The Ultimate Comprehensive and Up-to-Date Source to Master the Crypto Markets:
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17 Million Users Claimed Dogs Airdrop on TON Reaching ‘Unheard of’ Levels of Web3 Engagement
Sep 13, 2024 | 02:30 amThe TON team highlighted the magnitude of the recently concluded dogs token generation event and its subsequent airdrop, which disrupted its network several times. On social media, the TON team stated that unique active users rose to 1.1 million, reaching 14.4 million transactions in one day. In addition, dogs made history as the token with […]
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Kraken Argues Cryptos Are Not ‘Illegal Securities’: Seeks Jury Trial against SEC Lawsuit
Sep 13, 2024 | 02:03 amKraken, which is facing several allegations brought by the Securities and Exchange Commission (SEC), is now seeking a jury trial in the lawsuit against it, according to a court filing on Thursday. The exchange also argued that the existing legal frameworks do not cover cryptocurrencies, thus they cannot be termed securities.A Legal Pushback from KrakenFirst reported by Coindesk, the legal representatives of the US-headquartered crypto exchange reiterated their denial of any illegal conduct, responding to each allegation and presenting 18 other defences.The SEC moved against Kraken last November, alleging that it was illegally operating an unregistered securities exchange, broker, dealer, and clearing agency. Furthermore, the exchange has been accused of commingling customers’ money and crypto assets with its own.However, Kraken denied the allegations multiple times and even asked the court to dismiss the lawsuit earlier.Interestingly, Binance and Coinbase are also facing similar lawsuits brought by the SEC. However, Coinbase has not been accused of mixing customers’ funds with its own.Questioning the LegalityNow, Kraken's defence is based on interpretations of the Securities Act and the Exchange Act, as neither includes digital assets. Kraken's lawyers argue that the exchange did not register because it was not required to do so under existing laws.“Kraken did not violate Sections 5, 15(a) and 17A of the Securities Exchange Act of 1934 because ADA, ALGO, ATOM, FIL, FLOW, ICP, MANA, MATIC, NEAR, OMG, and SOL [...] are not securities or investment contracts,” the exchange noted in the motion filed in court. “The digital assets themselves cannot be investment contracts because they carry none of the rights and obligations of a share of stock, a bond, or any other financial asset that Congress has said is subject to SEC regulation.”Kraken also accused the regulator of overstepping its authority, further adding that it took action against the crypto exchange without due process and fair notice.“Due to the lack of clarity and fair notice regarding Kraken’s obligations under the law [...] Kraken lacked fair notice that its conduct was prohibited,” the filing added. This article was written by Arnab Shome at www.financemagnates.com.
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MoonPay Lands AUSTRAC Registration for Aussie Crypto Services
Sep 13, 2024 | 02:02 amMoonPay has been registered with the Australian Transaction Reports and Analysis Centre (AUSTRAC) to provide digital currency exchange services in Australia. This registration may allow the company to establish local payment processing relationships across the country. As a result, Australian users of MoonPay could have access to alternative payment methods, including Osko and PayID.Meeting AML/CTF RequirementsAustralia continues to see growth in crypto asset adoption. A recent report indicated that one in five Australians has either currently or previously held crypto assets. In June, Australia launched its first Bitcoin ETF.As a registered company, MoonPay will need to comply with the Anti-Money Laundering and Counter-Terrorism Financing Act. This legislation regulates AUSTRAC’s functions, and MoonPay will be required to meet reporting, Know Your Customer (KYC), and record-keeping obligations.Meanwhile, MoonPay has partnered with PayPal to offer a crypto purchasing option for users in the US, as reported by Finance Magnates. This service allows transactions through PayPal using wallet transfers, bank transfers, and debit cards, aiming to improve the accessibility and convenience of buying and trading cryptocurrencies.MoonPay Registers with AUSTRAC to Offer Crypto Services in AustraliaMoonPay registers with AUSTRAC to offer crypto exchange services in Australia, adding local payment methods like Osko and PayID.#Blockchain #CryptoNewshttps://t.co/ipEqOM3Zk5— Global Crypto News (@GlobalCNNews) September 12, 2024Global Registration StatusIt should be noted that “MoonPay’s registration is not a license or endorsement by AUSTRAC.” In addition to Australia, MoonPay has received registrations in the U.K., Ireland, Italy, and Canada, as well as 44 Money Transmitter Licenses across the US.“MoonPay continues to advocate for simple and compliant exchange of crypto assets around the world,” said MoonPay Co-Founder and CEO, Ivan Soto-Wright. “We’re thrilled to bring our services directly to Australian users, and we will continue engaging with regulatory bodies globally to encourage innovation while prioritizing compliance and consumer safety.” This article was written by Tareq Sikder at www.financemagnates.com.
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Bitcoin Extortion Emails Demand Ransom, Show Google Maps of Victims’ Homes
Sep 13, 2024 | 01:30 amThe Douglas County Sheriff’s Office has alerted Minden, Nevada, residents to a scam involving threatening emails aimed at extorting money through bitcoin. The emails claim to possess personal details such as the victim’s home address, phone number, and internet browsing history. The scammer threatens to expose the victim’s browsing history unless a ransom is paid […]
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US Treasury Sanctions Cambodian Tycoon Over Crypto Fraud and Trafficking Links
Sep 12, 2024 | 23:30 pmThe U.S. Department of the Treasury has imposed sanctions on Cambodian tycoon Ly Yong Phat and his businesses, linking them to human trafficking and forced labor scams involving cryptocurrency fraud. Victims were manipulated into online scam centers, and trafficked workers were forced into labor for these schemes. The sanctions freeze U.S.-based assets and prohibit transactions, […]
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BRICS Gains Global Appeal as 34 Countries Show Interest, Putin Reveals
Sep 12, 2024 | 20:30 pmRussian President Vladimir Putin revealed that 34 countries have shown interest in joining BRICS activities, highlighting the global appeal of the group. He detailed Russia’s role in facilitating the integration of new members, sharing updates on BRICS activities under Russia’s chairmanship. 34 Countries Show Interest in BRICS, Putin Says Russian President Vladimir Putin said on […]
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Elon Musk Warns US Laws and Regulations Will Worsen Every Year Without Major Reform
Sep 12, 2024 | 19:30 pmTesla and Spacex CEO Elon Musk has warned that without substantial government reform, laws and regulations will worsen annually, potentially stifling major initiatives. He has reiterated his call for significant U.S. government changes and agreed to help former President Donald Trump lead a new government efficiency commission, an idea he proposed. Musk believes reducing wasteful […]
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Standard Chartered: Bitcoin Could Hit $125K Under Trump, $75K Under Harris
Sep 12, 2024 | 18:30 pmStandard Chartered has reaffirmed its projection that bitcoin will hit new all-time highs by the end of 2024, regardless of the U.S. election outcome. The bank’s digital assets head predicts bitcoin could reach $125,000 under Trump or $75,000 under Harris, with temporary drops under a Harris presidency. Regulatory concerns loom, but other factors, like U.S. […]
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Grayscale Launches XRP Trust — Cites Potential to Transform Legacy Financial Systems
Sep 12, 2024 | 17:30 pmGrayscale Investments has created a new trust for XRP, allowing accredited investors to gain exposure to the cryptocurrency known for facilitating cross-border transactions. The Grayscale XRP Trust functions like other single-asset crypto investment vehicles, holding only XRP. Grayscale’s head of product highlighted the potential of XRP to transform financial infrastructure. Grayscale Launches XRP Trust for […]
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Donald Trump Announces World Liberty Financial Launch — ‘We’re Embracing the Future With Crypto’
Sep 12, 2024 | 16:30 pmFormer U.S. President Donald Trump has announced the launch of his family’s cryptocurrency platform, World Liberty Financial, positioning it as an alternative to traditional banks. He encouraged users to join a live event on X next Monday. “We’re embracing the future with crypto and leaving the slow and outdated big banks behind,” Trump said. Donald […]
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Zano and Confidential Layer Partner for Secure, Private Cross-Chain Transactions
Sep 12, 2024 | 15:45 pmZano blockchain partnered with Confidential Layer to enable secure and private transactions across different blockchains. This allows users to keep their original assets (like ether or bitcoin) while adding Zano’s strong privacy features. Both the Zano and Confidential Layer teams see this as a significant step towards a digital economy where users have control over […]
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Lengthy Licensing Stumps Kenyan Fintech Startups
Sep 12, 2024 | 15:10 pmFintech startups face significant challenges when expanding to Kenya, primarily due to the lengthy and complex process of obtaining an operating license. Obtaining a payment service provider (PSP) license can take up to two years, forcing startups to rely on workarounds such as partnerships with established players like telcos and banks. High market entry barriers […]
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HTX Partners with IBEX to Expand Bitcoin Lightning Network in Emerging Markets
Sep 12, 2024 | 13:46 pmHTX has announced a collaboration with IBEX, a fintech company promoting innovations on the Bitcoin Lightning Network. This collaboration aims to promote faster, more affordable Bitcoin transactions while targeting emerging markets, including Asia, Latin America, and Africa.Enhancing Digital Asset PaymentsBoth companies seek to enhance digital asset payments for consumers and merchants by integrating Lightning Network technology. HTX, a global digital asset platform, plans to integrate IBEX’s Lightning Network into its ecosystem. The network, a second-layer protocol for Bitcoin, enhances transaction speed and reduces fees. The integration, currently in its testing phase, promises to improve the overall user experience by offering faster transaction confirmations and lower costs for Bitcoin users on HTX’s platform.The core appeal of IBEX’s technology lies in its ability to enable instant global settlements. Unlike traditional finance (TradFi) or decentralized finance (DeFi) systems, IBEX’s Lightning Network processes transactions in seconds. This makes it an ideal solution for scenarios requiring immediate payments, such as online shopping and international remittances.Additionally, the integration of Lightning technology significantly reduces transaction fees. Traditional blockchain networks often come with high transaction costs, which deter everyday use. With Lightning, these fees are minimized, benefiting both merchants and consumers.One aspect of the HTX-IBEX partnership is their joint focus on expanding into emerging markets. HTX’s established presence in Asia, coupled with IBEX’s Lightning Network settlement system, targets cryptocurrency adoption in regions like Latin America and Africa. By offering low-cost, fast Bitcoin payment solutions, HTX and IBEX aim to bring financial inclusion to regions where traditional banking systems remain inefficient or inaccessible.A Global Push for Bitcoin’s FutureIn addition to the technical collaboration, both companies plan to engage in co-branded marketing efforts. These will include social media campaigns, events, and brand-building initiatives aimed at increasing visibility and adoption in key markets. As part of this initiative, IBEX will provide support to HTX in exploring new opportunities in Latin America and Africa, including partnerships with local exchanges and thought leaders. In return, HTX will assist IBEX in breaking into the Asian market.The collaboration between HTX and IBEX signals a broader trend toward the increased integration of Bitcoin into mainstream financial systems. This unique approach positions both HTX and IBEX at the forefront of the ongoing evolution of digital payments, with the potential to reshape global financial systems. This article was written by Jared Kirui at www.financemagnates.com.
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Bitcoin Miners Go BRRR, While Profit Margins Go Brrrr-oke
Sep 12, 2024 | 03:10 amThe difficulty of mining Bitcoin (BTC) has surged to unprecedented levels, intensifying competition among publicly listed cryptocurrency miners from Wall Street and putting pressure on their profit margins. Despite the “miners go BRRR” (reference to a popular money-printing meme) at full speed, it's insufficient to keep up with the increase in network complexity.Bitcoin Mining Difficulty Reaches All-Time High, Squeezing Bitcoin Miners Profit MarginsAccording to data from crypto-mining tracker CoinWarz, mining difficulty increased by 3.5% on Wednesday, reaching a new record high. This metric, which reflects the computational power required to mine new Bitcoin, has been steadily climbing and is often seen as an indicator of future price movements.The rise in difficulty comes at a challenging time for miners, who are still grappling with the effects of April's “halving” event. This programmed reduction in mining rewards has already cut potential revenues by half, contributing to a roughly 10% drop in Bitcoin's price since then.“The 4th Bitcoin halving event cut the number of daily coins mined (and all else equal, the daily revenue opportunity) in half, resulting in lower margins and profitability across our coverage universe,” commented Reginald Smith and Charles Pearce in the recent JPMorgan report.However, the increasing difficulty has not deterred miners from expanding their operations. Bitcoin's hash rate, which measures the total computing power supporting the network, also hit an all-time high in September. This suggests that miners are betting on a significant price increase in the near future.Despite the challenges, Bitcoin's price has shown resilience, rising 38% year-to-date and reaching a peak of $73,798 in March. The cryptocurrency was trading at around $58,000 on Thursday.Higher Difficulty = Lower OutputThe mining industry's struggles are reflected in the stock performance of major publicly traded mining companies. Shares of Marathon Digital Inc. and Riot Platforms Inc. have fallen 31% and 54% respectively this year.“During the second quarter of 2024, our BTC production was impacted by unexpected equipment failures and transmission line maintenance at the Ellendale site operated by Applied Digital, increased global hash rate, and the April halving event,” said Fred Thiel, CEO of publicly traded miner Marathon Digital Holdings. The company's revenue for the second quarter was $145.1 million, missing the FactSet estimate of $157.9 million.This is also evident from the Bitcoin mining results for the last month. Argo Blockchain (NASDAQ: ARBK) reported mining 38 Bitcoin in August, down from 48 in July. At the same time, HIVE Digital Technologies (NASDAQ: HIVE) mined 112 Bitcoin, which is 4 less than the 116 Bitcoin reported the previous month.“We remain focused on our strategy of maintaining the lowest G&A expenses per Bitcoin mined, maximizing cash flow return on invested capital, and achieving high revenue per employee while minimizing share dilution,” commented Frank Holmes, Executive Chairman of HIVE.CleanSpark (NASDAQ: CLSK) and Bitfarms (NASDAQ: BITF) also reported a decline in their Bitcoin production compared to the previous month. As a result, August revenues for Wall Street’s Bitcoin miners fell to $828 million, the lowest in a year. This marks a 57% drop from March's peak, highlighting growing challenges in the mining sector. This article was written by Damian Chmiel at www.financemagnates.com.
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UK Tables New Bill to Clarify Legal Status of Digital Assets
Sep 12, 2024 | 01:26 amUK lawmakers introduced a bill in Parliament yesterday (Wednesday) that defines digital assets as “personal property” and categorises them as “things.” The proposed Property (Digital Assets etc) Bill would specify the category of digital holdings, including cryptocurrency, non-fungible tokens (NFTs) like digital art, and carbon credits.Legally Defining Digital AssetsAccording to the official press release on Wednesday, the proposed legislation aims to advance the country’s laws on digital assets. It would define digital assets that are not currently classified under existing laws and are in a legal grey area.The UK government further pointed out that “digital assets” is an extremely broad term, encompassing a variety of items, including digital files, records, and email accounts. However, the tabled bill will only apply to a subset of digital assets, specifically cryptotokens.“Things”If passed, the bill would create a new category of “things,” granting certain digital assets personal property rights. Under current UK laws, property is categorised in two ways: “things in possession,” which include assets like gold, money, and cars, and “things in action,” such as debts and shares.“Our world-leading legal services form a vital part of our economy, helping to drive growth and keep Britain at the heart of the international legal industry,” said Justice Minister Heidi Alexander. “It is essential that the law keeps pace with evolving technologies, and this legislation will enable the sector to maintain its position as a global leader in cryptoassets and bring clarity to complex property cases.”The bill is a response to the Law Commission’s 2023 report, which was commissioned to address barriers to recognising digital assets as property. The UK government also argued that the proposed legislation would offer legal protection to owners and companies against fraud and scams and would help judges resolve complex digital asset disputes.Meanwhile, the UK's Financial Conduct Authority recently revealed that it rejected over 87 percent of cryptocurrency registration applications in its latest review. This article was written by Arnab Shome at www.financemagnates.com.
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CFTC Forms Alliances to Address Crypto "Pig Butchering" Scams
Sep 11, 2024 | 09:20 amCommodity Futures Trading Commission (CFTC) has formed partnerships with several organizations to raise awareness about cryptocurrency relationship investment scams dubbed "pig butchering." The regulator's Office of Customer Outreach and Education (OCEO) is spearheading this initiative to educate and protect consumers from falling victim to these complex fraud schemes.Efforts to Fight FraudAccording to the official statement, the CFTC is teaming up with various organizations, including the American Bankers Association Foundation, federal agencies, and private regulators. The collaboration focuses on distributing a comprehensive infographic that outlines the "pig butchering" scam. This visual guide details the various stages of the scam, from initial contact to financial loss, and highlights key warning signs for potential victims.Speaking about the initiative, CFTC’s Office of Customer Education and Outreach Director Melanie Devoe, mentioned: “Partnering with federal and state regulators as well as consumer protection groups and other organizations helps spread the CFTC’s customer education message and hopefully reaches people before they can get scammed.” “These partnerships focus on a relationship confidence fraud the perpetrators commonly refer to as ‘pig butchering,’ that is estimated to cost Americans billions each year.”Crypto #investment or “relationship” scams are on the rise and @CFTC is releasing a prevention brochure in partnership with @ABABankers, @FBI, @FinCENnews, @FINRA, @HSI_HQ, @IRSnews, @SecretService, and @SEC_Investor_Ed. Learn more: https://t.co/Rc10CxD6An pic.twitter.com/W3SWNieJs3— CFTC (@CFTC) September 11, 2024In addition to the infographic, the CFTC is also working with the US Securities and Exchange Commission, the Financial Industry Regulatory Authority, and the North American Securities Administrators Association to create an investor alert. This alert is designed to educate investors about the tactics scammers use to infiltrate even the most cautious investors' minds and wallets.Protecting Investors from "Pig Butchering" Scams CFTC has urged investors to avoid responding to unsolicited messages from unknown sources, a common tactic used by scammers. With these new partnerships and educational efforts, the watchdog aims to significantly reduce the prevalence of "pig butchering" scams and protect investors from financial harm.In the second quarter, the cryptocurrency industry faced heightened security incidents, with total losses reaching $629.7 million across 49 incidents. According to a Survey by blockchain security firm Cyvers, only 24% of stolen funds were recovered. Since the beginning of the year, cryptocurrency criminals have seized over $1.38 billion, most of which resulted from "access control breaches."Despite the amount recovered rising by 42% compared to the corresponding period last year, the recovered amount reportedly represents less than a quarter of the total losses. This means that barely one in four victims of digital asset hacks can recover their funds. This article was written by Jared Kirui at www.financemagnates.com.
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“Strong Compliance Doesn’t Have to Stifle Innovation”: Bitget's Chief Legal Officer
Sep 11, 2024 | 05:34 amCryptocurrency exchange Bitget has ramped up its regulatory compliance efforts with the recent appointment of Hon Ng as its new Chief Legal Officer. Ng, who previously held a similar role at industry giant Binance, brings a wealth of experience in navigating the complex regulatory landscape of digital assets.In an exclusive interview with Finance Magnates, Ng outlined his vision for enhancing crypto compliance strategies while fostering innovation in the rapidly evolving digital asset space. He emphasized the importance of balancing regulatory requirements with technological advancement.Compliance Doesn't Have to Be the Enemy of Crypto InnovationHon Ng's career trajectory is nothing short of remarkable. As a seasoned legal professional with over two decades of experience, Ng has overseen high-profile transactions, including a $500 million acquisition of a strategic stake in X (formerly Twitter) in consortium with Elon Musk.His résumé also boasts a three-year stint as General Counsel & Head of Government Affairs at Binance, the world's largest cryptocurrency exchange. While Ng has since transitioned to Bitget, he continues to pursue another passion: football. Intriguingly, he serves on the Legal Committees of both the Asian and East Asian Football Federations and represents the Hong Kong Football Association. It's worth noting that one of Bitget's global ambassadors is none other than football legend Lionel Messi. Coincidence?Jokes aside, Finance Magnates' conversation with Ng focused not on his love for the ball but on his expertise in compliance, law, and cryptocurrencies. He acknowledges that proponents of decentralization often view cryptocurrency market regulation as incompatible with maintaining the industry's innovative spirit.“Strong compliance doesn't have to stifle innovation—in fact, it can enable it,” Ng stated. “When a platform like Bitget builds a solid compliance framework, it creates a foundation of trust. This trust, in turn, gives us the freedom to explore new ideas and develop cutting-edge solutions.”Ng highlighted Bitget's proactive approach to compliance, including mandatory Know Your Customer (KYC) procedures, sanctions compliance, and transaction monitoring. He plans to build on these existing measures, drawing from his experience at Binance where he spearheaded global licensing efforts and regulatory dialogue.“I had developed the legal team and pushed forward an agenda that you can still see today, such as licensing. All of these things helped improve the industry and made it safer for users,” added Ng. “I intend to build on that.”Lack of Regulatory ConsistencyThe crypto industry faces significant challenges in regulatory consistency across jurisdictions, according to Ng. “Each country has its own set of rules. This is quite a big challenge for exchanges that operate globally.”To address this, Bitget is adopting a unified approach that aims to meet the highest global standards.“We implement mandatory KYC across all of our markets, comply with sanction requirements, and conduct thorough transaction monitoring,” Ng explained. “These efforts help us proactively meet legal requirements and ensure we're already operating at the highest standards.”Engaging with regulators is also a key part of Bitget's strategy. Ng described the exchange's approach as constructive, involving face-to-face discussions to understand regulatory expectations in different markets. “We are thrilled that the conversations so far have been very positive about the way those regulators wish to develop their crypto frameworks and how an exchange like Bitget fits into that masterplan,” Ng explained.“US Could Benefit from More Clarity and Consistency”Ng’s appointment comes at a time when the cryptocurrency industry is experiencing increased scrutiny and regulatory attention, especially in the US. While working for Binance, the current Chief Legal Officer frequently dealt with various legal issues around the world. These situations demonstrated the inconsistency in regulations he mentioned: the exchange could operate fully legally on one continent, while on another, regulators might deem its business model non-compliant.However, he sees current regulatory developments as indicative of the increasing convergence between traditional finance and the crypto world. “In the past 3 years, we have seen a rapid changing-of-the-narrative,” Ng observed. “Since the SEC approved Bitcoin ETFs, we have seen waves of traditional finance companies become adopters for the very first time. This is exciting as it brings a whole new audience and dimension into this space.”He further notes that there is still much to be done, stating, “The US could benefit from more clarity and consistency.” He argues that the lack of clear guidelines on how different digital assets are classified creates uncertainty, making it challenging for businesses to operate confidently and for investors to make informed decisions.“I have always thought that proactively tailoring regulations so that it is ‘fit for purpose’ is a better approach than trying to fit new technologies into existing regulatory frameworks that may not meet the challenges of this new period of growth,” added Ng.How to Push Crypto into the MainstreamNg believes that broader acceptance of crypto exchanges hinges on prioritizing compliance, ensuring robust security measures, and educating the public about digital assets.“The future of crypto depends on finding the right balance between innovation and compliance,” Ng asserted. “As the industry grows, so will regulatory scrutiny, and only those platforms that can innovate responsibly will thrive.”Bitget is continuously exploring new ways to market its products. For example, at the beginning of this month, it introduced a Task-to-Earn model aimed at encouraging financial influencers to promote products available on the exchange. Through this initiative, participants could earn up to $5 million within a year.“Exchanges must operate with integrity,” Ng believes. “This means being transparent about business practices, fees, and any potential conflicts of interest. It also means being responsive to user concerns and providing a high level of customer service.” This article was written by Damian Chmiel at www.financemagnates.com.
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Bitget Wallet Surpasses 12 Million Users, Integrating Web2 Platforms
Sep 11, 2024 | 03:19 amBitget Wallet has reached a new milestone of 12 million monthly active users (MAUs), becoming the most downloaded Web3 wallet in August 2024. The application was downloaded nearly 2 million times last month, surpassing popular competitors such as Trust Crypto Wallet and MetaMask.Bitget Wallet Surges to 12 Million Monthly Active UsersBitget allows users to create and manage wallets using familiar Web2 logins such as email, Google, or Telegram accounts, powered by Multi-Party Computation (MPC) keyless wallet technology. This integration has led to a 2.7-fold increase in MPC wallet creation since becoming available to Telegram users.“With over 90% of tokens only available on decentralized exchanges (DEXs), we’re helping users tap into new opportunities,” commented Alvin Kan, the COO at Bitget Wallet. “Our goal is to bring Web2 users into the world of Web3, making crypto easy to access, especially for those in regions where traditional finance is limited.”The platform's growth has been further fueled by the popularity of Tap-to-Earn (T2E) games within the TON ecosystem. Tomarket, a TON app backed by Bitget Wallet, gained over 20 million users in just two months, highlighting the market's potential.Bitget Wallet's expansion efforts have resulted in visible user growth across various countries, with some regions experiencing a 1000% increase compared to the previous year. The wallet now supports over 168 countries.Previously, Bitget reported on the performance of its portfolio in July, when it became the second most popular in the Japanese Web3 market. In June, Bitget Wallet invested in a decentralized trading platform in collaboration with Foresight X.650 Million Users and $5 Million for InfluencersBitget Wallet is part of the Bitget cryptocurrency exchange ecosystem, which has been gaining increasing interest from investors recently. In the second quarter, it recorded capital inflows of $700 million, ranking it third behind Binance and Bitfinex. Earlier this month, the platform introduced a new plan to reach more customers by launching a Task-to-Earn program aimed at financial influencers. As part of this program, it plans to pay up to $5 million to the most engaged affiliates within the first year.“Our Booster Platform marks the industry's first systematic and dynamic attempt at incentivizing KOLs' efforts,” said Gracy Chen, Chief Executive Officer (CEO) at Bitget. “By prioritizing our extensive network of influencers, we will provide efficient promotional features to ensure collaborative success within the crypto community.”Last month, it also added a new payment method by opening up to a market of 650 million users, involving the integration of payment systems with Apple Pay and Google Pay, which allows for quick fiat-to-crypto conversion. “We're enabling broader masses and newer audiences to interact with crypto,” added Chen. This article was written by Damian Chmiel at www.financemagnates.com.
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PayPal and Venmo Introduce ENS Integration for Crypto Transfers in the US
Sep 10, 2024 | 09:00 amENS Labs, the organization responsible for the Ethereum Name Service (ENS), has announced integration with PayPal and Venmo. This move allows users of these popular payment platforms to utilize their ENS names when transferring cryptocurrency. The feature, available initially in the United States, simplifies the process of managing wallet addresses and helps reduce the likelihood of errors during transactions.PayPal, Venmo Integrate ENSPreviously, users had to manually enter or scan external wallet addresses to transfer funds on PayPal and Venmo, which increased the risk of mistakes, especially for those unfamiliar with cryptocurrency. The integration of ENS names eliminates this step. Users can now enter the recipient’s ENS name in the search field, and the associated wallet address is automatically recognized by the platform.“We are excited to bring ENS’ naming capabilities directly into the hands of millions of users, through Venmo, PayPal Mobile, and PayPal Web,” said Khori Whittaker, Executive Director of ENS Labs.“As the world of digital assets becomes more mainstream, our goal is to ensure managing those assets is as intuitive and user-friendly as possible. ENS, much like PayPal and Venmo, transforms complex wallet addresses to human-readable names for users to transact securely and confidently.” ENS Names Saved AutomaticallyAdditionally, PayPal and Venmo will save ENS names in their address books, making future transactions easier to manage. This feature extends the platforms' existing ability to handle internal crypto transactions, adding the convenience of recalling saved external contacts for cryptocurrency transfers.“Working with PayPal and Venmo allows us to reach those who are new to the space and those who prefer the familiarity of Web2 payment platforms,” said Marta Cura, Director of Business Development at ENS Labs.“By bringing ENS to platforms they already know and trust, we’re making it easier for them to interact with decentralized finance within a traditional Web2 environment.” This article was written by Tareq Sikder at www.financemagnates.com.
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Polymarket Makes Crypto-Betting Mainstream: Is It a Killer App?
Sep 10, 2024 | 06:40 amFor many years, crypto has been fended off accusations of being a solution in search of a problem. Another way of putting it is that product-market fit is an issue, or that crypto needs a killer app. It’s worth distinguishing here also between bitcoin and the rest of crypto. Bitcoin can claim a category of its own as a digital store of value, but when it comes to the rest of the blockchain environment, a wide variety of potential use cases are on the table but still unproven. Stablecoins have perhaps the clearest case for immediate utility, and then there’s the tokenization of real world assets, the use of NFTs in gaming, entertainment and as a medium for digital art, and there’s also DeFi as an alternative financial environment (although then there are still questions as to what specific value DeFi tokens are actually tethered to). However, regarding practical utility, this year has been marked by the emergence into the mainstream of the decentralized prediction market Polymarket, which increasingly looks like it may be turning into crypto’s first potentially killer app, or is at least gaining recognition as a decentralized platform that makes clear sense to users outside of the crypto bubble.What Is Polymarket?Founded in 2020 and built on Polygon, Polymarket is a blockchain-based prediction market that utilizes the stablecoin USDC for trading. There’s no way you can use the product without crypto and it doesn’t require KYC, meaning it’s a legitimately crypto-native platform, and it is–by nature of the gambling on current affairs that it facilitates–closely in touch with real world events, appealing, and easily understood.Odds Republicans win back the Senate are up to 75%. pic.twitter.com/WQtrzzAZA7— Polymarket (@Polymarket) September 5, 2024It should be noted that political betting goes back centuries, while the first online prediction market was the still-in-operation Iowa Electronic Markets, which launched back in 1988. Also, Polymarket is not the first ever crypto-powered prediction market: Augur and Gnosis are both decentralized prediction market developments that were started before Polymarket launched. However, Polymarket is the first decentralized prediction market that has picked up a lot of mainstream attention while it gains in volume and users. As we’re in a US election year, there is a huge amount of interest in public opinion on the presidential candidates, and it’s become commonplace to see Polymarket’s latest political trading stats cited in order to get a handle on voting intentions.This also ties back in with the recent prominence of crypto as a political issue in America. Analysis shows that this year, the crypto industry has–by a substantial margin–been the leading corporate sector when it comes to political donations, funding pro-crypto candidates in primary races through non-partisan, crypto-dedicated super PACs. And at the same time, Donald Trump has grabbed headlines by making multiple strongly pro-crypto campaign pledges, while this week it was reported that the Kamala Harris campaign is able to receive crypto donations through a PAC called Future Forward (and the Trump campaign, meanwhile, directly accepts donations made in crypto). Against this crypto-tilted backdrop then, what better way to get a handle on public opinion than through Polymarket, a platform that is deeply embedded in the very crypto world now being openly supported by one candidate, and cautiously paid attention to by the other?Polymarket, Memecoins and Financial NihilismAnother crypto trend that has emerged over the past year or so is speculation on memecoins. These are tokens that have no utility, and which–through novel platforms such as Pump.fun and various copycats–can be rolled out very quickly for the purposes, essentially, of rapid-fire gambling. What the memecoin niche has in common with Polymarket is the tendency towards a betting mentality, but where they differ is that memecoins haven’t gained mainstream traction and aren't immediately intuitive, whereas Polymarket makes instant sense to anyone with an interest not only in betting or finance, but also in news and current affairs. Or in other words, Polymarket has product-market fit, whereas memecoins come across as an eccentric novelty, and also at times as requiring insider knowledge in order to be profitable, whereas on Polymarket, knowledge of current affairs is the more useful commodity.BOOM. We now have @Polymarket election data on @TheTerminal pic.twitter.com/kMpxlFTURx— Joe Weisenthal (@TheStalwart) August 29, 2024This all relates also to a thesis that was circulating around the crypto space earlier this year–when memecoin flipping was at its peak–suggesting that we’re in an era of financial nihilism. This reading of the market argues that participants–particularly at the younger end of the scale–have lost confidence in the ability of traditional assets to deliver meaningful returns, and would prefer to roll the dice on alternative assets; an attitude that, when taken to extremes, arrives at memecoins, out on the furthest fringes of the crypto world. Ultimately though, not everyone is a financial nihilist, memecoins have limited appeal, and though Polymarket overlaps to an extent into memecoin territory, it is also entirely compatible with a more conventional approach to both finance and entertainment.Finally, one curiosity when it comes to Polymarket is that within the crypto arena–where almost every new product and protocol has a native token through which traders can speculate on its success–Polymarket has never issued any such token. This means one question you can’t take a financial position on is whether or not Polymarket itself will continue to grow, despite the odds on that looking increasingly positive. This article was written by Sam White at www.financemagnates.com.
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Standard Chartered Sets Up Digital Asset Custody Services in UAE
Sep 10, 2024 | 04:09 amStandard Chartered announced today (Tuesday) that it has started offering digital asset custody services in the United Arab Emirates. Brevan Howard Digital, the digital asset division of the British hedge fund, is the first client to use these services.Bank Chooses UAE for LaunchThe bank said it chose the UAE for this launch due to the country's balanced approach to digital asset adoption and financial regulation. The UAE has been actively working to attract major crypto firms, including Binance and OKX. It is also developing regulations for virtual assets to boost economic competition in the Gulf region.“Standard Chartered's global reputation and demonstrated commitment to this space adds a layer of credibility that is meaningful for institutional adoption,” Brevan Howard Digital's CEO Gautam Sharma said in a joint statement.Standard Chartered shakes up #crypto world with new Custody Services in UAE 🚀💰 #cryptocurrency #cryptonews— MEME.nto (@MEME_nto_crypto) September 10, 2024Meanwhile, Standard Chartered has announced an investment in United Fintech Group Limited, a London-based company specializing in digital transformation for financial markets, as reported by Finance Magnates.The investment is part of Standard Chartered’s strategy to acquire and partner with fintech firms, creating a comprehensive technology platform for capital markets. This platform aims to drive innovation and collaboration among technology providers to support banks, hedge funds, and asset managers.UAE Attracts Hedge FundsIn addition to crypto firms, the UAE has attracted significant hedge funds. Brevan Howard opened an office in Abu Dhabi in February last year. Other hedge funds such as Millennium Management, ExodusPoint Capital Management, and BlueCrest have also established a presence in the UAE.Standard Chartered is expanding its involvement in the crypto sector as institutional investors increasingly adopt digital assets. The bank supports two crypto firms, Zodia Markets and Zodia Custody, which offer a range of services including custody and trading. This article was written by Tareq Sikder at www.financemagnates.com.
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This London Man's £2.6M Crypto ATM Scheme Just Blew Up in His Face
Sep 10, 2024 | 02:14 amThe UK's Financial Conduct Authority (FCA) has taken unprecedented action against an individual accused of running an illegal network of cryptocurrency ATMs. As the market watchdog emphasizes, this is its first set of charges involving physical machines that allow for the buying and selling of digital assets. At the same time, the FCA is reminding that “there are no legal crypto ATM operators in the UK.” Any such machines operate illegally, and those using them indirectly contribute to the global money laundering scheme.Illegal Crypto ATM NetworkA 45-year-old London resident faces charges for allegedly operating multiple crypto ATMs without FCA registration. These kiosks, which allow users to buy or convert money into cryptocurrencies, processed transactions totaling £2.6 million across various locations between December 2021 and September 2023.We've charged Mr Olumide Osunkoya for unlawfully running multiple crypto ATMs without FCA registration. #CryptoATM #CryptoNews #FinancialRegulationhttps://t.co/eVWEvnMbUw— Financial Conduct Authority (@TheFCA) September 10, 2024This case represents the FCA's first criminal prosecution related to unregistered cryptoasset activity under the Money Laundering Regulations of 2017. It also sets a precedent as the first charges brought against an individual for operating a network of crypto ATMs in the UK.“Our message today is clear. If you're illegally operating a crypto ATM, we will stop you,” commented Therese Chambers, joint executive director of enforcement and market oversight at the FCA. “If you're using a crypto ATM, you are handing your money directly to criminals.”The charges against Osunkoya include two offenses under the Money Laundering Regulations for operating crypto ATMs without FCA registration, two offenses under the Forgery and Counterfeiting Act 1981 for allegedly creating and using false documents, and an offense of possessing criminal property under the Proceeds of Crime Act 2002.Osunkoya is scheduled to appear before Westminster Magistrates' Court on September 30, 2024. The outcome of this case could have significant implications for the regulation of cryptocurrency services in the UK and may serve as a deterrent to others operating in this space without proper authorization.FCA Shut Down 26 Illegal Crypto ATMs in 2023This legal action follows a recent FCA operation conducted in partnership with law enforcement agencies to tackle illegally operated crypto ATMs across the country. In 2023, the FCA inspected 34 locations suspected of hosting such machines, resulting in the disruption of 26 unlawfully operating ATMs.The efforts by the FCA seem to be a battle against windmills. In many other places around the world, crypto ATMs are immensely popular. For instance, in the United States, over 31,000 such devices have been installed. Although the regulator may be right in saying that using crypto ATMs facilitates the circulation of cash of unknown origin and may support the laundering of dirty money, many developed economies have implemented a series of regulations aimed at blocking this process.Unfortunately, ATMs are also used in scams. According to data from the Federal Trade Commission (FTC), users lost $110 million due to these scams in 2023 alone.Emma Fletcher, a senior data researcher at the FTC, explained that scammers are increasingly using these machines to deceive people. “Scammers are using these machines as a way to take money from people more than we've seen in the past,” she told NBC News. This article was written by Damian Chmiel at www.financemagnates.com.
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Coinbase Under Fire: Class Action Suit on SEC Disclosures Advances in Court
Sep 9, 2024 | 13:34 pmCoinbase's legal troubles deepened last week after a US judge allowed a class action lawsuit from shareholders to move forward. The lawsuit claims the crypto exchange misled investors about its exposure to regulatory risks, particularly from the US Securities and Exchange Commission (SEC). Heightened ScrutinyThis ruling comes as Coinbase faces heightened scrutiny from regulators. A group of Coinbase shareholders claims the company made "materially false and misleading statements" regarding its chances of facing legal action from the SEC. According to the court filings, the plaintiffs, who began purchasing shares in 2021, argue that Coinbase downplayed the risk of an SEC lawsuit, which eventually materialized in June 2023 when the regulator sued the exchange for allegedly violating federal securities laws.US District Judge Brian Martinotti, presiding over the case in New Jersey, ruled that the shareholders have a plausible argument that Coinbase acted negligently. The court found that Coinbase may have misrepresented the likelihood of an SEC enforcement action despite repeatedly assuring investors that the crypto assets it listed were not considered securities.The class action lawsuit is one of several legal challenges Coinbase is currently grappling with. In addition to the shareholder suit, the exchange is also locked in a legal battle with the SEC. In June 2023, the regulator filed a lawsuit against Coinbase, accusing it of violating US federal securities laws. Coinbase's motion to dismiss the SEC's claims was largely unsuccessful. The judge ruled that the SEC presented plausible arguments that merit further exploration in court, Coindesk reported. Regulatory Woes EscalateCoinbase has faced growing regulatory scrutiny as governments and financial authorities worldwide tighten their oversight of the crypto industry. The outcome of these lawsuits could have significant implications not only for Coinbase but for the broader cryptocurrency market.As the legal proceedings unfold, Coinbase faces significant uncertainty. The company's assurances to investors about its regulatory compliance and the potential risks of SEC enforcement are now under intense legal scrutiny.In June, Coinbase filed lawsuits against the SEC and the Federal Deposit Insurance Corporation. According to a report by FoxBusiness, the lawsuits claim that both agencies failed to fulfill Freedom of Information Act requests submitted to the US District Court for the District of Columbia. This article was written by Jared Kirui at www.financemagnates.com.
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Tokocrypto Bags PFAK with Binance Boost, Gaining Ground in Indonesia’s Crypto Arena
Sep 9, 2024 | 02:46 amTokocrypto, a member of the Binance group, has been granted the Physical Crypto Asset Trader (PFAK) license by Indonesia’s Commodity Futures Trading Regulatory Agency (Bappebti). In 2024, Tokocrypto’s user base has expanded to over 4.5 million, and the platform has reported a 138% increase in its monthly average trading volume. Gaining Full AuthorizationThe PFAK license is an important step for Tokocrypto. The firm initially registered as a Prospective Physical Crypto Asset Trader (CPFAK) in 2019. The recent licensing allows Tokocrypto to operate as a fully authorized physical crypto asset trader in Indonesia.Richard Teng, CEO of Binance, acknowledged Tokocrypto’s achievement, noting Binance’s support in strengthening Indonesia’s Web3 ecosystem. Teng highlighted Binance’s commitment to creating a transparent and secure trading environment in the region.BINANCE INDONESIA SUBSIDIARY TOKOCRYPTO SECURES PHYSICAL CRYPTO ASSET DEALER LICENSE IN THE COUNTRY ENABLING TOKOCRYPTO TO ENGAGE IN PHYSICAL CRYPTO ASSET TRADING pic.twitter.com/rOHXfBPbpp— Kunalcrypto (@kunalcrypto) September 9, 2024Meanwhile, Binance’s Kazakhstan unit has received formal approval from the Astana Financial Services Authority (AFSA) for a full regulatory license, as reported by Finance Magnates. This license will allow Binance Kazakhstan to provide crypto trading, deal investments as a principal, and offer crypto custody services. This development follows the exchange’s acquisition of ISO 27001 and ISO 27701 certifications for its Kazakhstani platforms five months ago.Growth Accelerates with PFAKYudhono Rawis, CEO of Tokocrypto, emphasized the importance of the PFAK license in achieving Tokocrypto’s goal of becoming Indonesia’s leading crypto-asset trading platform. Rawis expressed satisfaction with Tokocrypto being the third exchange to obtain the license and credited Binance’s ongoing support as a factor in Tokocrypto’s growth and market leadership.According to the firm, Tokocrypto’s growth in 2024, characterized by its expanding user base and increased trading volume, is expected to be further bolstered by the PFAK license. This development is likely to enhance the platform’s position and influence in Indonesia’s crypto sector. This article was written by Tareq Sikder at www.financemagnates.com.
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Crypto Crackdown Down Under: ASIC’s Pyrrhic Victory against Kraken
Sep 9, 2024 | 00:05 amAt the end of August, the court agreed with the Australian Securities and Investment Commission (ASIC), confirming that the cryptocurrency exchange Kraken violated local regulations by offering margin products to retail clients. However, the company operating under the brand Bit Trade Pty Ltd claims that the issue is more complex.Kraken Margin Trading Ruling Exposes Australia's Crypto Regulation GapThe ruling, which centered on Kraken's Margin Extension product, determined that margin trading extended in fiat currency to retail investors falls under the Design and Distribution Obligations (DDO) of the Corporations Act. However, the court found that the margin extended in cryptocurrency is not subject to the same regulations.While ASIC hailed the decision as a victory, Kraken argues it exposes significant gaps in the country's approach to crypto regulation.“This ruling makes it clearer than ever that bespoke crypto regulation is urgently needed,” Kraken commented in the new blog post. “Australian crypto investors and businesses continue to operate in a confusing and uncertain regulatory environment.”Understanding ASIC's Recent Judgment: The Need for a Clear Crypto Regulatory Framework in AustraliaRead more: https://t.co/9NhoiC82ii#ASIC #CryptoRegulation #Kraken #MarginTrading #Australia pic.twitter.com/h826lWyLTv— sinyalbak (@sinyalbak) September 9, 2024The judgment comes as Australia lags behind other jurisdictions in implementing comprehensive crypto regulations. Despite ongoing consultations and efforts by the Treasury, legislation could be delayed beyond the end of the year, potentially hampering the industry's growth and innovation.In the past, the exchange has experienced regulatory issues in other regions of the world, including in the US. Almost a year ago, it was sued by The Securities and Exchange Commission (SEC) for illegally operating an unregistered securities exchange, broker, dealer, and clearing agency.Kraken Changes Margin ProductsIn response to the newest Australian court ruling, Kraken has implemented immediate changes to its Margin Extension product. Margin trading with fiat is now restricted for Australian residents unless they qualify as Wholesale Investors under the Corporations Act. These restrictions do not apply to margin extensions when trading with crypto assets (including pairs like BTC/ETH or BTC/USDT).“We comply with legal and regulatory requirements in all jurisdictions in which we operate,” Kraken added. “Kraken is committed to expanding its compliant product offering and is working on additional eligibility pathways for fiat margin extensions in the coming months.”The case highlights the global race to provide tailored regulation for crypto assets, with countries like the United States, United Kingdom, and Singapore making strides in this area. Clear and proportionate frameworks are seen as crucial for allowing individuals to safely harness the potential of blockchain technology while ensuring appropriate regulatory protections. This article was written by Damian Chmiel at www.financemagnates.com.
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Binance Inches Closer to Obtaining Full Kazakhstan License: Receives Formal Consent
Sep 6, 2024 | 02:22 amThe Kazakhstan-based unit of Binance has received formal consent from the Astana Financial Services Authority (AFSA) to grant it a full regulatory license, the crypto exchange announced today (Friday).Sealing Its Presence in KazakhstanWith this, it has stepped closer to becoming the first regulated Digital Asset Trading Facility (DATF) operator in the country. Once approved, the license will enable Binance Kazakhstan to offer crypto trading services, engage in dealing investments as a principal, and provide crypto custody services.The latest development came about five months after the top global crypto exchange obtained ISO 27001 and ISO 27701 certifications for its platforms in Kazakhstan following an audit to ensure their security and reliability.“This achievement reflects our dedication to maintaining the highest standards of compliance, security, and operational excellence,” said Vishal Sacheendran, Head of Regional Markets at Binance. “We look forward to obtaining the full license, continuing to serve our users in Kazakhstan, and contributing to the growth of the local digital asset ecosystem.”Ensuring CompliancesThe crypto exchange emphasized that the authorities in Kazakhstan tested its offerings with a rigorous assessment, evaluating them according to local regulations, including anti-money laundering rules.Interestingly, a class action lawsuit has alleged Binance’s role in money laundering. It claimed that the crypto exchange allowed criminals to deposit stolen crypto, thereby removing the connection between the ledger and the digital assets, making the stolen cryptocurrencies untraceable.Binance launched its services in Kazakhstan in June of last year after obtaining a permanent license in the country. It even partnered with a local bank to enable fiat deposits and withdrawals.Meanwhile, Binance is also reorganizing its operations in multiple regions. Recently, it transferred its South African derivatives operations to its Bahrain subsidiary. It also migrated all UAE users to its locally-licensed entity earlier in June. Furthermore, Binance is among dozens of crypto companies that have applied for crypto licenses in Turkey. This article was written by Arnab Shome at www.financemagnates.com.
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Mastercard Expands Crypto Payment Solutions with Debit Card for Self-Custodial Wallets
Sep 5, 2024 | 10:35 amMastercard has expanded its support for non-custodial wallets through a new partnership with Mercuryo, a European crypto payments provider. This collaboration introduces a euro-denominated crypto debit card that allows users to spend digital assets directly from their wallets at over 100 million merchants globally. Mastercard Embraces Self-CustodyAccording to a statement by Mercuryo, this initiative is part of Mastercard's broader push to bridge the gap between traditional finance and the crypto economy, enabling individuals to “be their own bank” while conducting everyday transactions with cryptocurrency.The concept of self-custody offers crypto asset users the freedom to store their assets without depending on centralized platforms like banks or exchanges. Mastercard is targeting the growing demand for self-custodial solutions by allowing users to manage their private keys and control their funds. Learn more about Spend 👉 https://t.co/jtr9a1V3iu— Mercuryo (@Mercuryo_io) September 5, 2024For years, one of the major challenges facing crypto users has been converting digital assets into fiat currency for everyday use. Mercuryo's new debit card, branded as Spend, aims to address this issue by enabling direct crypto payments from wallets without the need for conversion steps. The newly launched crypto debit card offers a direct way for individuals to spend their digital currencies without intermediaries.The card reportedly supports multiple cryptocurrencies, including Bitcoin, and functions across Mastercard's network of merchants. The two companies expect the multi-chain debit card to become an important solution for wallets seeking an easy crypto payment and cash-out option for their users.Adoption of Non-Custodial Wallets Mastercard's journey into the cryptocurrency space began in 2021 when the payment giant announced its support for digital currencies on its network. Since then, the company has partnered with several key players in the crypto world, including Circle, Coinbase, and now Mercuryo. With operations in more than 210 countries and territories, Mastercard's crypto support comes at a time when digital currencies are gaining broader acceptance as a payment method. Unlike custodial wallets, where third-party platforms hold the private keys, non-custodial wallets place the responsibility solely in the user's hands. However, this requires individuals to be diligent in managing their private keys.In July, Nuvei and Mastercard collaborated to launch an off-ramping solution in Europe. This offering enables consumers to convert their digital assets, including cryptocurrencies, into traditional fiat currency using debit, credit, and prepaid cards. Consumers can then spend their converted funds through Mastercard's global network. This article was written by Jared Kirui at www.financemagnates.com.
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Top Wall Street Bitcoin Miners Report August Dip as Digital Gold Rush Slows
Sep 5, 2024 | 00:45 amSeveral major publicly-traded Bitcoin (BTC) miners from Wall Street have reported decreased production for August, highlighting ongoing challenges in the cryptocurrency mining sector.Wall Street Bitcoin Miners Report Lower August ProductionArgo Blockchain (NASDAQ: ARBK) reported that it mined 38 Bitcoin in August, down from 48 in July, due to more frequent economic curtailments and a lower hash price. HIVE Digital Technologies (NASDAQ: HIVE) mined 112 Bitcoin, which is 4 less than the 116 Bitcoin reported the previous month.“We remain focused on our strategy of maintaining the lowest G&A expenses per Bitcoin mined, maximizing cash flow return on invested capital, and achieving high revenue per employee while minimizing share dilution,” commented Frank Holmes, Executive Chairman of HIVE.Meanwhile, TeraWulf (NASDAQ: WULF) produced 184 Bitcoin at an average rate of 5.9 per day, a decrease from the 155 reported in July. The company also noted an increase in the energy costs for self-mined BTC to $36,346.Marathon Digital Holdings (NASDAQ: MARA), one of the largest publicly traded Bitcoin miners, saw a 3% decrease in production, mining 673 Bitcoin in August compared to 692 in July. The company's CEO, Fred Thiel, noted, “Block wins during the month declined 2% from July while BTC production decreased 3% to 673 BTC.”Industry experts attribute the production declines to several factors, including increased network difficulty and higher power costs during the summer months. The global Bitcoin mining difficulty reached an all-time high in August, making it more challenging for miners to earn rewards.This corresponds with data released earlier in the week by other publicly listed miners. CleanSpark (NASDAQ: CLSK), which bills itself as “America's Bitcoin Miner,” saw its Bitcoin production drop 3.2% from 494 in July to 478 in August. Similarly, Bitfarms (NASDAQ: BITF) experienced a more significant 7.9% decline, mining 233 Bitcoin in August compared to 253 in July.Less Bitcoin, Less DollarsThe cryptocurrency mining sector faced a significant downturn in August 2024, marking its least profitable month in recent years. Miners' earnings plummeted to $828 million, the lowest since September 2023 and a stark 57% decline from the peak earnings of nearly $2 billion recorded in March 2024.Several factors contributed to this challenging environment. The mining difficulty reached an unprecedented 89.47 trillion in August, up from 86.87 trillion in July. Simultaneously, the number of mined Bitcoins decreased from 14,725 in July to 13,843 in August. This combination of increased difficulty and reduced output has created a perfect storm for miners, squeezing profit margins and necessitating adaptive measures.In response to these adverse trends, publicly listed Bitcoin mining companies are exploring alternative revenue streams. Many are turning their attention to high-performance computing (HPC) and artificial intelligence (AI) as potential growth areas. Investment management firm VanEck predicts that this strategic pivot could potentially unlock $38 billion in value for mining companies by 2027. This article was written by Damian Chmiel at www.financemagnates.com.
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California Just Taught Robinhood a $3.9 Million Lesson. Here's Why
Sep 5, 2024 | 00:26 amThe cryptocurrency arm of the zero-free trading giant Robinhood has agreed to pay $3.9 million to settle allegations by California's Attorney General that it violated state commodities law by prohibiting customers from withdrawing cryptocurrency from their accounts between 2018 and 2022.Robinhood Crypto Settles with California for $3.9 MillionThe settlement, announced yesterday (Wednesday) by California Attorney General Rob Bonta, marks the first public action by the state's Department of Justice against a cryptocurrency company. According to the Attorney General's office, Robinhood sold commodities contracts in violation of California law by allowing customers to purchase cryptocurrencies without actually delivering the assets. During the period in question, customers were unable to withdraw their crypto and had to sell them back to Robinhood to exit the platform.“Our investigation and settlement with Robinhood should send a strong message: Whether you're a brick-and-mortar store or a cryptocurrency company, you must adhere to California's consumer and investor protection laws,” said Attorney General Bonta. “I am dedicated to using all the tools available to my office to protect California consumers in the face of advancing technology in the marketplace.”The investigation also found that Robinhood misled customers about its trading practices, including claims that it would connect to multiple trading venues to ensure competitive prices. Additionally, the company failed to disclose instances where it arranged for trading venues to hold customer assets for extended periods.Under the terms of the settlement, Robinhood must allow customers to withdraw crypto assets to their own wallets and update its disclosures regarding trading and custody practices. The company did not admit or deny wrongdoing as part of the agreement.“We are pleased to put this matter behind us,” added Lucas Moskowitz, Robinhood Markets' General Counsel. “The settlement fully resolves the Attorney General's concerns related to historical practices, and we look forward to continuing to make crypto more accessible and affordable to everyone.”Robinhood Crypto’s Additional Regulatory ProblemsThe settlement comes as Robinhood faces separate scrutiny from the US Securities and Exchange Commission (SEC), which indicated in May that it is preparing to file suit over alleged violations of federal securities laws.“On May 4, 2024, Robinhood Crypto (RHC) received a 'Wells Notice' from the Staff of the SEC stating that the Staff has advised RHC that it made a 'preliminary determination' to recommend that the SEC file an enforcement action against RHC alleging violations of Sections 15(a) and 17A of the Securities Exchange Act of 1934, as amended,” Robinhood mentioned in a filing with the regulator.The SEC's recent measures are in line with actions taken against other cryptocurrency exchanges like Coinbase and Binance. This reflects the heightened scrutiny that platforms in the digital asset sector are experiencing, as well as the persistent legal confrontations between regulatory bodies and industry stakeholders. This article was written by Damian Chmiel at www.financemagnates.com.
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Trustpilot Flags “Fake” Binance Reviews: Disables Crypto Exchange's TrustScore
Sep 4, 2024 | 23:38 pmTrustpilot, a platform where real users provide reviews, has disabled the “TrustScore” of crypto exchange Binance, alleging the detection of “a number of fake reviews for this company.” The review platform has already removed the fake reviews.Fake Reviews of Binance on Trustpilot“If additional suspicious reviews are discovered on this profile, we'll remove those too. If you believe a review is fake, you can flag it,” a banner on the verified page of Binance on Trustpilot stated.“We take the integrity of our platform very seriously and wanted to let you know this company hasn’t been playing by the rules,” warned Trustpilot. “When we uncover misuse, we take action and alert our community.”When it comes to reviews of any digital platform, especially those in financial services, Trustpilot is considered reliable. Although satisfied users write positive reviews of providers there, it has also attracted stressed traders and investors who post their grievances. Any negative reviews on Trustpilot can heavily impact the reputation of platforms, as many prominently advertise their Trustpilot score to enhance their brand value.However, many have figured out how to post fake reviews on Trustpilot. Many freelancers on some online platforms even advertise their services to post fake Trustpilot reviews. Recently, the US Federal Trade Commission even officially banned fake reviews of platforms.“We Have Zero Tolerance for Fake Reviews”Trustpilot's action against Binance was due to a breach of its guidelines, which state: “Don't write or ask people to write fake reviews. We have zero tolerance for fake reviews and will remove them.”Although Trustpilot is not showing Binance's “TrustScore,” users can still post reviews of the crypto exchange. Interestingly, out of 4,526 reviews on Binance, 80 percent have 1 star, and 6 percent have 2 stars. Trustpilot counts “1 and 2-star reviews as negative.”The review website also highlighted that Binance replied to 91 percent of the negative reviews.Interestingly, the TrustScores of most prominent crypto exchanges vary between “Bad” and “Poor.” Coinbase, one of the most reputed exchanges, has a TrustScore of 2.4, which is “Poor,” similar to OKX, which has a TrustScore of 1.8. Bybit, with a TrustScore of 1.5, is rated as “Bad.”According to an archived version of Binance's Trustpilot page, the crypto exchange had a TrustScore of 2 in May last year, which was deemed “Bad.”Finance Magnates approached Binance, but has not received any response as of press time.In June, Trustpilot “temporarily suspended” the profile of Funding Pips, a prop trading platform, after “an increase in reviews related to recent media attention.” However, the prop firm's page has since been restored, and it currently has a TrustScore of 4.4, which is deemed “Excellent,” based on 13,610 reviews. This article was written by Arnab Shome at www.financemagnates.com.
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