Autor Cointelegraph By Prashant Jha

Chinese police unearth multi-million dollar DeFi rug pull

Chinese police unearth multi-million dollar DeFi rug pull

Uverejnil používateľ | jan 18, 2022 |

Beijing’s crackdown on crypto continued with the start of the new year as Chinese police froze nearly 6 million yuan ($1 million) worth of crypto and arrested eight people involved with it. As per a report published in Nikkei Asia, the public security bureau of Chizhou unearthed a crypto rug pull fraud that could be worth 50 million yuan ($7.8 million). The police began an investigation after an investor lost 590,000 yuan worth of crypto in June last year. The trail of the inquiry led to eight people living in different provinces. The police also seized luxury cars, villas and other expensive items from the accused that were allegedly purchased using the defrauded money.The fraudulent DeFi program lured investors with promises of high returns by swapping liquidity. However, after investors put in their money, the scammers laundered the money from anonymous pools and got away with all the funds. The Chizhou public security said:”After the investigation and analysis by the police task force, it was found that this case was a typical case of illegally obtaining virtual currency by using blockchain technology.”Rug pulls have become one of the most common scams in the decentralized finance (DeFi) space, as it is comparatively easier to pull off. According to Chainalysis data investors lost over $2.8 billion to rug pulls in 2021. These types of scams often lure investors promising high returns, and once the pool has got enough capital, the scammers run away with all the money. Chainalysis report said: “Rug pulls have emerged as the go-to scam of the DeFi ecosystem, accounting for 37% of all cryptocurrency scam revenue in 2021, versus just 1% in 2020.”Related: CertiK identifies Arbix Finance as a rug pull, warns users to steer clearWhile crypto use for criminal activities is estimated to be around 1% of the total circulation supply, the growing scams in the DeFi space have affected investors’ confidence. However, it is also important to note that these scams often prey on the vulnerabilities of the end-user rather than an inherent issue with the crypto technology. This is evident from the top15 biggest rug pull data that shows most of the big scams happened with new tokens promising high returns.

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Singapore bars crypto service providers from advertising in public spaces

Singapore bars crypto service providers from advertising in public spaces

Uverejnil používateľ | jan 17, 2022 |

The Monetary Authority of Singapore (MAS) issued a new set of guidelines for digital payment token (DPT) providers, barring them from marketing their services in public areas.The guidelines, which were issued on Jan. 17, also warned the general public of the high risks associated with the crypto market in addition to prohibiting DPT companies from advertising their services in public places such as public transportation, public transportation venues, public websites, social media platforms and broadcast and print media. The new set of guidelines will be applicable for all the registered crypto services providers as well as those who are in the transitional period:“MAS stresses that DPT service providers should conduct themselves with the understanding that trading of DPTs is not suitable for the general public. These Guidelines set out MAS’ expectation that DPT service providers should not promote their DPT services to the general public in Singapore.“Related:  Google running crypto ads again as new policy goes into effectThe new set of guidelines also prohibits crypto service providers from opening physical automated teller machines (ATMs) in public areas. However, DPT companies can still promote or advertise their services on their native websites or mobile applications. The decision from the MAS comes amid the growing popularity of cryptocurrencies along with an increase in the number of physical crypto advertisements in the country.Crypto advertisements have become a growing issue for regulators around the globe, especially given there are very limited regulations around the crypto market. Regulators believe crypto advertisers often try to hide or not disclose the inherent risks associated with crypto trading while advertising high profits. Apart from Singapore, advertisement watchdogs in the United Kingdom, as well as the Indian high court, have also cracked down on crypto advertisements in the recent past.

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Former Thai SEC chief lays out three critical issues with crypto taxations

Former Thai SEC chief lays out three critical issues with crypto taxations

Uverejnil používateľ | jan 17, 2022 |

A former deputy secretary-general of Thailand’s Security and Exchange Commission (SEC), Tipsuda Thavaramara, has come out to question the legitimacy of crypto taxation in the country.According to a report by local newspaper The Nation, the comments from the former SEC chief come amid Thailand’s Revenue Department’s decision to discuss taxes for cryptocurrency trading. While praising the Revenue Department’s decision to inform relevant agencies, Thavaramara said, “Whether policies focus on the promotion of trade industry or not, the Revenue Department should collect taxes fairly under clear rules and practices.”Thavaramara pointed out major flaws with three forms of crypto taxation that Thailand’s revenue department and many other nations have been developing.The former SEC chief called the capital gains tax unfair and impractical since crypto exchange operators are not liable to pay investment returns to customers. She went on to discuss the complications that this form of taxation would incur in the retail payment sector, given crypto payment services would have to charge capital gains tax from customers.Thavaramara drew attention to the likes of Singapore and Australia that have exempted crypto from value-added tax regulations. She called upon the revenue department to follow the same to promote crypto usage.Related: Central bank tells Thai banks not to offer crypto tradingTalking about taxation on issuing tokens, Thavaramara said tax on the issuance of debentures should not apply to the issuing of investment tokens.The Thai government is currently mulling a 15% tax on crypto trading, and many former and current financial executives have come out to share their concerns about it. Yesterday, the Thai Stock exchange chief Pakorn Peetathawatchai said the new tax proposal would undermine growth.After years of back and forth over the acceptance of crypto as a legitimate asset, the new dilemma seems to be around crypto taxation. Most of the countries focused on taxing crypto gains have no basic framework set in place, which makes it quite difficult to determine adequate taxation policies. Apart from Thailand, South Korea is another nation that has proposed a 20% tax on crypto gains, however, the regulations were postponed by another year due to a lack of clarity.

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New survey reveals 83% of millennial millionaires now own crypto

New survey reveals 83% of millennial millionaires now own crypto

Uverejnil používateľ | dec 17, 2021 |

2021 has proven to be the year of crypto adoption where institutional crypto investments and millennials turning millionaires were familiar headlines.A new CNBC survey has revealed that a majority of millennial millionaires have invested a significant chunk of their portfolio in crypto and plan to continue their crypto investments in 2022. The survey polled investors with assets of $1 million or more, and 83% of the polled millennial millionaires revealed they had made crypto investments. 53% of total survey respondents said they hold 50% or more of their portfolio in crypto. Nearly one-third of the respondents have invested at least three-quarters of their wealth in crypto assets. While the poll results might come as a surprise to many, those who have been following the crypto boom in 2021 would know how a generation of TikTok investors made millions of dollars on investments in meme currencies.The CNBC survey also revealed a massive generational gap in terms of investment. On one side, millennials are investing as high as 50% of their wealth in crypto, while on the other side, only 4% of the older generation have invested in digital assets and only one-fourth of the GenX owns crypto.George Walper, president of Spectrem Group that conducted the survey for CNBC, said the new generation’s rising interest in the nascent crypto market could prove to be an issue for wealth managers. He believes these traditional managers would have to rethink their approach towards these upcoming investors. He explained:“I’m not sure the wealth management industry has recognized that they need to think of these as completely different generations. Most firms were hoping to ignore it. But millennial millionaires are not going to just grow out of crypto.”The survey also highlighted how the new generation is willing to take more risks with crypto rather than investing in traditional markets. The survey revealed that 48% of millennial millionaires plan to add to their crypto investments while 38% plan to hold and only 6% plan to reduce their crypto exposure in the coming year.Apart from a surge in crypto millennial millionaires in the US, Australia has also seen a 10% growth in crypto adoption over the past year. The 2021 Independent Reserve’s Cryptocurrency Index (IRCI) that surveyed 2000 people found the crypto investment among Australians has grown to 28.8%, up from 18.4% in 2020.

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Wall Street financial advisor LionTree explores crypto payments

Wall Street financial advisor LionTree explores crypto payments

Uverejnil používateľ | dec 17, 2021 |

Wall Street financial advisor that helped Amazon acquire MGM studios this year is exploring crypto payment options.LionTree, a popular financial advisor and investment banking firm, is looking into cryptocurrencies as a payment option. In its year-end letter, Chairman and CEO Aryeh Bourkoff talks about crypto as a potential tool for empowering individuals and explores some of the biggest trends in crypto, such as decentralized finance (DeFi) and nonfungible tokens (NFTs).“In 2021, crypto made itself impossible to ignore, with a market cap at times surpassing $3 trillion,” wrote Bourkoff, adding that this was because people with more cash than usual were looking for a place to guard their money against inflation, find higher returns and ensure higher yields.Bourkoff also hinted about exploring crypto payment options for its services in the near future. He wrote:“We’re currently exploring ways to start accepting crypto as payment for our services, and in the not-so-distant future, as our ecosystem grows and our relationships continue to mature, we might even create our own LionTree token of trust.”Related: Dogecoin is better than Bitcoin for payments, Elon Musk declaresWhile lauding the achievements and milestones of the crypto market in 2021, Bourkoff also highlighted some of the flaws and hurdles that it needs to overcome. He said that the technology needs to be more energy-efficient, and the focus should be on building more user-friendly interfaces.LionTree is comparatively a small firm in its size, but it has been involved in some of the most significant media partnerships and acquisitions this year. The firm played a key role in the merger of WarnerMedia with Discovery Inc. The financial advisory group was also a part of Amazon’s acquisition of MGM Studios. LionTree also helped Snap Inc. with its Initial Public Offering.

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