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Decentralized finance (defi) brings risks for investors but is yet to pose “meaningful risks” to financial stability, according to Europe’s securities watchdog. The agency believes, however, the phenomenon deserves attention in light of the EU’s new crypto rules as well as growing user base and has presented its assessment of the sector’s development. Defi Requires Monitoring as It Continues to Evolve Quickly, ESMA Says The European Securities and Markets Authority (ESMA), the European Union’s financial markets and securities regulator, has published an article focused on decentralized finance which it recognizes as the most innovative development in the crypto space. While investors’ exposure to defi remains limited, it comes with “serious risks” to investor protection, the report notes, emphasizing on the speculative nature of defi offerings, the absence of responsible parties as well as associated operational and security vulnerabilities. At the same time, ESMA remarks: Defi does not represent a meaningful risk to financial stability at this juncture, considering its small size, but this is something that requires monitoring as the phenomenon continues to evolve quickly. Defi employs blockchain technology and smart contracts to provide financial services in a decentralized and permissionless manner, without involving traditional financial intermediaries. This can create challenges for EU supervisors as even EU’s latest legal framework, the Markets in Crypto-Assets (MiCA) law, is centered on the regulation of intermediaries, ESMA points out. The authority also highlights the relatively small size of the defi market. The exponential growth in 2021, when the total value of digital assets locked in defi products (TVL) spiked to $225 billion, was followed by an abrupt decline in 2022, amid falling crypto prices and collapses of crypto platforms like Terra. TVL has since hovered around $70-80 billion. The European regulator has also noticed that while defi accounts for a small portion of crypto markets, with its TVL representing only around 6% of the total crypto market capitalization, defi protocols rival their centralized equivalents in terms of usage or size. “The estimated number of defi users continues to grow, although at a slower pace, and some predict continued growth in the years to come, mainly as a result of the ongoing development of new defi use cases, the increasing adoption of crypto assets by mainstream investors, and the continued emergence of new defi protocols,” ESMA elaborated. However, crypto assets and defi do not pose sizable risks to financial stability, the agency said. As of the end of June 2023, the crypto market had a capitalization of around $1.1 trillion, roughly equal to the assets of Intesa Sanpaolo, the EU’s 12th largest bank, which accounted for 3.2% of the total assets held by banks in the Union at end of 2022. Do you think the EU will eventually adopt dedicated regulations for the defi space? Tell us in the comments section below. View the full article

Jack Dorsey, co-founder of Twitter and current CEO of Square Inc., is contributing $1 million to support the launch of a pilot program for guaranteed basic income in his hometown of St. Louis, Missouri. According to the city, applicants will be selected on a first come, first serve basis “for $500 monthly payments for 18 months.” Jack Dorsey Supports St. Louis’ Guaranteed Basic Income Pilot Twitter’s co-founder and the current CEO of Square Inc., Jack Dorsey, is contributing $1 million to jumpstart St. Louis’ Guaranteed Basic Income (STL GBI) Pilot Program, which aims to combat poverty in the city. The city of St. Louis announced the launch of the program on Tuesday, noting that participants will receive $500 a month for 18 months. The announcement details that in December last year, St. Louis Mayor Tishaura Jones signed Board Bill Number 116 (BB116), sponsored by Alderwoman Shameem Clark Hubbard, to establish the first guaranteed basic income program in the U.S. state of Missouri. The program originally planned to enroll 440 families. However, thanks to Dorsey’s contribution, the program can now handle 100 more participants. The city described: Jack Dorsey’s #startsmall philanthropic initiative, with operational support from Deaconess Foundation, is contributing $1 million to add an additional 100 participants to the program for a total of 540 participants. To be eligible for assistance, applicants must meet specific criteria, including residing in the city of St. Louis, having a child or dependent under 18 enrolled in a public school, maintaining a combined household income below 170% of the federal poverty level, and demonstrating negative financial impacts due to the Covid-19 pandemic, such as loss of work or increased childcare costs. A number of U.S. cities have independently initiated pilot programs to provide basic income for residents. “St. Louis is joining more than 30 municipalities across the country in trying this new, exciting way to financially empower families and lift them out of poverty,” said Mayor Jones. She added that the city is “thrilled to have the support of St. Louis native Jack Dorsey to help even more families make ends meet.” The city explained, “Applicants chosen via lottery will be invited to submit financial documentation and verification of City of St. Louis residency,” adding: Applicants will then be selected on a first come, first serve basis for $500 monthly payments for 18 months. What do you think about Jack Dorsey contributing $1 million to kickstart St. Louis’ guaranteed basic income program? Let us know in the comments section below. View the full article

Banking giant JPMorgan Chase has debuted its blockchain-based collateral settlement system. Blackrock became the first client to use JPMorgan’s Tokenized Collateral Network (TCN). The world’s largest asset manager used the system to convert shares in one of its money market funds into digital tokens, which it then used as collateral in an over-the-counter derivatives trade with Barclays Plc. JPMorgan Debuts Tokenized Collateral Network JPMorgan Chase & Co. has completed its first blockchain-based collateral settlement for clients, Bloomberg reported Wednesday. Tyrone Lobban, head of Onyx Digital Assets at JPMorgan, revealed in an interview that Blackrock, the world’s largest asset manager, utilized JPMorgan’s Tokenized Collateral Network (TCN) to convert shares from one of its money market funds into digital tokens. These digital tokens were subsequently used as collateral in an over-the-counter derivatives trade with Barclays Plc. “Blackrock and Barclays are now live on TCN, an application which sits on J.P. Morgan’s Onyx Digital Assets platform, operating as a private blockchain which is used for tokenized asset movements including collateral settlements,” the banking giant’s press release details. JPMorgan described on its website: Tokenized Collateral Network (TCN) is an application enabling investors to utilize assets as collateral. Transfer collateral ownership without moving assets in underlying ledgers — while remaining invested — starting with money market funds. Lobban explained that JPMorgan’s blockchain network, Onyx Digital Assets, facilitated nearly instantaneous collateral transfers, adding that when deployed at scale, this technology would increase efficiency by unlocking tied-up capital, making it available as collateral in ongoing transactions. JPMorgan tested TCN using an internal transaction in May. Ed Bond, JPMorgan’s Head of Trading Services, pointed out that the bank also plans to use the application to enable clients to utilize a broader range of assets as collateral, including equities and fixed income. Noting that the bank already has a pipeline of other clients and transactions for TCN, the executive emphasized: Institutions on the network can use a wider scope of assets to meet any collateral requirements they have on the back of trading. Tom McGrath, deputy Global Chief Operating Officer of the Cash Management Group at Blackrock, commented: “Money market funds play an important role in providing liquidity to investors in times of high market volatility.” He added: The tokenization of money market fund shares as collateral in clearing and margining transactions would dramatically reduce the operational friction in meeting margin calls when segments of the market face acute margin pressures. What do you think about JPMorgan’s Tokenized Collateral Network? Let us know in the comments section below. View the full article

Seven U.S. senators have called on the Treasury Department and the Internal Revenue Service (IRS) to “implement the proposed crypto broker reporting rule as rapidly as possible.” The lawmakers stressed: “We are alarmed by the self-inflicted two-year delay for the rule’s implementation.” Senators Want Crypto Tax Reporting Rule Implemented Swiftly Senators Elizabeth Warren, Angus King, Richard Blumenthal, Gary Peters, Bernie Sanders, Sheldon Whitehouse, and Brian Schatz sent a letter to Treasury Secretary Janet Yellen and Internal Revenue Service (IRS) Commissioner Daniel Werfel on Oct. 10 concerning cryptocurrency taxation. “We write regarding the Treasury Department and Internal Revenue Service’s (IRS) recently proposed rule concerning tax reporting requirements for crypto brokers,” the letter begins. “We are alarmed by the self-inflicted two-year delay for the rule’s implementation, which would contravene the requirements of the bipartisan Infrastructure Investment and Jobs Act, disadvantage law-abiding Americans, and cause the federal government to lose out on billions of dollars in tax revenue,” the lawmakers emphasized, adding: We urge your agencies to limit this troubling delay and implement the final rule as swiftly as possible, while maintaining the rule’s substance in the face of industry attacks. The reporting rule requires brokers to “provide crypto users with the information they need to file their taxes through a modified 1099 form” and “provide the IRS with income information from crypto trades so that would-be tax avoiders are easier to track down,” the senators explained. Moreover, the rule defines “brokers” to include “any party who facilitates crypto sales while in a position to know the identity of the seller and the nature of the transaction,” the letter clarifies. “Limiting any further delay in the implementation of the Administration’s proposed rule would combat industry efforts to evade regulation, provide clarity to law-abiding taxpayers, and generate billions in tax revenue from a chronically tax-avoidant industry,” the lawmakers noted, adding: Accordingly, we request that the Treasury Department and IRS implement the proposed crypto broker reporting rule as rapidly as possible and ask that you provide an update by October 24, 2023 on your efforts to do so. What do you think about the senators asking the Treasury and the IRS to implement the proposed crypto tax reporting rule as rapidly as possible? Let us know in the comments section below. View the full article

Coinbase’s chief legal officer has called on U.S. Congress to pass sensible crypto legislation following reports that Hamas has amassed millions in cryptocurrency amid the escalating Middle East conflict. “We need this industry flourishing in nations committed to the rule of law, not driven to places where human rights and public safety mean much less,” the executive stressed. ‘We Need Sensible Crypto Legislation Passed’ The chief legal officer of cryptocurrency exchange Coinbase (Nasdaq: COIN), Paul Grewal, has called on U.S. Congress to swiftly pass sensible crypto legislation as the conflict in the Middle East escalates. In a post on social media platform X on Wednesday, Grewal opined: “What’s happened in and to Israel is evil. No funds should EVER be used to support Hamas or any other organization responsible [for the war] — whether those funds are in the form of fiat currency, gold, crypto, or whatever.” In a follow-up post on X, the Coinbase executive emphasized: That’s also why we need sensible crypto legislation passed here in the United States without further delay. We need this industry flourishing in nations committed to the rule of law, not driven to places where human rights and public safety mean much less. Currently, the U.S. Securities and Exchange Commission (SEC) sees all crypto tokens, except bitcoin, as securities, bringing crypto platforms under its regulatory purview. However, many contend that the SEC’s regulations pertaining to cryptocurrencies lack clarity, and SEC Chairman Gary Gensler has adopted a litigation-heavy approach to regulate the industry. Additionally, the SEC has lost several legal battles against crypto firms, including Ripple Labs and Grayscale Investments. Grewal’s statement on Wednesday followed reports claiming that Hamas had received approximately $41 million in cryptocurrency over a two-year period. As per the Israel Police, the militant organization used crypto exchange Binance for fundraising. The Israel Police announced on Tuesday that they had frozen crypto accounts at Binance allegedly used by Hamas along with a bank account at British bank Barclays. The Coinbase chief legal officer proceeded to emphasize that his crypto exchange “has been laser-focused on rooting out bad actors seeking to use crypto for illicit purposes.” He added: “We do all we can — KYC checks, sanctions screening, SAR reporting, strong law enforcement partnerships, you name it — so this doesn’t happen on our platform.” What do you think about the Coinbase executive calling on Congress to pass sensible crypto legislation without delay? Let us know in the comments section below. View the full article

Grocery chain Trader Joe’s filed a lawsuit this month against the decentralized exchange (dex) platform Trader Joe for trademark infringement. The suit, filed in federal court in Los Angeles, alleges that Trader Joe illegally copied the Trader Joe’s brand name and seeks to bar the exchange from using the name. Supermarket Trader Joe’s Says Dex Platform Causes Reputational Damage and Brand Erosion Trader Joe’s, the national chain of grocery stores known for its private label products, sued Trader Joe in federal court for illegally using its trademark. The lawsuit alleges that the dex platform, which launched in 2021, infringes on Trader Joe’s brand name. The grocery retailer outlined several instances of alleged illegal use, including Trader Joe naming their exchange “after the supermarket” without permission and using the exact “Trader Joe’s” trademark on their website and social media. Trader Joe’s sent multiple cease-and-desist letters demanding the exchange stop using the name, which were allegedly ignored. The lawsuit claims that the exchange’s use of a confusingly similar name causes reputational damage and erodes Trader Joe’s brand recognition. The complaint seeks an injunction barring further use of Trader Joe’s trademarks and domain names. “​​Defendants’ ‘Trader Joe’ branding is designed to allow them to commercially profit from Trader Joe’s famous mark and broader reputation by causing confusion as to the source, sponsorship, affiliation, or endorsement of defendants’ website and services and by trading on Trader Joe’s hard-earned goodwill and name recognition,” the supermarket’s lawyers argue. Founded in 2021 by pseudonymous developers Cryptofish and Oxmurloc, Trader Joe operates a dex, liquidity pools, and lending services on the Avalanche blockchain with over $76 million in total value locked. The exchange also has a native token, JOE, currently trading around $0.23. Trader Joe’s alleges the exchange misled an international domain name dispute resolution process by claiming the platform was named after the developer’s brother Joe Liu. The complaint calls this a fraudulent attempt to avoid transferring the traderjoexyz.com domain name. The lawsuit asserts counts of federal trademark infringement and dilution, cybersquatting, unfair competition, and conversion. Trader Joe’s is seeking injunctive relief, damages, and legal fees. What do you think about Trader Joe’s suing the decentralized exchange over its name? Share your thoughts and opinions about this subject in the comments section below. View the full article

In a recent courtroom showdown, Caroline Ellison, the former CEO of Alameda Research, provided key insights into the operations of FTX and its alleged improprieties. Her revelations, documented by Inner City Press correspondent Matthew Russell Lee, could play a critical role in the ongoing fraud trial against Sam Bankman-Fried, the former CEO of FTX. Former Alameda CEO Caroline Ellison Dives Deep Into the FTX Debacle On Thursday, U.S. District Judge Kaplan reminded Caroline Ellison of her oath, marking the beginning of a series of revelations about the inner workings of FTX. Mark Cohen, representing Sam Bankman-Fried, delved into specifics, asking Ellison about the “fiat account.” Ellison confirmed its existence, revealing that while she was uncertain about the exact number of sub-accounts, saying there were “at least dozens,” according to the X stream published by Matthew Russell Lee from the Inner City Press. As the line of questioning progressed, Ellison was probed about her time at Alameda and her interactions with Sam Bankman-Fried. She conceded to Cohen’s assertions that she found some of Bankman-Fried’s claims to be accurate once she joined Alameda. When questioned about Bankman-Fried’s character, she stated he was “ambitious” and he encouraged her to adopt the same trait. The dialogue took an interesting turn when Cohen broached the topic of Solana, the layer one (L1) blockchain Bankman-Fried championed. Ellison plainly admitted her lack of enthusiasm for it, a sentiment contrasting starkly with Bankman-Fried. The duo’s contrasting personalities were further highlighted when Ellison acknowledged their different reactions to stress and divergent fashion sensibilities. The discussions grew tense as Cohen introduced various exhibits and statements, met with objections from the prosecution, questioning their relevance. In a notable moment, Ellison expressed her concerns about Alameda potentially jeopardizing FTX customers’ funds. She revealed that she had shared these concerns not only with Bankman-Fried but also with other colleagues, namely Gary Wang and Nishad Singh. Cohen’s cross-examination took a financial turn when he asked about Ellison’s attempts to hedge financial risks in September 2022. Ellison recounted her calculations, suggesting that billions should be sold to hedge, but also admitting to the uncertainty of the situation. A significant revelation came when she mentioned a loss of $100 million due to the depreciation of UST, an algorithmic coin tied to Luna and the Terra blockchain. In the final moments before the lunch break, Cohen touched upon an alleged bug in the system, and Ellison detailed the bug was discovered in May. The line of questioning, led by Bankman-Fried’s lawyer focused on Alameda’s financial intricacies. He probed Ellison about Alameda’s liquid assets, to which she confirmed the company’s lack thereof. A significant revelation was made when she disclosed Alameda’s repayment of “$5-10 billion” in the summer, with “$5 billion” being repaid just in June. Cohen’s examination took a deeper dive into specific exchanges between Ellison and various entities. Discussing her communication with Genesis on June 18, Ellison revealed it revolved around “sending the balance sheet” and that there were “eight” versions of it. A particularly noteworthy quote emerged when she was questioned about third-party loans. “It might look like Alameda was funneling money to FTX executives,” Ellison candidly shared. The narrative further unwound as Cohen brought up Bankman-Fried’s attempts to raise money from a Saudi prince, and Ellison’s skepticism of FTX’s potential investment in a company named Modulo. Towards the end, Cohen referenced a tweet by Ellison, where she claimed that Alameda had returned most of its loans. Ellison clarified, stating, “Not really. We returned third party loans, by taking out more loans from FTX.” As the discussion shifted to an all-hands meeting in Hong Kong, Ellison mentioned that Sam Bankman-Fried had hinted at starting a new company. The cross-examination concluded with a significant admission by Ellison, confirming that she had indeed informed employees about alleged wrongdoing within the company. In a riveting turn of events, a re-direct by government prosecutors centered on pinpointing the individuals involved in the alleged malfeasance. When questioned about who was involved in the purported wrongdoing, Ellison unhesitatingly responded, “I said Sam, Gary, Nishad and I – and that the decision to repay loans with customer funds was Sam’s.” As the inquiry delved deeper into her motivations for disclosure, Ellison poignantly remarked, “We had already failed. So I could,” Russell Lee’s account of the situation detailed. At the end of the testimony, Bankman-Fried’s lawyer claimed Caroline Ellison “went beyond the scope of the agency.” The Federal prosecutors responded that “Ms. Ellison said she would always defer to Sam. Here Mr. Bankman-Fried was aware she was going to have this meeting. He did not seek to remove her [as] CEO – instead, he provided input. So she was his agent.” What do you think about Ellison’s testimony against Bankman-Fried? Share your thoughts and opinions about this subject in the comments section below. View the full article

A congressional committee in Brazil has concluded that four Binance officials, among them company CEO Changpeng Zhao (CZ), should be indicted. The suggestion follows a probe targeting crypto platforms suspected of operating pyramid schemes and can potentially affect the global crypto company’s plans in Brazil and add to its legal challenges. Parliamentary Committee Suggests Indictment of Binance CEO, Senior Brazil Staff Binance, the world’s largest cryptocurrency exchange by daily trading volume, may face another legal battle if Brazilian authorities accept the recommendation of a committee at the National Congress to indict some of its leaders, including founder and chief executive Changpeng Zhao. The committee, which had been investigating crypto-related Ponzi schemes, has accused CZ and three senior local Binance employees of fraudulent management, offering or trading securities without prior authorization as well as operating a financial institution again without authorization, Bloomberg reported. Comprised of 28 members of the Chamber of Deputies, the lower house of parliament, the committee also suggested that Brazil’s Federal Public Prosecutor’s Office should examine the tax compliance of Binance’s local unit and a separate arm, Binance Capital Management. Reacting to the news, the exchange said in a statement that it went to “great lengths” to actively collaborate with the committee which wrote in a report accompanying its recommendations that Binance is “surrounded by suspicion” in Brazil. Binance also emphasized it “strongly rejects any attempts to make Binance a target or even expose its users and employees with allegations of bad practices without any proof, amid competitive disputes given the company’s leadership position in Brazil and in the world.” The Brazilian lawmakers also recommended that the country’s securities regulator, Comissão de Valores Mobiliários (CVM), investigate Binance for “repeated violation of the securities market rules.” The exchange has been accused of continuing to sell derivatives despite having been ordered to stop. Besides a CVM probe against its local branch, which may result in more fines and penalties, Binance’s proposal to acquire a Brazilian securities brokerage, announced in early 2022, has not been approved yet by the country’s regulatory bodies and central bank. The parliamentary committee’s recommendation for indictment may turn into another setback for this year. The crypto behemoth has been dragged into legal battles and other clashes with financial regulators in the U.S., Europe, and elsewhere. Do you think Brazilian authorities will accept the committee’s recommendation to indict Binance officials? Tell us in the comments section below. View the full article

The decentralized exchange (dex) Thorswap has paused operations after a series of funds stemming from the FTX hacker was sent to the dex protocol. Thorswap took to social media and said that the team “stands firmly against any and all criminal actions.” Thorswap Pauses Amidst FTX Hack Fallout; RUNE Value Takes a Hit After the FTX hacker moved thousands of ether (30,000 ETH) for the first time since the November 2022 breach, onchain observers noted that the funds were sent to Thorswap and the decentralized finance (defi) application Railgun. On October 6, 2023, Thorswap updated the community and said that the dex was down for maintenance. The dex team said: Yesterday, following a careful evaluation of the situation and consultation with advisors, legal counsel, and law enforcement, the decision was made to temporarily transition the Thorswap interface into maintenance mode. The dex will remain paused until “until a more permanent and robust solution” becomes available. Thorchain’s native crypto asset RUNE dropped 8.6% on the news. Thorswap said the developers are doing everything they can to get the application back up and running again. “Swaps are paused. LP actions, Earn (savers), Borrow (lending), Staking actions are all fully operational,” Thorswap further detailed. Consensys product manager Taylor Monahan insisted on the social media platform X (formerly Twitter) that over the past four months, “more than 50% of the ether to Thorswap router to bitcoin transactions have been stolen funds.” What do you think about the Thorswap pause? Share your thoughts and opinions about this subject in the comments section below. View the full article

Avalanche rose to a six-week high on Friday, after the token climbed above a key resistance level. The move saw price rise by as much as 7%, despite the global crypto market cap mostly in the red in today’s session. Toncoin remained higher, following recent gains. Avalanche (AVAX) Avalanche (AVAX) was a big mover on Friday, as the cryptocurrency rose by as much as 7% during the day. Following a low of $9.85 on Thursday, AVAX/USD rose to a peak of $10.80 earlier in today’s session. The move pushed avalanche to its highest level since August 29, past a key price ceiling of $10.00 in the process. Looking at the chart, the relative strength index (RSI) also escaped a resistance level of its own at 65.00. At the time of writing, price strength now resides at 68.54, which is its highest point since mid-April this year. The next target for current buyers will likely be $11.00, however with the price now overbought, a reversal could also be on the cards. Toncoin (TON) Toncoin (TON) was in the green for a second straight session, moving closer to a key resistance level in the process. TON/USD jumped nearly 3% higher on Friday, peaking at the $2.15 level at the time of writing. Overall, this is the strongest point TON has hit since the end of September, when price last collided with a ceiling of $2.25. From the chart, it appears that this occurred as the RSI continued to close in on a ceiling at the 57.00 mark. With price strength now at a reading of 54.22, the chances are high that a move to 57.00 will result in toncoin trading at $2.25. Register your email here to get weekly price analysis updates sent to your inbox: Do you expect toncoin bulls to push price above $2.25 this weekend? Let us know your thoughts in the comments. View the full article

PRESS RELEASE. RealFevr is thrilled to announce the imminent launch of “Organya: The Interplenetary Football Strategy Game ” on October 18th, 2023. Organya marks a monumental leap forward in web3 gaming, not only evolving from the beloved FEVR Battle Arena but also introducing an entirely new universe known as The Organya World. In Organya, players will become the architects of their own football dream teams, featuring their favorite football legends, thanks to RealFevr’s exclusive intellectual property. These teams will engage in strategic battles where players take on the role of coaches, competing against one another to secure glory and substantial rewards. This dynamic game will offer a thrilling array of modes, including Arenas for head-to-head showdowns, Survival with single-life intensity, and Playoffs featuring knockout-style tournaments and enticing prize pools. Organya promises an exhilarating odyssey into the universe of football, with immersive gameplay, storytelling, stunning design upgrades, and a chance for players to etch their names in history. As RealFevr puts the finishing touches on Organya and prepares for its official launch, users can pre-register at organya.world and get ready to embark on an unforgettable journey on October 18th, 2023. RealFevr was the world’s first company to launch football video moments as NFTs, with over 150,000 packs sold, including Cristiano Ronaldo’s first-ever career goal, exclusively available through RealFevr’s platform. The company has partnered with prestigious organizations such as the Royal Spanish Football Federation and the German Football Federation. Currently, RealFevr is dedicated to enhancing the gaming utility of NFTs and their token $FEVR, by introducing Organya. 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 Office of Foreign Asset Control (OFAC) under the Treasury has released an updated version of the specially designated nationals (SDN) list, featuring multiple alleged fentanyl traffickers from China along with their associated cryptocurrency addresses. These highlighted crypto addresses are connected to decentralized networks such as Bitcoin, Ethereum, and Tron. OFAC Targets Chinese Fentanyl Traffickers; Sanctions 17 Crypto Addresses Continually broadening its database of crypto addresses linked to potential wrongdoers, OFAC identified 17 new addresses on October 3, 2023. Associated with blockchains like Bitcoin, Ethereum, and Tron, as well as digital assets like tether (USDT), these addresses were linked to a network of fentanyl suppliers primarily located in China but also connected to entities in Canada. Chainalysis published a report on the topic, revealing that the addresses collectively received “$3.8 million worth of cryptocurrency.” Several individuals, including Bahman Djebelibak, Shen Xianbiao, Wang Jiantong, Zhang Wei, Xia Fengbing, and Wang Mingming along with the Canada-based company Valerian Labs, were sanctioned by OFAC. According to Chainalysis’ study, Fengbing managed the crypto addresses for an organization called Jiangsu Bangdeya New Material Technology. The firm’s Reactor software found that the sanctioned addresses also had ties to numerous “mainstream exchanges.” Furthermore, a considerable portion of funds originated from darknet markets. This update follows OFAC’s recent sanctions on several BTC addresses allegedly related to Iran-linked ransomware activities. In addition to the OFAC sanctions, the U.S. Department of Justice (DOJ) announced eight indictments against the ring of fentanyl, methamphetamine, and precursor chemical dealers. The indictments target the string of companies and individuals for openly advertising illicit chemical sales and using techniques to evade law enforcement. “We know that the global fentanyl supply chain, which ends with the deaths of Americans, often starts with chemical companies in China,” Attorney General Merrick Garland said. What do you think about OFAC flagging 17 crypto addresses? Share your thoughts and opinions about this subject in the comments section below. View the full article

Ethereum snapped a four-day losing streak on Friday, as markets reacted to the latest nonfarm payrolls in the United States. Payrolls came in at 336,000, which is nearly double the 170,000 jobs many thought would be added in September. Bitcoin retreated from a brief stint above the $28,000 level. Bitcoin Bitcoin (BTC) had a brief stint above the $28,000 level late on Thursday, as market volatility increased ahead of today’s nonfarm payrolls report. BTC/USD peaked at $28,091.86 towards the tail end of yesterday’s session, before slipping to a bottom of $27,375.60 earlier today. Prices have since rebounded, with the world’s largest cryptocurrency now trading at $27,649.56 as of writing. Bitcoin chart by TradingView BTC retreated from yesterday’s high after the relative strength index (RSI) failed to sustain a surge above a key resistance level of 60.00. The index is currently at a reading of 58.95, however there could be another attempt to move beyond 60.00 in the coming hours. In the event that the next advance is successful, there is a strong possibility bitcoin will be back trading above $28,000. Ethereum Ethereum (ETH) returned to the green in today’s session, following a spell of four consecutive days trading lower. After hitting a one-week low of $1,608 on Thursday, ETH/USD rose to a peak of $1,649.13 earlier in the day. This came as bulls opted to reenter the market following a breakout below a support point at the $1,620 level. Ethereum chart by TradingView Earlier gains have somewhat faded, as ETH approached a ceiling near the 50.00 level on the RSI indicator. Currently, price strength is tracking at 48.93, with ethereum trading at $1,634, and bulls maintaining a target of $1,700 in the short-term. Register your email here to get weekly price analysis updates sent to your inbox: Will ethereum move beyond $1,700 over the weekend? Leave your thoughts in the comments below. View the full article

U.S. Securities and Exchange Commission (SEC) is trying to force Elon Musk to testify in its probe into his purchase of Twitter, now X. After some back and forth, the billionaire investor bought the social media platform for $44 billion in October 2022 and the SEC’s probe is focused on Twitter shares he had acquired ahead of the takeover. SEC Seeks to Compel Elon Musk to Testify Over Twitter Stock Purchases The U.S. securities regulator has asked a judge to force the owner of X, Elon Musk, to provide testimony over Twitter stock transactions carried out before the acquisition of the social media networking service. The move comes after he failed to do so last month, Bloomberg and Reuters reported, and opens another chapter in Musk’s feud with the SEC. Launched in April 2022, the investigation aims to establish if the entrepreneur broke federal securities laws when he bought shares in Twitter. It also looks into his statements and filings related to the deal, with the Commission questioning whether he presented the appropriate paperwork. Before closing the deal to acquire Twitter, Musk had bought a 9.2% stake in the company in March, last year, and disclosed the stake to the SEC in April. Later that month, the financial regulator queried him about the disclosure of this major stake. On Thursday, the regulatory body revealed it subpoenaed Musk in May 2023 and he initially agreed to appear to testify at its San Francisco office on Sept. 15. However, two days before the scheduled interview, he raised “several spurious objections,” according to the SEC. Elon Musk accused the government agency of trying to harass him and complained about the chosen location for their meeting. Investigators proposed new dates and agreed to move the interview to Fort Worth, Texas, near Musk’s current residence, but he refused to show up. Since the start of the probe, the SEC has requested thousands of documents from Musk and others involved. According to its Oct. 5 filing in San Francisco federal court, he has so far testified twice in July 2022. Alex Spiro, an attorney for the investor, issued a statement, saying: The SEC has already taken Mr. Musk’s testimony multiple times in this misguided investigation – enough is enough. Elon Musk’s story with the SEC does not start with Twitter. In 2018, he was probed for his contribution to the self-driving car claims by electric vehicle manufacturer Tesla, which he chaired. He has also clashed with the U.S. Justice Department and the Biden administration. In a comment on X to a post on the latest and previous such cases, Musk stated that “a comprehensive overhaul of these agencies is sorely needed.” He also suggested “a commission to take punitive action against those individuals who have abused their regulatory power for personal and political gain,” adding: “Can’t wait for this to happen.” What are your thoughts on Elon Musk’s clash with the SEC and other U.S. authorities? Share them in the comments section below. View the full article

Integrating crypto into the global financial system has so far proved to be problematic to due what Przemek Kowalczyk, the chief product officer (CPO) of the fintech startup Ramp, described as “digital incompatibility.” Kowalczyk, a data scientist, told Bitcoin.com News that the “two paradigms” use distinct frameworks which in turn makes it difficult for the two to be combined. Prioritizing User Experience In written answers sent to Bitcoin.com News, Kowalczyk said this is because crypto is “decentralized and open source-based.” In contrast, the banking sector is more attuned to a “top-down” approach. Meanwhile, when asked to identify some key factors which Web2 and Web3 must consider before attempting to integrate crypto with conventional payment platforms, Kowalczyk said the most important thing is knowing that not everyone is “interested in the complexities pervading the blockchain.” Understanding this means platforms that offer crypto on and off-ramp services should aim to make their user interface not only easy to use but “highly navigable.” While many financial freedom advocates are still very opposed to the implementation of know-your-customer (KYC) or anti-money laundering (AML) measures by Web3 companies, Kowalczyk told Bitcoin.com News that doing this can help build consumers’ confidence in the industry. The Ramp Network CPO, however, said this should done without affecting the user’s experience. Below are Przemek Kowalczyk‘s written answers to all the questions that were sent to him via Telegram. Bitcoin.com News (BCN): For new users, the journey from fiat to crypto or vice-versa is still quite complicated. The fear of not being able to convert their crypto back to fiat often makes many prospective users unwilling to embark on this journey. On the other hand, many new users often have to rely on an external platform to buy or sell their crypto assets and this can be frustrating as well as time-consuming. Can you describe to our readers what the envisaged frictionless merchant-customer experience should look like? Przemek Kowalczyk (PK): It should be a one-click system where all of the technical intricacies involved in converting crypto to fiat (and vice versa) are taken care of in the background. At Ramp we are trying to deliver an Apple Pay-like experience, such that when a Web3 product requests your payment, all you have to do is click once, and the transaction is done. A truly frictionless merchant-customer experience is where users don’t ever have to learn about the intricacies involved in the crypto-fiat buy and sell process. Recently, we introduced our off-ramp solution that offers payouts to credit cards directly. I believe such steps are necessary to help lure in more users from traditional finance (trad-fi) into crypto. BCN: What do think are some of the factors that Web2 or Web3 businesses should consider before integrating crypto on-ramp and off-ramp solutions for processing payments? PK: First and foremost, any platform offering crypto on/off ramp should come with an easy-to-use, highly navigable user interface. This is important because not everyone is aware/interested in the complexities pervading the blockchain. Secondly, the payments being processed by these businesses need to be processed in a timely manner, with conversion rates being reasonable. Lastly, we need platforms that are inclusive and easily accessible so that users from all over the world can benefit from them. Transparency is another key facet to consider when having this conversation, with businesses being upfront about things like fees, transaction charges, etc. BCN: What are the biggest challenges to seamlessly integrating crypto into the global financial infrastructure? Do you agree that traditional finance (tradfi) institutions have been relatively slow to integrate crypto? PK: The biggest hurdle to overcome when marrying crypto with trad-fi is that of ‘digital incompatibility.’ To put it simply, the two paradigms use completely different frameworks, with one being decentralized and open source-based while the other is top-down, controlled, and regulated in its structure. As a result, they encounter a lot of friction when operating in each others’ neck of the woods (such as difficulty in converting assets). That being said, as more and more companies in the trad-fi realm begin to recognize crypto’s value, the two industries are starting to work in conjunction with one another rather than being at loggerheads. A prime example of this change is Paypal’s recent decision to release its very own stablecoin. BCN: In terms of unlocking new economic value, do you believe that easier fiat on-ramping could boost user acquisition or retention for crypto-native businesses? PK: Absolutely! Allowing the non-crypto natives to make inroads into this space in the easiest manner possible would accelerate their shift towards Web3. The digital asset platforms should be able to transact with the fiat economy seamlessly. Also, as more people realize how easy it is to navigate between the two sectors, it will become progressively easier for crypto projects to retain non-native customers. BCN: Your company Ramp Network offers a non-custodial solution that businesses can integrate into their platforms or apps to provide easy on- and off-ramp. In your opinion, why should businesses and users care about using a non-custodial solution? PK: First off, let’s understand what the term ‘non-custodial’ means. It simply refers to a financial infrastructure where the owner of an asset is fully responsible for managing it. Simply put, the assets are in possession of the individual themselves rather than a third party like a bank, financial institution, etc. In fact, such a setup is the very basis of the entire Web3 revolution. Over the past 2-3 years, a growing number of people are beginning to realize the potential of such a financial setup, something that is highlighted by the fact that between 2021 and 2022 alone, the number of defi users in the world rose by a whopping 40%! BCN: When talking about international financial transactions, AML and KYC obviously pop up. How do you help businesses ensure AML and KYC compliance while providing a smooth user experience? PK: Crypto is still in its nascency, and as a result, there are some bad actors using this space for nefarious reasons. Naturally, it pushes many governments to regulate the ecosystem to protect customers. We always proactively comply with the laws, as it’s vital for crypto’s long-term health, and for users to feel safe when using web3 platforms. That said, it is also essential to keep our user experience in mind and make these processes more accessible to the average crypto consumer. For example, when dealing with digital assets, it can be beneficial to make use of a dynamic verification system, which adjusts the KYC requirements from user to user on a per-transaction basis. BCN: Ramp Network is reported to have set up a base in Brazil as the first step in Latin American (Latam) expansion. Can you talk about what makes Latam so attractive and whether it can fuel the next stage of growth for crypto projects? PK: Latin America is the fastest-growing crypto region in the world. The region has a digitally savvy youth population that is educated and online. A large number of South Americans work in other countries and send remittances back home. These factors combined with the lack of widespread access to financial services make South America ripe for crypto adoption. Brazil, in particular, has a central bank-supported national payment system called Pix that lets you make instant payments from your bank account. I believe that such innovative solutions would help bridge the gap between crypto and traditional finance. We at Ramp have integrated Pix as a payment method, allowing users a fast and convenient way to purchase crypto. What are your thoughts about this interview? Let us know what you think in the comments section below. View the full article

While centralized exchanges (cexs) are instrumental in helping new users grasp all things crypto, they nevertheless do not go “the extra mile in educating their audience properly,” Alexandru Carbunariu, the CMO at the edutech simulator Banksters, has asserted. According to Carbunariu, a Web3 advisor, properly educating newbies includes making the experience more interactive and fun. He added that Web3 platforms should take a leaf out of their Web2 counterparts’ playbook. Trading Through Gamification Represents the Future Expanding on the argument that education should be more fun, the CMO said he concurred with those who believe gamification to be the right way of encouraging more positive trading behavior. However, Carbunariu told Bitcoin.com News that while “trading through gamification may represent the future,” many of the current Web3 games may “have taken a wrong turn.” When asked for his thoughts on the so-called trade-to-win strategy, the Banksters CMO insisted that such a model is better than play-to-earn (P2E) models because it engenders confidence. He suggested that such a model can be ideal for newcomers. Meanwhile, in written answers sent to Bitcoin.com News, Carbunariu also articulated why competition is necessary for Web3 platforms looking to get communities attached to their respective products. Below are Alexandru Carbunariu‘s responses to all questions sent. Bitcoin.com News (BCN): Centralized exchanges (cexs) are one of the gateways to all things crypto for new users and most of them have taken on the job of educating newcomers. In your opinion, what can they do better or differently to bring in more Web2 users via education? Alexandru Carbunariu (AC): Speaking from experience, centralized exchanges don’t take the extra mile in educating their audience properly. A lot more things should be done in terms of education, to make it more fun, more rewarding as well as more interactive. We should check what Web2 asset platforms do and get inspired by their work. We rarely see that in Web3. However, we believe that with new regulations, specific training models will come up. What needs to be done in order to attract Web2 users: Create interactive training that will provide incentives (like we have seen Revolut doing). Use normal KOLs [key opinion leaders] to present their products in a transparent [way] but also using normal non-technical language. Try to introduce academy programs, where normal users can attend, therefore the knowledge will be much higher. Provide transparency when involving risks. Introduce alerts when the user is lost in the complex UX / UI of the platform. BCN: Do you believe gamification is the right approach to encouraging positive crypto trading behavior with long-term benefits? AC: Of course. Creating a more fun environment can be relaxing for the user, and if you don’t mix that with financial loss, it’s actually perfect. We are one of the first to build this type of concept. Our A/B tests, focus groups as well user validation were high, meaning that we were on the right track. I believe that the Web3 games have taken a wrong turn, and the project owners have lost focus. Web3 should be the gateway to the future and it should provide new ways, apart from the traditional ones, in order to onboard as many users. Trading through gamification can represent the future. First users need to understand it, then they will trade or invest with caution. If their first experience provides them with losses, then they are unlikely to come back. This is why Banksters has stepped in and is helping them to understand more about crypto, non-fungible tokens (NFTs), and trading. BCN: Can you describe what the trade-to-win model is all about and how this differs from play-to-earn? AC: In the past 2-3 years we have seen the “P2E” as well as the “P&E” types. One thing they have in common is the fact that they have not identified a balance that will give them a much-needed token stability. Our Trade2Win model lets the user: First test the product Learn about the product Play around with it And become a winner This is the model that provides more confidence, and the rewards will come only at the end, meaning if you are a winner then the rewards will be won. This is a more or less “shadow” plan from the trading world, where you need to practice, learn, trade and then gain profits. BCN: Trading is an umbrella term that encompasses various strategies based on an individual’s mindset, emotional volatility, and other factors. How does your platform help users figure out an optimal strategy for them through low-risk education? AC: This is a very good question. To give a more of a straight answer: Yes and No. Basically, we can cover this through our so-called “Abilities” which can be compared with “Superpowers” a hero avatar has in the Web2 games. Abilities actually “copy” what is happening on the real market. There are abilities like: Elon Musk Tweet Vitalik’s Support CZ’s Effect Market Squeeze Pump and Dump Hype Insider Trade These are real-life trading events, and in many cases, traders or users don’t understand them. What Banksters did was to analyze all of the historical pricing for these events, develop a price algorithm then infuse them into these Abilities. Now the user will understand what happens to their portfolio and how it will react when these Abilities are used. This actually provides no risk for the user as well as covers a new mindset, emotional volatility, and other factors. BCN: Whether it’s crypto trading or something else, competition is often an integral part of that. How is Banksters encouraging competition among users? AC: They are highly competitive! We often have tournaments and live streams which reward users with real USDT. It drives them to use the product and makes them happy with both the game but also the environment. We strongly believe that competitions, challenges, tournaments and livestreams definitely help the community being attached to the product, while the team can gather transparent and vital feedback. BCN: When discussing factors holding back large-scale adoption of crypto, lack of education and intuitive user interface (UI) often get the most attention. However, could it be that we have not had mass adoption because the crypto ecosystem is still struggling to find the product-market fit? AC: Another good question. The answer is pretty simple. It’s about money. However, it’s more than that. For example: Users: A lot of people have lost their hard-earned money during the bear market while listening to the unprepared and uneducated key opinion leaders (KOLs) who often accept to promote projects with no filters. Project Owners: If one puts two years and $10,000 in the right way, they could raise between $500,000 and a million dollars while having absolutely no experience in blockchain tech, development, management, marketing, or product growth. This, however, has changed and now a lot of Web2 specialists are entering the Web3 space and I believe the standard will go just higher. Centralized Exchanges: Providing crazy leverages, with no education, with no warning, and to top all that with FTX keeping their crypto wallet keys in a Google form. At the end of the day, human nature had to kick in, meaning something terrible had to happen in order for something to be changed. I think Web3 has gone through a reset in the past 2-3 years, and now, finally, we can see some highly professional projects with funding resources delivering innovative products. Such projects have higher odds of finding product-market fit and accelerating adoption. What are your thoughts about this interview? Let us know what you think in the comments section below. View the full article

Dubai’s Virtual Assets Regulatory Authority (VARA) recently said the company distributing and marketing islamic coin (ISLM) lacks the authority to do so. VARA said Bored Gen DMCC must cease marketing activity until it obtains the appropriate approvals. The steps taken by the regulator came just a few days after the crypto project was named the blockchain innovation of the year. Unauthorized Issuance and Distribution of Islamic Coin The Dubai digital assets regulator, the Virtual Assets Regulatory Authority (VARA), has alerted investors and market participants to what it describes as “an unauthorized issuance, marketing and retail distribution” of islamic coin (ISLM) by Bored Gen DMCC (BG). In an alert issued on Oct. 4, the regulator insisted that BG is not a licensed or registered virtual assets (VA) issuer hence its activities are in violation of the region’s regulations. VARA also said the public sale of the token through a “Regulation D Offering arranged by Opendeal Portal LLC” may be a potential violation of Regulation III.A.1. According to the regulator, BG has not been granted the required approval by VARA. Islamic Coin Marketed Without Approval The action taken by VARA coms just under a month after the team behind the crypto project announced the commencement of the sale and distribution of ISLM. The steps taken by the regulator also came just a few days after the crypto project was named the blockchain innovation of the year. #IslamicCoin has been awarded for Blockchain Innovation of the Year in @entmagazineme’s annual Tech Innovation Awards 2023 in Dubai. Congratulations to the #ISLM team and our community #EntMEAwards pic.twitter.com/cb9Jsmaqgm — Islamic Coin (@Islamic_Coin) October 3, 2023 However, despite this and other milestones that the crypto project has achieved, the regulator insisted in its alert that the promoters of the token may have marketed this without approval. The regulator added: “VARA are investigating whether there has been a breach of Administrative Order No. 01/2022 Relating to Regulation of Marketing, Advertising and Promotions Related to Virtual Asset. BG are to cease marketing activity until it obtains the appropriate approvals from VARA and introduces appropriate disclaimers in connection with such marketing.” VARA added that investors and those who have been targeted by BG should notify the regulator via email. What are your thoughts on this story? Let us know what you think in the comments section below. View the full article

In 2023, several SIM swap attacks have targeted cryptocurrency advocates and high-profile industry members, including Ethereum co-founder Vitalik Buterin. Below is a comprehensive guide aimed at educating our readers on mitigating SIM swap attacks and safeguarding against hacks. Understanding the Threat: Unmasking SIM Swap Attacks Recently, Bitcoin.com News reported that Ethereum co-founder Vitalik Buterin fell victim to a SIM swap attack. Moreover, this week, an Ethereum (ETH) investor suffered a SIM swap attack, losing 22 ETH on the friend.tech blockchain social media platform, which operates on the Base network. Unfortunately, a significant number of SIM swap attacks are targeting crypto investors. The subsequent walkthrough will guide our readers on how to avert a SIM swap attack. So, what is a SIM swap attack? A SIM swap attack is a type of fraud in which a malicious actor deceives a mobile carrier into transferring the victim’s phone number to a new SIM card controlled by the attacker. Once the phone number is transferred, the attacker can receive the victim’s calls and text messages, including sensitive authentication codes sent via SMS for two-factor authentication (2FA). This breach enables the attacker to bypass security measures and gain unauthorized access to the victim’s online accounts, such as email, crypto exchange accounts, and social media profiles, leading to potential financial loss and identity theft. While mitigation efforts are never 100% effective, there are several strategies individuals can employ to combat SIM swap breaches. First Line of Defense: Online Vigilance; Password and Authentication Strategies The first step is essentially online vigilance by being cautious of phishing emails and other tactics used by attackers to gain access to your personal information. Further enhanced vigilance includes avoiding responses to suspicious communications such as unknown texts, emails, and phone calls. The second measure is to leverage strong and unique passwords that protect each online account. Third, the use of two-factor authentication (2FA) is recommended, and veering away from an SMS text message or email-based 2FA is also advisable. It’s wise to use stronger multi-factor authentication (MFA) methods such as standalone authentication applications, biometrics, or physical security keys. Engaging Your Mobile Carrier: Security Enhancements; Guarding Social Media, Online Platforms Another protective method, and one of the most important, is to engage in security measures by contacting your telephone carrier. With specific carriers, you can request additional security measures on your account. Users can also establish a unique PIN or passcode with their carrier, which adds an extra layer of security. Some telephone line carriers offer SIM protection features that add extra security to prevent SIM swap fraud. If you don’t contact your telephone carrier, you may miss out on some of the security measures that could prevent a SIM swap attack. Another measure is to avoid using your telephone number for social media applications like X (formerly Twitter) and other online platforms and applications. Alongside your phone number, be cautious about sharing personal information online as every piece of evidence a hacker can gather is useful to crack online accounts. For services that require a phone number for verification or communication, consider using a secondary number or a virtual phone number service like Google Voice. By following these steps, you can avoid a SIM swap attack and protect your finances and personal information. SIM-swapping attacks have been increasing in frequency in recent years, and the U.S. Federal Bureau of Investigation (FBI) issued a warning in March 2023 about the rise of SIM-swapping attacks, which have resulted in millions of dollars in losses. Have you taken steps to protect yourself from SIM swap attacks? Let us know your strategies in the comments section below. View the full article

A Kenyan parliamentary committee tasked with investigating Worldcoin’s activities in the African country has reportedly censured a government official over his inconsistent statements about Worldcoin’s license status. The committee also said it found that Worldcoin’s “Orbs” were not approved by the Communications Authority of Kenya as required by law. Worldcoin Allegedly Operated Without a License The Kenyan parliamentary committee investigating Worldcoin’s activities in the country recently censured the Kenyan ICT cabinet secretary Eliud Owalo over his previous pronouncements about the crypto project’s license status. The committee, chaired by Gabriel Tongoyo, said inconsistencies in Owalo’s statement issued on Sept. 11 suggest that Worldcoin may have operated for just over a year without the requisite license. As previously reported by Bitcoin.com News, Owalo is widely believed to have initially backed the crypto project. However, the cabinet secretary later appeared to make an about-face when he accused Worldcoin of not adhering to the requirements of its registration license. In response, the Kenyan parliament launched a committee charged with establishing the facts about Worldcoin’s license status, among other things. According to a report in The Nation, the parliament committee has now determined that Owalo’s testimony undermines Worldcoin’s license claims. “In the said submission, the CS [Cabinet Secretary Owalo] noted that Worldcoin started collecting data in public places on May 31, 2021, and applied for registration as data controllers in Kenya on August 22, 2022, one year after commencing their activities in Kenya, contrary to the Data Protection Act of 2019,” the committee wrote in its report. However, the committee noted that Owalo has denied proclaiming that Worldcoin’s activities in the country were above board. ‘Orbs’ Not Approved Meanwhile, in addition to the licensing issues, the Kenyan parliamentary committee said it also found that Worldcoin’s eyeball scanning devices, or “Orbs,” were not approved by the Communications Authority of Kenya. The committee further alleged that Worldcoin’s transfer and storage of user data to Amazon Web Services servers in South Africa violated section 48 of the Data Protection Act. Concerning the license status of Tools for Humanity Corp and Tools for Humanity Gmbh Germany, two companies behind the Worldcoin project, the committee said: “The two companies do not appear in the Business Registration Service database of registered businesses or companies in Kenya and hence lack the legal mandate to transact any business in Kenya according to provisions of the Companies Act, 2015.” 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

Andrei Kostin, head of the VTB Bank, one of the biggest banks in Russia, has stated that the Society for Worldwide Interbank Financial Telecommunication (SWIFT), the standard messaging system for fiat payments, “needs to be killed.” Kostin remarked that the actions of the U.S. and its use of the dollar have awakened fears in other countries that are also seeking alternatives to the system. Kostin Signals Need for SWIFT to ‘Be Killed’ The Society for Worldwide Interbank Financial Telecommunication (SWIFT), a group that provides the standard messaging protocol for making cross-border transactions in the current global banking system, needs to “be killed,” according to recent statements of Andrei Kostin, head of the VTB Bank. Kostin, who leads the second-largest bank group in Russia, recognized that for this to happen, other countries have to complete a set of actions. At the recent International Banking Forum held in Sochi, Kostin stated: SWIFT – it needs to be killed for our calculations, this matter is quite simple, but it will require certain actions, including within individual countries. Kostin was designated by the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) in April 2018 as a Russian government official who played a “key role in advancing Russia’s malign activities.” Dollar Weaponization and Alternatives Kostin referred to the weaponization of the U.S. currency against Russia and other countries as a factor that has caused other nations to diminish their use of the dollar and consider the introduction of alternatives such as national currencies. Kostin declared: The fact that the Americans used the dollar so harshly, and the Europeans used the euro, influenced a change in the mentality of many countries. They realized that they could be next. Since becoming the object of Western sanctions, Russia has begun switching to settling trade in national currencies with friendly nations. Also, the country is actively seeking alternatives to SWIFT, as Russian Finance Minister Anton Siluanov explained during the Moscow Financial Forum. Siluanov stated that at the next BRICS summit, the creation of an alternative to the SWIFT system would be discussed. SWIFT has been a tool for isolating the Russian banking system from the world, disconnecting seven Russian banks from the system in March 2022 and then expanding these measures to other credit institutions. What do you think about Andrei Kostin’s thoughts on SWIFT and its use in applying economic sanctions? Tell us in the comments section below. View the full article

The Bank of Russia offered an update about the state of the digital ruble, the Russian central bank digital currency (CBDC), which is currently in a nationwide pilot. Elvira Nabiullina, governor of the Bank of Russia, stated that the pilot was “going as planned” and that more participants and use cases would be added next year. Bank of Russia on Digital Ruble Pilot: ‘Everything Going as Planned’ The Bank of Russia has offered an update about the digital ruble and the pilot testing the functionalities of the Russian central bank digital currency (CBDC). During a forum, Bank of Russia governor Elvira Nabiullina explained the project was still ongoing and that the institution was getting feedback testing the various functionalities of this new currency. Nabiullina stated: We started the pilot project on the digital ruble with real operations and with real clients in August. Here everything is going as planned, we are testing operations, first of all the opening of wallets, transfers between citizens, [and] the payment of purchases via QR codes. Furthermore, Nabiullina stressed the bank was watching the pilot results to determine which aspects needed to be fine-tuned. Upcoming Pilot Expansion Furthermore, Nabiullina gave information about the pilot extension for the upcoming year and how this expansion would be done. On this, she declared: We are preparing to expand the project next year adding new participants, new clients, including transfers between legal entities. Thirteen banks are involved in the current pilot, which includes activities in Moscow and ten more cities in Russia, with retail payments in Moscow’s subway, which has traditionally been a testing site for innovations. Furthermore, while only 13 banks completed the necessary preparations and were approved to participate in this first phase, 16 more are to be included next year, according to the first deputy governor of the Bank of Russia, Olga Skorobogatova. The idea of a digital ruble has been gaining traction, with more than half of all Russian citizens being open to storing some of their assets in the Russian CBDC, according to a recent poll ordered by the Russian SPB Exchange. Nonetheless, Only 2% of the users polled said they were ready to keep all their savings stored as digital rubles. Skorobogatova and Nabiullina expect the digital ruble to reach mainstream adoption in Russia by 2025. What do you think about the ongoing Russian digital ruble pilot? Tell us in the comments section below. View the full article

Some investors who invested in the South African bitcoin pyramid scheme MTI are set to receive part of their money back once a court rules on how liquidators are supposed to handle claims. Liquidators expect to make more than one payout to affected investors while the process itself is expected to last between two and three years. Net Losers to Get Between 50% and 60% of Their Money Back The liquidators of Mirror Trading International (MTI), an online bitcoin investment scam, are planning to start refunding victims once a court advises them on how to handle the claims, a report has said. According to Herman Bester, a co-director at Tygerberg Trustees, liquidators also want the court to clarify how deposits received from investors in the form of BTC are to be treated. However, according to a report in Mybroadband, Bester and his colleagues stopped short of confirming a plan that will see the so-called net losers only getting between 50% and 60% for every dollar they invested. The funds for the reimbursement scheme would be obtained from the sale of approximately 7,000 BTC. These are the coins remaining from the more than 39,000 BTC that liquidators say were initially deposited into the scheme. Concerning the number of users that are set to benefit from this scheme, Bester reportedly said liquidators were already in the process of identifying and distinguishing individual investors from the rest of the victims. He added: “Our forensic experts, after a meticulous process of clustering, calculated now the expected number of potential claims.” Meanwhile, the liquidators said they do not expect all victims, especially those suspected of using crypto to launder money or for other “dubious purposes,” to submit claims. With respect to the timeframe for reimbursing victims, the liquidators reportedly said they hope to make more than one payment since they expect “to continue with collections from winners who must repay their winnings.” Bester said liquidators expect this to “continue for at least another 2–3 years.” 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 Nasdaq-listed crypto exchange Coinbase has obtained a license from Singapore’s central bank, the Monetary Authority of Singapore (MAS), to provide services to both individuals and institutions. “We’ve identified Singapore as a vital market for Coinbase,” the crypto exchange emphasized. “The nation’s progressive economic strategies and approach to regulation sync well with our global mission and objectives.” Coinbase Expanding in Singapore Cryptocurrency exchange Coinbase (Nasdaq: COIN) announced Sunday that it has obtained a Major Payment Institution (MPI) license from the Monetary Authority of Singapore (MAS), the Singaporean central bank and financial regulator. Coinbase emphasized: This development, coming after our initial In Principle Approval, amplifies our commitment to the Singapore market, enabling us to expand our provision of Digital Payment Token services to both individuals and institutions in Singapore. The Nasdaq-listed crypto exchange received In Principle Approval from the MAS in October last year. “With 25% of surveyed Singaporeans considering crypto as the future of finance and 32% being either current or past owners of crypto, Singapore has naturally become a significant location for this industry,” Coinbase detailed, adding: “Singapore is home to over 700 Web3 companies, making it a pivotal market for the growth of the crypto and Web3 economy.” Coinbase noted that Singapore is “a priority market” for its business, emphasizing: From our initial involvement in the Lion City, we’ve identified Singapore as a vital market for Coinbase. The nation’s progressive economic strategies and approach to regulation sync well with our global mission and objectives. The crypto exchange has been expanding internationally. “Over the last year, we’ve achieved VASP [virtual asset service provider] registrations in Spain, Italy, Ireland, and the Netherlands,” Coinbase shared. Singapore is considered a major crypto hub. In July, the MAS announced new regulations for crypto service providers. In August, the central bank unveiled a new regulatory framework for stablecoins. Singapore’s new President Tharman Shanmugaratnam advocates “one regulatory system” for crypto and traditional finance. What do you think about Coinbase obtaining a license in Singapore? Let us know in the comments section below. View the full article

Bitcoin Policy UK has urged the British government to review Chase Bank’s policy to decline all crypto payments. “It is, of course, the stated policy of this Government that the U.K. become a crypto asset hub, but it is hard to square this policy aim with the actions of this U.K.-regulated bank,” the crypto advocacy group wrote. UK Government Urged to Review Chase Bank’s Anti-Crypto Policy Bitcoin Policy UK sent a letter to Economic Secretary to the Treasury Andrew Griffith MP, on Sept. 28, raising concerns about Chase Bank’s new policy to block all crypto payments. Chase is a registered trademark and trading name of J.P. Morgan Europe Ltd. The British bank informed its customers in the U.K. last week that it will decline all crypto-related payments beginning Oct. 16. “We write to express our deep concern regarding the recent decision by Chase Bank to decline customer payments relating to crypto assets,” the crypto advocacy group wrote, adding: It is, of course, the stated policy of this Government that the U.K. become a crypto asset hub, but it is hard to square this policy aim with the actions of this U.K.-regulated bank. Britain’s Prime Minister Rishi Sunak stated in April last year: “It’s my ambition to make the U.K. a global hub for crypto asset technology.” He was the country’s Chancellor of the Exchequer at the time. In its letter, Bitcoin Policy UK cited Chief Secretary to the Treasury John Glen MP, former Economic Secretary to the Treasury, stating in April last year that the British government wants the U.K. to be “a global hub — the very best place in the world to start and scale crypto-companies.” The letter added that less than nine months later, Griffith himself published proposals for crypto asset regulation and stated at the time that the British government remained “steadfast” in its commitment to grow the economy and enable technological change and innovation, including “crypto asset technology.” The crypto advocacy group noted that “the purchase, ownership, and sale of crypto assets are lawful activities in the U.K.,” adding that “the majority of the exchanges offering crypto asset services are themselves regulated.” The group stressed: It is alarming on many fronts to witness a bank such as Chase, regulated by the FCA and the PRA, deciding arbitrarily to prevent its customers from spending their money in a lawful way and in a sector that is clearly supported both as a matter of Government policy and increasingly regulated by the same bodies that regulate that bank itself. The Financial Conduct Authority (FCA) is Britain’s top financial regulator, while the Bank of England prudentially regulates and supervises financial services firms through the Prudential Regulation Authority (PRA). Bitcoin Policy UK also detailed that data from blockchain analytics firm Chainalysis does not support Chase’s view that the crypto sector “is particularly fraudulent compared with any other.” In its letter to customers, Chase claimed that its reason for the policy change is to keep their money “safe from fraud and scams.” The crypto advocacy group further expressed concerns that Chase’s decision is “yet more evidence of a concerning trend in the U.K. towards financial censorship and the restriction of financial freedom.” Moreover, “It should not be controversial to affirm that U.K. citizens ought to have the right to spend their own money freely from their bank accounts for any lawful purpose,” the group stated. “In short, this is an arbitrary and capricious policy decision made by a bank subject to U.K. regulation, that will prevent U.K. citizens from spending their money lawfully and as they see fit,” Bitcoin Policy UK’s letter concludes, emphasizing: It is a highly questionable step for a U.K.-regulated bank to take and we urge the Minister and the Government to review this decision, particularly in light of the stated policy aims of this Government. Last week, Coinbase CEO Brian Armstrong criticized Chase’s anti-crypto policy, urging the bank’s customers to consider closing their accounts. Do you think Chase Bank will reverse its decision to decline crypto transactions? Let us know in the comments section below. View the full article

The U.S. Securities and Exchange Commission (SEC) and several other top financial regulators have issued several warnings regarding investing in crypto assets as part of this year’s World Investor Week. “The risk of loss for individual investors who participate in transactions involving crypto assets, including crypto asset securities, remains significant,” the regulators stressed. Crypto Warnings Highlighted in World Investor Week The SEC’s Office of Investor Education and Advocacy (OIEA) issued an Investor Bulletin on Sept. 29 as part of this year’s World Investor Week. This global campaign, promoted by the International Organization of Securities Commissions (IOSCO), aims to raise awareness about the importance of investor education and protection. The bulletin is a collaborative effort involving the SEC, the Financial Industry Regulatory Authority (FINRA), the Commodity Futures Trading Commission (CFTC), the National Futures Association (NFA), the Securities Investor Protection Corporation (SIPC), and the North American Securities Administrators Association (NASAA). The three themes of World Investor Week 2023 are Crypto Assets, Investor Resilience, and Sustainable Finance. Concerning crypto assets, the bulletin highlights several risks related to crypto investing. “Investments in crypto assets can be exceptionally volatile and speculative, and the platforms where investors buy, sell, borrow, or lend these investments might lack important protections,” the bulletin cautions. “Those offering crypto asset investments or services may not be complying with applicable law, including federal securities laws,” the regulators warned, adding: Investors who deposit funds or crypto assets with a crypto asset entity might cease to have legal ownership of those assets and might not be able to get those assets back when they want to. Moreover, the bulletin details that investors in crypto assets face a number of risks, including unregistered offerings, lack of Securities Investor Protection Corporation (SIPC) protection, and fraud. “Fraudsters continue to exploit the rising popularity of crypto assets to lure retail investors into scams, often leading to devastating losses,” the regulators described. The regulators further explained that to find out if your portfolio, including retirement plans and investment accounts, holds any crypto asset-related investments, you must actively research and ask questions. “Investors should understand if they are being exposed to risky investments involving crypto assets,” they stressed. The last warning in the bulletin states: The risk of loss for individual investors who participate in transactions involving crypto assets, including crypto asset securities, remains significant. The only money you should put at risk with any speculative investment is money you can afford to lose entirely. The regulators additionally advised: “If you are considering a crypto asset-related investment, take the time to understand how the investment works and look for warning signs that it may be a crypto asset investment scam.” They recommended carefully reviewing all materials, asking questions, and watching for “the signs of a fraudulent trading website.” What are your thoughts on the regulatory guidance concerning cryptocurrency investments? Let us know in the comments section below. View the full article