Bitcoin experiences volatility on US jobs data
Bitcoin (COIN:BTCUSD) saw a quick test of the $27,000 mark when US employment data was released, resulting in a 2.1% drop in a single hourly candle. However, a subsequent rally took bulls back to the $27,800 range. The volatility was triggered by the unexpected rise in US nonfarm payrolls in September, leading to concerns about the Fed’s inflation-fighting policies and a possible interest rate hike in November. The reduction in Bitcoin open interest was also observed.
Solana updates blockchain with “confidential transfers” to increase user privacy
The v1.16 update of Solana, a layer 1 proof-of-stake blockchain, introduced “Confidential Transfers,” improving the privacy of encrypted SPL token transactions. This feature uses zero-knowledge proofs to encrypt balances and transaction values of Solana Program Library (SPL) tokens, increasing confidentiality. Additionally, the update brings improvements to zero-knowledge support, reduces hardware requirements for validators, and introduces resizable data accounts. These improvements could have implications for exchange listings, as regulations in some jurisdictions have affected privacy coins.
MoonPay launches cryptocurrency exchange functionality on its app
Crypto payments infrastructure company MoonPay has launched an exchange functionality on its retail-focused app. Users can now exchange one cryptocurrency for another within the app. MoonPay’s approach to exchange is gas-efficient as it avoids the need for complex smart contracts. With 16 million customers worldwide, MoonPay expands its offerings beyond payment infrastructure, including apps and NFTs, following a $3.4 billion valuation in 2021.
Aeternus Foundation announces listing of ATRNO token on P2B exchange
The Aeternus Foundation has revealed plans to list its ATRNO token on one of Europe’s leading P2B cryptocurrency exchanges, aiming to revolutionize the blockchain industry by reducing transaction fees and processing times. The ATRNO token will be used for transactions in sectors such as travel, gaming and e-commerce. Additionally, Aeternus plans to enable instant international transfers and global acceptance of ATRNO as a native currency. The coin operates on a Proof-of-Stake protocol, eliminating the need for third-party fees. The token supply will be divided between several purposes, including social welfare and development.
FTX co-founder confesses to electronic fraud in financial collapse trial
Gary Wang, co-founder of FTX, has admitted in court to his involvement in electronic frauds and deceptive practices, alongside Sam Bankman-Fried, former head of FTX. Bankman-Fried is facing accusations of embezzling billions from investors and customers to purchase luxury properties and influence cryptocurrency regulations. Wang also disclosed that he allowed Alameda Research to withdraw unlimited funds from FTX, totaling an astounding $8 billion, through Alameda Research. Additional witnesses, including former executives, are scheduled to testify in the trial. Bankman-Fried has pleaded not guilty to the charges.
Former Voyager CEO Stephen Ehrlich faces possible coercive actions by US regulators
According to sources, US regulators are considering enforcement action against Stephen Ehrlich, former CEO of Voyager, following an investigation by the CFTC’s Enforcement Division. The agency alleges that Ehrlich misled clients about the safety of their assets in violation of CFTC rules. Voyager resumed withdrawals in June but faces the possibility of fines and other non-criminal sanctions. The decision is in the hands of the CFTC commissioners, who will vote on the actions to be taken in the coming days. Ehrlich claims he is facing unfounded accusations and has expressed his intention to contest them.
Arkham Intelligence accused of exploiting vulnerabilities in crypto exchanges to track users
Arkham Intelligence, a cryptographic intelligence company, faces accusations of exploiting vulnerabilities in major cryptocurrency exchanges such as Binance and FTX to uncover users’ personal information. A former engineer, identified as ‘Kevin’, claims in a video that Arkham used “backdoor” exploits to link exchange users to their private cryptocurrency wallets. The report also makes allegations of securities violations and questionable management practices at the company. Both Arkham and Binance have yet to formally respond to the allegations.
Binance Market Share continues to decline amid regulatory challenges
Binance, one of the leading global cryptocurrency exchanges, saw its market share in the spot segment fall for the seventh consecutive month in September 2023, according to CCData. Binance’s share fell from 38.5% in August to 34.3% in September. Furthermore, the exchange’s share of the derivatives market also decreased from 53.5% in August to 51.5% in September. This comes amid regulatory challenges in the US and changes to Binance’s trading fees.
Nexo adjusts UK offerings to comply with new FCA crypto rules
Crypto platform Nexo plans to gradually modify its products for UK customers in response to the country’s new regulations. From October 8th, Nexo will phase out cashback payments for transactions on Nexo Exchange and Nexo Card, referral and affiliate programs. These changes aim to comply with new cryptocurrency promotion rules set by the UK Financial Conduct Authority, which require registration and pre-approval of advertisements and adjustments to systems to ensure compliance.
Backed issues first tokenized security product on Base
Backed, a real-world asset (RWA) tokenizer platform, has launched bIB01, the first tokenized security product on Base, a Layer 2 blockchain on Ethereum. The issued tokens (bTokens) track different assets, including US Treasury ETFs. They operate under the Swiss DLT law and are based on ERC-20 tokens, collateralized by the underlying asset. Backed has already issued b1B01 on the Ethereum and Gnosis networks, with a combined market capitalization of over $37 million. This expansion to Base is seen as an opportunity to experiment with tokenized securities products on a low-cost, developer-friendly chain.
Ledger announces layoffs of 12% of its team due to market challenges
Hardware wallet maker Ledger plans to reduce its staff by 12% due to economic challenges. CEO Pascal Gauthier mentioned that despite the difficulties, the company continues to lead the sector and has maintained its existing priorities. He also highlighted the imminent launch of Ledger Recover, a feature that allows users to regain access to their wallets after losing important information, despite previous controversies over data storage with third parties. Ledger emphasized that this feature will be optional, although Gauthier describes Recover as a “necessary service for the next wave of new users.”
Canadian regulators set interim rules for stablecoins
The Canadian Securities Administrators (CSA) have issued interim terms and conditions to guide cryptocurrency exchanges and stablecoin issuers, following their reaffirmation that some stablecoins can be considered securities. The rules require stablecoin issuers to maintain verifiable reserves with qualified custodians and disclose information about governance, tokenomics and operations. The aim is to protect investors and improve confidence in the cryptocurrency market. However, the CSA warned that the market remains risky and that the rules do not constitute an endorsement of any asset or exchange.
ESMA issues second consultation document on crypto-asset regulations
The European Securities and Markets Authority (ESMA) has published a consultation paper on Markets in Crypto-Assets (MiCA) mandates in five key areas, including sustainability, post-trade transparency and record keeping for crypto-asset providers. The regulator seeks feedback from stakeholders and plans to submit draft technical standards to the European Commission by June 2024, with a third consultation package expected in the first quarter of 2024. MiCA aims to regulate activities related to cryptoassets in the European Union.
Taiwan plans to pass special bill to regulate cryptocurrencies
Lawmakers in Taiwan are working to pass a special bill by the end of November 2023 aimed at regulating the cryptocurrency market. The aim is to avoid “regulatory arbitrage” and deal with growing activity in offshore markets. At a public hearing held on October 6, authorities discussed the draft proposal. This follows recent guidelines from the Taiwan Financial Supervisory Commission to improve protection for cryptocurrency investors, including rules for separating assets from exchanges and approvals required for foreign virtual asset service providers.
Cryptocurrency wallets linked to fentanyl trafficking sanctioned by the US
The US OFAC has imposed sanctions on several cryptocurrency wallets linked to illegal fentanyl trafficking. The wallets were used by six entities, including individuals and the company Valerian Labs, to facilitate illicit operations. The US government has flagged 17 wallet addresses spanning Bitcoin, Ethereum and Tron networks. The majority of illicit transactions on the Ethereum and Tron networks involved stablecoins, with estimates that these addresses received nearly $3.8 million in cryptocurrencies, potentially representing drugs trafficked into the US and other countries.
Komainu receives regulatory approval to offer crypto custody services in the UK
Komainu, a cryptocurrency custody company co-created by CoinShares, Ledger and Nomura, has received approval from the UK Financial Conduct Authority (FCA) to register as a custodial wallet provider. This approval allows Komainu to offer crypto custody services in the UK, including the use of its Komainu Connect platform for collateral management. The company is already regulated in Dubai and Jersey, and this approval strengthens its position as a trusted service provider in the cryptocurrency industry.
Texas bans decentralized lending company due to ties to Russian government
The Texas State Securities Board has issued a cease and desist order against BigWhale.io, a decentralized finance (DeFi) protocol, after the company alleged ties to the Russian government. The platform was accused of promoting investments in digital asset lending through a decentralized application (dapp), with promises of high interest rates and a multi-level marketing scheme. Recently, BigWhale.io claimed to have been the victim of a hack, threatening to use Russian government assets in an alleged quest for extrajudicial revenge.