related to transactions made in the metaverse. Metaverse as Vehicle for Enticing New Generations The objective of some of these companies in entering into such metaverse worlds is simple: to use these platforms as vehicles to attract audiences that would otherwise be difficult to reach. MUFG is no different, as it expects to lure young users with this move, a demographic that has been difficult for such institutions to appeal to. The La Liga, the premier soccer league in Spain, is also entering the metaverse with the objective of getting younger users closer to its activities. At the same time, these companies will have to adapt their operations to the metaverse and include KYC verifications and other processes to comply with rules and regulations in a digital world where avatars are not linked to the identity of their users. Other banks in Asia are also making their move into virtual worlds. In Sept., DBS, one of the largest banks in Southeast Asia, announced it was buying plots of land in Decentraland as part of its metaverse push. What do you think about MUFG’s foray into the metaverse? Tell us in the comments section below. View the full article

Oasys, a gaming-oriented, Japan-based Web3 project, is partnering with YGG, a blockchain gaming guild, to grow blockchain gaming in Japan. The partnership encompasses the use of YGG resources to promote gaming projects built on top of the Oasys ecosystem, giving developers from all over the world an opportunity to get into Japan’s gaming market. Oasys Aims to Open Japan’s Gaming Markets to Developers Worldwide Oasys, a gamefi-oriented blockchain (with “gamefi” meaning basically the intersection of gaming and finance), is aiming to leverage its stance as a Japan-based project to offer resources for foreign developers to access this significant gaming market. On Nov. 2, the company announced a partnership with YGG, a gaming guild, that will allow products built using Oasys’ services to enjoy specific marketing and promotional help to improve the performance of these products in Japan. The goal of Oasys is to grow the blockchain gaming ecosystem in Japan, which is one of the leading gaming markets in the world. According to the “Global Markets Report 2021,” made by Newzoo, Japan is currently the third largest market in gaming revenue around the world, behind China and the U.S. The sector registered gaming revenues of $22.9 billion in 2021, with 75.62 million players actively enjoying these experiences. Oasys founder and CEO Daiki Moriyama reinforced the importance of Japan as part of the future of blockchain gaming. On this, he stated: As the third largest gaming market in the world, Japan’s gaming credentials are well-established. With the government continuing to invest in building the local Web3 infrastructure, there is now tremendous potential for blockchain gaming to grow globally with Japan serving as a launchpad. Difficulties of Entering the Japanese Gaming Market Oasys wants to capitalize on the difficulties that foreign companies face when trying to enter the Japanese market. Around 99% of the games played in Japan are local, and while the revenue made is huge, only 15% goes to foreign companies. This is because localization is more than just language translation, and can involve changes in games to better approach the Japanese user base. Tetsuya Fujiwara, a co-founder of YGG Japan, seems positive about what YGG can offer to developers outside of Japan through this alliance. Fujiwara believes that YGG will help global developers to overcome the hurdles that the market presents by using its knowledge of gaming. He stated: With these barriers to entry reduced, we can bring more users into the blockchain gaming space and enhance the ecosystem for all. Our partnership with Oasys will help us to reach even more developers that are building compelling blockchain games of the future. This partnership comes after Oasys announced it was launching phase one of its mainnet on Oct. 25, with the support of companies like Bandai Namco, Square Enix, Ubisoft, and Sega. What do you think about Oasys’ partnership with YGG? Tell us in the comments section below. View the full article

Another bitcoin mining company is dealing with financial issues as Iris Energy’s Form 6-K filing with the U.S. Securities and Exchange Commission (SEC) shows the company could face default on two loans. Iris Energy’s Form 6-K filing explains to the SEC that the firm “received a notice from its lender alleging the occurrence of an event of default and acceleration under the respective limited recourse equipment financing facilities.” Bitcoin Mining Company Iris Energy Faces Default on 2 Loans On Nov. 7, 2022, the bitcoin mining firm Iris Energy updated investors concerning October’s operations and the company noted it currently operates a hashrate of around 3.9 exahash per second (EH/s). The bitcoin mining company also said its “Mackenzie expansion” in British Columbia, Canada, from 50 megawatts (MW) to 80MW is “on track for energization by the end Q4 2022.” Also, the firm’s Childress facility in Texas is still in the construction and energization phase and operations continue on that end. However, a Form 6-K SEC filing registered in November indicates that two lenders are alleging the company defaulted on $103 million in equipment loans. The loans are being held by two special-purpose vehicles (SPV) and the lenders have sent a “purported acceleration notice” for the alleged defaults. Iris Energy said that a large fraction of its exahash is unaffected by the SPV’s purported acceleration notice. Iris Energy’s SEC filing states: 2.4 EH/s of miners and all of the group’s data center capacity and development pipeline are unaffected by the limited recourse equipment financing arrangements or purported acceleration notice. The bitcoin miner’s filing with the U.S. regulator follows other mining companies dealing with financial issues. For instance, at the end of September, Bitcoin.com News reported on Compute North filing for bankruptcy protection. Additionally, Core Scientific told the U.S. SEC that it was having financial difficulties as Core Scientific’s “operating performance and liquidity have been severely impacted by the prolonged decrease in the price of bitcoin.” As far as the Iris Energy filing is concerned, one SPV says it is owed $71 million, and the other claims Iris Energy owes it $32 million. Iris Energy said that it has available data center capacity and it “continues to explore opportunities to utilize this capacity to either host third-party miners or to self-mine utilizing additional miners that the company has available or elects to purchase.” Iris Energy shares (Nasdaq: IREN) have lost 19.60% against the U.S. dollar during the last five days. A myriad of bitcoin mining companies have also seen shares slide 80% to 90% during the past 12 months and year-to-date, IREN is down 81.68% against the greenback. What do you think about the Iris Energy SEC filing that shows two companies are alleging default on equipment loans? Let us know what you think about this subject in the comments section below. View the full article

On Nov. 7, 2022, the bitcoin mining firm Core Scientific released the company’s October update after the company’s Form 8-K U.S. Securities and Exchange Commission (SEC) filing on Oct. 26, 2022. The filing noted that the company was in the process of exploring “restructuring its existing capital structure.” The update published on Monday indicates that Core Scientific sold 2,285 bitcoins at an average price of $19,639 per bitcoin. Core Scientific Releases October Update On Oct. 29, Bitcoin.com News reported on the bitcoin mining firm Core Scientific (Nasdaq: CORZ), as the company’s shares were downgraded by the B. Riley analyst Lucas Pipes following the firm’s Form 8-K SEC filing. Pipes downgraded shares of CORZ to Neutral from Buy and said “compressed self-mining margins have exerted extra pressure on the company’s ability to meet its financial obligations.” The October update published on Monday shows that the publicly listed mining company has 243,000 colocated and owned application-specific integrated circuit (ASIC) bitcoin mining rigs. During the course of last month, Core Scientific managed to mine 1,295 bitcoins with the firm’s resources. However, the company sold more than it made in October as it sold 2,285 bitcoins during the 30-day span. The BTC was sold for $19,639 per unit and the company raked in $44.8 million from the sales in October. Core Scientific holds approximately 62 bitcoin (BTC) as of October 31, 2022, and out of the fleet of 243,000 mining rigs, 143,000 are self-hosted by Core Scientific. The self-mining side of Core Scientific’s entire fleet of ASICs represents 14.4 exahash per second (EH/s). The company has a total of 24.4 EH/s with the colocated fleet it operates and the company operates facilities in Georgia, Kentucky, North Carolina, and North Dakota. Core Scientific’s update does note that the firm has “completed 287 MW of its data center build-out in Texas.” However, the October update does not disclose anything about meeting the firm’s financial obligations. While Core Scientific did say it finished a data center in Texas it also noted that it powered down the operation and other facilities it operates “to enhance electrical grid stability.” “In the month of October, the [Core Scientific] powered down its Texas and other data center operations on several occasions,” the company’s update details. “Curtailments in October totaled 5,125 megawatt-hours.” Core Scientific’s shares started the day at 10:20 a.m. (ET) up 5% against the U.S. dollar. CORZ, however, is down 98.82% against the greenback year-to-date. What do you think about Core Scientific’s October update? Let us know what you think about this subject in the comments section below. View the full article

Uala, an Argentine neobank backed by George Soros, has launched cryptocurrency trading services for its users in Argentina. Customers of the company with the highest loyalty levels are now able to trade, purchase, and sell bitcoin and ether through Uala’s platform. The service is expected to be expanded to all customers in the coming weeks. Uala Gets Into Crypto On Nov 4, Argentine neobank Uala announced it is already offering cryptocurrency trading services through its app. The unicorn company, which has investments from George Soros and Steve Cohen, will roll out this functionality progressively to all of its customers in Argentina, according to statements from CEO Pierpaolo Barbieri. Regarding the significance of the move, Barbieri stated: Argentina is the best market to make this investment, since it is one of the countries in the region where adoption is growing the fastest. Barbieri explained that the cryptocurrency trading option is already available to customers at the highest levels of the company’s loyalty program. The goal is to make the option available to all of the 4.5 million customers of Uala in Argentina in the coming weeks. More Details The company had to create an offshoot to make cryptocurrency trading available, called Uanex. At the launch date, customers will be able to access this option through the investment menu in the app, and it will be available at all times. The first cryptocurrencies that will be available in the investment app are bitcoin and ether, with more possibly coming after. However, stablecoins will not be offered through the platform. On this choice, Barbieri explained: We prefer clarity and transparency: Bitcoin and Ethereum are what they are. Stablecoins will have a regulation in the future. Users will be able to invest from $1.50 in crypto, and Bitso will be responsible for offering custody of the funds in Uala’s wallet service. About the fees the company will charge, Barbieri explained that they will be quoted depending on the liquidity of funds available, but said they would be low. Banco Galicia, a traditional private bank, tried to launch similar services in May, but the Central Bank of Argentina swiftly issued a resolution banning private banks from offering services to manage digital assets. What do you think about Uala’s cryptocurrency trading services offering? Tell us in the comments section below. View the full article

The man who stole over 50,000 bitcoins from the Silk Road marketplace has pleaded guilty. According to the U.S. Department of Justice, “the seizure was then the largest cryptocurrency seizure” in the history of the DOJ and “remains the department’s second-largest financial seizure ever.” Silk Road Exploiter Pleads Guilty The U.S. Department of Justice (DOJ) announced Monday that James Zhong pleaded guilty on Friday “to committing wire fraud in September 2012 when he unlawfully obtained over 50,000 bitcoin from the Silk Road dark web internet marketplace.” The Justice Department also announced a “historic $3.36 billion cryptocurrency seizure” in connection to the case. The DOJ explained that law enforcement conducted a search at Zhong’s house in Gainesville, Georgia, on Nov. 9, 2021, and “seized approximately 50,676.17851897 bitcoin, then valued at over $3.36 billion,” elaborating: This seizure was then the largest cryptocurrency seizure in the history of the U.S. Department of Justice and today remains the department’s second-largest financial seizure ever. Zhong also had about 3,500 more bitcoins from exchanging into BTC over 50,000 bitcoin cash (BCH) which he received following the bitcoin blockchain hard fork in August 2017. He used an overseas cryptocurrency exchange for the conversion. Besides the BTC seized at his house, Zhong began “voluntarily surrendering to the government additional bitcoin” beginning in March this year, the DOJ revealed, adding that “In total, Zhong voluntarily surrendered 1,004.14621836 additional bitcoin.” The government is seeking the forfeiture of “approximately 51,680.32473733 bitcoin,” the DOJ noted. At the time of writing, BTC is trading at $20,641.28, so the amount sought by the government is about $1.07 billion. Zhong’s Scheme to Defraud Silk Road Marketplace Zhong executed a scheme to defraud the Silk Road marketplace of its money and property in September 2012, the DOJ said, adding that he “was able to withdraw many times more bitcoin out of Silk Road than he had deposited in the first instance.” For example, the Justice Department detailed that on Sept. 19, 2012: Zhong deposited 500 bitcoin into a Silk Road wallet. Less than five seconds after making the initial deposit, Zhong executed five withdrawals of 500 bitcoin in rapid succession — i.e., within the same second — resulting in a net gain of 2,000 bitcoin. On Monday, the U.S. government filed an Amended Preliminary Order of Forfeiture in the United States v. Ross Ulbricht case “seeking to forfeit approximately 51,351.89785803 bitcoin traceable to Silk Road, valued at approximately $3,388,817,011.90 at the time of seizure.” Silk Road’s founder, Ross Ulbricht, was convicted in 2015 and is currently serving a double life sentence, plus 40 years without parole. U.S. District Judge Paul Gardephe also entered a Consent Preliminary Order of Forfeiture on Friday for 154.4268793000044 BTC, $661,900 in cash, 25 Casascius coins (physical bitcoin) worth about 174 BTC, various metals, and Zhong’s 80% interest in Memphis-based RE&D Investments LLC. The metals seized consisted of “four one-ounce silver-colored bars, three one-ounce gold-colored bars, four 10-ounce silver-colored bars, and one gold-colored coin,” the Justice Department highlighted. Following the DOJ’s announcement, some people on social media began noticing that one of Zhong’s BTC addresses revealed in a court document matches one posted by Bitcointalk user “Loaded.” Bitmex Research tweeted: “In March 2017, Bitcointalk user ‘Loaded’ signed a message from an address with 40,000 bitcoin, asking to do a 1 to 1 swap for ‘Bitcoin Unlimited’ with Roger Ver. It now appears these funds have been seized by the U.S. authorities.” Commenting on Loaded’s Bitcointalk post, Bitcoin.com founder Ver, stated: “As I recall, he never replied to my DMs about making the bet.” What do you think about this case? Let us know in the comments section below. View the full article

The Internal Revenue Service (IRS) is building “hundreds” of crypto cases to crack down on tax evasion, an official reportedly said. In the fiscal year 2022, the IRS Criminal Investigation Division seized about $7 billion in cryptocurrency, which was double the previous year’s total. IRS Building ‘Hundreds’ of Cases to Crack Down on Tax Evasion via Cryptocurrency The Internal Revenue Service (IRS) Criminal Investigation Division (CI), the tax authority’s law enforcement branch, is building “hundreds” of crypto cases, Bloomberg reported Thursday. The publication cited CI chief Jim Lee who said many of the cases will soon be made public. Lee explained during a press call that the cases largely involve cryptocurrencies being exchanged for fiat currencies and people failing to report payments in crypto. The CI chief noted that while most cases were related to money laundering in the past, he has “really seen a shift” in digital asset investigations in the past three years. The Criminal Investigation Division’s annual report, released Thursday, states that the IRS “seized record amounts of data and cryptocurrency.” Lee told the news outlet that CI seized about $7 billion in cryptocurrency in the fiscal year 2022, which was double the previous fiscal year’s total. The CI fiscal year began on Oct. 1, 2021, and ended on Sept. 30, 2022. The tax authority established the Office of Cyber and Forensic Services (CFS) last year to consolidate several areas of investigation, including digital assets, cybercrime, digital forensics, and physical forensics. Lee claimed that the office is capable of tracing essentially any crypto transaction. The report details: Among its priorities, CFS supports criminal investigations agency-wide regarding the illicit uses of digital assets and how they can be used to exploit the U.S. tax and financial system. “The CFS is constantly taking additional steps to evolve, especially as threats evolve in areas such as decentralized finance [defi], peer-to-peer payments, and anonymity-enhanced cryptocurrencies. Due to relatively limited resources, the CFS focuses on cases where they can have the most significant impact,” the report adds, elaborating: CI prioritized training and the deployment of cryptocurrency, blockchain, and open-source intelligence technologies to unravel complex cyber-financial criminal schemes. “When a foreign corrupt government official receives bribes, they often use a third party to move or launder those illegal proceeds to buy properties, cryptocurrencies, and many other assets. If any of the funds move into or through [the] U.S. financial system, CI can trace the money,” the report further details. What do you think about the IRS building hundreds of crypto cases? Let us know in the comments section below. View the full article

Bitcoin.com continues to improve access to high-throughput, low-fee decentralized networks for millions of people by integrating the Polygon network. Bitcoin.com, a digital ecosystem and secure self-custody platform where users can safely and easily interact with cryptocurrencies and digital assets, has announced integration of the Polygon network to its self-custodial web3 wallet. The addition of Polygon to the multichain Bitcoin.com Wallet means the wallet’s millions of users are now able to trade ERC-20 tokens via Polygon, as well as interact directly with most of the over 37,000 Decentralized Apps (DApps) hosted on the network, including blue-chip projects, such as Aave, Uniswap and OpenSea. “Polygon was one of the first networks to provide millions of people low-fee access to decentralized finance (DeFi). DeFi has run into speed bumps with high fees that push out the vast majority of people. Projects like Polygon’s are crucial to guaranteeing DeFi has low-fees, thus remaining accessible to everyone,” said Bitcoin.com CEO Dennis Jarvis. “We believe in a multichain future, no better demonstrated than by Polygon. It is fast and affordable, yet is able to maintain a high level of decentralization, which is important for security and censorship resistance. That Polygon is one of oldest ecosystems, meaning it has a mature variety of DApps, is icing on the cake.” Bitcoin.com will also be bringing its ecosystem token VERSE to the Polygon network, which is an ideal fit. Verse requires a low-fee smart contract platform to enable the small, frequent transactions associated with the token’s utility and rewards functions. Verse will launch on Ethereum mainnet, but of course will be made bridgeable to the Polygon network. Strategic buyers purchased $33.6 million in a private sale of VERSE tokens in May. Verse will launch following the public token sale, which is live now at getverse.com and runs until November 30 or the goal is reached. Two percent of the total VERSE token supply is up for grabs in the dynamically priced sale which has a soft-cap price of $0.0024/token or just a 50% greater price per token than that paid by first round private sale buyers. About Polygon Polygon is the leading blockchain development platform, offering scalable, affordable, secure and sustainable blockchains for Web3. Its growing suite of products offers developers easy access to major scaling solutions including L2 (ZK Rollups and Optimistic Rollups), sidechains, hybrid, stand-alone and enterprise chains, and data availability. Polygon’s scaling solutions have seen widespread adoption with unique user addresses exceeding 174.9M. The network is home for some of the biggest Web3 projects such as Aave, Uniswap, OpenSea and well-known enterprises including Starbucks, Meta, Stripe and Adobe. Polygon is carbon neutral with the goal of leading the Web3 ecosystem in becoming carbon negative. If you’re an Ethereum Developer, you’re already a Polygon developer! Leverage Polygon’s fast and secure txns for your dApp, get started here. Website | Twitter | Ecosystem Twitter | Developer Twitter | Studios Twitter | Telegram | LinkedIn | Reddit | Discord | Instagram | Facebook About Verse VERSE is the rewards and utility token for the Bitcoin.com ecosystem, and the world’s gateway to DeFi. Verse will launch following the dynamically priced public token sale, which is live now at getverse.com and runs until November 30 or the goal is reached. View the full article

Two U.S. lawmakers have requested answers from the Securities and Exchange Commission (SEC) about its rulemaking process. Their request followed the latest SEC Inspector General report that “raises significant concerns that the agency is trying to enact too many rules, too quickly.” ‘SEC Is Enacting Rules Without Sufficient Feedback’ U.S. Senator Pat Toomey (R-PA) and Representative Patrick McHenry (R-NC) sent a letter to the chairman of the Securities and Exchange Commission (SEC), Gary Gensler, requesting information regarding the agency’s rulemaking process on Wednesday. The letter references several issues identified in the October report published by the SEC Inspector General (IG), an independent office that conducts, supervises, and coordinates audits and investigations of the programs and operations of the SEC. Senator Toomey tweeted on Friday: I’m deeply concerned by the IG report finding that the SEC is enacting rules without sufficient feedback. The letter details that the IG report “raises significant concerns that the agency is trying to enact too many rules, too quickly — in some cases using temporary staff with little or no rulemaking experience — to the detriment of investors, businesses, and American capital markets.” The IG report notes that from January to August this year, the SEC proposed 26 new rules, which was more than twice as many new rules as it proposed during all of 2021 and more than it had proposed in each of the prior five years. Following the release of the report, Rep. McHenry tweeted: “A damning new IG report shines a light on Gary Gensler’s reckless leadership of the SEC.” He opined: Chair Gensler’s attempt to force a progressive agenda through our capital markets is taking resources from the SEC’s core mission — including investor protection. The letter continues: By largely cutting these offices out of the rulemaking process, your office has restricted their opportunity to provide important and meaningful feedback about the impact of draft rules on investors and small businesses. The lawmakers ended their letter with a list of questions concerning how the SEC plans to address the issues identified in the IG report. They asked Gensler to answer by no later than Nov. 16. Last week, four congressmen sent a letter to Gensler accusing him of “hypocritical mismanagement of the SEC,” stating that the chairman refused to practice what he preaches. Gensler has also been criticized for taking an enforcement-centric approach to regulating the crypto industry. Do you agree with the lawmakers that the SEC’s rulemaking process is concerning? Let us know in the comments section below. View the full article

The U.S. Securities and Exchange Commission (SEC) has won a court case against the blockchain-powered publishing platform LBRY. According to a New Hampshire district court ruling, Judge Paul Barbadoro agreed with SEC that the project’s native asset LBC was considered an investment contract or a transferable share representing a certificate of interest. On Twitter, LBRY said the language used to sway the court’s decision “sets an extraordinarily dangerous precedent.” U.S. Regulator Wins Judgement Against Decentralized Blockchain Platform LBRY According to court documents, the U.S. regulatory watchdog, the Securities and Exchange Commission (SEC), has won a case where it argued that LBRY sold an unregistered security that violates section 5 of the Securities Act of 1933. Furthermore, the SEC seeks injunctive relief from the alleged proceeds of LBRY’s LBC token. Despite LBRY arguing that the blockchain token was not a security, but rather an essential component of the LBRY blockchain network, Judge Paul Barbadoro granted the SEC’s motion for summary judgment. The New Hampshire District Court’s approved summary judgment insists: LBRY is mistaken about both the facts and the law. Unlike a myriad of other crypto projects, LBRY did not have an initial coin offering (ICO), and LBRY contends that the SEC’s decision and the language used in the summary judgment sets an “extraordinarily dangerous precedent.” The dangerous precedent means that the U.S. regulator could make “every cryptocurrency in the U.S. a security, including Ethereum,” LBRY added. The LBRY team disclosed that they plan to heal by licking their “wounds for a little bit,” but further added, “we’re not giving up.” The LBRY case has a lot of people discussing whether or not other decentralized crypto assets will be targeted by the U.S. regulator. During the second week of September, the chairman of the SEC, Gary Gensler, said he wanted SEC to fine-tune crypto compliance. The regulator also remarked that out of “the nearly 10,000 tokens in the crypto market,” he believes “the vast majority are securities.” In mid-July, Gensler explained that the SEC was looking at “tokens, the stablecoins, and the non-stablecoins” as far as regulatory clarity is concerned. What do you think about the U.S. Securities and Exchange Commission prevailing in a court case against the blockchain publishing platform LBRY? Let us know what you think about this subject in the comments section below. View the full article

While the stablecoin economy has seen fluctuations from specific stablecoin tokens either increasing the project’s number of tokens in circulation or decreasing the supply, the stablecoin GUSD issued by Gemini has increased by 129.5% during the last 30 days. GUSD Sees Supply Balloon by Nearly 130% There’s been a number of changes within the stablecoin economy as Bitcoin.com News reported events like the demise of Terra’s stablecoin terrausd (UST), which is now referred to as terrausdclassic (USTC). Following the Terra stablecoin depegging event in mid-May, a number of other stablecoin assets showed discrepancies between their exchange rate and the U.S. dollar parity they aimed to uphold. By mid-June, Bitcoin.com News reported on Tether removing more than 12 billion from the USDT supply in two months. In more recent times, the second-largest stablecoin asset, usd coin (USDC), has seen its supply shrink a great deal. On Oct. 22, 2022, our newsdesk reported on the Binance and Paxos-backed stablecoin BUSD increasing its supply by 22% in two months. 30-day stats as of today, indicate that BUSD’s supply has increased even more by 4.2% higher than it was a month ago. Tether’s supply has managed to grow as well, as one-month metrics indicate USDT’s supply grew by 1.7%. USDC, on the other hand, has shed 7.5% from the supply and DAI, FRAX, USDP, and TUSD have seen decreases over the last month as well. Gemini’s GUSD, however, has increased a great deal and most of the rise started on Oct. 25, 2022. 30-day stats show GUSD’s supply is up by 129.5% and the stablecoin is now the eighth largest out of the top ten. On Oct. 25, GUSD’s market cap was valued at $332 million and today, it’s around $786.32 million. GUSD has a circulating supply today of roughly 786,146,923 and a snapshot from archive.org shows the circulating supply of GUSD was approximately 316,133,518 tokens. The data shows that the number of GUSD tokens in circulation since Sept. 23, 2022 has increased by 148.68%. On that same day, another archive.org snapshot shows Gemini’s stablecoin was not a top ten stablecoin as it held the 11th largest position. However, GUSD has a long way to go to be a top ten stablecoin like USDT, USDC, and BUSD as GUSD is currently ranked 62 out of more than 13,000 crypto assets in existence today. What do you think about GUSD’s supply jumping more than 129% in 30 days? Let us know what you think about this subject in the comments section below. View the full article

A proposal to eliminate the physical representation of the Argentine Peso, in order to streamline specific state processes and reduce tax evasion, has been presented by former banker Carlos Maria De Los Santos. The plan, identified as “Argentine Digital Peso,” also predicts that its implementation would lead to lower taxes and bring a surplus to the Argentine economy. Digital Peso Proposal to Stop Tax Evasion On Nov. 4, former Argentine banker and president of the Productive Inclusion Foundation Carlos Maria De Los Santos unveiled a proposal called the “Argentine Digital Peso,” which would encompass the elimination of the physical representation of the currency in Argentina and the digitization of all economic activity. De Los Santos explains that the implementation of this plan, which would supposedly be at no additional cost to the Argentine state, would allow banks to have oversight of all transactions made by citizens. Bank account data would substitute physical bills, with stores and commerce having to rely fully on such data to conduct financial transactions. In this sense, this control would bring the benefit of virtually eliminating tax evasion, with citizens’ transactions being available for the enforcers to review. De Los Santos stated that the current tax evasion rate is around 50%, and collecting all of these funds would allow Argentina to achieve an economic surplus of up to 20% yearly, suppressing tax deficits. This widespread tax collection could also ostensibly result in lower taxes for all taxpayers. More Benefits and Similar Proposals Other benefits preached by the former banker include the establishment of higher interest rates for savers, who would be enticed to put their funds in the system, avoiding investments in higher-risk speculative assets. This could possibly integrate large amounts of capital that Argentines currently have in international markets, or just outside of the banking system. Other proposals following this train of thought have been presented before. In June, Chaco, Argentina’s governor, Jorge Capitanich, also talked about the benefits of having a single digital currency. At that time, Capitanich declared: You have to have a shock policy, the possibility of having a model that implies applying digital currency as the sole legal tender. We have to recognize the factual existence of a bi-monetary regime. Capitanich’s proposal includes the deposit of all foreign currencies, including U.S. dollars, into national banks, which would exchange these for the proposed digital currency. This would be the only way of transacting with these currencies in the hypothetical system. However, Argentina has been one of the countries in which cryptocurrencies have been more popular, being the 13th-ranked country with the most crypto adoption, according to Chainalysis. The existence of such adoption and of stablecoins could make difficult the application of the proposed changes to Argentina’s transactional economy. What do you think about the proposal of issuing a digital peso to curb tax evasion in Argentina? Tell us in the comments section below. View the full article

Living in the chaos of a deep crisis, people in Lebanon have been turning to cryptocurrency, a new media report has confirmed. From earning much needed income through mining and work, to storing wealth and paying in stores, bitcoin, tether and other cryptos have started to push aside the hyperinflated Lebanese pound and the hard-to-get-hold-of U.S. dollar. Cryptocurrency Becomes Lifeline for Some Lebanese Who Try to Make Ends Meet in Meltdown With its capital Beirut once called the “Paris of the Middle East,” before the civil war broke out in 1975, and known as an offshore banking destination rivaling Switzerland, after the conflict ended in 1990, in the past few years, Lebanon has been struggling to cope with a looming economic and financial crisis — among the planet’s worst, according to the World Bank. The country plunged into the crisis in 2019 and its government defaulted on its sovereign debt in early 2020, just as the Covid pandemic was spreading around the globe. With losses of up to $70 billion at local banks, according to Goldman Sachs, inflation expected to reach 178% this year, as projected by Fitch, and close to 80% of the population living below the poverty line, estimated by the UN, cryptocurrency has started to sound like a source of salvation for some, CNBC notes in a report. The broadcaster reached out to a number of locals for whom decentralized digital cryptocurrencies have become a lifeline for survival. While crypto adoption took different forms in each case — from mining dogecoin and earning bitcoin, to spending tether — all these Lebanese citizens praised access to a type of money that makes sense for them in the current circumstances. Their experiences are best described by the words of Georgio Abou Gebrael, a 27-year-old architect from a small town near Beirut, who now makes half of his income through crypto-paid freelance work found online: Bitcoin has really given us hope. I was born in my village, I’ve lived here my whole life, and bitcoin has helped me to stay here. Others like Ahmad Abu Daher, a 22-year-old graduate from the American University of Beirut, recognized the potential of crypto mining as a profitable venture. A little over two years ago, he began minting ether, when the coin was still relying on the proof-of-work consensus mechanism. He was using electricity generated from a hydropower project on the Litani River in southern Lebanon. Having started with just three mining devices, Daher and his friend have since established their own crypto farm and are now hosting rigs for other people, too. One of them is Rawad El Hajj, a 27-year-old with a marketing degree, who has a dozen machines minting litecoin and dogecoin at Daher’s facility, making over $400 a month for him. Bitcoin, Tether Used for Store of Value, Means of Payment in Lebanon Bitcoin has replaced fiat in payments from abroad for people like Gebrael, who says that accepting U.S. dollars would mean receiving a much smaller amount than originally sent and in pounds. Lebanon has also traditionally relied on remittances, which exceeded a quarter of its gross domestic product in 2004. But pharmacist Marcel Younes uses the crypto mostly as a store of value. The man withdrew all the money from his bank in 2019 and has since converted 70% of his cash into bitcoin. Asked how reliable it is to keep wealth in an asset that lost 70% in the past year, Younes told CNBC he isn’t too concerned about the price of BTC as he bought his coins when it was around $20,000 and reminded that the leading coin was selling for just $3,500 three years ago. Other Lebanese have more trust in tether (USDT), the stablecoin pegged to the U.S. dollar. “We started by selling and buying USDT because the amount of demand on USDT is very high,” admitted Abu Daher, the miner who is also offering crypto exchange services. Although using crypto as a means of payment is prohibited by law, a growing number of businesses have started taking payments in tether and other coins. “There’s a lot of coffee shops, restaurants, and electronics stores that accept USDT as a payment, so that’s convenient if I need to spend not in fiat, but from my bitcoin savings,” said Gebrael, the young architect who relies on crypto to patch the budget every month. Do you expect cryptocurrencies to attract more Lebanese users if the crisis in their country deepens further? Tell us in the comments section below. View the full article

Elon Musk has started rolling out a $7.99-a-month Twitter Blue subscription service. U.S. President Joe Biden, however, is concerned that the billionaire has bought a social media platform “that spews lies all across the world.” Stating that there are “no editors anymore in America,” Biden stressed: “How do we expect kids to be able to understand what is at stake?” Twitter Rolls Out $7.99/Month Blue Subscription Tesla CEO and Twitter boss Elon Musk has begun rolling out the Twitter Blue subscription service. Users on the social media platform began noticing Friday that they could now sign up for the Twitter Blue verification for $7.99 a month. “Starting today, we’re adding great new features to Twitter Blue,” a notice on Twitter reads. The service is currently available in the U.S., Canada, Australia, New Zealand, and the U.K. The notice lists three features that are “coming soon” for Twitter Blue subscribers. Firstly, the company explained that Blue subscribers will only see “half the ads” and they will be “much better ones.” The social media giant detailed: “Since you’re supporting Twitter in the battle against the bots, we’re going to reward you with half the ads and make them twice as relevant.” In addition, Blue subscribers can “post longer videos” and they will have “Priority ranking for quality content.” Twitter elaborated: Your content will get priority ranking in replies, mentions and search. This helps lower the visibility of scams, spam, and bots. A user asked Musk when the Twitter Blue subscription service will be available in India. He replied: “Hopefully, less than a month.” Musk also revealed Saturday: Twitter will soon add ability to attach long-form text to tweets, ending absurdity of notepad screenshots … Followed by creator monetization for all forms of content. Replying to a comment about Youtube giving creators 55% of ad revenue, Musk affirmed, “We can beat that.” In a different tweet, the Tesla CEO addressed the inefficiency of Twitter search, stating: “Fixing search is a high priority.” President Biden Is Concerned About Twitter Spewing Lies U.S. President Joe Biden shared his concerns Friday about what Twitter is becoming after Musk took over the social media platform, Reuters reported. Twitter laid off half of its workforce Friday but the company said that cuts were smaller in the team in charge of preventing the spread of misinformation. Biden was quoted as saying: Now what are we all worried about: Elon Musk goes out and buys an outfit that sends — that spews lies all across the world … There’s no editors anymore in America. There’s no editors. How do we expect kids to be able to understand what is at stake? White House Press Secretary Karine Jean-Pierre told reporters that Biden had been clear about the need to reduce hate speech and misinformation. “That belief extends to Twitter, it extends to Facebook and any other social media platforms where users can spread misinformation,” she said. Last week, the White House deleted a tweet after Twitter added context contradicting its claim. The tweet, posted by the White House on Oct. 1, reads: “Seniors are getting the biggest increase in their social security checks in 10 years through President Biden’s leadership.” It was deleted the next day after Twitter added context pointing out that the increase was tied to a 1972 law requiring automatic increases based on the cost of living changes. According to a description under the annotation, “Context is written by people who use Twitter, and appears when rated helpful by others.” A White House official told Politico that the tweet was deleted because “the point was incomplete.” Confirming the tweet deletion, Jean-Pierre similarly stated at a press briefing on Wednesday that the statement was incomplete. What do you think about Musk charging $7.99 a month for a Twitter Blue subscription and Biden’s concerns about Twitter spewing lies all over the world? Let us know in the comments section below. View the full article

Binance is dumping all of its FTX token (FTT) holdings “Due to recent revelations that have come to light,” CEO Changpeng Zhao has confirmed. “Regarding any speculation as to whether this is a move against a competitor, it is not,” he added. “Our industry is in its nascency and every time a project publicly fails it hurts every user and every platform.” Binance Liquidating All FTX Tokens on Its Books The CEO of global cryptocurrency exchange Binance, Changpeng Zhao (CZ), announced via Twitter Sunday that his exchange is liquidating all of the FTX tokens (FTT) on its books. The executive explained that Binance received $2.1 billion in BUSD (Binance’s stablecoin) and FTT from exiting FTX equity last year. Binance was an early FTX investor. “Due to recent revelations that have come to light, we have decided to liquidate any remaining FTT on our books,” Zhao wrote. In follow-up tweets, the Binance boss added: “We will try to do so in a way that minimizes market impact. Due to market conditions and limited liquidity, we expect this will take a few months to complete.” He further said. “We typically hold tokens for the long term. And we have held on to this token for this long.” CZ also detailed: Liquidating our FTT is just post-exit risk management, learning from LUNA. We gave support before, but we won’t pretend to make love after divorce. We are not against anyone. But we won’t support people who lobby against other industry players behind their backs. Onwards. Noting that “Binance always encourages collaboration between industry players,” the CEO claimed that the sale is not “a move against a competitor” as some have speculated. He continued: “Our industry is in its nascency and every time a project publicly fails it hurts every user and every platform.” Soon after his announcement, CZ admitted that the 22,999,999 FTT transferred to Binance on Nov. 5 was part of his exchange’s FTX token exit move. Sam Bankman-Fried’s Response Commenting on the Binance CEO’s tweet about FTT, FTX CEO Sam Bankman-Fried wrote: “I was going to write a different thread, but I took a deep breath and reminded myself of something we’d all do well to remember: that we’re all in this together, and I wish the best to ‘everyone’ driving the industry forward.” He continued: Because I respect the hell out of what y’all have done to build the industry as we see it today, whether or not they reciprocate, and whether or not we use the same methods. Including CZ. FTX published a document titled “Possible Digital Asset Industry Standards” on Oct. 19 which received much backlash from the crypto industry. Bankman-Fried, who is a mega-donor to the Democratic party, has been under fire for his controversial comments on the decentralized finance (defi) protocol. Meanwhile, CZ is a major defi supporter, stating previously: “Binance is investing heavily in defi.” In addition, some people believe that the FTT sale could also be related to the financial health of Alameda Research, a principal trading firm founded by Bankman-Fried. On Friday, Dirty Bubble Media published an article outlining reasons why Alameda Research’s finances “appear to rest on the same scheme that destroyed Celsius Network.” The article cites a leaked balance sheet. What do you think about Binance dumping all of its FTX token holdings? Let us know in the comments section below. View the full article

According to a Hydro-Québec newsroom report, the company has asked the electricity transmission and distribution regulator, Régie de l’énergie, to cease offering services to crypto miners. The Hydro-Québec report stresses that “growth in electricity demand is expected to continue in Québec. Hydro-Québec Targets Blockchain Industry in Order to Stave off Electricity Demand Cryptocurrency miners in Québec may need to find new sources of energy if Hydro-Québec’s request to the lead distribution regulator Régie de l’énergie is approved. The request mentioned at the end of the electricity demand study is a “request to suspend the allocation of electricity to the blockchain industry.” There’s a number of digital currency mining operations in Québec and in mid-September, reports had shown that Québec’s Mohawk Council of Kahnawake planned to petition Hydro-Québec for electricity dedicated to bitcoin mining. Hydro-Québec’s newsroom report says that while it has taken steps to increase capacity, there’s been a “significant increase” in demand from blockchain miners. “In light of the significant increase in the anticipated demand for electricity and the tightening energy and capacity balances, Hydro-Québec filed a request with the Régie de l’énergie regarding suspension of the allocation process to the blockchain industry,” the report discloses. The Hydro-Québec report adds: Under this process, approximately 270 MW were slated to be dedicated to cryptographic use over the short term, but the allocation of that amount of capacity to this use would increase pressure on current balances. It’s unclear how the request will affect miners operating in Quebec and it’s also unknown exactly how many facilities are leveraging Hydro-Québec’s resources. Hydro-Québec says it also increased capacity by adding a “3,000-MW portfolio of wind power projects.” What do you think about Hydro-Québec’s request to block the crypto mining industry from electricity resources? Let us know what you think about this subject in the comments section below. View the full article

After Google Cloud announced that it would offer a product called the “Blockchain Node Engine” and further noted that Ethereum would be the first blockchain supported, the company revealed it was running a Solana validator on Nov. 5, 2022. Google said that the cloud division is currently working with Solana in order to bring the firm’s Blockchain Node Engine to the Solana chain. Google Is Operating a Block-Producing Solana Validator, Firm’s Cloud Division Aims to Add Solana to Blockchain Node Engine’s Supported Blockchains in 2023 Google is stepping toward other blockchains after revealing the Blockchain Node Engine at the end of October. According to a tweet from Google Cloud’s official Twitter account, the firm is already running a Solana validator. “Google Cloud is running a block-producing [Solana] validator to participate in and validate the network,” the company tweeted. The company added: Google Cloud is working with [Solana] to bring Blockchain Node Engine to the Solana chain next year, so it will be easy for anyone to launch a dedicated Solana node in the cloud. In addition to bringing Blockchain Node Engine support to Solana, Google Cloud will be indexing the Solana blockchain and bringing the data to “Big Query” next year. The goal is to “make it easier for the Solana developer ecosystem to access historical data.” Solana’s native token solana (SOL) jumped in value on the announcement and SOL is up 7.8% higher against the U.S. dollar this week. However, not everyone was thrilled about Google’s mission to host Solana nodes in the cloud. “This … Is not a good thing. More and more centralization. This is like the opposite point of crypto,” one person criticized in the Google Cloud announcement thread on Twitter. Another individual agreed with the person’s critique and replied: “Crypto went full redacted in 2017. People now celebrate centralized and custodial services because it makes number go up.” What do you think about Google Cloud running a Solana validator and preparing to support Solana with the Blockchain Node Engine? Let us know what you think about this subject in the comments section below. View the full article