Nigerian authorities are reportedly planning to prohibit financial institutions from facilitating peer-to-peer cryptocurrency transactions. According to a report, Nigeria’s Office of the National Security Adviser has classified cryptocurrency trading as a national security concern. Three fintech startups, known for enabling such transactions, have been directed to block and report peer-to-peer cryptocurrency transactions to law enforcement […]
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Swiss National Bank Chief Raises Concerns About Adding Bitcoin to Currency Reserves
The chairman of the Swiss National Bank has expressed reservations about incorporating bitcoin into the central bank’s currency reserves. He stated that no decision has been made yet to invest in bitcoin, underscoring the necessity for currency reserves to be liquid, sustainable, and easily tradable, given their use in international payments. Swiss National Bank on […]
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Bitcoiners Seek Constitutional Reform to Allow Swiss National Bank to Purchase Bitcoin
Yves Bennaïm, founder and chair of 2B4CH, a Swiss pro-Bitcoin think tank, is launching a popular initiative to amend the country’s constitution to allow its central bank to purchase and hold bitcoin. The initiative is also supported by Bitcoin Suisse President Luzius Meisser, who believes the bank should add bitcoin to its reserves. A Reform […]
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Mauritania Central Bank Partners With Giesecke+Devrient to Develop a National CBDC
The Central Bank of Mauritania (CBM) has partnered with Giesecke+Devrient (G+D) to develop and launch a digital version of the national currency. The Germany-based security technology firm is expected to assist the CBM in outlining the prerequisites for a national Central Bank Digital Currency (CBDC). Outlining Prerequisites for a Central Bank Digital Currency The Central […]
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Nigerian Instagram Celebrity Could Face Jail Time for ‘Spraying’ National Currency
Nigerian Instagram celebrity, Pascal Okechukwu, has pleaded not guilty to three counts of abusing naira banknotes. The charges against Okechukwu relate to three incidents in which he allegedly tampered with or “sprayed” NGN500 banknotes. Another Nigerian celebrity, Oluwadarasimi Omoseyin, received a six-month prison sentence for the same offence. Nigerian Authorities Clamp Down on Naira ‘Spraying’ […]
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US Treasury Cites Rising Cryptocurrency Misuse in 2024 National Risk Assessments
In its 2024 National Risk Assessments, the U.S. Department of the Treasury has unveiled the concerning trend of criminals increasingly turning to cryptocurrencies to finance illegal activities. US Treasury Reports Identify Crypto’s Role in Illicit Finance The U.S. Department of the Treasury announced in a press release that it has issued its 2024 National Risk […]
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DOJ Charges Belarusian National With Money Laundering Conspiracy and Operating Unlicensed Crypto Exchange
The United States Department of Justice (DOJ) has charged the Belarus national Aliaksandr Klimenka with money laundering conspiracy and the operation of an unlicensed money services business. Most of these criminal activities were perpetrated via BTC-e’s servers in the U.S. which were “leased to and maintained by Klimenka and Soft-FX.” According to the DOJ, Klimenka faces a maximum jail sentence of 25 years.
Anonymized Trade of Bitcoin
On Feb. 1, the DOJ announced that it had brought charges against Belarus national Aliaksandr Klimenka. The charges include money laundering conspiracy and the operation of an unlicensed money services business. Klimenka’s unlicensed crypto platform, BTC-e, allegedly facilitated a highly anonymized trade of bitcoin, according to an indictment unsealed on Jan. 30.
The DOJ further alleges that BTC-e helped facilitate transactions for criminals and received criminal proceeds. These illicit activities included computer intrusions, hacking incidents, ransomware scams, and identity theft schemes.
Most of these criminal activities were perpetrated via BTC-e’s servers in the U.S., which were “leased to and maintained by Klimenka and Soft-FX.” In the indictment, the DOJ contends that BTC-e had neither the required money services business registration nor an anti-money laundering program.
“Despite doing substantial business in the United States, BTC-e allegedly was not registered as a money services business with the U.S. Department of Treasury, had no anti-money laundering process, no system for appropriate ‘know your customer’ or ‘KYC’ verification, and no anti-money laundering program as required by federal law,” the DOJ said in a statement.
According to an indictment, Aliaksandr Klimenka, a Belarusian national, was arrested in Latvia on Dec. 21, 2023. Subsequently, he was extradited to the United States and made his initial court appearance on Jan. 31. As per the indictment, Klimenka faces a maximum jail sentence of 25 years if convicted.
What are your thoughts on this story? Let us know what you think in the comments section below.
Affected by the National Stock Market Downturn, Chinese Investors Have Flocked to Gold
Chinese investors have been buying gold as an investment, motivated by the poor performance of traditional stock and property options. According to World Gold Council (WGC) reports, China had the largest demand for gold for jewelry and investment purposes in 2023. This, and the demand from central banks has maintained gold prices over ,000.
Chinese Investors Flock to Gold
Chinese investors are returning to gold amid one of the worst national stock market routs in the last five years. The nation registered the largest demand for gold for investment and jewelry in 2023, according to the World Gold Council (WGC), helping prices maintain over ,000 per ounce.
Demand for gold in China for investment purposes rose by over 25%, reaching 280 tonnes last year. In the same way, China required 630 tonnes of gold for jewelry in 2023, 10% more than in 2022.
Experts asserted that, while understated, China’s market behavior was relevant for gold last year. Louise Street, senior markets analyst at WGC, commented:
China was key to a lot of what was happening last year. When you look at the consumer sector, China is not the price-setting factor but it is providing a floor.
While global official gold demand subsided last year compared to the numbers posted in 2022, when incorporating over-the-counter (OTC) and stock flows, it registered all-time high numbers, with customers requiring almost 4,900 tonnes of the precious metal. And in China’s case, this demand shows no sign of diminishing anytime soon, according to Adrian Ash, Bullionvault’s research director.
However, this demand has not been only limited to gold. Reports have also found that Chinese investors have been investing in cryptocurrencies, even though crypto trading has been banned in China since 2021. To sidestep these restrictions, they have been using Hong Kong and their ,000 foreign currency quota, given that crypto trading is still perfectly legal in the city.
As a consequence, Hong Kong officials are strengthening the regulation of OTC markets “to mitigate the potential risks of virtual assets while providing transparency for the users,” Under Secretary for Financial Services and the Treasury Joseph Chan Ho-lim declared.
What do you think about China and its demand for gold? Tell us in the comments section below.
Indian National Pleads Guilty in Case Involving ‘Largest Single Cryptocurrency and Cash Seizure in DEA History’
An Indian national has pleaded guilty in a case involving “the largest single cryptocurrency and cash seizure” in the U.S. Drug Enforcement Administration (DEA) history. The defendant “is designated as a Consolidated Priority Target, which makes him one of the most significant drug trafficking threats in the world,” the U.S. Department of Justice (DOJ) described.
This Case Involves Largest Single Cryptocurrency and Cash Seizure in DEA History, Says DOJ
The U.S. Department of Justice (DOJ) announced Friday that a 40-year-old Indian national, Banmeet Singh, has pleaded guilty to “running a dark web narcotics conspiracy.” Specifically, he pleaded guilty to conspiracy to possess with the intent to distribute controlled substances and conspiracy to commit money laundering. The announcement details:
According to the DEA, this case involves the largest single cryptocurrency and cash seizure in DEA history; the defendant has forfeited cryptocurrency accounts that ultimately became worth 0 million.
According to court documents, Singh created vendor marketing sites on dark web marketplaces to sell controlled substances. Customers paid with cryptocurrency, and Singh personally shipped or arranged the shipment of controlled substances from Europe to the United States through U.S. mail or other shipping services.
The DOJ explained that from at least mid-2012 through July 2017, Singh controlled at least eight distribution cells in various U.S. states. “Individuals in those distribution cells received drug shipments from overseas and then re-packaged and re-shipped the drugs to locations in all 50 states, Canada, England, Ireland, Jamaica, Scotland and the U.S. Virgin Islands,” the Justice Department noted.
Singh was arrested in London in April 2019 and the government secured his extradition to the U.S. last year. DEA Special Agent in Charge Orville O. Greene commented:
Banmeet Singh is designated as a Consolidated Priority Target, which makes him one of the most significant drug trafficking threats in the world.
What do you think about this case? Let us know in the comments section below.
Chinese Investors Are Turning to Crypto Amidst a National Stock Market Slump
Chinese investors are increasingly putting part of their portfolios in cryptocurrency due to the state of the national stock market. According to reports, investors are using exchanges like Binance or Okx, or Hong Kong local exchanges, to purchase crypto using payment methods like Alipay and Wechat, even when cryptocurrency is banned in the Chinese mainland.
Chinese Investors Seeking Earnings in Crypto
Cryptocurrency is making a comeback in China, as Chinese investors have turned to these looking for profitability as the national stock market is facing a slump. According to Reuters, even though purchasing and trading cryptocurrency has been banned since 2021, Chinese investors have found a way to allocate significant fractions of their portfolios to crypto.
These investors can use exchanges like Binance and Okx trading groups and traditional payment methods like Alipay and Wechat to purchase stablecoins from local dealers, entering the cryptocurrency investment arena. Also, over-the-counter exchanges exist, facilitating access to crypto.
A senior executive of a Hong Kong-based exchange confirmed these movements, stating that the current slump “has made investment on the mainland risky, uncertain and disappointing, so people are looking to allocate assets offshore.”
“Almost everyday, we see mainland investors coming into this market,” he remarked.
Not only individuals are trying to find opportunities in the cryptocurrency market. Institutions that have been hurt by the performance of the traditional investment markets are also seeking a way of changing their narrative.
The same senior executive stated:
If you are a Chinese brokerage, facing a sluggish stock market, weak demand for IPOs, and shrinkage in other businesses, you need a growth story to tell your shareholders and the board.
Chainalysis, a blockchain intelligence company, has confirmed that Chinese crypto numbers have bounced, reaching 13th place in global peer-to-peer markets in 2023, rising from 144th in 2022. Transactions amounted to .4 billion between July 2022 and June 2023, more than what was traded in Hong Kong in the same period.
What do you think about the rebirth of cryptocurrency as an investment tool for Chinese investors? Tell us in the comments section below.