The rising interest in Bitcoin has pushed the iShares Silver Trust launched in April 2006 trading under the ticker symbol “SLV” lower down the leaderboard. The silver trust is another BlackRock-owned product and gives exposure to the day-to-day movement of the price of silver bullion. The SLV trust has approximately $9,787,865,530 AUM just shy of $10 billion.

Bitcoin ETFs are moving up the Commodity ETFs leaderboard.

Note the YTD performance difference of $IBIT $FBTC $ARKB $BITB vs. $GLD $IAU $SLV $GLDM $PDBC $SGOL $DBC $USO $UNG pic.twitter.com/fg3vl4AJTj

— HODL15Capital (@HODL15Capital) March 3, 2024

Bitcoin ETFs Driven by Excitement and Frenzy 

Hector McNeil, co-CEO and the co-founder of HANetf, a firm which markets and distributes exchange-traded products, told Cryptonews, that it is unsurprising IBIT has overtaken the silver trust.

“The success of IBIT I think reflects how hot bitcoin is as an asset class driven by the excitement and frenzy around the US ETF approvals,” explains McNeil.

BlackRock is a global powerhouse, the world’s largest asset management, with $10 trillion in assets as of December 31. Unsurprisingly, the firm entering Bitcoin with a new Spot Bitcoin product has triggered another bull run.

“Tons of competition and masses of marketing dollars being spent. As long as the price momentum keeps going then I see the AUM rising. This is both down to Bitcoin price as well as inflows,” said McNeil.

Commenting on the IBIT ETF overtaking the iShares Silver Trust in terms of AUM, McNeil explains, “Precious metals have had a good price run over the last year but nowhere near the frenzy of Bitcoin so doesn’t surprise me it’s surpassing the silver trust.”

IBIT Overtakes GBTC Trust 

On Thursday, Grayscale’s Bitcoin product trading under the ticker symbol “GBTC” faced a sluggish trading session, marked by net outflows nearing $600m. This day marked the second largest outflow since Jan. 11. Total GBTC outflows since Jan. 11 now amount to $8,406.3m.

“It’s great to witness from a capital markets perspective that [BlackRock] iShares has superseded and replaced Grayscale’s GBTC from being the main trading vehicle for Bitcoin,” Laurent Kssis, a crypto expert on trading and ETFs at CEC Capital told Cryptonews.

“We always said the GBTC product was substandard for institutional investors but the first one to make it on the secondary market through a loophole in the rules to admit products on OTC markets,” explains Kssis.

Taken Ten Years To Get Where We Are 

Back in July 2013 the Winklevoss twins first filed for a Bitcoin ETF but this was rejected over and over again. 

“It has taken 10 years after the filing of the S1 from the Winklevoss brothers to get where we are and we are still scratching the surface where many trading platforms are still holding off and deliberating from allowing their clients to trade the ETFs — it’s inevitable — and this will allow a second layer of investment yet not seen so far,” said Kssis.

Wall Street Remains Hungry for Crypto ETFs 

On Wednesday, it emerged that Morgan Stanley is considering adding spot Bitcoin ETFs to its brokerage platform and is currently in the process of conducting due diligence, according to a CoinDesk report citing two sources familiar with the matter.

During press time Bitcoin was trading at around $63,755. ​​Bitcoin’s price prediction remains a focal point for investors as Bitcoin is climbing to $63,800, an increase of nearly 3.25% on Monday. This surge reflects growing investor confidence and a keen eye on the Federal Reserve’s anticipated monetary policy adjustments.

The post BlackRock Spot Bitcoin ETF AUM Hits $10B Overtaking the iShares Silver Trust appeared first on Cryptonews.

Diversity in crypto is important as it brings a range of perspectives, talents, and experiences to the table, fostering innovation, resilience, and broader adoption. It is no secret that the blockchain and Web3 sector has been historically male-dominated. By including more women in crypto this helps address biases and promote inclusivity, making blockchain technology more accessible and beneficial to a wider range of people and communities.

Here is a list of the most influential women in crypto 2024:

1. Gracy Chen the CEO of Bitget is a well-known figure in the cryptocurrency industry and serves as the Co-founder and Global CEO of Bitget, a leading digital asset trading platform. She is recognized for her contributions to the development and promotion of cryptocurrency trading services. Before joining Bitget, she worked for Phoenix Satellite TV as an anchor and producer on technology and financial channels.  Gracy was also an early investor in BitKeep, Asia’s leading decentralized wallet. In 2015, Gracy was honoured as a Global Shaper by the World Economic Forum. She graduated from the National University of Singapore. In January, Bitget launched a new initiative dubbed the “Blockchain4Her” group which aims to support female-led businesses. Blockchain4Her will launch incubation programs tailored especially for female entrepreneurs. This included a $10 million fund which is being used to support female-led startups in the blockchain industry.
2. Cathie Wood CEO of ARK Invest, once said, “Bitcoin belongs in every portfolio.” She is known for her focus on disruptive innovation. Wood is very much recognized for her bullish outlook on innovative technologies such as artificial intelligence, genomics, blockchain, and autonomous vehicles. Wood is a prominent figure in the investment community and is known for her forward-thinking investment strategies.
3. Elizabeth Stark, co-founder of Lightning Labs, where she is building a programmable financial layer for the internet with fast, scalable Bitcoin transactions. Stark previously taught at Stanford and Yale University about the internet’s impact on society, the economy, and the law, and was a visiting fellow at Yale’s Information Society Project. She has worked with startups in areas ranging from decentralized technology to AI and was an entrepreneur-in-residence at Stanford StartX. Stark holds a J.D. from Harvard Law School.
4. Kathleen Breitman is one of the co-founders of Tezos, a blockchain platform that raised one of the largest initial coin offerings (ICOs) in history. Alongside her husband Arthur Breitman, she has played a key role in the creation and development of Tezos. Kathleen has been involved in various aspects of the project, including its vision, governance, and community engagement. Tezos aims to offer a decentralized blockchain that can evolve through on-chain governance mechanisms. Breitman has since stepped back from the project and is no longer involved.
5. Amber Baldet the co-founder and CEO of Clovyr, a company focused on building decentralized applications and tools to make blockchain technology more accessible to businesses. Before founding Clovyr, Baldet was a prominent figure at J.P. Morgan Chase, where she led the development of Quorum, an enterprise-focused blockchain platform. She is widely recognized for her expertise in blockchain technology, cybersecurity, and fintech innovation.
6. Joyce Kim the co-founder and former Executive Director of the Stellar Development Foundation (SDF), an organization focused on developing the Stellar blockchain network. She played a significant role in the early stages of Stellar’s development and helped shape its vision for financial inclusion and interoperability. Before her work with Stellar, Kim was involved in various ventures in the technology and finance sectors. She is recognized for her contributions to the cryptocurrency and blockchain industry, particularly in promoting financial access and inclusion through innovative technologies.
7. Blythe Masters is another prominent figure in the financial industry, known for her work in derivatives and blockchain technology. She is the former CEO of Digital Asset Holdings, a company focused on developing distributed ledger technology solutions for financial institutions. Masters previously held high-ranking positions at J.P. Morgan Chase, where she played a key role in the development of credit derivatives in the 1990s. She is widely recognized for her expertise in financial markets and her advocacy for the adoption of blockchain technology in the finance industry.
8. Perianne Boring is the founder and former president of the Chamber of Digital Commerce, a leading trade association representing the blockchain industry. She is known for her advocacy work in promoting the adoption of blockchain technology and fostering a supportive regulatory environment for digital assets. Boring has been a vocal advocate for blockchain technology’s potential to transform various sectors, including finance, healthcare, and supply chain management. She is recognized as a prominent figure in the cryptocurrency and blockchain community.
9. Caitlin Long is a financial industry veteran and blockchain advocate known for her work in promoting blockchain technology and cryptocurrencies. She is the founder and CEO of Avanti Bank and Trust, a Wyoming-based bank focused on providing services for digital assets and blockchain-based financial products. Long has a background in traditional finance, having worked on Wall Street for over two decades, including roles at Morgan Stanley and Credit Suisse. She is recognized for her expertise in financial markets and her efforts to create a regulatory-friendly environment for blockchain innovation, particularly in Wyoming.
10. Last but not least, Kavita Gupta the Founder and Managing Partner of Delta Blockchain Fund, an investment fund focused on blockchain technology and cryptocurrencies. She is well known for her extensive experience in the finance and investment industry, with previous roles at organizations like the World Bank, where she worked on investment projects in emerging markets. Gupta is recognized for her contributions to the blockchain and cryptocurrency space, particularly in promoting investment and innovation in the sector. She has also been involved in various initiatives aimed at fostering diversity and inclusion in the technology and finance industries.

The post Who Run The World? Girls! Top Ten Most Influential Women in Crypto appeared first on Cryptonews.

After two years of hardship, crypto entrepreneurs are now seeing a potential shift in fortunes, with Bitcoin’s surge of over 30% in the past month reigniting interest in funding opportunities within the industry.

While still low compared to previous highs, VC investment in crypto startups edged up in Q4 2023, suggesting renewed interest in the sector, PitchBook data published this week showed.

Crypto Projects Score Big as VCs Pour Millions into Funding Initiatives

The funding figures are remarkable. VC giant Andreessen Horowitz announced this week that it injected $100m into crypto restaking startup EigenLayer. Additionally, Hack VC disclosed raising a $150m fund dedicated to supporting projects focused on decentralizing the internet.

Phillip Shoemaker, executive director of decentralized ID verification startup Identity.com, said he wishes VCs would be more cautious about investing in digital assets. But he doesn’t see any signs of that happening.

“It’s more a [Fear of Missing Out] thing, and this is standard for VCs,” he told Cryptonews. “There’s just so much VC money out there and they are going to continue to throw money around to see if something sticks. I don’t see any difference now when compared to previous cycles.”

1. Dream Big, Think New

One of the best ways for a startup to stand out is to present something new that the industry needs, said David Kemmerer, CEO of crypto tax software firm CoinLedger.

In his experience, one effective method to make an impact is to approach crypto from a more inclusive standpoint as “it can be an industry many people find confusing.”

Kemmerer believes startups that offer informative and inclusive approaches might attract more investments because they can be more profitable by appealing to a broader audience.

2. Fusing Passion with Potential

Brian Evans, CEO of Web3 advisory firm BDE Ventures, attributed the growing momentum in the VC space to a combination of factors, including a broader tech rebound and the crypto market moving past scandals like FTX’s collapse.

According to Evans, the ability to address real-world problems is crucial for a startup seeking funding. He noted that many VCs have become more cautious following the boom and subsequent bust of numerous projects in the digital asset realm over the past few years.

“We’re clearly rising again now, but VC capital is much more careful about where they invest,” he said. “There are so many aspects to the digital asset space that are growing fast, including DeFi, gaming, DePIN and other sectors. But it’s critical that VCs look at a project’s value proposition.”

Key checklist items for a startup looking for funding include: the need to check if the project tackles a real issue, assess the founders’ dedication, and see if their backgrounds match the project’s needs, Evans said.

3. Focused Target Market

Anthony Georgiades, general partner at Innovating Capital, suggests pinpointing a specific target market for a use case. He also highlighted the need for good technology.

As the digital asset space continues to grow, the industry will see a lot of VCs coming into the market with little experience in the industry, he said. So there is a risk of VC FOMO happening again, as it happened during the last cycle.

Projects with a clear value proposition and a defined target market, or those solving problems for real people, will stand out in the long run, Georgiades said.

4. Turning Connections into Catalysts

Don’t underestimate the power of your network. People genuinely want to offer support when they can.

Getting introduced to investors through mutual connections is often more effective than reaching out to them directly without any prior connections, according to Maksym Repa, an analyst at crypto-native fund Symbolic Capital.

“It’s about making those personal connections that can really open doors for your startup,” he said.

Repa suggested crafting a pitch that’s a one-two punch: clear and captivating. Imagine it as your elevator ride with an investor – you have seconds to hook them. Focus on the core value and leave them wanting more.

5. Put Trust Into Practice

Following a series of bankruptcies that impacted the crypto industry in 2022, it’s evident that VCs will prioritize transparency and honesty regarding internal operations.

Ramy Bekhiet, senior advisor at PDX Global, said crypto startups must be transparent and undergo thorough due diligence for Web3 venture capitalists to regain confidence in the market.

The post 5 Expert Tips for Crypto Startups Seeking Funding in Today’s Market appeared first on Cryptonews.

Additionally, Finland has a stable political and economic environment, which can be beneficial for long-term investments like crypto mining operations. However, factors such as electricity costs, regulatory environment, and infrastructure availability should also be considered and taken into consideration.

Miners in Finland see the country as an attractive location due to the unique situation of near-zero energy costs during periods of overproduction has attracted the bitcoin mining industry to the Nordic region, Lennu Keinänen co-founder of Once Mining, a crypto mining firm based in Finland told Cryptonews.com.

Finland remains Europe’s most unexplored Bitcoin mining frontier in Scandinavia although over the years its Nordic neighbours Norway, and Sweden have been seen as more desirable locations. Many crypto miners headed to the region to seek refuge from rising electricity prices in 2022.

Finland Offers Near-Zero Energy Costs  

In 2023, electricity prices in Finland fell below zero due to surging hydropower, nuclear energy, solar, and wind. That year the Nordic nation witnessed its first monthly power surplus in almost 20 years. Analysts forecast that 25 TWh of renewable energy will be built in Finland by 2030, which will push down prices further, according to a report by European energy markets newswire Montel News.

Low energy prices are crucial for crypto miners because mining cryptocurrencies requires a significant amount of electricity. The lower the cost of electricity, the higher the profit margins for miners, as it reduces the operational expenses associated with running mining hardware. Since energy costs can heavily impact the profitability of mining operations, miners often seek locations with access to cheap electricity to maximize their returns.

“The unique situation of near-zero energy costs during periods of overproduction has attracted the bitcoin mining industry to Finland. Bitcoin mining requires substantial amounts of electricity, and the ability to operate at lower costs significantly enhances profitability,” said Keinänen.

Government Subsidies and Wind Energy

The Finnish government has been providing substantial subsidies for wind energy, aiming to boost renewable energy production and reduce carbon emissions, explains Keinänen.

While well-intentioned, these subsidies have led to a rapid expansion of wind energy capacity. This in turn has had an impact on energy production resulting in a significant increase in fluctuating energy production.

“Wind energy, by nature, is variable and depends on wind conditions. As a result, when wind conditions are favourable, there’s an overproduction of energy, leading to instances where the price of electricity can drop below zero, reaching as low as -0.3€/kWh. Conversely, during periods of low wind, underproduction can occur, causing electricity prices to spike, at times reaching up to 2€/kWh,” said Keinänen.

Finnish Tax Administration

The Finnish Tax Administration has made it clear that crypto is subject to tax. Miners have to pay tax on capital gains from disposing of cryptocurrency by selling, trading, or spending it, as well as Income Tax on any income earned from activities such as crypto mining.

“The mining industry is still in the infancy here but about to become quite significant in the next few years,” explains Keinänen.

He goes on to explain that there is huge interest in opening mining sites and there’s a continuous buzz of site scouting activities going on in Finland.

“Bitcoin mining cost efficiency is primarily determined by the price of electricity, as mining consumes significant amounts of power. Lower electricity costs increase profitability, as the expense of running mining hardware is reduced. Therefore, locations with cheap electricity are more cost-efficient for Bitcoin mining. Mining is not tax-free but can be organized quite tax efficiently,” adds Keinänen.

The post Why Finland Could be Europe’s Next Crypto Mining Giant appeared first on Cryptonews.

In December, Indonesia’s Mayor Gibran Rakabuming Raka, a vice presidential candidate in Indonesia’s election, said he aims to accelerate Indonesia’s position as a leader in the digital revolution by cultivating expertise in blockchain and cryptocurrencies.

Rakabuming Raka is the son of President Joko Widodo, speaking during an event on December 10 last year, the young mayor said: “We are preparing blockchain experts, we are preparing cybersecurity experts, we are preparing crypto experts,”

But it seems the Joko Widodo era is now coming to an end, as Prabowo Subianto gains favour in the Indonesian elections on Wednesday. During press time Subianto was leading in the polls.

What Does This Mean for Crypto?

Indonesia, the world’s biggest Muslim-majority country, has banned the use of cryptocurrencies as a means of payment. However, the country does allow investment in digital assets.

“Indonesia’s position in the global cryptocurrency landscape, securing the 7th spot in Chainalysis’s crypto adoption rankings, is a testament to the region’s strong inclination towards digital currencies, despite its fluctuating political climate,” said Sung Min Cho, CEO and co-founder of Beoble, a Web3 messaging platform based in Asia, told Cryptonews. He further explained:

“This achievement is part of a broader trend in Asia, which is marked by high rates of blockchain technology adoption, underscoring the region’s significant role in the global arena.”

Whoever Wins Indonesians Remain Enthusiastic for Crypto 

Min Cho goes on to explain that what stands out is the clear enthusiasm for cryptocurrencies among Indonesians, with over 14 million actively trading, surpassing traditional stock traders.

“This not only speaks to the country’s digital literacy and entrepreneurial spirit but also highlights the effort to bring financial services to the unbanked population. Even with regulatory uncertainties, this trend reflects a broader movement in Asia towards embracing decentralized financial systems, showing that neither businesses nor individuals in Indonesia have been deterred from exploring the potential of digital currencies,” said Min Cho.

Indonesia Sees Sharp Decline in Crypto Tax Revenue

In January, the Indonesian government reported a significant decline in crypto tax revenue for 2023, amounting to $31.7 million (Indonesian Rupiah 467.27 billion), according to a report by local news outlet Kontant.

The fall marks a sharp 63% drop compared to the partial collection period in 2022 when the crypto tax regime was introduced. This is one of several new taxes on the “digital economy” introduced in 2022 as part of an Indonesian tax reform. The government has stated that it expects the tax reform will “improve tax collection,” and ultimately lead to a “healthy and fair taxation system.”

The post How Indonesia’s Election Outcome Will Impact Crypto appeared first on Cryptonews.

He further told us how these fraudsters sell real challenger banks’ accounts on the dark web, how Wirex finds them, and what a solution to this issue may be.

Matveev also briefly touched on the incoming bull market and Wirex’s plans for this year.

This is what he told us.

What’s a Money Mule in Crypto?

Money mules are a widespread issue in FinTech and banking. And Matveev told Cryptonews that this problem overlaps with crypto.

Money mules are usually young people, typically between 18 and 22. They have valid documents, including an ID and proof of residence.

Criminals who aim to commit money laundering hire these young individuals to commit fraud and/or cycle money through accounts open in FinTech companies.

Most of the time, money mules know what they’re doing. But they do it anyway:

“maybe because they’re young, or maybe because they need money, or maybe because they just don’t understand consequences.”

It rarely happens that they are unknowingly pulled into criminal activities, becoming victims themselves.

That said, challenger banks, such as Revolut, N26, and Wise, remain their main targets. However, Matveev said,

“We have reached a point in the industry where a lot of FinTech companies have crypto, in one form or another.”

Therefore, it’s unsurprising that money mules have made their way into this novel industry as well.

However, money mules can’t ‘do their business’ in crypto alone: there is always a connection with fiat. They need to exchange it at some point.

That said, Wirex’s CEO argued that this problem doesn’t get much attention in crypto.

“The crypto industry doesn’t really care much about money mules at this point of time [though] it’s an urgent issue in FinTech.”

Since Wirex is both a challenger bank and a crypto business, money mules are a pressing issue.

Scammers Sell Real Accounts on the Dark Web

Nobody knows how many money mules there are out there.

The major problem is that they are real people with real IDs. They provide all the necessary documentation and pass all the checks.

“That’s why it’s very difficult to catch them. They look like real customers with real intentions. So that’s one of the challenges for the industry.”

Wirex, on its side, employed several tools to research the dark web. This is where real accounts are offered for sale.

Wirex found accounts made with them, as well as with Revolut, Crypto.com, Coinbase, and others. They all have a high number of ads selling new accounts published on the dark web.

Therefore, scanning the dark web for Wirex mentions is one of the tools the company employs.

The team also conducted a few tests: they contacted sellers to buy accounts. This enabled them to examine the account, its origin, the user’s country, time of registration, and other details. These details allow them to look for similar risky accounts and patterns.

Meanwhile, users in the 18-22 age group are considered risky customers that require more checks.

Moreover, the company does transaction monitoring.

One Money Mule = Multiple Accounts on Multiple Platforms

Money mule movements are interconnected. They jump between different accounts on different platforms. This means that one person can create several accounts to be misused.

This is not one company’s problem but an industry-wide issue. Therefore, Meteev said,

“We, as an industry, need to fight money mules collectively.”

There is no way to control or censor the dark web, but it’s necessary to raise awareness about money mules and continue developing multiple tools to monitor the dark web activity.

Furthermore, tests are necessary to understand where these accounts are coming from.

Subsequently, companies should share the data they gather to prevent the same people from creating multiple accounts across multiple platforms.

It’s impossible to eliminate FinTech money mules completely, but “it will be good to develop an industry-wide approach and a framework.”

Response to COCA MPC Wallet & Card is ‘Very Positive’

In January this year, Wirex partnered with COCA to launch a Multi-Party Computation (MPC) wallet and a non-custodial debit card.

The product has a zero-fee policy. Asked how that approach is profitable, Wirex’s CEO said that COCA is a relatively young company and is currently focused on user growth rather than margin.

He opined that,

“At some point, they will probably find a way to monetize the client base, either through membership or maybe through selling additional services or something like that.”

It has been a month since the wallet and card were announced, and per Matveev, the response has been “very, very good” and “very positive.”

He stressed that the application is designed for non-crypto-native audiences and the mass market.

The main value proposition is that users control their money without counterparty risk.

“If something happens with your card, it gets lost, stolen, VISA or the card issuer disappears, you still own your money. You still control your money.”

Additionally, the wallet allows users to interact with dapps, trade on DEXes, buy NFTs, spend funds, and more.

Given that crypto still needs to be converted to fiat to be spent, the combination of wallet and card is attractive to the mass market.

Matveev told us that the integrated IBAN feature will be available by the end of the first quarter. It will enable FinTech users to conduct Euro transactions and access banking services.

Entering the Bull Market

Matveev noted that the recently approved spot Bitcoin exchange-traded funds (ETFs) were “a bit overhyped” and were already priced in. However, in the mid-to-long run, they will be “a great gateway for institutional money.” Ethereum ETFs will be the next big milestone.

Moreover, Matveev explained that we are entering another crypto bull market. Every four years, crypto sees a new cycle, “almost like the Olympics.”

We are seeing many altcoins’ prices increasing, and “it’s just the beginning.” Per Wirex’s CEO,

“That’s the best, the most exciting time in the industry.”

Wirex has “a lot of things” in the pipeline for this year. In terms of a product set, he said, the company is working on Wirex Business. Currently, the product is similar to a challenger bank for retail customers. But the company plans to expand the product set to businesses, including crypto companies, offering them access to Wirex’s banking and card infrastructure, as well as cryptocurrencies.

Any enterprise will be able to open an account on Wirex Business where they can issue cards for employees or subcontractors. The banking infrastructure and cards can be used to pay bills, invoices, and other expenses.

The post Wirex CEO Says Money Mules Are a Massive Issue in FinTech and Crypto appeared first on Cryptonews.

MiCA’s primary goal will be to establish a unified rulebook for regulating crypto-asset markets. The ‘implementation phase’ of MiCA is from entry – June 2023 when the rules first came into force –  until the date of full application in December 2024.

In January, the European Securities and Markets Authority (ESMA), the top regulator of the European Union’s financial markets, opened a feedback window on guidelines under MiCA regulation.

Industry Feedback on MiCA 

The MiCA regulation requires fiat-backed stablecoins to be backed by a liquid reserve that has a 1:1 ratio. In response to this many industry players are keen to stress that the rules have the potential to impact the crypto market within the EU positively.

Increasing confidence among investors in the stability and reliability of stablecoin offerings. “MiCA regulations have introduced a comprehensive framework for regulating stablecoins, bringing them under the purview of EU financial laws. This has led to increased regulatory oversight and scrutiny of stablecoin issuers and operations,” James Wo, Founder and CEO of investment firm DFG, who previously worked at Ethereum Classic Labs as a Founder and Chairman, told Cryptonews.

The MiCA regulations aim to promote market stability, limit contagion risks and improve investor protection by imposing stringent requirements on stablecoin issuers, such as capital requirements, transparency standards, and consumer safeguards.

MiCA Raises the Barrier to Entry 

Wo goes on to explain that with MiCA regulations being implemented this in turn has raised the barrier to entry for new stablecoin issuers, leading to market consolidation as smaller players may struggle to comply with the regulatory requirements, resulting in the dominance of larger and more established stablecoin issuers in the market.

“The implementation of MiCA regulations in the EU has also had implications beyond its borders, as stablecoin issuers operating in other jurisdictions may need to comply with similar regulatory standards to access the EU market. This has prompted stablecoin issuers worldwide to reassess their compliance strategies and adapt to the evolving regulatory landscape,” explains Wo.

MiCA’s Compliance Requirements Hinder Innovation 

Being forced to comply with MiCA requirements could hurt small start-ups especially due to the strict regulations which makes seeking legal expertise costly.

“The MiCA regulations do also have their downsides, notably with the potentially negative impact they can have on innovation and competition. Its strict and complex compliance requirements effectively create higher barriers of entry for small and innovative players—likely severely limiting market density and stifling diversity in the stablecoin market,” said Eitan Katz, CEO and co-founder of Kima, a decentralized money transfer protocol.

Risk of Market Fragmentation

Katz goes on to add, that given its location-specific application of the EU, MiCA can further market fragmentation.

“This would inevitably lead to multiple incongruent and disjointed stablecoin regulations across different jurisdictions, causing massive damage to stablecoin adoption and undoubtedly complicating the global landscape,” said Katz.

MiCA regulations around stablecoins aim to avoid another fiasco reminiscent of the TerraUSD’s crash, this move looks to foster greater trust in stablecoins thereby attracting users and encouraging wider adoption.

“MiCA also introduces heightened transparency and oversight measures through its mandatory audits and issuer reporting. This effectively mitigates risks, safeguarding and combating against potential misuse of stablecoins,” adds Katz.

By establishing a comprehensive legal framework for stablecoin issuance and activity within the EU, MiCA regulations provide much-needed—and otherwise noticeably lacking—legal clarity.

One Rule Fits All?

It seems the EU is leading on the regulatory front. Regulation of digital assets is still very new and varies greatly from jurisdiction to jurisdiction.

“The EU has taken the lead when it comes to forward-looking crypto regulations—the union’s approach to regulation through MiCA has prioritized and balanced innovation with financial stability and investor protections,” said Lior Lamesh, CEO and co-founder of GK8, a Galaxy company.

Lamesh explains as the cryptocurrency industry continues to evolve and mature, however, the rules remain highly fragmented. It is worth noting that MiCA hasn’t introduced entirely new information when it comes to stablecoins but reassures that stablecoins must be regulated as electronic money institutions (EMIs).

MiCA’s impact, along with other regulatory bodies, is huge when it comes to digital asset custody.

“Financial institutions should be looking for a governance and policy engine that can craft complex policies aligned with diverse regulatory frameworks such as BaFin, ADGM, Finma, OCC, MiCA, and more,” adds Lamesh.

One thing is for sure the European Union is taking the lead when it comes to introducing regulation around digital assets. This will make Europe the first region in the world to introduce comprehensive guidelines which will be followed by all 27 European countries.

The post Why Europe’s MiCA Raises the Barrier to Entry for Stablecoin Issuers appeared first on Cryptonews.

Tokenizing traditional assets has caught the attention of legacy financial institutions. To put things into perspective when it comes to tokenization, there are several investment banks involved in tokenization, primarily in the context of digital assets and payment systems. JPMorgan has been actively exploring blockchain technology and tokenization through initiatives.

“2023 saw several debt tokenization initiatives, including Goldman Sachs Digital Asset Platform and HSBC’s introduction of the Orion platform,” explains Ralf Kubli, board member of the Casper Association.

Goldman Sachs has been involved in various blockchain and digital asset initiatives, including participating in tokenized securities offerings. HSBC has been exploring blockchain technology for several use cases such as trade finance and digital identity, which could involve tokenization.

Citigroup has dabbled in blockchain technology and tokenization for various financial products and services, including cross-border payments and trade finance. DBS Bank has explored tokenization in areas such as trade finance and securities trading.

In October 2023, Sygnum Bank, partnered with Float and Fasanara Capital, to release a new tokenized private debt instrument, giving access to private debt. The token was launched by Float on the Polygon blockchain. Tokenization for private markets and particularly interest in private debt has seen increased interest.

Why the Lack of Interest in Debt Tokenization?

Tokenization in the lending space whether this involves debt, derivatives, and structured products is still in early exploratory stages. When addressing delivery versus payment, banks have discovered tokenization increased efficiency in the payment, settlement, and the cash component of transactions, explains Kubli.

“Bank’s operations teams have found that if the delivery side is not clearly defined, the amount of cost and effort to complete a transaction is still the same, or even greater when factoring in the new tokenization platforms involved in the process. These limitations account for the lack of interest in debt tokenization,” said Kubli.

Understanding Debt, Derivatives, Structured Products

Debt tokenization involves converting traditional debt instruments, such as bonds or loans, into digital tokens. These tokens can then be traded or transferred on blockchain-based platforms, providing benefits such as increased liquidity, reduced settlement times, and enhanced transparency in the debt market.

Derivatives tokenization involves representing derivative contracts, such as options, futures, or swaps, as digital tokens on a blockchain. By tokenizing derivatives, parties can trade these financial instruments more efficiently, automate aspects of contract execution and settlement, and improve transparency and auditability in derivative markets.

Structured product tokenization involves digitizing complex financial instruments that package multiple underlying assets or financial products into a single investment vehicle. These structured products can include asset-backed securities, collateralized debt obligations, or structured notes. Tokenizing structured products can streamline issuance, enhance accessibility to a broader investor base, and improve the transparency and traceability of underlying assets.

For there to be interest in the tokenization of debt products what is needed is not a secondary market, but instead both the mechanics of price discovery of these financial assets living on blockchain infrastructure and also greater efficiencies in the post-trade processes, explains Kubli.

“The most important aspect of a tokenized financial asset representing debt, structured instruments and derivatives is the definition of the cash flows. Everything of interest in finance is derived from cash flows,” said Kubli.

Lack of Clarity  

Kubli stresses more clarity is needed.

The tokenization of debt has faced several challenges that have hindered its widespread adoption and growth. This includes regulatory complexity and the lack of standardization. This in turn impacts issuer confidence. Then there are a number of infrastructure challenges.

Building robust infrastructure for debt tokenization, including secure custody solutions, trading platforms, and settlement systems, requires significant investment and technological expertise.

“In other words, the payment obligations of the parties to the underlying financial contract must be clearly defined and standardized before tokenization of the financial asset occurs. Without such definitions, only dumb or incomplete tokens will be created. These tokens must contain machine readable and machine executable term sheets of the financial terms to change the game,” said Kubli.

Tokenization Debate at Davos 2024 

During the World Economic Forum (WEF) held in Davos-Klosters between 14-19 January 2024, there was a discussion on tokenization and how it introduces a new ownership dynamic that is hosted on a blockchain with the potential to impact multiple sectors of the economy. Due to lack of regulatory clarity in the sector defining where tokenization sits in the finance sector remains ambiguous

Wall Street and Tokenization 

There has been a strong push among Wall Street firms to ramp up their efforts to tokenize assets on the blockchain, as reported by Benzinga. Tokenization is when tangible as well as intangible assets are converted into digital tokens — everything from shares, and bonds to gold bullions, real estate as well as digital and physical art.

In March 2023, BlackRock CEO Larry Fink also commented in his annual letter to shareholders that there is operational potential of some of the underlying technologies in the digital assets space which could have exciting applications. The tokenization of asset classes “offers the prospect of driving efficiencies in capital markets, shortening value chains, and improving cost and access for investors,” he said.

Factors Contributing to the Growth of Tokenization

There is increased adoption of blockchain technology as the sector matures and gains wider acceptance across industries, more companies and financial institutions are likely to explore tokenization as a means of digitizing assets and improving efficiency in various processes.

Regulatory clarity and frameworks around tokenization are expected to evolve, providing more certainty for businesses and investors interested in tokenizing assets. Clearer regulations can spur adoption and investment in tokenization initiatives.

Then there is the demand for liquidity and accessibility. Tokenization offers benefits such as increased liquidity, fractional ownership, and access to a global investor base. As traditional asset classes become tokenized, demand for these benefits is expected to drive growth in the tokenization market.

There is no doubt that tokenization has the potential to disrupt traditional markets and business models by allowing fractional ownership, improving liquidity, reducing intermediaries, and streamlining processes. This disruptive potential has attracted attention from investors, entrepreneurs, and innovators seeking to capitalize on new opportunities.

The post Will the Tokenization of Debt Trend Gain Momentum in 2024? appeared first on Cryptonews.

The SEC has already delayed decisions on applications from Grayscale and BlackRock. Meanwhile, Fidelity’s proposal, submitted in November, faces a crucial March deadline.

But, what are the chances of these products being approved soon? And does the approval of Bitcoin spot ETFs set a precedent for their potential approval?

Spot Ether ETFs Could Face Challenges Similar to Bitcoin ETFs

Gaining approval for Bitcoin ETFs was a lengthy and legally complex process. Brian Evans, CEO of BDE Ventures, suspects something similar will happen when it comes to the proposed Ether ETFs.

“There will be long, possibly drawn-out discussions over such issues as cash or in-kind redemptions as well as surveillance-sharing agreements,” he told Cryptonews.

“These were some of the issues with the BTC ETFs that had to be sorted out, and I suspect that something similar will play out with Ethereum.” He believes it’s highly likely that they will eventually receive approval.

Impact of Ethereum’s Classification on ETF Approval

Ethereum currently exists in a regulatory ambiguity. But Rostin Behnam, Chair of the Commodity Futures Trading Commission (CFTC), previously said it should be regulated as a commodity.

Clear definitions for decentralization from regulators like the CFTC will play a crucial role in the potential approval of a spot ETH ETF.

“End users of the ETF need clarity on who controls Ethereum if it really is a commodity. Ideally is ‘nobody’ like BTC,” said Pontem co-founder Alejo Pinto.

“The question I would ask if it’s a security: who controls it? Who is responsible for reporting requirements of ETH? I doubt Vitalik would do it,” he added.

Meanwhile, if ether is categorized as a security, this could significantly complicate matters.

Ethereum enables users to use their Ether (ETH) tokens as collateral to support the network and engage in transaction validation. Under its proof-of-stake system, validators lock tokens to secure the blockchain and earn interest-like returns.

Consequently, certain regulators perceive this model as resembling an investment contract. This, by definition, could subject the asset to US securities laws.

What if ETH is a Security?

SEC Chair Gary Gensler has previously suggested that cryptocurrencies offering token staking might be considered securities.

Helika CEO Anton Umnov noted that such a classification would lead to greater SEC oversight and a focus on crypto market maturity.

Cryptosmart CEO Alessandro Frizzoni agreed, saying the possibility of Ethereum being labeled a security poses a hurdle to the ETF’s approval.

“It threatens the survival of the Ethereum project itself and could therefore put the Ethereum ecosystem under great uncertainty. I think Ethereum is decentralized enough to not be classified as a security and therefore the Spot Ethereum ETF will ultimately be approved,” Frizzoni said.

Furthermore, if Ethereum is categorized as a security, it would restrict the involvement of infrastructure partners and custodians in overseeing the ETF.

Custody Challenges

Conversely, if Ether is not classified as a security, it could potentially follow a less strict regulatory route. It would still be required to address significant concerns related to investor protection and the integrity of the market, according to Web3 security firm HashEx CEO Dmitry Mishunin.

Mishunin pointed out that the market shouldn’t anticipate a substantial price spike after the approval of such an ETF.

“The market has a way of pricing in such developments well before they officially occur, meaning that by the time of approval, the event’s potential impact on Ethereum’s price might already be reflected in its current valuation,” he said.

Industry insiders also say the ETF issuers need to accurately track Ethereum’s price and securely handle custody of the underlying assets. BlackRock getting in on it makes an approval seem more likely, but regulators will still need more clarity.

Spot Ether ETF Approval Timeline

Deutsche Bank expects the first such ETF to be approved by May 23. Meanwhile, TD Cowen expects approval to drag on to 2025 or 2026.

Other crypto executives have mixed opinions, indicating that the outcome primarily hinges on political variables.

COZ CEO Tyler Adams is skeptical it will happen this year, pointing to regulators’ cautious approach when dealing with emerging technologies.

“I think that Ethereum is a pretty large, fundamental leap from Bitcoin due to its underlying model. Ethereum has an infinite supply and its technological volatility renders the discussion increasingly complex – the same does not exist for Bitcoin,” he said.

LayerTwo Labs co-founder Austin Alexander believes that approval may come to fruition in the next year or two.

“Even with a change at the SEC, perhaps with a Trump presidential victory, it’s still unclear to me that new leadership would speed things up in this regard,” he said.

Meanwhile, Phillip Shoemaker, executive director of decentralized identity firm Identity.com is double the spot ETH ETF will ever materialize.

“Look how long it took the BTC ETFs to get approved, after all. If anything, I suspect that the SEC might soon go after the Ethereum blockchain and associated tokens,” he said.

“All this said, I do hope it happens. It would help further mainstream the space.”

The post What Influences Spot Ether ETF Approval? appeared first on Cryptonews.

A new report from TenSquared Capital highlights the ways AI can enhance speed and efficiency in the Web3 arena.

Essentially, AI joining forces with Web3 has the potential to tackle tough global issues. It can also automate essential tasks, boost data-driven choices, and amp up trust and transparency for users.

The growth equity firm’s research team explored specific areas where AI can be applied to make Web3 more structured.

AI’s Power in Cross-Language Coding

AI, particularly tools like ChatGPT and Github Co-Pilot, can significantly influence the crypto industry by simplifying code writing.

These AI tools empower developers to work on various blockchains, even if they are not well-versed in a specific programming language.

For instance, if a developer is proficient in Solidity but needs to code in Rust for Cosmos, they can rely on ChatGPT/Co-Pilot to assist in the translation process, TenSquared’s report said.

“AI code-writing tools lower the barrier to entry in blockchain and allow developers to write much more quickly,” they stated.

AI not only speeds up code writing — it can also enhance blockchain infrastructure.

The tech can create smart contracts and consensus protocols that make real-time decisions using on-chain data. Furthermore, it can improve Web3 security through AI-based detection systems, ensuring more accurate and efficient smart contract decisions.

A few startups have already embraced this. For example, Oraichain employs AI-powered APIs to establish the groundwork for intelligent smart contracts and advanced decentralized applications (DApps).

Additionally, DApps can use on-chain AI for data analysis and automation.

Experts predict AI agents will use crypto for most payments, as large language models (LLMs) can handle transactions via crypto wallets and interact with smart contracts and DeFi protocols effectively.

Boosting Web3 Security

Researchers and startups are already diving into AI-based consensus methods, which are key for keeping blockchains safe and scalable.

Take Velas, for example, which is developing an AI Delegated Proof-of-Stake system.

Meanwhile, Inery is working on a way to validate blocks more efficiently based on uptime.

AI also plays a role in beefing up Web3 security, helping to fend off cyberattacks and shore up blockchain defenses. It’s a big deal because security is a major roadblock for users getting into crypto.

Just in January, Web3 took a $127m hit from hackers across 19 different incidents. And last year, cyber fraud groups made off with over $1b from the crypto industry, according to Chainalysis.

AI in Credit Scoring

AI can reshape decentralized finance (DeFi) by using historical lending data to create credit scores and improve loan decisions. For instance, Spectral’s MACRO Score is an on-chain credit score powered by advanced machine learning for DeFi lending.

Through trading bots and predictive analytics, AI can enable traders to enhance their decision-making and profit from market trends. Platforms like 3Commas offer crypto trading bots for automated strategies.

Interactive Gaming

Generative AI can personalize gaming stories and characters. For example, Inworld AI creates AI NPCs, making games like WebKinz more immersive. ASM, part of Futureverse, develops a platform for user interaction with AI Agents in gaming worlds.

AI can also enhance NFT platforms and Web3 social networks by delivering personalized content and relevant product recommendations to users.

However, Ethereum co-founder Vitalik Buterin recently warned that the toughest challenge in crypto and AI integration is creating a single, decentralized AI trusted by other applications.

The post Here’s How Useful AI Can Be for Web3 Applications appeared first on Cryptonews.

The expert further shared interesting insights into major themes that will define 2024, non-fungible token (NFT) use cases leading to increased interest, the US SEC Chair’s disinterest in the crypto industry’s opinion, and more.

Read on to learn what he told us.

Investors are Enthusiastic, But Cautious

Investor sentiment in the cryptocurrency space is not easy to predict as it’s ever-changing. That said, Stadelmann shared that for most retail investors, enthusiasm is driven by the potential of crypto. At the same time, caution persists due to market volatility and regulatory uncertainties.

When it comes to institutional investors, he said,

“I think the approval of the first spot Bitcoin ETFs in the US has created a wave of optimism and signals growing confidence that crypto will only gain more momentum over the next few years.”

Stadelmann noted that the crypto market’s short-term trends remain tied to macroeconomic factors. These significantly influence investor sentiment.

Speaking of hard-to-predict areas: crypto market’s price trends and news events. However, Stadelmann said there are some possible themes to consider.

As said, the US Securities and Exchanges Commission (SEC) finally approved the first round of spot Bitcoin exchange-traded funds (ETFs) in January. Per the CTO,

“Although the initial hype around this news has since faded, major investments from institutions are only beginning.”

Therefore, throughout February and the rest of 2024, we’ll see more of these large players from TradFi start to enter the crypto space.

Therefore, we’ll soon see to what extent institutional investors and ETFs factor into the market’s price movement.

Finally, it is important to note the anticipation building around the next Bitcoin halving, expected in April.

Halvings typically signal the start of a new bull market cycle for BTC – but also for altcoins. It will be interesting to see, Stadelmann said, if BTC and/or altcoins can reach new all-time highs post-halving.

DeFi Market Poised to Grow Again

Things have significantly changed for DeFi between 2022 and 2024. And the shift goes beyond crypto market prices.

The bear market of 2022 brought numerous challenges to many DeFi projects, Stadelmann said. This includes vulnerabilities, smart contract exploits, and regulatory uncertainties.

And these remain major concerns in 2024.

Also during 2022, DeFi’s total value locked (TVL) went from more than $150 billion to less than $40 billion. However, as of January 2024, TVL has rebounded to $55 billion at the time of writing.

The CTO opined,

“The space appears poised to grow once again.”

Another noteworthy shift since 2022 has been the maturation of Layer 2 (L2) blockchain networks, which has increased scalability and reduced transaction costs. DeFi applications on these networks are now usable from a cost perspective, said the expert.

Also, cross-chain interoperability developments have contributed to a more united DeFi ecosystem.

Major Themes for 2024

We’ve already noted the potential future movements in crypto prices, investment sentiment, and DeFi markets.

But 2024 has much more to offer. Stadelmann listed the year’s major themes. He said these will gain more importance even beyond 2024 as the crypto space matures.

First and foremost, he said, is the interoperability among different blockchain networks.

“As the blockchain space diversifies, the need for users to trade across blockchains will only continue to increase.”

In the CTO’s opinion, more users will turn to peer-to-peer (P2P) bridge solutions, like the one offered by Komodo Wallet.

Next: L2s will continue to grow and witness accelerated adoption. More users are moving into the DeFi space and are using decentralized apps (dapps) more frequently. Hence, it is critical to alleviate Layer 1 congestion and reduce transaction costs by processing a significant portion of transactions off-chain.

Stadelmann said that,

“The ongoing development and adoption of L2 solutions signify a crucial step towards achieving mainstream scalability for blockchain technology.”

Gary Gensler is Not Interested in Crypto Industry’s Opinion

The central theme for 2024, Stadelmann said, is the pursuit of regulatory clarity. And greater certainty will, hopefully, create a catalyst for accelerated market growth.

Governments and regulatory bodies globally are increasingly engaging with the crypto industry.

Speaking of which, Stadelmann recently wrote an open letter to SEC Chair Gary Gensler. Asked if Gensler is interested in hearing the crypto industry’s opinions, Stadelmann replied that he doesn’t think so.

One positive move from Gensler’s administration was the approval of new ETFs. And yet,

“After years of delays, the main factor for approval was likely political pressure from capital-rich institutions.”

Meanwhile, we have seen very little movement to protect investors or make crypto more accessible to investors, he said.

Furthermore, SEC enforcement actions against Ripple, Binance, Coinbase, and Kraken have stunted the potential growth of the crypto industry. And while the agency has clear evidence against FTX and “other industry players that have blatantly hurt investors,” argued Stadelmann, Gensler decided not to focus on these issues.

3⃣Fraudsters continue to exploit the rising popularity of crypto assets to lure retail investors into scams. These investments continue to be replete w/ fraud- bogus coin offerings, Ponzi & pyramid schemes, & outright theft where a project promoter disappears w/ investors’ money.

— Gary Gensler (@GaryGensler) January 8, 2024

NFT Use Cases Wil Result in More Interest

Finally, non-fungible tokens (NFTs), despite discussions of their decline, are here to stay.

Stadelmann said,

“I am optimistic about their future in 2024 and beyond. The NFT market has undergone a major shift in focus, expanding beyond digital art to include gaming, virtual real estate, and metaverse-related assets.”

Industries will continue to adopt NFT technology. Subsequently, use cases will diversify and lead to renewed interest.

“I predict we’ll see NFT become more integrated with real-world assets, which will provide unique experiences that go beyond simple digital ownership,” the CTO opined.

#BitcoinOrdinals Debate: : Innovation or Disruption? Bitcoin Ordinals Have Proven So Controversial It Could Tear the Bitcoin Industry in Two, writes @KomodoPlatform CTO Kadan Stadelmann. Don't miss this! #Bitcoin #BitcoinNFTs #NFTs https://t.co/mhEvCDxnPR

— AlexaBlockchain (@AlexaBlockchain) December 30, 2023

Why Don’t We Have DeFi Simplicity Yet?

It’s been said for years that simplicity and ease of use are the answer to DeFi’s adoption issues. Stadelmann argues that achieving this goal has proven to be a difficult task.

The biggest obstacle is the inherent complexity of DeFi processes involving smart contracts, liquidity pools, and yield farming.

“Balancing user-friendly interfaces with the intricacies of blockchain technology presents a non-stop challenge.”

There are some potential solutions:

• enhance user education through comprehensive tutorials; e.g. users taking the time to learn about the fundamentals of blockchain technology and how to use specific DeFi platforms;
• simplify the DeFi onboarding process for crypto newcomers.

Komodo Wallet, for example, recently added a fiat on-ramp, lowering the barrier to DeFi market participation. Users can directly buy crypto with fiat instead of signing up for a centralized exchange account and learning how to transfer assets on-chain.

Year of the Dragon Brings New Roadmap

Stadelmann couldn’t share any specific Komodo’s plans for 2024, but said that it will focus on enhancing blockchain interoperability to unify the DeFi space.

“We plan to release our 2024 roadmap on Chinese New Year, which falls on February 10, 2024, as it marks the beginning of the Year of the Dragon.”

Meanwhile, in December, the platform added the above-mentioned fiat on-ramp to Komodo Wallet (web) that supports providers Ramp and Banxa, which support bank transfers, Apple Pay, Visa/Mastercard cards, etc.

NFT wallet support is live on Komodo Wallet!

We have integrated ERC721 and ERC1155 token standards.

Supported chains include @ethereum, @BNBCHAIN, @0xPolygonLabs, @avax, and @FantomFDN.#crypto #cryptonews #DeFi #Web3 #NFT $KMD

https://t.co/Xp0MJuQDd6 pic.twitter.com/mKvwHfjYsU

— Komodo (@KomodoPlatform) December 26, 2023

It also implemented the KMD burn program, and it launched an NFT feature on Komodo Wallet, which allows web app users to send, receive, and view the transaction history for their NFTs on Ethereum, Polygon, BNB Chain, Avalanche, and Fantom.

Check out an earlier insightful chat with Stadelmann on the Cryptonews Podcast:

The post Komodo CTO Exclusive: Large TradFi Players Will Be Entering Crypto This Year, DeFi Poised to Grow Once Again appeared first on Cryptonews.

Storm and his co-founder Semenov were arrested in Aug. 2023 for alleged sanctions violations in the US through their crypto mixing service, accused of laundering over $1b.

“My legal team and I are going to put forth a strong defense at trial, not just for my family’s sake, but for the future of software developers and financial privacy,” Storm said in a video posted to X on Monday.

“Folks, I need your help. Whether you’re a passionate developer, involved with Web3, or just care about software and privacy, this legal battle will affect you. So, please help contribute to my legal defense, because this case will set a major precedent for years to come,” he added.

Storm, who holds both US and Russian citizenship, was released on bail shortly after his detention on a $2 million bond secured against his Washington state residence.

Snowden has asked supporters to help, saying: ” Privacy is not a crime.”

If you can help, please help. Privacy is not a crime. https://t.co/R4vauNLRB4

— Edward Snowden (@Snowden) January 23, 2024

Tornado Cash saw an 85% drop in transactions following OFAC sanctions

Storm, together with Semenov and developer Alexey Pertsev, founded Tornado Cash in 2019.

The mixer, still operational as of now, offers users a way to hide their transaction history, effectively protecting their financial privacy from outside observation.

Tornado Cash accomplishes this by masking the trails of transactions, providing a shield against any form of surveillance and tracking.

In 2022, the US Treasury Department’s Office of Foreign Assets Control (OFAC) imposed sanctions on Tornado Cash for alleged exploitation by North Korean hackers in money laundering activities.

These sanctions intended to forbid anyone in the US from engaging with the service, including sending or receiving funds through it.

The indictment claimed that Tornado Cash functioned as a money service business without registration, a requirement under FinCEN regulations.

Post OFAC sanctions, Tornado Cash saw an 85% drop in overall volume, with illicit transactions through the mixer decreasing by about 77%, according to TRM Labs.

Edward Snowden’s advocacy mirrored in Storm’s mission

Snowden’s backing of Roman Storm makes sense, as they both appear to share views on privacy and encryption.

He became known for disclosing National Security Agency (NSA) materials to the media, resulting in major privacy rulings and changes in policies and technologies.

Critics argue that Tornado Cash provides a legitimate tool for users seeking financial privacy, useful for anonymous political donations, or shielding personal finances.

Groups like Coin Center and the Blockchain Association have backed the service’s developers.

The post Edward Snowden Urges Crypto Community to Fund Tornado Cash Pioneer’s Legal Defense appeared first on Cryptonews.

BitGo’s APAC Director Abel Seow told Cryptonews that they are witnessing an increased interest in similar products post spot Bitcoin ETF approval in the United States. He said that they are seeing increased momentum in markets like Hong Kong, and “murmur of interest” in places like South Korea.

Over a dozen fund providers are currently in discussions with Hong Kong’s Securities and Futures Commission (SFC) to formulate a strategy for launching a local Bitcoin spot ETF.

Abel further noted that the surge in crypto ETFs shows that a lot of these regulators around the world have been keeping an eye on what the US are doing and what they will be doing. If the US approves spot Ethereum ETF in May, that could be another monumental moment for everyone involved, he added.

BitGo was earlier selected as custodian for Hashdex’s spot Bitcoin ETF in the United States.

Talking about Hong Kong, Abel noted that they have deep capital markets among the best recognized markets in the region and a very skilled institutional workforce that is plugged into the rest of the world. Launching an ETF or ETF derivatives would be playing to their strengths, he added.

As reported earlier, several asset managers have hinted at launching a spot Bitcoin ETF this year in Hong Kong.

BitGo Eyes Further Expansion into Asia

BiGo recently acquired in-principle approval as a major payment institution. Abel emphasized on the importance of Asian markets for them going forward. He noted:

“We’ve secured our IPA with MAS in Singapore with full approval coming soon. In Korea, we’ve established a partnership with Hana Bank, known as the JP Morgan of Korea. These milestones contribute to BitGo’s global expansion goals, and we are prioritizing the APAC region with new hires”

BitGo raised $100 million in series C funding at a valuation of $1.75 billion valuation in August last year.

Future of Structured Crypto Products

Talking about the future of structured crypto products like spot Bitcoin ETF, Abel said that there could be a world where such products become the norm for private clients to access crypto. He noted:

“I suspect that as momentum builds up in this space, and people get more comfortable, they will see Bitcoin as an asset class no similar to tech stocks. And whether you want to buy options on GameStop or options on Bitcoin, it can be one of the same thing.”

The post Bitcoin ETFs Gain Momentum in Asia Post U.S. Approval appeared first on Cryptonews.

These include how valuable Bitcoin ETF trading volume information really is, what it takes for ETFs to succeed, why TradFi market minutiae are “very foreign” to most crypto market participants, and much more.

This is what he had to say.

When is Trading Volume a Valuable Information?

The spot Bitcoin ETFs’ initial trading volumes suggest that the supporting players in any successful exchange-traded product (ETP) launch are not yet up and running in volume, Hoover told Cryptonews. (Note: ETFs are a subset of ETPs as a broader category.)

Therefore, he said,

“Trading volume is only powerful information if it results in creation of new ETP shares (assets in the Trust that the sponsor can charge a fee on).”

Otherwise, it just shows that the same shares are changing hands repeatedly.

Typically, this means that:

• hedging costs are high because of the poor availability of substitutes for the index/asset being tracked that can be cheaply borrowed;
• there aren’t enough Authorized Participants (APs) onboarded to create or redeem shares, so there’s less urgency to create or redeem shares at lower premiums or discounts; fewer APs mean that arbitrage opportunities may exist in the market longer as there are fewer parties and less capital available to take advantage;
• the equity options market-makers aren’t able to transact in size yet, usually due to high borrowing costs or broker-level restrictions on options trading.

As an investor in the bitcoin markets, said Hoover, he would prefer that the BTC held in an ETP be purchased in the market and belong only to the fund or Trust, instead of being borrowed from another party that keeps a claim on the coins.

Just Because Bitcoin ETFs are Allowed Doesn’t Mean They’ll Succeed

Spot Bitcoin ETFs come with a set of benefits. These include fewer access challenges for investors and a competitor for the poorly-performing futures-based Bitcoin ETFs, Hoover argued.

Over the next few months, the launch issues “will ease a bit.” There will be an opportunity for the market participants – APs, broker-dealers, and options market-makers – to resell ETPs to individual investors, Hoover said.

Long-term, however, while ETPs are “a reasonable solution” to the regulatory ambiguity constraining access for most US investors,

“I believe that the ETP technology (with its additional liquidity sources, price discovery functions, etc.) is a poor solution to digital-asset market access problems.”

Nonetheless, it took nearly three decades for ETFs to become fully regulated in the USA, so Hoover finds it unlikely that “the current suite of products will lose their regulatory reasons to exist any time soon.”

Furthermore, the COO explained that the Bitcoin markets are “understandably very concerned” about several large market participants trading BTC on a continuous market – while the supply and demand are constrained to a single specific point in time five days a week.

Meanwhile, Shane Rodgers, the Chairman and Co-founder of the PDX platform, argued that there aren’t downsides to the Bitcoin ETFs. The only thing is that, in the short term, investors continue to be “overly exposed to the vagaries of unsophisticated small money in the spot retail space.”

On the other hand, said Rodgers,

“[There are] tremendous benefits to the upside in terms of prices and valuations, as well as, especially, increasing mass acceptance and adoption of BTC, and of crypto assets generally.”

Issuing is one thing, but whether an ETP, including the spot Bitcoin ETF, will actually succeed is another. Hoover noted that success depends on several key questions. These include:

• Does the sponsor (BlackRock, Franklin, Fidelity, Bitwise, Grayscale) have enough relationships with APs, market makers, and institutional investors to keep trading in the Bitcoin ETF orderly?
• Are there substitutes for the Bitcoin ETF that could be cheaper, safer, or track the underlying more closely if market conditions change?
• Does the sponsor have relationships with enough brokerage houses to complete due diligence and trade on the platforms (e.g., Merrill Lynch, Morgan Stanley, Edward Jones)?
• Does the sponsor have enough other products or its own capital available to market its brand and support advisors with marketing materials?

Rodgers opined that the only real differentiating factor so far in the approved BTC spot ETFs are the fees.

Additionally, crypto is still a speculative and volatile asset class. “The fact you can participate via an ETF does not mitigate the safety or volatility of the underlying spot asset,” he said.

According to the #Grayscale website, #Grayscale currently holds 566,973 $BTC($23.21B), decreasing ~52,227 $BTC ($2.14B) since the ETF was passed.

And iShares(Blackrock) holds 33,431 $BTC($1.37B), Fidelity holds 24,857 $BTC($1.02B), Bitwise holds 10,152 $BTC($415.6M). pic.twitter.com/fx2Kj3WpSB

— Lookonchain (@lookonchain) January 22, 2024

TradFi Market Details Are Foreign to Crypto Market Participants

Hoover noted that it is essential to understand how demand for “exposure” to Bitcoin through an ETP actually impacts the “flows” or value of assets within that ETP.

He explained that the ETPs have several layers of separation between “demand for Bitcoin by investors” and additional shares.

Importantly,

“These market minutiae are very foreign to most participants in the digital asset markets, and the idea that there are so many layers between market demand for the ETP and demand for the underlying asset can be difficult to connect with the expectations of ‘massive flows’.”

Hoover gave an example of an investor who wants to purchase ETP shares. They place the order with their broker. Then, the order could be filled from any or several sources.

Here are four scenarios, and only one results in ETP seeing additional assets under management (AUM):

• The broker has shares in inventory or an order from another customer in the opposite direction, in which case the ETP sees no additional AUM as a result of the investment.
• The broker doesn’t have the shares available, but they can borrow in the shares. This happens under the assumption that they will have an offsetting order in the next two business days, which is standard settlement for the shares. The ETP again sees no additional AUM.
• The broker buys the shares in the market from another broker. The ETP sees no additional AUM.
• If there is demand for the shares not satisfied by the existing order book (buyers and sellers) and still not satisfied when considering the cost of borrowing the ETP shares from long-term holders such as index or pension funds, an AP may approach the ETP to create a new “basket” (generally, around $1 million worth) of new ETP shares. In this case, the ETP finally gets to see (and charge fees on) the investor’s capital.

All this said, there are reasons for hedgers not to choose the new Bitcoin ETF. “Orderly trading in ETP shares is dependent on cheap, accurate hedging,” the expert said. It is driven by the availability of good substitutes for the asset the ETP seeks to track.

However, given the costs of hedging in the futures market and the regulatory difficulties when it comes to broker-dealers owning spot BTC themselves, Hoover said he wouldn’t find it surprising if some hedgers choose the Grayscale product, shares of mining companies, or MicroStrategy as better accessible BTC substitutes than the spot BTC.

BTC Settles Every 15 Minutes, Bitcoin ETF Shares Only on Business Days

Hoover also commented on the initial selling pressure in spot BTC, saying “there are some reasonable explanations” there.

There was some “sell the news” pressure, but also what he described as the release of pent-up demand to close out the GBTC arbitrage trade carried by certain participants for years.

The CEO mentioned that the broader pressure on the markets was likely related to the early stages of setting up efficient hedging operations to keep market-making profitable and the trading costs reasonable.

He again noted the differences between trading these product shares and trading digital assets 24/7.

First, he said, there is the above-discussed “long path” between market demand for ETP shares and flows measured by new ETP shares being issued.

Then, Hoover said,

“The SEC approved the first trades on Thursday before a three-day weekend in the US markets, which contributed to the delay.”

A trade creating new ETP shares (“flow”) on Thursday would not need to be paid for with cash until next Tuesday. Therefore, there is no efficient hedging of any price action until Tuesday morning.

Bitcoin settles with each block or approximately every 10-15 minutes. However, the Bitcoin ETF shares settle on T+2 New York business days. It does not include weekends and holidays.

“This timing difference, compounded by the fact that the ETP needs to price at the 4:00 pm New York close of the equity markets, creates a potential for manipulative activity in the Bitcoin market similar to that seen in the foreign-exchange markets in the early 2010s, for which a cartel of 15 banks paid more than $2.3billion to settle ligitation.”

The APs who bought the new Trust shares on Thursday and Friday, said Hoover, had a responsibility to manage their exposure to the price of BTC while the equity markets and the banks do not work.

Hence, BlackRock, for example, was obligated to help its customers (the APs) meet that responsibility.

Per Hoover, agreeing to issue new shares of the iShares IBIT trust on Friday, lock in an amount of BTC due in exchange for those shares based on the Friday 4:00p price in New York, and then wait to buy in the BTC until the following Wednesday when the shares were issued and settled – would have been “very irresponsible.”

Narrow net inflows, as all other providers slightly beat the GBTC outflow in day 6 pic.twitter.com/1fMws3e5yl

— BitMEX Research (@BitMEXResearch) January 20, 2024

ETP Is an Institutional Product, It Can’t Be a Retail One

Lastly, Hoover explained that the market for ETP shares is ultimately an institutional market. All ETPs are institutional products by definition.

The US Securities and Exchange Commission (SEC) requires companies to issue new shares of these products in expensive blocks. iShares IBIT, for example, is targeting a block size of $1 million, said Hoover.

BlackRock and the other Bitcoin ETF sponsors have consistently marketed their products to the “advisor” and “buy-side” markets.

This includes managers of model portfolios (e.g., Edelman Financial Engines), “robo-advisors” (such as Schwab’s Intelligent Portfolios product), and professional asset managers (hedge funds, mutual funds, pension funds, and the like).

“If an individual investor can’t place an order for ETP shares directly with the fund or trust via a transfer agent, and be guaranteed that their shares will be purchased at net asset value of the fund or trust on that day, the product is not a retail product.”

There are regulatory restrictions, but also the margins on ETP fees “simply aren’t large enough to support the massive cost of mass-marketing to retail investors.”

The business relies on economies of scale, Hoover said. A few flagship products provide enough fees to support marketing the sponsor’s brand across all of the products on the platform.

____

Read more: Expert Opinions: Massive Inflows to Follow Spot Bitcoin ETF Approval, Bull Market Questionable

The post Castle Funds’ COO Exclusive: Just Because Bitcoin ETFs Are Allowed Doesn’t Mean They’ll Succeed appeared first on Cryptonews.

Once dubbed “the pearl of the Indian Ocean” — Sri Lanka is known for producing the finest tea, fresh coconuts, and spices. Not forgetting the exotic wildlife including the leopard, elephant, sloth bear, blue whale, and sperm whale.

What You Need To Know About Bitcoin In Sri Lanka

Sri Lanka remains anti-crypto. Its stance on cryptocurrencies is that digital currency is not considered legal tender in the country. According to directions No. 03 of 2021 under Foreign Exchange Act, No. 12 of 2017, Electronic Fund Transfer Cards (EFTCs) such as debit cards and credit cards are not to be used for payments related to cryptocurrency transactions.

Would Bitcoin Solve Sri Lanka’s Economic Crisis

Sri Lankan economic crisis first started in 2019 and in 2022, Sri Lanka’s economy struggled after fuel supplies ran dry. In terms of GDP, Sri Lanka is expected to reach $76.86 billion by the end of 2024, according to data from Trading Economics, and in the long-term, Sri Lanka’s GDP is projected to trend around $79.54 billion in 2025 and $82.33 billion in 2026, reports Trading Economics. In October 2023, Nandalal Weerasinghe, the Governor of the Central Bank in Sri Lanka, said he believes that the adoption of decentralized cryptocurrencies will worsen the nation’s economic condition.

Last year, American millionaire Tim Draper travelled to Sri Lanka and proposed using Bitcoin as a legal tender to combat the corruption that caused the island nation’s hyperinflation.  But Sri Lanka wasn’t having any of this. During a TV shoot in Sri Lanka, Draper met with President Ranil Wickremesinghe and Weerasinghe to suggest Bitcoin as a practical solution for solving financial issues. But Weerasinghe, the Governor of the Central Bank of Sri Lanka – a major authority figure made it clear that doing so would aggravate the economic condition of the nation.

Central Bank Warns of Crypto Scams 

The Central Bank has warned the public of the growing number of financial scams operating with the promise of high returns based on crypto-investments. “These scams include deceiving individuals and obtaining money from them with the promise of providing a high return by investing money in cryptocurrency, as well as deceiving individuals to invest in fraudulent cryptocurrency projects. Such scams circumvent traditional regulatory and legal protection mechanisms, resulting in individuals losing their hard-earned money.”

The Central Bank made it clear that it has not issued any licence or authorized any individual or business to operate schemes involving cryptocurrency, or mining operations, cryptocurrency exchanges, deposit-taking or custody services related to cryptocurrency or any cryptocurrency investment advisory service.

Central Bank Plans to Launch Digital Currency

Sri Lanka’s Central Bank announced plans to introduce a digital currency by the end of 2024 its official told a top committee in Parliament, as reported by the Colombo-based local media news site Daily Mirror LK.“The exercise of introducing ‘Lanka Pay’ and ‘Central Bank Digital Currencies’ has already begun. The two systems will be launched by the end of this year,” Central Bank officials informed the Ways and Means Committee in Parliament, reports Daily Mirror LK.

Central Bank officials were called before the committee to discuss issues pertaining to online payments in Sri Lanka. Accordingly, the Chairman of Ways and Means Committee Patali Champika Ranawaka inquired about the regulation of online payment systems in Sri Lanka,” Parliamentary Media Unit (PMU) said. In September 2023,  Nandalal Weerasinghe, the Governor of the Central Bank acknowledged in a keynote speech that interest in digital currencies has been gaining traction and within the Central Bank of Sri Lanka.

“We are also engaged in studies on the potential of Central Bank Digital Currency (CBDC) which is the digital form of legal tender issued by the Central Bank. There is consensus across global central banks that CBDC will help enhance the efficiency and resilience of the payment system while also serving to increase financial inclusion.

Importantly, other potential benefits of CBDC include more effective monetary transmission and improved financial transparency,” said Weerasinghe. For now, Sri Lanka is showing signs of revival through growing tourism but cryptocurrency remains an unregulated investment instrument and is not recognized as an asset class. 

The post Sri Lanka’s Stance on Crypto and the Launch of ‘Lanka Pay’ in 2024 appeared first on Cryptonews.

They discussed the initial price drop post-approval, how the US Fed and presidential election could affect the market, BlackRock’s marketing approach, the benefits and downsides of the new product, and more.

For this article, we talked to Vijay Marolia, the Managing Partner and Chief Investment Officer of Regal Point Capital and a money manager with over 20 years of capital markets experience, Shane Rodgers, the Chairman and Co-founder of the PDX platform, and Dan Hoover, the Chief Operating Officer and Chief Compliance Officer at investment firm Castle Funds.

Read on to learn what they told us.

Initial Bitcoin ETF Trading Volume Suggests That BTC Will Only Get Bigger

Talking about the approved spot Bitcoin ETFs trading volumes, Vijay Marolia opined that “Bitcoin isn’t going away anytime soon.”

Shane Rodgers argued that volumes indicate the size and scope of the new ETF market. They suggest that BTC adoption and investment will continue to grow for the foreseeable future.

“We’ll see that reflected in direct BTC prices and trading volumes,” said Rodgers.

He added that the market is correct to anticipate massive inflows.

“This will drive BTC prices and crypto valuations overall well into the future.”

The market saw an initial price decrease following the new Bitcoin ETF approval.

Per Marolia,

“This as the first act of a strategic shift in institutional investors exposure—this is not necessarily a vote on a bull or bear market.”

Rodgers argued that the drop doesn’t tell us much at all – only that BTC is behaving like a normal financial asset more and more. These moves are quite normal in traditional financial assets, he said.

He added that “it should also always be remembered that retail investors are ‘sheep’. Most recent Bitcoin selling has been profit taking, overtaken by unfounded worry from the retail crowd.”

Most Bitcoin trading happened on Binance and some of the bigger Asian exchanges. But the selling was “unsophisticated,” Rodgers opined, “and in our view created a nice buying opportunity.”

Rodgers also commented on some recently expressed BTC supply shortage concerns. When asked if these are valid, he replied “Absolutely not.”

Bitcoin is a digital asset divisible by 18 decimal points, making the maximum supply of 21 million BTC irrelevant, he said. Therefore, there will never be a shortage of BTC.

Donald Trump’s US Presidential Win Would Delay Strong Bull Market

As time goes by, things are bound to change. The question is in which direction.

Rodgers commented that the near-term and long-term impact of the new Bitcoin ETFs on the market is positive. And not just for BTC, he added, but the entire crypto space.

Per Marolia, we are likely to see “slightly less volatility” in the coming months while average volumes start to increase. This follows the mentioned initial decrease. The expert argued:

“This is a healthy way of building a “base” of strong (read: long-term) investors.”

However, Marolia brought up a couple of key factors that will significantly impact the market in the coming years: the US Federal Reserve and the 2024 presidential elections.

One should keep in mind that Bitcoin was created due to a lack of trust in global fiat monetary systems, he noted.

“If the Fed lowers rates or ANY democratic wins the election (including undercover democrat, Nikki Haley, this is BULLISH for Bitcoin and will cause more inflation.”

On the other hand, should Donald Trump win the election (again), Marolia opined that it would slow down or delay another strong bull market in Bitcoin. He said that it would likely cause dollar strength and that, just like gold, we price Bitcoin in dollars.

BlackRock’s Marketing Approach is a Step to Mass Adoption

BlackRock has been making headlines left and right, specifically in the ETF context.

It seems that BlackRock is targeting an audience besides crypto enthusiasts. Asked if this is the correct approach, Rodgers said it is – especially at this point in the maturity cycle for the asset class.

“This helps us get past reliance on the unsophisticated average retail investor, to more prudent investors with greater capital and better judgement. It’s a step along the way to increasing mass adoption.”

Meanwhile, the company recently purchased 11,439 BTC. Per Rodgers, however, this purchase, in and of itself, has “zero meaningful impact.”

Dan Hoover, the CCO/COO at Castle Funds, said he doesn’t believe that BlackRock is buying this much BTC for themselves. The number was implied by the increase in assets under management (AUM) reported for the iShares Bitcoin Trust (IBIT) after the first two days of trading, he said.

“If this is the case, I think that this is a positive sign that the ETP’s can in fact scale their creation (and, theoretically, their redemption) processes in an orderly fashion.”

If the BTC were purchased over the holiday weekend, it shows that risk-management processes are in place, such as hedging. This helps mitigate risk to the market-makers and Authorized Participants (APs). This is healthy for both the ETP holders and the market in general, he argued.

But downsides remain, Hoover noted. The Bitcoin market relies on transparency in holdings and movements, tracking flows across different wallets with each block mined.

However, he said, BlackRock – or any of the brokers they are using to buy the underlying BTC – are unlikely to be readily identifiable on chain for now. This will persist at least until the patterns of ownership are worked out.

“When added to the timing delays, the net result is confusion and volatility until the market learns how to track and adapt to these market actors,” Hoover said.

The post Expert Opinions: Massive Inflows to Follow Spot Bitcoin ETF Approval, Bull Market Questionable appeared first on Cryptonews.

In a conversation with Gaurav Mehta, the founder of Catax, India’s first crypto tax software, we explore where India is heading with crypto tax laws and regulations.

India’s First Crypto Tax Software

Gaurav conceived the idea of running a crypto tax software back in 2014 and had already started pitching the idea to investors, 8 years before any formal crypto tax regulations in India. Though the solution of crypto taxes didn’t start to materialize until 2022 for Catax.

Gaurav, who works as a forensic expert with different law enforcement agencies on cases related to blockchain, was a guest lecturer at National Academy of Direct Taxes where he trained IRS officers from 2021-2023. Catax, which primarily started to serve crypto taxation solutions to governments and businesses, aims to help a million retail customers with free crypto tax solutions in 2024-2025, Gaurav told Cryptonews.

Government is Building Competency in Catching Crypto Tax Evaders

Talking about current crypto taxations in India, Gaurav said:

“Up until 2023, the anonymity of the blockchain primarily benefited individuals. However, starting in 2024, the dynamics shift in favor of organizations, compliance, and all stakeholders. This shift occurs because the recent advancements have enabled the capacity to interpret, and track the blockchain effectively. As a result, taxation is poised to become a significant concern for everyone in the upcoming years.”

“The government is now building competency in this domain that will ultimately translate into identifying the people who are evading taxes,” he added.

The Battle of 1% TDS on Crypto Transactions

As per Gaurav, 1% TDS on crypto taxes is justifiable as it helps remove the fraud from markets such as pump and dump schemes. He said: “The 1% TDS is primarily to remove the speculation from the market which has been there for such a long time manipulating the public, 1% TDS ensures that the people are only encouraged to engage in necessary and effective trade.”

However, before 1% TDS on crypto transactions was implemented in India in July 2022, nearly three to five million customers flew to offshore exchanges in five months. This resulted in approximately a loss of $420 million in taxes for the Indian government. Now, all the offshore crypto exchanges have been blocked in India.

Earlier, in an interview with Cryptonews, co-founder of India’s leading crypto exchange CoinDCX, Neeraj Khandelwal, said “1% TDS on crypto transactions is a “death blow” to the industry.

Future of Crypto Regulations in India

Gaurav noted that given India has a protectionist economy, meaning the government closely oversees the funds flowing outside of the country, unlike the developed countries like the USA or UK, it is unlikely that crypto regulations will be similar to those countries.

However, India currently has a community of more than 15 million investors who have a vested interest in crypto and are trying to convince the government to bring regulations. Gaurav further added that given India’s economic position, there could be regulations that separate crypto trading from crypto ownership. He added:

“We may have something where people would be able to create a Demat-like account on the crypto exchanges and would be able to buy and sell their crypto. But to transfer the crypto from India to somewhere else that clearance would be done by National Securities Depositories Ltd (NSDL) and Central Securities Depositories Ltd (CDSL) like entities.”

RBI Governor Remains Critical of Crypto

Speaking at the World Economic Forum in Davos today, the governor of the Reserve Bank of India, Shaktikanta Das, once again reiterated the negative stance on crypto, saying, “cryptocurrency is highly speculative and country like India should be very careful.”

He added:

“Cryptocurrencies have huge risk, particularly for emerging market economies because it can impact your financial stability, currency stability, and monetary system.There is no underlying value. It is not a currency, but it has the potential to become a currency in which event it can occupy the part of the payments system. It can impact your banking system and therefore it has very much risk involved in it.”

Crypto regulations was among one of the main topics during the G20 summit last year in India. The Indian government proposed universal regulations for all the G-20 members and accepted a synthesis paper proposing a IMF and FSB. The crypto community in India continues to wait for any formal regulations.

The post What Future of Crypto Taxes and Regulations May Look Like in India – Insights From Expert appeared first on Cryptonews.

For the last seven years, crypto players have edged their way into Davos during the WEF. Who can forget 2017 (peak crypto) — crypto was the hottest trend. The talk of the town not forgetting the initial coin offering (ICO) phase.

After the ICO bubble popped there was an attempt to make “security token offerings” (STOs) and “initial exchange offerings” (IEOs) a thing but this fizzled out too.

In 2018, the WEF saw more chatter around Bitcoin and how some cryptocurrencies were a fad, but blockchain technology was here to stay. Then eventually crypto and blockchain technology took a back seat at Davos and chatter around the importance of regulation continued on a yearly basis.

In 2019, attendees continued to try and revive the sector, with many verbally bashing crypto as fad. Back then at the WEF, Jeff Schumacher, founder of BCG Digital Ventures, said: “I do believe it [bitcoin] will go to zero. I think it’s a great technology but I don’t believe it’s a currency. It’s not based on anything.”

Between 2020-2023 (excluding 2021 when the WEF was cancelled due to Covid) – crypto continued to remain on the outskirts – although addressed and included (for diversity) it is no longer the hot new trend as it was in 2017. Despite crypto players desperately trying to revive the sector with cool afterparties and Bitcoin pizza day – crypto remains niche,  a bit like Marmite.

WEF Davos Discussion Points

Cryptonews touched base with attendees on the ground in Davos, Switzerland.

“At Davos, WEF attendees have been discussing the recent approval of ETFs and how this significant achievement could potentially lead to widespread adoption of cryptocurrencies,” said Marcos Benitez, head of sales Switzerland for Copper.co.

“Many countries are looking to the United States to follow a similar regulatory framework. It’s worth noting that within the first two days of the listing of various Bitcoin ETFs, a staggering $4.5 billion worth of cryptocurrency had already been traded,” added Benitez.

Spot Bitcoin ETF Approval 

CoinDesk producer and anchor Christine Lee, who is at Davos said the crypto crowd gathered this year is optimistic due to the U.S. Securities and Exchange Commission (SEC) approving the ETFs.

“The crypto vibe in Davos 2024 is decidedly more optimistic thanks to the SEC’s approval of 11 Bitcoin ETFs, driving the market higher in anticipation of further institutional adoption. When the news was announced last week, entrepreneurs at CfC St. Moritz, a highly curated crypto conference pre-Davos, were popping champagne bottles, and the wine continued to flow at the various parties throughout the World Economic Forum this week,” said Lee.

Lee has attended numerous events in Switzerland explains many crypto companies are back on the Promenade in Davos, though their operations have scaled back coming off the bear market.

“Circle is opting for private meetings rather than last year’s blowout party and Filecoin Foundation has dialed back their budget. Others making repeat appearances include Hedera, Caspar Labs, 1 Inch, the Global Blockchain Business Council, CV VC, and Skybridge Capital,” said Lee.

WEF Davos 2024 Crypto Media Coverage 

Here is a round up of some of the interesting coverage coming out of Davos relating to the cryptocurrency sector.

Reuters, Divya Chowdhury and Lisa Pauline Mattackal report hedge fund SkyBridge’s Anthony Scaramucci believes Bitcoin’s price could breach $170,000 next year, driven by demand for newly listed exchange traded-funds and April’s halving event. “If bitcoin’s at $45,000 on the halving, where it roughly is right now, it’ll be $170,000 by mid- to late 2025,” the SkyBridge founder and managing partner told the Reuters Global Markets Forum at Davos.

CNBC’s Arjun Kharpal and MacKenzie Sigalos report that, artificial intelligence (AI) seems to be dominate the Promenade far more than crypto firms this year, reversing a trend from the past few years. The duo look back at their previous converge of crypto at Davos.  In January 2023, as the crypto winter had set in, firms pulled back on splashing the cash at Davos, but there was still a heavy presence from the industry, inclduing a mysterious orange bitcoin car. Today it seems Davos is all about AI which is dominating the WEF.

Financial News, Bilal Jafar reported, the crypto world has long headed to Davos in January, but has rarely been admitted inside the WEF. Instead, it has chosen to represent itself outside the heavily guarded conference. Jafar reports, crypto seeks legitimacy at World Economic Forum as Ripple president urges ‘mature players’ to attend.

The post WEF Davos 2024: Crypto Predictions, and the Pivot to AI appeared first on Cryptonews.

The MetaMask Snaps plugin, which provides access to the popular MetaMask wallet’s 30 million monthly active users, is now available on the open-source, proof-of-stake network Hedera.

This Hedera Wallet Snap plugin, built by Tuum Technologies, enables developers, companies, and individuals to enjoy new benefits beyond MetaMask’s native features, said the press release. Developers can now integrate Hedera’s functionality into MetaMask-based applications.

Donald Bullers, Founder and CEO of Tuum Technologies, told Cryptonews that the prevailing market conditions provide “a significant validation of the enduring presence of decentralized technologies” powered by distributed ledger technology (DLT).

“This acknowledgment is expected to broaden adoption among a previously skeptical demographic, leading to a substantial increase in crypto wallet account activations.”

Consequently, there is a heightened demand for ongoing product innovation in the space to meet the growing needs of users, Bullers said.

Enabling Access to Range of Networks through MetaMask

Tuum Technologies is a software engineering company and a developer of open-source, decentralized identity solutions.

It created Snaps, which extends the functionality of MetaMask by enabling developers to create custom plugins.

The integration of Hedera into an Ethereum Virtual Machine (EVM), multichain wallet “opens up numerous doors” for developers, users, and companies to interact with the Hedera network directly through MetaMask applications.

Bullers told Cryptonews that,

“The introduction of Hedera’s native functionality to MetaMask’s 30 million MAUs not only increases interoperability but also extends access to a diverse range of networks, including Hedera.”

This amalgamation, said he, combines MetaMask’s robust security features and Hedera’s speed and cost-effectiveness, “elevating the overall user experience.”

It “paves the way for user experience efficiencies,” said the announcement, enabling anyone to send HBAR to Hedera and EVM addresses. It also enables the retrieval of account information and viewing of token balances.

More Features Coming Soon

The Hedera Wallet Snap eliminates the need for Hedera JSON-RPC Relay. This allows the plugin users to retrieve account information from the Hedera Consensus Node and the Hedera Mirror Node.

Per CEO Bullers,

“For developers and companies currently operating MetaMask-enabled applications or planning to build them, this integration offers an alternative to Hedera JSON RPC Relay and opens doors to Hedera’s full suite of capabilities.”

The use of native integration, as opposed to relying on Hedera JSON RPC Relay, allows developers to support features from the Hedera Token Service (HTS) and extend their capabilities into other network services. These include File Service, Smart Contract Service, and Consensus Service.

Bullers noted that the initial release comprises basic functionalities. The team is actively working on incorporating advanced features in the coming months. This will include viewing transaction history and staking/unstaking HBAR to and from Hedera Network nodes.

Kiran Pachhai, Co-founder of Tuum Technologies, commented that the Hedera Wallet Snap is “a sophisticated plugin that empowers developers to enhance the capabilities of their applications beyond the native features of MetaMask.”

Shayne Higdon, Co-founder and CEO of The HBAR Foundation added that this is just a first step for the plugin. Specifically as more features and functionalities will be announced in the coming months.

Hedera Wallet Snap can be installed from MetaMask Open Beta. It is available on GitHub as a JavaScript NPM package.

The post MetaMask Plugin Connects Hedera Network with 30 Million Monthly Users appeared first on Cryptonews.

Hedera has announced the latest member of its governing council – the tech giant Hitachi. Hedera’s President Charles Adkins told Cryptonews why having household names join the ranks is relevant.

Hedera Lending Credibility with Hitachi America

The Hedera Council’s

newest member is Hitachi America, Ltd. According to the press release, it plans to start creating proofs-of-concept for end-to-end supply chain and sustainability solutions on Hedera in the next year.

Charles Adkins told Cryptonews that having these major names join the council specifically, and the industry in general, is key.

This is a nascent technology, he said. At this stage, it’s important to have key partners who can demonstrate their trust in the technology.

He added:

“These well-known names lend credibility and recognizable branding to people all over the world who are still on the fence about utilizing this technology in other ways for themselves.”

Also, Bill Miller, co-chair of the membership committee for the Hedera Council, commented that distributed ledger technology (DLT) is “blossoming into real-world applications at massive scale.”

This process, he argues, requires support from household industry names such as Hitachi.

“Web3 infrastructure is increasingly attractive to large enterprises, who have never before been able to demonstrate the transparency and accountability of supply chain and other systems that are so urgently needed in today’s times,” Miller said.

Already Developing Blockchain Technology Solutions

Adkins told Cryptonews that the governing council looks to engage in meaningful discussions with organizations that have a deep interest and commitment to implementing decentralized technology.

Being a part of the council “allows them to have a voice in the room to discuss with other wonderful companies how to navigate the future.”

The announcement noted that Hitachi brings new capabilities to the Council, strengthening the network through its technical and research capabilities. Furthermore, it brings expertise and innovation in machine learning and generative AI technologies. This has increased the varied expertise that forms the Council’s knowledge base.

Per the press release,

“Hitachi and its affiliates have already employed their technological expertise to develop valuable blockchain technology solutions in payment systems, supply chains, predictive maintenance, and mining.”

Hitachi America is headquartered in California and is a wholly-owned subsidiary of Hitachi, Ltd. It brings to the table industrial solutions expertise, said the press release. The company offers a range of electronics, power and industrial equipment and services, energy, industrial, health care, IT, OT, mobility, and IoT with operations throughout the Americas.

Ravigopal Vennelakanti, Vice President and head of Hitachi’s Big Data Analytics Solutions Lab, commented that Hitachi sees real-world potential in DLT solutions built on Hedera.

“Hedera addresses emerging needs in supply chain resiliency, clean energy, IT/OT and the semiconductor industries, for example,” Vennelakanti said. “Its unique DLT provides the single truth and tokenization mechanisms for distributed workflows that are needed to address these challenges.”

Equal Vote in Adding Members

Hedera is an open-source, proof-of-stake network governed by the Hedera Council. The latter is a consortium of diverse, global organizations and enterprises committed to network innovation and Hedera’s continued decentralization.

Council members are chosen by having discussions and finding alignment before bringing them forward for a council vote, Adkins said.

Its forty members include Boeing, Chainlink, DBS Bank, Dell, Deutsche Telekom, IBM, LG Electronics, The London School of Economics, University College London, Nomura Holdings, Shinhan Bank, Standard Bank Group, Ubisoft, and more.

The members share an equal vote in the direction of Hedera’s software and services. They also run the initial network nodes.

As for Hedera’s plans for 2024, the President said it intends to “keep improving engagement with the community and improving in all other areas of governance and network performance.”

The post Hedera Adds Major Household Name To Its Council – Why Is This Important? appeared first on Cryptonews.