The Bank of International Settlements and a handful of European Central banks are building a system to track international flows of cryptocurrencies. The Bank of International Settlements (BIS) has developed a proof of concept (PoC) for a system tracking on-chain and off-chain transactions from cryptocurrency exchanges and public blockchains including Bitcoin.Working with the Deutsche Bundesbank, De Nederlandsche Bank, European Central Bank and the Bank of France, BIS has announced a successful PoC called Project Atlas that aims to gauge the macroeconomic relevance of cryptocurrency markets and decentralized finance (DeFi) protocols.The BIS Innovation Hub published details of the concept which aims to provide insights, information and economic implications of the sector, citing a lack of transparency and potential risks to financial stability characterized by high-profile failings in the crypto-space like the Terra/LUNA algorithmic stablecoin collapse in 2022.Project Atlas’s first proof of concept aims to track on-chain and off-chain data from public…Read More

The pilot will include private banks and public institutions, while the Bank for International Settlements (BIS) will provide expert technical support. South Korea joins a growing number of nations launching central bank digital currency (CBDC) pilot programs. The country’s central bank, the Bank of Korea (BOK), will launch the pilot project to explore the technical infrastructure for a CBDC. The joint announcement of the CBDC pilot by the BOK, the Financial Services Commission (FSC) and the Financial Supervisory Service (FSS) was published on Oct. 4. According to the announcement, the project will assess the viability of a future monetary system grounded on “wholesale CBDCs.“The pilot will include private banks and public institutions, while the Bank for International Settlements (BIS) will provide expert technical support. The BOK is going to test both retail and wholesale CBDCs. Within the experimental framework of a wholesale CBDC, the banks will tokenize their deposits and circulate…Read More

Sam Bankman-Fried’s counsel had argued that FTX was not located in the United States, and as SBF did follow regulatory obligations concerning FTX US, charges related to FTX international shouldn’t apply. The United States Department of Justice (DOJ) filed a motion in court on Oct. 4, claiming the lack of crypto regulations in the U.S. is no bar to the criminal charges made against former FTX CEO Sam Bankman-Fried (SBF).The DOJ’s letter was filed in response to the defendant’s request for clarification and reconsideration of charges related to the misappropriation of funds in FTX. Lawyers for SBF argued that their client was “not guilty because FTX was not regulated in the United States, and he followed the rules concerning FTX US.”The DOJ called this argument irrelevant, claiming that even though the existence of legislation may be necessary to prove a legal obligation, the lack of it does not affect whether the…Read More

Bitcoin is witnessing a 16-year high in 30-year U.S. government bond yields, and money printing is all but guaranteed, says the ex-BitMEX CEO. Bitcoin (BTC) flipping full bull could come courtesy of the United States government, a new prediction says.In an X thread on Oct. 4, Arthur Hayes, former CEO of crypto exchange BitMEX, eyed ballooning yields as precursor to a new Bitcoin and crypto bull market.Hayes: Bitcoin bulls should eye U.S. “no way out” momentU.S. treasury yields are “screaming higher,” and with that, Hayes believes that a macroeconomic flashpoint is only a matter of time.The reason comes in the form of a so-called “bear steepener” — a phenomenon that describes long-term interest rates rising more quickly than short-term ones.“Why do I love these markets right now when yields are screaming higher? Bank models have no concept of a bear steepener occurring,” he argued.Given the current steep rise in the…Read More

The first deputy governor at Banque de France calls central bank digital currency “the catalyst for improving cross-border payments.“ Representatives of Banque de France, the French central bank, have embraced the global perspective on the central bank digital currency (CBDC) discussion, touting it as the foundation of a new international monetary system.On Oct.3, Denis Beau, the first deputy governor at Banque de France, called the CBDC “the catalyst for improving cross-border payments by enabling the build-up of a new international monetary system.” The official emphasizes the necessity of considering cross-border issue around CBDCs from the outset and not as an afterthought. Related: Head of Portugal central bank deems crypto unsustainable, calls for global regulationBeau sees several paths for developing a CBDC. The first is the development of common standards and interoperability between wholesale CBDCs and legacy systems. The second — promoted by the International Monetary Fund (IMF) and the Bank…Read More

COVID-19 pandemic-induced disruptions in traditional finance, coupled with the promise to reduce operational costs, set the stage for mainstreaming the digital ecosystem. The global blockchain finance market — encompassing public and private blockchains, trading, payments, settlements and asset management — is well-positioned to grow into a $79.3B market by 2032.A report by Allied Market Research revealed that the blockchain finance market players are heavily exploring collaborations and acquisitions as a top strategy. COVID-19 pandemic-induced disruptions in traditional finance, coupled with the promise to reduce operational costs, set the stage for mainstreaming the digital ecosystem. The public blockchain sub-segment accounts for the dominant market share. Source: Allied Market ResearchIn 2023, the public blockchain sub-segment represents the lion’s share of the type of blockchains being used worldwide. Bitcoin (BTC) and Ether (ETH) are some of the prominent crypto ecosystems that use public blockchains. Public blockchains come with numerous upsides, as explained in the…Read More

AirBit Club co-founder Dos Santos is now the last AirBit defendant not yet sentenced but is scheduled to learn his fate on Oct. 4, 2023. The United States District Court for the Southern District of New York is progressing with the sentencing procedure for key individuals behind the cryptocurrency Ponzi scheme AirBit Club.On Oct. 3, the office of the U.S. attorney for New York announced the sentencing of three of the five surviving defendants in the AirBit case, including Scott Hughes, Cecilia Millan and Karina Chairez. The sentences came months after all three defendants pleaded guilty to money laundering and other charges in the AirBit case in early 2023.Hughes, an attorney who allegedly laundered approximately $18 million in AirBit Club fraud proceeds, was sentenced to 18 months in prison. Millan, a senior-level promoter of AirBit Club, was sentenced to five years in prison. Chairez, another senior-level promoter of AirBit Club, was…Read More

Blockchain technology relies on mining algorithms, such as CryptoNight, to regulate cryptocurrency projects. Find out here what CryptoNight is and how it works. Understanding mining algorithms Mining algorithms are the backbone of blockchain-based networks like Bitcoin and other protocols. In blockchain technology, mining algorithms are necessary for transaction verification and network security. A mining algorithm instructs miners’ computers to follow a set of rules to generate a valid block. Proof-of-work (PoW) is the well-known consensus algorithm used by Bitcoin and other cryptocurrencies. In PoW, miners compete using computational power to find a specific hash value that will give them the new block. Application-specific integrated circuits (ASICs) are the specialized hardware necessary for miners to be competitive in such an energy-intensive process, but before ASICs, lower-scale CPU and GPU mining equipment was utilized by users at home.ASIC mining primarily uses the SHA-256 hash function, which was designed by the United States National Security…Read More

His Majesty’s Treasury’s Digital Securities Sandbox will have “a new rule set that would allow it to do new things with digital securities.” The United Kingdom will get its second crypto sandbox by Q1 2024. It will be explicitly focused on digital securities.During her speech at the CCData Digital Asset Summit on Oct. 3, the head of capital markets at the Financial Conduct Authority (FCA), Helen Boyd, revealed that His Majesty’s Treasury plans to launch a Digital Securities Sandbox at the end of Q1 2024. Though de-jure an independent financial regulator, the FCA falls under the purview of the U.K. Treasury. According to Boyd, the upcoming Digital Securities Sandbox will differ from the already functioning Digital Sandbox, launched by the FCA in August 2023. The FCA’s Digital Sandbox aims to support tech firms in the early stages of product development, while the Treasury’s Digital Securities Sandbox will have “a new…Read More

In a short period of time, four friend.tech users reported their accounts were compromised and drained after hackers seized control of their mobile numbers. Friend.tech users are warning of possible SIM-swap attacks after a recent spate of supposed hacks resulting in nearly 109 Ether (ETH) worth around $178,000 being drained from four users in under a week.On Sept. 30, the X (formerly Twitter) user known as “froggie.eth” warned their Friend.tech account was SIM-swapped — where exploiters gain control of a user’s mobile number to intercept two-factor authentication codes, then used to access accounts — and subsequently drained of over 20 ETH.Days later, on Oct. 3, a string of Friend.tech users reported similar incidents, with musician Daren Broxmeyer saying he was SIM-swapped and drained of 22 ETH.His phone was earlier “spammed with phone calls,” which he believed was to force him to miss a text from his service provider warning him…Read More

Crypto lawyer Jeremy Hogan described the recent order as a “disaster” for the SEC, but other legal commentators are urging the community to temper its excitement for now. Crypto lawyers are seemingly divided over the significance of a recent court order from Judge Analisa Torres, who denied the United States Securities and Exchange Commission’s (SEC) plan to file an interlocutory appeal against Ripple.While many lawyers and commentators chalked the decision up as a substantive win for Ripple in its case against the regulator, other legal experts have urged the public to temper their enthusiasm. Torres denied the SEC’s interlocutory appeal based on the grounds of her previous ruling, which sided partially in favor of Ripple. She said this did not necessitate an order that “involved a controlling question of law,” which is an essential condition for approving an interlocutory appeal. Breaking: Judge rejects SEC’s motion to file an appeal against…Read More

Potential jurors shared their mostly negative interactions with crypto investing, while a slim-figured former FTX CEO sat flanked by attorneys, noticeably void of his signature curly locks. The high-profile trial of former FTX CEO Sam “SBF” Bankman-Fried kicked off on Oct. 3 with plenty of activity both inside and outside of the cramped Manhattan courtroom.Journalists, crypto influencers and other gawkers reportedly gathered in a media overflow room to take notes on the day’s events. Here are some of the most colorful observations about the day.Noticeably leaner, signature haircut goneThe defendant, Bankman-Fried, appeared noticeably leaner, according to multiple reports.Flanked by five defense lawyers, he was dressed in a navy suit that seemed bigger on him than in previous appearances, and his signature unkempt curly locks were subbed for a shorter hairstyle.Some of the first court sketches of SBF’s new haircut by Jane Rosenberg for Reuters: pic.twitter.com/n0FqW71PWD— Luc Cohen (@cohenluc) October 3,…Read More

Eight Republicans voted against Republican Representative McCarthy, making it the first time in U.S. history that the House Speaker has been ousted by Congress. United States Representative and crypto-friendly lawmaker Patrick McHenry has been appointed as interim House Speaker after the high-profile ousting of U.S. House Speaker Kevin McCarthy.McCarthy’s ousting came after a 216–210 vote by Congress, with eight of the 216 votes coming from McCarthy’s fellow Republicans, marking the first time a House Speaker has been removed in U.S. history, according to Reuters.The vote was prompted by a motion from one of McCarthy’s political rivals, Matt Gaetz, who called into question several contradictory promises made by McCarthy.Though temporary, McHenry’s appointment could be seen as a small win for the digital asset sector. The Speaker sets the House’s legislative agenda, controls committee assignments, and schedules specific bills to be debated and voted upon in the chamber.The House Speaker is considered…Read More

Ripple said it received its fully-fledged digital payment tokens license from the Monetary Authority of Singapore. Ripple has received a full license to operate as a major payment institution from Singapore’s central bank, allowing it to continue operations there after receiving in-principle approval in June.In an Oct. 4 statement, the company said its local entity, Ripple Markets APAC, was granted the full license by the Monetary Authority of Singapore (MAS).Incredibly proud of team @Ripple – just 4(!) months after we received our in-principle approval from @MAS_sg, we’ve now secured the full Major Payment Institution license for digital payment token services in Singapore. https://t.co/AH1sDUG4UE— Brad Garlinghouse (@bgarlinghouse) October 4, 2023 Ripple chief Brad Garlinghouse said in the statement that “Singapore has developed into one of the leading fintech and digital asset hubs striking the balance between innovation, consumer protection and responsible growth.”Garlinghouse said Singapore was home to the firm’s Asia Pacific headquarters…Read More

The regulator has asked a federal judge to deny Coinbase’s motion to dismiss its lawsuit, claiming the exchange knew the cryptocurrencies it sold were securities under the Howey test. The United States Securities and Exchange Commission has asked a federal judge to deny Coinbase’s motion to dismiss a lawsuit by the regulator.In an Oct. 3 filing in a New York District Court, the SEC hit back at claims in Coinbase’s dismissal motion and reiterated its belief that some of the cryptocurrencies listed on its platform were investment contracts under the Howey test subject to SEC registration.“Each crypto asset issuer invited investors — including purchasers on Coinbase’s platform — reasonably to expect the value of their investment to increase based on the issuer’s broadly-disseminated plan to develop and maintain the asset’s value,” the SEC wrote.The SEC asserted that Coinbase has “known all along” that cryptocurrencies it sells are securities if they…Read More

Sergio Massa’s stance on central bank digital currencies appears to be in complete opposition to Javier Milei, a pro-Bitcoin candidate who wants to abolish Argentina’s central bank. Argentine presidential candidate Sergio Massa has pledged to launch a central bank digital currency (CBDC) if elected to “solve” Argentina’s long-lasting inflation crisis.“I am clear that inflation is a huge problem in Argentina,” the country’s second-leading candidate said in an Oct. 2 presidential debate before outlining how he plans to solve the country’s devastating inflation:“We are going to launch the digital currency in Argentina. […] We are going to do it globally for all of Argentina accompanied by a laundering law that allows those who have money abroad to bring it and use it freely without new taxes in parallel.”Massa, who currently serves as the Minister of Economy, shut down the idea that Argentina should move to the United States dollar:“Dollarization is what…Read More

District Court Judge Analisa Torres denied the SEC’s motion to file an appeal, claiming that the regulator did not show that there were substantial grounds for difference of opinion. District Court Judge Analisa Torres has rejected the United States Securities and Exchange Commission’s motion to appeal its loss against Ripple Labs, the company responsible for issuing the XRP (XRP) token.In an Oct. 3 court order, Judge Torres denied the SEC’s motion, claiming that the regulator failed to meet its burden to show that there were controlling questions of law or that there were substantial grounds for differences of opinion on the matter.“The SEC’s motion for certification of interlocutory appeal is denied, and the SEC’s request for a stay is denied as moot.”District Court Judge Analisa Torres denies the SEC’s motion to file an appeal. Source: CourtListener Notably, the decision isn’t an outright loss for the regulator, as judge Torres scheduled a…Read More

According to Deputy Treasury Secretary Wally Adeyemo, the sanctioned wallets “received millions of USD funds over hundreds of deposits” used for illicit drugs. The Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury has sanctioned crypto wallets allegedly connected to individuals and companies involved in producing fentanyl.In an Oct. 3 notice, the U.S. Justice Department announced indictments against several China-based chemical manufacturers, as well as many of their employees who allegedly used crypto transactions as part of an illegal fentanyl precursor distribution scheme. According to the U.S. authorities, the companies “tend to use cryptocurrency transactions to conceal their identities and the location and movement of their funds,” identifying at least three individuals who held crypto wallets for payments. OFAC added wallets for Bitcoin (BTC), Ether (ETH), USD Coin (USDC), Tether (USDT) and Tron (TRX) connected to Chinese nationals and Valerian Labs to its list of…Read More

The former FTX CEO faces seven counts of conspiracy and fraud. A New York court will decide his fate. Cointelegraph reporters are on the ground in New York for the trial of former FTX CEO Sam “SBF” Bankman-Fried. As the saga unfolds, check below for the latest updates.Oct. 3: SBF trial beginsThe trial of Sam Bankman-Fried began on Oct. 3 with jury selection. Bankman-Fried is charged with seven counts of conspiracy and fraud in connection with the collapse of FTX, the cryptocurrency exchange he co-founded. He has pleaded not guilty to all charges. The case is being heard by Judge Lewis Kaplan, who has presided over a long list of other high-profile cases, including ones involving detainees at Guantanamo Bay, the Gambino crime family, Prince Andrew and Donald Trump.Bankman-Fried was ordered to be jailed on Aug. 11 after Kaplan found that his sharing of former Alameda Research CEO Caroline Ellison’s…Read More

Ardana claimed to be creating a stablecoin platform on Cardano, but new evidence suggests it may have lost investors’ money in bad crypto trades. In 2021, Ardana Labs claimed it would provide an innovative stablecoin platform for the Cardano network. The new project, called “Ardana,” would allow investors to lock up crypto collateral and mint fiat-pegged stablecoins, including a U.S. dollar-based token called dUSD. It raised $10 million from investors that year, but it suddenly closed up shop in November 2022, citing “funding and project timeline uncertainty.” Some investors blamed the loss on the “crypto winter” of 2022, during which many legitimate projects went bust from lack of funding in the extended bear market. However, new evidence from Web3 risk-management platform Xerberus suggests there may be more to the Ardana story than just fundraising issues.According to Xerberus, Ardana executives likely transferred 80% of the project’s funds to a personal wallet after…Read More