Autor Cointelegraph By Brian Newar

Korean exchanges agree on emergency system in case of Terra-style collapse

Korean exchanges agree on emergency system in case of Terra-style collapse

Uverejnil používateľ | jún 16, 2022 |

Korea’s leading exchanges have agreed to form a new emergency system that will spring into action within 24 hours should another Terra-style collapse threaten to come to pass.Under the new system, exchanges will convene to respond to sudden adverse market effects, such as what happened with Terra in May.The agreement came after five of the country’s largest crypto exchanges, Upbit, Bithumb, Coinone, Korbit, and Gopax attended a session at the National Assembly, South Korea’s legislature to address market fairness on June 13, according to a report from local news outlet Daily Sports. Exchange leaders, members of National Assembly, and Financial Supervisory Services (FSS) Chairman Lee Bok-hyeon discussed aspects of a new code of conduct exchanges will voluntarily adhere to in order to protect investors. The new code will also see the rollout of a warning system in September to signal investors of unusually high-risk virtual assets due to abnormal changes in price or other unusual activity.  In October, listing guidelines will be reviewed and a regular evaluation system will be put in place for all listed tokens.In May, the collapse of the Terra ecosystem led to tens of billions of dollars in losses and a slew of legal troubles for the founder, Do Kwon, who was confirmed to have evaded about $40 million in taxes through Terraform Labs.The code aims to systemize token listings and delistings to maximize regulatory compliance and eliminate differences in listing guidelines between each exchange.Korean market lead from Ledger Jun Hyuk Ahn told Cointelegraph on Thursday that this new direction would bolster investor confidence in crypto exchanges that have been on shaky ground for years. He said “It’s too early to predict exactly what will happen, but it should bring more harmony to the market.”“More transparency on listing and delisting processes will help bring back the trust from crypto traders that were lost through the Luna incident.”Domestic exchanges have taken the brunt of the blame for letting investors trade LUNA as it crashed. The number of Korean LUNA holders grew by 180% between May 6 and May 18th from 100,000 to about 280,000. In that time, the Terra USD stablecoin had de-pegged and LUNA fell from over $60 to under $0.01. The new guidelines would aim to prevent exchanges from allowing investors to trade such highly volatile tokens by shutting down trading within 24 hours or delisting them entirely.LUNA holders in KoreaBefore the crash: 100kAfter the crash: 280kKoreans are just made different. pic.twitter.com/WltM1RTcny— Jaemin Park (@jaemin_eth) May 24, 2022On the other hand, a local report from News1 on Wednesday stated that exchanges could be losers in the long-run if the guidelines are established. The report opined that the stringent new listing guidelines would hamper the exchanges’ ability to generate revenue from altcoin listings. “Domestic exchanges often secure profits by listing altcoins that are not listed by competitors because altcoin trading volumes are quite high.”Korea’s exchanges have been sharing the spotlight with the South Korean founder and CEO of Terraform Labs, Do Kwon. Kwon has been under investigation by the feared Financial and Securities Crime Investigation Team, otherwise known as the Grim Reapers of Yeoui-do, for alleged malfeasance and tax evasion. Related: Appeals court rules Do Kwon, Terraform Labs must heed SEC subpoena served in SeptemberOn June 15, the Grim Reapers uncovered documents from the Seoul tax office which they claim confirm Kwon and Terralabs evaded about $40 million in corporate and income taxes in 2021 according to The JoongAng news outlet.Kwon has denied the allegations of money laundering and tax evasion, including one claiming he has cashed out over $2.7 billion over the past three years from the Terra ecosystem. However, the SEC still wants to see Kwon at the US Court of Appeals on charges of selling unregistered securities through the Mirror Protocol.

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Brazilian proposal would make crypto payments legal and protect private keys

Brazilian proposal would make crypto payments legal and protect private keys

Uverejnil používateľ | jún 15, 2022 |

A proposed addition to an existing Brazilian law would grant Brazilians the right to use cryptocurrency as a means of payment while protecting their private keys from being taken by the courts.Federal Deputy Paulo Martins issued the proposal to the country’s legislature on June 10. If passed, the bill would expand both the legal uses of cryptocurrency in Brazil and the power the courts would have in confiscating it.BRAZIL: Bill introduced for #Bitcoin and crypto to be recognized as means of payment! — Bitcoin Archive (@BTC_Archive) June 14, 2022The proposed addition in Article 835 of the Civil Procedure Code states that while crypto assets, is not currency in and of itself, it could be “used as a financial asset, means of exchange or payment, or instrument of access to goods and services or investment.”It would not necessarily make Bitcoin or any crypto legal tender in the country. It would instead make crypto a legally recognized financial asset for investments and other uses.A broad interpretation of the proposal suggests that cryptocurrency such as BTC or ETH could be used to pay for goods and services across the country. It could also be used to pay outstanding debts “in the event of offering or forced constriction” of crypto assets.”The proposal also discusses the new powers and limitations that Brazilian courts would have once crypto is recognized as a financial asset, such as freezing exchange accounts.However, the proposal has also stopped short of giving the court power to seize users’ private keys. “The following rules will be observed: Access, by the Judiciary, to the users’ private key is prohibited.”A debtor would have to send their crypto payment to the court’s wallet to ensure its validity. The proposal does not mention how the court would obtain crypto from self-custodied wallets.For those that keep their crypto on exchanges, the court would have the power to force “intermediaries” such as exchanges to freeze the debtor’s crypto assets.“In the event that the debtor’s assets are not located, the creditor may request the competent Court to issue an ex officio, by electronic means, to the intermediaries involved in operations with crypto-assets, so that assets corresponding to the amount executed are blocked.”Related: Brazilian central banker describes how CBDC system can halt bank runsThe proposed additions are still in the initial phase of discussion in the Chamber of Deputies within the country’ legislature. This means that it could take several years before the additions are passed by the Senate and signed into law by the president. By that time they may have changed drastically.Only El Salvador and Central African Republic recognize Bitcoin as legal tender. Tonga is considering following in their footsteps.

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SEC reportedly launches investigation into insider trading on exchanges

SEC reportedly launches investigation into insider trading on exchanges

Uverejnil používateľ | jún 15, 2022 |

The Securities and Exchange Commission (SEC) has reportedly launched a probe to discover how crypto exchanges are working to prevent insider trading.FOX Business reported on June 15 that a person with direct knowledge of the SEC’s activities said that the commission had sent a letter to a major crypto exchange requesting information about how the platform protects users from insider trading. The source believes the same letter has been sent to multiple exchanges.It is not clear which exchange or exchanges have received the request, but the news outlet said Coinbase, Binance, FTX, and Crypto.com all declined to comment. The SEC also declined to confirm the probe.The nature of the inquiry is also unclear. The SEC could be seeking out leads to litigate against an exchange’s potential legal violations via the enforcement division, or it could be a routine compliance check through the Office of Compliance Inspection and Examinations.Allegations of insider trading at the largest nonfungible token (NFT) marketplace OpenSea have caught the attention of the SEC in recent weeks. Cointelegraph reported on June 3 that the commission could ultimately label NFTs as securities after charges of insider trading to OpenSea’s former product manager Nathanial Chastain surfaced.Partner at the Hogan & Hogan law firm Jeremy Hogan told FOX Business that the SEC’s current interest in exchanges may stem from the allegations of insider trading on tokens that were scheduled for listing and were likely to see a price gain. Hogan said “it’s that sort of trading that the SEC might be forewarning the exchange they need to get control of.”The proposed Digital Commodity Exchange Act of 2022 would see the SEC have its presumed jurisdiction over crypto exchanges rescinded. If it passes, the bill would give the Commodity Futures Trading Commission (CFTC) authority over crypto exchanges and stablecoin providers.Current market conditions and ongoing scandals in the crypto industry may have catalyzed the SEC’s decision to start the inquiry. Early last month, the Terra ecosystem collapsed, after the Terra USD stablecoin depegged and the LUNA cryptocurrency plunged 99.9% in value. Related: SEC chair warns about ‘too good to be true’ returns amid market downturnMore recently, the decentralized finance staking and lending platform Celsius has come under fire for freezing user withdrawals as rumors swirl around its potential insolvency amid huge transfers of crypto into FTX exchange.The total crypto market cap has dropped below $1 trillion for the first time since February 2021. It is currently down 1.1% over the past 24 hours to $977 billion according to CoinGecko.

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NYC Mayor Eric Adams speaks out against PoW mining ban legislation

NYC Mayor Eric Adams speaks out against PoW mining ban legislation

Uverejnil používateľ | jún 14, 2022 |

New York City’s Mayor Eric Adams spoke out on Monday, June 13, against a bill just one step away from effectively banning Bitcoin mining in the state for the next two years.The bill is designed to place a two-year moratorium on Proof of Work (PoW) crypto miners who do not use 100% renewable energy. At the same time, New York state’s environmental agency is investigating the effects of mining on the environment. The bill passed on June 3 in the State Assembly and now awaits Governor Kathy Hochul’s signature to become a law.Mayor Adams told Crain’s on Monday that he intends to request Governor Hochul veto the bill due to the economic damage it will cause the state’s people. Mayor Adams has been a frequent proponent of the crypto industry, previously accepting BTC instead of cash for his salary payments. SCOOP @CrainsNewYork I sat down with @NYCMayor Eric Adams today and learned he’s going to ask @GovKathyHochul to veto the #cryptocurrecy crypto mining bill that places a two year pause on new mining operations. Read it here: https://t.co/X0zjbJWJ8J— Brian Pascus (@brianpascus) June 13, 2022He now stands with miners against the bill stating, “we can’t continue to put barriers in place” for miners who wish to help bolster the state’s economy with the “billions of dollars that are spent on cryptocurrency” in the state. “I’m going to ask the governor to consider vetoing the bill that is going to get in the way of cryptocurrency upstate.” Supporters of the bill, such as the original sponsor, Assembleyperson Anne Kelles, are worried that miners who use fossil fuel-burning power plants could set the state behind on its path toward reducing all carbon emissions by 85% by 2050. New York generates more than 50% of its electricity from renewable sources, shutting down older fossil fuel power plants to achieve that goal.Assembleyperson Kelles told the New York Post on June 13 that the Mayor’s support of miners was a surprise and said he is essentially asking New York “to go back to the stone age of cryptocurrency.” Mayor Adams had previously spoken out against miners in February, according to the  Post.According to data compiled in December 2021 by the Cambridge Bitcoin Electricity Consumption Index (CBECI), New York is the fourth-largest contributor of hash power in the U.S. Industry insiders told CNBC on June 3 that New York’s decision to shut down miners could have a domino effect across the industry. However, Cointelegraph reported on June 10 that GEM Mining CEO John Warren believes miners will simply move to friendlier states with better incentives.Related: Old Bitcoin mining rigs risk ‘shutdown’ after BTC price slips under $24KWorldwide, about 50% of the power Bitcoin miners use is from sustainable sources according to the Bitcoin Mining Council. Miners strive to be less reliant on fossil fuels, which requires innovative technologies. Mayor Adams suggested giving New York-based miners deadlines to reduce their emissions by specific dates. “Give us a goal, not bans,” he said.

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Binance Australia CEO: regulations will establish higher standards in crypto

Binance Australia CEO: regulations will establish higher standards in crypto

Uverejnil používateľ | jún 14, 2022 |

As the struggle for regulatory clarity down under rages on, Binance Australia’s CEO Leigh Travers thinks that such a framework will prove the crypto industry “holds itself to a higher standard” than many believe.Travers spoke with Cointelegraph on June 14 about the current state of local crypto regulatory efforts and how the opportunities available in the industry are restricted by the lack of clarity. That lack of clarity was cited as the reason why the Commonwealth Bank of Australia (CBA) has indefinitely postponed a pilot program for its crypto trading services last month. Although there are no rules on the books directly prohibiting CBA’s new service, Australian financial regulators pushed for a pause on the services because of absent consumer protections.Without the regulations in place to allow such crypto services to operate, they cannot prove their viability.From Travers’ point of view, the crypto industry is already ahead of traditional financial regulatory regimes for several reasons, and he believes new regulations should reflect that. He said he thinks “the crypto industry wants to see regulation” for a good reason.“People in crypto want to prove that they hold themselves to a higher standard than what people think they actually are.”Travers believes a prudent regulatory regime would make that higher standard apparent to Australians. With or without new regulations, blockchain analysis firm Chainalysis made it clear in January that when it comes to financial crimes, “cash is still king.”Another way Travers said the crypto industry sets itself apart from traditional finance is that cryptos such as BTC and ETH do not easily fit into any existing classification for property or financial products. Cryptocurrency is currently categorized as property in Australia. Travers said that the distinction between crypto and other assets could expand over time as decentralization increases, adding that “crypto fits across different products,” which only compounds the difficulty in responsibly regulating it. Travers called Senator Andrew Bragg one of the champions for crypto on the Liberal side, but the local industry may be at a loss for such a champion now that the Labor Party has assumed power for the first time in nine years. He said that the former majority Liberal Party saw the industry “with high paying jobs and contributions to the economy” as a good thing. He worries that the work already underway on new regulations will slow down considerably because “Labor is not immediately focused on blockchain or crypto,” which could put the domestic industry at a disadvantage.“This industry is crying out for clearer regulation because it’s tough being a service provider in this environment.”Overall, Travers seems bullish on crypto. He shared his conviction in the future of nonfungible tokens (NFT) and the various roles they could play in society.In the short term, he admitted that the way of NFTs is still uncertain and would likely continue to be simple art pieces, but that the long-term implications for NFTs were far-reaching for property rights and intellectual property. He said that he thinks “NFTs are going to be enormous. Intellectual property is why Disney is such a huge company.”Related: Aussie consumer group calls for better crypto regs due to ‘lagging laws’Despite the ongoing price crash where BTC has dipped below its realized price for the first time since March 2020, Travers is generally bullish on the industry. He noted in the short term, “crypto will struggle as so much is macro-driven,” but that it is just a matter of time before the tide changes back for the bulls. “When the fear of higher interest rates is diminished, crypto will catch that wind and make more opportunities when everything has been sold off.”

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