Coinbase shares drop after SEC legal actions
Shares in Coinbase Global Inc (NASDAQ:COIN) are down more than 11% at press time on June 6, as the cryptocurrency exchange is the subject of legal action by the SEC, which alleges unregistered operations. SEC Chairman Gary Gensler commented: “ Coinbase’s alleged flaws deprive investors of critical protections, including rulebooks that prevent fraud and manipulation, proper disclosure, safeguards against conflicts of interest, and routine inspection by the SEC”. Concurrent with the SEC announcement, a task force comprised of 10 state security regulators from Alabama, California, Illinois, Kentucky, Maryland, New Jersey, South Carolina, Vermont, Washington and Wisconsin issued a demonstration order against Coinbase. Coinbase has 28 days to respond to the order to stop selling unregistered securities in Alabama. Since its stock exchange debut in April 2021, Coinbase shares have dropped 88% from their all-time high.
Binance hires former OKX veteran as VP of Global Marketing
Binance has hired Rachel Conlan, a former OKX veteran, as VP of Global Marketing. Conlan will be responsible for leading Binance’s marketing and brand campaigns as the company looks to reinforce its industry leadership position. Her vast experience will help drive blockchain adoption and build the industry. Conlan will oversee the regional and global marketing teams, as well as brand and entertainment partnerships, including collaborations with Cristiano Ronaldo, The Weeknd and Alpine Formula 1.” I am thrilled to embark on this journey with Binance, a truly world-class organization that has earned the trust of millions around the world”, said Conlan.
OKX teams up with Komainu platform for secure asset custody
OKX, the world’s second-largest cryptocurrency exchange, has joined the Komainu Connect escrow management platform, enabling institutional clients to securely and seamlessly trade escrow assets. This strategic partnership aims to provide secure and reliable custody solutions for digital assets, driving trust and innovation in the industry. Komainu, established in 2018, provides custody services to various institutions, including exchanges, financial institutions, asset managers, corporations and government agencies. “This strategic partnership marks a milestone in our mission to provide secure and compliant digital asset custody solutions. OKX’s reputation as a leading cryptocurrency exchange, combined with our expertise in institutional-level custody services, is paving the way for a new era of trust and innovation in the industry“, said Nicolas Bertrand, CEO of Komainu.
Bitget releases updates to its Broker Program
Bitget has released major updates to its Broker Program to provide additional benefits and support to brokers. The enhanced program includes advanced features, comprehensive support and detailed performance data. The updated program provides substantial collaborations and opportunities for brokers. “As one of the leading cryptocurrency exchanges, Bitget is always improving to better support our community”, said Gracy Chen, managing director of Bitget.
Members of US Congress demand Tax Regulation for cryptocurrencies
Two members of the US Congress, Brad Sherman and Stephen Lynch, demanded tax regulations for the crypto industry in a letter to the Treasury and the IRS. They highlighted tax evasion caused by lack of reporting and called for the immediate enactment of the proposed regulations to “close the tax gap and bring the cryptocurrency industry into full tax compliance.” The Biden administration has renewed push for a 30% tax on cryptocurrency mining, sparking uncertainty among crypto advocates.
Swift and Chainlink team up on blockchain connectivity tests
Swift and Chainlink will join dozens of financial institutions in tests to explore connectivity between various blockchain networks. TradFi institutions such as DTCC, ANZ, BNP Paribas (USOTC:BNPQY), BNY Mellon (NYSE:BK), Citi (NYSE:C), Clearstream, Euroclear and Lloyds Banking Group (NYSE:LYG) will use Swift’s infrastructure for transferring tokenized assets between blockchains. Chainlink (COIN:LINKUSD) will provide connectivity on public and private blockchains for these experiments. The move is seen as a significant step forward for the crypto industry and its expansion beyond the trillions of dollars. “Banks hold the most amount of capital globally and if our industry grows beyond the trillion single digits then the banks will have to step in and in reality I think it will be the banks and their customers that will drive the blockchain industry past $10 trillion“, said Chainlink co-founder Sergey Nazarov.
Amboss release tool to generate income on the Lightning Network
Data analytics firm Amboss has released Lightning Network Rate (Liner), a tool that simplifies the process of generating income on Bitcoin’s Lightning Network. Service providers can now obtain important information about income opportunities on the network, maximizing transaction volume and providing liquidity. The Liner will be the benchmark rate for measuring returns on committed capital. Amboss seeks to offer Bitcoin yields without giving up custody, differentiating itself from other platforms. “ We operate a liquidity market. If you want to buy a channel from someone who has an offer listed, you can do that and compare prices ,” said Jesse Shrader, CEO and co-founder of Amboss. “This is just a part of provisioning this liquidity. On the other hand, the person who is providing the liquidity gets some income from it ”.
Zodia Custody and Blockdaemon offer staking to institutions
Zodia Custody, a cryptocurrency storage provider, has announced a partnership with Blockdaemon to offer crypto staking to institutional clients. This partnership aims to take advantage of the growing institutional interest in staking as Ethereum completes its transition to proof-of-stake. Zodia Custody, a subsidiary of Standard Chartered, claims to be the first bank custodian to offer this service, while Blockdaemon has launched a wallet to help financial institutions and custodians manage crypto assets.
CFTC approves Cboe Clear for clearing digital asset futures
The Commodity Futures Trading Commission (CFTC) has approved Cboe Clear Digital, LLC’s amended registration application, allowing it to act as a derivatives clearing organization (DCO). This allows Cboe Clear to offer clearing services for digital asset futures in addition to previously authorized secured futures and swaps. “ The application is accompanied by prudent risk mitigation measures implemented by Cboe ,” said CFTC Commissioner Christy Goldsmith Romero, adding that the application was in “ absolute contrast ” to that of bankrupt crypto exchange FTX “ for a market structure direct to the customer disintermediated bespoke”. The parent company, Cboe Digital Exchange, LLC, is registered with the CFTC as a designated contract market, and Cboe Digital holds SOC 1 Type II and SOC 2 Type II certifications to ensure security and compliance.
Luxembourg competition authority investigates blockchain technology
The Luxembourg competition authority has initiated a market study on blockchain technology, potentially the first investigation of its kind in the Web3 economy. The government sees blockchain as crucial to the digital and environmental transition. The study will analyze competition between blockchain-based companies and existing Web2 companies, documenting anti-competitive practices. The project could open up new avenues for securing Web3. The European Commission also plans to issue a policy paper on the metaverse, considering options to avoid the squeezing of smaller companies by large companies. “ To my knowledge, this is the first market study undertaken by a regulatory agency whose aim is to protect Web3, not attack it ”, said Thibaut Schrepel, an associate professor at the University of Amsterdam who will help with the investigation as an external expert.
Louis Vuitton launches NFT “Treasure Trunks” collection
Louis Vuitton is launching the “Treasure Trunks” collection as part of its foray into the world of NFTs. This new lineup combines physical and digital elements, allowing owners access to exclusive products and future experiences. The brand is exploring the potential of NFTs to enhance the luxury ownership experience by closing the gap between the virtual and physical realms. With the VIA Treasure Trunk, which comes with a price of €39,000 per piece, owners unlock previously unseen creations and become part of an exclusive community. The collection is produced in limited quantities and made available to enthusiasts and select collectors. Louis Vuitton fans can apply on June 8 to join the VIA Treasure Trunk waitlist.
Dew Drops raises $1.5 million in round led by Dream Ventures
Art platform Dew Drops announced its $1.5 million pre-seed round led by Dream Ventures. The platform combines art and technology via SMS to offer a direct-to-consumer curation experience. Dew Drops aims to simplify art discovery by providing a channel for artists to reach collectors. The platform uses text message communication to make digital collectibles available to consumers, removing technical hurdles and preserving the elements of Web3. Bryan Brinkman, renowned animator and digital pop artist, will be the first to release an art collection on the platform. The exclusive sale of his artwork will take place on June 8, 2023. ” While coinage experiences and platforms have improved dramatically in recent years, discovery is still the most difficult aspect for artists ”, commented Brinkman. “ I believe we can rely on both human and AI curation to help people discover artwork they connect with. Building a dedicated community requires consistent engagement with collectors ”.
Haun Ventures leads $10 million funding round for Argus
Crypto investment firm Haun Ventures has led a $10 million initial round of funding for Web3 game studio Argus. The round also saw participation from other venture firms and individual investors, including the former CTO of Coinbase. Argus is launching World Engine, a blockchain gaming software developer kit, aimed at supporting developers in building their own Web3 gaming ecosystems. The company will use the funding to expand its team and develop its tooling infrastructure. “ If we can create fertile ground for game developers to have crypto as a tool, some really cool new games will come out – and that will end up being super positive for people who play”, said Breck Stodghill, an investor at Haun Ventures.
Illicit funds from Atomic Wallet hack traced to Sinbad.io
Illicit funds from the $35 million Atomic Wallet hack were traced back to the Sinbad.io cryptocurrency mixer, used by North Korea’s Lazarus hacking group. Sinbad.io is likely a rebranded version of Blender.io which has already been sanctioned by the US Treasury Department. Victims are advised to report illicit transfers to popular exchanges. “ It is clear that the team is devastated as we are very proud of our safety. We are working day and night to resolve everything and come out of this crisis stronger than before “, said Atomic Wallet Marketing Director Roland Säde. The investigation is ongoing, but recent findings indicate that it may be too late for many victims.