Iskra Leads DappRadar Games Ranking to Kick Off 2023

Web3 gaming platform Iskra breaks into the Top 10 Games ranking list on DappRadar, the world’s leading directory for decentralized apps or dApps, in a promising start for the project in 2023.

Iskra also reached another milestone as the #1 app on the Klaytn blockchain after seeing an impressive increase in their user activity that reached a new high of 19.49K UAW (unique active wallets) per day.

The successful launch of several highly anticipated platform features earlier this year contributed to Iskra’s rise through the ranks and placed it on the map as one of the most promising projects in the Web3 gaming space.

“We are very excited to see the engagement from our community with the launch of our most recent platform features,” Iskra’s Chief Operating Officer Spike Ryu explained. “We hope that this momentum continues as we launch our games and offer early access to them in the second quarter. This is a promising start to 2023.”

Iskra started 2023 by unveiling its multi-year Platform Decentralization Plan that would eventually see the project achieve complete decentralization in 10-year time under the Iskra DAO.

This was followed by the launch of its Governance Staking, which is a major part of Iskra’s decentralization plan. By staking Iskra’s native token ISK, users can earn sISK, which represents governance rights and empower them to vote on future proposals.

Iskra also launched its primary NFT marketplace called the Iskra Market soon after, which coincided with the initial NFT offering (INO) launch of the first game in its lineup – 3 Kingdoms Multiverse (3KM).

Before January ended, Iskra rolled out Mission Cards, which provided a gamified experience for Iskra users to collect and complete Mission Card sets that they can redeem in exchange for game NFTs and tokens – a way to incentivize users to explore the platform, which proved to be highly effective given the project’s user growth.

For Q2 2023, Iskra plans to offer early access to two of their upcoming games – ClashMon: Ignition, a FREE-to-play collectible RPG that offers balanced PvP and PvE custom deck battles and Norma in Metaland: Cooking Adventure, the first FREE-to-play casual Web3 cooking game.

About Iskra

Iskra offers a premier destination for players and game developers to explore the thrill and opportunity of Web3 gaming alongside a vibrant community.

As part of its mission, Iskra aims to mold a Web3 future by creating a forward-thinking dedicated home for Web3 gaming and giving every user a stake in the company’s success. It is committed to becoming a leading platform for blockchain gaming.

Twitter | Discord | Telegram | LinkedIn | Youtube

 

 

 

---

This is a sponsored post. Learn how to reach our audience here. Read disclaimer below.

from Bitcoin News

Japanese Tech and Finance Giants Launch Japan Metaverse Economic Zone

Several Japanese tech and finance giants have signed a document to create the Japan Metaverse Economic Zone, a multipurpose virtual universe that will have its base in a platform called Ryugukoku. The virtual world will allow these companies to share their technology with users as it lets them roam this role-playing-game-like world as online avatars.

Japan Goes Big on Metaverse With Japan Metaverse Economic Zone

Several Japanese tech and finance companies have kickstarted the launch of one of the biggest metaverse initiatives in Japan.

On Feb. 16, JCB, Mizuho Financial Group, Sumitomo Mitsui Financial Group, Mitsubishi UFJ Financial Group, Resona Holdings, Sompo Japan Insurance, Toppan, Fujitsu, and TBT Lab signed an agreement to create what they called the Japan Metaverse Economic Zone, an open multipurpose metaverse platform in a virtual world called Ryugukoku, which will be operated by JP Games, the company that will be in charge of the design of the experience.

The idea behind this initiative is to adapt the industrial landscape for “updating Japan through the power of games,” an idea promoted by Hajime Tabata, Web3 advisor for the Japanese government’s digital agency. The agreement also includes the creation of the Pegasus World Kit, a tool that will enable these companies to build their own metaverse spaces inside Ryugukoku.

Structure of Ryugukoku

The Japan Metaverse Economic Zone will base its activity on Ryugukoku, a virtual world where other metaverses will function as cities, allowing citizens to roam and access each one of them using digital avatars, like in an online game. Each one of the founding companies is providing a specific set of tech features for the construction of this initiative.

For example, Mizuho Financial Group will provide its expertise in the payments area and metaverse tokens, while Mitsubishi UFJ Financial Group, which partnered with Coinbase in 2021 to launch its services in Japan, will support Web3 functions, and aid in plans for overseas expansions.

The users of the platform will use a unique identification and wallet service, denominated “Multi Magic Passport,” that will allow them to make payments and to move their personal data, including avatar status, items, and NFTs (non-fungible tokens), between these metaverses. This tool will be constructed by several Japanese companies and the TBT Lab, according to a press release.

The group expects this combination of services will be attractive to other companies overseas, which will have the opportunity of extending their businesses and services to this world in the future.

What do you think about the launch of the Japan Metaverse Economic Zone initiative? Tell us in the comments section below.

from Bitcoin News

‘Metaverse’ Term Creator Neal Stephenson Not Bullish About Massive Adoption of Virtual Worlds

Neal Stephenson, ostensibly the first to coin the term “metaverse,” issued his opinion about the future of the adoption of virtual worlds. The sci-fi writer and co-founder of Lamina1, a blockchain metaverse company, believes that building experiences that millions of people consider worth having in virtual worlds is quite difficult, hampering the adoption process of the tech.

Neal Stephenson on the Future of Metaverse Adoption

Neal Stephenson, believed to be the creator of the general concept and term “metaverse” — popularized recently by Meta — believes that mainstream adoption of this tech might be very far away. The writer, who coined the term as part of his novel Snow Crash, published in 1992, stated that the growth of the metaverse will depend on the quality of the experiences offered in the virtual world.

As part of an interview offered to the Financial Times, Stephenson stated:

There won’t be a metaverse that is used by millions of people until it contains experiences that millions of people find worth having, and making those experiences is quite difficult.

The author, who has established a clear relationship between the metaverse and gaming technology, explained that “the games industry is the economic engine and the technological engine that obviously is going to be the foundation of any future metaverse,” citing Doom, the game created by ID Software’s John Carmack, as one of the games that kickstarted the metaverse era.

Blockchain Interconnecting Virtual Worlds

Stephenson also explained that blockchain and the metaverse have a natural relationship, enabling interconnection between the various worlds as part of a bigger world. The writer says that part of the reason behind the creation of Lamina1, the company he co-founded, was to lay a foundational layer for the creation of digital worlds that have an “engineering level that are a pretty good match with what blockchains are capable of.”

The internal design of a metaverse can be done in a centralized way, but the movement of this data from one metaverse to another, part of a bigger metaverse, can be done using blockchain-based tools. He declared:

I think that to build a metaverse, we’re going to have a situation where people are moving freely from one environment to another… all of that smacks of a decentralized kind of network of interactions and financial transactions that puts me in mind of blockchain and other decentralized finance kinds of constructs.

What do you think about the opinion of Neal Stephenson on the future of metaverse adoption and the relationship it has with blockchain? Tell us in the comment section below.

from Bitcoin News

Btcpay Introduces New Coinjoin Plugin for Enhanced Bitcoin Privacy for Merchants

On Monday, Wasabi Wallet and the open-source bitcoin payment processor Btcpay announced a new plugin for the Btcpay server. The plugin implements Wasabi’s Wabisabi coinjoin coordination protocol, allowing merchants to benefit from privacy enhancement. By activating the newly launched plugin, all the funds that merchants receive and send will be coinjoined, or mixed together with other bitcoin transactions.

New Btcpay Server Plugin Aims to Bolster Bitcoin Privacy

According to an announcement from the privacy-centric bitcoin wallet platform Wasabi Wallet and the bitcoin payment processor Btcpay, merchants now have the ability to obfuscate their incoming and outgoing bitcoin (BTC) transactions.

The technology comes in the form of a new plugin for Btcpay, which was developed by Andrew Camilleri and based on Wasabi Wallet’s Wabisabi coinjoin coordination protocol. The Btcpay plugin’s scheme “protects the privacy of all their incoming and outgoing transactions by preventing sensitive information about their store’s payment history from leaking to unconcerned parties,” Wasabi explained in a summary sent to Bitcoin.com News.

“Btcpay Server was created to empower individuals and businesses to regain their financial sovereignty,” said Kukks, the developer of the Btcpay Coinjoin Plugin, in a statement. “The Wasabi Wallet team and I are proud to offer even more privacy protection with this new coinjoin feature. I believe that financial privacy is a fundamental human right, this feature is my contribution to that cause.”

The announcement details that all Btcpay Server merchants can utilize the coinjoin process with a liquid coordinator provided by Zksnacks, the firm behind Wasabi Wallet. Moreover, Btcpay Server administrators can start their own coinjoin coordinators on their own terms if they choose not to use the Zksnacks coordinator. The two firms further mentioned that the new coinjoin service also provides a payment batching feature that saves block space.

“It only made sense that it would include an optional coinjoin plugin with the most sophisticated privacy-enhancing tool for bitcoin,” Max Hillebrand, Wasabi Wallet contributor and the CEO at Zksnacks said. “As a coinjoin protocol, Wabisabi has been designed with merchants in mind, enabling payments inside coinjoin and optimizing block space usage to save on fees.”

Btcpay is not the only company that has collaborated with Wasabi and introduced the privacy-enhancing coinjoin technology. In September 2022, Trezor announced that it was adding a coinjoin implementation into the firm’s hardware wallet.

What do you think about the new Btcpay Server plugin and its potential impact on enhancing bitcoin privacy for merchants? Let us know your thoughts in the comments section below.

from Bitcoin News

G20 Finance Chiefs Widely Recognize Crypto Poses Major Financial Stability Risks, Says Indian Central Bank Governor

The G20 finance ministers and central bank governors recognize that cryptocurrencies pose major risks to financial stability, monetary systems, and cyber security, India’s central bank governor reportedly said. Crypto regulation was among the key topics discussed during the G20 meeting over the weekend.

G20 Agrees Crypto Poses Major Risks to Financial Stability, Says RBI Governor

Reserve Bank of India (RBI) Governor Shaktikanta Das talked about cryptocurrency during a media briefing Saturday following the G20 meeting of finance ministers and central bank governors in Bengaluru. According to India’s state-owned media agency News On Air:

Das told the media that there is now wide recognition and acceptance of the fact that crypto currencies or assets are major risks to financial stability, monetary systems, and cyber security.

Das also noted that G20 delegates expressed interest in central bank digital currency (CBDC) pilot projects in India and other countries, the publication conveyed. India’s central bank began its digital rupee pilots in November and December last year.

During a media briefing at the conclusion of the G20 meeting of finance ministers and central bank governors, Indian Finance Minister Nirmala Sitharaman said there is almost a clear understanding that anything not backed by the central bank is not a currency. She emphasized that this is the position that India has taken for a very long time.

During the G20 meeting, India asked the International Monetary Fund (IMF) and the Financial Stability Board (FSB) to produce a joint paper on crypto to help formulate “comprehensive” crypto policies. IMF Managing Director Kristalina Georgieva has called for more crypto regulation, stressing that banning should not be taken off the table. Moreover, the IMF executive board recently published guidance for developing effective crypto policies.

The RBI has said repeatedly that cryptocurrencies that are not backed by the central bank should be banned entirely. However, the Indian finance minister previously said that banning or regulating will only be effective if it is done in collaboration with other countries. U.S. Treasury Secretary Janet Yellen said that the U.S. has not suggested outright banning of crypto activities, but stressed that it is “critical” to establish a strong regulatory framework for crypto.

Meanwhile, delegates from over 200 jurisdictions recently met and agreed on the timely implementation of the Financial Action Task Force (FATF) standards on crypto.

What do you think about the G20 finance ministers and central bank governors agreeing that crypto poses major risks to financial stability? Let us know in the comments section below.

from Bitcoin News

SEC Chairman Explains Why He Views All Crypto Tokens Other Than Bitcoin as Securities

U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler has detailed why he considers all crypto tokens other than bitcoin as securities. While acknowledging that crypto tokens may have different setups, he stressed that “at the core, these tokens are securities.”

SEC Chair Believes All Crypto Tokens Other Than Bitcoin Are Securities

The chairman of the U.S. Securities and Exchange Commission (SEC), Gary Gensler, explained why he believes all crypto tokens other than bitcoin are securities in an interview published Thursday by New York Magazine’s Intelligencer.

Gensler believes that the securities watchdog has all of the legal tools needed to oversee the crypto sector, the publication conveyed, adding that the SEC boss explained that pretty much every sort of crypto transaction already falls under the SEC’s jurisdiction except spot transactions in bitcoin itself and the actual purchase or sale of goods or services with cryptocurrencies.

The SEC chairman was quoted as saying:

Everything other than bitcoin … you can find a website, you can find a group of entrepreneurs, they might set up their legal entities in a tax haven offshore, they might have a foundation, they might lawyer it up to try to arbitrage and make it hard jurisdictionally or so forth.

“They might drop their tokens overseas at first and contend or pretend that it’s going to take six months before they come back to the U.S.,” Gensler continued, without naming any cryptocurrencies specifically.He emphasized:

But at the core, these tokens are securities because there’s a group in the middle and the public is anticipating profits based on that group.

Following Gensler’s claim that all crypto tokens other than BTC are securities, a number of people took to social media to disagree with the SEC chief. Lawyer Jake Chervinsky tweeted:

Chair Gensler may have prejudged that every digital asset aside from bitcoin is a security, but his opinion is not the law.

“The SEC lacks authority to regulate any of them until and unless it proves its case in court,” Chervinsky emphasized, adding that this must be done “For each asset, every single one, individually, one at a time.” Logan Bolinger, another lawyer, similarly said on Twitter: “In this country, judges — not SEC chairs — ultimately determine what the law means and how it applies. Doesn’t mean his thoughts are irrelevant. They’re just not dispositive.”

What do you think about SEC Chairman Gary Gensler viewing all crypto tokens other than bitcoin as securities? Let us know in the comments section below.

from Bitcoin News

Mirror Trading International Liquidators Spent More Than $6 million on Lawyers and Investigators

Liquidators of the now defunct bitcoin trading platform, Mirror Trading International have so far used approximately $4.2 million on expenses such as lawyers’ or consultants’ fees. Between Jan. 23, 2023, and the date of their appointment, liquidators claimed to have recovered approximately $770,000 which belonged to MTI.

Liquidators’ Fees

Liquidators of the collapsed bitcoin Ponzi scheme Mirror Trading International (MTI) have so far spent approximately $4.9 million (90.2 million rands) on lawyers and consultants since assuming control, a report has said. According to a Mybroadband report, a total of approximately $6.1 million has so far been disbursed while a further $7.3 million is earmarked for liquidators’ fees.

In April 2021, a Bitcoin.com News report said more than $70 million was raised from selling 1,281 bitcoins belonging to MTI. A few months later, another report said more than 8,000 BTC belonging to MTI had been “traced” and that investigators were on track to finding more.

However, according to the report, between Jan.23 and the day they took control of MTI assets, liquidators have so far recovered around $770,000. While liquidators are said to be expecting an “exponential increase in the amount recovered from the so-called net winners,” they are less certain about the growth rate of their expenditure.

According to the blockchain intelligence firm, Chainalysis, MTI was the biggest crypto scam in 2020 which netted more than $500 million for the scheme’s masterminds.

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

from Bitcoin News

Reports Indicate USDT Is Being Used in Venezuela to Facilitate Settlements and to Avoid Sanctions

Some companies in Venezuela are using the stablecoin tether as a way of sidestepping sanctions and settling payments with foreign customers and providers. Local reports indicate that, while the most popular use case for the stablecoin involves its purchase for devaluation shielding purposes, a handful of companies are also harnessing it in this way.

Companies Are Reportedly Using USDT to Avoid Being Hurt by Sanctions in Venezuela

While the use of dollar-pegged stablecoins, like Tether’s USDT, in countries like Venezuela is mainly related to inflation and devaluation according to Chainalysis, a second use case has also been discovered recently. Reports from local analysts state that a handful of companies are using USDT as a payment method for foreign customers and providers, which are afraid of using traditional payment means due to the risk of receiving sanctions.

According to Juan Blanco, director of local consulting firm Bitdata consultants, many unidentified companies are settling commercial exchanges using USDT, with part of this cash flow coming from companies located in Asia and Russia. Blanco stated:

There are things that are being produced in Venezuela with great value that are traded in USDT. The little that is exported, due to the issue of the blockade, leaves the country through the free and independent mechanism provided by the blockchain to pay for goods and services.

Luis Gonzalez, manager of Cashea, a local financing hub, stated that sanctions do affect Venezuelan SMEs, even when these are not contemplated in their scope. Gonzalez explained:

With the sanctions they restrict us, who have nothing to do with political issues. Access to international transfers, currency, means of payment and suppliers is limited. Obviously, most payments are made abroad and in foreign currency. The only alternative that we have had is the use of USDT.

Crypto for Oil

The reports of the possible implementation of cryptocurrencies for sidestepping sanctions in Venezuela come from 2019, when the central bank of the country was studying to use ether and bitcoin to pay providers of PDVSA, the state-owned oil company, according to Bloomberg.

More recently, in October, the Department of Justice indicted five Russian nationals and two oil brokers that were using USDT as part of a scheme to purchase equipment for the Russian military and sell Venezuelan oil. The indictment alleges that at least one sale of 500,000 million barrels of crude might have been settled using USDT.

What do you think about the usage that Venezuelan companies shave found for USDT? Tell us in the comments section below.

from Bitcoin News

Russian Darknet Markets, Ransomware Groups Thrive Despite Sanctions, Report

Russian marketplaces on the dark web have continued to operate despite Western sanctions and efforts to shut them down, according to a report accessing the illicit blockchain space amid the world’s “first crypto war.” Ransomware actors and high-risk crypto exchanges have also remained active.

Underground Russian Crypto Platforms Adapting to Disruptions Caused by Ukraine War

Before Russia invaded Ukraine a year ago, cryptocurrency exchanges linked to the two countries accounted for over half of the international volumes of illicit crypto funds. Cybercrime organizations were full of Russian-speaking members and Russian-language darknet markets (DNMs) dominated the global drugs trade in cryptocurrency, TRM Labs noted in a new report.

Over the past year, the blockchain intelligence firm analyzed changes in the illicit crypto ecosystem to find out how cybercriminals are adjusting to the financial, political, and logistical disruptions caused by the conflict. The company describes the latter as “the world’s first crypto war,” with the two sides relying on donations in digital assets to fund their military and humanitarian campaigns and the West trying to limit the opportunities for Moscow to use coins to bypass restrictions.

When the war broke out, Western governments and law enforcement agencies went after Russia-linked DNMs, ransomware syndicates and crypto exchanges exposing users to increased risks. However, these have continued to thrive even after the unprecedented actions against them, the researchers were able to establish.

In April, German authorities seized the servers of the largest darknet market, Hydra, while the U.S. Treasury Department imposed sanctions on Hydra and Garantex, a Russia-based crypto exchange accused of processing $100 million of illicit transactions. The total includes $6 million from the Russian ransomware group Conti and around $2.6 million from Hydra.

Despite the crackdown, Garantex not only continues to operate but has more than doubled its trading volumes over the course of 2022, TRM Labs revealed. Meanwhile, newly founded Russian DNMs have quickly filled the gap left by the dismantling of Hydra. Sales on these platforms between May and Dec. 2022, surpassed those in the first four months of the year.

At the same time, while Conti officially shut down in May, it has actually rebranded and is still operating through several smaller groups. Although, a study published by Chainalysis in January of this year showed that sanctions have played a role in reducing ransomware revenue.

The TRM report also highlights the politicization of some Russian and Ukrainian hackers providing an example with Killnet. The group, which conducts malware and distributed denial-of-service (DDoS) attacks, pledged allegiance to the Russian state, threatening entities linked to unfriendly nations. The pro-Ukrainian Dump Forums have also hit Russian targets. Both have been raising crypto on Telegram for their respective causes. DNMs and darknet forums have largely remained politically neutral.

Do you think the authorities in Russia, Ukraine, and other countries in the region will crack down on such platforms in the future? Share your thoughts on the subject in the comments section below.

from Bitcoin News

Rap Star Drake Loses $400,000 Bitcoin Bet on Jake Paul in Split-Decision Loss to Tommy Fury

The Canadian rapper and singer Drake lost $400,000 in bitcoin after betting that the YouTuber-turned-boxer Jake Paul would beat Tommy Fury by knockout. Drake could have potentially raked in a $1.44 million bitcoin payout, but Fury won the fight in a split-decision victory.

Drake Loses $400K Bitcoin Bet on Jake Paul’s Bout

On Feb. 26, 2023, in Diriyah, Saudi Arabia, YouTuber-turned-boxer Jake Paul’s winning streak was stopped by Tommy Fury, the half-brother of Mike Tyson. The fight was a close bout, with Fury winning by split decision (74-75, 76-73, 76-73), despite Paul knocking Fury down in the eighth round. Paul had six straight wins under his belt before losing to Fury on Sunday. Before the fight, the rap star and actor Drake placed a $400,000 bitcoin wager, or roughly 17 BTC, on Paul winning the fight by knockout (KO).

Drake took to Instagram and showed off his bet, which was placed on the crypto betting platform Stake. “Knock knock,” Drake said, with a door emoji. The screenshot Drake shared showed that if Paul had won the fight, he could have cashed in $1.44 million in bitcoin. Drake is well-known for placing various bitcoin bets, as the 36-year-old rapper bet $472,000 in bitcoin that the LA Rams would win against the Bengals in the Super Bowl. The Rams won 23-20 that game, and Drake won $240,000 from the wager.

Drake lost $275,000 in BTC when he bet on the mixed martial artist Jorge Masvidal’s fight, and he also lost $234,000 in bitcoin when Charles Leclerc did not win Spain’s Grand Prix. The rap star enjoys making sports bets, and one famous instance was when Drake backed Conor McGregor in UFC 229, but McGregor lost the fight to Khabib Nurmagomedov.

There’s an ongoing online joke now called the ‘Drake Curse,’ and according to the joke, if the rapper backs a person, they are likely to lose. Following the fight and speaking at a post-fight press conference, Paul joked about Drake’s bet.

“F***! This is Drake’s fault!” Paul said. “Drake, bro, why did you do this to me? No, it’s my fault. $400,000 is nothing to him – he has won a lot more money betting on me before. He’s probably about even now. Sorry, Drake, I’ll get that win in the rematch,” the fighter added.

What do you think about Drake losing $400,000 in bitcoin after Jake Paul lost his fight against Tommy Fury? Let us know what you think about this subject in the comments section below.

from Bitcoin News

Janet Yellen Says ‘Critical’ to Establish Strong Crypto Regulation — ‘We Haven’t Suggested Outright Banning’

U.S. Treasury Secretary Janet Yellen says “it is critical to put in place a strong regulatory framework” for crypto on the sidelines of the G20 meeting for finance ministers and central bank governors. “We haven’t suggested outright banning of crypto activities,” Yellen added.

Janet Yellen on ‘Strong’ Crypto Regulation

U.S. Treasury Secretary Janet Yellen talked about crypto regulation in an interview with Reuters Saturday on the sidelines of the G20 meeting for finance ministers and central bank governors under India’s presidency in Bengaluru.

Yellen emphasized the importance of establishing a robust regulatory framework for cryptocurrencies while clarifying that the U.S. has not proposed an outright ban. The treasury secretary said:

We haven’t suggested outright banning of crypto activities, but it is critical to put in place a strong regulatory framework … We’re working with other governments.

Crypto regulation was among the key topics discussed by the G20 finance ministers and central bankers under India’s presidency this weekend. During the meeting, India asked the International Monetary Fund (IMF) and the Financial Stability Board (FSB) to develop a joint paper on crypto in order to help formulate “a coordinated and comprehensive policy approach to crypto assets.”

Indian Finance Minister Nirmala Sitharaman has been pushing for international cooperation on crypto regulation for months. She said prior to the G20 meeting that India was having “detailed discussions” with G20 members on crypto regulation to establish a technology-driven regulator framework or standard operating procedure (SOP) on crypto.

In the U.S., the Securities and Exchange Commission (SEC) has recently stepped up its enforcement efforts against crypto firms. The SEC recently charged crypto exchange Kraken over its staking program and Nexo over its Binance USD (BUSD) stablecoin issuance. The securities watchdog also charged Terraform Labs and CEO Do Kwon for defrauding investors.

IMF Managing Director Kristalina Georgieva also said on the sidelines of the G20 meeting this weekend that crypto needs “more regulation.” While noting that there must be a “very strong push for regulation,” she said: “If regulation fails, if you’re slow to do it, then we should not take off the table banning those assets, because they may create financial stability risk.”

In addition, the executive board of the IMF provided guidance this week to help countries develop effective crypto policies. A few executive board directors thought that “outright bans should not be ruled out.” In addition, the board advised: “Crypto assets should not be granted official currency or legal tender status.”

What do you think about Treasury Secretary Janet Yellen’s statement about crypto? Let us know in the comments section below.

from Bitcoin News

Billionaire ‘Bond King’ Jeffrey Gundlach Warns of ‘Painful Outcomes’ in Next Recession

Billionaire Jeffrey Gundlach, aka the “Bond King,” has warned of “painful outcomes that are coming in the next recession.” Commenting on the Federal Reserve’s attempt to curb inflation, he cautioned: “The more you try to reduce the severity of problems, you’re going to end up ultimately having a very high severity problem.”

‘Bond King’ Jeffrey Gundlach on the Next Recession

Jeffrey Gundlach, chief executive officer and chief investment officer of investment management firm Doubleline, shared his outlook on the U.S. economy in an interview with Yahoo Finance last week. Gundlach is nicknamed “the Bond King” after he appeared on the cover of Barron’s as “The New Bond King” in 2011. According to Forbes, his net worth is currently $2.2 billion.

“It doesn’t matter if it’s a soft landing or a hard landing,” he began. “People are always asking me this question: ‘How bad is the recession going to be?’ It doesn’t matter, as long as we’re going into a recession, you have to have a certain degree of protection.” Gundlach added:

We could see some real interesting, painful outcomes that are coming in the next recession, whether it’s very severe or not.

He noted that one indicator “that is the slam dunk on recession is if the unemployment rate crosses its 36-month, three-year moving average,” emphasizing: “We’re pretty far away from that, but that doesn’t happen at the front end of a recession. If that happens, it suggests you’re in more of a hard-landing type of recession.”

The billionaire explained that the Federal Reserve, “in a backhanded way … are sort of predicting a recession themselves” because they said in December that “the unemployment rate was going to end this year at about 4.6%, up 100 basis points.” He stressed: “Historically when you get more than a 50-basis-point rise in the unemployment rate, you’ve never avoided a recession.”

Gundlach further explained: “When you have this, sort of, attempt to never have a significant downturn in the economy — Fed to the rescue, zero interest rates, quantitative easing — what you’re trying to do is avoid any type of hard landing ever.” He continued: “That type of activity violates Gundlach’s rule of financial physics, and that is that the frequency of problems times the severity of problems equals a constant.” The billionaire opined:

The more you try to reduce the severity of problems, you’re going to end up ultimately having a very high severity problem.

Do you agree with billionaire Jeffrey Gundlach about the U.S. economy? Let us know in the comments section below.

from Bitcoin News

BRICS Nations ‘Coalescing Against the Dollar,’ Major Banks Predict More Fed Hikes, Bitcoin Records Large Blocks as Ordinals Gain Currency

In spite of turbulence in traditional global finance, with BRICS nations said to be pushing for de-dollarization and major banks like Bank of America and Goldman Sachs predicting further interest rate hikes from the U.S. Federal Reserve, creativity in crypto has found a new boon in the form of controversial inscriptions, called Ordinals, on the Bitcoin blockchain. All this and more, just below, in the latest Bitcoin.com News Week in Review.

Expert Predicts Looming Economic Collapse as BRICS Nations Unite Against the Dollar

Andy Schectman, CEO of Miles Franklin Precious Metals Investments, explained in a recent interview that the five leading emerging economies — Brazil, Russia, India, China, and South Africa, collectively known as BRICS nations — are “coalescing against the dollar.” Schectman believes that since 2022, de-dollarization “seems to be spinning much, much faster.”

Read More

Bank of America, Goldman Sachs, JPMorgan, UBS Share Predictions About Further Fed Rate Hikes

Bank of America, Goldman Sachs, JPMorgan, and UBS have shared their predictions about the Federal Reserve raising interest rates further. Bank of America and Goldman Sachs, for example, now expect the Fed to raise interest rates three more times this year.

Read More

Economist Warns the Fed Can’t Reach Inflation Target Without ‘Crushing’ US Economy

Economist Mohamed El-Erian, Allianz’s chief economic advisor and chair of Gramercy Funds Management, has warned that the Federal Reserve cannot achieve its 2% inflation target without crushing the U.S. economy. “You need a higher stable inflation rate. Call it 3% to 4%,” the economist suggested.

Read More

Bitcoin Continues to Record 3.75 MB Blocks as Ordinals Increase

As Ordinal inscriptions approached the 150,000 mark, blocks larger than 3 MB have become commonplace, with many blocks near the 4 MB range. Meanwhile, after the average transaction fee on-chain rose 122% higher at the beginning of February 2023, the average fee has remained the same over the last few weeks.

Read More

What are your thoughts on this week’s hottest stories from Bitcoin.com News? Be sure to let us know in the comments section below.

from Bitcoin News

South Africa Added to FATF ‘Grey List’ Despite Designation of Crypto as a Financial Product

In a move seen as a major setback for South Africa, the international financial watchdog, the Financial Action Task Force, announced on Feb. 24 that it had added the country to its “grey list.” Getting grey-listed by the financial watchdog potentially makes it difficult for South Africa to obtain loans from foreign banks.

A Setback for South Africa

The global financial crimes watchdog, the Financial Action Task Force (FATF), has added South Africa to its grey list, which is a group of countries that are “committed to resolving swiftly the identified strategic deficiencies within agreed timeframes.” According to one report, the inclusion of South Africa in the FATF’s so-called grey list is a major reputational setback for the country which has been eager to avoid being added to the list.

As reported by Bitcoin.com News, a South African financial industry regulator designated crypto as a financial product after the FATF reportedly voiced its concerns over the lack of regulation of such assets. At the time, some commentators suggested that this move would help South Africa avoid getting grey-listed.

However, in its Feb. 24 statement, the South African Reserve Bank (SARB) seemingly acknowledged that the country has not done enough to avoid getting grey-listed. The bank nevertheless vowed to “strengthen its supervision and further enhance the dissuasiveness and proportionality of administrative sanctions issued.”

Potential Impact on Flow of Capital

The SARB added that banks and other financial institutions also have a role to play in resolving the deficiencies identified by the FATF.

“The SARB expects banks and other financial institutions within its purview to comply fully with all their obligations and applies a high standard of supervision that is necessary to safeguard and protect the integrity of the financial system. These actions, when coupled with measures and actions undertaken by law enforcement and other authorities within South Africa, serve to achieve an effective AML/CFT/CPF system,” the central bank said.

According to a Reuters report, being on the FATF’s grey list could potentially make it hard for South Africa to secure loans from foreign banks perturbed by the watchdog’s move. The report also quotes an International Monetary Fund document from 2021 which suggested that countries on this list will sometimes see the flow of capital into their respective economies getting disrupted.

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.

from Bitcoin News

Lawmakers to Resubmit Russia’s Crypto Mining Bill, Introduce Liability for ‘Gray’ Miners

The draft law legalizing cryptocurrency mining will be resubmitted to Russian parliament which will postpone its adoption, one of its sponsors announced. Members of the lower house are also working on a separate bill that will introduce liability for those who mint digital coins illegally.

Adoption of Russian Crypto Mining Legislation Postponed Again

A bill designed to legalize the mining of cryptocurrencies, which was first filed with the State Duma in November, will be resubmitted to the lower house of Russian parliament after additional consultations, according to Anton Gorelkin, deputy chairman of the parliamentary Committee on Information Policy.

The lawmaker explained that the consideration of the regulations is a difficult process. “As a co-sponsor of the bill, I can confirm that it will be postponed. I hope that this year we will be able to implement it in some form,” Gorelkin elaborated, quoted by the crypto news outlet Forklog.

Russian parliamentarians and other officials have been mulling over how to regulate crypto-related operations for over a year. The law aims to recognize mining as a legitimate business activity and oblige involved entities and persons to report their income to tax authorities.

According to the draft provisions, miners will be able to sell the coins abroad or on platforms operating under special legal regimes in Russia. Despite demonstrating interest in the potential use of cryptocurrencies in international settlements amid sanctions, most government institutions in Moscow remain opposed to allowing crypto payments inside the country.

Russian Authorities Want to Introduce Liability for ‘Gray’ Crypto Miners

If approved in its current version, the legislation will also prohibit the advertising or other forms of promoting crypto assets to unlimited audience. Russian lawmakers already postponed its adoption once, in December. The initial plan was to vote on the law by the end of 2022.

Besides a profitable business, the extraction of cryptocurrencies has become a popular source of income for many ordinary Russians, especially in regions maintaining low, subsidized electricity rates. But this at-home mining has been blamed for breakdowns and fires, leading to a proposal to ban it in residential areas.

Last week, the head of the Financial Market Committee at the Duma, Anatoly Aksakov, revealed that lawmakers are now preparing another bill which introduces liability for so-called “gray miners” or those who steal electricity to mint or have illegally connected their hardware to the grid. The high-ranking deputy told RBC Crypto that both laws should be adopted simultaneously in the first half of the year.

Do you think Russia will adopt the new crypto mining legislation this year? Tell us in the comments section below.

from Bitcoin News

Crypto Exchanges Allow Russians to Circumvent Sanctions, Report Alleges

Major crypto exchanges have failed to prevent sanctioned Russian banks and traders from transacting, according to a blockchain forensics report. At least two established coin trading platforms continue to allow Russians to use their bank cards in peer-to-peer deals, the analysis shows. It also highlights an increased Russian interest in tether.

Russian Traders Still Using Leading Cryptocurrency Exchanges to Bypass Restrictions

Some of the world’s largest digital asset exchanges have been failing with measures to prevent Russian banking institutions under sanctions from operating through their platforms, reveals a report by the blockchain analytics firm Inca Digital, announced on the first anniversary of Moscow’s invasion of neighboring Ukraine.

According to the research, quoted by Bloomberg and Politico, traders can still use debit cards issued by Russian banks sanctioned by the U.S., Canada, U.K., and the European Union among others, including the state-owned Sberbank, to trade on the peer-to-peer (PTP) platforms of two Seychelles-based exchanges, Huobi and Kucoin.

Inca CEO Adam Zarazinski explained that while neither of the two accepts funds from the blacklisted banks, allowing crypto buyers to trade with each other using accounts with sanctioned institutions represents a “direct violation of U.S. and European sanctions with a little bit of a loophole.” The exchanges are yet to comment on the findings.

Binance Offers Russians Ways to Convert Rubles Into Crypto, Inca Claims

The investigation examined data on 163 crypto trading platforms, centralized and decentralized exchanges, as well as P2P and OTC (over the counter) service providers. Nearly half of them allow Russian nationals to buy digital currencies, applying different know-your-customer (KYC) requirements, trading limits, and geolocation tools. For example, Singapore-based Bybit lets users convert rubles into crypto on its P2P platform and make fiat deposits, including through “any Russian-issued card.”

Binance, the industry leader in terms of daily trading volume, has been mentioned, too, with the report identifying potential vulnerabilities. The authors note that the exchange offers “multiple methods for Russians to convert local currency into crypto,” including via its OTC and P2P marketplace, available to them without KYC checks for up to $10,000.

Chagri Poyraz, global head of sanctions at Binance, stated that the exchange is a “full-KYC platform and was the first major exchange to implement EU crypto-related sanctions … Our P2P team takes the extraordinary added step of filtering any forms of communication between users to ensure there is absolutely no potential nexus with Russian entities through any sort of workaround,” he emphasized.

The study also points to the use of tether to circumvent Western sanctions on Russia, noting a spike in discussions on Russian social media about employing the stablecoin for remittances. “Tether is frequently used by Russians to move money out of the country,” the chief executive of Inca Digital said. Both Binance and tether have faced regulatory scrutiny over the past months.

What are your thoughts on the findings in the report by Inca Digital? Share them in the comments section below.

from Bitcoin News

India Asks IMF and FSB for Joint Paper to Help Formulate ‘Comprehensive’ Crypto Policy

India has asked the International Monetary Fund (IMF) and Financial Stability Board (FSB) to develop “a synthesis paper” on crypto assets as part of the G20 meeting of finance ministers and central bank governors under India’s presidency. “This would help in the formulation of a coordinated and comprehensive policy approach to crypto assets,” said India’s finance ministry.

India Asks IMF and FSB for Technical Paper on Crypto

The Indian government released on Saturday its “G20 Chair’s Summary and Outcome Document” following the first two-day G20 meeting of finance ministers and central bank governors that took place in Bengaluru on Feb. 24-25. Crypto regulation was among the topics discussed.

During a panel discussion on cryptocurrency regulation as part of the G20 meeting, India requested that the International Monetary Fund (IMF) and Financial Stability Board (FSB) collaborate on a technical paper on crypto assets. According to the summary document:

IMF and the FSB to jointly submit a synthesis paper integrating the macroeconomic and regulatory perspectives of crypto assets in September 2023.

The document adds that the FSB is “to finalize its high-level recommendations on the regulation, supervision and oversight of global stablecoins; and high-level recommendations on the regulation, supervision and oversight of crypto-asset markets and activities by July 2023.” In addition, the Bank of International Settlements (BIS) is “to submit a report on analytical and conceptual issues and possible risk mitigation strategies related to crypto assets.”

India’s ministry of finance also released a statement Saturday following the G20 meeting of finance ministers and central bank governors. “To complement the ongoing dialogue on the need for a policy framework, the Indian presidency has proposed a joint technical paper by the International Monetary Fund (IMF) and the FSB, which would synthesize the macroeconomic and regulatory perspectives of crypto assets,” the finance ministry stated, elaborating:

This would help in the formulation of a coordinated and comprehensive policy approach to crypto assets.

India aims to expand the scope of the G20 discussion on crypto assets to encompass not only financial integrity concerns but also the macroeconomic implications and the widespread adoption of cryptocurrencies throughout the economy, the Indian ministry of finance’s statement further notes.

Indian Finance Minister Nirmala Sitharaman has been saying for many months that crypto will be a priority in G20 discussions under India’s presidency. She said in October last year that India hopes to arrive at a technology-driven regulatory framework or a standard operating procedure (SOP) for crypto assets. Sitharaman has also repeatedly pushed for international cooperation on crypto.

This week, the IMF executive board released guidance to help countries develop effective crypto policies. Besides recommending that “crypto assets should not be granted official currency or legal tender status,” the IMF executive board directors “agreed that strict bans are not the first-best option, but that targeted restrictions could apply.”

What do you think about India asking the IMF and the FSB to jointly develop a technical paper on crypto? Let us know in the comments section below.

from Bitcoin News

Over 200 Jurisdictions Agree on Timely Implementation of FATF Crypto Standards

The Financial Action Task Force (FATF) says delegates from over 200 jurisdictions have agreed on “an action plan to drive timely global implementation of FATF standards” on crypto assets. The standard-setting body said many countries have failed to implement its previous requirements on crypto, including the “travel rule.”

Countries Agree to Implement FATF Crypto Standards

The Financial Action Task Force (FATF), an intergovernmental organization established to combat money laundering and the financing of terrorism, announced Friday the outcome of its plenary which took place on Feb. 22-24. “Delegates from over 200 jurisdictions of the Global Network participated” in a number of discussions at its headquarters in Paris, the FATF said.

A number of issues, including those relating to crypto assets, were discussed, the FATF noted, elaborating:

Delegates further agreed on an action plan to drive timely global implementation of FATF standards relating to virtual assets (also termed crypto assets) globally, including on the transmission of originator and beneficiary information.

“The lack of regulation of virtual assets in many countries creates opportunities that criminals and terrorist financiers exploit,” the FATF claimed.

The global anti-money laundering watchdog revealed that since its strengthened Recommendation 15 in October 2018 for crypto assets and crypto service providers, “many countries have failed to implement these revised requirements, including the ‘travel rule‘ which requires obtaining, holding and transmitting originator and beneficiary information relating to virtual assets transactions.”

The FATF relies on a global network of FATF-Style Regional Bodies (FSRBs), in addition to its own members, to achieve global implementation of its recommendations.

“The plenary thus agreed on a roadmap to strengthen implementation of FATF standards on virtual assets and virtual asset service providers, which will include a stocktake of current levels of implementation across the global network,” the standard-setting body emphasized, elaborating:

In the first half of 2024, the FATF will report on steps FATF members and FSRB countries with materially important virtual asset activity have taken to regulate and supervise virtual asset service providers.

What do you think about over 200 jurisdictions agreeing on the timely implementation of FATF standards on crypto assets? Let us know in the comments section below.

from Bitcoin News

Germany’s DZ Bank to Offer Crypto Custody With Swiss Firm Metaco

The second-largest bank in Germany, DZ Bank, is preparing to become a provider of custody services for crypto assets. The offering will be facilitated by a partnership with Metaco, a Swiss company that specializes in helping financial institutions to operate in the digital asset space.

DZ Bank to Use Metaco’s Harmonize Platform to Launch Crypto Custody Services

DZ Bank, part of Volksbanken Raiffeisenbanken which is one of the largest banking groups in Germany, is going to employ a platform built by Metaco to offer institutional clients services in the field of digital currencies and crypto securities, the fintech announced.

Regulated by the Federal Financial Supervisory Authority (Bafin), DZ Bank is an established custodian and Germany’s second-largest bank by asset size. At the end of 2022, it had €297 billion (almost $315 billion) worth of assets under custody.

Metaco, founded in Switzerland in 2015, is focused on enabling financial and non-financial institutions to conduct crypto operations. Its infrastructure allows such players to store and trade cryptocurrencies, tokenize other assets, provide staking services, and manage smart contracts.

Under the cooperation, DZ Bank intends to use Metaco’s core product, an orchestration platform for digital assets called Harmonize, to integrate its new offering into its current asset management services. “Metaco’s digital asset technology infrastructure is purposely designed to support financial institutions to capitalize on the digital asset economy,” commented Craig Perrin, chief sales officer at Metaco.

The German bank, which puts an emphasis on regulatory compliance and security, selected it through an extensive proof-of-concept and diligence process, the press release noted. Nils Christopeit, lead solution design digital custody at DZ BANK, elaborated:

In terms of our security, scalability, and future requirements of our digital asset custody initiative for institutional clients, starting with crypto securities as per the German eWpG, Metaco Harmonize has proven to be a powerful solution.

Christopeit was referring to the Electronic Securities Act (Gesetz zur Einführung elektronischer Wertpapiere, abbreviated eWpG in German), which was adopted in 2021 to update the country’s securities legislation and the relevant supervisory framework. The law, which entered into force on June 10 of that year, is a key element of the blockchain strategy approved by the federal government in Berlin.

Do you think other major German banks will take advantage of the opportunity to provide services related to digital assets? Tell us in the comments section below.

from Bitcoin News

JPMorgan to Open Blockchain Innovation Lab in Greece

Financial giant JPMorgan has announced it will open a new blockchain innovation lab in Greece. The lab will be focused on the development of applications on top of Onyx, the blockchain platform launched by the bank in 2020, and on digital identity solutions.

JPMorgan to Push Blockchain Development in New Innovation Lab

JPMorgan, the investment bank with millions of customers worldwide, has announced the launch of a new innovation lab in Greece, which will develop solutions using blockchain tools. The lab will focus primarily on building applications that use Onyx, the platform launched by the bank in 2020.

This new innovation lab will be part of the Blockchain Launch group, which prepares and develops blockchain-based software for customers of the bank using Onyx’s technology. Tyrone Lobban, head of Blockchain Launch & Onyx Digital Assets at JPMorgan, revealed that the company is looking to fill four new positions for this new initiative including two full-stack software engineers, a mobile app engineer, and a technical manager.

The company has been using blockchain-based solutions for some time. Back in 2022, Lobban stated that the bank was settling $1 billion daily using blockchain tech.

Digital Identity

Lobban also stated that this new group will be core to the research and construction of digital identity solutions, to extend the capabilities that the institution has already piloted before. Digital identity is listed as one of the use cases that is part of the services supported by Onyx’s blockchain launch team.

About the significance that digital identity could have in the future, Lobban declared:

We believe that Digital Identity is key to unlocking scale for Web3 and can enable entirely new interactions and services for web2 and Web3 alike.

The interest of the institution in digital identity could be part of a move to avoid being left behind in the future. A report titled “The Rise Of Digital Identity Wallets” issued in January by the Mobey Forum, a global nonprofit insight group, explains that banks are uniquely positioned to be part of the digital identity structure of the future, adding this service to their already existent digital wallets.

In January, reports revealed that JPMorgan was part of a group of banks developing a digital wallet, alongside Wells Fargo, Bank of America, and four other financial institutions.

What do you think about the innovation lab that JPMorgan is launching in Greece? Tell us in the comment section below.

from Bitcoin News

Israeli Startup Chain Reaction Raises $70 Million to Build Blockchain Silicon

Chain Reaction, a Tel Aviv-based blockchain startup, announced it has raised $70 million as part of its Series C funding round. The objective of the company is to expand its engineering staff to accelerate the production of its blockchain-focused silicon and collaborate in the development of its cryptographic-focused chips.

Chain Reaction Raises $70 Million in Series C Funding Round

Chain Reaction, a startup that focuses on building blockchain-based silicon, announced that it has raised $70 million as part of its Series C funding round. The round, which was led by Morgan Creek Digital, part of Morgan Creek Capital — a VC company co-founded by crypto influencer Anthony “Pomp” Pompliano — saw the participation of Hanaco Ventures, Jerusalem Venture Partners, KCK Capital, Exor, Atreides Management, and Blue Run Ventures.

With this capital influx, the company expects to increase its engineering headcount in order to hasten the development of its blockchain silicon products, estimated to reach the market later this year. According to Alon Webman, co-founder and CEO of Chain Reaction, the mass production of the first batch of chips, called “Electrum,” will start in Q1 2023.

According to reports from Reuters, Electrum will be a highly efficient ASIC chip designed for bitcoin mining, a field dominated by companies like Bitmain. The fabless startup enrolled the services of TSMC, one of the biggest foundries in Taiwan, to mass produce the chips.

While the company did not disclose its valuation, Techcrunch estimates it to be around $500 million, having raised $115 million since its founding.

Blockchain Chips and Homomorphic Encryption

Chain Reaction aims to use its first batch of blockchain chips as a trampoline to developing more advanced silicon, designed to tackle cryptographic problems.

The more advanced chips would be centered around a technique called homomorphic encryption, which allegedly could allow them to make operations with encrypted data without decrypting it in the first place.

This could have several applications in the cryptography field, allowing for more efficient and private operations without having to put plain information in the open when working with data.

The company is optimistic about having a solution for this cryptographic issue, even with today’s limited processing capabilities. Chain Reaction co-founder and CEO Alon Webman stated:

We think our solution will make homomorphic encryption viable. We have unique architecture and we also understand the limitations on compute and memory among processors today. We have the solution needed to make it possible.

Chain Reaction expects to launch this chip sometime at the end of 2024.

What do you think about Chain Reaction and its blockchain-based silicon? Tell us in the comments section below.

from Bitcoin News