Ripple’s chief legal officer has clarified that a California district judge has dismissed all allegations that Ripple violated federal securities laws. He stressed that District Judge Analisa Torres’ ruling regarding the non-security status of XRP “stands undisturbed.” New York’s ‘Ruling That XRP Is Not a Security Stands Undisturbed’ Following the ruling by the U.S. District […]
Bitcoin News
Cardano Price Drops As Hoskinson Clarifies Relationship To Elon Musk
In a recent episode of the Thinking Crypto podcast, Charles Hoskinson, founder of Cardano, addressed the swirling rumors about a potential partnership with tech mogul Elon Musk. During the podcast, hosted by Tony Edwards, Hoskinson discussed various outreach efforts made to Musk’s companies, including offers of free work to combat bot issues on the platform formerly known as Twitter, now X.
Hoskinson Denies Rumors Of A Partnership With Musk
Hoskinson detailed several attempts by his team to connect with Musk’s companies, particularly X (formerly Twitter), where they proposed solutions to combat prevalent issues like fake accounts and bots. “We’ve reached out numerous times to try to engage with various people at X, even offering to do free work with verified tweets or other things just because it’s so bad right now with bots and these other things, and it’s just always silent,” Hoskinson lamented.
Despite these efforts, he confirmed that Musk has never discussed Cardano or any potential collaboration personally. “I even know Kimbal Musk and I’ve talked to him on several occasions […] never once has [Elon] mentioned Cardano or me or anything,” he added.
The founder’s comments served to quash rumors that had suggested potential uses of Cardano’s technologies, like the Midnight sidechain, in Musk’s high-profile companies such as SpaceX or Tesla. The speculative excitement around such a high-caliber partnership had been a point of discussion among investors and enthusiasts, given Musk’s known interest in cryptocurrency and his impactful endorsements of Dogecoin.
Despite sharing mutual friends and professional connections such as podcaster Lex Friedman, Hoskinson expressed confusion and a bit of melancholy over the lack of engagement from Musk. “We share mutual friendships so I don’t know why we haven’t been able to square that circle […] maybe he’s got some people in his social circle that don’t like me and so he’s got some intel that I’m a bad person to work with or maybe it’s just he wants to do his own thing,” Hoskinson speculated.
Addressing Musk’s enigmatic persona and unpredictable business moves, Hoskinson noted, “He’s a magical guy. So it’s really like a sphinx hard to understand his motivations and understand why he does what he does. Why does he have this bizarre fetish for Dogecoin? Is it that he owns 20% of the supply…don’t know with a guy like that that’s the magic of Elon Musk.”
Cardano Bears Remain In Control
The ADA price saw a decrease of 2.2% over the last 24 hours, a dip that coincides with a broader downtrend in the altcoin market. Trading volume for ADA decreased also significantly, falling 22% to 7 million over the same period.
The ADA price has consistently traded below the 20-day Exponential Moving Average (EMA), which has acted as a key resistance level since mid-March. While there was a brief period where ADA surpassed this threshold, it eventually faced strong resistance at the 200-day EMA and was unable to sustain its upward momentum.
As such, the 20-day EMA, currently at .445, is a critical near-term resistance level. Surpassing this barrier could signal a potential shift in market sentiment, paving the way for a rally towards the 200-day EMA at .494. A decisive break above this longer-term EMA could firmly establish a bullish trend for ADA.
Patrick Hansen Clarifies EU Regulation Misinformation: No Ban on Self-Hosted Wallets
Erroneous early reporting and discussions on X about the European Union’s approach to cryptocurrency anonymity have been clarified by industry expert Patrick Hansen, stating that the EU’s Anti Money Laundering Regulation (AMLR) targets broader anti-money laundering (AML) and counter-terrorism financing (CFT) efforts across various sectors, including crypto, without singling out cryptocurrencies for special regulation. Contrary […]
Bitcoin News
Jerome Powell Clarifies: US Far From Introducing a Central Bank Digital Currency
Federal Reserve Chair Jerome Powell stated before the Senate Committee on Banking, Housing, and Urban Affairs that the United States is far from adopting or even recommending the introduction of a central bank digital currency (CBDC), emphasizing a significant distance from such a possibility. He assured that any potential CBDC would not be designed for […]
Bitcoin News
Floki Responds to Hong Kong SFC’s Warning, Asserts Compliance and Clarifies Staking Program
Floki has formally responded to the Hong Kong SFC’s recent warning, reiterating their commitment to compliance across jurisdictions and explaining the rationale behind their staking program’s high returns.
Cryptocurrency Project Floki Counters Hong Kong SFC’s Warning
In a detailed blog post dated Jan. 29, Floki, the team behind the dog-themed memecoin, addressed the recent warning from the Hong Kong Securities and Futures Commission (SFC) regarding its staking programs. The SFC had earlier labeled Floki and Tokenfi Staking Programs as “suspicious investment products,” cautioning users against their high promised returns.
We just published a response to the Hong Kong SFC’s notice about the Floki and TokenFi staking programs.
Our response highlights our thoughts about their notice, why $FLOKI and $TOKEN can sustainably have an impressively high APY, and our plans going forward!… pic.twitter.com/YfpnnDMhfq
— FLOKI (@RealFlokiInu) January 29, 2024
Floki’s response was a blend of regret and clarification, emphasizing their commitment to legal compliance across jurisdictions. The team outlined the steps taken to align with regulatory expectations, particularly in Hong Kong. These measures included warning notices on their websites, barring Hong Kong users from the staking program. The team also noted that they had already halted their offline marketing campaign in the region planned for mid-December 2023.
The SFC’s main concern revolved around the annual percentage yield (APY) of the staking programs, which ranged from 30% to over 100%. Floki’s response pointed to the uniqueness of their staking program, where rewards are given in TOKEN, the utility token of their sister project Tokenfi. They attributed the high APY to their decision to eschew traditional fundraising methods, opting instead to allocate a significant portion of Tokenfi’s token supply directly to stakers.
Floki further explained that the volatility of rewards, denominated in TOKEN, is subject to market dynamics. The team also explained that the decentralized nature of their staking programs ensured operational continuity and user control regardless of the team’s presence.
On the regulatory front, Floki reiterated its respect for regulatory bodies, saying, “We have huge respect for any and all regulators and will continue to engage with them to address any regulatory concerns they may have.” The team, however, expressed disagreement if the sole basis for the SFC’s warning was the high APY, influenced by market forces.
If, as it appears, a decision to single out the staking programs was made solely because of the high APY of our staking programs stated in social media posts and as moved by market forces, as explained above, then we will have to respectfully disagree.
Do you think Floki’s response sufficiently addressed SFC’s concerns? Share your thoughts and opinions about this subject in the comments section below.
Grayscale Clarifies Investor Tax Implications of a Cash-Created Spot Bitcoin ETF
Grayscale, one of the biggest cryptocurrency asset management firms, has addressed the issue of taxation regarding the adoption of a cash creation model in an upcoming spot bitcoin exchange-traded fund (ETF). The firm clarified that “no spot Bitcoin ETF that qualifies as a grantor trust would be at a disadvantage in relation to any other spot Bitcoin ETF” regarding cash redemptions.
Grayscale Clarifies Cash-Created Spot Bitcoin ETF Tax Controversies
Grayscale, one of the world’s largest cryptocurrency asset management firms, clarified the potential tax implications of applying a cash redemption model for an upcoming spot bitcoin ETF product.
In a recent article, the firm explained how the cash redemption process would work in a spot bitcoin ETF, with only qualified investors operating to create shares in the primary market, having no relation with the secondary market where retail investors would acquire already existent ETF shares. Grayscale explained that the tax rules applying to spot bitcoin ETFs — most of which are classified as grantor trusts — are different from the ones concerning mutual funds.
As a consequence, Grayscale stated:
No spot bitcoin ETF that qualifies as a grantor trust would be at a disadvantage in relation to any other spot bitcoin ETF with respect to cash redemptions due to the carrying value of the assets in the ETF.
Grayscale’s asseverations come to correct earlier statements made in an article published by Bloomberg Intelligence, where it was reported that using cash for the creation and redemption of shares could complicate the conversion of GBTC into a spot bitcoin ETF “because it holds many bitcoin at a low-cost basis that will incur capital gains if sold under a cash-only model, as would be necessary in the event of outflows.”
After having scored a victory in D.C. courts that ordered the U.S. Securities and Exchange Commission (SEC) to revisit its spot bitcoin ETF conversion proposal, Grayscale has met with the SEC various times, which advocates for using the cash creation model instead of the in-kind model preferred by several spot bitcoin ETF issuers.
What do you think about Grayscale’s bitcoin ETF tax clarification? Tell us in the comments section below.
Shiba Inu Team Member Clarifies SHIB Burn As Shibarium Grows
A prominent Shiba Inu team member has come forward to shed light on the proper processes involved in burning the SHIB token.
Shiba Inu Burn Process Demystified
In a brief X (formerly Twitter) post on Thursday, Lucie, a popular Shiba Inu marketer provided a detailed guideline on how SHIB users and investors should burn their SHIB tokens.
Lucie stated that before sending the SHIB token into a dead wallet, users should bridge the SHIB token back to the Ethereum network first.
“To ensure the proper process, if you are a part of the Shibarium project and wish to burn Shib, please make sure to bridge your Shib back to the Ethereum network and then send it to the dead wallet,” Lucie stated.
She stressed the importance of this initial step, stating that bridging the SHIB token first on Ethereum before burning it on Shibarium, allows the original SHIB to be locked in the bridge contract while a minted version of the SHIB token is sent to Shibarium to be burnt.
“When you initially bridge your SHIB to Shibarium, the original Shib tokens are locked in the bridge contract, while a version of the token is minted on Shibarium. This means that when you decide to burn your Shib on Shibarium, you are actually burning the minted version, while the original tokens remain locked in the bridge contract,” Lucie explained.
Presently, Shib burn rates have been increasing as the Shibarium layer 2 network keeps growing. According to Shibburn, Shib burn rates are up 193.46% in the last 24 hours and continue to rise. There have also been approximately 56,436,887 SHIB tokens burned at the time of writing.
Shibarium Surges 493% In Transactions
Shibarium, an Ethereum Layer 2 blockchain network for Shiba Inu, has recently experienced a staggering increase in transactions.
The Shibarium network recorded a 493% upsurge in transactions sometime on October 26. A prominent SHIB X account, Kuro SHIBArmy JPN also shared a chart of Shibarium’s daily transactions hitting a 62,560 mark on Thursday.
“Shibarium Daily transactions are on the rise! This is just the beginning,” Kuro SHIBArmy JPN stated.
Presently, the total number of transactions on the Shibarium network is approximately 3,665,371 and the active wallet addresses on the layer 2 network are over 1,2656,600. The daily transactions on Shibarium have also hit approximately 13,550.
The Shib community members are currently celebrating the recent milestones achieved by Shibarium which emphasize the strength of the growing network and its widespread adoption.
European Regulator Clarifies MiCA Timeline — Warns No Such Thing as Safe Crypto Asset
The European Securities and Markets Authority (ESMA) is preparing to implement the Markets in Crypto-Assets Regulation (MiCA). The regulator has issued several crypto warnings that investors and users of crypto services providers should be aware of, particularly before MiCA is fully implemented. The regulator cautioned: “Even with the implementation of MiCA, retail investors must be aware that there will be no such thing as a ‘safe’ crypto-asset.”
ESMA Issues Crypto Warnings as It Prepares to Implement MiCA
The European Securities and Markets Authority (ESMA) published a statement on Tuesday clarifying the timeline for the implementation of the Markets in Crypto-Assets Regulation (MiCA). ESMA also highlighted several risks associated with crypto assets, noting that MiCA won’t be fully implemented until December 2024.
“The entry into force of MiCA is a fundamental development for the establishment of a single rulebook for the regulation and supervision of crypto-asset issuance, trading, and service provision,” ESMA explained. “Such activities are not currently regulated by existing common European Union (EU) financial services legislation.”
However, ESMA has reminded crypto holders and customers of crypto service providers that “MiCA does not address all of the various risks associated with these products,” emphasizing:
Many crypto-assets are by nature highly speculative. Moreover, crypto-assets are prone to novel operational or security risks … Even with the implementation of MiCA, retail investors must be aware that there will be no such thing as a ‘safe’ crypto-asset.
“Full MiCA rights and protections will not apply in the implementation phase of MiCA,” ESMA clarified. “MiCA rules on the provision of crypto-asset services will not enter into application until December 2024.”
ESMA also urged market participants to “make adequate preparations” to ensure a timely and orderly transition toward MiCA. “These preparations should also involve early dialogue between entities currently providing crypto-asset services in the EU and the relevant competent authorities of the jurisdictions in which they operate to inform them of their transition plans,” the regulator added.
Moreover, ESMA cautioned: “Even after MiCA becomes applicable to crypto-asset service providers, member states have the option of granting entities already providing crypto-asset services in their jurisdictions up to an additional 18-month ‘transitional period’ during which they may continue to operate without a MiCA license.” ESMA detailed:
This means that holders of crypto-assets and clients of crypto-asset service providers may not benefit from full rights and protections afforded to them under MiCA until as late as 1 July 2026.
What do you think about ESMA’s crypto warnings and its preparation to implement MiCA? Let us know in the comments section below.
SEC Isn’t Appealing Whether XRP Is a Security, Lawyer Clarifies
The U.S. Securities and Exchange Commission (SEC) is not appealing District Judge Analisa Torres’ ruling that XRP is not a security, a lawyer has explained. The securities regulator is appealing “programmatic and individual sales issues,” he clarified, adding that “If the SEC wins the appeal on sales, then Ripple couldn’t use exchanges to facilitate sales.”
SEC Not Disputing Whether XRP Is a Security
The U.S. Securities and Exchange Commission (SEC) has informed District Judge Analisa Torres that it intends to appeal her ruling in the Ripple case. However, the securities regulator is not appealing the non-security status of XRP, Jeremy Hogan, partner at law firm Hogan & Hogan, explained on Twitter Wednesday.
“The SEC continues making questionable decisions, requesting an interlocutory appeal,” Hogan tweeted, emphasizing:
Note that it is NOT appealing whether XRP itself is a security — just its losses on the programmatic and individual sales issues.
In another tweet, he clarified that challenging programmatic sales and challenging the non-security status of XRP are “two separate issues.”
While reiterating Judge Torres’ ruling that “XRP is not a security,” Hogan explained: “If the SEC wins the appeal on sales, then Ripple couldn’t use exchanges to facilitate sales.” The lawyer added that the big question is whether crypto exchanges would keep XRP listed. “I think yes, as long as they can verify the sales are not being made by Ripple,” he stated.
Following Judge Torres’ ruling on the Ripple case last month, SEC Chairman Gary Gensler said the securities regulator is “disappointed” with what the judge said about retail investors. Nonetheless, he affirmed that the SEC will continue its enforcement actions against cryptocurrency companies that fail to comply with regulations. The SEC chief believes that crypto is “a highly speculative asset class” and a field that is “rife with fraud.”
In a filing for its lawsuit against Terraform Labs and Do Kwon, the SEC claimed that some decisions in the Ripple court ruling on XRP were “wrongly decided.” Moreover, District Judge Jed S. Rakoff disagreed with the approach taken by Judge Torres in the SEC v. Ripple case concerning XRP.
What do you think about the SEC planning to appeal the ruling in the Ripple case over XRP? Let us know in the comments section below.
Ukraine to Adopt Europe’s Crypto Rules, Clarifies Taxation
Officials have revealed that Ukraine intends to implement the crypto market rules approved by the European Parliament. While the government is already moving in that direction, the tax service has issued a clarification regarding the taxation of income resulting from cryptocurrency transactions.
Ukraine Set to Incorporate EU Crypto Regulations Into National Law
A regional leader in crypto adoption, Ukraine now plans to follow in the footsteps of the global leader in crypto regulation, the European Union. Statements in Kyiv have indicated that Ukrainian authorities are going to incorporate the new EU norms into their country’s legal framework.
On Thursday, European lawmakers gave their final approval to the Markets in Crypto Assets (MiCA) package. It is the world’s first comprehensive attempt to regulate the crypto space. It introduces licensing for crypto service providers and mechanisms for investor protection.
“This is a truly historic event, I am sure Ukraine will be one of the first countries to implement this regulation into national legislation,” commented Yuriy Boyko, member of the National Securities and Stock Market Commission of Ukraine (NSSMC).
Boyko also said that draft provisions to achieve that are almost ready and officials will soon start talks with the main stakeholders. “The NSSMC, together with its partners, is actively working on the launch of the virtual assets market in Ukraine, and the MiCA regulation was taken as the basis,” he emphasized.
“Together with our colleagues from the NSSMC, we are already working on the implementation of some of the MiCA provisions so that crypto assets are legal in Ukraine as well,” confirmed Yaroslav Zheleznyak, member of Ukraine’s parliament, who took to Telegram to express his excitement about the regulatory development.
Lawmakers in Ukraine, a candidate for EU membership, first adopted a draft law “On Virtual Assets” in September 2021, but the bill was returned by President Volodymyr Zelenskyy, revised in accordance with his recommendations and passed again in February 2022, before he signed it into law. It should enter into force after deputies in the Verkhovna Rada approve relevant amendments to the Tax Code.
While the nation’s crypto tax rules are yet to be introduced, the Lviv Office of the State Tax Service of Ukraine has taken the matter in its own hands and clarified the taxation of crypto-related income for private individuals. “Income received by an individual from the sale of cryptocurrencies is included in the total annual taxable income,” the regional tax administration explained in a notice published this month.
Do you expect other non-EU countries in the region to introduce the MiCA rules in their jurisdictions? Tell us in the comments section below.