The North American Securities Administrators Association (NASAA), a consortium of securities regulators from North America, recently expressed its stance on digital assets.
In a filing on October 10 in the United States District Court for the Southern District of New York, NASAA supported the U.S. Securities and Exchange Commission’s (SEC) assertion that digital assets should not receive any preferential treatment under securities laws.
This perspective emerges in the wake of a lawsuit filed by the SEC against Coinbase in June, in which the crypto exchange was accused of breaching federal securities regulations.
Coinbase retorted, asserting that its digital assets and related services shouldn’t be categorized as securities and accused the SEC of overstepping its boundaries.
However, NASAA’s general counsel, Vincente Martinez, defended the SEC’s stance, stating that it wasn’t “novel or extraordinary.”
He emphasized that the SEC’s viewpoint aligns with its longstanding public stance and remains well-grounded in existing laws.
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Central to the lawsuit is the Howey test, which determines what constitutes an investment contract. Coinbase contests that digital assets don’t meet the full criteria of this test.
Yet, Martinez believes the Howey test is versatile enough to account for technological progress in securities markets, such as securities traded on blockchains.
He urged the court to dismiss Coinbase’s attempt to misinterpret established laws to dodge regulatory responsibilities.
Furthermore, Martinez critiqued Coinbase’s reference to the “major questions doctrine,” which posits that the SEC requires congressional authorization on matters of substantial political or economic gravity.
Challenging Coinbase’s portrayal of the digital asset sector as a vital segment of the American economy, Martinez countered that most digital assets, barring a few exceptions, lack a practical economic purpose beyond speculation.
He remarked, “As a class of assets, digital assets are not economically useful.”
He also accused Coinbase of exaggerating the magnitude and relevance of the digital asset industry, especially the segment under securities regulators’ purview.
Concluding, NASAA, comprising 68 members including securities regulators from all U.S. states and several from Canada, Mexico, and U.S. territories, joined the SEC in urging the court to reject Coinbase’s motion to dismiss the lawsuit.
Martinez highlighted the significant interest of NASAA and its members in the case’s outcome.
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Cryptocurrency exchange Bitstamp is set to halt its services for Canadian customers from January 8, 2024, as announced by Bobby Zagotta, Bitstamp USA CEO and global chief commercial officer.
Following this decision, all Canadian accounts will be deactivated, and customers have been advised to withdraw their funds and close their accounts before the stipulated date.
Despite this move, Bitstamp emphasizes its commitment to the safe return of assets, stating, “your crypto assets always remain yours.”
Bitstamp’s departure from Canada is not an outright exit but a strategic pause.
The company cites its ongoing expansion strategies and the need to concentrate on regions with favorable regulatory conditions as the primary reasons.
Zagotta mentioned, “We aim to revisit the Canadian market in the future.
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But at present, we can’t dedicate the necessary resources to meet new Canadian regulations.”
Furthermore, while refocusing on aligning with global regulations, Bitstamp remains dedicated to its international clientele.
Decisions about their operations in particular nations will hinge on regulatory dynamics and market scenarios.
This pivot in strategy is concurrent with Bitstamp’s reported endeavors to procure funding for scaling its worldwide operations.
There are indications that the exchange has been in fundraising mode since May 2023, with goals like introducing derivatives trading in Europe by 2024 and intensifying its footprint in the UK.
Established in 2011, Bitstamp stands as one of the pioneering cryptocurrency exchanges.
It has an extensive global reach, catering to countries like the US, Singapore, South Korea, and Japan, among others.
As per CoinGecko, Bitstamp’s daily trading volume is approximately $114 million. This figure, however, pales in comparison to its rival Binance, which boasts a daily trade volume nearing $4 billion.
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Blockchain data highlighted by Coinbase director, Conor Grogan, shows that in 2021, Alameda Research redeemed over $38 billion in Tether USDT tokens, even though their assets under management didn’t match this value. At the 2021 crypto market’s peak, the USDT creation by Alameda exceeded its recorded assets.
Grogan also pointed out probable USDT redemptions ordered by FTX were from Alameda’s stash, approximately 3.9 billion USDT. Most of these redemptions coincided with Terra’s algorithmic stablecoin downturn.
In January 2021, Alameda’s former co-CEO, Sam Trabucco, addressed reports about major USDT mints by Tether.
He detailed how Alameda capitalized on arbitrage opportunities due to USDT’s value fluctuations on different exchanges.
He explained that the value at which USDT trades compared to $1 tends to be volatile.
When juxtaposed with BTC/USD trades, Bitcoin-to-USDT trades often show a minor deficit in basis points.
Trabucco emphasized that the BTC/USDT and BTC/USD markets are better indicators of USDT’s trading position than any individual exchange’s USDT/USD market.
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Unlike USDT, other stablecoins like the USD Coin (USDC) have a steadier premium.
This is attributed to the USDT creation and redemption process.
As only certain firms can directly create and redeem USDT, most traders obtain and trade USDT via the markets, bypassing Tether’s treasury.
Highlighting Alameda’s trading strategies, Trabucco mentioned that when USDT’s value exceeds $1, a well-equipped firm like Alameda would be inclined to sell, and they did so extensively.
With their ability to initiate USDT creations and redemptions, they could place significant bets.
This was a strategic move for Alameda, ensuring both profit for the company and stability for USDT’s value, keeping it close to the $1 mark.
Alameda leveraged these arbitrage chances by creating USDT tokens and cashing in on the premium.
In 2021, Sam Bankman-Fried also mentioned Alameda’s active redemptions of USDT for U.S. dollars.
Cointelegraph is awaiting Tether’s response regarding the exact number of USDT tokens minted upon Alameda’s request.
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The hacker, dubbed “FTX Drainer”, who previously stole over $400 million from FTX and FTX.US in November, might be exploiting the media frenzy surrounding Sam Bankman-Fried’s fraud trial to further conceal the stolen assets, as per Hugh Brooks, CertiK’s director of security operations.
As Bankman-Fried’s trial commenced, the “FTX Drainer” initiated a series of transactions, moving millions in Ether obtained from the theft.
Recently, the hacker shifted about 15,000 ETH (equivalent to approximately $24 million) to three fresh wallet addresses.
Brooks suggests that the trial’s widespread media coverage might be serving as a distraction, allowing the hacker to stealthily move the assets.
He theorized that the perpetrator might have assumed the trial would consume so much of the Web3 sector’s attention that tracking the stolen funds would become more challenging.
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FTX’s valuation once stood at $32 billion.
However, following the hack, it filed for bankruptcy on November 11. On the same day, FTX staff noticed significant fund withdrawals from their wallets.
A Wired report dated Oct. 9 unveiled that on realizing the hacker had access to several wallets, FTX’s team shifted a significant portion of the remaining assets, between $400 million to $500 million, to a private Ledger cold wallet.
This strategic move probably thwarted the hacker from pilfering close to $1 billion.
Brooks has also shed light on the hacker’s evolving tactics. Initially, on November 21, the hacker tried laundering the stolen money using the “peel chain” method, which involves dispersing decreasing amounts to fresh wallets.
However, the hacker now adopts a more intricate technique, splitting the funds across numerous wallets. This makes tracing more time-consuming.
As of now, the identities of individuals or groups responsible for the hack remain elusive, and investigations persist.
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U.S. prosecutors have urged the court overseeing Sam Bankman-Fried’s trial to prevent his defense from raising arguments about the possible recovery of FTX customer funds invested in Anthropic.
Bankman-Fried directed $500 million into the AI startup, Anthropic, in April 2022. The U.S. government, however, intends to demonstrate that these funds were siphoned from FTX customer deposits.
Anthropic has recently been in the spotlight, aiming to secure new investment, with major companies like Amazon and Google showing interest.
This could boost the firm’s valuation to between $20-$30 billion.
Prosecutors stress that this surge in valuation could also amplify the worth of Bankman-Fried’s stake, which might facilitate the recovery of assets for those impacted by FTX’s bankruptcy.
A letter presented to Judge Lewis Kaplan reveals that the U.S. government and Bankman-Fried’s attorneys have debated issues likely to emerge during witness cross-examination.
The defense is prepping to introduce evidence about the present value of Bankman-Fried’s 2022 investment in Anthropic.
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Prosecutors argue that such evidence could be utilized to claim that FTX customers and other affected parties might be fully compensated.
This notion has been previously termed by the court as an “impermissible purpose”.
They further state, “Such evidence would… be wholly irrelevant, and present a substantial danger of unfair prejudice.”
The crux of the case against Bankman-Fried lies in accusations of wire fraud, involving the use of FTX customer deposits for various investments.
The prosecution holds that any successful investments Bankman-Fried made are ultimately inconsequential to the charges being examined.
While the government aims to present evidence of Bankman-Fried’s alleged misuse of customer funds leading to significant deficits for FTX, they do not plan to provide details on the final losses post the FTX bankruptcy completion.
The Bankman-Fried trial, reported by Cointelegraph’s Ana Paula Pereira from New York, commenced by exploring the disappearance of around $8 billion of FTX customer assets from the defunct crypto exchange.
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The European Union (EU) is in advanced discussions to enact further regulations on major artificial intelligence (AI) systems.
These talks involve the European Commission, European Parliament, and the member states of the EU.
Their primary focus is the potential impacts of extensive language models like Meta’s Llama 2 and OpenAI’s ChatGPT-4. The objective is to include additional constraints on these models within the forthcoming AI Act.
Bloomberg’s sources suggest that the EU’s aim is to ensure that startups are not excessively restricted while maintaining adequate control over larger AI systems. The agreements made thus far remain preliminary.
The approach being considered for the AI systems mirrors the strategy used for the EU’s Digital Services Act (DSA).
The DSA was recently executed by the EU to ensure that platforms and websites maintain specific standards, particularly around the protection of user data and monitoring for unlawful activities.
Moreover, massive web platforms face even more stringent regulations under the DSA.
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For instance, major companies like Alphabet and Meta were given a deadline of August 28 to align their service practices with these newly introduced EU standards.
The AI Act by the EU is set to become among the initial mandatory AI-specific regulations established by a Western government.
By contrast, China had already put into effect its own AI regulations by August 2023.
Within the stipulations of the EU’s proposed AI Act, companies involved in the development and rollout of AI systems would be required to conduct risk evaluations.
Furthermore, AI-produced content would need clear labeling, and the use of biometric surveillance would be entirely prohibited, among other provisions.
It’s important to note, however, that the legislation is still in its proposal stage, granting member states the discretion to challenge any of the suggestions made by the parliament.
Since China introduced its AI regulations, over 70 new AI models have been launched, indicating a vibrant AI landscape despite the regulatory environment.
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Major global cryptocurrency exchanges, Binance and OKX, are adjusting their operations to adhere to the U.K.’s new Financial Promotions (FinProm) Regime.
Introduced by the U.K. Financial Conduct Authority (FCA) on October 8, the regime aims to ensure transparency in crypto promotions.
In anticipation of these regulations, Binance, on October 6, introduced a new domain exclusively for U.K. retail users and joined hands with the local peer-to-peer lending platform, Rebuildingsociety.
Starting October 8, U.K. retail users will be directed to this domain which will only display Binance offerings in line with U.K. regulations.
This means services like spot and margin trading, Binance Pay, the NFT marketplace, loans, etc., will be accessible.
However, offerings like gift cards, referral bonuses, and research will no longer be available to U.K. retail users due to the FinProm compliance.
Notably, this will not affect users exempted under FinProm, like specific institutional and professional investors.
Similarly, OKX made its own compliance announcements on October 6.
The platform has limited its token offerings to about 40 assets and now sports striking risk warnings on its platform.
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One such cautionary message on the OKX homepage advises investors about the volatile nature of crypto investments, underlining the importance of investing only what they’re prepared to lose.
Furthermore, OKX has initiated a dedicated U.K. social media account (on a platform formerly known as Twitter) to keep users updated about compliant services and products.
Another entity, the crypto payment service MoonPay, is working to accommodate the FinProm rules.
MoonPay’s deputy general counsel, Matt Sullivan, highlighted the global challenge of meeting these U.K.-specific standards.
Sullivan emphasized that adhering to the FinProm rules means tailoring products, incorporating new processes, and initiating company-wide education.
He hinted at a possible adjustment phase as interpretations of certain rules might evolve.
However, some crypto firms seem to be grappling with these new promotional regulations.
As per an FCA announcement on October 8, significant crypto exchanges, KuCoin and HTX, possibly marketed their services without requisite permissions.
These firms were among 143 “non-authorized firms” cautioned against by the FCA, advising the public to avoid interactions with them.
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Amsterdam, The Netherlands, October 9th, 2023, Chainwire
The token presale for upcoming crypto casino TG.Casino has now raced past $500,000 and is approaching the $1 million soft cap mark.
TG.Casino Token ($TGC) is currently available to purchase for $0.125 – holding the token allows users to generate staking rewards and earn a share of casino profits through a token buyback once it is launched.
At the time of writing the presale has raised almost $700,000 with the staking annual percentage yield (APY) set at 737%.
Stake $TGC to Earn Rewards and Share Casino Profits
TG.Casino is a fully decentralized and licensed crypto casino – powered by Telegram – that will offer instant and anonymous play, anonymous crypto transfers, thousands of slots, classic casino games, and a competitive sportsbook.
However, unlike many other casinos in the crypto space TG.Casino, which has not yet launched, is offering native token $TGC for holders to earn further rewards beyond gambling and wagering.
Staking
The first is through its staking mechanism, with presale buyers able to add purchased $TGC tokens immediately to the staking pool and generate an APY.
As outlined above, the current APY is over 737% meaning those who have purchased early will continue to accrue tokens as the presale continues. The APY will reduce as more tokens are locked into the pool meaning.
Profit Sharing/Token Buyback/Burn Mechanism
Staking will also play an integral role in the profit-sharing system.
Users who have tokens staked once the casino is up and running will earn a share of daily profits through a planned token buyback system.
$RLB, the native token of Rollbit, surged 60% and reached a peak market cap of $700 million after it announced a buyback scheme in August.
The TG.Casino buyback will see the casino use a share of daily profits, once live, to purchase $TGC tokens and distribute them to those who are staking.
This will allow token buyers to earn more tokens. However, the buyback goes a step further by also adding a burn mechanism as a feature.
From the buyback, 60% of purchased tokens will be distributed to stakers as rewards, with 40% sent to a burn address meaning they are permanently taken out of supply.
As has been shown with the likes of Maker ($MKR) and Verasity ($VRA), token burns can have a positive effect on price, as the supply is reduced and the value of an individual token increases.
Presale Info and Tokenomics
The presale launched in late September and is offering tokens at a fixed price of $0.125 through one round.
There is a max supply of 100 million tokens with 40 million allocated to the presale (40%) with a soft cap of $1 million – which is now 67% sold out – and a hard cap of $5 million.
There is a minimum purchase of 100 tokens ($12.50), with $TGC an Ethereum-based ERC-20 token that can be purchased with ETH, BNB or USDT.
The remaining supply will be allocated to decentralized exchange liquidity (20%), the staking pool (20%), the rewards system (10%), marketing (5%), and affiliates (5%).
Its token smart contract has been audited by Coinsult with no major security issues found.
Telegram-Powered Casino
TG.Casino will utilize powerful Telegram bots to offer users an enhanced customer experience, with players able to enjoy anonymous and instant crypto gambling.
The crypto casino is fully licensed by the government of Curacao, and follows anti-money-laundering and responsible gambling policies. Some players will only be able to access the site via a VPN, however.
Players use the messaging app, which has almost 800 million active global users, to access the casino via command-based prompts.
That means that sign-up is instantaneous and anonymous, with no KYC verification steps to complete, and the casino and Telegram recognizing a phone number as a unique reference for individual players.
Telegram also allows players to deposit and withdraw crypto instantly and anonymously, via trusted crypto wallets such as MetaMask, Coinbase and Trust Wallet.
Players can transfer around a dozen cryptocurrencies, including BTC, ETH and USDT, without fees and with a minimum amount of just $1 (or equivalent).
Once live, the casino will offer thousands of leading and provably fair slots games – such as Aviator and Plinko – from leading and trusted developers like Spribe, Hacksaw, and Evolution.
TG.Casino will have casino classics such as Poker, Blackjack, and Roulette, with both live and virtual dealers and dozens of different tables that are suitable for both novice players and high rollers.
There will also be a sportsbook with competitive odds from leading providers, such as BetRadar, with pre-game and in-play markets on competitions such as the Premier League, NFL, NBA, and many more, including eSports.
New players at TG.casino can earn a 150% matched first deposit bonus, up to $30,000, and get 300 free spins – there is a 40x wagering requirement to receive the full bonus.
For more information on the casino – as well as the presale, staking and buyback mechanism – users can read through the TG.Casino whitepaper or join the Telegram community group
Disclaimer:
TG.Casino is the source of this content. This Press Release is for informational purposes only. The information does not constitute investment advice or an offer to invest.
Contact
TGCASINO
TG Casino
[email protected]
On October 5, the European Securities and Markets Authority (ESMA), the EU’s primary markets regulator, unveiled its second consultative paper focused on the Markets in Crypto-Assets (MiCA) mandates.
This comprehensive 307-page report is an invitation for stakeholders to share their perspectives on five specific MiCA areas.
At the core of the discussion is the proposal for sustainability indicators for distributed ledgers.
These indicators emphasize both quantitative metrics, such as energy consumption, greenhouse gas emissions, and waste production, and qualitative insights on the environmental consequences of using equipment by blockchain nodes.
Another pivotal aspect revolves around the disclosure of inside information, ensuring that relevant data stays transparent and accessible.
The ESMA has also pinpointed the necessity for technical prerequisites for white papers, which would guide the foundational design of crypto projects and their respective public presentations.
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Further, in a move to bolster trading transparency, the ESMA has recommended that Crypto-Asset Service Providers (CASPs) disclose crucial trading details.
This encompasses data like trading date and time, the specific crypto-asset involved, pricing details, transaction volume, execution location, and the unique transaction ID.
Notably, while CASPs would have flexibility in how they store transactional data, the ESMA mandates that they must be capable of converting this data into a predetermined format upon request by authorities.
As the ESMA continues to refine its approach towards regulating the burgeoning crypto market, stakeholders can anticipate another consultative paper in Q1 2024.
The culmination of these consultations will be a final report, which will serve as a foundation for the draft technical standards expected to be presented to the European Commission by June 30, 2024.
It’s worth noting that the ESMA had previously issued a consultation paper in July, where they highlighted the need for crypto companies registering under MiCA to furnish additional details to the national authorities of their registration country.
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Huobi Global’s cryptocurrency exchange, HTX, has successfully recovered funds stolen by a hacker in September and subsequently issued a bounty of 250 Ether as a part of the resolution.
On September 25th, a hot wallet belonging to HTX was compromised, resulting in a loss of 5,000 ETH, which was approximately valued at $8 million. However, the firm swiftly engaged the hacker, asserting they knew the perpetrator’s identity.
In an attempt to recuperate the stolen assets, HTX proposed a deal: the hacker would receive a 5% bounty, equivalent to roughly $400,000, in exchange for returning 95% of the stolen funds by October 2nd.
This offer came with the added incentive that HTX would abstain from pursuing any legal action against the hacker.
By October 7th, the situation was resolved. Justin Sun, an investor in Huobi Global and adviser to HTX, conveyed his gratitude via an X (previously known as Twitter) post, thanking the broader industry for its assistance.
He emphasized, “Strengthening blockchain security and safeguarding user assets is an immense challenge.
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Our constant endeavor is to ensure complete security for user assets, and we’re grateful for the unwavering support from our users and the community.”
2023 has seen a significant uptick in cyberattacks on crypto platforms.
A study by blockchain security company Immunefi revealed that there were 76 breaches on cryptocurrency and Web3 platforms in Q3 2023, a sharp rise from 30 hacks in Q3 2022.
In a similar incident during the same week, the decentralized protocol, Mixin Network, suffered a massive $200 million hack due to a vulnerability in a third-party cloud service.
In response, Mixin Network has announced a $20 million bug bounty for the return of the stolen assets, but recovery seems uncertain.
Adding to the complexity of these hacks, on October 6th, Anne Neuberger, the US deputy national security adviser for cyber and emerging technology, suggested to Bloomberg that North Korean hackers might be responsible for the Mixin Network breach.
Neuberger commented on the familiarity of the techniques employed, noting they were reminiscent of previous attacks attributed to North Korea.
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