Cryptocurrency Weekly Update #30
Mark Collins & Demetrius TSEAS
regulation
JP Morgan’s customers can use JPM Coin to program their accounts and make payments automatically. November 10 JP Morgan Chase According to reports It allows customers to program their accounts by setting terms, allowing them to move funds to cover payments and margin calls via licensed JPM Coins. blockchainBlockchain is a shared digital ledger or… Read More, which allows customers to transfer fiat payments within the system. Last October, JPM reached the milestone of processing $1 billion worth of transactions daily through JPM Coin.
Swan bitcoinThe term “Bitcoin” refers to the Bitcoin network,…See more To close an account using a mix serviceGeneral services including non-profits, forums, news sheets…See more: USA November 12th residingA location that is legally considered the center of business for a company. … more Service platform Swan Bitcoin sent an email to users informing them that accounts depositing or withdrawing Bitcoin directly from the mixing service may be terminated. Yan Pritzker, co-founder of Swan Bitcoin Via Fiat services subject to FinCEN’s rules and guidance; FATFThe Financial Action Task Force (FATF) is a global funding agency. and other international organizations.
Basel Institute Announces 2023 AML Index: November 13th, Basel Governance Institute The 12th edition of the Basel AML Index “Global Money Laundering and Terrorist Financing Risk Rankings” has been published. The Basel AML Index is an independent ranking that assesses a country’s ML/TF risks and its ability to respond to those risks.
Bitget Hong Kong has decided to cease operations and not apply for a local cryptocurrency license.: November 13th, Bitget Hong Kong According to reports, it will cease operations on December 13 after deciding not to apply for a local cryptocurrency license. Bitget KG plans to allow customers to withdraw their assets until the platform closes in December.
Crypto.com VASP License granted by Dubai VARA: November 14th, Crypto.com It was announced that it had been granted. Virtual Asset Service Provider (VASP)VASP (Virtual Asset Service Provider) is defined by Fi. Licensed by Dubai Virtual Assets regulatory authoritiesThe name of the regulatory body with which the VASP is registered…See more (VARA). The license requires the company to fully meet the selection conditions and localization requirements defined by VARA, after which it can commence operations subject to the regulator’s notification of approval to operate.
Hill said during a hearing cataloging illegal activity in digital assets: On November 15, the U.S. House of Representatives Financial Services Subcommittee on Digital Assets, Financial Technology, and Inclusion, led by Chairman French Hill (AR-02), met. Listening The book is titled “Cryptocurrency Crime in Context: Analysis of Illegal Activities in Digital Assets.” Invited witnesses shared their expertise and discussed the issues at hand.
Commerzbank AG Obtains Cryptocurrency Storage License in Germany: November 15, Commerzbank AG Announced that it has acquired a cryptocurrency storage license in Germany. Commerzbank is the first German full-service bank to be granted a cryptocurrency custody license under Article 1(1a)(6) of the German Banking Act (KWG). The license will allow the bank to build out a wide range of digital asset services, with a particular focus on crypto assets.
BlackRock files for Ethereum Exchange-Traded Fund.: On November 16, BlackRock, the world’s largest asset manager, applied to the Securities and Exchange Commission for a spot Ethereum ETF (Exchange-Traded Fund). iShares Ethereum Trust is registered as a Delaware Trust and will be listed on Nasdaq if approved. Cryptocurrency ETFs track the price performance of one or more cryptocurrencies, giving investors access to the underlying asset (in this case, Ether) without owning it directly.
Canada’s FINTRAC says Canadian financial institutions must begin reporting high-priority illicit payments in near real-time. At a Toronto council meeting hosted by ACAMS on November 16, FINTRAC director Sarah Paquet said financial institutions should flag and report payments and other high-priority suspicious transactions related to terrorist financing in closer “real time.” She also emphasized that financial institutions must update their systems accordingly.
IOSCO finalizes policy recommendations for cryptocurrencies and digital assets. On November 16, the International Organization of Securities Commissions (IOSCO) Policy recommendations for cryptocurrency and digital asset markets. This is key to providing a coordinated global regulatory response to the significant investor protection and market integrity risks posed by centralized crypto asset intermediaries, referred to as Crypto Asset Service Providers (CASPs). The recommendations address six key areas: Conflicts of interest arising from vertical integration of activities and functions; market manipulation, insider trading and fraud; custody and protection of customer assets; cross-border risk and regulatory cooperation; Operational and technical risks and retail distribution.
Paxos has received key approval from Singapore’s MAS for a new entity that will issue USD collateral. stablecoinStablecoins can also be privately issued cryptocurrencies or algorithms. Singapore: November 16, Paxos Paxos Digital Singapore Pte., a new entity that will issue USD-backed stablecoins in Singapore, has announced that it has received in-principle approval from the Monetary Authority of Singapore (MAS). MAS has acknowledged that it will substantially comply with the MAS proposed stablecoin regulatory framework before the new US dollar stablecoin takes effect.
cryptocurrency news
Bitcoin supporter Javier Millais wins Argentina election: Argentina’s new president, Javier Millais, known for his pro-Bitcoin stance and populist views, won a decisive victory with 55% of the vote, establishing himself as a formidable opponent of the central bank. Milei’s economic reform plan includes closing central banks, adopting the U.S. dollar, and embracing decentralized finance, potentially paving the way for Bitcoin adoption in a radical departure from traditional economic policies. forbes
Mastercard acknowledges the challenges of CBDC adoption. Ashok Venkateswaran, Mastercard’s head of blockchain and digital assets for Asia Pacific, said widespread adoption of CBDCs faces challenges due to consumers’ comfort with traditional currencies. Acknowledging the potential utility of CBDCs in countries with less robust domestic payment networks, Venkateswaran used Singapore as an example to highlight the difficulty of justifying CBDC adoption when current payment systems are already efficient. CNBC
The FBI has indicted three men on charges of money laundering using cryptocurrency. Zhong Shi Gao, Naifeng Xu, and Fei Jiang were arrested and charged in connection with a scheme to steal more than $10 million from U.S. banks and financial institutions. The three allegedly recruited individuals to open bank accounts, organized fraudulent fund transfers, and exploited unauthorized transfer reports to withdraw twice the amount deposited, converting the funds into cash. cryptocurrencyCryptocurrency (or cryptocurrency) is a digital asset. The transfer of this into foreign exchange caused losses to nearly a dozen institutions. FBI press release
Tether to become a player in the Bitcoin mining space: Tether plans to invest about $500 million over the next six months to expand into Bitcoin mining by setting up mining facilities in Uruguay, Paraguay, and El Salvador. Paolo Ardoino, expected to be the next CEO, has said he wants to grow Tether’s computing power to 1% of the Bitcoin mining network, reaching 120 MW by the end of 2023 and targeting 450 MW by the end of 2025. Bloomberg
A South Korean pension fund has added a sizable Coinbase position to its balance sheet. South Korea’s National Pension Service (NPS), one of the world’s largest pension funds, made its first investment in cryptocurrency, purchasing more than 280,000 shares of Coinbase stock in the third quarter of 2023. The investment, worth $27.7 million, has returned 39% since 2023. Although the National Pension Service has a policy of not investing directly in cryptocurrencies due to their volatility, this move reflects growing participation in the cryptocurrency industry. secretary
Bitgin faces money laundering probe: Taiwanese cryptocurrency exchangeCryptocurrency exchanges allow customers to… See more Bitgin is being investigated for money laundering, including the arrest of Chief Operating Officer (COO) Yuting Zhang in connection with the ’88 Guildhall’ money laundering case. exchange, some virtual assetsThe term “virtual asset” refers to any digital representation. The Self-Regulation Preparation Team emphasized, “We are currently operating normally and are actively cooperating with the investigation,” and added, “We hope that the facts will be revealed soon.” Bitgin Statement and Press Release
Hacking and Exploitation
raft: Raft, a decentralized US dollar stablecoin protocol, lost $6.7 million due to security issues despite being audited by blockchain security firms Trail of Bits and Hats Finance. The vulnerability allowed hackers to borrow 6,000 Coinbase-packaged Ether from Aave, transfer them to Raft, and mint 6.7 million R tokens using a smart contract flaw, with the unauthorized funds later being exchanged and deposited into Raft’s stable. The coin has been depegged. autopsy
dYdX: DeFi exchange dYdX suffered a targeted attack and suffered $9 million user liquidation, but used its v3 insurance fund to cover losses. dYdX founder Antonio Juliano said the attack involved market manipulation of the Yearn.finance token (YFI) and that the platform was working with its partners to investigate the incident while ensuring that user funds were not affected. Cointelegraph