Crypto Guides, Knowledge & Insights

Russian Finance Ministry Rules Out Sale of Oil for Bitcoin

The Russian government considers bitcoin as a payment option for small business transactions, not for oil exports, the countrys finance ministry has indicated. A top official emphasized the department means that cryptocurrencies may be used in barter deals, but not as legal tender.　　Crypto Payments Not for Russian State Settlements, Ministry of Finance Says　　Cryptocurrency payments, in terms of international transactions, are seen by the authorities in Moscow as an alternative option for small private business contracts, but this will not affect Russian oil deliveries. The clarification was made by the head of the finance ministrys Financial Policy Department, Ivan Chebeskov, who recently spoke with reporters on the matter.　　The ministry proposes to employ cryptocurrency as an asset, not as a means of payment, the high-ranking official remarked. That means digital currencies can be used in barter transactions — when a buyer formally exchanges bitcoins, or other cryptocurrencies, for a product or service, he explained. Quoted by RTVI, Chebeskov elaborated:　　“The task is to provide an alternative, and not to say that Russia is now paying for everything with crypto. This is not about state settlements but private business only.”　　The Minfin representative pointed out that oil would hardly be sold for bitcoins due to

2022-06-21Deep Dive

FTX CEO Says Fed Interest Rate Hike Main Reason for Market Crash

Bankman-Fried holds the United States Federal Reserve to blame for the crypto market slump. He was speaking to NPR, saying that the main driver of the slump was the Fed and its decision to heavily raise interest rates.　　Interest rates at 30 year high　　The CEO did note that the Federal Reserve was in a difficult place trying to combat the worrying inflation rates in the U.S. The Fed recently introduced the largest hike in interest rate in nearly 30 years. All markets have been affected, and Bankman-Fried said that, “Literally, markets are scared. People with money are scared.”　　He also said that the market crash and the strain of several notable crypto entities, including Terra, Celsius Network, and Three Arrows Capital, could influence crypto regulation. Lawmakers had already been discussing how to regulate the crypto market, and the recent slump will play no small part in their decision-making.　　The CEO also believes that it is the responsibility of bigger companies to help resolve any issues in the market, “I do feel like we have a responsibility to seriously consider stepping in, even if it is at a loss to ourselves, to stem contagion,” he said.　　“Even if we weren‘t the ones who caused it,

2022-06-21Deep Dive

United Kingdom Will Not Require KYC for Unhosted Wallets

The U.K. Treasury has decided to rescind its requirement for crypto companies to compile the personal information of self-custodied wallet users, citing privacy concerns.　　Unhosted Wallets for “Legitimate Purposes”　　The United Kingdom‘s government won’t be requiring crypto businesses to collect personal data for all transfers to non-custodial wallets.　　In its June report, the Treasury acknowledged that “many persons who hold cryptoassets for legitimate purposes use unhosted wallets” and that no “good evidence” shows such wallets being used disproportionately for criminal activity. It will therefore only expect crypto businesses to collect personal information for “transactions identified as posing an elevated risk of illicit finance.”　　The decision was made based on the feedback the Treasury received from its consultation with regulators, industry leaders, academia, civil society, and government bodies on the subject of updating money-laundering regulations.　　The Treasury had previously indicated crypto transfers would fall under Financial Action Task Force (FATF) standards, meaning that both originator and recipient of transferred funds would need to be identified by crypto firms.　　The measure was dropped due to concerns over privacy, feasibility, and short- and long-term costs. Some of those consulted suggested using Zero-Knowledge Proof technology to “demonstrate customer due diligence checks had been performed” while avoiding the sharing of personal

2022-06-21Deep Dive

Crypto Industry's Ad Spending Collapses by 90%

According to data provided by market intelligence and analytics firm Sensor Tower, cryptocurrency marketing has collapsed since November, The Wall Street Journal reports.　　In fact, ad spending is now down as much as 90%, with the industry feeling the pinch amid the ongoing market crash.　　For instance, Gemini Trust spent less than $500,000 in May on ads (compared to $3.8 million in November).　　Following the recent collapse of cryptocurrencies, American actor Matt Damon was mocked because of his viral “Fortune Favors the Brave” cryptocurrency ad that was released last year when crypto prices when trading near their historic peak. Last week, Twitter users calculated that those who followed Damons ill-timed advice ended up losing the majority of their investment.　　After actor Larry David stirred some buzz with his FTX commercial that aired during the Superbowl in February, his representative admitted that the “Curb Your Enthusiasm” star did not know anything about cryptocurrencies when filming the ad.　　Other celebrities, such as Kim Kardashian and Steph Curry, have also been eerily silent about the cryptocurrency crash.　　Analyst Dennis Yeh says that the drop in macroeconomic confidence has led to a significant drop in engagement. For more blockchain news, please download WikiBit - the Global Blockchain Regulatory Inquiry APP.　　In

2022-06-21Deep Dive

ProShares to launch Bitcoin short ETF

ProShares will launch a short Bitcoin-backed exchange-traded fund (ETF) on the New York Stock Exchange (NYSE), the U.S.-based ETF issuer announced on Monday.　　Fast facts　　ProShares Short Bitcoin Strategy ETF is scheduled to begin trading on the NYSE on Tuesday under the ticker BITI.　　A short Bitcoin-backed ETF allows investors to profit from falling Bitcoin prices.　　Bitcoin has fallen roughly 70% from its all-time high in November last year and was changing hands at US$20,575 at publishing time.　　ProShares launched the first Bitcoin Futures ETF in the U.S. last October, before Bitcoin rallied to its record-high price.　　The U.S. Securities and Exchange Commission has yet to grant approval to a spot-traded Bitcoin ETF.　　For more blockchain news, please download WikiBit- the Global Blockchain Regulatory Inquiry APP.

2022-06-21Deep Dive

Korean Financial Authority Imposes Departure Ban On Terra Developers

According to Korean news site JTBC, the Seoul Joint Financial and Securities Crime Investigation Team has placed travel embargoes on developers in the Terra team. This is as a result of the ongoing investigation on Terra by Korean Authorities.　　TFLs members were not informed about the ban　　After the crash of LUNA and UST, authorities have been on the tail of the founder of Terra, Do Kwon. His legal troubles seem to be compounding as Korean Authorities have now placed a travel ban on present and ex members of his team.　　This move seems to have been taken to prevent said persons from suddenly leaving the country as it appears that a more serious investigation is going to be launched on the company soon.　　According to a Terra employee, David Hong, none of them were notified of the restrictions beforehand, which he said was done so they wouldnt destroy evidence.　　“To be honest, people being treated as potential criminals like this is absolutely outrageous and unacceptable.”Hong tweeted.　　At the moment, the prosecution is said to be coordinating the investigation schedule with Terra officials. However, an official from the Ministry of Justice noted that,　　“It is impossible to confirm whether the departure ban is related to the confidentiality

2022-06-21Deep Dive

Bloodbath in Crypto: Nigerian traders lose money as Bitcoin Crashes to 17K

By: Damian Okonkwo　　The Crypto market has witnessed its most difficult moment last week with Bitcoin falling to two years low at 17,588 marking its lowest point since 1st October 2020. This has dealt a heavy blow to all crypto traders the world over; including Nigerian traders who have invested in Bitcoin and altcoins as a lifetime investment without bothering to take profits during the dip. Bitcoin has witnessed over 79% loss of value from its all-time-high recorded in November last year at 69K. Most altcoins have seen greater price crash with some losing over 90% value while some shitcoins rug pulled entirely with no hope of recovery.　　So far the current dip seems to have exposed to all new crypto traders the risk involved in investing in Cryptocurrency. Thus there is no price regulation nor monitoring of the developers by the government. This gives room for the possibility of a rapid price crash as we saw last month in Luna coin and this month in Bitcoin without anyone questioning the developers.　　What is the major cause of the crash in Cryptocurrency today？　　There are two major causes of the crash witnessed this month in the crypto industry. We have explained them below:　　Interest rate

2022-06-20Deep Dive

Binance Suspends Direct Deposits and Withdrawals in Brazil

Binance announced this week that the direct withdrawal and deposits were suspended in Brazil. The exchange issued a statement where it announced that this was the result of a change in the payments partner in the country and that it will be taking legal steps against it. However, the partner states that Binance did not adapt to provide the new KYC information required by Brazils central bank.　　Binance Stops Real Related Movements　　Binance stopped real-based direct deposits and withdrawals in Brazil this week as a result of a change in its secondary payments provider. The exchange announced that it was making the necessary changes to fix this problem in the future to keep offering these services to its customers in Brazil.　　In a blog post explaining the situation, Binance stated: [Binance] will promote a smooth transition in the coming weeks and that it is taking all necessary steps, including legal related to Capitual, to ensure that users are not adversely affected by the change.　　Furthermore, the exchange stated that Brazil was “an extremely relevant market for the company,” and that it would continue to invest and expand services in the country.　　Capitual Answers　　Capitual, the bank that provides payments services for Binance and other exchanges in

2022-06-20Deep Dive

Elon Musk: I Will Keep Supporting Dogecoin Despite The $258 Billion Lawsuit

Elon Musk, the worlds richest man and self-proclaimed Doge Father, has declared his unwavering support for the leading meme cryptocurrency, Dogecoin.　　Elon Musk to Keep Supporting Dogecoin　　The Tesla CEO posted on Twitter earlier today: “I will keep supporting Dogecoin.” He also revealed in response to a user that he is still buying the memecoin.　　As usual, DOGE reacted to the billionaires tweet, and the price surged by 11% from $0.052 to $0.058 despite the bearish market.　　Musks declaration of his continued support for Dogecoin comes a few days after an American investor filed a $258 billion lawsuit against him and two of his companies, Tesla and SpaceX, for allegedly promoting DOGE and manipulating the price of the cryptocurrency.　　As reported, the plaintiff, Keith Johnson, described Dogecoin as a “crypto pyramid scheme” and alleged that Musk and his companies deliberately promoted it as a legitimate investment.　　The plaintiff argued that the billionaires endorsement of Dogecoin led many people to invest in the cryptocurrency, which is currently down by more than 90% from its 2021 all-time high of $0.73.　　Johnson is seeking $86 billion in damages from the billionaire and $172 billion for losses incurred from DOGE trades since 2019. He also wants Musk to stop promoting or

2022-06-20Deep Dive

Crypto Scammers on LinkedIn Pose Big Threat to Users, Says FBI

IN BRIEF　　US FBI has warned LinkedIn users to be wary of crypto scammers on LinkedIn.　　According to the authorities, these scammers use different techniques to defraud their victims.　　LinkedIn has revealed that it is working with the FBI to curb the use of the site for scams.　　The Federal Bureau of Investigation has warned LinkedIn users to be wary of crypto scammers, saying that these malicious players present a huge threat to the social media platform.　　Speaking on behalf of the law enforcement agency, its special agent in charge of the San Francisco and Sacramento, California field offices, Sean Regan, noted that numerous users have already fallen victim to those scammers.　　LinkedIn users already falling victim　　“This type of fraudulent activity is significant. There are many potential victims, and there are many past and current victims.”　　Regan continued that the growing rate of these crypto investment scams has contributed to the rising number of investment-related frauds recorded by the FBI.　　“They are always thinking about different ways to victimize people, victimize companies.”　　He noted that scammers invest a lot of time in researching their claims, defining their goals, and their strategies. He also added that they deploy tools and tactics that are always predetermined.　　A report by the Federal Trade

2022-06-20Deep Dive

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