Over the past seven days, data reveals that the German government has transferred 3,820 BTC to cryptocurrency exchanges, with around 2,165.49 BTC moved in the last eight hours. German Government’s Bitcoin Transfers Cause Stir A week ago, Bitcoin.com News reported that the German government’s wallet, containing bitcoins seized from a piracy website, held 47,179 BTC […]
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US, UK, Germany Among Countries With Largest Government Crypto Holdings, Arkham’s Data Shows
The United States, United Kingdom, and Germany rank among the top countries holding cryptocurrencies at the government level, according to data from Arkham Intelligence. The crypto analytic firm’s onchain analysis shows that the U.S. government holds 212,847 bitcoins while El Salvador has been purchasing one bitcoin daily as announced by its president. Top Government Holders […]
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Binance Withdraws Its Crypto License Application in Germany
The world’s largest exchange for digital assets, Binance, has withdrawn its application for a German crypto custody license. The trading platform made it clear it’s not giving up on plans to eventually obtain authorization from the Federal Republic but wants its submission to better reflect the changing market and regulatory conditions.
Crypto Exchange Binance to Reconsider Attempt at Getting German Regulatory Approval
Binance, the leading cryptocurrency exchange by daily trading volume, has pulled out its application for a crypto license in Germany, Reuters reported, noting that the exchange is obviously rethinking its expansion plans in the current difficult regulatory environment.
The move comes after about a month ago the German financial news magazine Finance Forward revealed, citing sources, that Germany’s Federal Financial Supervisory Authority (Bafin) had informed Binance it would not be licensed as a crypto custodian in the country.
“Binance confirms it has proactively withdrawn its Bafin application. The situation, both in the global market and regulation, has changed significantly,” a spokesperson for the crypto giant explained on Wednesday. However, the company representative also said:
Binance still intends to apply for appropriate licensing in Germany, but it is essential that our submission accurately reflects these changes.
In the past months, has been under increased pressure from regulators around the world. In the U.S., the exchange was sued by both the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) for alleged violations of securities and derivatives laws.
In Europe, the major crypto exchange is facing challenges in several other jurisdictions. Authorities in Belgium ordered the exchange to cease all crypto services while French prosecutors launched an investigation based on money laundering allegations.
Besides the Bafin application withdrawal, first reported by Coindesk, Binance exited the Dutch market in June after failing to register as a crypto service provider, applied for deregistration in Cyprus, canceled its U.K. authorization, and also withdrew its license application in Austria.
Do you think Binance will resubmit its application for a German crypto license in the near future? Tell us in the comments section below.
Binance Reportedly Denied Crypto License in Germany
Germany’s financial regulator has refused to grant Binance a crypto custody license, according to a media report. A rejection would prevent the exchange from advertising and growing in the major European market and deal another blow to its efforts to do regulated business on the Old Continent.
Germany Rejects Binance Bid to Obtain Bafin License, Sources Claim
The Federal Financial Supervisory Authority of Germany (Bafin) has informed Binance it will not be licensed as a crypto custodian, the German financial news magazine Finance Forward revealed in a report quoting sources familiar with the matter.
The digital asset exchange, the world’s largest by trading volume, can only expand its business in Germany if it receives the regulatory approval, the publication noted. Without it, it’s not allowed to advertise, for example, and German regulators have already targeted other crypto companies for that, including trading platforms like Crypto.com and Uniswap.
Bafin declined to clarify the situation with a spokesperson saying the authority does not comment on individual companies. “While we cannot share details of our discussions with regulators, we are continuing to work to meet Bafin requirements,” a representative of Binance was quoted as stating. The spokesperson emphasized this is an ongoing process and also said:
We are confident that we have the right team and the appropriate measures in place to continue our discussions with the regulators in Germany.
has been under increased pressure from regulatory bodies in Europe and elsewhere. Authorities in Belgium ordered the exchange to cease all crypto services while prosecutors in France launched an investigation based on money laundering allegations.
Earlier in June, Binance exited the Dutch market, after failing to register as a crypto service provider, applied for deregistration in Cyprus, and cancelled its U.K. authorization. The company also withdrew its application for license in Austria, Finance Forward noted.
This week, news came out that the exchange is looking for a new banking partner for euro deposits and withdrawals after payment processor Paysafe announced its decision to discontinue support for SEPA transfers to and from the cryptocurrency exchange.
Do you think Binance will eventually acquire a crypto license from Bafin? Share your thoughts on the subject in the comments section below.
Brse Stuttgart Digital Exchange Opens to All Users Based in Germany
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Germany New Proposed Law Would Legalize Banks Holding Bitcoin
n By 2020, German banks will be able to custody Bitcoin, if new proposed changes to the law are approvedn
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BitMEX Chaos, Cold Wallet Calamity, Germany Hates Crypto Hodlers Digest, Oct. 28Nov. 3
n In this weeks Hodlers Digest, BitMEX has a week to forget after two blunders, an exchange has lost the password to a cold wallet, and Germany really doesnt like crypton
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Germany Fingers Anonymous Cryptos as Bigger Threat than Bitcoin
The German finance ministry has stated that criminal use of Monero (XMR) and Zcash (ZEC) is rising. In a recent report, it argued that use of anonymous crypto assets might one day replace that of Bitcoin on the dark web.
The report is careful to highlight differences between different crypto assets. Whereas blockchain forensics firms can often link an individual to a Bitcoin wallet, anonymity-preserving protocols limit their efficacy.
Criminals Still Prefer Cash to Pseudonymous Crypto!
The money laundering and terrorist financing-focused report is titled the First National Risk Analysus. Germany’s Federal Ministry of Finance published it on October 11.
The ministry started to assess the existing and future risks that could contribute to the proliferation of such financial crimes in December 2017. Joining the ministry in its research are 35 other federal and state authorities.
The analysis identifies the use of crypto assets as a potential risk factor for the future. However, it makes a clear distinction between pseudo-anonymous cryptos, such as Bitcoin, and privacy-focused currencies, such as Monero and Zcash.
The German Ministry of Finance claims that the risk posed by anonymous cryptocurrencies is greater than that of the likes of Bitcoin. Their anonymous nature makes policing criminal acts associated with their use much tougher and, therefore, criminals may start to use them more frequently.
The ministry observed that although use on the dark web or as a method of financing terrorism remains low, popularity for the anonymous cryptos is growing.
The report also states that there is not much evidence of any cryptocurrency being used in connection with terrorist financing in Germany. However, the ministry claims to have identified its use in relation to occasional groups of religious extremists and the far-right.
It says that current cryptocurrency volatility limits its use as a means of payment. However, those behind the report identify stablecoins as being a potential option for fast international payments beteween criminal networks.
Interestingly, it also states that the ultimately traceable nature of most crypto assets that have not had anonymity features built in makes them a poor choice when compared to a much more established and familiar means of payment – cash:
“The use of cash, in contrast to the use of pseudonymous crypto assets, leaves no traceable footprint and is easy to handle, so it can be assumed that, for example, the transfer of funds in the field of terrorism financing alongside hawala and money transfer service providers currently continues mainly via cash couriers.”
Related Reading: Bitcoin Price Volatility Approaches as Bulls Try to Outclass Bears
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This Germany State Made Passive Income via Bitcoin
A Germany state decided to hold rather than auction a stockpile of confiscated bitcoin, only to realize that their seized assets grew in value.
Heise Online reported on Wednesday that the State of Lower Saxony is currently holding about €650,000 in bitcoin. At the time of their seizure, the value of the cryptocurrency stockpile was €410,000, according to the Ministry of Justice in Hannover. That upped Lower Saxony’s bitcoin value by almost 58 percent.
Authorities said all of their bitcoin were taken from online criminals accused of cyber blackmailing and ransomware attacks.
No Holders
Meanwhile, Attorney Frank Lange from the public prosecutor’s office clarified that they did not intend to hold bitcoin. The information and communication technology head added that they are now planning to use the cryptocurrency for public welfare purposes, which may start by holding periodic auctions. The federal prosecutor office, in a separate statement, briefed that they would put four bitcoin for sale in the first phase. At the current rate, they are equivalent to €30,000.
On the other hand, Justice Minister Barbara Havliza has another idea. She said that their office wants to put those seized bitcoin to use – by using them as baits to catch other cryptocurrency-loving cybercriminals.
“Cyber attacks on hospitals or administrations are a real threat to all of us,” Havliza added. “They paralyze institutions via digital means and extort millions of euros woth of bitcoin from them. Therefore, the use of confiscated virtual currency is important. We kick cybercriminals there where it hurts the most: the money.”
Earlier in 2017, authorities in Berlin had appropriated about 64 bitcoin from a criminal group. The value of those assets was €76,000 at the time of seizure. But, during the December 2017 boom, their rate surged tenfold to more than €700,000. It is not clear whether or not the Berlin police auctioned that bitcoin.
The post This Germany State Made Passive Income via Bitcoin appeared first on NewsBTC.
Former Crypto Exec Arrested in Germany, Could Serve Up to 50 Years
One of the founders of the crypto asset mining marketplace NiceHash has been arrested in Germany. Along with three other individuals, Matjaž “Iserdo” Škorjanc faces charges relating to various frauds and his involvement in the dark web crime forum Darkode.
He was arrested at the request of US authorities last week. If found guilty, Škorjanc could face up to 50 years in prison.
Crypto Exec Wanted in the US Since 2011
According to Slovenian news publication 24UR, German authorities have arrested a Slovenian individual for his involvement in numerous computer frauds, along with helping to operate a dark web forum for criminals to organise and share methods. Matjaž Škorjanc was detained last week following a US arrest warrant demanding his extradition. He was reportedly apprehended by police at a road block.
Škorjanc founded and served as the CTO for the crypto asset mining company NiceHash. Despite being mysteriously hacked for million in late 2017, the company still exists today. Following the hack, the crypto mining service pledged to pay all affected customers’ coins back. NiceHash appears to be making good on its promise although it is taking a long time. The company announced in late September its 21st instalment of its reimbursement programme. With it, NiceHash will have now paid back 80 percent of the crypto assets lost. According to the local news report, Slovenian authorities are still investigating the hack and the culprit has not been found.
Convicted Mariposa botnet author and alleged Darkode cybercrime forum founder Matjaž “Iserdo” Škorjanc arrested in Germany on US extradition warrant. USG wants to try him for a crime he was convicted of in Slovenia, plus Darkode-related charges https://t.co/JgSUCHUGA8 pic.twitter.com/YoDSvDxunQ
— briankrebs (@briankrebs) October 1, 2019
However, the charges against Škorjanc for which he was arrested last week are nothing to do with his involvement in the crypto company. The US wants the Slovene, along with a group of others, for criminal association and fraud orchestrated via the Darkode forum, which closed in 2015. The individuals named as being wanted by the US are a second Slovene, Mentor Leniqi; Spanish national, Florence Carr Ruiz; and US citizen, Thomas McCormick.
The report in Slovenian news estimates that the crypto executive, along with the three others wanted on similar charges, were responsible for .5 million worth of damages between 2008 and 2013. If found guilty, they will reportedly face up to 50 years in prison each.
The recent arrest warrant is not the first time Škorjanc has been wanted in the US. In 2011, US authorities requested his extradition for his involvement in the Mariposa botnet that infected millions of computers globally. However, he was tried in his native Slovenia and was sentenced to almost five years in prison. He has, however, already served this sentence.
Related Reading: A Royal Bitcoin Request? Scammers Pray on Britain’s Brexit Fears
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