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Several reports that have recently surfaced have revealed the extent of losses that crypto platforms and users faced during 2023 as a product of exploits and hacks. TRM Labs’ latest report states that the number ascended to $1.7 billion, while De.fi, another Web3 security firm, states that this number reaches higher, to $2 billion. Reports Share the Extent of Damage Caused by Hacks and Exploits in 2023 At the end of 2023, several reports have surfaced estimating the funds lost due to hacks and exploits during the year. In its latest report, TRM Labs, a blockchain security analytics firm, states this number reached $1.7 billion by mid-December, with the top ten hacks netting 70% of the funds stolen. Incidents classified as “infrastructure attacks,” which include stealing private keys that give hackers access to a crypto project’s servers or using software to steal funds, contributed almost 60% of the numbers reported. While $1.7 billion might seem astronomical, it is less than half of the $4 billion that criminals stole last year, aided by a $600 million mega hack against the Axie Infinity linked Ronin bridge. Comparatively, the most significant incidents during this year, which involved Euler Finance, Multichain, and Poloniex, only contributed approximately $100 million each to this number. TRM Global Head of Policy and Government Affairs Ari Redbord acknowledged the work behind this improvement. He stated: The global focus on cybercrime is likely to, at least in part, mitigate some of the activity which is critical in order for the overwhelmingly lawful ecosystem to grow. Nonetheless, De.fi, another Web3 cybersecurity group, puts 2023’s loss even higher, reaching $2 billion. De.fi stated this number stood as a “testament to both the ongoing vulnerabilities and the strides made in addressing them, even as interest in the space was relatively muted by the ongoing bear market in the first half of the year.” What do you think about the at least $1.7 billion stolen in hacks and exploits during 2023? Tell us in the comments section below. View the full article

Tether CEO Paolo Ardoino made a retrospective about the company’s growth since its beginnings. In a post in X, Ardoino celebrated the current standing of the company, with its USDT stablecoin reaching a $91.5 billion market cap on several blockchains, $4 billion in excess reserves, and a portfolio of mining, energy, and artificial intelligence (AI) investments. Paolo Ardoino Celebrates Tether Paolo Ardoino, CEO of Tether, the company behind the issuance of USDT, remarked on the evolution of the company, noting the size and significance it has reached for “millions of people,” especially in emerging markets and developing countries. Making an emphasis on the growth of the company and its change in recent years, Ardoino stated: Tether evolved. We listened to our community, we learned and improved. It’s a process. Always will be. No company has the luxury to exist without challenges. But the team kept its focus. Through the fire and the flames, we carry on. Ardoino also praised USDT reaching $95.4 billion in market cap, becoming the largest stablecoin in the cryptocurrency market, with $4 billion in excess reserves that are separated from the actual reserves backing the USDT available on the market. Tether has not sat idle over these earnings, though, as it has slowly invested in several initiatives involving mining, energy renewables, development platforms, and artificial intelligence (AI). Ardoino mentioned Holepunch, Synonim, Northern Data, and Tether Energy, highlighting the company’s expansion into different fields to keep growing and expanding. The company has also recently reinforced its compromise in the compliance area, revealing the tight integration with U.S. government agencies like the Secret Service and the Federal Bureau of Investigation (FBI). Finally, Ardoino revealed Tether’s plans to develop new products for 2024 and consolidate the existing ones. “They will be mind-blowing,” he concluded. What do you think about Tether’s performance in 2023? Tell us in the comments section below. View the full article

Economist Stephanie Pomboy has warned that the “demise of the U.S. hegemony is really upon us,” emphasizing that the Biden administration and many U.S. policymakers in Washington “are just sleeping right through it.” She pointed out that a growing number of nations are reducing their reliance on the U.S. dollar and opting to use local currencies in international trade. ‘The Demise of the US Hegemony Is Really Upon Us’ Economist Stephanie Pomboy discussed the future of the U.S. dollar in an interview with Tucker Carlson last week. Pomboy is a financial analyst, market strategist, and economist, who founded Macromavens, a research firm specializing in emerging global economic trends. Before launching her firm, she worked as a managing director at an independent economic research firm ISI Group from 1991 to 2002. “Here, in the U.S., policymakers still have their blinders on, and they imagine that the U.S. dollar will never be challenged as the world’s reserve currency, and that we can continue to print money … indefinitely,” she began. The economist explained that in reality, a growing number of countries are moving away from the U.S. dollar. “They are not buying Treasury bonds anymore and they are diversifying [away from] our dollar into gold, into oil, and strategic resources,” Pomboy detailed. “And they’re starting to trade in local currencies. They don’t have to transact in dollars.” She stressed: The demise of the U.S. hegemony is really upon us, and the Biden administration and so many in Washington are just sleeping right through it. An increasing number of countries are shifting away from the U.S. dollar, opting for trade in their national currencies. Notably, the BRICS nations (Brazil, Russia, India, China, and South Africa) have advocated for the use of local currencies. Six additional countries, namely Argentina, Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates, have received invitations to join the BRICS. The economic bloc has also explored the possibility of creating a common currency. Sergey Lavrov, Russia’s foreign affairs minister, recently stated that approximately “30 countries would like to establish partner ties with BRICS.” Multiple people have similarly warned of the U.S. dollar losing its world reserve currency status. Rich Dad Poor Dad author Robert Kiyosaki has repeatedly cautioned about the end of the USD. Economist Peter Schiff has said many times that the U.S. dollar is near a historic crash. Renowned investor Jim Rogers has warned of the dollar’s dominance ending, seeing the Chinese yuan as a USD competitor. Do you agree with economist Stephanie Pomboy about the demise of the U.S. dollar? Let us know in the comments section below. View the full article

Cathie Wood, CEO of Ark Investment Management, foresees widespread institutional involvement in spot bitcoin exchange-traded funds (ETFs) following anticipated approval by the U.S. Securities and Exchange Commission (SEC). “All we need is for the trillions of dollars in institutional assets out there to allocate maybe 0.1% or 0.2% to an ETF, which will be one of the easiest ways to gain exposure and one of the most efficient ways to gain exposure to bitcoin,” she explained, adding: “That will move the price significantly.” Ark Invest CEO Cathie Wood on Spot Bitcoin ETF Approval The CEO of Ark Investment Management (Ark Invest), Cathie Wood, shared her perspective regarding spot bitcoin exchange-traded funds (ETFs) in an interview with Yahoo Finance on Tuesday. Ark Invest is among the applicants seeking approval from the U.S. Securities and Exchange Commission (SEC) to launch a spot bitcoin ETF. The deadline for the securities regulator to make a decision on whether to approve or deny Ark’s application is Jan. 10. Commenting on the SEC’s attitude regarding spot bitcoin ETFs, Wood opined: “Something did change within the last month to six weeks. After being denied several times by the SEC without hearing from anyone at the SEC, we and others we know have gotten questions from the SEC — very thoughtful, detailed, technical questions. That’s a very positive move. And it’s not just one set of questions. It’s follow-up questions. That is really good.” The Ark Invest executive continued: “Now you ask if the SEC is data-driven. We have had the opportunity, as many others have, to meet a number of the research people within the SEC focused on crypto assets or digital assets.” She added: We have found them to be extremely thoughtful, extremely knowledgeable and actually a great source of comfort frankly, because … we don’t want a spot bitcoin ETF to get the green light if there are any uncertainties that the SEC may have. “So I think we’re answering those uncertainties one by one, each of the filers for a spot bitcoin ETF. And I think the dialogues are very positive. I think the outlook is bright for a spot bitcoin ETF.” In addition, Wood expressed that she believes the SEC will approve multiple spot bitcoin ETF applications in January. “We do think it will be in January. Famous last words, don’t want to say we know anything, because we don’t. But it’s just the actions of the SEC that are leading us to that conclusion,” Wood clarified. The SEC is currently considering 13 spot bitcoin ETF proposals. The regulator met with several issuers many times recently to discuss their applications, including Ark Invest, Blackrock, Fidelity, and Grayscale Investments. The SEC reportedly gave them until the end of this week to file their amendments in order to be considered for the first wave of spot bitcoin ETF decisions. Impact on Bitcoin’s Price When asked whether she expects the price of bitcoin to continue to rise after the Jan. 10 deadline as it has been over the recent months, the Ark Invest executive replied: Well, in the very short term, because of the big move we’ve had and it’s an anticipatory move based on the expectation that a spot bitcoin ETF will be approved — one or more, and it probably is more — so there has been a big anticipatory move. “Those who have been moving in and enjoying some nice profits will probably, quote unquote, ‘sell on the news.’ That’s an expression that traders use. So you anticipate the event, bid up the price, and then sell on the news,” she explained. Wood continued: “What we think is going to happen here is that the SEC is going to be giving bitcoin, a spot bitcoin ETF, the green light for institutional investors to participate. I think a lot of institutions have been reticent before the SEC approves a spot bitcoin ETF to do very much at all in the crypto asset world.” She added: “All we need is for the trillions of dollars in institutional assets out there to allocate maybe 0.1% or 0.2% to an ETF, which will be one of the easiest ways to gain exposure and one of the most efficient ways to gain exposure to bitcoin.” The executive concluded: That will move the price significantly. “And just for some perspective here, right now we’re at 19.5 million bitcoin outstanding. The system is mathematically metered to stop at 21 million units. So scarcity value is beginning to have an impact, especially because as we look at long-term holders, those holding and not moving bitcoin for one year. Those are up to 15 million units or 15 million bitcoin,” Wood detailed. Do you agree with Ark Invest CEO Cathie Wood? Let us know in the comments section below. View the full article

Economist Peter Schiff has shared some predictions for 2024. “The big surprise in 2024 will not only be that the economy crashes into recession, but that high inflation returns with a vengeance,” he described. The technicals are breaking down for the U.S. Dollar Index, he added, emphasizing: “This couldn’t come at a worse time. The Fed is planning interest rate cuts, which will not only accelerate the decline, but put renewed upward pressure on inflation.” Peter Schiff’s 2024 Economic Predictions Gold bug and economist Peter Schiff shared his predictions for 2024 in a series of posts on social media platform X Wednesday. “Investors are convinced the Fed has succeeded in restoring price stability without causing a recession, pulling off a miraculous soft landing,” Schiff described, warning: The big surprise in 2024 will not only be that the economy crashes into recession, but that high inflation returns with a vengeance. “The U.S. Dollar Index is below 101 for the first time since July, down over 12% from its 2022 high. The near 30% rise in the dollar off its 2021 low is the main reason headline CPI declined so much. All of those gains may be lost in 2024, sending annual inflation to new highs,” Schiff explained. “As the year draws to a close, the Dollar Index continues to sink quietly toward 100 as gold continues to nudge its way toward $2,100. Look for these moves to become increasingly more pronounced in 2024, as both the dollar’s fall and gold’s rise accelerate,” the gold bug advised. While emphasizing that the U.S. Dollar Index closed at its lowest level since July, Schiff explained on Dec. 21: “More importantly, the technicals are breaking down. This couldn’t come at a worse time. The Fed is planning interest rate cuts, which will not only accelerate the decline, but put renewed upward pressure on inflation.” Moreover, Schiff shared on X Thursday: “The Nov. trade deficit in goods was a larger than expected $90.3 billion, as the decline in exports exceeded the decline in imports.” He stressed: This not only indicates a weak and dysfunctional economy, but portends a significant drop in the dollar and rise in imported goods prices in 2024. In a follow-up post, Schiff stated that the “highly anticipated recession” is “still coming,” emphasizing that all the government spending, credited with preventing the recession by some, “merely delayed the onset, while ensuring the recession is much worse.” Schiff has constantly cautioned about the U.S. economy and the USD. Last month, he warned of the U.S. dollar being near a “historic crash,” emphasizing that the U.S. economy will not see a soft landing. He said in October that owners of U.S. dollars will get destroyed. He also warned of a deep recession, an inflationary depression, an “unprecedented” financial crisis, and the biggest bond market crash. What do you think about the predictions by economist Peter Schiff about the U.S. economy and the dollar? Let us know in the comments section below. View the full article

An analysis by crypto intelligence firm Arkham indicates that Donald Trump, the 45th President of the United States, is selling millions of dollars in ether acquired from selling his non-fungible token (NFT) collections. The analytics firm also revealed that Trump’s highest crypto balance reached $4 million. Based on deposit analysis to date, the former U.S. president has sold 1,325 ETH, totaling over $3 million. Donald Trump Selling Ether, Analysis Suggests Crypto intelligence firm Arkham shared an analysis on social media platform X on Thursday, revealing the amount of ether former U.S. President Donald Trump appears to have sold. “Looks like Donald Trump is selling his ETH,” the firm wrote, adding that three weeks ago, the former U.S. president started sending his cryptocurrencies to Coinbase after months of accumulating from the sale of non-fungible tokens (NFTs). “His peak balance was $4 million,” the firm added, noting that based on the deposits, Trump has sold 1,075 ETH for $2.4 million so far. However, 250 more ETH have been transferred to Coinbase since Arkham’s post. At the time of writing, the total transferred amounted to more than $3 million. Looks like Donald Trump is selling his ETH. 3 weeks ago he started sending ETH to Coinbase after months of accumulating Trump NFT royalties. His peak balance was $4 million. Based on the deposits, so far he's sold 1,075 ETH for $2.4 million. pic.twitter.com/JZzA3cS2je — Arkham (@ArkhamIntel) December 27, 2023 Arkham previously identified a crypto wallet linked to Trump based on public disclosures. Trump has launched three NFT collections to date, with the most recent being the Mugshot Edition unveiled earlier this month. Notably, the latest release marks his first inclusion of physical cards. Customers acquiring 47 cards from the Mugshot Edition will receive a fragment of the suit worn by Trump in his mugshot, along with an invitation to a gala dinner at his Mar-a-Lago home. The former U.S. president’s first NFT collection was launched in December last year. It was a digital card collection featuring art of his life and career. His second NFT digital card collection was launched in April, which was 19 days after he was indicted with 34 felony counts of allegedly falsifying business records. In August, Trump disclosed in a filing with the Federal Election Commission (FEC) that a company that made $9.7 million by licensing his image on NFTs, CIC Digital LLC, maintained a cryptocurrency wallet with at least $1 million in ethereum, which produced income of $2.8 million. What do you think about former U.S. President Donald Trump selling his ETH proceeds from NFT collections? Let us know in the comments section below. View the full article

Elon Musk, the chairman of X, has referred to non-fungible tokens (NFTs) and the defects of their implementation, indirectly making the case for inscriptions. Answering a post on X on the topic of NFTs, Musk suggested saving the jpeg (an image format) of the NFT on the blockchain, like inscriptions are currently saved on Bitcoin. Elon Musk Indirectly Nods at Ordinal Inscriptions Elon Musk has given indirect support to Ordinal inscriptions, a series of images and other data saved on the BTC blockchain. In an X post commenting on the issue of non-fungible token (NFT) data, and how it can be linked to content not owned by the issuers, that can be removed, Musk declared: Yeah, at least encode the jpeg on the blockchain! Musk’s complaints about how standard NFTs work are not new. On the Joe Rogan Experience podcast, Musk stated: The funny thing is the NFT is not even on the blockchain — it’s just a URL to the JPEG. As Musk explained, earlier NFT implementations featured a link to the content highlighted in the file that led to a website, something that was pointed out by critics of the NFT mania back in the day. However, Ordinal inscriptions and Stamps, two recently introduced protocols, allow users to save the desired media directly on top of the Bitcoin blockchain, securing the longevity of the file. The rise of these inscriptions has raised discussions on what constitutes a “fair use” of the blockchain space, with some mining pools even opting to filter transactions containing them, considering these inscriptions “spam.” The post that started the discussion featured a video and a song about NFTs that Musk also posted in 2021. Leonidas, a co-founder of Ord.io, later reported this video was inscribed on Bitcoin by an unknown user who paid $7,223 in fees to this end. The file, identified as Inscription 51,887,020, has a size of 366.57 KB. What do you think about Elon Musk’s views on NFTs? Tell us in the comments section below. View the full article

With its U.S. dollar value having risen by nearly 160% since the start of the year, bitcoin is set to end 2023 as one of the best-performing assets. Only semiconductor giant Nvidia’s stock has outperformed the top crypto asset in 2023 so far. Key moments such as Blackrock’s spot bitcoin exchange-traded fund (ETF) announcement and a fake post on the social media platform X all combined to spark the crypto asset’s remarkable run. Nvidia’s Stock the Number One Performing Asset in 2023 Bitcoin, which started the year trading at just under $17,000, recently surpassed the $44,000 mark and is now set to end 2023 as one of the best-performing assets. As of Nov. 30, bitcoin has gained 160% overall. Only the stock of the semiconductor giant Nvidia has outperformed bitcoin (BTC) with a gain of more than 240% on Dec. 24. According to an analysis conducted by the consulting firm Kaiko Research, BTC seemingly stalled between March and October. Also, its volumes during that period did not hint at an impending run that would see it trade above $44,000 for the first time in almost two years. The Blackrock Factor However, in the last quarter of the year, key moments such as Blackrock’s spot bitcoin exchange-traded fund (ETF) announcement and a fake news post all conspired to spark the crypto asset’s remarkable run. “Then [in the Q4], optimism about a spot BTC ETF began to grow after Blackrock filed, and then a mistaken tweet from a crypto publication stating that the ETF had been approved seemed to break the floodgates open,” the Kaiko Research said. According to the consulting firm’s analysis, the top crypto asset has one of the best Sharpe Ratios of any major asset this year. The consulting firm also noted that Nvidia, whose stock more than doubled between January and May, had the best Sharpe Ratio in 2023. Meanwhile, the stock of Michael Saylor’s Microstrategy, which was up by more than 300% at the time of writing (8 am EST on Dec. 24), is listed as the third-best performing asset in 2023. The top U.S. crypto exchange Coinbase’s stock COIN is the fifth-best performing asset, while the second-biggest crypto asset ETH is ranked seventh. What are your thoughts on this story? Let us know what you think in the comments section below. View the full article

The Japanese government has approved a tax reform that removes some crypto taxes for corporations and conglomerates. The reform, discussed since early December, removes the unrealized gains taxes on crypto holdings for companies, paving the way for them to hold crypto assets more consistently. Japanese Government Approves Tax Reform to Eliminate Unrealized Gains Tax The Japanese cabinet convened to approve the FY2018 tax reform, which includes a series of modifications to rules affecting companies in the cryptocurrency area. The reform included a change that removed the “unrealized gains” crypto tax that mandated companies to pay tribute based on the price change of crypto assets each fiscal year. A change that eliminated this tax for companies’ self-issued cryptocurrencies had already been approved earlier this year, but with this modification, crypto companies can now hold crypto issued by third parties without paying the unrealized gains taxes. However, cryptocurrency sales and purchases will continue to be taxed. This opposes the petition of the Japan Crypto Asset Business Association, which asked for eliminating the tax on crypto exchanges. According to local media, the measure will contribute to a general reduction in tax-derived income for June 2024, expected to be the largest since 1989. The reform, which had been in discussion since early December, is directed to make it easier for corporations to add crypto to their treasury without paying for simply holding it. Japan is one of the few countries that applies this unrealized crypto gains tax, prompting companies to hold these assets in other countries. Nonetheless, even after this approval, the tax reform will have to be presented to the Diet next year and will have to be passed by both houses. What do you think about the unrealized gains crypto tax exemption for companies in Japan? Tell us in the comments section below. View the full article

Welcome to Latam Insights, a compendium of Latin America’s most relevant crypto and economic news during the last week. In this issue: El Salvador passes a Bitcoin donation citizenship law, Argentina will allow the settlement of crypto-denominated contracts, and President Milei moves to deregulate Argentina. El Salvador Passes Bitcoin Citizenship Law The government of El Salvador has passed a law that allows foreign investors to become Salvadoran citizens. The project, approved with Bukele’s Nuevas Ideas party majority in the Congress, offers foreigners the possibility of sidestepping the ordinary requirements to receive Salvadoran citizenship by making Bitcoin donations to social and economic programs in the country, without mentioning a determined number. Before, the only way of becoming a Salvadoran citizen involved having five years of residence for immigrants from a non-Spanish-speaking country. On December 8, the country announced a program called “Adopting El Salvador,” which would allow foreign Bitcoin millionaires to fast-track their access to a Salvadoran Passport by investing $1 million USDT. However, the program will be available only for 1,000 applicants each year. Argentina to Allow Crypto-Denominated Contracts The government of Argentina will allow contracts to be settled in Bitcoin or any cryptocurrency or asset agreed between the parties involved. This is a consequence of the recent deregulation executive order that Argentine President Javier Milei inked this week. Minister of Foreign Affairs, International Trade and Worship of the Argentine Republic Diana Mondino announced this, stating that contract payments could be settled in currencies and assets different from the Argentine peso. She stated: We ratify and confirm that in Argentina contracts can be agreed in Bitcoin. And also any other crypto and/or items such as kilos of meat or liters of milk. President Javier Milei Issues Mega Executive Order to Deregulate Argentina Argentine President Javier Milei has issued an emergency national executive order modifying dozens of laws to deregulate and free the country’s economy. The order, titled “Decree of Necessity and Urgency – Bases for the Reconstruction of the Argentine Economy,” has over 360 articles and modifies several relevant aspects in the Argentine regulatory framework, including rent, pricing, and work determinations. The decree also prepares to privatize state companies, converting them into limited companies. Milei defended his actions, stressing that they were touching elites’ interests. He explained: They complain because they lose privileges. We make markets more competitive and end some privileges. And some who see their interests affected complain. Due to its size and scope, the order is already being criticized, being labeled as unconstitutional by some experts who believe it could face heavy opposition in Congress, which can repeal it if both chambers decide against it with a simple majority. To follow all the latest developments in crypto and the economy in Latin America, sign up for our Latam newsletter below. What do you think about this week’s Latam Insights report? Tell us in the comment section below. View the full article

Arthur Hayes, former CEO of Bitmex and cryptocurrency market analyst, pondered about the success of an upcoming spot bitcoin ETF and its effect on the future of bitcoin. Hayes states that the popularity of these ETF derivatives might concentrate the custody of all the bitcoin in a few hands that won’t move it, forcing miners to capitulate due to a lack of activity in the blockchain. Arthur Hayes Believes ETFs Might Cause the Demise of Bitcoin Former Bitmex CEO Arthur Hayes believes that the success of an upcoming spot bitcoin ETF might endanger the existence of the Bitcoin network. In his most recent blog post, “Expression,” Hayes presents a hypothetical situation in which bitcoin is all in the hands of a few financial firms, like Blackrock. If this happens, Hayes anticipates this will destroy bitcoin as a store of value, given that it is different from all of the assets traded in financial markets until now. Hayes argued: Bitcoin is the first monetary asset in human history that exists only if it moves. But if there was never another Bitcoin transaction between two entities, miners would be unable to afford the energy it costs to secure the network. The result of this would be the shutdown of the whole Bitcoin network due to the starvation of miners who will receive fees only from bitcoin transactions after the subsidy ends circa 2140. Hayes adds that this could happen if users come to value bitcoin as a financial asset more than a store of value, favoring the purchase of derivatives instead of the cryptocurrency. However, if bitcoin suffers this fate, Hayes anticipates the birth of a similar asset to allow people to transact in a non-state-owned financial system. “Hopefully, the second time around, we will learn not to hand our private keys to the baldies,” he concluded. What do you think about Hayes’ opinion on the success of a spot bitcoin ETF and its effect on bitcoin? Tell us in the comments section below. View the full article

The Epic Games Store, the digital distribution storefront owned by Epic Games, has made changes that will allow some blockchain games to be listed on its platform again. Epic Games has announced that it will now admit games rated as “Adults Only” due to having non-fungible tokens (NFT) and blockchain elements. Epic Games Stores Change Guidelines to Readmit Blockchain Games The Epic Games Store has decided to open its doors for blockchain and Web3 games again. The digital storefront owned by the makers of Fortnite has decided to change its policies to readmit this kind of game into its platform. According to the ESRB, some blockchain games are receiving the “Adults Only”(AO) rating due to the possibility of presenting the opportunity of exchanging the digital currency won for “real money.” The store excluded all games rated as AO by the Entertainment Software Rating Board (ESRB) from its platform, having a blanket ban on this kind of product. However, it recently announced a change, adding an exception for blockchain and non-fungible token (NFT) games. Nonetheless, these games still have to comply with the already existing guidelines and the prohibitions on pornography, gambling, and hateful content. The change allowed two games pulled due to receiving the AO rating, Unchained Gods and Striker Manager 3, to be included again in the platform. Immutable, a layer 2 Ethereum expansion layer and developer of Gods Unchained, celebrated this development, considering it an acknowledgment of the relevance of this tech in the gaming arena. It stated: We are pleased with Epic Games’ policy decision, and Gods Unchained has relisted on their store. This policy change shows that the space recognizes the experience of web3 gaming, and we are one step closer to adoption. Steam, another digital distribution platform, has had a blanket ban on blockchain and NFT games since 2021. However, even with this ban enacted, developers are still finding ways to launch crypto-related games on this leading storefront. What do you think about Epic Games’ policy change? Tell us in the comments section below. View the full article

While no formal announcement has been made, murmurs of a potential Bitcoin fork are emerging amidst discussions on block space, Ordinal inscriptions, and escalating fees. Such speculation has led some to believe that a significant Bitcoin fork might occur in 2024. Talks of a Bitcoin Fork Appear as Tensions Rise Discussions about a potential Bitcoin fork are surfacing on social media platform X, sparked by ongoing debates about the trend of Ordinal inscriptions, the block space these inscriptions occupy, and the increasing transaction fees of BTC. As of Dec. 23, 2023, a backlog of 291,660 unconfirmed bitcoin transactions exists. The current cost for transferring bitcoin stands at 81 satoshis per virtual byte (sat/vB) or $4.97 per transaction. Comparatively, fees were much higher on Dec. 16, 2023, when the rate was 674 sat/vB, equating to $40 per transfer. Moreover, certain Bitcoin enthusiasts scorn Ordinal inscriptions, labeling them as “spam,” an “attack,” a “scam,” and fundamentally a misuse of resources. On Dec. 23, advocate Adam Simecka asserted that Ordinal inscriptions are a “scam,” causing division among bitcoiners, and predicted that this trend “will result in a hard-fork (a new version of Bitcoin) that will eventually fail.” The Twitter user Pledditor informed its 16,900 followers about Taproot Wizards’ alleged attempts “to fork Bitcoin to be more like Ethereum.” Pledditor’s X post came as a rebuttal to Udi Wertheimer’s mention of “BIP-1559” on the same platform. Furthermore, Wertheimer’s X post from Dec. 20 proclaimed, “In 2024 we’re upgrading Bitcoin,” to which David Coen responded, “Please do it. Fork Bitcoin. Keep the spam on your chain.” Tyler Whittle, a sorcerer at Taproot Wizards, recently discussed the risks Bitcoin faces due to its reluctance to adapt and change. Whittle argues that while the Bitcoin community is proficient at understanding the risks of protocol changes potentially wiping out its market cap, it underestimates the dangers of not evolving. This resistance to change Whittle compared to the downfall of formerly dominant companies like Blackberry, Kodak, and Nokia, which failed to adapt to new technologies and market shifts. Whittle added: In 2024, we must move away from the biblical Bitcoin culture. We need more 1960s Space Race vibes, and less Bitcoin as religon. Since the block size disputes and the 2017 split between Bitcoin and Bitcoin Cash, much has evolved. Each chain has diverged, with Bitcoin Cash expanding its block size to 32 megabytes (MB) and Bitcoin maintaining its 1 MB block size cap. Yet, because of Segregated Witness and Taproot, Bitcoin has attained a 4 MB block size this year. Over the past year, Bitcoin’s average daily block size has also risen from 1.19 MB to 1.7 MB. Nonetheless, there’s no additional capacity for expansion, and the likelihood of proposing and agreeing on a block size increase is virtually nonexistent. As we near 2024, the Bitcoin community encounters a decisive juncture. Discussions about Ordinal inscriptions, block size, and escalating fees highlight an increasing schism. With debates heating up and transaction queues expanding, talk of a potential fork is becoming more prevalent. Mid-December 2023 saw the term “bitcoin fork” hit the peak of Google Trends scores globally, signaling heightened interest and concern. What do you think about the rising discussions concerning a Bitcoin fork in 2024? Share your thoughts and opinions about this subject in the comments section below. View the full article

On Dec. 23, 2023, Bitcoin’s mining difficulty soared to a record level at block height 822,528. The difficulty surged by 6.98%, marking the most substantial escalation in nine months, since March 23. This increment set a new precedent, making the discovery of block rewards more arduous than ever with a difficulty hitting an unprecedented 72.01 trillion. Bitcoin’s Mining Difficulty Soars to Historic 72 Trillion The ascent in mining difficulty signifies a considerable leap, climbing from 67.30 trillion to a strenuous 72.01 trillion. This metric of Bitcoin’s mining difficulty is defined by a specific target hash value that miners aspire to attain. Essentially, with a difficulty level of 72 trillion, miners are tasked with generating a hash value beneath this threshold to successfully mine a new block. Post this 6.98% rise, it’s anticipated that the next difficulty adjustment will be around Jan. 5, 2024. Coinciding with the spike in difficulty, the network’s hashrate has reached new zeniths, achieving an all-time high on Dec. 24, 2023. Data from Luxor’s hashrateindex.com reveals that the seven-day simple moving average (SMA) of BTC’s hashrate has hit 538 exahash per second (EH/s). This record-breaking figure was achieved shortly after the network reported a historic 527 EH/s peak on December 20. As of December 24, around 50 mining pools are contributing SHA256 hashrate to the BTC network, with Foundry USA at the forefront, commanding 32.30% or 173.55 EH/s of the total hashrate. Antpool is not far behind, contributing 26.95% or 144.81 EH/s. Collectively, these two pools dominate, holding 59.25% of Bitcoin’s aggregate hashrate over the preceding three days. Currently, just a hair over 17,000 blocks remain until the anticipated halving event, projected to occur around the end of March or the beginning of April 2024. This surge in hashrate aligns with the significant expansion in bitcoin mining operations. Throughout 2023, the leading three application-specific integrated circuit (ASIC) manufacturers unveiled their latest next-generation mining rigs. Mining entities have aggressively incorporated these new machines into their operations, substantially boosting efficiency, particularly in joules per terahash. The Financial Times reports a notable investment surge with publicly listed mining companies expending $600 million on new machinery in December, and a total of $1.3 billion on ASIC acquisitions over the year, according to The Miner Mag. What do you think about the network’s difficulty skyrocketing to a new peak? Share your thoughts and opinions about this subject in the comments section below. View the full article

Bitcoin options open interest has soared to unprecedented levels, surpassing the $18 billion threshold on Dec. 22, 2023. Currently, evidence indicates that bitcoin traders are leveraging bitcoin options to mitigate risk and speculate on the future price trajectories of bitcoin, particularly in anticipation of major developments such as the U.S. Securities and Exchange Commission’s (SEC) upcoming verdict on a spot bitcoin exchange-traded fund (ETF). Traders Flock to Bitcoin Options as SEC ETF Decision Looms In December 2023, Bitcoin options open interest hit a record peak. Bitcoin options trading entails the purchase or sale of contracts granting the bitcoin trader the option, though not the obligation, to buy or sell a foundational asset at a predetermined price by a specified date. Traders utilize options to forecast BTC’s price shifts or to safeguard current holdings against potential price fluctuations. The SEC is set to make a decision on a spot bitcoin ETF by Jan. 10, 2023. Numerous reports indicate that bitcoin traders are guarding their investments against the volatility expected to follow the SEC’s ruling. A favorable decision could catalyze a price increase, whereas an adverse one might trigger a downturn. Through options, traders aim to shield their portfolios from unfavorable price changes. On Dec. 22, 2023, the open interest in bitcoin options was noted to be approximately $18.33 billion. As of Dec. 23, 2023, the open interest in bitcoin options is valued at $17.55 billion. The final quarter of the year – October, November, and December – has seen the highest options volume in BTC’s history. Records show a substantial $36.27 billion in October, $36.16 billion in November, and $34.47 billion in December to date. “The most recent rally is being driven by leveraged/speculative money,” Ryan Kim, the lead at Falconx’s derivatives department told Bloomberg’s David Pan. “These traders could be finding it prudent to spend premium to protect their leveraged longs with some [bitcoin] puts, betting on a big move in either direction,” Kim added. What do you think about the soaring bitcoin options ahead of the SEC decision on Jan. 10? Share your thoughts and opinions about this subject in the comments section below. View the full article

In the last week, sales of non-fungible tokens (NFTs) have fallen by 12.26%, totaling $463.87 million, marking a decrease from the previous week. NFTs centered around Bitcoin topped the chart, amassing $265.61 million in sales, despite a 13.71% decline from the preceding week. Meanwhile, Solana NFTs climbed to the second rank, relegating Ethereum to third place in this week’s sales. NFT Market Update: Digital Collectible Sales Slide 12.26% Lower Than Last Week As NFT sales began climbing once more with Bitcoin surging to the forefront since early November, this week witnessed a 12.26% dip in sales, according to figures from cryptoslam.io. Conversely, the count of NFT buyers surged by 72.05%, and sellers increased by 56.61%. This week’s priciest NFT, “Deep Vision #05128” on Cardano, fetched $551,750. Ethereum’s “Frxethredemption T” followed with a $369,208 sale price, and BNB’s “Lockdealnft #91” closed at $329,824. Bitcoin’s “Bitcoin Frog #8518” garnered $137,957, while Avalanche’s “Nodeldnft #126” and Solana’s “#3524” realized $51,312 and $39,492 respectively, rounding off the top six most expensive NFT sales by blockchain. Among the ten leading NFT collections over the past week, nine hailed from the Bitcoin blockchain, with only Solana’s “Open Solmap” compilation breaking in as the fifth highest, amassing $10.24 million in sales. Previously, Ethereum-based ‘blue chip’ NFT collections like Cryptopunks and Bored Ape Yacht Club (BAYC) dominated sales charts. Yet this week, BAYC dropped to 27th, and Cryptopunks to 45th, as Bitcoin led the pack again with $265.61 million in sales, representing 57.25% of all NFT transactions this week. Solana recorded $88.42 million in sales, while Ethereum pulled in $75.91 million. A while back, Ethereum previously enjoyed the majority of NFT sales, but this week saw Solana’s share at 19.06% and Ethereum’s at 16.36%. Additionally, NFT transactions on the BNB chain surged by 118.84%, with Arbitrum seeing a 39.48% spike and Avalanche enjoying a 28.74% increase compared to last week. Despite the modest dip in NFT sales this week, the rise of Bitcoin-centric NFTs, highlights the dynamic and ever-changing nature of the digital collectibles space. Solana’s ascent to the second spot further underscores the changing landscape, as Ethereum takes a step back in the rankings. The recent drop in rankings for BAYC and Cryptopunks certainly raises an intriguing question: Are these once-dominant ‘blue chip’ NFT collections facing a significant shift in the NFT landscape, or is this just a temporary setback? What do you think about this week’s seven day NFT sales stats? What do you think about Ethereum NFTs taking a step back in comparison to Bitcoin and Solana? Share your thoughts and opinions about this subject in the comments section below. View the full article

Trader and financial analyst Peter Brandt says that BTC “halving hype is a whole lot of excitement over nothing,” while developments point to imminent SEC action on the spot bitcoin exchange-traded fund (ETF) front. In other popular news this week, Ethereum co-founder Vitalik Buterin makes a hefty ETH transfer to Coinbase, attracting attention and sparking debate. This and more just below in the latest Bitcoin.com News Week in Review. Vitalik Buterin’s $1 Million Ethereum Transfer to Coinbase Sparks Speculation Monitoring of high-profile crypto addresses by onchain analysts has recently revealed that Ethereum co-founder, Vitalik Buterin, transferred 500 ETH, valued at slightly over $1 million, to Coinbase. This action is part of a pattern, following Buterin’s previous transfers to exchanges in September and his assertion in October that he hasn’t “sold ether for personal gain since 2018.” Read More Seasoned Trader Peter Brandt Challenges Bitcoin Halving Hype Calling It a ‘Whole Lot of Excitement Over Nothing’ Recently, the seasoned financial analyst and trader Peter Brandt has been increasingly expressive about crypto assets, with a particular focus on bitcoin and ethereum. On Dec. 21, 2023, Brandt reaffirmed his stance regarding the anticipated Bitcoin reward halving set for April 2024. He contends that the halving is overly sensationalized and will only exert a temporary impact on bitcoin’s price. Read More SEC Makes ‘Rare’ Calls to Spot Bitcoin ETF Applicants — Analyst Says ‘Good Sign’ for January 10 Approval The U.S. Securities and Exchange Commission (SEC) has reportedly made “rare” calls to spot bitcoin exchange-traded fund (ETF) issuers and exchanges regarding their applications. A Bloomberg ETF analyst views this development as a “good sign” for the expected approvals by Jan. 10. The securities regulator has insisted on the cash creation model, rather than the in-kind model, for spot bitcoin ETFs. Read More Tether Confirms Extensive Collaboration With DOJ, FBI and Secret Service Tether, the stablecoin company, has confirmed it has collaborated extensively with a series of U.S government agencies, including the Department of Justice (DOJ), the Federal Bureau of Investigation (FBI), and the Secret Service. These team-ups are focused on making the stablecoin ecosystem safer for all participants and aiding law enforcement actions against bad actors. Read More What’s your take? Be sure to let us know your thoughts on this week’s stories in the comments section below. View the full article

The Angolan National Assembly recently approved legislation that seeks to address crypto mining’s impact on the environment as well as safeguarding the country’s “monetary sovereignty.” The objective of this legislation is to also curb illicit activities by preventing bad actors from using cryptocurrencies to launder money. Legislation Initiated by President Joao Lourenco The Angolan National Assembly recently unanimously approved a groundbreaking law that addresses cryptocurrency mining and virtual currency within the country. The legislation aims to safeguard the sovereignty of Angola’s monetary policy. Otoniel Dos Santos, the country’s Secretary of State for Finance and Treasury, emphasized that the passage of this law was also necessitated by crypto mining’s impact on the environment and the country’s energy security. According to a report by Ver Angola, the law, which was initiated by Angolan President Joao Lourenco, received 167 votes in favor and had zero nay votes or abstentions. The objective of this legislation is to also curb illicit activities by preventing bad actors from using crypto assets to launder money. In a speech before the National Assembly in which he made the argument for the law’s passage, Dos Santos said: The instrument also proposes to prevent, in general, and special way, within the framework of criminal policy, conduct that jeopardizes national monetary sovereignty and also protects the energy and the environmental system, thus allowing this reality not to impact the energy and environmental security of our country. Furthermore, since crypto assets fall outside the regulatory scope of the National Bank of Angola, this law ensures that Angolan citizens have the legal means to seek redress in case of disputes related to digital currencies. As per the Ver Angola report, the law, which is set to be discussed further, has five chapters covering issues ranging from crypto mining and the circulation of virtual assets to provisions of the law that pertain to crimes against the environment and financial system. What are your thoughts on this story? Let us know what you think in the comments section below. View the full article

PRESS RELEASE. December 22nd 2023 – Secured Finance, a pioneering decentralized finance (DeFi) platform, is reshaping the cryptocurrency landscape with its innovative approach to lending and borrowing. Using novel architecture, Secured Finance has announced the launch of the first crypto bond market that promises to deliver top class access to investors and traders. A Significant Milestone Currently no one can trade BTC or Ether bonds because public-chain bonds do not exist. However, Secured Finance has been able to develop a unique bond market that explores an innovative idea providing users with the very best experience to expand their trading capabilities. The introduction of a bond market and generation of yield curves by Secured Finance brings substantial advantages to investors such as: Predicting Future Interest Rates: The yield curve is a crucial tool for anticipating future interest rate trends, aiding investors in making informed decisions. Diversification through Bond Market Access: This new market access allows investors to engage in diversified investment strategies, spreading and managing risks more effectively. Impact on Derivatives Market: The yield curve is integral in pricing derivative products, enhancing the complexity and depth of the market. Advanced Risk Management: The order book system, combined with the yield curve, facilitates accurate market risk assessments, leading to better risk management strategies A One-Stop DeFi Ecosystem Secured Finance stands at the forefront of the DeFi revolution, offering an ecosystem that transcends traditional finance’s limitations. With its Full On-Chain Order Book System, Secured Finance is pioneering a transparent, fair, and efficient financial landscape, catering to the evolving needs of modern investors. At the heart of Secured Finance’s ecosystem is a robust blockchain infrastructure, ensuring every transaction is transparent and immutable. This approach provides unparalleled clarity in financial dealings, fostering trust among users. The ecosystem encompasses a range of financial services, including a dynamic bond market, offering investors diverse opportunities to grow their portfolios. Secured Finance’s commitment to market transparency and efficiency is evident in its Full On-Chain Order Book System. This system provides a transparent mechanism for interest rate determination, allowing for a fair and efficient market. By recording every transaction on the blockchain, Secured Finance ensures a level of transparency and auditability unmatched in traditional financial systems. Integrating Traditional Financial Mechanisms A critical aspect of Secured Finance’s approach is the integration of traditional financial market mechanisms with blockchain technology. This hybrid model introduces new forms of transactions in the cryptocurrency market, bridging the gap between conventional finance and the emerging DeFi sector. Innovative Team Backed By Industry Giants The success and vision of Secured Finance are driven by its exceptional leadership team, spearheaded by CEO Masa ‘Senshi’ Kikuchi. Masa, a veteran with over 17 years of experience in rates and FX derivatives, combines his financial expertise with a deep understanding of software engineering. His unique skill set, complemented by his role in Japan’s Cabinet Office Task Force, provides the strategic direction necessary to navigate the complex interplay of finance and technology. Under Masa’s leadership, the team, comprising experts in both traditional finance and blockchain technology, is dedicated to bridging the gap between these realms. Secured Finance’s groundbreaking approach has garnered support from some of the most prominent players in the crypto industry, including CONSENSYS, Protocol Labs, Huobi, GSR, HOF Capital, FinTech Collective, and others. This backing not only adds credibility to the Secured Finance ecosystem but also demonstrates the confidence these leading entities have in its potential to reshape the financial landscape. Future Prospects Looking ahead, Secured Finance is committed to continuous innovation and market expansion. With its unique offerings and strategic approach, the platform is well-positioned to lead the next wave of transformation in the DeFi sector, ushering in an era of stability, transparency, and efficiency. Secured Finance stands as a testament to the transformative potential of decentralized finance, underpinned by strong leadership, innovative technology, and a commitment to bridging the gap between traditional finance and the evolving world of cryptocurrencies. For media inquiries, please visit: Email: contact@secured-finance.com Website: secured.finance Twitter: https://twitter.com/Secured_Fi 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 official exchange rate of the Nigerian currency versus the U.S. dollar recently plunged to a record low of 1,248 naira for every greenback. The governor of the Central Bank of Nigeria has told the country’s legislators that he sees the foreign exchange market stabilizing in 2024. Official Rate Nearly Matches the Parallel Market Rate On Dec. 19, the Nigerian currency, the naira, briefly plunged to a record low of 1,248 naira for every U.S. dollar before recovering to close the day at 845 naira for every greenback. According to a Reuters report, the currency’s fall nearly matched the naira-to-dollar rates traders offer on the unofficial foreign exchange market. When Nigerian President Bola Ahmed Tinubu assumed office in late May, the Central Bank of Nigeria (CBN) immediately abandoned the fixed exchange rate regime. As reported by Bitcoin.com News at the time, the naira-to-dollar exchange rate initially plunged by 30% from N470:US$1 to N634:$US1. Afterwards, the CBN allowed the naira to freely float, which saw it depreciate further. On the unofficial market, the local currency has however continued to lose ground versus the greenback, and by December 20, one dollar bought 1,228 naira. Many experts believe Nigeria’s inability to generate enough foreign exchange to support its currency is one of the reasons why the naira continues to depreciate. However, during his appearance before the Nigerian Senate and House of Representatives Joint Committee, CBN Governor Olayemi Cardoso predicted better fortunes for the naira in 2024. “The outlook for the domestic economy remains positive and is expected to maintain a positive trajectory for 2024. Inflation pressures may persist in the short term but are expected to decline in 2024. Exchange rate pressures are also expected to reduce significantly with the smooth functioning of the foreign exchange market,” Cardoso said. Register your email here to get a weekly update on African news sent to your inbox: What are your thoughts on this story? Let us know what you think in the comments section below. View the full article

The fiat-crypto payment gateway Alchemy Pay recently revealed that it has partnered with Worldpay in a move that gives its users to access Worldpay’s Visa and Mastercard payment rails via its on and off-ramp service. Alchemy said its users will now experience better efficiency and customer experience when using their respective credit and debit cards to trade cryptocurrencies. Worldpay to Support Alchemy’s NFT Checkout Alchemy Pay, the fiat-crypto payment gateway, has joined forces with the payments processing firm Worldpay “to amplify its payment channels and elevate its payment capabilities.” According to Alchemy, this partnership allows its users to access Worldpay’s Visa and Mastercard payment rails via its on and off-ramp service. In a statement released on Dec. 19, Alchemy said its customers should now expect better efficiency and customer experience when using their respective credit and debit cards to trade cryptocurrencies. Worldpay also plans to support Alchemy Pay’s non-fungible token (NFT) checkout thus making these tokens more accessible. Before making the latest announcement, Alchemy revealed in late November that it had been issued with the Money Services Licence by the U.S. State of Iowa which effectively placed it in the same league as established payment providers. It has also been approved in Lithuania, Indonesia and Canada and there are plans to get licenses in the U.K. and Hong Kong. Commenting on his company’s partnership with Worldpay, Robert McCracken, the Ecosystem Lead at Alchemy Pay, said: Utilizing Worldpay’s extensive global reach, Alchemy Pay is now better positioned to assist our business partners and users in seamless cryptocurrency transactions worldwide, providing enhanced payment experiences and more favorable fee structures. McCracken added that he is hopeful the collaboration will help make digital assets more widely available. For his part, Nabil Manji, the Head of Crypto and Web3 at Worldpay, said Alchemy’s goal of fiat to the Web3 economy fits well with “Worldpay’s role in bridging the gap between traditional and digital finance.” What are your thoughts on this story? Let us know what you think in the comments section below. View the full article

On Nov. 15, 2023, the New York Department of Financial Services (NYDFS) issued new standards for virtual currency (coin) listings and delistings. These new regulations apply to Bitlicensees and limited-purpose trust companies and include business model considerations for virtual currency entities (VCEs), updated risk assessment expectations for VCEs, new advance notification requirements, and updated definitions. The following editorial was written by guest authors Wyatt Noble and Michael Handelsman for Kelman.Law VCE Coin-Listing Policies Under the latest guidance VCEs with prior approvals for coin-listing policies must receive NYDFS approval for both their coin-listing and coin-delisting policies before self-certifying any coins. Once NYDFS approves both policies, VCEs may self-certify coins for New York-based activities. However, without NYDFS-approved listing policies, VCEs will almost always be restricted to listing coins on the NYDFS Greenlist, barring specific NYDFS approvals. Additionally, the NYDFS retains discretionary authority to require VCEs to delist coins or restrict access for New Yorkers to non-Greenlist coins. Coin-Listing Governance Requirements VCEs are required to have their board of directors or equivalent governing authority actively involved in the oversight of coin-listings. This includes annual approvals of the coin-listing policy, decision-making on new coin listings, and ensuring independence from those proposing coin listings or delistings. They must also manage and disclose any conflicts of interest, maintain compliant recordkeeping accessible for NYDFS review, and promptly notify NYDFS of any non-compliance or material changes to their coin-listing policy. Further, the governing authority must annually reassess the coin-listing policy to ensure ongoing risk mitigation and maintain its independence from the initial recommendation process for listing or delisting coins. The NYDFS hopes this enhanced governance framework will bolster risk management and maintain high standards of regulatory compliance amongst VCEs that comply. Coin-Listing Risk Assessment Requirements In response to requests for greater clarity of risk assessment expectations, the NYDFS highlighted several specific risks VCEs must assess. These risks include: technical design and technology, operational, cybersecurity, market and liquidity, illicit finance, legal, reputational, and regulatory. The final guidance requires VCEs to consider other factors to identify and mitigate risks specific to each coin and its uses, and where applicable, to incorporate NYDFS guidance on the prevention of market manipulation and other wrongful activities. Specifically, VCEs must also identify and mitigate risks stemming from conflicts of interest by having policies and procedures that mitigate any such conflicts from impacting decisions, recommendations, and assessments made for each coin under review. When VCEs identify potential conflicts of interest relating to coin-listing decisions, they must clearly disclose those potential conflicts to the public. Additionally, VCEs are broadly charged with ensuring that all customers are treated fairly and are afforded the full protection of all applicable laws and regulations, including protection from unfair, deceptive, or abusive practices. Limits of VCE Self-Certification The new guidance contains strict requirements for VCEs self-certifying coins. First, coins used to circumvent laws or conceal identities are ineligible for self-certification. Restrictions also apply to non-Greenlist stablecoins, exchange coins, and coins on protocols with decentralization concerns or significant concentration risks. Additionally, VCEs are prohibited from self-certifying bridged coins and those with less than 35% circulating supply. VCEs must request NYDFS approval for listing such coins and must include a comprehensive risk assessment and specified business use case. VCE Coin Monitoring VCEs must have robust monitoring policies for self-certified coins. These policies must ensure that self-certified coins align with safety, customer protection, and compliance standards, which include annual re-evaluations, risk management controls, and a clear coin-delisting policy. Additionally, VCEs are expected to adhere to the NYDFS’s guidance on blockchain analytics and comply with Bank Secrecy Act and anti-money laundering and sanctions-related controls. VCE Coin Delisting Requirements The new guidance also clarified the NYDFS’s expectations concerning coin delistings by VCEs. VCEs must be prepared to discontinue support for coins that present elevated risks and do so in a manner consistent with safety and soundness principles and with the protection of customers and the public. Coin-delisting policies must be comprehensive, reflecting the VCE’s business model, operations, customer base, operational geographies, service providers, and the characteristics of the coins, however, limited exceptions may apply subject to NYDFS approval. Additionally, VCEs were required to meet with the NYDFS by December 8, 2023, to discuss draft coin-delisting policies. While the deadline for those initial meetings passed, final policies are not due until Jan. 31, 2024. Within overall coin delisting requirements, there are two subcategories of minimum requirements for VCEs and their policies, governance and policy. Delisting Governance Requirements As to governance, VCEs must obtain approval from their governing authority for their coin-delisting policies, conduct annual reviews for effective risk management, and maintain independence from those recommending coin listings or delistings. VCEs must also keep accurate records available for NYDFS review and need to inform the NYDFS in writing at least ten business days before delisting a coin. Further, when VCEs notify the NYFDS they will be delisting a coin, VCEs must detail their rationale for doing so and provide a timeline. Additionally, VCEs cannot make significant changes to their coin-delisting policies without obtaining written approval from the NYDFS. Delisting Policy Requirements Under the new guidance, coin-delisting policies must contain comprehensive outlines of the delisting process, including criteria thresholds prompting delisting and integrating with the VCE’s monitoring procedures. VCEs are directed to regularly review and update these procedures, taking into account potential triggers for updates such as new findings, legal or regulatory changes, or directives from the NYDFS. VCEs must establish roles and responsibilities for each type of trigger event to provide clear instructions for stakeholders depending on the circumstances. Key elements related to executing a delisting event include providing at least 30 days’ advance notice to customers (unless otherwise directed by NYDFS), answering customer questions and assisting with the sale of their impacted coins, documenting all aspects of the delisting decision, conducting ongoing monitoring for safety and soundness, and assessing the impact on the VCE’s operations, counterparties, and service providers. What You Should Do Fill out our contact form here to set up a free 30-minute consultation, and read up on whether you need a crypto lawyer. What do you think about New York offering new virtual currency guidance? Share your thoughts and opinions about this subject in the comments section below. View the full article

Sean Ono Lennon, the acclaimed American-British musician and son of Beatles icon John Lennon, revisited the subject of bitcoin on social media platform X, formerly known as Twitter. He poignantly observed, “If you want to understand how valuable bitcoin truly is, look how much our politicians hate it.” Previously, Lennon has shared insights about the leading digital currency, highlighting that it offers him a sense of hope amidst an “ocean of destruction.” Sean Ono Lennon Speaks Out on Bitcoin’s Value Amidst Political Pushback A versatile artist, Lennon, who is also a part of The Claypool Lennon Delirium and the Plastic Ono Band, has previously expressed his views on bitcoin (BTC). In 2020, he described bitcoin as a tool that “empowers individuals,” and shared that it brought him “more optimism” in the turbulent year of 2020. In May 2021, he sharply criticized those who, driven by today’s accelerated consumerism, were voicing complaints about the electricity consumption of the Bitcoin network. On Dec. 21, 2023, Lennon brought up bitcoin once again and said: If you want to understand how valuable bitcoin truly is, look how much our politicians hate it. Look how much Mr. Dimon hates it. Look at Warren. Its value is inversely proportional to how threatened they feel. That’s all you need to know. Lennon’s comments came after remarks from JPMorgan chief Jamie Dimon and U.S. Senator Elizabeth Warren about bitcoin. Dimon has expressed a hypothetical scenario of shutting down cryptocurrencies if he were in charge of the government, while Warren has been actively challenging the crypto sector since early 2023. She recently introduced a bipartisan bill aimed at regulating cryptocurrencies under existing banking laws. After Lennon’s post on X, a user commented, suggesting that authorities could “regulate it into devaluation.” Lennon quickly retorted, “They’re trying.” Another participant on X referenced Lennon’s father, critiquing bitcoin as antithetical to John Lennon’s values and dismissing it as a fleeting, hyped phenomenon benefiting only a few at the expense of many. They doubted its sustainability, requesting authenticity with the phrase, “Gimme some truth.” Lennon didn’t hesitate to respond to this critique as well, asserting, “Sorry but you have zero understanding of what you’re talking about.” Do you agree with Sean Ono Lennon’s views about bitcoin? Let us know in the comments section below. View the full article

The Ministry of Information and Technology of China has agreed to formulate a new strategy for the Web3 field to improve the state of the industry in China. The initiative comes as an answer to a proposal made at the 14th Chinese People’s Political Consultative Conference (CPPCC) National Committee, aiming to strengthen Web3’s condition in the country. Ministry of Information and Technology of China Will Develop a New Web3 Strategy The Chinese government plans to develop a new Web3 strategy for the country. In a recently released document, the Ministry of Industry and Information Technology answers a petition by Wu Jiezhuang, a member of the Chinese People’s Political Consultative Conference (CPPCC) National Committee, that seeks to promote the development of the Web3 industry in China. The document highlights four relevant aspects of the plan. The first aspect proposes to develop a new document that improves the top-down design of the current Web3 focus of China. This includes implementing Web3 tech in areas such as government affairs and industry, encouraging the development of non-fungible tokens (NFTs) and decentralized apps, and accelerating the construction of a digital ecosystem. Strengthening the technical research and supervision through national universities and companies and exploring the application of blockchain technologies are part of the second aspect of this strategy. The third aspect involves internationalizing the Chinese Web3 activities by following the latest trends and involving national institutions in developing industry standards. Lastly, increasing blockchain tech technology publicity and promotion through known science resources and the promotion of apps using Web3 technologies will help increase the level of knowledge and awareness of the public on the subject. China’s interest in Web3 is not new. In February 2022, 16 governmental bodies in China announced the designation of 15 pilot zones to carry out projects in the fields of manufacturing, energy, government and tax services, law, education, health, trade and finance, and cross-border finance, but using blockchain tech. What do you think about issuing a new Web3 strategy in China? Tell us in the comments section below. View the full article

The Shanghai branch of the Bank of China has completed the first settlement of precious metals using the digital yuan. The transaction, finalized on December 19, allowed the Shanghai Gold Exchange to close a $14 million precious metal trade after receiving the funds overseas, according to local media reports. Bank of China Completes First Cross Borders Precious Gold Transaction With Digital Yuan The Shanghai branch of the Bank of China announced that it has completed the first precious metal settlement using the digital yuan, the Chinese central bank digital currency (CBDC). The bank worked closely with the Shanghai Gold Exchange to transact the funds received overseas with the digital yuan. The transaction involved paying $14 million in exchange for undisclosed precious metals. According to local media, this would be the first time the Chinese digital yuan is used to complete a fine metal transaction. A spokesperson for the Shanghai branch of the Bank of China stressed the relevance of this trade to set up Shanghai as an international financial hub. He stated: The account will contribute financial strength to support Shanghai’s in-depth implementation of the free trade pilot zone promotion strategy and promote the quality and upgrading of the international trade center. This is the second milestone the Bank of China has reached using the digital yuan this month. On Dec. 14, the bank facilitated a transaction between its Shanghai and Hong Kong branches, facilitating a settlement between Baosteel Group, a steel and iron company, and Bao-trans Enterprises, a manufacturer of premium steel products. The $3.4 million imported iron ore payment marked the debut of the digital yuan in the commodities arena. China is also making efforts to introduce international digital yuan retail payments, as it recently announced a partnership with the Monetary Authority of Singapur (MAS) to implement a pilot program that will allow tourists to use the digital yuan for tourism purposes in both countries. What do you think about using the digital yuan in precious metals settlements? Tell us in the comments section below. View the full article