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PRESS RELEASE. The blockchain ecosystem is growing exponentially. It has brought prosperity to most African countries by creating wealth for individuals and fast economic growth for their people. However, many believe that the region is yet to tap into its full potential, that is, leveraging blockchain technology to build a solid ecosystem. As a result, there has been an increasing global interest in Africa recently, with many prominent investors and companies looking to invest in this promising continent. LBank has set up shop in various locations across Africa as pioneers of the next generation of crypto and blockchain users, collaborating with other African ventures such as Adanian Labs who share a similar desire to help these countries realise their full potential. Specifically, Adanian Labs is a Pan African venture building studio with a mission to build, incubate and launch impact-driven technology companies and entrepreneurs working to solve some of Africa’s most pertinent challenges. To commemorate the commencement of this joint enterprise, LBank CEO Allen Wei and COO Shantnoo Saxsena are in Kenya to kick off the maiden edition of its venture into Kenya. The LBank team alongside the Cardano ecosystem team inaugurated the commencement of the ‘Crypto Accelerator Program’ launch with a panel discussion of how Africa can benefit from becoming developers of good use cases that will set it out on its path to becoming the blockchain centre for NFTs, GameFi and metaverse. The event and workshop also saw many technology-based startups with a prototype to develop a commercially viable product pitch in front of a panel of VCs and industry experts. The LBank CEO took the opportunity to make it known that the crypto exchange will continue sealing strategic partnerships. He adds that LBank is open to meeting different organisations and institutions to learn about how they can tailor the goods and services to better serve Africa. With its commitment to engaging in community building and education, the top crypto exchange will support these startups in their optimum capacity. Hence, LBank is setting the pace for a whole new level of tech development in Kenya. Consequently, a series of meet-ups dubbed ‘LBank and Adanian Crypto Days‘ will take place across Africa each month. Above all, LBank will continue to build relationships with the community and help spread knowledge of crypto and blockchain across Africa. In addition, the globalisation program will help many African countries to see the dawn of a new era. About LBank Exchange LBank Exchange, founded in 2015, is an innovative global trading platform for various crypto assets. LBank Exchange provides its users with safe crypto trading, specialised financial derivatives, and professional asset management services. It has become one of the most popular and trusted crypto trading platforms with over 6.4 million users from more than 210 regions around the world. Start Trading Now: lbank.info Community & Social Media: l Telegram l Twitter l Facebook l Linkedin Contact Details: LBK Blockchain Co. Limited LBank Exchange media@lbank.info 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

Many of the financial pyramids identified in Russia during the first quarter of the year have been associated with cryptocurrencies, a top central bank official has revealed. Fraudsters are actively exploiting the hot topics of the day, including the sanctions theme. Pyramids Offer Russian Investors Ways to Circumvent Western Sanctions Amid growing financial uncertainty, Ponzi schemes advertising opportunities to invest in digital assets are mushrooming in Russia. Of all financial pyramids detected by regulators in the first three months of 2022, well over half have used cryptocurrency as a lure. “Schemes based on transfers using cryptocurrencies or investments in ‘digital instruments’ have received another impetus,” Valery Lyakh, director of Bank of Russia’s Department for Combating Unfair Practices told Tass news agency. More than 58% of the pyramids identified by Russian financial authorities in the first quarter of this year were linked to cryptocurrencies, Lyakh detailed. As usual, the scammers take advantage of the trending topics in the news, the high-ranking representative of Russia’s monetary authority added. “Against the backdrop of financial uncertainties, calls to ‘save money’ in foreign jurisdictions, invest in a foreign project, in foreign securities are popular,” Lyakh elaborated. Investment proposals like these have been made in the past but now fraudsters also exploit the sanctions imposed on Russia over its invasion of Ukraine, Valery Lyakh pointed out. They are talking about projects in countries that are not supporting the measures against Moscow and offers to circumvent restrictions on international payments have become the new trick to convince victims to send their money, he added. The possibility of Russia employing cryptocurrencies to evade sanctions has raised concerns in the West but a recent report by Moody’s suggests that Moscow’s ability to avoid the penalties using digital assets is limited by the relatively small size of the crypto market and its low liquidity. The rating agency acknowledged, however, that small crypto transactions made by Russians have increased. Crypto investment was the main theme of the notorious Finiko Ponzi scheme, Russia’s largest in recent years, which collapsed last summer after receiving over $1.5 billion worth of bitcoin between December 2019 and August 2021, according to Chainalysis. Russian law enforcement recently arrested six more members of Finiko involved in defrauding thousands of victims in Russia, other former-Soviet countries and around the world. Do you expect scams offering Russians to evade sanctions with cryptocurrencies to increase further? Tell us in the comments section below. View the full article

An apartment in Portugal has changed hands, with the buyer paying directly in cryptocurrency in a reported first for the country. The home was purchased for 3 bitcoins without conversion to euros, under a new regulation permitting real estate deals with digital currencies. Buyer Pays With Bitcoin for Apartment in Braga, Portugal A three-room (two-bedroom) apartment in the Portuguese city of Braga has been bought with cryptocurrency without any conversion to fiat money. Local media reports have described the deal as a first in the history of the country’s real estate market. The new owner paid 3 bitcoins (BTC) for the home, worth around 110,000 euros at the time the purchase took place. The title deed was transferred in Porto’s Póvoa de Varzim district this past Thursday, May 5, the business news portal Idealista unveiled. The purchase was made with the help of real estate agency Zome, the law firm Antas da Cunha Ecija, and partners from Switzerland’s Crypto Valley. The Chairman of the Portuguese chamber of notaries also participated. Buying property directly with cryptocurrency is now possible in Portugal thanks to a new provision recently adopted by the Order of Notaries, the body which regulates notary activities together with the Ministry of Justice. In the past, the coins had to be converted to euros before a payment to a seller was made. Now, the real estate acquisition can be a 100% crypto operation, in which the digital money is exchanged for the rights to the property. Certain procedures must be followed to conduct such sales, to comply with anti-money laundering rules. The source of the fiat funds — a bank account — with which the digital assets were purchased, has to be indicated and the public address of the crypto wallet presented, before the coins are transferred. News of the crypto-funded property deal comes after a recent report by the Bank of Spain revealed that Portugal’s share in the volume of crypto transactions in the eurozone exceeds the weight of its gross domestic product (GDP) in the single currency area’s economy. With relatively affordable costs of living and a crypto-friendly tax regime, Portugal has become a hub for tech innovations, a home for digital nomads and most recently for refugees from Ukraine’s crypto sector. Gains from the sale of bitcoin and the like are not subject to income tax in the country. Do you expect other European nations to allow real estate purchases through direct cryptocurrency payments? Let us know in the comments section below. View the full article

On May 6, the financial services company Robinhood announced the firm has listed Grayscale’s Bitcoin Trust (GBTC) and Ethereum Trust (ETHE). Robinhood customers can now gain access the crypto investment products in order to get exposure to bitcoin or ethereum without actually owning the digital currencies. In Addition to Cryptos, Robinhood Adds Grayscale’s GBTC and ETHE This week Robinhood added GBTC and ETHE to the company’s platform and the firm’s brokerage account customers can now buy or sell GBTC and ETHE stock and options commission-free. There's two new ways to access crypto on @RobinhoodApp. You can start trading $GBTC and $ETHE today. https://t.co/n09aiEVhqEhttps://t.co/6tFrYCsmzx pic.twitter.com/AxKH7xZ0nS — Grayscale (@Grayscale) May 6, 2022 Robinhood adding GBTC and ETHE investment products follows the firm rolling out its crypto wallet during the first week of April. On April 12, 2022, Robinhood listed shiba inu (SHIB), compound (COMP), polygon (MATIC), and solana (SOL). The founder and CEO of Digital Currency Group (DCG), the parent company of Grayscale Investments, Barry Silbert, was thrilled to see Robinhood list GBTC and ETHE. “Finally,” Silbert tweeted. “You can now trade Grayscale Bitcoin Trust and Grayscale Ethereum Trust on Robinhood.” Year-to-date statistics show GBTC is down 46.63% and ETHE is down 44.08%. Grayscale recently filed a Form 10 with the U.S. Securities and Exchange Commission (SEC) for a Zcash Trust, Stellar Lumens Trust, and Horizen Trust. Grayscale is also in the midst of trying to get its trust converted into an exchange-traded fund (ETF). However, the SEC has been an obstacle for bitcoin spot ETFs to emerge and the U.S. regulator has yet to approve a bitcoin spot ETF. Grayscale Investments’ CEO Michael Sonnenshein recently explained in an interview that the SEC could possibly violate the Administrative Procedure Act if a bitcoin spot ETF is completely denied. The firm’s chief legal officer, Craig Salm, described what the conversion process would look like if the trust became an ETF. “GBTC share prices will likely move to trade in line with NAV,” Salm detailed. “Then, the shares would be uplisted from OTCQX to NYSE Arca,” the chief legal officer added. Grayscale Investments is also asking people to get involved with the effort to get the U.S. regulator to approve the conversion of GBTC to an ETF. Prior to adding Grayscale’s Bitcoin Trust and Ethereum Trust, Robinhood started its European expansion and recently acquired the UK crypto company Ziglu. Additionally, last month the co-founder and CEO of Robinhood, Vladimir Tenev, discussed how DOGE could scale with Tesla’s Elon Musk. What do you think about Robinhood adding GBTC and ETHE? Let us know what you think about this subject in the comments section below. View the full article

On May 5, Tron’s algorithmic stablecoin USDD went live and so far, the fiat-pegged token has been listed on a number of decentralized finance (defi) protocols. Two days later, the Tron DAO Reserve announced it purchased 504.6 million tron (TRX) to back the algorithmic stablecoin, as the project aims to leverage a decentralized forex reserve similar to Terra’s UST reserves. Tron DAO Reserve and Justin Sun Reveal a $38 Million TRX Purchase Terra’s UST reserve system is becoming a popular scheme, and Tron’s USDD stablecoin project is following the pattern. Bitcoin.com News reported on Tron’s algorithmic stablecoin project on April 21, and since then the fiat-pegged crypto asset has officially launched. The project has a number of partners now and USDD is listed on Pancakeswap, Kyberswap, Sunswap, Sun.io, Curve Finance, Uniswap, and Ellipsis. According to tronscan.org, there’s approximately 211,245,005.49 USDD at the time of writing. Statistics show on Saturday, May 7, 2022, Uniswap version three (v3) is the most active exchange to buy and sell USDD. While USDD’s $211 million market capitalization is small potatoes to Terra’s UST ($18.7B), its only been around for two days. While terrausd (UST) saw $990.3 million in 24 hour trades, USDD saw $2.31 million during the past day. USDD’s market valuation is larger than gemini dollar’s (GUSD) $199.5 million market capitalization. On Saturday, the Tron DAO and Tron’s founder Justin Sun announced that the team purchased 504,600,250 TRX at an average price of 0.07727 per unit. The purchase will be used as a reserve asset to “safeguard the overall blockchain industry and crypto market,” Tron DAO Reserve account said on Saturday afternoon. “[Tron DAO Reserve] has done its job,” Tron’s founder Justin Sun tweeted this weekend. Decentralized, Algorithmic, and Centralized — The Quest to Perfect the Stablecoin Continues Even though decentralized and algorithmic stablecoins sound cool in theory, there are concerns and questions about whether or not they can maintain a stable peg for as long as they exist. Of course, some centralized stablecoin projects in the past have failed, and Makerdao’s decentralized DAI stablecoin was tested during the March 12, 2020 ‘Black Thursday’ event. Makerdao uses an over-collateralization (OC) process to secure DAI’s USD peg, and two years before the March 12th event, Bennett Tomlin’s blog post predicted ethereum’s (ETH) price stress that could affect DAI’s USD peg. In November 2020, the OUSD stablecoin issuer, Origin Protocol suffered from a flash loan attack and the coin temporarily lost its peg. During the first week of April, the Waves-based stablecoin neutrino usd (USDN) temporarily dropped from the pegged dollar price. A year ago in April, the stablecoin fei usd’s (FEI) fiat value sunk below a dollar for a short period of time. So far a number of the aforementioned projects rebounded shortly after the lost peg, and the stablecoin projects have maintained a stable peg since then. The Tron DAO Reserve purchase of 504,600,250 TRX was worth $38.99 million at the time of settlement. The TRX purchase also follows the recent acquisition of $1.4 billion worth of bitcoin (BTC) by the Luna Foundation Guard (LFG). The non-profit LFG now holds 80,394 BTC and $100 million worth of AVAX to safeguard UST. Moreover, Tron DAO has partnered with three crypto institutions who are now deemed whitelisted Tron DAO Reserve members. Tron DAO Reserve institutional partners include Poloniex, Alameda Research, and Amber Group, while Tron DAO Reserve acts as USDD’s “early custodian.” What do you think about Tron’s algorithmic stablecoin USDD? What do you think about the project purchasing $38 million in TRX to safeguard the stablecoin’s peg? Let us know what you think about this subject in the comments section below. View the full article

The U.S. Securities and Exchange Commission (SEC) has charged Nvidia Corp. for failing to disclose that crypto mining significantly boosted its revenue. The company agreed to a cease-and-desist order and to pay a $5.5 million penalty. Nvidia Failed to Disclose That Crypto Mining Was a Significant Element of Its Material Revenue Growth The U.S. Securities and Exchange Commission (SEC) announced settled charges against technology company Nvidia Corporation Friday “for inadequate disclosures concerning the impact of cryptomining on the company’s gaming business.” The securities watchdog explained that during consecutive quarters in Nvidia’s fiscal year 2018: The company failed to disclose that cryptomining was a significant element of its material revenue growth from the sale of its graphics processing units (GPUs) designed and marketed for gaming. As demand for and interest in cryptocurrency rose in 2017, Nvidia customers increasingly used gaming GPUs for crypto mining, the SEC noted. The securities regulator explained that Nvidia was aware that the revenue increase stemmed from crypto mining but did not disclose it on Forms 10-Q as required to do. Kristina Littman, chief of the SEC Enforcement Division’s Crypto Assets and Cyber Unit, commented: Nvidia’s disclosure failures deprived investors of critical information to evaluate the company’s business in a key market. Without admitting or denying the SEC’s findings, Nvidia agreed to a cease-and-desist order and to pay a $5.5 million penalty. Earlier this week, the securities regulator said that it has nearly doubled the size of its enforcement division focusing on crypto. Several lawmakers and an SEC commissioner have heavily criticized SEC Chairman Gary Gensler for focusing on crypto enforcement instead of providing clearer regulation. What do you think about the SEC charging Nvidia for failing to disclose the impact of crypto mining on its revenue? Let us know in the comments section below. View the full article

Google is establishing a Web3 team within its cloud unit, noting that “it is a market that is already demonstrating tremendous potential.” A Google executive explained: “We’re providing technologies for companies to use and take advantage of the distributed nature of Web3 in their current businesses and enterprises.” Google Creating Web3 Team Within Cloud Unit Google’s cloud unit is creating a team to build services for developers who are composing their own Web3 software and running blockchain applications, CNBC reported Friday. Amit Zavery, a vice president and head of the Google Cloud, informed employees in an email on Friday that the aim of the initiative is to make the Google Cloud platform the first choice for developers in the field. He wrote: While the world is still early in its embrace of Web3, it is a market that is already demonstrating tremendous potential with many customers asking us to increase our support for Web3 and crypto related technologies. The new Web3 team will consist of employees who have been involved in Web3 internally and on their own, the VP said. James Tromans, a former Citigroup executive who joined Google in 2019, will lead the product and engineering group. He will report to Zavery. The Google Cloud VP told the news outlet: We’re not trying to be part of that cryptocurrency wave directly … We’re providing technologies for companies to use and take advantage of the distributed nature of Web3 in their current businesses and enterprises. Google Cloud launched a new dedicated Digital Assets Team in January to support customers’ needs in “building, transacting, storing value, and deploying new products on blockchain-based platforms,” the group explained at the time. The CEO of Google and its parent company, Alphabet Inc., Sundar Pichai, said in February that blockchain is “such an interesting and powerful technology with broad applications,” emphasizing: “As a company, we are looking at how we might contribute to the ecosystem and add value.” What do you think about Google forming a Web3 team? Let us know in the comments section below. View the full article

The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has issued its first-ever sanctions on a crypto mixer. The mixing service was used by Lazarus Group to process illicit proceeds from the $620 million crypto heist of the online game Axie Infinity, said the Treasury Department. Treasury Department Sanctions Crypto Mixer The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) announced Friday that it has sanctioned crypto mixer Blender.io (Blender). According to the OFAC, this mixing service is used by the Democratic People’s Republic of Korea (DPRK) “to support its malicious cyber activities and money-laundering of stolen virtual currency.” The announcement explains that on March 23, Lazarus Group, a DPRK state-sponsored cyber hacking group, carried out the largest cryptocurrency heist to date, worth almost $620 million, of a blockchain project linked to the online game Axie Infinity. The OFAC added: Blender was used in processing over $20.5 million of the illicit proceeds. The OFAC sanctioned the Lazarus Group on Sept. 13, 2019, and “identified it as an agency, instrumentality, or controlled entity of the government of the DPRK,” the announcement adds. The designation is based on the group’s “relationship to the U.S.- and UN-designated Reconnaissance General Bureau, the DPRK’s premiere intelligence organization.” Under Secretary of the Treasury for Terrorism and Financial Intelligence Brian E. Nelson commented: Today, for the first time ever, Treasury is sanctioning a virtual currency mixer. The investigation by the OFAC also found that Blender facilitated money laundering for Russian-linked malign ransomware groups including Trickbot, Conti, Ryuk, Sodinokibi, and Gandcrab. The U.S. Treasury Department clarified: While most virtual currency activity is licit, it can be used for illicit activity, including sanctions evasion, through mixers, peer-to-peer exchangers, darknet markets, and exchanges. “This includes the facilitation of heists, ransomware schemes, and other cybercrimes,” the Treasury noted. The announcement details that as a result of the sanctions, all property and interests in property of Blender.io, in the U.S. or in the possession or control of U.S. persons, are blocked and must be reported to the OFAC. Moreover, any entities that are 50% owned or more by one or more blocked persons are also blocked, and all transactions by U.S. persons or within the U.S. involving designated or blocked persons are prohibited. What do you think about the OFAC sanctioning the crypto mixer? Let us know in the comments section below. View the full article

Russia’s ability to employ cryptocurrencies to circumvent international sanctions is restricted by the limited size of the crypto market, according to Moody’s. Despite increased use in small transactions, low liquidity is another factor preventing Russians from exploiting the utility of bitcoin and the like. Crypto Assets Not Viable Option for Sanctioned Russia, Moody’s Report Suggests Western sanctions, imposed on Russia over its invasion of Ukraine, have raised questions whether Russian citizens and government can utilize cryptocurrencies to bypass the restrictions and conduct financial transactions, Moody’s Investors Service notes in a report published this week. The agency’s bond credit rating unit highlights the recent increase in the volume of small transactions made by Russians. But the authors also say that despite their anonymous nature, crypto assets are not that useful when it comes to evading financial penalties. They insist: Given the ruble-to-crypto market’s limited size and low liquidity, we believe that, for now, crypto assets are unlikely to provide a viable and efficient solution for individuals to circumvent sanctions. Moody’s also recalls that officials in Moscow have recently indicated that Russia may accept payments in cryptocurrency for its oil and gas exports. However, its experts think that again the market’s current size and insufficient liquidity would undermine this option, too. Furthermore, crypto platforms are often obliged to comply with anti-money laundering and know your customer requirements and they usually check customers during onboarding. “A centralized digital asset venue with well-established screening and compliant onboarding processes would be able to flag and disable blacklisted accounts,” the analysts point out. While illicit activities of bad actors that occur off centralized crypto exchanges or on unregulated digital asset platforms could remain undetected and unreported to authorities, such activities are not large enough at the moment to enable sanctioned countries like the Russian Federation to avoid the restrictions Moody’s concludes. Do you think Russia is trying to use cryptocurrencies to circumvent financial sanctions? Tell us in the comments section below. View the full article

The anti-monopoly service of Russia has suggested that Russians minting digital currencies at their homes should pay more for the spent electrical energy. The proposal comes after the submission of a bill tailored to regulate cryptocurrency mining to the Russian parliament. Russian Miners Using Household Electricity Should Pay Higher Bills, Anti-Monopoly Body Says Russia’s Federal Anti-monopoly Service (FAS) has designed a scheme to charge amateur crypto miners increased rates for the electricity they use. The agency insists its approach to solving the problem with rising consumption in residential areas, due in part to the growing popularity of mining, can reduce the load on the electrical networks. Authorities in the Russian Federation maintain differentiated electricity tariffs depending on the status and location of consumers, the Rossiyskaya Gazeta daily explains in an article. Businesses subsidize household prices through their own tariffs, which can be up to two times higher than the rates for the general population. Private consumers often try to exploit their low rates to earn money by powering anything from car repair shops to woodworking shops, the Community of Energy Consumers association notes. As a result, grids in residential areas are overloaded as they are not designed to cope with the excessive power usage, which has also spiked due to home mining. The FAS now wants to introduce a threshold for electricity consumption, above which higher rates will be imposed. Thus, according to the anti-monopoly service, household needs will be separated from commercial ones. The consumption of various household appliances, including those with increased power usage like air conditioning units, will be accounted for. Each Russian region will be able to set the amount of electricity that will be supplied at preferential rates, taking into account factors such as power usage for heating in the cold months and the length of the heating season, the FAS pointed out. In December, the federal government allowed regional authorities to independently determine the local electricity tariffs. Power supply networks in the residential areas of many regions with historically low electricity prices, such as Irkutsk Oblast, Krasnoyarsk Krai, and Dagestan, have suffered breakdowns due to the spread of improvised crypto mining farms minting coins in basements and garages. The introduction of differentiated tariffs is expected to reduce interest in mining and other ways of earning at the expense of subsidized household electricity. The agency hopes the new approach can also lower production costs for businesses calculated in the prices of their goods and services, ultimately suppressing inflation. The proposal comes as Russian lawmakers are reviewing a new draft law on cryptocurrency mining. The legislation aims to regulate the industry in the country, which is rich in cheap energy resources and favorable climatic conditions. Its competitive advantages can potentially turn Russia into a global mining leader, officials have acknowledged. What are your thoughts on the new electricity pricing that will affect crypto miners in Russia? Tell us in the comments section below. View the full article

The founders of Bitmex have been ordered to pay $30 million “for illegally operating a cryptocurrency derivatives trading platform and anti-money laundering violations.” Arthur Hayes, Benjamin Delo, and Samuel Reed must pay $10 million each. Bitmex’s Founders Fined $30 Million The Commodity Futures Trading Commission (CFTC) announced Thursday that the U.S. District Court for the Southern District of New York has ordered Bitmex’s founders to pay a total of $30 million dollars “for illegally operating a cryptocurrency derivatives trading platform and anti-money laundering violations.” Noting that the three Bitmex co-founders are Arthur Hayes, Benjamin Delo, and Samuel Reed, the CFTC clarified: The orders require each to pay a $10 million civil monetary penalty, and also enjoin Hayes, Delo, and Reed from further violations of the Commodity Exchange Act (CEA) and CFTC regulations, as charged. The orders stem from a CFTC complaint filed in October 2020 against Bitmex and its three founders. The CFTC resolved the action against Bitmex in August 2021 that “incorporated a $100 million civil monetary penalty and injunctions against future violations of the CEA and CFTC regulations,” the derivatives watchdog detailed. The U.S. Attorney’s Office for the Southern District of New York also “indicted Hayes, Delo, Reed, and one other individual on charges of willfully causing Bitmex to violate the Bank Secrecy Act and conspiracy to commit that same offense,” the CFTC noted, elaborating: Hayes, Delo, and Reed have entered guilty pleas to count one of the indictments against them. The three are scheduled to be sentenced in the upcoming weeks, the derivatives regulator added. What do you think about Bitmex’s co-founders having to pay $30 million? Let us know in the comments section below. View the full article

A U.S. senator has introduced a bill to prohibit the Labor Department from issuing a regulation or guidance that limits the type of investments investors can choose in their retirement plans, including cryptocurrency. “Today, the Biden administration is targeting cryptocurrency. Which investment class is next?” the lawmaker stressed. Financial Freedom Act The issue of what investments Americans can put in their retirement accounts has become a hot topic in Washington. In March, the Department of Labor issued guidance warning employers and investment firms against allowing cryptocurrency investments in retirement plans. Responding to the Labor Department’s crypto warning, U.S. Senator Tommy Tuberville (R-AL) introduced the Financial Freedom Act Thursday. The lawmaker described the bill as “legislation to prohibit the U.S. Department of Labor (DOL) from issuing a regulation or guidance that limits the type of investments that self-directed 401(k) account investors can choose through a brokerage window.” Senator Tuberville explained, “Folks work for decades, live within their means, and invest wisely so they can retire comfortably,” elaborating: Now, the Biden administration has taken it upon itself to dictate what assets are viewed worthy of retirement investment, taking the decision away from individual investors by issuing regulatory guidance targeting cryptocurrency. “This is government overreach at its finest. The government has no business standing in the way of retirement savers who want to make their own investment choices,” he emphasized. “When you’ve earned your paycheck, how you invest your money should be your decision. My legislation makes sure that is the case.” Following the introduction of his bill, CNBC published an opinion piece authored by the senator. “Today, the Biden administration is targeting cryptocurrency. Which investment class is next?” he wrote, adding: Whether or not you believe in the long-term economic prospects of cryptocurrency, the choice of what you invest your retirement savings in should be yours — not that of the government. Fidelity Investments, a major 401(k) plan administrator, also ignored the warning by the Labor Department. Shortly after the department’s warning, the company announced its plan to offer bitcoin investments in 401(k) accounts. The financial services firm’s decision has prompted two U.S. senators, including Elizabeth Warren, to send a letter to its CEO demanding answers about why the company is ignoring the government’s crypto warning. Do you think the Labor Department should be able to dictate what Americans can invest in their retirement accounts? Let us know in the comments section below. View the full article

The last five weeks has been brutal for digital currencies as more than 21% has been shaved off the crypto economy’s fiat value since March 27. While all the crypto assets combined shed roughly 0.8% in the last 24 hours, bitcoin has lost 9.4% since last week and seven day statistics show ethereum has dropped 8.1% against the U.S. dollar. Since the crypto economy’s significant losses, the stablecoin UST has managed to take the top ten market capitalization among 13,439 crypto assets. 3 Stablecoins Hold Top 10 Positions, Terrausd Enters the 10th Spot Today, three stablecoins now command a position in the top ten largest cryptocurrency market capitalizations. While tether (USDT) and usd coin (USDC) have been in the top ten for quite some time, Terra’s UST is now holding the top ten spot since the crypto economy’s market conditions turned red. Another fundamental that pushed UST higher is the fact that the algorithmic stablecoin’s market valuation expanded by 12.3% over the last 30 days. There hasnt been another time when three stablecoins command a top ten position and fiat-pegged tokens have been a prominent force in the crypto ecosystem. Tether (USDT) has a significantly large $83.3 billion market capitalization, which represents 4.78% of the entire crypto economy. USDC has $48.7 billion market capitalization, which equates to 2.79% of the $1.7 trillion crypto economy. Terrausd (UST) has a valuation of around $18.76 billion and it represents 1.07% of the aggregate value of all 13,439 crypto assets combined. 5 Crypto Assets Represent 66.44% of the Crypto Economy, BUSD and DAI Hold Positions in the Top 20 Between all three of the stablecoins in the top ten, USDT, USDC, and UST represent 8.64% of the crypto economy’s fiat value. That’s pretty large seeing how bitcoin’s (BTC) market valuation is 39.2% and ethereum’s (ETH) capitalization is 18.6% of today’s $1.7 trillion total. BTC, ETH, USDT, USDC, and UST equate to 66.44% of the entire crypto economy’s capitalization on May 6, 2022. In addition to the prominence of three stablecoins in the top ten crypto market positions, the Binance stablecoin BUSD is currently in the 11th spot with a $17.5 billion market cap. Besides USDT, USDC, and UST, there’s only two stablecoin projects in the top 20 largest crypto market valuations. The stablecoins include BUSD and Makerdao’s decentralized stablecoin DAI. Years ago when stablecoins were scoffed at and taken for granted, it’s likely no one thought the fiat-pegged token project’s would be top ten contenders. Furthermore, the entire lot of stablecoins today is worth $189.52 billion. Out of today’s $110.46 billion in global trade volume, stablecoin swaps represent $75.82 billion of Friday’s volume. What do you think about the fact that three stablecoins are now top ten contenders? Let us know what you think about this subject in the comments section below. View the full article

Two U.S. senators, including Elizabeth Warren, have sent a letter to Fidelity Investments demanding answers regarding the company’s decision to allow bitcoin investments in 401(k) retirement plans. “Investing in cryptocurrencies is a risky and speculative gamble, and we are concerned that Fidelity would take these risks with millions of Americans’ retirement savings,” the lawmakers wrote. US Lawmakers Concerned About Fidelity Allowing Bitcoin Investments in 401(k) Plans U.S. Senator Elizabeth Warren (D-MA) has sent a letter to Abigail Johnson, the CEO of Fidelity Investments, questioning the financial services giant’s plan to allow bitcoin investments in 401(k) accounts. The letter, dated May 4, is also signed by U.S. Senator Tina Smith (D-MN). The lawmakers wrote: We write to inquire about the appropriateness of your company’s decision to add bitcoin to its 401(k) investment plan menu and the actions you will take to address ‘the significant risks of fraud, theft and loss’ posed by these assets. The letter notes that Fidelity’s announcement followed the Department of Labor expressing “serious concerns” about cryptocurrency investment options in 401(k) plans, citing “significant risks of fraud, theft and loss” posed by crypto assets. Senators Warren and Smith stressed: In short, investing in cryptocurrencies is a risky and speculative gamble, and we are concerned that Fidelity would take these risks with millions of Americans’ retirement savings. The two senators proceeded to highlight the volatility of bitcoin compared to stocks in the S&P 500. They also noted that the price of the cryptocurrency was influenced by Tesla CEO Elon Musk’s tweets and the “high concentration of bitcoin ownership and mining exacerbates these volatility risks.” The lawmakers additionally warned: We are also concerned about Fidelity’s potential conflicts of interest and the extent to which they may have affected the decision to offer bitcoin. The letter references Fidelity’s announcement in 2017 that it had been mining cryptocurrency. Since then, the financial services firm has ramped up its crypto offerings, including offering its own crypto fund for wealthy customers. With the latest announcement, the senators said: “Fidelity has decided to move full speed ahead with supporting bitcoin investments,” claiming that the firm is doing so “Despite a lack of demand for this option — only 2% of employers expressed interest in adding cryptocurrency to their 401(k) menu.” In conclusion, the two senators asked Fidelity five questions and requested answers by May 18. They want to know why Fidelity ignores the Labor Department’s crypto warning, the details of the company’s bitcoin risk assessment, the fees customers will incur, how Fidelity addresses its own conflicts of interest, and how much the company has earned from crypto mining activities. What do you think about Senator Elizabeth Warren questioning Fidelity on its decision to allow bitcoin investments in retirement accounts? Let us know in the comments section below. View the full article

Square Enix, the influential Japanese gaming and publishing company, has sold its Western studios and some of its Western intellectual properties (IPs) to Embracer Group. The deal, which values these properties at $300 million, will allow the company to focus on the development of new businesses more aligned with the refined direction of the company, which includes blockchain, the cloud, and AI as core elements. Square Enix Sells Assets to Refocus Its Business Square Enix, one of the most recognized Japan-based game publishing and development companies, announced the sale of part of its assets earlier this week to finance new operations that include blockchain-based endeavors. The creator of franchises like Final Fantasy, Kingdom Hearts, and Dragon Quest, is shedding its Western studios and IPs to the Embracer Group. The deal, which includes the sale of studios like Crystal Dynamics and Eidos, makers of Tomb Raider, is valued at $300 million, and also includes more than 50 game IPs. On the objective of this sale, the company stated in a press release that: The transaction will assist the company in adapting to the changes underway in the global business environment by establishing a more efficient allocation of resources, which will enhance corporate value by accelerating growth in the Company’s core businesses in the digital entertainment domain. Furthermore, the company explains that this transaction “enables the launch of new businesses by moving forward with investments in fields including blockchain, AI, and the cloud.” The deal aims to aid in the management of the company, which will now be comprised almost entirely of Japan-based development studios, retaining some minimal businesses abroad. Blockchain Pivot This move is being directed to put ideas into play that Square Enix president Yosuke Matsuda has been announcing since last year, when the company included blockchain as an important part of its midterm business plan. The executive has declared the company is very interested in the application of blockchain technologies to gaming and the benefits this might have for players who contribute actively to these experiences. On the relevance of such new technologies, Matsuda has declared that by applying blockchain tech to incentivize modders of games, the creation of more original content can be brought about, hinting at the application of token economies in these games. Square Enix has been one of the most optimistic companies about blockchain and the play-to-earn model, alongside Ubisoft, which has also started to include NFT elements in some of its games. What do you think about the new direction that Square Enix is taking? Tell us in the comments section below. View the full article

The Spanish securities regulator, the CNMV, has ordered Binance to stop offering cryptocurrency derivative products to customers in the country. According to local media, the crypto exchange giant has followed the orders of the regulator, withdrawing these products from its customers in Spain. Spanish Securities Regulator Sets Eyes on Binance The CNMV, which is the Spanish securities regulator, is putting more pressure on exchanges offering cryptocurrency-linked derivatives in the country. Binance, one of the biggest exchanges in the world by volume traded, has been required to drop the offer of cryptocurrency-related derivatives, like futures contracts, for customers in the country, according to local media. The purpose of the measure is ostensibly to protect investors using such products as investment tools. The regulator warned last year about the danger of derivatives, stating they increase the complexity of trading operations, and also can cause investors to lose even more than the initial investment capital. Binance has reportedly withdrawn all of its derivatives offerings from its investments page for Spanish users, preventing them from opening new operations. However, the operations that were already open are being maintained in the same state, as the exchange awaits more feedback from the regulator. Gray List Binance is following the orders of the Spanish regulator as a way of getting the needed permits to establish its operations in the country. Currently, the exchange is in regulatory limbo, being mentioned in a gray list that was published last year with several cryptocurrency exchanges that also operate in Spain. However, Binance has been in talks with the CNMV to get out of this current state and get approval from the Bank of Spain. The exchange has been in talks to get licenses from the Bank of Spain and the securities regulator since January, but there has not been a positive answer from either as of writing. At the time, Alberto Ortiz, country manager of Binance in Spain, declared: By joining the Bank of Spain registry we hope to encourage other firms to do the same. However, other exchanges have already been greenlighted by the Bank of Spain. Bit2me, a local exchange, was the first one to receive this license, and others have followed since. What do you think about the restriction imposed by the CNMV on Binance in Spain? Tell us in the comments section below. View the full article

Following the Federal Reserve’s rate hike on Wednesday, economist Peter Schiff has had a lot to say since the U.S. central bank raised the benchmark rate by half a percentage point. Schiff further believes we are in a recession and says “it will be much worse than the Great Recession that followed the 2008 Financial Crisis.” Peter Schiff Says ‘Fed Cant Win a Fight Against Inflation Without Causing a Recession’ While many analysts were shocked by the U.S. Federal Reserve’s move, since it was the largest rate hike since 2000, a report by schiffgold.com says the increase was hardly “aggressive,” and akin to a “weak swing that looks more like shadow boxing.” Moreover, the report explains Powell’s commentary this week contained some “subtle changes,” which suggest there might be “some economic turbulence on the horizon.” Peter Schiff doesn’t think the Fed can beat the current inflationary pressure America is dealing with today. “Not only can’t the Fed win a fight against inflation without causing a recession, it can’t do so without causing a far worse financial crisis than the one we had in 2008,” Schiff explained on Thursday. “Worse still, a war against inflation can’t be won if there are any bailouts or stimulus to ease the pain,” the economist added. I remember how strong #StockMarket pundits and economists thought the U.S. economy was right before the 2008 Financial Crisis, even though we were already in The Great Recession at the time. It wasn't strong, it was a bubble about to pop. Today's economy is an even bigger bubble! — Peter Schiff (@PeterSchiff) May 5, 2022 Schiff’s comments come the day after the Fed increased the federal funds rate to 3/4 to 1 percent. Following the rate increase, the stock market jumped a great deal, fully recovering from the prior day’s losses. Then on Thursday, equity markets shuddered, and the Dow Jones Industrial Average had its worst day since 2000. All the major stock indexes suffered on Thursday and cryptocurrency markets saw similar declines. “If you think the stock market is weak now imagine what will happen when investors finally realize what lies ahead,” Schiff tweeted on Thursday afternoon. “There are only two possibilities. The Fed does what it takes to fight inflation, causing a far worse financial crisis than 2008 or the Fed lets inflation run away.” Schiff continued: The Fed created the 2008 financial crisis by keeping interest rates too low. Then it swept its mess under a rug of inflation. Now that the inflation chickens it released are coming home to roost, it must create an even greater financial crisis to clean up an even bigger mess. Schiff Criticizes Paul Krugman, Fed Tapering Includes Monthly Caps Schiff is not the only one that believes inflation can’t be tamed, as many economists and analysts share the same view. The author of the best-selling book Rich Dad Poor Dad, Robert Kiyosaki, recently said hyperinflation and depression are here. The well-known hedge fund manager Michael Burry tweeted in April that the “Fed has no intention of fighting inflation.” While criticizing the U.S. central bank, Schiff also railed against the American economist and public intellectual, Paul Krugman. “Back in 2009, [Paul Krugman] foolishly claimed that QE wouldn’t create inflation,” Schiff said. “Setting aside that QE is inflation, Krugman prematurely took credit for being right as he didn’t understand the lag between inflation and rising consumer prices. The CPI is about to explode higher.” Moreover, schiffgold.com author Michael Maharrey scoffed at the Fed’s recent tapering announcement as well. Maharrey further detailed how the Fed plans to reduce the Federal Reserve’s securities holdings over time. “As far as the nuts and bolts of balance sheet reduction go,” Maharrey said, “the central bank will allow up to $30 billion in U.S. Treasuries and $17.5 billion in mortgage-backed securities to roll off the balance sheet in June, July, and August. That totals $45 billion per month. In September, the Fed plans to increase the pace to $95 billion per month, with the balance sheet shedding $60 billion in Treasuries and $35 billion in mortgage-backed securities.” What do you think about the recent commentary from Peter Schiff concerning the Fed fighting inflation and the rate hike? Let us know what you think about this subject in the comments section below. View the full article

PRESS RELEASE. Klein Finance, a stablecoin liquidity provider and exchange platform built on KCC (Kucoin Community Chain), announced the opening of its funding program. It has already received a multi-million dollars investment from KuCoin Ventures and KCC chain. Klein Finance is an efficient decentralized trading platform for digital assets built on KCC (Kucoin Community Chain), which aims to enable digital assets to be traded and staked for rewards in a secure and stable on-chain environment with low slippage, good depth, and low fees. 1. Klein Finance’s mixed liquidity pool, which provides a cross-market mechanism for creating stablecoins, uses a license-free trading block at the bottom that can accommodate multiple stablecoins to non-stablecoins and multiple non-stablecoins to multiple non-stablecoins. 2. Trading mining and liquidity mining will be rewarded to traders, liquidity providers and partners according to certain reward rules, working together to achieve the goal of profitable agreements. 3. Klein Finance provides a cross-market mechanism for creating stablecoins, and the underlying uses a license-free trading block that can accommodate a wide range of exchange needs. 4. The dynamic pegging approach using AMM creates liquidity for assets that are not necessarily pegged to each other in a way that is more efficient than the invariance of (m-n=λ). This creates liquidity that is 5 to10 times higher than other traditional decentralized exchange invariants, while also generating higher profits for the liquidity provider. It is understood that Klein Finance project technology development has been largely completed and the new funds will be used for project promotion and expansion of the team size, subsequent opening of the technology and expansion of its structured products. It is reported that Klein Finance’s financing plan will continue. 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

While precious metals, stocks, and cryptocurrencies saw a significant downturn this week, the U.S. dollar tapped a 20-year high against the Japanese yen and a number of other currencies. The greenback has seen five weeks of consecutive gains following the Federal Reserve’s 50 basis point rate hike on Wednesday. Greenback Climbs Higher Amid Economic Uncertainty Before the U.S. central bank’s rate hike, the U.S. dollar tapped a two-year high and a 20-year high against the Japanese yen last week. Economic concerns are tied to the ongoing and strict Covid-19 lockdowns in China and the Ukraine-Russia war. Reports note that Beijing may plan to mass-test 20 million people for Covid-19 and the Chinese capital could get locked down. Moreover, Refinitiv data indicates the market is predicting a 90% chance the Fed will implement a 75 bps hike in June. A majority of financial institutions and market participants correctly predicted Wednesday’s 50 bps increase. Futures markets are forecasting that the chance of a 75 bps hike taking place in June is around 75%. Statistics show the U.S. dollar index (DXY) reached a 20-year high against a basket of international fiat currencies this past week. Besides the 20-year high against the yen, sterling saw the deepest impact against the greenback. Kit Juckes, a currency strategist at Societe Generale SA, says the U.S. dollar has a knock-on impact. “The dollar’s rally is like an uphill avalanche,” Juckes said on May 4. “Just as an avalanche picks up snow, rocks, trees and anything else in its path as it slides down a mountain, the dollar’s rally has the knock-on impact of causing more currencies to weaken. A broad-based move, though, tightens global monetary conditions, and so downside economic risks grow.” Strong Labor Market and Nonfarm Payrolls Report Could Change Fed’s Decision Investors think the recently published Nonfarm Payrolls (NFP) report numbers could affect the Fed’s next rate hike decision. ”A strong payrolls report could perversely push the market to price in more tightening as the Fed reduced its optionality at its most recent meeting,” analysts at TD Securities said in a statement on Friday. The TD Securities analysts added: That leaves a resilient USD vs EUR and yen very much the path of least resistance. A softer wages print should help to temporarily take the edge off but this will be short-lived until evidence of a peak/moderation in CPI emerges. The combination of a strong dollar and the recently published NFP numbers, could make the predicted 75 bps rate increase become a reality. Although it’s still uncertain, analysts at ANZ Bank believe this could be the case. “Whilst the Fed is not currently considering a 75 bps rate increase, that guidance is based on expectations that the trend increase in monthly Nonfarm payrolls will slow and core inflation is stabilising. But there are no guarantees at all that that will be the case.” The ANZ Bank researchers concluded: Demand for labour in the U.S. remains very strong and core services inflation is rising steadily. The April non-farm payroll and employment reports — [will] carry a lot of significance. What do you think about the strong dollar and the chance the Fed will increase the benchmark interest rate by 75 bps? Let us know what you think about this subject in the comments section below. View the full article

WAVES dropped by as much as 17% in today’s session, as crypto markets as a whole traded mostly in the red. SOL and NEAR were two notable tokens to fall in today’s session, with AVAX also falling by double digits today. WAVES WAVES dropped for a second consecutive session, as prices moved towards the long-term support level on Friday. Following yesterday’s false breakout of the $16.70 resistance level, WAVES/USD slipped to an intraday low of $12.90 earlier in the day. This drop sees prices over 17% lower than Thursday’s peak, and now on the verge of hitting a floor of $11.50. It was only two days ago we spoke about WAVES being one of the biggest bullish movers, after it rose from this support, however it appears as if the tables have once again turned. Looking at the chart, this decline came as the price strength failed to break out of the resistance of 40.10 on the 14-day RSI. Should we hit this support point, you might see some bulls attempt to re-enter, in a similar fashion as to what occurred on Wednesday. Avalanche (AVAX) Although SOL fell to a one-month low today, with NEAR also dropping by over 15%, AVAX was Friday’s second-biggest mover. The world’s thirteenth-largest cryptocurrency fell to an intraday low of $55.42, following yesterday’s peak at $64.16. This drop saw prices hit their lowest point in over four months, when prices fell below $55 back on January 23. Looking at the chart, prices marginally broke out of support at $56.50 today, however like four months ago, bulls somewhat pushed prices back above the floor. Another floor which has thus far been steady is the support point within the 14-day Relative Strength Index, which currently sits at 34.20 Providing this level of support remains firm, we could potentially see a rebound heading into the weekend. Will bearish pressure continue to send crypto prices lower this week? Let us know your thoughts in the comments. View the full article

With the help of the Bored Ape Yacht Club’s Otherside land sale, non-fungible token (NFT) sales have increased a great deal this week. NFT sales increased 74.77% during the last seven days, capturing $1.71 billion in sales volume among 266,918 traders. 7-Day NFT Sales Volume Jumps 74% to $1.71 Billion, Otherdeed NFT Collection Captures $787 Million in Global Sales NFTs have done well this week as far as sales are concerned, and across 1,075,588 transactions during the last seven days, $1.71 billion in sales volume has been recorded. The sales volume is 74.77% higher than the $981 million in NFT sales recorded last week. The $1.71 billion stemmed from 16 different blockchain networks, and Ethereum saw an 86.30% increase in ETH-based NFT sales this week. NFT sales that derived from the Polygon blockchain jumped 87.66% higher than the week prior as well. Fantom-based NFTs also saw a notable double-digit week-long percentage increase of around 52.47%. Some of the most expensive NFT sales this week were sold for prices between $852.5K and $1.12 million. The top NFT collectible sale during the last seven days was Bored Ape 17, which sold for 410 ether or $1.12 million. The second most expensive NFT sale this week was Bored Ape 2980, which sold for 381 ether or just over $1 million. The next three that followed the two Bored Ape Yacht Club (BAYC) sales were all Otherside deeds. Otherdeed 33 sold for 333.33 ether or $979K, Otherdeed 24 sold for 333 ether or $952K, and Otherdeed 9 sold for 300 ether or $852.5K. The Otherdeed NFT collection sales took the top position this week as far as the top sales volume is concerned. 16,384 Otherdeed NFT buyers spent $787.55 million across 30,752 transactions. The second position was held by BAYC which captured $153.7 million in seven-day sales, up 94.93% since last week. Mutant Ape Yacht Club (MAYC) saw a 39.41% increase this past week with $126.4 million in global sales. The NFT collection Beanz took the fourth spot, jumping 388.31% and capturing $69.59 million in sales volume. The fifth most prominent in terms of seven-day sales was Doodles, which increased 222.34% since last week to this week’s $43.1 million in sales. BAYC still has the most expensive floor value out of all the NFT collections today, with its 104.8 ETH floor value. BAYC is followed by Proof Collective (94.1 ETH), Cryptopunks (60.95 ETH), Bored Ape Chemistry Club (47.49 ETH), and Moonbirds (26.0 ETH). All of the top five NFT collection floor values have dropped 8 to 16.1% since last week. The only NFT collection that saw a seven-day floor price increase last week was Doodles, jumping 3.1% higher to 22.77 ETH. What do you think about this week’s NFT sales increasing 74.77% higher than last week’s sales? Let us know what you think about this subject in the comments section below. View the full article

Bitcoin fell to its lowest level in over two months, as Friday’s non-farm payrolls report showed an addition of 428,000. It was expected that last month’s payrolls would show an increase of 391,000 jobs — lower than March’s figure of 431,000. ETH also fell on the news, hitting a six-week low. Bitcoin Bitcoin fell by nearly 10% in today’s session, as traders continue to react to recent action by the Federal Reserve to hike interest rates. Today’s drop, which sees prices of BTC/USD hit an intraday low of $35,714.30, also comes as markets were preparing for the latest non-farm payrolls report. Friday’s drop sees bitcoin slip for a second consecutive session, with prices now trading at their lowest level since February 24. Despite slipping to a more than two-month low, there could be more declines ahead, as prices appear to be moving toward a floor of $34,050. Looking at the chart, this latest fall in prices has pushed the RSI towards a one-month low of 35.50, which is a point that has acted as a floor in the past. Should this support fail to hold firm, then we will likely see that floor of $34,050 hit in the next few days. Ethereum ETH was also submerged by the latest red wave in crypto markets, as prices moved towards a six-week low. The world’s second-largest cryptocurrency fell to an intraday low of $2,668.60, which is its lowest level since March 16. Today’s low took prices close to the long-term support level of $2,660, after breaking out of a higher price floor of $2,780. As prices dropped, relative strength also gave way, with the 14-day RSI slipping below its own floor of 42.80. Should this floor also fall apart, then we could see even more lows in ETH, with bears already targeting a $2,500 support point. Overall, since the start of April, ETH/USD has moved from a peak of $3,560, to now trading almost $1,000 lower. Will we see ETH continue to fall as we head into the weekend? Leave your thoughts in the comments below. View the full article

Authorities in Georgia are now holding discussions with industry representatives to finalize a bill designed to regulate coin trading, among other crypto-related activities. The legislation will be presented to the Georgian society this fall at the latest, a top central bank official announced. Central Bank of Georgia Talks Crypto Regulation With Market Players The National Bank of Georgia (NBG) is fine-tuning a draft law tailored to establish a legal framework for certain operations with cryptocurrencies with the help of interested parties from the sector. Public and business officials are currently holding talks on the new legislation, the bank’s Vice Governor Papuna Lezhava revealed, quoted by Sputnik Georgia. He stated: We are working on a bill regulating cryptocurrency, and now it is at the stage of consideration with market participants. The final document will be made public either in the summer or in the fall. The law will regulate several crypto-related areas at once, the central bank official elaborated. These include consumer protection and cryptocurrency trade. Its provisions will introduce rules for trading platforms such as digital assets exchanges. However, they do not concern crypto miners and their activities, Lezhava noted. Cryptocurrency mining became a popular business and an alternative income source for many Georgians a few years ago. A study by the Cambridge Center for Alternative Finance (CCAF), published in 2018, ranked Georgia second in the world in terms of amount of electricity used to extract digital coins. In April, NBG Governor Koba Gvenetadze told the Georgian business news portal the Financial that the monetary authority was planning to regulate transactions in the crypto space of the Southern Caucasus country. He revealed that companies in the industry may expect a licensing regime. At the same time, the regulator intends to ban traditional financial institutions from providing crypto-related services. Gvenetadze also pointed out that the amendments the central bank is working on are in compliance with the requirements of the intergovernmental Financial Action Task Force on Money Laundering (FATF). Do you expect Georgia to adopt bitcoin-friendly regulations and become a crypto hotspot? Tell us in the comments section below. View the full article

New Zealand-based venture capital firm Global From Day 1 (GD1) recently said it had launched a $5 million Web3 and crypto-focused venture capital fund to back local startups. The fund will invest in pre-seed to Series A companies across decentralized finance (defi), decentralized autonomous organizations (DAOs), non-fungible tokens (NFTs), and Web3. GD1’s Web3 and Crypto Strategy In a boost for New Zealand-based startups and local investors, GD1 has launched a $5 million Web3 and crypto-focused venture capital fund. The fund, known as GD1 Crypto Fund 1, will be led by cryptocurrency and Web3 expert Nawaz Ahmed as a general partner. Remarking on what the incoming general partner is expected to bring, Vignesh Kumar, the co-managing partner at GD1, said in a press release: One of our goals at GD1 has always been to diversify into new focus areas and continuously expand our knowledge base by onboarding individuals with diverse and interesting experiences and so we’re thrilled to have Nawaz join the GD1 team to help lead our web3/crypto strategy. Kumar added that Nawaz’s work grants GD1 a vital platform to test the fund’s “thesis around the concept of permissionless innovation that web3 is built on.” According to the statement, the fund’s first close is set for June and there are expectations it will be oversubscribed with early commitment from international Limited Partners. The statement, meanwhile, clarified that the GD1 Crypto Fund 1 is separate from GD1 Fund 3. Missed Opportunity For his part, Ahmed spoke of how of local startups appeared to only seek funding from offshore sources. He said: “In the past, the very best NZ companies in this space have easily been able to raise funds globally and haven’t needed to rely on local investment. This is a missed opportunity for NZ-based funds and one we’d like to be the first to explore.” As Ahmed acknowledges, several funds specifically focused on the metaverse, Web3, and cryptocurrency have sprouted over the past few years. However, unlike GD1’s fund, some of the global venture capital groups like Griffin Gaming Partners, a VC firm specializing in gaming-related investments, have launched larger funds. As recently reported by Bitcoin.com News, Griffin Gaming Partners has set aside $750 million to fund Web3 and blockchain projects. Earlier this year, Electric Capital is reported to have raised $1 billion to back crypto startups and to buy tokens, while Dragonfly Capital closed its fund for an oversubscribed $650 million. Meanwhile, the New Zealand VC’s statement revealed that GD1 will be investing in pre-seed to Series A companies across decentralized finance, decentralized autonomous organizations, non-fungible tokens, Web3, and crypto infrastructure. What are your thoughts on this story? Tell us what you think in the comments section below. View the full article

The International Money Fund (IMF) has added its voice to institutions and parties criticizing the Central African Republic (CAR)’s decision to adopt bitcoin. The IMF insists the adoption poses legal economic challenges not only to the country but to the region as well. CAR’s Bitcoin Adoption Has Financial and Legal Issues The IMF has reportedly said the CAR’s recent decision to adopt bitcoin poses a number of challenges for the country and the region. The comments by the global lender mark the first time it has publicly reacted to CAR’s decision to make bitcoin legal tender. As has been reported by Bitcoin.com News, the IMF was and is still critical of a similar decision that was made by El Salvador in 2021. Following the initial announcement, the global lender warned the adoption of bitcoin would pose several macroeconomic, financial, and legal issues. In January 2022, the IMF urged El Salvador to drop the bitcoin law, but this was rejected by the latter. Reacting to the CAR’s decision, the IMF again warned the African country’s adoption of bitcoin posed legal and economic challenges. “The adoption of Bitcoin as legal tender in C.A.R. raises major legal, transparency, and economic policy challenges. IMF staff are assisting regional and Central African Republic’s authorities in addressing the concerns posed by the new law,” the IMF reportedly said in emailed responses to Bloomberg. CAR’s Low Internet Penetration Rate While authorities in the African country have insisted the adoption of bitcoin as legal tender will help drive economic growth, opponents have argued otherwise. They point to the CAR’s low internet penetration rates as well as the state of its economy. Meanwhile, the Bloomberg report suggests the CAR’s decision to adopt bitcoin was hastily made, and without consulting stakeholders. The move to adopt bitcoin has reportedly been slammed by the regional central bank, the Bank of Central African States. What are your thoughts on this story? Tell us what you think in the comments section below. View the full article