According to a local report, the Japan-based crypto exchange Bitflyer has acquired the failed Japanese unit of FTX. The report indicates that arrangements are currently underway to take over the business. Bitflyer Acquires Bankrupt FTX Japan, Local Report Claims On June 20, 2024, NHK reported that Japan’s Bitflyer acquired the now-defunct Japanese unit of FTX. […]
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Deribit’s Dubai Unit Receives ‘Conditional’ Virtual Asset Service Provider License
Deribit FZE, an entity owned by crypto derivatives platform Deribit, has secured a conditional virtual asset service provider from the Dubai virtual assets regulator. The license, which covers spot and derivative trading, will remain non-operational until Deribit meets the regulator’s localization requirements. Meeting Dubai’s Localization Requirements Deribit FZE, a wholly owned entity of the crypto […]
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Economic Intelligence Unit: Nigerian Central Bank Lacks Capacity to Defend Local Currency
The Economic Intelligence Unit has stated that the Central Bank of Nigeria cannot halt the rapid depreciation of the local currency. The continued volatility of the naira is expected to result in erratic regulation, primarily affecting businesses that hold foreign exchange. Nigeria Presses Ahead With Reforms The Economic Intelligence Unit (EIU) has stated that the […]
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Honduran City of Prospera Adopts Bitcoin as Unit of Account
The city of Prospera in Honduras has recently adopted bitcoin as a unit of account, allowing companies to pay taxes and determine obligations in bitcoin. The measure could incentivize the development of a circular economy, given that bitcoin has been legal tender in the city since 2022.
Prospera Adopts Bitcoin as Unit of Account
The city of Propera has taken the first steps for the development of a pure bitcoin-based economy. The zone announced it approved using bitcoin as a unit of account on January 5, allowing for prices and taxes to be denominated and paid using bitcoin.
Jorge Colindres, General Secretary of Prospera, supported this decision. He stated:
At Prospera, we believe in the right to financial freedom and monetary freedom. People should be free to carry out transactions, do their accounting, and report taxes in the currency of their free choice.
Adopting BTC as a unit of account brings possibilities for establishing a bitcoin circular economy in the city, given that BTC has been approved as a legal tender since 2022. In this sense, the city declared that this move “presents an exciting opportunity for residents and businesses at Prospera, paving the way for a modern, efficient economic ecosystem in this pioneering city.”
However, the payment of taxes with BTC is still on hold due to external regulatory issues and technical limitations involving the adopted electronic tax payment system. This means that tax duties will be declared in BTC but will be reported to authorities in U.S. dollars or Honduran lempiras.
While at one time there were rumors about Honduras adopting bitcoin as legal tender in 2022, the central bank of the country quickly put the rumors to rest, stating that it was not a regulated currency and had no status of legal tender, later warning on the dangers of cryptocurrencies due to the rising popularity of these assets.
Nonetheless, Prospera has self-regulation faculties under the Development and Employment Zone (ZEDE) designation, allowing it to make independent decisions. This, however, has spurred criticism from part of the Honduran society that considers the existence of these zones a violation of its constitution and sovereignty over the territories they occupy.
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What do you think about adopting bitcoin as a unit of account in Prospera? Tell us in the comments section below.
Indian Government Reveals 28 Crypto Service Providers Are Registered With Financial Intelligence Unit
The Indian government has revealed that 28 crypto service providers are currently registered with the country’s Financial Intelligence Unit. Furthermore, the Ministry of Finance has clarified that the anti-money laundering guidelines and reporting requirements apply to offshore cryptocurrency exchanges servicing the Indian market.
28 Crypto Firms Are Registered Entities
India’s Ministry of Finance answered some crypto-related questions in Lok Sabha, the lower house of India’s parliament, on Monday.
The finance minister was asked by a parliament member to provide “the details of all the registered entities as per the AML and CFT [Anti-Money Laundering and Countering the Financing of Terrorism] Guidelines for Reporting Entities providing services related to virtual digital assets.”
Pankaj Chaudhary, Minister of State in the Ministry of Finance, provided parliament with a list of 28 Virtual Digital Assets Service Providers (VDA SPs) registered with India’s Financial Intelligence Unit (FIU). They include Coindcx, Unocoin, Giottus, Bitbns, Zebpay, Wazirx, Coinswitch, Mudrex, Buyucoin, Pyor, Valr, and Bytex.
The Indian Ministry of Finance said in March that entities dealing in virtual digital assets, including crypto exchanges and intermediaries, are considered ”reporting entities” under the Prevention of Money Laundering Act (PMLA).
The minister of state was also asked in Lok Sabha whether the aforementioned “guidelines and reporting requirements are applicable to offshore crypto exchanges servicing the Indian market.” He replied:
Yes, the guidelines and reporting requirements are applicable to offshore crypto exchanges servicing the Indian market. The process of registration for the said VDA SPs has been initiated. Appropriate action under PMLA shall be initiated in cases of non-compliance by offshore platforms.
What do you think about the information provided by Indian Minister of State Pankaj Chaudhary regarding registered crypto trading platforms and offshore exchanges? Let us know in the comments section below.
Hong Kong Police and Securities Regulator Form Unit to Monitor Crypto Exchanges
Law enforcement officials and financial regulators in Hong Kong have teamed up to better identify illegal activities on cryptocurrency exchanges. The initiative, which comes in the wake of the crackdown on the JPEX exchange, seeks to improve coordination between the government agencies in similar investigations in the future.
Hong Kong’s Financial Watchdog Announces Working Group on Crypto Exchanges Amid JPEX Probe
The Hong Kong Police Force (HKPF) and the Securities and Futures Commission (SFC) of China’s special administrative region have established a dedicated working group to improve collaboration between the authorities in efforts to monitor and investigate illicit and illegal activities linked to Virtual Asset Trading Platforms (VATPs), or cryptocurrency exchanges.
The unit has been set up after a high-level meeting of the two agencies on Sept. 28, the SFC announced Wednesday. Its members represent the HKPF’s Commercial Crime Bureau, Cyber Security and Technology Crime Bureau, and Financial Intelligence and Investigations Bureau as well as the SFC’s Enforcement Division and Intermediaries Division.
The group’s main tasks will be to facilitate the sharing of information on suspicious activities and breaches of VATPs, introduce a risk assessment mechanism for crypto exchanges and enhance coordination and collaboration in related investigations, the press release detailed.
“We have always valued our working relationship with the Police and we look forward to our even closer collaboration in deploying our respective expertise and resources in combatting problematic VATPs and protect the interest of investors,” SFC Executive Director of Enforcement, Christopher Wilson, was quoted as stating.
Assistant Commissioner of Police, Eve Chung, described the joint platform as instrumental for speeding up intelligence exchange in response to VATP-related challenges, adding that its implementation will help Hong Kong authorities to better protect the general public.
The working group has been formed amid an ongoing investigation of cryptocurrency exchange JPEX which resulted in the suspension of some of its activities and multiple arrests. The probe also led to increased regulatory scrutiny over the whole sector at a time when Hong Kong is seeking to revive its status of a global financial center including by taking steps to become a major hub for digital assets and crypto businesses.
Do you think the working group set up by the Hong Kong authorities will hamper the operations of cryptocurrency exchanges in the region? Tell us in the comments section below.
Israeli Cyber Crime Unit Raids Company Accused of Producing a Crypto-Stealing ‘Sting Software’
Israeli law enforcement recently raided the offices of a company accused of producing software used by criminals to defraud crypto investors of millions of dollars. Some six suspects were arrested following the raid on a company that is reportedly operated by the country’s infamous crime families.
‘Sting Software’
The Israeli police’s National Cyber Crime Unit recently raided an IT company whose so-called “sting software” has helped criminal syndicates to steal millions of dollars from crypto investors. According to a Ynet News report, six individuals were arrested while dozens were taken in for questioning.
According to the report, the raided company is believed to be operated by the country’s infamous crime families. In his remarks following the raid, Dudi Katz, the head of Lahav 433’s National Cyber Crime Unit, said:
“We were able to stem the tide of this crime wave and bring down hundreds of call centers. This operation spanned internationally and was unique in scope, including cooperation with German police forces.”
In addition to German law enforcement, members of the Israel Money Laundering and Terror Financing Prohibition Authority as well as the Israeli Tax Authority were also involved in the raid.
Detained Suspect Denies Charges
As stated in the report, criminal syndicates would lure unsuspecting victims with the promise of high returns on crypto investment. The victims who showed an interest were then given purported credentials to access or control their investment portfolio. However, the report said when victims attempted to withdraw or cash out their profits they would realize that this option was not available.
Meanwhile, one unnamed suspect’s legal representatives Shay Roda and Uri Goldman said their client rejects the charges. They said as the investigations into the company continued, they would be able to relay the suspect’s “message to the relevant cyber investigators.”
What are your thoughts on this story? Let us know what you think in the comments section below.
BRICS Discussing Single Unit of Account, Alternative to Dollar, Russian Finance Minister Says
The BRICS members are mulling over the possible launch of a common unit of account, Russia’s Minister of Finance Anton Siluanov unveiled. This would be an alternative to the U.S. dollar that can be used to denote the cost of some commodities, for example, but not a single currency like the euro, the Russian official explained.
BRICS States Focused on Trade in National Currencies, See Potential in Unified Settlement Systems
The BRICS countries (Brazil, Russia, India, China, and South Africa) are discussing the possibility of creating a common unit of account that would serve as an alternative to the U.S. dollar, Minister Siluanov told the Chinese state-run CGTN TV channel during the BRICS summit.
Leaders of the BRICS member states are meeting in Johannesburg on Aug. 22-24, with Russian President Vladimir Putin joining via video link, to discuss the future moves of the group. The prospect of issuing a single currency for the bloc, which unites leading emerging economies, is one of the topics of the talks.
Anton Siluanov pointed out, however, that the main emphasis, when it comes to the development of trade relations, is now placed on settlements in national currencies. “We see the potential to discuss the creation of unified settlement systems,” he said, also quoted by the Tass news agency, and elaborated:
This can be a unit of account for the BRICS member countries. Not a single currency like in the EU but an alternative to the dollar, in which the cost of commodity deliveries can be denoted as well as benchmarks for some goods so as not to depend on the single currency or an issuing center that issues banknotes in a no-one-knows-how manner.
Intensive consultations have been carried out in recent months within BRICS on launching a single currency, according to an earlier report by Tass quoting a representative of the South African Ministry of International Relations. However, there has been no decision to this effect yet, the official said, adding that a BRICS currency was being discussed as a concept.
During a meeting of the foreign ministers of the BRICS states in Cape Town in early June, the group’s top diplomats announced a plan to encourage the use of local currencies in international trade. At the end of April, South Africa’s ambassador to the group, Anil Sooklal, highlighted efforts to create a common currency but also noted that the bloc was focused on expanding the use of national currencies.
Do you think that BRICS will eventually issue a single currency? Share your expectations in the comments section below.
Canadian Police Unit Utilizes Chainalysis Blockchain Forensics for Cryptocurrency Investigations
Officials in law enforcement from Lethbridge, situated in the province of Alberta, Canada, have unveiled that the Lethbridge Police Service (LPS) is now utilizing Chainalysis blockchain forensics software. According to local reports, LPS has acquired the capacity to trace cryptocurrency transactions, enabling them to ascertain the locations where the funds have been deposited.
Lethbridge Police Service Embraces Blockchain Surveillance Technology
Police in Lethbridge, Canada have told the press that investigators at the station utilize Chainalysis’ Reactor blockchain surveillance software. The Lethbridge Herald discussed the situation with sergeant Kevin Talbot of the Lethbridge Police Service (LPS) Economic Crimes Unit. Talbot has been trained in blockchain analysis, which is considered a significant advancement for a smaller force like the LPS, the report said.
The report notes that technology allows the LPS to trace transactions, identify suspects, and determine where funds have been deposited, even though prosecuting the scammers is still a challenge. Talbot discloses that it allows the police force to write production orders to gather information about the account holder.
“We’ll get to the point where we have a transaction data but we’re unable to trace it because it requires special programming to do these things and training. In Canada, we’re making headway,” Talbot explained to the Herald. “I will use the Chainalysis Reactor program to do the trace to an exchange. That information is then shared with an investigator who will then write a production order to obtain the information about the account holder, whether there’s funds in the account and where the funds may have been transferred out to,” added Talbot.
Sergeant Talbot acknowledged that the police force is only in the “early stages” of harnessing the Chainalysis Reactor technology, having begun to use the software just a few months ago. In the realm of tracing funds to a crypto exchange, he has enjoyed “100% success doing that,” he shared. Yet, prosecution has proven more elusive. Still, Talbot expressed optimism, believing the team will “have more success in that in the future.”
“The focus when we do these investigations is two-fold,” Talbot stated. “One we’d love to prosecute someone but often though individuals involved in this are out of country which makes it a little more difficult to prosecute, but not always – there are occasions where they’re local or at least in North America.”
What do you think about police forces and local law enforcement officials leveraging blockchain surveillance tools? Share your thoughts and opinions about this subject in the comments section below.
Binance Unit in Britain Cancels UK Regulatory Authorization
Britain’s financial regulator has approved a request by Binance to cancel its regulatory permissions in the United Kingdom. The move comes as the world’s leading cryptocurrency exchange takes steps to focus on fewer European markets amid increased scrutiny from regulators and ahead of Europe’s new crypto rules.
Binance No Longer Authorized to Provide Regulated Activities and Products in the U.K., FCA Says
Binance’s subsidiary in Britain, Binance Markets Limited (BML), has recently filed a cancellation request for its regulatory authorization. On June 7, the U.K.’s Financial Conduct Authority (FCA) announced the request was completed on May 30, 2023.
According the FCA’s Financial Services Register, the entity, which was previously authorized by the regulator, “can no longer provide regulated activities and products.” In an update on its interactions with the company, the Authority stated:
Following the completion of the cancellation of permissions the firm is no longer authorized by the FCA.
No other entity in the Binance Group, except Binance Markets Limited, holds any form of authorization or registration to conduct regulated business in the United Kingdom, according to the exchange’s listing on the FCA website.
Even before the cancellation, BML was not operating in the U.K. as on June 25, 2021 the FCA imposed certain requirements which prohibited the company from carrying out any regulated activities without its prior written consent.
At the same time, “the Binance Group appear to be offering U.K. customers a range of products and services via a website, Binance.com,” the Authority remarked in its supervisory notice two years ago. It has since warned Brits against trading on the exchange.
Binance’s U.K. Move Coincides With Exit From the Netherlands, Cyprus
The news of the cancelled license comes when the world’s largest crypto exchange finds itself under increased scrutiny by regulatory bodies in various jurisdictions. In the U.S., the Securities and Exchange Commission (SEC) sued the entities operating its American subsidiary for violating securities laws. Binance US recently avoided the freezing of its assets thanks to a deal with the SEC.
In Europe, Binance has been taking steps to reduce its footprint in terms of maintaining a number of subsidiaries seeking regulated status in multiple jurisdictions, ahead of the implementation of the European Union’s newly adopted Markets in Crypto Assets (MiCA) legislation. The exchange said it intends to focus on some regulated units in EU countries such those in France, Italy, and Spain.
Last week, announced it’s exiting the Dutch market as it has been unable to register as a crypto service provider. It had been fined by the central bank of the Netherlands for operating without registration. Earlier, Binance’s entity in Cyprus applied to be removed from the country’s register of digital asset service providers.
Do you think Binance plans to exit other European jurisdictions? Share your thoughts on the subject in the comments section below.