Crypto Guides, Knowledge & Insights

U.S. develops crypto-asset ‘roadmap’; is the Fedcoin on its way?

A joint statement by U.S. financial regulatory agencies on Tuesday recognized the importance of the crypto-asset sector and outlined a plan for agency fast-tracking of policy goals in 2022. Thirteen years after the creation of the first cryptocurrency, the Board of Governors of the Federal Reserve System, Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency announced they are working together to develop clearer crypto-asset policy, particularly regarding stablecoins, which may pave the way for a U.S. central bank-backed digital currency.　　 Fast facts　　The agencies jointly stated, “As supervised institutions seek to engage in crypto-asset-related activities, it is important that the agencies provide coordinated and timely clarity where appropriate to promote safety and soundness, consumer protection, and compliance with applicable laws and regulations, including anti-money laundering and illicit finance statutes and rules.”　　Recently, the agencies conducted what they called “policy sprints” to find a common vocabulary and understanding for crypto concepts, identify risks, clarify where existing laws govern and where further clarity is necessary.　　The agencies further outlined a roadmap of areas where the government will work to issue further clarification in 2022, including crypto assets custody services, loan collateralization and the issuance and distribution of stablecoins.　　The joint statement

2021-11-24Deep Dive

Cryptocurrency investments are rising, but so are scams

While the popularity of cryptocurrency has exploded over the last decade, so has the prevalence of investment scams.　　Cryptocurrency (crypto) is a computer-based digital currency that acts as a monetary system which can be exchanged for goods and services.　　Exchanges with crypto are normally handled online between private parties, with no direct oversight.　　“Typically, when we have our banking account we can look at what our account transactions are, but that‘s being monitored by our lender,” WI Bureau of Consumer Protection Director Michael Domke said. “With cryptocurrency, all of this is stored on what’s called a ledger, and theres a level of cryptography that basically encodes both the sender, the receiver, and the actual transaction information.”　　Bitcoin was the first cryptocurrency back in 2009, but Division of Securities Director for the WI Department of Financial Institutions Robin Jacobs says there are now more than 7,000 in existence.　　The rise in the amount of cryptocurrency has coincided with a substantial increase in value.　　“As of November 2021, there were over 18.8 million Bitcoin in circulation, with a total market value of about $1.2 trillion,” Jacobs detailed.　　Despite its popularity, Jacobs says cryptocurrency is a volatile system due to its lack of clear regulation.　　“The IRS taxes Bitcoin as property,

2021-11-24Deep Dive

US Banking Regulators to Focus on Stablecoins, Crypto Custody in 2022

Earlier this year, the three top U.S. banking regulators—the Federal Reserve Board of Governors, the Federal Deposit Insurance Corporation (FDIC) and the Comptroller of the Currency (OCC)—finished several “policy sprints” designed to ready the country for crypto banking regulations.　　Now, the agencies are ready to stretch their legs and run a marathon.　　In a joint statement today, the Fed, FDIC, and OCC set an ambitious agenda for 2022 related to cryptocurrency, with issues such as stablecoin issuance by banks and financial institutions taking custody of crypto assets set to be decided.　　This years sprints sought to solidify vocabulary, explore risks, identify existing regulations, and reveal gaps. As part of that effort, the agencies touched upon banks taking custody of crypto for clients, helping them buy or sell it, using digital assets as collateral for loans, and allowing stablecoins for payments.　　But the exercise intentionally left more questions than answers, primary among them: Which of these activities should we allow or encourage？　　Theres little certainty on where these conversations will lead. Acting Comptroller of the Currency Michael Hsu hit the pause button on crypto-friendly regulations set by his predecessor, Brian Brooks, who took the government job in between executive stints with crypto exchanges Coinbase and Binance

2021-11-24Deep Dive

IOHK announces Cardano (ADA) block size increase as it moves to ‘scaling’ phase

Cardano (ADA) is heading into the Basho phase, according to IOHK, as the developer team announced upcoming gradual adjustments, focused on “optimization, scaling, and network growth.”　　According to the announcement, IOHK already submitted two initial changes, namely Cardanos block size increase and increase of Plutus script memory units per transaction.Increasing block size by 12,5%　　Cardano‘s developers opted for a methodical approach to changes in the network’s parameterization, claiming that “slow and steady wins the race.” 　　“A 12,5% increase is sizable, but not too big. It leaves room for further expansion, and allows stake pool operators (SPOs) to adjust to the increased demands,” explained IOHK, as the developer team announced Cardanos block size is set to increase by 8KB to 72KB.　　A larger block size implies fitting more transactions into a single block, which in the end means processing more transactions per second.　　Increasing Cardanos block size comes into play as the network developers anticipate a rise in traffic, due to new dapps rolling out.　　IOHK pointed out that currently there are “well over 2 million Cardano wallets in use and traffic has grown by over 20 times in a year.”Increasing Plutus memory limits by 12.5%　　Besides block size, Cardanos developers will be increasing Plutus script memory

2021-11-24Deep Dive

Fraudsters posing as Michael Saylor strip people of over $4 million in Bitcoin

A few days ago, Elliptic, a blockchain analytic firm, reported that unsuspecting individuals had cumulatively lost over $10 billion to crypto frauds and scams.　　Today, a Bitcoin user has now added to that figure after losing 3 BTC (the equivalent of $179,000) to an impersonator of MicroStrategys chief executive officer Michael Saylor, in what appears to be a giveaway scam.Fraudster impersonates Michael Saylor　　According to Whale Alert, the said scam took place on November 21, with the fraudster using the website “mstrategy.io/bit” to parade himself as the pro-Bitcoin CEO of the firm. He then proceeded to request visitors of the site to send some Bitcoin to a designated address with the promise of doubling the amount for them. 　　“Michael Saylor believes that Blockchain and Bitcoin will make the world fairer. To speed up the process of cryptocurrency mass adoption, We decided to run 5 000 BTC giveaway,” the scam site reads.　　As of press time, the scammers address has received over 80 BTC that are cumulatively worth over $4.5 million from 50 transactions. Available data also shows that the fraudster has transferred 72 BTC out of the wallet, leaving the current value of the address at 10 BTC ($562,335.38).Scam projects tend to impersonate

2021-11-24Deep Dive

Fraudsters posing as Michael Saylor strip people of over $4 million in Bitcoin

2021-11-24Deep Dive

6 things to do if you encounter a crypto scam or fraud

Crypto scams are becoming increasingly hard to spot. With scammers using glossy websites and spoofed endorsements, even sharp investors can get caught out when trying to invest.　　Even if you haven‘t been a victim, but you know about crime or fraud involving crypto, you should still report it as you could earn you a whistleblower award for doing so. Here are the six things to do if you think you’ve witnessed crypto crime. (If its a major fraud, skip straight to number 6). 1. Preserve your records 　　When reporting fraud, you may need to provide records of your transactions and communications. If you dont preserve your records, it could mean that the authorities will not take you seriously, and you may miss out on having funds returned to you if you were a victim of the fraud. Preserving records means more than simply not deleting your emails and text messages.　　In addition to having these on your mobile device, you should also make copies and have them stored in the cloud in case anything happens to your device. The same goes for transaction records. These might be visible in an online account, but you can never be sure when the company will

2021-11-24Deep Dive

Binance eyes “sovereign wealth funds” to battle regulatory troubles

The largest cryptocurrency exchange by trading volume, Binance, is planning to get funding from some global sovereign wealth funds for equity financing in its bid to improve its relationships with regulators around the world.Binance seeks funding from sovereign wealth funds　　In an interview with Financial Times, the CEO, Changpeng Zhao, who is currently the largest shareholder of the company revealed the intention of the firm towards the upcoming mega funding.　　With this funding, it is hoped that the “perception and relationships” being held by governments about the exchange would drastically improve in the face of its regulatory battles across the globe.　　While refusing to name some of these wealth funds, CZ revealed that discussions are currently ongoing and it is in its early stages with these institutions. 　　CZ continued that he was wary of tying his company to one specific country as the crypto firm is currently facing its regulatory battles across different fronts.　　Youll recall that authorities in Germany, Italy, Singapore, the United Kingdom, and South Africa have at different times warned their citizens about using the exchange for their transactions.　　Notably, Binance.US, the US arm operating independently of the global exchange, is looking to raise a “couple hundred million dollars” by early next

2021-11-24Deep Dive

Crypto Is Driven by Extraordinary Consumer and Investor Demand, Says Australian Regulator

Australian Securities and Investments Commission (ASIC) Chair Joe Longo talked about cryptocurrency at the Australian Financial Reviews Super & Wealth Summit Monday.　　“Consumers should approach investing in crypto with great caution,” he said, emphasizing its lack of investor protection. However, Longo opined:　　Crypto is on our doorstep, here and now, and being driven by extraordinary consumer and investor demand. The implications for consumers are potentially huge.　　While noting that the securities regulator is working with lawmakers to develop rules for cryptocurrencies, he stressed that many crypto assets are currently unregulated so investors are on their own when investing in them.　　“At present many crypto assets are probably not financial products,” he explained. “ASIC has already provided some guidance on exchange-traded funds linked to crypto assets — they at least are financial products, and traded on a licensed exchange, so there will be some protection there.”　　Nonetheless, the ASIC chief cautioned: For the most part, for now at least, investors are on their own.　　Earlier this month, Commonwealth Bank of Australia (CBA or Commbank), the countrys largest bank, announced that it will start allowing some clients to buy, sell, and hold cryptocurrencies directly using its app. This pilot program is in partnership with cryptocurrency exchange Gemini.　　The banks

2021-11-24Deep Dive

IMF Warns El Salvador Against Using Bitcoin as Legal Tender After 'Bitcoin City' Announcement

The International Monetary Fund (IMF) has warned El Salvador against using bitcoin as legal tender due to various risks associated with cryptocurrency. The warning came one day after Salvadoran President Nayib Bukele announced his plan to build a “bitcoin city” powered by a volcano and financed by bitcoin bonds.　　 IMF Says El Salvador Shouldnt Use Bitcoin as Legal Tender　　The International Monetary Fund (IMF) warned El Salvador on Monday that the country should not use bitcoin as legal tender, citing various risks associated with the cryptocurrency.　　El Salvador is the first country in the world to adopt bitcoin as legal tender alongside the U.S. dollar which it has used for two decades. The countrys bitcoin law went into effect in September. Furthermore, El Salvador has purchased 1,120 BTC, according to Salvadoran President Nayib Bukele.　　The IMF regularly undertakes Article IV missions to member countries to consult with government officials before they request to use its resources. The IMF explained that for El Salvador, “The adoption of bitcoin as legal tender, the regulation and supervision of bitcoin services providers, and e-wallet Chivo were also discussed.”　　In its “Staff Concluding Statement of the 2021 Article IV Mission” for El Salvador, the IMF detailed:　　“Given bitcoins high price

2021-11-24Deep Dive

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