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Australian Securities and Investment Commission (ASIC) Introduces New Safeguarding Customer from Risks of Cryptoassets 

By
Adam Barry
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0

The Australian Securities and Investment Commission (ASIC) wants to concentrate more on safeguarding customers from cryptoassets and online criminal activity. A portion of the market regulator’s “Corporate Plan” for 2022–2026 has been made public, highlighting the regulation of digital assets as one of its main strategic initiatives for 2022–2023.

ASIC introduces new regulations to protect investors against crypto risks 

According to a paper released by ASIC Chairman Joseph Longo, the regulator acknowledged that the arrival of innovations had changed the regulatory landscape. Digital assets are one of these advances, and it has brought new risks for investors.

The ASIC declares its dedication to taking steps to safeguard investors from these risks, particularly those presented by cryptoassets. It plans to accomplish this without stifling innovation, though.

ASIC will take steps to safeguard investors from risks presented by digital assets that come under our purview. The ASIC is devoted to using all of its authority to protect the credibility of the Australian financial markets.

It plans to take on a number of activities, such as encouraging the creation of a strong regulatory framework centered on consumer rights in cooperation with the Treasury Department, enforcing consumer protection laws, and monitoring Product Disclosure Statements.

The ASIC further stated that it intended to enforce a regulatory framework for exchange-traded products (ETPs) that deal with cryptoassets, educate the public about the risks associated with the market for virtual currencies, and collaborate with local and global peers to create international legislation on cryptoassets and DeFi.

Frauds involving digital assets rocked Australia

The research is released at a period when fraudulent cases involving digital assets are on the rise in Australia. According to the ASIC, there have been more than 4,730 documented cryptocurrency investment scams, and Australians have lost close $242 million to these schemes in 1H 2022.

According to a recent statement by Longo, the ASIC intends to increase public awareness because it has discovered that a number of investors in the cryptoassets sector were unaware of the market’s risks.

BlackRock (NYSE: BLK) Unveils New Private Spot Bitcoin (BTC) Trust Days After Partnering With Coinbase 

By
Adam Barry
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0

BlackRock (NYSE: BLK), the biggest investment manager worldwide, which is in charge of managing over $10 trillion in assets, has started a new private spot Bitcoin (BTC) trust, according to a blog post that was published on Thursday.

Blackrock is getting considerable interest from institutional investors for BTC

After subtracting costs and duties related to the trust, the fund, that is exclusively accessible to large investors from the US, attempts to track the performance of Bitcoin. The investment manager’s decision  comes one week after partnering with Coinbase to give clients access to crypto trading

In a statement defending the move, BlackRock said, “Despite the steep downturn in the digital asset market, we are still seeing substantial interest from some institutional clients in how to efficiently and cost-effectively access these assets using our technology and product capabilities. Bitcoin is the oldest, largest and most liquid digital asset and is currently our clients’ primary subject of interest within the digital asset space.”

If they don’t accept investments from regular investors, venture capital trusts are immune from the registration laws of American financial regulators. Others, nevertheless, such as the Grayscale Bitcoin Trust, may continue to conduct open trading on OTC exchanges without having a Securities and Exchange Commission registration.

Apart from stablecoins, Bitcoin still accounts for about 50% of the sector’s market value. BlackRock stated that it is pleased by groups like Energy Web and RMI, which are establishing projects to increase accountabilty in viable energy use in BTC mining in relation to the blockchain’s use of energy.

Blackrock partnered with Coinbase to offer clients trading services 

Crypto exchange Coinbase and BlackRock teamed up last week in a bid to give customers direct crypto access, beginning with Bitcoin. By registering with Coinbase Prime, customers of BlackRock’s Aladdin institutional wealth management platform shall receive access to crypto trading, storage, quality brokerage, as well as reporting tools. BlackRock revealed that it has been evaluating four aspects of digital currencies, including tokenization, cryptocurrency assets, stablecoins, and public blockchains, as well as the ecosystems surrounding them.

Afghan Authorities Close 16 Crypto Exchanges And Detain Those Involved in Herat Province

By
Adam Barry
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0

Afghan enforcement agencies have shut down over a dozen cryptocurrency exchanges in Herat, and those in charge have been taken into custody. The assault follows the imposition of a prohibition on foreign exchange trade via the internet, which the Taliban appear to have extended to cryptocurrency trading as well.

Afghan authorities close 16 crypto exchanges 

A story released by the Ariana News portal indicated that Afghan security personnel had shut down various crypto exchanges in the western Herat province over the past week. The site said that around 16 platforms that traded digital currency had been closed.

Sayed Shah Sa’adat, the head of the Herat police department’s counter-crime department, said that the Da Afghanistan Bank (DAB) (nation’s monetary agency) had warned that cryptocurrency trading had resulted in numerous issues, including people being conned. He added that they took action, shuttered their outlets, and detained all the exchangers involved.

The head of the Herat Money Exchangers’ Union, Ghulam Mohammad Suhrabi, said that Afghan businesses open crypto accounts abroad. He said that cryptocurrency is fresh on the marketplace and has considerable volatility.

Afghan Central Bank issued a directive banning online FX trading 

As reported in a Bloomberg article, the Kabul central bank reportedly issued a press release in late June banning online FX trading. The Afghan authorities are likely referring to this announcement. Through its spokesperson, the agency warned that anybody participating in this behavior will be prosecuted.

The bank representative indicated, “Da Afghanistan Bank considers online forex trading illegal and fraudulent, and there is no instruction in Islamic law to approve it. As a result, we have banned it.”

According to Ariana News, DAB released a new notice in mid-July reiterating the directive. The bank claimed that Afghans continued to trade despite the restriction, particularly in the capital Kabul. The authority highlighted that it had not granted any individual/business a license to conduct business online. Further anyone conducting online FX business is doing so in violation of the law now.

UNCTAD Makes Proposals For Cryptocurrencies Regulation In Developing Countries 

By
Adam Barry
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0

The United Nations Conference on Trade and Development (UNCTAD) proposed restrictions on cryptocurrencies in developing economies in a series of policy documents that were released on August 10.

Virtual currencies complicate national regulatory procedures 

Private virtual currencies all throughout the world complicate national regulatory procedures, according to UNCTAD, a division of the UN Secretariat. Although some individuals have profited from cryptocurrencies, they are still speculative financial instruments that have the potential to be harmful to society as a whole.

Three policy briefs released by UNCTAD go in-depth on the costs and risks connected with cryptocurrencies, especially the threats they present to economic stability, the utilization of domestic assets, and the security of monetary systems.

Claims That Cryptocurrencies Are Dangerous

According to UNCTAD, capital regulations, which are widely implemented in developing countries to ensure fiscal sustainability, may become less effective as a result of cryptocurrencies.

While cryptos can facilitate remittances, UNCTAD issued a warning that they may also facilitate tax evasion through unauthorized financial activities, much like a tax haven whose ownership is challenging to track.

Stablecoins present special issues in developing countries because there is a great demand for reserve currencies, according to UNCTAD. The International Monetary Fund has also expressed concern about the risks that cryptocurrencies as legal tender may present.

UNCTAD suggested new regulations

Regulating cryptocurrency exchanges, digital wallets, and decentralized finance was suggested by UNCTAD. Furthermore, it’s possible that financial institutions won’t be permitted to store cryptocurrencies and stablecoins or offer auxiliary services.

Additionally, the authorities pushed for international coordination between cryptocurrency-related regulatory, information sharing, and taxing entities, as well as restrictions on cryptocurrency advertising. Finally, it suggested modifying capital restrictions to take into consideration cryptocurrencies’ global, decentralized, and pseudonymous nature.

On the flip side, cryptocurrencies need political goodwill if the central banks and government control the money supply. This is likely to reduce the benefits cryptos have. Currently, cryptos back the growth process of developing economies in limited ways.  The implementation of rules, the resulting price stability, and the uptake of cryptocurrencies all have a significant impact on future development.

Brazilian Payment Service PicPay To Offer Crypto Exchange Services To Users

By
Adam Barry
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0

 The popular Brazilian payment service PicPay has integrated a cryptocurrency exchange service that enables users to purchase Bitcoin (BTC) and Ether (ETH).

PicPay users can buy, sell and hold ETH and BTC in the app 

The company formally announced that users of PicPay can now purchase, sell, and hold either Bitcoin or Ethereum directly on the company’s app. PicPay emphasized that its decision was made as a result of the practical use cases that these digital assets offered, including security and numerous other advantages.

The firm stated, “Blockchain technology, which is behind coins like Bitcoin and Ethereum, is already used in the real estate sector, the insurance industry and even the art market, through non-fungible tokens.”

Customers can use the new cryptocurrency functionality, which is made possible by a collaboration with the well-known cryptocurrency firm Paxos, to use the US dollar-backed stablecoin USDP that Paxos has produced. Paxos, which serves as a broker and custodian, is renowned for its partnerships with some of the largest mainstream financial institutions in the world, including PayPal and Venmo.

The integration is PicPay’s first step in introducing its 30 million clients to digital assets and assisting them in comprehending how individuals can take advantage of the promise of the developing asset class. The Brazilian fintech app is developing a feature that will let users purchase using cryptocurrency as well. 

PicPay is among disruptive players in the payments sector in Brazil 

PickPay’s crypto head Bruno Gregory said, “PicPay is one of the most disruptive players in payments in Brazil, and our goal is to lead the growth of the crypto market. One of the major challenges associated with crypto adoption is eliminating its complexity by expanding information about the technology so that everyone can take advantage of the new asset class.”

Brazil has recently seen a surge in the acceptance of cryptocurrencies, with prominent local companies such as Mercado Bitcoin actively extending their operations. In June 2022, a measure to authorize cryptocurrency payments will be introduced by local MPs as part of their efforts to establish crypto-friendly regulations.

Binance Partners With Mastercard To Launch Prepaid CryptoCard in Argentina 

By
Adam Barry
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0

The Binance Mastercard is expected to be available in Argentina for the first time in Latin America. Binance revealed the development in a press statement on August 4, 2022, in an effort to achieve rapid cryptocurrency acceptance in retail in a practical way.

Binance unveils prepaid cryptocurrency card in Argentina 

Users of Binance in Argentina who have verified their identities using the Documento Nacional de Identidad would be able to apply once the card is introduced. Individuals can purchase at any store using the service using Binance Coin (BNB), Bitcoin (BTC), or some well-known stablecoins. The complete list of Altcoins that are compatible with the new cryptocurrency card has not yet been provided by Binance.

 Binance partnered with Mastercard to unveil the prepaid cryptocurrency card in Argentina, bringing cryptocurrency payments to users in the country. 

Walter Pimenta, EVP at Mastercard’s Latin America  & Caribbean Headquarters, said, “Our work with digital currencies builds on our strong foundation to enable choice and peace of mind when people shop and pay.”

Indeed, 8 percent cashback at participating retailers and peace of mind for cryptocurrency fans will arrive simultaneously. Additionally, users of the Argentina Binance Card will be capable of withdrawing money for free from any ATM in the nation that accepts Mastercard. The Binance Card, according to Maximiliano Hinz, general manager of Binance Latin America, is a key step in fostering wider cryptocurrency use and worldwide adoption.

Crypto adoption in Latin America is growing. 

The Binance Mastercard’s technology instantly converts bitcoin to fiat for every transaction, relieving businesses of the risk associated with cryptocurrencies. According to crypto companies, Latin America appears to be the preferred place for testing out cryptocurrency-related items, and Binance has plans to keep growing there.

Honduras just last week unveiled the “Bitcoin Valley” near Santa Lucia in an effort to draw tourists and hasten the adoption of cryptocurrencies. El Salvador was the first nation to accept Bitcoin (BTC) as its official currency and has developed a reputation as a devoted evangelist for blockchain technology.

Cryptocurrency Exchange Coinbase Announces Partnership with BlackRock

By
Adam Barry
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0

The biggest asset manager in the world, BlackRock (NYSE: BLK), and leading cryptocurrency exchange Coinbase (NASDAQ: COIN) have established a partnership. Through this agreement, BlackRock’s Alladin investment management platform will be able to offer institutional clients access to digital currencies.

Coinbase partners with Asset manager BlackRock 

Five years following BlackRock Chairman Larry Fink’s labeling of Bitcoin as an “index of money laundering,” the biggest asset manager in the world is getting ready to start providing cryptocurrency services after partnering with Coinbase.

Aladdin, an investment management platform from BlackRock, will be linked with Coinbase Prime under the cooperation, making Aladdin’s institutional clientele Coinbase customers.

For institutional investors, Aladdin will make it easier for them to access cryptocurrency trading, storage, reporting, and prime brokerage tools.

In accordance with a blog post on Coinbase’s official website, Bitcoin will be the initial virtual currency made available through the alliance. Over 200 institutions use Aladdin, including banks, companies, asset managers, insurers, pension funds, and government agencies.

Coinbase share price jumped after the announcement

After the crypto exchange announced its collaboration with BlackRock, its publicly listed Coinbase Global (COIN) stock rose by almost 31% on Thursday, reaching a high of $108.9.

Although COIN retraced on August 5 to trade at $88.9 a share at the time of publication, it still maintained a +10.01 percent gain. This is despite its quick ascent.

Wedbush Securities analyst Dan Ives praised the BlackRock cooperation as a “huge confidence enhancer and a critical boost for Coinbase after a terrible year” in response to the increase in Coinbase share prices.

The partnership between Coinbase and Blackrock is the latest move that market the growing number of traditional investors dabbling in cryptocurrencies. 

In other developments, Coinbase has asked the US Supreme Court to send two recently submitted complaints into arbitration. In both lawsuits, federal judges had previously denied Coinbase’s request to arbitrate the issues that the exchange claimed were mandated by its contract terms. The exchange is challenging these early rulings. Coinbase has requested that the Supreme Court consider both its appeals as well as an urgent intervention.

India’s Directorate of Enforcement (ED) Freezes $8.1 Million belonging to Crypto Exchange Wazir as part of Laundering Probe

By
admin
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0

As part of a probe into immediate private loan fraud, India’s Directorate of Enforcement (ED) has said it frozen approximately $8.1 million in money and searched a location related to crypto exchange WazirX. 

WaxirX accounts are frozen due to a breach of laundering regulations. 

The Directorate of Enforcement accused WazirX of facilitating transactions through unidentified fintech firms “to purchase crypto assets and then launder them abroad” as a part of a plan comprising Chinese-backed businesses evading India’s licensing requirements, according to a statement released on Friday. The ED claimed that as part of its investigation, it searched a location associated to co-founder Sameer Mhatre and directed WazirX accounts holding 646.7 million Indian rupees to be frozen.

The regulator stated that the inquiry was still ongoing. The ED asserted that WazirX and Binance’s transactions were subject to “weak regulatory oversight” and “low KYC rules” and that the crypto exchange failed to keep track of the necessary data to confirm the source of the funds used to commit the alleged fraud.

WazirX turned down a request to provide information on transactions APP firms

The ED stated that despite multiple requests, WazirX declined to provide the cryptocurrency transactions of the questionable fintech APP firms and expose the wallets’ KYC.

“WazirX is not able to give any account for the missing crypto assets. It has made no efforts to trace these crypto assets. By encouraging obscurity and having lax AML norms, it has actively assisted around 16 accused fintech companies in laundering the proceeds of crime using the crypto route,” added the ED.

Binance CEO Changpeng Zhao stated on Friday that the company had no stake in Zanmai Labs, the company running WazirX. Zhao added that B  “Binance simply offers wallet solutions for WazirX, and it is WazirX that is in charge of managing KYC and other exchange-related activities.

Nischal Shetty, the director of WazirX, refuted many of CZ’s assertions on Twitter by stating that Binance Zanmai Labs purchased the cryptocurrency exchange. Furthermore, he said that running cryptocurrency trading pairs and handling withdrawals was under the purview of Binance.

Coinbase Facing Two New Lawsuits Amid Ongoing US SEC Probe

By
Adam Barry
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0

Regulators are now paying more attention to Coinbase (NASDAQ: COIN), and the business is now the subject of numerous lawsuits. The US Securities and Exchanges Commission (SEC), which is already looking into the San Francisco-based bitcoin exchange, is now facing two more legal complaints from two different law firms.

Coinbase is facing two lawsuits for deceiving investors

Bragar Eagel & Squire, a law firm based in New York, announced on Thursday that it would sue Coinbase for allegedly making misleading statements regarding its corporate practices. In a separate lawsuit brought against the crypto exchange, Pomerantz LLP asserts that it is owed damages for any losses sustained as a consequence of the plaintiff’s contraventions of federal securities regulations. The plaintiffs are seeking compensation in this litigation.

Plaintiffs contend in both lawsuits that between April 14 last year and July 26, 2022, Coinbase made false and misleading statements about its business, activities, and compliance activities. The allegations allege that Coinbase did not disclose that user cryptocurrency was held in escrow at the company, rendering it a matter of bankruptcy proceedings in which clients would’ve been considered ordinary unsecured creditors of the business.

Additionally, it was claimed that Coinbase would not reveal that it let American individuals to trade cryptocurrencies that, despite its understanding and complacency, needed SEC certification as securities. The complaints contend that as a consequence of the earlier activities, Coinbase’s public claims were consistently, and to a large extent, incorrect and deceptive.

SEC investigating alleged trading of unregulated securities 

In the past, Coinbase has been a party to a number of legal disputes and contentious circumstances. The SEC is looking into Coinbase for purportedly dealing with unregulated securities, which is why the two new lawsuits have been filed. 

In a different complaint, Ishan Wahi, a former Coinbase global product manager, is charged with insider trading. Wahi entered a not guilty plea to two charges of conspiracy to commit wire fraud in a Manhattan federal court. He was detained in May while attempting to board a trip to India, and charges were filed against him in July.

Thailand Financial Regulator Issues Licenses To Four More Cryptocurrency Companies In The Country

By
Adam Barry
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0

The Thailand Securities and Exchange Commission (EC) has authorized four additional cryptocurrency firms in the country. 

Thai SEC offers licenses to four more cryptocurrency operators 

Four additional operators of digital assets received operating licenses from the SEC, according to local media on Thursday. However, the four firms are yet to start operations as the regulator is yet to inspect their business operations. 

These operators include cryptocurrency exchange T-BOX Thailand and crypto broker Krungthai XSpring, which is connected to one of the major banks in the nation. In addition, Coindee, a cryptocurrency advisor and investment manager, and investment manager Leif Capital Asset Management both received regulatory clearance.

There are currently 21 fully licensed operators of digital assets in Thailand, including nine exchanges, nine brokers, and three fund managers. Despite the central bank’s attempts to impose restrictions, Thailand’s military-backed administration has generally been accepting of cryptocurrencies.

According to the report, a further significant participant is planning to enter the booming Thai cryptocurrency sector. Gulf Innova and Binance Capital Management are developing the “Gulf Binance” cryptocurrency exchange and brokerage joint venture.

As the bull market gained traction, crypto transactions in Thailand increased by about 600 percent at the beginning of 2021.

The decision was made in the midst of unrest over Zipmex, a Singaporean crypto exchange that also has operations in Thailand. As a result, users in Thailand utilizing Zipmex’s Z Wallet were unable to withdraw money as of late last month. Soon after, the SEC set up a hotline where Zipmex clients could report their losses in detail.

SEC opened an investigation on Zipmex activities on Monday

The SEC opened a probe into Zipmex on Monday, alleging that the corporation may have broken trading regulations by halting withdrawals. It claimed that the company gave insufficient justifications for such acts as “market fluctuations.”

According to Cointelegraph, Zipmex began withdrawals for Ripple (XRP) and Solana (SOL) on Tuesday after the regulator directed the firm to restart trading activities. However, both withdrawals from its ZipUp+ service and for larger assets like Bitcoin (BT) and Ether (ETH) are still halted.

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