Top of the Latest Crypto News of This Week
Mt. Gox Starts Repayments in Bitcoin and Bitcoin Cash
Summary
The European Banking Authority (EBA) has announced that crypto service providers and intermediaries within the European Union will be required to adhere to Regulation (EU) 2023/1113, also known as the Travel Rule guidelines, starting from December 30, 2024. This regulation aligns crypto exchanges with stringent AML and CFT measures, mandating that information on transfers of funds and crypto assets be reported. Key provisions include collecting user information for fund or crypto asset transfers, identifying transactions related to service purchases, and detecting linked transfers. Crypto asset service providers (CASPs) will be subject to the EU’s comprehensive AML/CFT regime as defined by the EU’s Markets in Crypto-Assets Regulation (MiCA).
Mt. Gox, the defunct cryptocurrency exchange, has initiated the process of reimbursing its long-waiting customers with Bitcoin and Bitcoin Cash. This marks the end of a nearly decade-long ordeal that began with a major hack in 2014.
Details
As a researcher studying the cryptocurrency market, I’m excited to share that on a recent Friday, Mt. Gox, which was previously the world’s preeminent crypto exchange, made an important announcement. They initiated the process of returning funds to their customers, marking the conclusion of a nearly decade-long ordeal for numerous users.
In the past, this particular company processed around 70% of all Bitcoin transactions. However, it encountered financial difficulties and declared bankruptcy in the year 2014 following a cyberattack that led to the theft of roughly 740,000 Bitcoins.
As an analyst, I’ve observed that Mt. Gox’s announcement to begin repayments in July has intensified selling pressure on Bitcoin and the wider crypto market. This news caused a significant drop in Bitcoin’s price down to $53,600 – its lowest point in the past five months. Consequently, over $580 million worth of bullish bets were liquidated due to this sharp decline.
Some customers may experience delays of 60-90 days before receiving their payouts.
Approved exchanges by the trustee for handling repayment transactions are Bitbank, BitGo, Bitstamp, Kraken, and SBI VC Trade, a Japanese platform.
Source: CoinDesk
Top of the Latest Cryptocurrency News on DeFi
ConsenSys Acquires Wallet Guard to Boost MetaMask User Protection
Summary
As a researcher examining the latest developments in the blockchain industry, I’m excited to share that ConsenSys, a renowned Ethereum development firm, has taken a significant step towards enhancing user security by acquiring Wallet Guard. This web3 security app will be integrated into their flagship product, MetaMask Wallet. By doing so, ConsenSys aims to provide an additional layer of protection against potential hacks and scams for its users.
Details
MetaMask Wallet’s creator, ConsenSys, has recently taken over Wallet Guard, a Web3 security app, aiming to bolster the wallet’s existing security capabilities.
MetaMask users will benefit from an extra security shield through this acquisition, safeguarding them against potential hacking attempts and crypto frauds.
Based on a recent announcement, ConsenSys intends to employ Wallet Guard’s security features for real-time detection of scams and wallet drainers to secure its MetaMask user base. This implementation involves incorporating Wallet Guard’s browser extension into MetaMask, thus strengthening its existing protective measures.
This purchase follows recent scrutiny from the US Securities and Exchange Commission (SEC) over MetaMask’s staking feature. The SEC has accused ConsenSys of offering unregistered securities and functioning as an unregistered broker-dealer in relation to MetaMask. In reaction, a US judge has granted ConsenSys a swift timeline for a lawsuit against the regulatory body.
As part of the acquisition, the Wallet Guard team will join the MetaMask team.
Source: Crypto News
Top of the Latest Cryptocurrency News on Regulations
Türkiye Adopts New Crypto Assets Regulation Bill
Summary
The Turkish Parliament passed the highly anticipated “Capital Markets Law Amendment Bill,” introducing fresh regulations for the cryptocurrency sector.
Details
Crypto asset service providers must secure approval from the Capital Markets Board (SPK) prior to launching and commencing business in Turkey.
As a researcher studying the regulatory landscape of cryptocurrencies in Turkey, I would explain that the Security and Exchange Commission (SPK) is given the power to oversee the crypto market. Simultaneously, the Scientific and Technological Research Council of Türkiye (TÜBITAK) establishes guidelines for crypto information systems and technological infrastructure. Furthermore, the law introduces clear definitions for essential terms such as “crypto asset,” “crypto asset service provider,” and “wallet.”
In Turkiye, the rules place great emphasis on obtaining licenses for crypto platforms. It is now mandatory for these entities to obtain authorization from the SPK (Capital Markets Board), which holds the authority to implement regulatory actions, make binding decisions, and levy penalties. As outlined by the SPK, external audit firms will be responsible for conducting thorough financial and information technology examinations of crypto asset service providers.
The new law fails to tackle the taxation of cryptocurrencies, a matter that will be handled in upcoming legislations.
Furthermore, the law imposes penalties of up to 5 years in prison and significant court-ordered fees on unauthorized individuals and officials within organizations.
If service providers are discovered mishandling funds or assets, including cryptocurrencies, they may be penalized with imprisonment ranging from 8 to 14 years, significant financial penalties, and a mandate to cover any resulting damages.
As a crypto investor, I understand that all current service providers in Türkiye’s thriving cryptocurrency market must submit an application to the Securities and Exchange Commission (SPK) within a month. If we fail to meet this requirement, we will be forced to halt operations and initiate liquidation within the following three months. This regulatory framework is designed to boost transparency and trust in our dynamic crypto market, one of the largest on a global scale.
Source: Daily Sabah
EU Enforces Travel Rule for Crypto Exchanges
Summary
Starting from December 30, 2024, crypto exchanges within the European Union will need to adhere to the Travel Rule regulations as part of new legislation. This change is intended to strengthen Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) efforts across the EU.
Details
Starting from December 30, 2024, crypto service providers and intermediaries operating within the European Union are required to comply with Regulation (EU) 2023/1113, also referred to as the Travel Rule guidelines. This regulation necessitates reporting information about transfers of funds and crypto assets to ensure alignment with rigorous anti-money laundering (AML) and countering the financing of terrorism (CFT) measures.
Under the EU’s MiCA regulation, crypto asset service providers (CASPs), which includes me if I’m in that category, are now subject to the EU’s rigorous Anti-Money Laundering (AML) and Countering Financing of Terrorism (CFT) regime. Payment service providers (PSPs) and intermediary PSPs, as well as CASPs and their intermediaries, have a two-month window to demonstrate compliance with these new regulations.
The Travel Rule has certain essential requirements. One is gathering user information for the transfer of funds or digital assets. Another is identifying transactions connected to purchasing services, and lastly, detecting interconnected transfers. Additionally, crypto businesses and intermediaries are obliged to reveal their approaches concerning multiple intermediaries and cross-border transfers.
The European Banking Authority (EBA) recognizes that adhering to the EU Travel Rule will entail financial expenses for crypto exchanges and service providers. However, these costs are believed to be surpassed by the advantages in the long run. The objectives of these guidelines are to markedly enhance the ability to combat money laundering and terrorism financing.
As a regulatory compliance analyst, I would advise that if you are a crypto exchange or service provider currently subject to the EU’s Anti-Money Laundering Directive (AMLD) or any domestic Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) regime, it is essential that you continue to abide by all relevant AML/CFT regulations.
Source: Cointelegraph
Sam Bankman-Fried’s Family Involved in a $100 Million Political Scandal
Summary
Sam Bankman-Fried, the founder of FTX and related entities, faces allegations of using approximately $100 million from company funds towards political contributions.
Details
Sam “SBF” Bankman-Fried, the creator of the failed cryptocurrency platform FTX, finds himself at the center of a $100 million controversy over allegations that company funds were diverted towards political contributions.
Newly disclosed emails from The Wall Street Journal indicate that SBF’s family served a pivotal function in overseeing more than $100 million in political donations. Reportedly sourced from questionable FTX customer funds, these contributions aimed to sway the 2022 election results, sparking numerous lawsuits.
As a crypto investor looking into the latest developments regarding Sam Bankman-Fried (SBF) and his family’s involvement in political donations, I came across some intriguing information from the Wall Street Journal. The emails uncovered reveal my father, Joe Bankman, providing financial advice related to these donations. Shockingly, according to the WSJ report, Joe Bankman was directly involved in these alleged illicit funding operations. Furthermore, my mother, Barbara Fried, and my brother, Gabriel Bankman-Fried, are also accused of having directed funds to various political entities and causes.
Barbara, as a co-founder of Mind the Gap, is reportedly responsible for channeling funds towards progressive organizations and projects. On the other hand, Gabriel has been said to have routed contributions to pandemic prevention causes.
David Mason, who previously led the Federal Election Commission, pointed out that Joe Bankman’s role in the situation could potentially lead to him facing legal consequences under campaign finance regulations. Mason emphasized the presence of compelling evidence within the emails indicating that Joe Bankman was aware of the illegal straw-donor scheme. However, a representative for Joe Bankman asserted that he remained unaware of any suspected campaign financing infractions.
On May 28, Ryan Salame, the ex-co-CEO of FTX Digital Markets, was given a prison term of 7.5 years by Judge Lewis Kaplan in the Southern District Court, after confessing to criminal charges. The offenses involved conspiring to manage an unregistered money transmitting business and campaign finance fraud. Salame’s sentencing adds to the unfolding story of FTX, as ex-colleagues Caroline Ellison and Nishad Singh, who have also admitted guilt, are yet to receive their sentences.
Source: Cointelegraph
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2024-07-09 09:55