Crypto Exchange Binance Drops Abu Dhabi License Application as Global Needs Shift

Crypto exchange Binance has withdrawn its application for a license in Abu Dhabi. “When assessing our global licensing needs, we decided this application was not necessary,” a Binance spokesperson stated, adding that the company plans to continue to work with regulators “to provide world-class services and offerings in the Middle East and beyond.”

Binance Says ‘This Application Was Not Necessary’

Cryptocurrency exchange Binance has reportedly withdrawn its application with Abu Dhabi’s financial regulator. A spokesperson for Binance said on Thursday:

When assessing our global licensing needs, we decided this application was not necessary.

According to Binance’s website, Abu Dhabi-based Binance (AD) Ltd. received conditional financial services permission from the Financial Services Regulatory Authority (FSRA) on Nov. 15 last year to provide crypto custody services. The regulator’s website details: “Binance (AD) Limited is not permitted to deal with retail clients, as defined in the FSRA’s Conduct of Business Rulebook (COBS).” The crypto exchange noted that meeting the conditions required by the regulator will allow Binance (AD) to commence providing custody services to professional clients. The FSRA oversees all financial activities within the Abu Dhabi Global Market (ADGM) international financial center.

Last month, Binance founder Changpeng Zhao (CZ) resigned as CEO after pleading guilty to violating U.S. anti-money laundering laws, and the crypto exchange agreed to pay over $4.3 billion as part of the settlement with U.S. authorities. The Binance spokesperson claimed that the decision to withdraw the Abu Dhabi license application was “unrelated” to the U.S. settlement. Zhao is a citizen of the UAE.

This year, Binance withdrew from a licensing process in Germany, retracted from Cyprus, and announced its exit from the Netherlands. The decision to withdraw from Cyprus was explained as a strategic move to concentrate on fewer regulated entities in the EU, with a focus on France, Italy, and Spain, in anticipation of the European Union’s crypto asset regulations rollout. The crypto firm has also been ordered by financial regulators to cease operations in Belgium.

Moreover, Binance canceled the regulatory authorization it received in the U.K. and announced the intention to divest its business in Russia. Additionally, regulators in Australia revoked the financial services license of Binance’s derivatives business. In the Philippines, the securities regulator initiated the process of blocking Binance last week.

The Binance spokesperson emphasized on Thursday that the crypto exchange would continue to work with regulators “to provide world-class services and offerings in the Middle East and beyond.”

What do you think about Binance withdrawing its application for a license in Abu Dhabi? Let us know in the comments section below.

from Bitcoin News

Thirdweb Begins Mitigation of Vulnerability Affecting Thousands of Smart Contracts

Thirdweb, a Web3 development framework provider, has announced that it has started mitigating a vulnerability that could potentially affect thousands of smart contracts across several networks. The vulnerability, uncovered in November, impacts various pre-built smart contracts that the framework provides for rapidly deploying applications using an undisclosed open-source library.

Thirdweb Mitigates Critical Vulnerability Across Dozens of EVM Networks

Thirdweb, a Web3 development framework provider, is mitigating the impact of a recently discovered vulnerability in its smart contracts suite. The organization stated that in the last 48 hours, more than 8,000 contracts had been mitigated to contain the impact of this vulnerability, and it is working to extend these actions.

While the organization stated that the vulnerability derived from an open-source Web3 library used across the industry, it has not disclosed its specific nature or its mitigation procedures. Thirdweb announced the vulnerability affected several of its pre-built smart contracts provided by the organization for deploying applications across Ethereum Virtual Machine (EVM) chains.

As of writing, Thirdweb has acknowledged that only two smart contracts have been exploited, without offering more details.

The vulnerability was discovered on November 20, when the organization started working to develop a mitigation tool. The situation was publicly disclosed on December 4, with Thirdweb having worked with affected partners like NFT market Opensea previously, to warn them.

In addition, Thirdweb contacted the maintainers and third parties using this undisclosed Web3 open-source library to inform them about the issue and to share its findings and mitigation measures.

Thirdweb also revealed that it would ramp up its investment in security, doubling its payments for its already existing bug bounty program from $25,000 to $50,000 and implementing more rigorous auditing processes.

Hacks and exploits have soared during 2023. According to Certik, a blockchain security company, more than $1 billion had been stolen from smart contracts as of the beginning of September. The cost of attacks ramped up in September, with $332 million lost to hacks, scams, and exploits in this month.

What do you think about Thirdweb’s vulnerability disclosure and mitigation actions? Tell us in the comments section below.

from Bitcoin News

Robert Kiyosaki Warns ‘This Next Crash May Turn Into a Depression’

Rich Dad Poor Dad author Robert Kiyosaki has warned that a soft landing for the U.S. economy is a fantasy, emphasizing that a crash landing is more likely. Noting that he already warned of this giant crash in his Rich Dad’s Prophecy book, the famous author stressed: “This next crash may turn into a depression.”

Robert Kiyosaki on Giant Crash and a Depression

The author of Rich Dad Poor Dad, Robert Kiyosaki, has once again sounded the alarm about the U.S. economy. Rich Dad Poor Dad is a 1997 book co-authored by Kiyosaki and Sharon Lechter. It has been on the New York Times Best Seller List for over six years. More than 32 million copies of the book have been sold in over 51 languages across more than 109 countries.

Kiyosaki wrote on social media platform X Wednesday: “Soft landing is a fantasy. Crash landing more likely. I warned of this giant crash in my book Rich Dad’s Prophecy pub 2012.” He continued:

This next crash may turn into a depression.

The renowned author also shared in an X post on Sunday that the Israel-Hamas war has motivated him to buy an electric vehicle. “The war is about oil,” he said. “Higher gas prices will make the poor poorer.” He proceeded to reiterate his recommendation of buying gold, silver, and bitcoin, which he believes to be the best investment for unstable times.

The well-known author has repeatedly expressed concerns about challenging times ahead for the U.S. economy. Last week, he similarly cautioned about a possible next Great Depression and a war, predicting “really hard times ahead” for millions of people. Kiyosaki also previously warned of the “greatest real estate crash ever,” emphasizing that the Federal Reserve’s rate hikes will also crash stocks, bonds, and the U.S. dollar.

What do you think about the warnings by Rich Dad Poor Dad author Robert Kiyosaki about the next crash turning into a depression? Let us know in the comments section below.

from Bitcoin News

JPMorgan CEO Jamie Dimon Says He’d Close Crypto Down if He Were the Government

JPMorgan Chase CEO Jamie Dimon told U.S. senators in a congressional hearing that he would close down crypto if he were the government. Emphasizing that he has always been “deeply opposed” to crypto and bitcoin, the executive stressed that the true use case of crypto is criminals, drug traffickers, money laundering, and tax avoidance.

Jamie Dimon Wants to Shut Down Crypto, Bitcoin

The chief executive officer of global investment bank JPMorgan Chase shared his view about crypto and bitcoin on Wednesday during the Senate Banking Committee’s annual Wall Street oversight hearing.

Responding to U.S. Senator Elizabeth Warren’s question about why cryptocurrencies are an attractive tool for criminals, Dimon stated:

I’ve always been deeply opposed to crypto, bitcoin, etc. You pointed out the true use case for it is criminals, drug traffickers, anti-money laundering, tax avoidance.

“That is a use case because it is somewhat anonymous, not fully, and because you can move money instantaneously because it doesn’t go through all these systems built up over many years: Know Your Customer [KYC], sanctions, OFAC [Office of Foreign Assets Control] — they can bypass all of that,” the JPMorgan boss emphasized, adding:

If I were the government, I’d close it down.

“Today’s terrorists have a new way to get around the Bank Secrecy Act — cryptocurrency,” Senator Warren claimed. “I’m not usually holding hands with the CEOs of multibillion-dollar banks, but this is a matter of national security.”

Dimon has always been skeptical about crypto and bitcoin. He previously said crypto tokens are “decentralized Ponzi schemes.” In January, he called bitcoin “a hyped-up fraud” and likened the cryptocurrency to a pet rock. He also believes that Bitcoin’s pseudonymous creator Satoshi Nakamoto could remove the cryptocurrency’s supply limit.

Responding to Dimon’s testimony, crypto proponents expressed on social media platform X that if he thinks he can shut down bitcoin, he doesn’t understand it. Many pointed out that banks and fiat money are used more heavily by criminals than crypto. Vaneck’s director of digital asset strategy, Gabor Gurbacs, commented: “Since 2000, regulators fined banks 7,400+ times totaling to fines of $380+ Billion. Banks should stay silent.” He added:

JPMorgan Chase parent company is the second most penalized financial institution with close to $40 billion in fines for 272 violations since 2000. Jamie Dimon is in no position to criticize bitcoin with this sort of track record. They should start the hearing with these stats.

Lawyer John Deaton called Dimon a hypocrite. “Who’s the criminal Jamie Dimon? Let me ask you a question: In the last 5 years when JPMorgan has been fined over thirty-five billion dollars ($35,000,000,000) for illicit and fraudulent activities, did any of your staff use bitcoin or crypto?” he asked.

Even X’s “readers added context” pointed out that people might want to know: “Less than 1% of the trillions transacted annually in crypto are illicit. The UN estimates that annually between 2% to 5% of global GDP ($800 billion – $2 trillion) is used for illicit activities and money laundering through the traditional banking system and cash.”

What do you think about JPMorgan Chase CEO Jamie Dimon wanting to shut down crypto and bitcoin? Let us know in the comments section below.

from Bitcoin News

Brazil to Discuss Digital Currency Usage for Financial Transactions in G20

Brazil will address the subject of digital currencies and how they can improve the financial system for the Group of Twenty (G20). Roberto Campos Neto, president of the Central Bank of Brazil, stated he wants the G20 to consider the benefits of using these currencies for making financial transactions and to work towards adapting rules to take advantage of this.

Brazil to Discuss Digital Currencies as G20 President

The government of Brazil will discuss digital currencies and the possible benefits of implementing them for financial transactions as part of the Group of the Twenty (G20). Having assumed the G20 presidency on December 1, Brazil will leverage its position to advance the digital agenda and assess how the twenty largest economies could adapt their regulatory frameworks to take advantage of digital currencies.

At a recent event, Roberto Campos Neto, president of the Central Bank of Brazil, explained Brazil will touch on this subject in the group. According to Valor Economico, he stated:

Digital currencies can greatly reduce the costs of international transactions. The G20 will work to improve the settlement and governance of international transfers.

Campos Neto referred to the improvements that programmability, a trait of digital currencies, brings to the financial transactions arena, clarifying that it can offer efficiency gains due to the possible scheduling of asset purchases and payments.

Monetization of user data will be a significant factor in lowering the costs associated with using these currencies, Campos Neto stressed. “It is a technology that is here to stay. It democratizes,” he concluded.

Brazil is currently in the pilot stages of its upcoming digital currency, dubbed drex, which features an elevated degree of programmability, including automating transactions involving assets such as cars and real estate. The launch of this currency could happen in 2024, according to previous statements from Campos Neto.

What do you think about Brazil taking the issue of digital currencies to the G20? Tell us in the comments section below.

from Bitcoin News

Report: Terraform Labs Co-Founder Do Kwon to Be Extradited to the US

Terraform Labs’ co-founder, Do Kwon, is on the brink of extradition to the United States from Montenegro. This development follows a decisive ruling by a high court and the endorsement from a top official. According to The Wall Street Journal, Justice Minister Andrej Milovic has confidentially agreed to the extradition, signifying a crucial twist in Terraform Labs’ continuing narrative and its profound repercussions on the crypto economy.

High Court Approves U.S. Extradition of Terraform Labs Co-Founder Do Kwon Amid Fraud Charges

The Wall Street Journal released an exclusive report on Thursday regarding Do Kwon’s extradition. This follows the judgment of a Montenegrin high court, which received subsequent support from Justice Minister Andrej Milovic during closed-door and private conversations. Insiders reveal that the high court has consented to the U.S.’s extradition request and plans to transfer Kwon to American soil.

The path to extradition for Kwon has been complex, with the possibility of him being extradited to either South Korea or the U.S. Though Kwon consented to be extradited to South Korea, which added complexity to the case, the ultimate decision lay in the hands of Montenegrin officials. They now appear inclined to grant the U.S.’s extradition request. The Journal’s Alexander Osipovich and Marko Vešović stated:

Montenegro’s top justice official has privately said he plans to send disgraced crypto tycoon Do Kwon to the U.S. rather than South Korea to face criminal charges, people familiar with the matter said.

The charges from the U.S. against Kwon are extensive and multifaceted, including accusations of commodities fraud, securities fraud, wire fraud, and conspiracy to commit fraud and manipulate the market. The U.S. Securities and Exchange Commission (SEC) has leveled these charges, alleging that Kwon deceived investors through his operations at Terraform Labs. Despite facing these significant legal hurdles, Kwon has steadfastly refuted all claims of fraudulent conduct.

What do you think about the insiders who say Montenegro plans to send Do Kwon to the United States? Share your thoughts and opinions about this subject in the comments section below.

from Bitcoin News

New Jersey Bill Proposes Classifying All Crypto Tokens Sold to Institutional Investors as Securities

A bill has been introduced in the U.S. state of New Jersey to classify all cryptocurrencies issued and sold directly to institutional investors as securities. In contrast, the U.S. Securities and Exchange Commission (SEC) has previously stated that bitcoin is not a security, but SEC Chairman Gary Gensler views all other crypto tokens as securities.

New Jersey Bill 5747

New Jersey Assembly Bill 5747, sponsored by Representative Herbert Conway, was introduced on Nov. 30 in the New Jersey State Assembly to classify all cryptocurrencies issued and sold to institutional investors as securities. According to the text of the bill:

This bill classifies all virtual currencies issued and sold to institutional investors as securities.

Under the proposed rules, virtual currencies issued and sold directly to institutional investors will be subject to the state’s “Uniform Securities Law” and any regulations promulgated by the Bureau of Securities in the Division of Consumer Affairs to effectuate the purposes of the bill.

The bill has been referred to the Assembly Financial Institutions and Insurance Committee, which will review the bill and conduct hearings for public input. If the committee approves the bill, it will then be sent to the full Assembly for a vote.

The regulatory status of cryptocurrencies remains uncertain at the federal level, with no clear guidance on which tokens are considered securities. While SEC Chairman Gary Gensler has repeatedly stated that most crypto tokens, excluding bitcoin (BTC), fall under the definition of securities, he has refrained from explicitly commenting on ether (ETH). However, a recent court ruling in the SEC v. Ripple case determined that XRP, as a standalone asset, is not a security. Ripple’s chief legal officer, Stuart Alderoty, explained: “As a matter of law — XRP is not a security … The only thing the court found constitutes an investment contract is past direct XRP sales to institutional clients.”

The SEC has identified a number of crypto tokens as securities in lawsuits against various crypto firms, including Kraken, Coinbase, Binance, and Bittrex. These tokens include ADA, AXS, ALGO, ATOM, BNB, BUSD, CHZ, COTI, DASH, FIL, FLOW, ICP, MANA, MATIC, NEAR, NEXO, OMG, SAND, SOL, TKN, and VGX.

What do you think about this New Jersey bill seeking to classify all crypto tokens, including bitcoin, as securities? Let us know in the comments section below.

from Bitcoin News