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Παρασκευή 30 Σεπτεμβρίου 2022

Brazilian Securities and Exchange Commission CVM Subpoenas Mercado Bitcoin on Fixed Income Token Investments

Brazilian CVM

The Brazilian Securities and Exchange Commission (CVM) has sent a subpoena to Mercado Bitcoin, one of the biggest exchanges in the country, to inquire about the services the company lends regarding cryptocurrency-related fixed return investments. The company will have to disclose the details of these investments and if they plan to maintain them as available to the general public.

Mercado Bitcoin Subpoenaed on Fixed Income Token Investments

Cryptocurrency exchanges are becoming more than just that, and in regions like Latam, where there are countries with high inflation numbers, some offer bank-like products to entice customers to enter the crypto market. Mercado Bitcoin, one of the biggest cryptocurrency exchanges in Brazil, has been subpoenaed by the Brazilian Securities and Exchange Commission (CVM) on the services that it offers customers via its platform.

The subpoena inquires about the services offered via the Tokens section on the web page of Mercado Bitcoin, which, according to the CVM, offers a way for customers to diversify their portfolio with supposed low risk and receive a high yield in different areas.

These tokens are available for customers with more than a certain number of stablecoins, ostensibly providing a higher yield than normal savings products in the short term.

CVM Subpoena Details

The CVM is requiring certain key information about how these tokens work. Mercado Bitcoin will have to detail the number and identities of the customers that have invested in these products since January 2020. In addition, Mercado Bitcoin will have to announce if it intends to keep offering these token products in the future. If it does, the company might face sanctions if the CVM decides that the products are irregular.

However, Mercado Bitcoin affirms it is not offering irregular services. In a statement, the company explained:

We do not carry out a public offering of securities outside the scope of the authorizations we have as an authorized crowdfunding and investment manager platform.

In the same way, the company clarified that they take the utmost care to not infringe the field of action of authorized entities, and that the company had consulted about the structure of these tokens before offering the products in 2020.

This is just the latest problem that the exchange has faced this year, with the company executing two different layoff rounds, the first in June and the last one executed earlier this month. In 2021 Mercado Bitcoin raised $200 million in its Series B funding round, backed by Softbank, achieving a valuation of more than $2 billion.

What do you think about Mercado Bitcoin’s CVM subpoena? Tell us in the comments section below.



from Bitcoin News

Arbswap Launches the Nova Accelerator to Support Arbitrum’s Ecosystem Growth

PRESS RELEASE. Arbswap, the Arbitrum-native automated market maker decentralized exchange, has seen significant progress over the past months. Following the migration of its contracts to the Arbitrum Nova network, Arbswap has recently launched the Nova Accelerator with support from Old Fashion Research, a multi-strategy blockchain investment fund. By establishing the Accelerator, Arbswap has set out to support the growth of Arbitrum Nova’s ecosystem through investments and advisory services for projects building on the platform. According to Arbswap, the Nova Accelerator aims to invest $10 million in the Arbitrum Nova ecosystem.

About Arbswap and Arbitrum Nova

Arbitrum Nova is an Arbitrum Layer-2 scaling solution that optimizes ultra-low-cost transactions while offering strong security guarantees. Being the first Arbitrum chain built on its AnyTrust technology, Arbitrum Nova is meant to serve applications that handle high volumes of price-sensitive transactions, such as gaming, social and decentralized exchanges.

As a decentralized exchange, Arbswap aims to offer maximum security and affordability to users swapping tokens on its DEX. Arbitrum Nova boasts high security and low transaction costs even at high volumes, so Arbswap’s swift decision to migrate to Nova is sure to serve as a significant first mover advantage over other exchanges with “high” transaction costs of the Arbitrum One chain. Furthermore, the various DeFi tools offered by Arbswap, such as liquidity mining, staking pools, and Dasher, a launchpad product that bootstraps new Arbitrum Nova projects through vested token sales, make Arbswap a very attractive DEX for various market participants.

Combined with Dasher, the Nova Accelerator has allowed Arbswap to position itself as a powerful force in the Arbitrum universe, offering projects building on Arbitrum Nova a way to finance and launch their products through the Arbswap ecosystem.

For all Arbswap-related updates, make sure to follow their social media channels:

Website | Twitter | Telegram | Announcements

Name: Stag Arbswap

Email: [email protected]

 

 


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.



from Bitcoin News

Bittrex, Merkle Science, Bitgo Join Crypto Market Integrity Coalition

Following the introduction of the Crypto Market Integrity Coalition (CMIC) with 17 member firms last February, the organization has added eight new members. New coalition recruits include Bittrex, Merkle Science, Crystal Blockchain and Bitgo.

8 Crypto Market Firms Join Crypto Market Integrity Coalition to Improve Self-Regulation

Seven months ago, 17 crypto firms announced the formation of the Crypto Market Integrity Coalition (CMIC), a group that aims to bolster a sensibly-regulated crypto industry. Original CMIC members included Circle, Coinbase, Anchorage Digital, Huobi Tech, Liberty City Ventures, and the Chamber of Digital Commerce.

“Through the pledge, the coalition seeks to send an unequivocal message at this critical moment in the evolution of digital assets: The crypto industry has made enormous strides to improve market integrity in the past few years,” the CMIC launch announcement noted on February 7, 2022.

On Thursday, CMIC detailed that eight new members have joined the coalition. Newly added CMIC members include Bittrex, VAF Compliance, Merkle Science, Tokenomy, Crystal Blockchain, Finclusive, Oasis Pro Markets, and Bitgo. The chief compliance officers (CCOs) at Bitgo and Bittrex spoke about joining the CMIC initiative.

Michael Carter, the chief compliance officer at Bittrex said the crypto exchange looks forward to “working with fellow coalition members on collective educational efforts and sharing insights that will contribute to the industry’s continuing evolution.” Jeff Horowitz, Bitgo’s chief compliance officer detailed that Bitgo welcomes discussions with regulators and policymakers.

“We’re seeing increasing appetite on the part of institutional investors to actively participate in the growing digital asset economy, and regulatory clarity will address concerns that have stemmed from uncertainty,” Horowitz said on Thursday during the CMIC announcement. “We continue to welcome discussion with policymakers on how to encourage innovation while protecting investors and businesses,” the Bitgo

What do you think about the eight crypto companies that recently announced joining the Crypto Market Integrity Coalition? Let us know what you think about this subject in the comments section below.



from Bitcoin News

Πέμπτη 29 Σεπτεμβρίου 2022

Bitcoin․com To Deploy Verse Development Fund To Expand Ecosystem

PRESS RELEASE. Bitcoin.com, a digital ecosystem and secure self-custody platform where users can accessibly and safely interact with cryptocurrencies and digital assets, is launching the Verse Development Fund, an initiative to accelerate growth and innovation in Bitcoin.com’s Verse ecosystem. In addition, the fund will empower projects that embody Bitcoin.com’s ethos of economic freedom and democratized finance.

“Since 2015, Bitcoin.com has been a leader in introducing newcomers to crypto and guiding them along their digital asset investing journeys,” said Bitcoin.com CEO Dennis Jarvis. “So far, we’ve built an incredible portfolio of products and services used by over 4 million individuals monthly. The Verse Development Fund will be the instrument by which we leverage this diverse and passionate community’s energy into building an even stronger ecosystem with even more popular appeal.”

The fund, which will start accepting grant applications from developers and other ecosystem participants in Q1 2023, will begin by focusing on Decentralized Applications (dApps), integrations, projects, and events that support Bitcoin.com’s Verse community.

VERSE, Bitcoin.com’s rewards and utility token, is a cross-chain token built on the ERC-20 standard and designed with broad EVM compatibility. VERSE will be integrated into Bitcoin.com’s suite of products, enabling individuals to receive rewards for buying, selling, spending, swapping, and staying informed about crypto.

“The VERSE token, and therefore the entire Verse ecosystem, adds tremendous value by incentivizing uptake of Bitcoin.com’s products and services, building loyalty, and nudging people to dive deeper where there are more opportunities to benefit from the economic freedom enabled by decentralized finance,” said Lizzie Eng, Lead for the Verse Development Fund. “The resources made available by the fund will spur innovation and growth within the Verse, and broader Bitcoin.com communities, making it even more valuable to the people who use it.”

The VERSE token will launch in Q4 of 2022 following the public sale in November.

The fund draws its resources from the VERSE token supply. Strategic buyers, including Digital Strategies and Blockchain.com, purchased 10% of the VERSE token supply for $33.6 million in a private sale completed in May this year, as reported by Bitcoin.com News. Thirty-four per cent of the VERSE token supply is allocated to the Verse Development Fund. Tokens are made available to the fund on a block-by-block basis linearly, over seven years.

The key components of Bitcoin.com’s ecosystem include,

  • its award-winning news portal with over 2.5 million monthly-active readers;
  • user-friendly self-custodial multichain Web3 wallet, comprised of over 34 million wallets; and
  • The multichain Verse DEX: a permissionless exchange where anyone can earn a share of trading fees by funding liquidity pools.

Developers and other ecosystem participants can stay up to date on the Verse Development Fund grant application process by visiting https://getverse.com/fund/.

 

 

 


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.



from Bitcoin News

HistoryDAO’s Mission to Take History From the Victors and Give It to the Masses

Humans have sought to preserve memories since prehistoric times, etching images into cave walls and tying knots into a crudely fashioned cord. Tribes and clans gave birth to language that could preserve the past in words, and words found their way into print forms, thereby conceiving history.

In the information age, the Internet has become the carrier of historical records, which achieved an almost geological level of permanence through the power of immutable “blocks” recorded on blockchains.

Blockchain was a timely development–a solution, in fact, to certain curses of history.

What are the curses of history?

Centralized historical records: From ancient times to the present, the power to record history has been in the hands of centralized entities. Unofficial history and folk records may be available but are obscured by media nobility. Yet, despite the “information age,” this situation remains unbroken and arguably worse, as powerful centralized media accumulate more power than ever before. Meanwhile, the crypto world has produced a means to record that any central authority cannot access.

The volume and complexity of information are overwhelming: Under the massive pile of data defining the information age, it is nearly impossible to either judge or asserts what is true. Ordinary people whose voices are minimized lack the means to assert their history. Perhaps in the future, as little will survive that can be believed about us as has survived from centuries before.

HistoryDAO aims to solve the above through Web3 & blockchain technology.

Using blocks to carry history

During his exile, Herodotus wrote the book Ἱστορίαι (History) from his perspective, recording what he heard and saw during his travels throughout the Persian Empire in the 5th century BCE. This is the first entirely handed down the historical record in Western history. The Roman orator Cicero called him “the father of history.”

As objective as Herodotus may have intended, all that he recorded was necessarily subjective from his point of view. Historical records typically lack certain fairness in this regard.

Famously, “history is written by the victors,” but the truth is known by those who experience it. Even the ancient Greek historian Thucydides attempted to overcome the issue with a commitment to rigorous data collection and causal analysis. He consciously avoided reliance on third-hand impressions, noting, “The events described are either what I saw, or what I have carefully examined after hearing from those who have seen them in person.”

Herodotus and Thucydides were great historians, but how might average witnesses be more involved?

Blockchain may have an answer.

Just as Bitcoin decentralizes minting power, HistoryDAO decentralizes the power of historical records.

Thanks to blockchain technology, HistoryDAO allows users to issue, query and trade NFTs of any record on Ethereum and BNB Chain:

● HistoryDAO supports various data formats in the form of historical records, allowing users to record multi-dimensional information;

● HistoryDAO has a secondary market for NFTs that allows users to discover efficiently, evaluate, trade, manage, and ultimately value moments or histories;

● HistoryDAO is entirely owned and managed by the community, and the community agenda entirely drive the development of the DAO;

In a nutshell, HistoryDAO is an NFT platform powered by DAOs, i.e. decentralized community organizations.

While HistoryDAO provides the service of recording history for individuals, it also has a history that has been agreed upon by the DAO organization – the community is responsible for recording weekly, monthly, and annual historical figures, historical processes, historical albums and significant historical events.

How does HistoryDAO organize products and commercialize them?

Let’s explore the functions and services of HistoryDAO in depth from three aspects.

Minting History NFTs and Secondary Markets

As mentioned above, HistoryDAO lets users record diverse historical information, which will be kept in the user’s blockchain wallet in the form of NFTs, which are open, transparent, and 100% tamper-proof.

Again, the data recorded by the user can be anything. Any bits and pieces of life will do, good memories with friends and loved ones, and great game moments. When people of the future reproduce the life of our contemporaries through NFTs recorded by HistoryDAO, they’ll be far more confident of dates and intact preservation than we are of the ancients by studying the map of the Qingming Festival.

When minting NFTs, HistoryDAO users pay 0.01 ETH between a service fee and a gas fee. The service fee is directly transferred to the market liquidity reserve controlled by the DAO, which is the DAO treasury.

The historical NFT minted by users can then be circulated and traded in the secondary market, paying the HistoryDAO market a 2% commission on the trade, which is also transferred to the DAO treasury.

The HistoryDAO market will also sort various historical NFTs, and the sorting will refer to multiple properties, such as the listing time, page views, and favourites of the corresponding NFTs. In addition, each new algorithm change must be proposed in the DAO and supported by the community to ensure that the exposure of each historical NFT is as fair as possible.

Initial NFT Offering (INO)

To make history recording more efficient, HistoryDAO introduces the concept of “Initial NFT Offerings,” or INOs. Any user can contribute a topic to a collection of NFTs, which is done by co-building the collection of NFTs with other community members.

Let’s take sporting events as an example.

In a season of basketball, or whatever sport, users can create NFTs for each game, and as the season progresses, record the details of each game through information such as pictures, video clips, and player data. Of course, the NFT of a beautiful game is more collectable than the NFT of ordinary games, and the NFT of the final is more collectable than earlier playoffs. Users can always choose the best moments of any number of games to mint NFTs after the season. For brands, the INO campaign is a re-use of the influence of previous events, which is very cost-effective.

Of course, this is just an example from the wide world of sports. But an INO campaign launched on HistoryDAO can be under any category imaginable.

Brands with innovative marketing ideas can use HistoryDAO as well, commemorating their campaigns with NFTs and giving them longer life through trading and audience engagement.

DAOs and Tokens

Unlike other NFT platforms, HistoryDAO focuses more on community interaction and community power. HistoryDAO is a platform for recording history, not an NFT trading market. Therefore, HistoryDAO pays more attention to the algorithm for community activity in product design, hoping to build a strong community product like Reddit.

Community power, in part, means preventing the centralization of historical records and freedom of speech. Decentralized communities can resist the censorship of historical records by powerful interest groups. They will increase people’s enthusiasm for decentralized historical records, enhancing the value of HistoryDAO NFTs.

The governance of HistoryDAO will be facilitated by its native token $HAO. Holding $HAO is the entry qualification for DAO participation. After entering the DAO, community members can perform governance actions such as submitting proposals, commenting, and voting.

In addition to governance, $HAO will be applied to all aspects of HistoryDAO products. For example, when the market conducts NFT transactions, if $HAO is used to pay, the market will only charge a 1.5% commission rather than the standard 2%.

From Witnessing to Writing: How HistoryDAO Empowers Web3

There is no doubt that history has a special meaning for humanity and each human being. As Tang Taizong Li Shimin said, “Take copper as a mirror, and you can correct your clothes. Take people as a mirror; you can know the gains and losses. Take history as a mirror, and you can know the rise and fall.”

History is the foundation on which we move forward.

But relevant interest groups often revise historical records, covering up scandals and bending the record for private purposes. In any case, historical records are often guided by subjective emotions and lose their original fairness.

Today, HistoryDAO is reversing the shortcomings of historical records through blockchain and NFT technology. But, just as Bitcoin decentralizes minting power, HistoryDAO decentralizes the power of history.

Decentralized and tamper-resistant historical records will record history from multiple perspectives and pursue the fairness and authenticity of historical records.

This is the embodiment of the spirit advocated by Web3 – Web3 advocates individual sovereignty and individual value in a diverse community context, in which case we believe the victors may no longer write history, and all human beings can participate equally.

NFTs connected with topics in the real world will enhance the relevance of Web3 to the real world, attracting more people to understand the Web3 world actively. Enabling NFT adoption through accurate historical records will also drive the further development and maturity of the Web3 world.

In addition, the INO campaign led by HistoryDAO can also provide strong marketing support for various brands. It has become a trend for Web2 brands to be marketed through Web3 means. Tiffany’s launch of CryptoPunks custom NFTs and Starbucks’ Starbucks Odyssey program are good examples.

As the Web3 world grows in influence, more Web2 brands will be thinking about how to use Web3 for their marketing campaigns and community growth. For unfamiliar Web2 brands, a simple and intuitive Web3 marketing plan is all that is needed.

And the INO campaign launched by HistoryDAO meets this need. This type of demand will likely be one of the main drivers of HistoryDAO’s future growth.

Once in stone, next in text, now in block

HistoryDAO’s founding mission was to allow everyone to record history without encroachment by any centralized power. The essence of HistoryDAO is to allow the decentralization of the power of historical records.

This is undoubtedly groundbreaking, and it is also a deconstruction of the spirit of Web3 – Web3 is far more than decentralized finance, as it includes multiple levels of thinking, application, and integration into human culture. With the power of decentralized historical records endowed by blockchain technology, everyone in this world will have the opportunity to say, like Caesar: I came, I saw, I recorded!

 

 

 


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from Bitcoin News

Fed Chair Jerome Powell Updates Work on Digital Dollar — Says US Central Bank Digital Currency Will Take ‘at Least a Couple of Years’

Federal Reserve Chairman Jerome Powell says the U.S. central bank is looking at whether to issue a digital dollar with a “very broad scope.” He noted that the Fed is collaborating with Congress and the executive branch on whether to issue a central bank digital currency.

Fed Chair Powell on Digital Dollar Progress

Federal Reserve Chairman Jerome Powell provided an update of the central bank’s digital dollar work Tuesday during a panel discussion on digital finance hosted by Banque of France.

“Cash is not disappearing here in the United States. We still use cash quite a lot,” he began. However, the central banker noted: “It is declining, not in absolute terms but compared to non-cash payments, it’s declining.”

Powell explained that the Federal Reserve is looking very closely at “the potential costs and benefits” of issuing a central bank digital currency (CBDC) in the U.S. He detailed:

We are looking at it very carefully. We are evaluating both the policy issues and the technology issues, and we are doing that with a very broad scope.

However, Powell clarified: “We have not decided to proceed and we don’t see ourselves making that decision for some time.”

The Fed chairman explained: “We see ourselves as working in collaboration with Congress … but also with the executive branch which brings expertise to many of the issues that we have to deal with here.”

He added, “At the end of the day, we will need approval from both the executive branch and Congress to move ahead with a central bank digital currency,” elaborating:

We see this as a process of at least a couple of years where we are doing work and building public confidence in our analysis and in our ultimate conclusion.

Noting that the Fed has not reached a decision on whether to issue a digital dollar, Powell concluded: “That’s where we are, we’ve got a lot of work to do.”

Do you think the Federal Reserve should issue a digital dollar? Let us know in the comments section below.



from Bitcoin News

Stablecoin Economy Continues to Deflate — USDC’s Market Cap Shed $6.7 Billion in 83 Days

Stablecoin Economy Continues to Deflate — USDC's Market Cap Shed $6.7 Billion in 83 Days

Just over two months or approximately 83 days ago, the stablecoin usd coin (USDC) had a market valuation of around $55.52 billion and since then, USDC’s market capitalization has lost 12.05%. For most of 2022, the second largest stablecoin by market capitalization, USDC has been above the $50 billion mark, but this week the crypto asset’s market valuation is around $​​48.82 billion.

Following Tether’s Recent Stablecoin Reduction, USDC’s Market Cap Drops 12%

In mid-June, Bitcoin.com News reported on the largest stablecoin asset tether (USDT), as USDT’s saw more than $12 billion erased from the market cap in two months and at that same time, usd coin’s (USDC) market cap rose by 9%.

However, USDC’s market cap has shrunk a great deal during the last 83 days, as it has dropped by $6.7 billion since July 7, 2022. At the time of writing, at 4:15 p.m. (ET) on Wednesday afternoon, USDC’s market valuation is $48.82 billion and on July 7, it was much higher at roughly $55.52 billion.

USDC’s market cap today is under the $50 billion zone but for most of 2022, the stablecoin’s market valuation remained above that region. On February 1, 2022, USDC captured the $50 billion mark, in terms of market capitalization, and it remained above that region until April 17.

After May 13, USDC once again reclaimed a market valuation above the $50 billion zone, and it remained that way for roughly 130 consecutive days. While USDC’s market valuation shrunk by 12.05% during the last 83 days, 6.6% of the loss was erased from the market cap during the past 30 days.

USDC’s market cap drop follows the company’s recent partnership with Robinhood Markets, but it also follows the recent auto-conversion moves by Binance and Wazirx. Both Binance and Wazirx auto-converted their customer’s USDC holdings (and other stablecoins) into BUSD if they did not withdraw the USDC by a specific date.

Today, on September 28, statistics indicate that USDC has roughly $4.31 billion in 24-hour global trade volume. The stablecoin’s market cap dominance represents 4.985% of the crypto economy’s $983 billion in fiat value. USDC’s top trading pair today is tether (USDT) as it accounts for 32.25% of today’s usd coin trades.

Tether is followed by EUR (27.16%), USD (22.56%), and GBP (6.51%) in terms of USDC’s top pairs on Wednesday. Stablecoins like tether (USDT) and usd coin (USDC) have seen a significant rise in euro and pound trading pairs since both fiat currencies started to slide against the greenback.

What do you think about USDC’s market valuation sliding by more than 12% during the past 83 days and 6.6% over the last 30 days? Let us know what you think about this subject in the comment section below.



from Bitcoin News

Nigerian Central Bank Hikes Key Interest Rate Just Days After Naira Plunges to New Low

Following the latest meeting of the monetary policy committee, the Central Bank of Nigeria says it has hiked the monetary policy rate to 15.5%. By increasing the key interest rate by 150 basis points, the central bank hopes to “narrow the negative real interest rate gap and rein in inflation.” The rate increase came just days after the naira’s parallel exchange rate against the dollar plunged to a new low.

Narrowing the Negative Real Interest Rate Gap

According to the Central Bank of Nigeria (CBN), members of the bank’s monetary policy committee (MPC) have voted “unanimously to raise the policy rate to narrow the negative real interest rate gap and rein in inflation.” Following the vote, Nigeria’s key interest rate — the monetary policy rate (MPR) — now stands at 15.5%, up from 14%.

In a statement, the CBN said the decision to increase MPR by 150 basis points was made because members of the MPC felt that any attempt to loosen the policy rate would be detrimental.

At this [MPC] meeting, the option to loosen the policy rate was not considered as this would be gravely detrimental to reining-in inflation … The Committee thus voted unanimously to raise the Monetary Policy Rate (MPR) and the Cash Reserve Requirement (CRR). Ten members voted to raise the MPR by 150 basis points, one member by 100 basis points, and another member by 50 basis points.

Nigeria’s inflation rate, which has now grown by 280 basis points in just four months, stood at 20.52% in August 2022. To stop it from growing further, the MPC said it is necessary for the CBN to ensure that “significant focus [is] be given to taming inflation.”

Meanwhile, the bank’s decision to hike the MPR came just days after the Nigerian currency’s exchange rate against the U.S. dollar plunged to a new all-time low. According to a Bloomberg report, the naira’s parallel market exchange rate had dropped from 715 naira for every dollar to 720 naira per dollar. On the formal market, one U.S. dollar was buying just under 440 naira.

Following the naira’s latest significant depreciation, the spread between the currency’s official and parallel market exchange rate has now widened to over 280 naira.

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What are your thoughts on this story? Let us know what you think in the comments section below.



from Bitcoin News

Τετάρτη 28 Σεπτεμβρίου 2022

Fed Chair Powell Sees ‘Real Need’ for More Appropriate Defi Regulation Citing ‘Very Significant Structural Issues’

Fed Chair Powell Sees 'Real Need' for More Appropriate Defi Regulation Citing 'Very Significant Structural Issues'

Federal Reserve Chairman Jerome Powell says decentralized finance (defi) has “very significant structural issues,” emphasizing a “real need” for more appropriate regulation of the defi ecosystem.

Fed Chair Jerome Powell on Defi Regulation

Federal Reserve Chairman Jerome Powell talked about the regulation of decentralized finance (defi) Tuesday during a panel discussion on digital finance hosted by Banque of France.

“The monetary policy normalization that we’re seeing all over the world,” Powell began. “All it did was simply reveal what we’ve long pointed out as significant structural issues in the defi ecosystem and conflict of interest.” He stressed:

Within the defi ecosystem, there are these very significant structural issues around transparency — lack of transparency.

“The good news, I suppose, is that … from the financial stability standpoint, the interaction between the defi ecosystem and the traditional banking system and the traditional finance system is not that large at this point. So we were able to witness the defi winter. It didn’t have significant effects on the banking system and broader financial stability,” Powell detailed.

“That’s a good thing,” he exclaimed. “I think it demonstrates the weaknesses and work that needs to be done around regulation carefully and thoughtfully, and gives us a little bit of time.”

However, the Federal Reserve chairman warned that the situation he just described “will not persist indefinitely.” He clarified that “Ultimately that’s not a stable equilibrium and we need to be very careful about … how crypto activities are taken within the regulatory perimeter,” elaborating:

In any case … there is a real need for more appropriate regulation so that, as defi expands and starts to touch more and more retail customers, appropriate regulation is in place.

Christine Lagarde, the president of the European Central Bank (ECB), and Agustín Carstens, the general manager of the Bank for International Settlements (BIS) also participated in the discussion. Both concurred with Powell and similarly stressed the importance of appropriately regulating the defi ecosystem.

What do you think about the comments by Fed Chairman Jerome Powell on defi regulation? Let us know in the comments section below.



from Bitcoin News

South Korea Seeks to Freeze 3,313 Bitcoin Allegedly Linked to Luna Founder Do Kwon

South Korea Seeks to Freeze 3,313 Bitcoin Allegedly Linked to Luna Founder Do Kwon

South Korean prosecutors are seeking to freeze 3,313 bitcoins at two cryptocurrency exchanges allegedly tied to luna founder Do Kwon. The coins were moved soon after a South Korean court issued an arrest warrant for the Terraform Labs co-founder. Luna Foundation Guard has denied transferring the coins.

Korean Authorities Ask Crypto Exchanges to Freeze Bitcoin

South Korean authorities have reportedly asked cryptocurrency exchanges Kucoin and Okx to freeze 3,313 bitcoins allegedly tied to Terraform Labs co-founder Kwon Do-hyung, also known as Do Kwon. The coins were transferred to the trading platforms soon after a warrant was issued for Kwon’s arrest in South Korea.

On Tuesday, an official at the Seoul Southern District Prosecutors’ Office confirmed to Bloomberg that requests have been sent to the two cryptocurrency exchanges to freeze the 3,313 BTC.

The coins were transferred to the trading platforms from a wallet allegedly linked to Luna Foundation Guard (LFG) that was created on Sept. 15, according to crypto researcher Cryptoquant. The researcher told the publication:

Cryptoquant specified new bitcoin addresses owned by LFG based on transaction patterns, adjacent flows and material non-public information.

However, Luna Foundation Guard denied the allegation Tuesday evening. The group tweeted its treasury’s bitcoin address, adding: “LFG hasn’t created any new wallets or moved BTC or other tokens held by LFG since May 2022.”

Do Kwon Says: ‘I’m Making Zero Effort to Hide’

The luna founder’s whereabouts are currently unknown. He was believed to be in Singapore but the Singapore police force said earlier this month that he is currently not in the city-state. Kwon has maintained that he is not “on the run,” tweeting Monday:

I’m making zero effort to hide. I go on walks and malls.

A South Korean court issued an arrest warrant for Kwon on Sept. 14. He is accused of fraud after the collapse of the cryptocurrency luna (now called luna classic (LUNC)) and stablecoin terrausd (UST). In addition, the country’s ministry of foreign affairs is reportedly planning to revoke his passport.

Moreover, Interpol has issued a Red Notice for the Terraform Labs co-founder. “A Red Notice is a request to law enforcement worldwide to locate and provisionally arrest a person pending extradition, surrender, or similar legal action,” Interpol’s website details, adding that “Red Notices are issued for fugitives wanted either for prosecution or to serve a sentence.”

Do you think Do Kwon transferred 3,313 bitcoins after his arrest warrant was issued? And, do you think Korean authorities should be able to freeze crypto at exchanges? Let us know in the comments section below.



from Bitcoin News

Τρίτη 27 Σεπτεμβρίου 2022

Bitcoin, Ethereum Technical Analysis: BTC Back Above $20,000 as Bulls Return to Crypto Markets

Following a turbulent start to the week, bitcoin was back in the green on Tuesday, as the token climbed back above $20,000. The move saw prices race to their highest point in nearly two weeks, moving past a key resistance level in the process. Ethereum was also trading higher, as it neared the $1,400 level.

Bitcoin

Bitcoin (BTC) neared a two-week high on Tuesday, as the token rebounded following a recent bearish spell.

Following a bottom of $19,006.11 to start the week, BTC/USD raced to an intraday peak of $20,294.34 on Tuesday.

This is the highest point that the token has traded at since September 14, and is marginally above a resistance level of $20,250.

As of writing, BTC is still trading slightly above this ceiling, with the 14-day relative strength index (RSI) also tracking above a similar threshold.

Currently the index resides at a reading of 52.72, which is above its own resistance level of 49.00.

Should price strength continue to move in an upward direction, then we could see BTC back above $21,000 in the coming days.

Ethereum

On Tuesday, ethereum (ETH) was also trading higher, with the world’s second largest cryptocurrency moving back towards the $1,400 level.

ETH/USD rose to a high of $1,395.31 earlier in the day, which is the highest point the token has hit in the last five days.

The move came following a breakout of a recent resistance of $1,335, with the RSI also moving past a ceiling of its own.

In this instance it was the 39.50 point, which had been a major obstacle to prices rising over the past week.

As of writing, the index is tracking at 45.00, which is yet another point of resistance, however, bulls have so far maintained their positions, despite the increased uncertainty.

Many expect ethereum to surge past the $1,400 mark at some point in today’s session, with the $1,410 level a possible exit point.

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Could we see ethereum climb towards $1,500 this week? Leave your thoughts in the comments below.



from Bitcoin News

Digital Neobank Nubank Reaches 70 Million Customers in Latam; Almost 2 Million Have Purchased Crypto

nubank

Nubank, a Brazil-based digital bank, has announced a new milestone in its operations. The company announced that it has reached 70 million customers in Latam, making it one of the biggest financial institutions of its kind in Brazil. The company also announced that almost 2 million of its customers are cryptocurrency investors.

Nubank Reaches 70 Million Customers; Crypto Customers Reach 1.8 Million

Latam has become fertile ground for companies providing alternative finance and cryptocurrency-based services, due to its unique set of circumstances. Nubank, a Brazil-based digital neobank, has recently reached a milestone in the region, announcing it now serves 70 million customers. Most of these customers, as expected, are based in Brazil. However, the neobank has also managed to get into other markets, such as Mexico, where the company has 3.2 million customers, and Colombia, with 400,000 customers.

The products of the company that have experienced the most significant growth include Money Boxes, which are investment and planning options that have registered more than 1.7 million users as investors. Another area that has powered the growth of Nubank is its cryptocurrency division, which allows customers to purchase, hold, and sell digital assets from the same app. According to a press release, more than 1.8 million customers have already made at least one cryptocurrency purchase using Nubank’s app.

About the growth of the company and the services offered, David Velez, CEO and founder of Nubank, stated:

Our accelerated growth is driven by an ongoing search for efficiency, which balances expansion, new products, and increased revenue per customer. Nubank is a project for the next decades and we remain firm in our purpose of freeing all people from any complexity in financial services in Brazil, Mexico, and Colombia.

Crypto Market Thrives in Brazil

The company opened its cryptocurrency trading services for more than 54 million customers in Brazil in June, also holding bitcoin as part of its balance sheet. This announcement opened the floodgates for more companies in Brazil to follow in Nubank’s footsteps and also enter the cryptocurrency services market.

One of the biggest rivals of the company is Mercado Libre, an e-tailer company that started offering crypto services last year, and that recently issued its own cryptocurrency, called Mercadocoin. Other companies have also followed suit, including Rico, a financial brokerage platform that aims to offer cryptocurrency services for 2023, and Picpay, a payments platform that plans to roll out its own Brazilian real-based stablecoin.

Even traditional banks like Santander have announced they will include cryptocurrency in their service portfolio in the coming months. However, crypto is still not regulated in the country, as the national cryptocurrency bill has failed to be discussed by the Brazilian Congress due to election-related matters.

What do you think about the crypto-powered growth of Nubank in Brazil? Tell us in the comments section below.



from Bitcoin News

Rebus Announces Public Coin Distribution via Osmosis

PRESS RELEASE. RebusChain, a platform set to take DeFi mainstream, is going public by announcing its public coin distribution (PCD) late this Summer. The PCD means those supporting its mission can now acquire coins via liquidity bootstrap pool (LBP) on the Osmosis network, and this marks a significant milestone in the Rebus project, following successful announcements of various financial and platform partnerships.

The founding team at Rebus features unique foundations in entrepreneurship, cyber security, traditional finance, and the emerging DeFi field. CTO and COO Pier Stabilini and Nicola Onassis, respectively, have experience working together and starting new businesses. When introduced to Paolo Baroni, Financial Product Lead, the three saw an immediate opportunity to do something big, and Rebus was born.

Typical of new technology markets, the DeFi space is quite nuanced and still developing. However, all people should have access to blockchain-based transaction tools–it’s the most trustworthy transaction method humans have developed. The demand for access to DeFi was more significant than participation, and the problem was the complexity. Rebus was born to provide better answers to two tough questions “How do I get into DeFi, and what can I do with it?” Rebus is opening up a significant growth path for the entire DeFi space by eliminating the complexity and paving the way for more utility.

Rebus ($REBUS) is a utility currency within the RebusChain platform that satisfies regulations and allows for fast, secure, and low-cost transactions. $REBUS (along with the Rebus Investment Platform) is the regulatory vehicle by which all this is possible. The team continues to grow and build a strong community around the goal of improving the world of business transactions.

RebusChain is a platform that will provide DeFi (Decentralized Finance) investment opportunities to traditional investors clearly and conveniently. By making a platform that allows TradFi houses like Asset Managers, Financial Planners, et al. to carry DeFi products, the adoption of crypto investing will be opened up to the entire markets of both institutional and individual investors. The demand for existing crypto assets will increase as offers are made to the traditional clientele of the Rebus Financial Partnerships (accounting for $5B+ in assets and growing) and yield new opportunities for existing crypto investors to put their assets to work earning income via Rebus Platform Partners.

A Public Coin Distribution will kick off the public trading of $REBUS, which will be available on a handful of centralized and decentralized platforms. On September 12th, 2022, the $REBUS airdrop took place, an event that officially kicked off the launch of the RebusChain platform.

The coin will also be available via LBP on the Osmosis platform, a type of automated market-maker (AMM) designed explicitly for token launches and sales. With an LBP, tokens are distributed to achieve the initial price discovery of $REBUS.

$REBUS’ role on the RebusChain platform is to regulate transactions. The token’s value will be derived from the number of transactions on RebusChain, making $REBUS an attractive prospect as crypto moves toward a hyper-adoption phase with the rise of utilities and a decrease in complexity. Essentially, it supports and hedges any investments made in the Cosmos ecosystem.

Additionally, $REBUS will use blockchain technology to satisfy regulatory requirements without relinquishing liquidity. Overall, the $REBUS token will have three primary functions on the RebusChain platform:

  • Paying for all transactions, fees, and services, that occur within the RebusChain ecosystem
  • Securing the network through proof-of-stake
  • Provide on-chain governance for the RebusChain Ethical fund pool and the Community fund pool

Visit the website for more information about the project, its founders, partners, and to-be-released financial products (Q1 CY23’).

RebusChain believes it must bring decentralized investment opportunities to traditional investors in a convenient and easy-to-understand manner. The project aims to implement a range of financial products suited to the needs of its users and customers. RebusChain is active on several social media platforms, including Telegram, Discord, and Twitter. Or visit the project at its official website.

 

 

 


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.



from Bitcoin News

Nanjing University Sets Up One of the First Metaverse Majors in China

nanjing metaverse university china

Nanjing University in China has reportedly launched one of the first majors in the country dedicated to the study of metaverse-related knowledge. The university, located in eastern China, stated that this new push is directed to impart new metaverse-related courses that will help more students to fulfill the needs of metaverse companies.

Nanjing University to Train Metaverse Workers

More universities and educational institutions are including the metaverse as an element in their courses worldwide. This time the university of Nanjing, located in the east of China, will launch one of the first metaverse majors in the country in its latest metaverse push.

The Nanjing University of Information Science & Technology is renaming one of its main departments, the Information Engineering Department, to the “Metaverse Engineering Department,” with the objective of integrating more metaverse-related courses into the university. According to sources, this might be the first department that includes the word “metaverse” in China.

Pan Zhigeng, dean of the renamed department, stated this move will contribute to the integration of the institution with metaverse-related enterprises, in order to identify the needs of these groups and train more talent to fill their rosters.

Zhigeng also stated that students would be more qualified to serve in three different areas including smart healthcare, smart education, and digital tourism. To advance the university in these areas, the department will establish three different working groups: the metaverse research institute, the smart meteorological research institute, and the smart medical research institute.

Metaverse and Education

Other universities are also using the metaverse as a tool to facilitate the relations and integration of students. In July, The Hong Kong University of Science and Technology announced the construction of an online metaverse campus called Metahkust, that would allow remote students to attend classes together as if they were in the same venue. This would yield better results than using 2D video apps (like Zoom) for the same approach, according to university personnel.

Also in July, the University of Tokyo also announced it would offer metaverse engineering courses later this year.

Earlier this month, Meta also reported its participation in the creation of 10 online metaverse campuses, in partnership with a metaverse construction company named Victoryxr. This is part of the Immersive Learning project, a $150 million initiative that seeks to introduce the metaverse in educational environments.

What do you think about Nanjing University and its metaverse focus? Tell us in the comments section below.



from Bitcoin News

Global Manhunt for Terra Luna Founder Do Kwon After Interpol Issues Red Notice

The global law enforcement agency the International Criminal Police Organization (Interpol), issued a notice for Terraform Labs co-founder Do Kwon just a few weeks after a warrant for his arrest was issued by South Korean authorities. The red notice enables South Korea to receive help from global law enforcement bodies in locating and “provisionally arrest[ing] a person pending extradition, surrender, or similar legal action.”

Global Manhunt for Terraform Labs CEO

Just a few weeks after South Korean authorities issued an arrest warrant for Do Kwon and his associates, the global law enforcement agency the International Criminal Police Organization (Interpol) has reportedly issued a red notice for the Terraform Labs co-founder. The issuing of the notice follows reports that Kwon is not residing in Singapore as Korean authorities initially thought.

According to Interpol, red notices are “issued for fugitives wanted either for prosecution or to serve a sentence.” The red notice enables South Korea to receive help from global law enforcement bodies in locating and “provisionally arrest[ing] a person pending extradition, surrender, or similar legal action.”

Do Kwon’s Silence

As reported by Bitcoin.com News, South Korean prosecutors accuse Kwon and five other Terraform Labs affiliates of violating the country’s capital markets law. Kwon also faces other charges that prosecutors have not divulged.

In his initial response to reports that Korean authorities had issued an arrest warrant for him, Kwon insisted in a September 17 tweet that he was not on the run. Instead, he claimed that he was cooperating with “any government agency that has shown interest to communicate.”

The Terraform Labs chief executive officer has not issued a response to the reports that show Interpol has issued a red notice. Earlier this afternoon at 1:05 p.m. (ET), Kwon responded to a tweet that said: “[Do Kwon] where [are] you hiding fam?” Kwon replied that he was “writing code” in his “living room” and further told the individual to come and visit, and that they should have a cigarette soon.

What are your thoughts on this story? Let us know what you think in the comments section below.



from Bitcoin News

More Than a Half Dozen US Securities Regulators File Actions Against Crypto Lender Nexo

Crypto lender Nexo is having issues with state authorities from California, New York, Washington, Kentucky, Vermont, South Carolina, and Maryland. The enforcement actions from multiple state securities regulators detail that Nexo’s Earn Interest Product (EIP) may be in violation of securities laws.

Nexo Targeted by Several Securities Regulators Over the Crypto Lender’s Earn Interest Product

Following the issues that took place last year against Celsius’ and Blockfi’s interest-bearing accounts, the crypto lender Nexo has been targeted by several state securities regulators concerning the company’s Earn Interest Product (EIP). The state of California insists that since June 2020, Nexo has “offered and sold unqualified securities, in the form of Earn Interest Product accounts, to the United States public at large and to California residents.”

The state of New York and attorney general Letitia James filed a lawsuit against Nexo. Similarly, the state of New York and James say that Nexo started offering the EIPs around June 2020, up until the present day. James claims Nexo violates New York’s Martin Act, and acted as “unregistered securities brokers or dealers.” Washington is saying the same and Washington’s securities division mentioned several states are in on the law enforcement actions together.

Kentucky, Vermont, South Carolina, and Maryland have all filed similar actions against Nexo, and many of the complaints are ordering Nexo to cease and desist current operations tied to the firm’s interest-bearing accounts. Similar law enforcement actions took place in 2021 against Celsius before the company went bankrupt. Blockfi was also targeted by several state securities regulators in 2021 and in February 2022, Blockfi was charged by the U.S. Securities and Exchange Commission (SEC).

Blockfi decided to settle with the SEC and paid $100 million in penalties. Crypto lenders have had significant issues this year, and when rumors circulated that Celsius was insolvent, Nexo offered to purchase the company’s assets. Blockfi explained that it had zero exposure to Celsius but when Celsius paused withdrawals, the move caused a significant “uptick in client withdrawals” on the Blockfi platform.

Blockfi did, however, have exposure to the now-defunct crypto hedge fund Three Arrows Capital (3AC) and Blockfi’s CEO said the firm lost $80 million from the bankrupt company. Nexo has been tweeting on September 26, but the crypto lender has not issued a statement concerning the securities regulators issuing cease and desist orders. Three days ago, the NFT lending desk held an ask-me-anything (AMA) session featuring the co-founder of Nexo and the firm’s managing partner.

What do you think about the eight regulators that targeted Nexo on Monday? Let us know what you think about this subject in the comments section below.



from Bitcoin News

Grayscale’s GBTC Discount to NAV Breaks Records as Spread Widens by More Than 35%

Grayscale's GBTC Discount to NAV Breaks Records As Spread Widens by More Than 35%

Grayscale Investment’s Bitcoin Trust (GBTC) has dropped to a new low this week as the bitcoin fund tapped a record 35.18% low against bitcoin spot prices. GBTC’s discount to spot has been underwater for a total of 577 consecutive days.

GBTC Discount to NAV Widens by 35% — Fund Reaches an All-Time Low Against BTC Spot Price

The Grayscale Bitcoin Trust (OTCMKTS: GBTC) is the oldest, and one of the most popular, bitcoin (BTC) funds on the market today. However, in recent times GBTC has been suffering from a discount compared to BTC’s spot market values. Unfortunately, GBTC has been trading at a discount rather than a premium since February 26, 2021, or for roughly 577 straight days.

GBTC’s current pre-market value is $11.20 and according to Securities and Exchange Commission (SEC) filings, there’s 643,572 BTC held by the trust. Metrics indicate that the 643,572 BTC equates to 3.065% of the 21 million bitcoin supply cap. GBTC’s 35.18% discount is the fund’s all-time low against BTC spot price values since the fund started.

Many people believe GBTC’s discount derives from the fact that there are several exchange-traded funds now, and Grayscale’s efforts to transform GBTC into an ETF (exchange-traded fund) have failed so far. The U.S. SEC rejected the company’s latest attempt in June, and Grayscale decided to sue the SEC over the rejection.

Trader and entrepreneur Bob Loukas discussed the GBTC situation on Saturday. “Grayscale bitcoin discount widened record 35%,” Loukas tweeted. “At Oct 2020 blow-off point. Meh institutions. If BTC falls to lower teens coming months, this [is] a good option. Have to be willing to hold to [the] point where a redemption option unlocks value. Even so, must be limit to discount,” Loukas added.

Grayscale's GBTC Discount to NAV Breaks Records as Spread Widens by More Than 35%

GBTC neared a 30% discount last March according to Glassnode statistics, and at the time institutional investors were flocking to acquire GBTC at the discount. Grayscale and its parent company Digital Currency Group (DCG) have attempted to fix the discount as well, by leveraging share buybacks.

While institutional investors flocked in the past and Loukas explained that GBTC could be a good option, investors don’t seem to be rushing toward GBTC’s discounted price. “Who thought gaining exposure to [bitcoin] through GBTC was a good idea in the first place?” Tom Mitchelhill tweeted on Monday. “They’re literally selling it at a 36% discount and the market still refuses to touch it,” Mitchelhill added.

If the SEC approved GBTC to transfer into an ETF, the discount to BTC’s spot prices could be erased. The U.S. regulator, however, has yet to approve a spot market exchange-traded fund and the SEC has cited market manipulation as one of the main reasons to reject a fund with such elements. In the meantime, many traders wholeheartedly believe BTC spot prices in the lower teens are coming.

“Some of us have been talking about needing to see $8-12K BTC before we can reset and get a new bull [underway],” the Twitter account Classical Ape tweeted last week. “Still not there yet. My firm has had this target set for about a year+. Oh, and the GBTC discount is an issue too.”

What do you think about GBTC trading at a 35% discount from bitcoin spot prices this week? Let us know what you think about this subject in the comments section below.



from Bitcoin News

Δευτέρα 26 Σεπτεμβρίου 2022

WEF Launches Crypto Sustainability Coalition to Leverage Web3 Technologies in Climate Change Battle

WEF World Economic Forum

The World Economic Forum (WEF) has launched the Crypto Sustainability Coalition, an initiative dedicated to assessing the role of Web3 technologies in the fight against climate change. The organization, which is composed of 30 companies, educative groups, and other institutions, will research the impact of the energy consumption of these technologies, and how they can be used to aid the current decarbonization efforts.

WEF to Use Web3 to Fight Climate Change

Web3, a term that groups cryptocurrency and blockchain-based technologies, is currently in the spotlight of energy groups that seek to determine if the use of these technologies is pernicious for the environment. The World Economic Forum (WEF) has decided to take these technologies into account, launching an initiative to investigate if they can be useful to the current fight against climate change.

The initiative, which was announced on September 21, is called the Crypto Sustainability Coalition, and it is composed of 30 different companies, educative organizations, and other institutions interested in this issue. Among these are known cryptocurrency-linked projects, like Solana, Avalanche, Circle, NEAR Foundation, Ripple, and the Stellar Development Foundation, among others.

This coalition, as part of the Crypto Impact and Sustainability Accelerator, another bigger initiative launched this same year, will inquire about the different ways in which these companies can organize to help in this endeavor. Brynly Llyr, head of blockchain and digital assets of the World Economic Forum stated:

An important and unique aspect of Web3 is that it uses technology to support and reward direct community engagement and action. This means we can coordinate the work of many individuals directly with one another, enabling collective action without centralized control.

Different Study Areas and Criticism

This new initiative has already created different workgroups to investigate three key subjects related to crypto, blockchain, and their usage. One of these points has to do with the energy usage of these technologies, and how these can impact the climate and nature in the future.

Another of the key points has to do with how these Web3 technologies can change and be leveraged in order to decarbonize current activities. These applications might include mining and other decentralized activities.

The third subject has to do with standardizing and putting carbon credits in the blockchain, making the issuance and management of these instruments more transparent and trustable, and opening the doors for more people to participate in these markets.

What do you think about the Crypto Sustainability Coalition launched recently by the WEF? Tell us in the comments section below.



from Bitcoin News

US Court Authorizes IRS to Issue Summons for Crypto Investors’ Records

IRS Obtains Court Order Authorizing Summons for Records Relating to U.S. Taxpayers

The Internal Revenue Service (IRS) has obtained a “court order authorizing summons for records relating to U.S. taxpayers who failed to report and pay taxes on cryptocurrency transactions.” The IRS commissioner commented: “The government’s ability to obtain third-party information on those failing to report their gains from digital assets remains a critical tool in catching tax cheats.”

IRS Seeks Crypto Investors’ Records From Bank

The U.S. Department of Justice (DOJ) announced Thursday that the Internal Revenue Service (IRS) has obtained a “court order authorizing summons for records relating to U.S. taxpayers who failed to report and pay taxes on cryptocurrency transactions.”

U.S. District Judge Paul G. Gardephe entered an order on Sept. 22 “authorizing the IRS to issue a so-called John Doe summons requiring M.Y. Safra Bank to produce information about U.S. taxpayers who may have failed to report to the IRS, and pay taxes on, cryptocurrency transactions,” the DOJ detailed, noting:

Specifically, the IRS summons seeks information about customers of SFOX, a cryptocurrency prime broker, who used banking services that M.Y. Safra Bank offered to SFOX customers engaged in cryptocurrency transactions.

SFOX is a cryptocurrency dealer and trading platform with over 175,000 registered users who have collectively transacted cryptocurrencies worth more than $12 billion since 2015, the DOJ described.

IRS investigations have identified at least 10 U.S. taxpayers who conducted crypto transactions on the SFOX platform but failed to report those transactions to the IRS as required by law. The tax authority explained that a John Doe summons is a summons that does not identify the person with respect to whose liability the summons is issued.

Taxpayers are required to report any profits and losses related to cryptocurrency transactions on their tax returns. However, the IRS said that its “experience has demonstrated significant tax compliance deficiencies relating to cryptocurrencies and other digital assets.”

IRS Commissioner Charles P. Rettig stressed:

The government’s ability to obtain third-party information on those failing to report their gains from digital assets remains a critical tool in catching tax cheats.

U.S. Attorney Damian Williams opined: “The government is committed to using all of the tools at its disposal, including John Doe summonses, to identify taxpayers who have understated their tax liabilities by not reporting cryptocurrency transactions, and to make sure that everyone pays their fair share.”

What do you think about the IRS issuing a John Doe summons for crypto investors’ records? Let us know in the comments section below.



from Bitcoin News

Binance and Crypto.com Publish Proof-of-Reserve Audits Conducted by Global Auditor Mazars Group

This week two cryptocurrency exchanges provided proof-of-reserves in order to highlight that the trading platforms are backing customer ass...