CryptoSlate Daily Crypto Newscast

Latest Episodes:

Is the Russian-Ukrainian conflict a long-term threat to cryptocurrency? Apr 05, 2022

Show notes

While the armed war between Ukraine and Russia may appear to be confined to a military level, it is likely to have far-reaching consequences for much of the world. Economic analysts expect it to trigger a dramatic rise in inflation partly because Russia is the world’s biggest exporter of natural gas and second-largest seller of oil. In addition, hundreds of thousands, if not millions, of people will be displaced from Ukraine, posing a new refugee issue for the world (and specifically Europe). Furthermore, there’s cryptocurrency. While many people aren’t focusing on the cryptocurrency market and industry at the moment, there’s no doubt that the protracted fight will affect Bitcoin. There is no doubt that it has already had some effects, particularly since Bitcoin dropped by more than 10% in a single day in response to the initial rumors of a Russian invasion on February 24. Russia’s potential escape from sanctions by using crypto may result in increased regulation of the business in the West, but the conflict may benefit the market. This is mainly because it illustrates how cryptocurrencies, including Bitcoin, can boost great causes and empower individuals when other avenues are unavailable. Those in need can benefit from cryptocurrency in real-world situations Since the initial assault, the market has reassuringly stabilized (as of this writing). Bitcoin fell to a low of $34,740 on February 24 as investors fled riskier assets. The Russian incursion into Ukraine raised significant concerns at the time, but given the Ukrainian forces’ resistance and the perception that sanctions against Russia were less severe than expected, the situation has since improved for BTC (and other assets). Indeed, BTC has increased by an astonishing 25% since plummeting to £34,740, to over $43,500. Depending on the situation, the market could fall again if violence erupts or sanctions have a significant impact on Western nations. Despite the ongoing conflict, markets are currently performing well in light of the current situation and many other aspects of the conflict that are beneficial to crypto. In particular, cryptocurrency has once again proven its worth as a tool for crowdfunding and charitable giving. In the latest tally from the analytical firm Elliptic, the Ukrainian government and pro-government NGOs have received approximately $24.6 million in various cryptocurrencies. This sum is the result of 26,000 separate gifts, including one for $3 billion in bitcoin and another for $1.86 million. Ukraine has also been offered contributions from Uniswap (crypto exchange), Aid for Ukraine (DAO) and Dr. Gavin Wood (the founder of Polkadot). Since the start of the conflict, Ukrainian officials posted Bitcoin and Ethereum addresses on their Twitter account, giving donors a direct and clear address to which to send donations. Stand with the people of Ukraine. Now accepting cryptocurrency donations. Bitcoin, Ethereum and USDT. BTC – 357a3So9CbsNfBBgFYACGvxxS6tMaDoa1P ETH and USDT (ERC-20) – 0x165CD37b4C644C2921454429E7F9358d18A45e14 Ukraine / Україна (@Ukraine) February 26, 2022 Over $10.2m (9.2 million euros) worth of cryptocurrency was donated to the wallets within four days of the start of the invasion. The Ukraine government has gone on to receive more than $100m worth of crypto ever since, with 60% of the donations coming from the “Crypto Fund for Ukraine”, which is run by Michael Chobanian – the founder of the Ukrainian crypto exchange Kuna. “We are still collecting crypto. It is being spent on aid like daily rations and bullet-proof vests and helmets,” the 37-year-old Ukrainian told AFP. Such contributions benefit not only the Ukrainian government and military but also show how cryptocurrencies can help break down barriers to international transactions and operations. To put it another way, cryptocurrency acts as a dependable link between various peoples and countries. Indeed, numerous recent cryptocurrency-related headlines from Ukraine have co...

PBoC: Digital yuan trial expands to 11 more cities Apr 05, 2022

Show notes

On March 31, 2022, the People’s Bank of China held a symposium on the pilot work of digital RMB (digital yuan) research and development to summarize the preliminary research and development pilot work, and arrange the deployment of the next stage of work. Present at the symposium were Yi Gang, Governor of the People’s Bank of China, and Fan Yifei, Vice Governor of the People’s Bank of China, as per a statement from PBoC. Also attending the symposium were relevant departments, bureaus, and directly affiliated units of the People’s Bank of China, all-digital RMB participating R&D institutions, and relevant “responsible comrades” of the local governments and branches of the People’s Bank of China in the pilot regions. “The meeting believed that since 2017, the People’s Bank of China, together with all participating research institutions, and with the strong support of the party committees and governments of the pilot areas, have made overall plans and careful organization to carry out the pilot projects steadily, dynamically improve the business technology design, continue to innovate application scenarios, and focus on solving financial service difficulties,” the statement reads. Pain points verified the feasibility and reliability of digital yuan According to the meeting parties, the pain points have preliminarily verified the feasibility and reliability of digital renminbi-related theories, policies, businesses, and technologies. At present, the digital renminbi has formed a number of application models in the fields of wholesale and retail, catering, cultural tourism, and government affairs payment. Without providing any specific data or other evidence, the PBoC states that the major pilot projects such as the 2022 Beijing Winter Olympics have been successfully completed, “the number of users, merchants, and transactions participating in the pilot has grown steadily, and the market has responded well.” The PBoC does not, however, seem to consider the digital renminbi to be ready for a full-scale roll-out in the entire country, instead, trials will continue in additional cities and areas. The PBoC pointed out that there remain issues that need to be sorted out through further research and exploration. To this point, the statement says the research and development of digital renminbi will face new situations and new problems in terms of demonstrating convenience, optimizing inclusiveness, highlighting innovation, ensuring security, reflecting compliance, and strengthening sustainability. Furthermore, the PBoC emphasized that the digital renminbi research and development pilot should adhere to the “people’s nature”, without expanding on the meaning of this expression. The future is dependent on softer values In the statement there are, however, hints that the future success of the digital renminbi, and for it “to play a greater role”, the issue is not a technical one but is rather dependent on “softer” values such as the coverage and inclusiveness of financial services, it helps local economic development, supports the construction of digital government affairs, improves the quality and efficiency of financial services for the real economy, and improve the business environment. “In the process of the development, promotion, and popularization of the digital renminbi, the policy design should fully stimulate the enthusiasm and creativity of financial institutions, technology enterprises, local governments, and other parties, and encourage competition in the promotion and operation,” the statement reads, which may be interpreted as some participating entities aren’t as enthusiastic about the digital renminbi as the Chinese government and the PBoC would want them to be. Other areas mentioned in the statement, that seem to need further research, include legislative questions and the impact of the digital renminbi on the financial system, the security of the digital renminbi system, and the relationship between privacy protection ...

Hackers target Trezor crypto wallet users after mailing list got compromised Apr 05, 2022

Show notes

Hardware cryptocurrency wallet manufacturer Trezor has divulged that its customers are being targeted by so-called “phishing” attacks after Mailchimp, the firm’s email automation service provider, was “compromised by an insider targeting crypto companies.” “We are currently investigating how many customers might have been affected following an insider compromise of a newsletter database hosted on Mailchimp,” Trezor wrote in a blog post today, adding: “The Mailchimp security team disclosed that a malicious actor accessed an internal tool used by customer-facing teams for customer support and account administration. The bad actor gained access to this tool as a result of a successful social engineering attack on Mailchimp employees.” Status update on the ongoing phishing attack: Trezor (@Trezor) April 4, 2022 Keep your app close, keep your seed phrase closer Further, the attacker is specifically targeting crypto-related companies, Trezor noted. As a result, its wallet users began receiving phishing emails on Sunday, April 3, asking them to click a link that leads to the download page for a “Trezor Suite lookalike app.” If an unsuspecting user falls into this trap, the malicious app then asks for their seed phrase—basically the private key that gives the perpetrators full access to their crypto holdings. Once entered, the seed gets compromised and users’ funds are immediately transferred to the attackers’ wallet. “This attack is exceptional in its sophistication and was clearly planned to a high level of detail. The phishing application is a cloned version of Trezor Suite with very realistic functionality, and also included a web version of the app.” MailChimp have confirmed that their service has been compromised by an insider targeting crypto companies. We have managed to take the phishing domain offline. We are trying to determine how many email addresses have been affected. 1/ Trezor (@Trezor) April 3, 2022 Luckily, since potential victims have to actually install the malware on their devices (although there is also a web version), contemporary operating systems should alarm them about its unknown source. “This warning should not be ignored, all official software is digitally signed by SatoshiLabs,” Trezor pointed out. Stay vigilant According to Trezor, the firm has already shut down the phishing domain. However, if some users have entered their seed phrases after all, they should immediately move their crypto to a newly generated address (unless it’s already too late, of course). “If you have not received such an email, there is still a chance your email address has been leaked, so it is best to remain vigilant in case a new wave of emails appear. Compromised email addresses may be targeted again in future so please report any new phishing attempts directly to security@trezor.io.” Until this issue is resolved, the wallet manufacturer has ceased any newsletter activity. Additionally, users should “not open any emails appearing to come from Trezor until further notice” and make sure they are using anonymous email addresses for “Bitcoin-related activity,” the firm urged.

Coinbase unveils its aggressive Indian expansion strategy Apr 04, 2022

Show notes

Coinbase unveiled that it will be significantly expanding its presence in India, growing both its employees and investments in the country. Brian Armstrong, the CEO of Coinbase, laid out the company’s strategy in a blog post, saying that India has already built a robust identity and digital payments infrastructure that can be further accelerated with crypto and Web3 technology. Coinbase wants more out of India India’s controversial crypto tax law seems to have brought some much-needed regulatory clarity to the country, despite the overwhelmingly negative effect it had on trading volume. With all doubts removed as to how the government sees cryptocurrency trading, Coinbase is set to significantly increase its footprint in India. The exchange announced plans to expand its global reach earlier this year by hiring over 2,000 employees. According to Armstrong, half of those employees will come from India, where he will spend the next several weeks putting down the company’s roots. Coinbase’s Indian tech hub, launched in 2021, already has over 300 full-time employees across the entire country. In a blog post, he said that Coinbase was on a mission to make crypto easy for anyone and anywhere in the world to use it. India’s existing identity and digital payments infrastructure, combined with its “world-class software talent,” provide a lot of potential that Coinbase plans on tapping into. “We believe that crypto and web3 technology can help accelerate India’s economic and financial inclusion goals,” he said in the blog post. Coinbase Ventures, the exchange’s venture capital arm, has already invested $150 million in Indian tech companies, both in the crypto and Web3 spaces. The company will continue to invest heavily in the country, doubling down on its regional investments, which include CoinSwitch Kuber and CoinDCX. To further expand its reach, Coinbase will host a crypto community event in Bangalore on April 7th. On April 8th, Coinbase Ventures and Builders Tribe will host a startup pitch event where local companies will be able to pitch and win up to $1 million in funding. As of March 27th, over 100 startups applied for the pitch day, with the final number expected to be much higher. Armstrong said: “India is a magical place, and I believe crypto has a big future here. We’re excited to help build that future, and this event is an important step,” Coinbase’s entry into India is a positive development for the country. As crypto companies in India are bracing themselves for the repercussions of a 30% unrealized gains tax on crypto trading and a 1% TDS tax, having a company with Coinbase’s volume dive head-first into the market paints an optimistic picture. The exchange has so far managed to overcome every regulatory obstacle it faced in the U.S. and has since become one of the main drivers of regulatory discussions with the U.S. Securities and Exchange Commission.

Is Apple about to send Bitcoin to the moon? A rundown of the rumor Apr 04, 2022

Show notes

Rumors of Apple utilizing Bitcoin in some capacity are running red hot. Fanning the hearsay, YouTuber Crypto Rover summed up sentiment by saying the knock-on effects will see Bitcoin moon. Apple will send #Bitcoin to the moon! Crypto Rover (@rovercrc) April 3, 2022 There have been numerous reports of an Apple-crypto tie-up in the past. Perhaps the most prominent example of this was talk of Bitcoin being added as a treasury reserve asset just over a year ago. However, despite the attention, all such rumors have fizzled into nothing. Will this time be any different? Strike CEO drops a hint of an Apple Bitcoin connection Strike CEO Jack Mallers hints that things could be different this time. Late last month, Mallers posted an uncaptioned tweet featuring a video from the Apple “think different” advertising campaign that ran from 1997 to 2002. The commercial featured black and white footage of well-known historical figures, including Albert Einstein, Mahatma Gandhi, Thomas Edison, and Muhammad Ali. The accompanying voice-over talks about misfits, rebels, and troublemakers, who are often seen as crazy, being the very people who drive change. A few days before this, Mallers also posted a tweet about the upcoming Bitcoin 2022 conference in Miami between April 6 and 9. Four pictures accompanied the tweet. The first is an infographic showing a QR code payment system, then a mission statement from Strike, followed by a photo of Mallers flipping the bird in front of a Chase ATM wearing an Apple hat in Google colors, and finally a promo of Mallers’ speaking slot at the conference. The biggest announcement of last year’s Bitcoin conference was the news that El Salvador would adopt Bitcoin as legal tender. Chances are, this year’s event will see another disclosure of equal if not greater significance. A rundown of the rumor According to Bloomberg, Apple is working on its own payment processor technology that would result in less reliance on third-party partners. The long-term plan would see Apple bring a range of payment functions in-house, including payment processing, risk assessment for lending, fraud analysis, credit checks, and additional customer-service roles, as it seeks to expand Apple Pay. Might there also be room for Bitcoin, as suggested by Mallers in his cryptic tweets? Last year, Apple CEO Tim Cook shut down rumors that his firm was about to add Bitcoin as a treasury asset. He said he didn’t see Apple stock as a vehicle for crypto exposure. Cook also said the firm is not planning “to take crypto for our products,” but they are looking at other things. Roll on Bitcoin Miami 2022.

Crypto miners strike gold in Oklahoma as state introduces new tax incentives Apr 04, 2022

Show notes

Oklahoma lawmakers are in the final stages of introducing legislation that would make the state the new cryptocurrency mining hub in the U.S. Called the “Commercial Digital Asset Mining Act of 2022,” the proposed bill would see the state provide various incentives to businesses in “innovative technological industries” that set up shop in Oklahoma. Cheaper electricity, lower taxes, and a welcoming local government in Oklahoma In March, the Senate got the first glimpse of a new bill that has the potential to change the landscape of cryptocurrency mining in the U.S. Republican Senator John Montgomery presented his “Commercial Digital Asset Mining Act of 2022,” saying that the mining industry was growing and won’t be going away anytime soon. This, he told the Senate, is why Oklahoma wants to draw as many of those businesses across their state lines and have them set up roots there. This would be done through a series of incentives that would remove a significant amount of tax burden from mining companies. And while Sen. Montgomery said that his working group is yet to set a cap on those incentives, he said they’d be worth no more than $5 million. While those supporting the bill believe that this would be enough to put Oklahoma on the map for many large miners looking to relocate, some senators questioned the effectiveness of the incentives, fearing that they wouldn’t benefit state and local services and programs. “With a growing industry it’s exciting, but we’ve got to make sure that we don’t miss the opportunity to invest back into our state from that growth industry,” Senator Julia Kirt said during the debate last month. However, there is already evidence that Montgomery’s crypto-welcoming policy could have significant benefits for the state. Earlier in March, German tech company Northern Data announced that it will establish its North American headquarters in Pryor, Oklahoma. The $270 million investment will see the data company establish a 100-acre operation at the MidAmerica Industrial Park and hire more than 150 employees in the coming months. The company will initially set up a cryptocurrency mining operation but will expand into other “innovative technological industries,” including data centers, cloud services, and research labs dedicated to data processing. The campus is expected to become operational within 24 months and will add more employees as it expands in the future. To power the huge operation, Northern Data will purchase up to 250 megawatts of power from the Grand River Dam Authority, the state-owned utility that provides low-cost, reliable energy to municipalities and corporate customers. Having a company the size of Northern Data set up roots in Oklahoma will likely be enough to push other companies to follow suit, regardless of the tax incentives. The incentives will provide companies with a credit against the tax imposed by the state for investing in a mining facility or increasing the number of full-time employees in an existing mining operation. To qualify for a credit against tax, a company must invest at least $40 million over three years in a “qualified depreciable property.” Mongtomery’s legislation was cleared by the Oklahoma Senate on March 22nd and moved to the legislature’s lower chamber on March 23rd. The Senate published its standing committee report on the bill, suggesting passing the law as amended earlier that month, and is expected to finally amend the bill in the coming weeks.

Australia continues regulation drive with new policy targeting crypto and financial influencers Apr 04, 2022

Show notes

The Australian Securities and Investments Commission (ASIC) has issued new warnings to financial influencers. This was contained in its Information Sheet, highlighting what influencers and companies hiring them should be aware of. While there’s no specific mention of cryptocurrency, these rules will most likely apply to the crypto industry. ASIC issues warning to financial influencers The rule appears to target the promotion of unlicensed financial services, something that crypto services fall under. In a warning directed at financial influencers who are unsure of whether the brand violates the law, ASIC states, “Think about your content carefully and whether you are providing unlicensed financial services.” The new information sheet says that influencers may need a license to give financial advice. The penalties for breaking the rules appear severe as companies could get up to 5 million dollars in fines while individuals could get as much as five years imprisonment. The rules come amidst new efforts by regulators to protect consumers in the country. In recent weeks, several Australians have fallen victim to targeted crypto scams. Regulators have also doubled down on their effort to prevent and recently filed legal actions against Meta for not preventing the promotion of crypto scams on its platforms. Influencers have a hold over youths Influencers have attained a prominent role in the new economy, necessitating licensing. A 2021 ASIC survey estimated that 33% of citizens between 18 and 21 follow financial influencers. It also discovered that 64% of young people in the country modified their behavior because of an influencer. Based on this, ASIC believes it’s important to regulate the sector. ASIC Commissioner Cathie Armour stated that Influencers who discuss financial products and services online must comply with the financial services laws. If they don’t, they risk substantial penalties and put investors at risk. What actually qualifies as influencing? However, there are questions as to what qualifies as influencing. ASIC’s explanation suggests that influencing has to do with recommending rather than just stating facts. Modify old content / minimise investing discussion / not mention any financial products, funds etc. Some may choose to close up shop, I know one who is, while others will prob continue for enjoyment in a limited capacity. Sad situation for free speech. Dave Gow | Strong Money Australia (@strongmoneyaus) April 2, 2022 But Financial blogger Dave Gow who runs Strong Money Grow, wrote that Writing almost anything could influence someone to invest or use any financial product. Some believe that these rules shouldn’t apply to crypto. One of them is Senator Andrew Bragg, who said that ASIC’s current policy applies the law to crypto to the extent that digital assets fall within the definition of a financial product. Crypto is currently unregulated and not a financial product. I believe we can do more. This statement echoes the general call for more regulatory clarity on crypto in the country. Authorities appear to be working on that presently though nothing is concrete yet.

Particlon whitelist giveaway and AMA Monday 4th April, 3.30 GMT Apr 04, 2022

Show notes

We are teaming up with Charged Particles for another AMA today, April 4th, at 3.30 PM GMT via Twitter Spaces. You can set a reminder via our pinned tweet or the link below. We will be giving away the last few whitelist spots for the upcoming Particlon drop which takes place on April 5th. Charged Particles NFTs can hold nested tokens and other digital assets resulting in yield-bearing art. Owners can gain interest on Aave aTokens nested within their NFTs, as well as reap the benefit from any appreciation in the price of the artwork itself. 🎙Announcing our next #AMA with @Particlon_xyz from @DefiNft! ❓Ask questions using #particlonAMA 🎁 Join and win a chance access the whitelist for the public mint on April 5th 🎤 Hosted by @akibablade CryptoSlate (@CryptoSlate) April 3, 2022 Particlon is a generative NFT project using the Charged Particles infrastructure. There are over 10,000 avatars across 3 worlds and 4 species all with unique abilities and attributes. Each mint will include a unique avatar as well as a random allocation of the Particlon Utility Token which will be used for “in-game weapons”. The second stage of their roadmap highlights the opportunity for holders to claim a 3D rendering of their avatar for use in “game and metaverse integrations”. Quite how this will work is something I hope to get into in the AMA. Join us on Twitter today, April 4th at 3.30 PM GMT, for a chance to get whitelisted for the drop and to find out more about this exciting project. If you miss the live AMA you will be able to listen back to the recording at any time.

UK begins campaign to become crypto “world leader” with an NFT Apr 04, 2022

Show notes

The UK announced plans to mint an NFT and said it want to bring stablecoins into the country’s payments framework to enable issuers and service providers to flourish in the country. The announcement is part of the country’s long-term plans to regulate the crypto industry as a whole and become a “world leader” in innovation and financial technology. The UK has a long standing history as a global financial hub and intends to keep that spot. The NFT and Stablecoins City Minister John Glen broke the news at a fintech event London — the Innovate Finance Global Summit — and told the conference that Finance Minister Rishi Sunak has asked the country’s Royal Mint, which is responsible for minting coins in the UK, to create and issue an NFT “by the summer.” He added that: “There will be more details available very soon.” Meanwhile, the UK government’s website published a press release detailing some of its plan to become a “global cryptoasset technology hub.” Under the plan, the country intends to officially adopt stablecoins as a recognized form of payment to foster growth in the industry and help both issuers and service providers grow. Bringing stablecoins under the umbrella of regulation is the first in a series of measures to set the country up as a hub of crypto technology and investment, according to the release. However it is unclear how they will regulated and whether this will include all stablecoins or only a few. According to Sunak, the government hopes to give more clarity to the industry in terms of regulation to foster growth and innovation. He said: “This is part of our plan to ensure the UK financial services industry is always at the forefront of technology and innovation.” Sandbox for DLT innovation Glen also said that the UK is very interested in Distributed Ledger Technology, or DLT, and how it can be leveraged to make various systems more efficient. He added that the government will legislate to establish a financial market infrastructure sandbox to allow firms to experiment with DLT and how it can be used to innovate infrastructure services that underpin markets. The government also intends to conduct research into how DLT can be used for sovereign debt instruments and the potential benefits of doing so. Regulation Glen said that a full regulatory regime coming into effect is still a ways off, however, there will be more developments in the coming months. He added that there will be consultation on how crypto should be regulated later in the year. According to the release, the government intends to create a competitive tax environment for crypto, which will include a review of DeFi based loans and profit. It may look to bring cryptoassets under the Investment Manager Exemption regime to give DeFi participants leeway. Meanwhile, the Financial Conduct Authority, or FCA, will hold a two day “CryptoSprint” in May to gather insight from industry participants on how to regulate the sector. Additionally, the Economic Secretary will establish and chair a Cryptoasset Engagement Group which will consult key regulatory authorities and the industry on the issues affecting the crypto sector.

Crypto.com’s latest partnership to enable crypto payments at 170 merchants in Australia Apr 04, 2022

Show notes

South Australian group of private companies Peregrine Corporation has partnered with Crypto.com to enable more than 170 On the Run (OTR) convenience operations, including service stations, restaurants, and drive-through locations, to accept issue cryptocurrency as a payment method. Crypto.com’s general manager for the Asia-Pacific region, Karl Mohan, said: “Paying with cryptocurrencies at real-time market prices and avoiding the cost and hassle of fiat conversions. We’re thrilled to be bringing this vision to life with one of the most trusted companies in Australia.” Crypto.com’s focus on payments Crypto.com’s recent focus on crypto payments is driven by internal research which revealed that 75% of its customers are interested in paying with crypto in 2022. Referring to Cyrpto.com’s research and commenting on the company’s partnership with Peregrine Corporation, Mohan said: “A note to merchants: customers are ready when you are! This is a great opportunity to increase your addressable market, reduce dispute costs, and lower transaction fees.” Despite being the largest, this partnership is not Crypto.com’s first venture in Australia regarding payment services. The company also launched a payment app and a Visa card in the country in 2021. Australia’s take on crypto According to Gemini’s latest report, Australia ranks 8th in crypto ownership in the world with 18% of the populace holding crypto. The country’s government has been publicly pro-crypto as well. It recently stated that it does not perceive crypto as a threat and is working on regulation to protect crypto customers. Meanwhile, a recent study from Australian crypto exchange company Swyftx revealed that most business leaders are open to implementing crypto payments within their businesses. This partnership between the Peregrine Corporation and Crypto.com also marks the first step towards more mainstream acceptance of crypto payments in Australia. Peregrine Corporation Executive Chairman Yasser Shahin commented on the partnership and said: “[This partnership is] a clear opportunity to tap into the momentum of this fast-growing space for the benefit of our customers.Crypto.com is a world-changing platform. It is synonymous with the future of technology, payments, and business.”

Our TOPPODCAST Picks

Follow Us

Stay Connected

CryptoSlate Daily Crypto Newscast

Related Podcasts

Links

Stay Connected