Daily Archives: July 21, 2021

NFT Marketplace Opensea Raises $100 Million — Firm Becomes a Blockchain Unicorn

NFT Marketplace Opensea Raises $100 Million — Firm Becomes a Blockchain Unicorn

Opensea has become the latest non-fungible token (NFT)-focused firm to raise funds this year as the company announced raising $100 million in a Series B this week. The venture capital firm Andreessen Horowitz led the Opensea financing round alongside investors like Kevin Durant, Ashton Kutcher, and Tobi Lutke.

NFT Marketplace Opensea Joins the Blockchain Unicorns, Project Now Supports Polygon

One of the largest non-fungible token (NFT) marketplaces today, Opensea, has announced the company has raised $100 million in a Series B funding round. Additionally, the project also announced it was expanding its features to “cross-blockchain support” and Opensea will start supporting the Polygon blockchain. The funding round led by Andreessen Horowitz (a16z) puts Opensea into the unicorn status of blockchain startups with a valuation of $1.5 billion after the Series B.

NFT Marketplace Opensea Raises $100 Million — Firm Becomes a Blockchain Unicorn

“At Opensea, we believe NFTs are emerging as one of the first consumer-oriented killer applications for blockchains,” the company said during the funding announcement. “NFTs are a simple primitive for digital goods (think digital art, game items, domain names, and more) with brand new properties: they’re unique, provably scarce, liquid, user-owned, and usable across multiple applications,” the firm added.

In addition to a16z, Opensea’s Series B saw participation from Coatue, as well as investors like Michael Ovitz, Kevin Hartz, Dylan Field, Kevin Durant, Ashton Kutcher, and Tobi Lutke. “NFTs represent the building blocks for brand new peer-to-peer economies, where users have greater freedom and ownership over their data, and developers can build powerful, interoperable applications to provide real economic value to users,” Opensea’s funding announcement emphasizes.

Opensea Swims in an Ocean of NFT Marketplace Competitors Raising Money

According to 30-day statistics from Dune Analytics, Opensea’s sales volume is the highest ever for the month of July surpassing last month’s record-breaking data. July has seen $174.6 million in volume but daily volume is lower than usual at $4.4 million.

Daily statistics from Dune Analytics indicate that during the first week of May, Opensea saw $23.1 million on May 4. As far as Polygon Opensea support, users can test it out today by visiting Opensea’s Matic web page. “Buyers no longer have to pay blockchain fees when making trades on Opensea, and creators can fully earn their way into crypto for the first time,” the company noted.

Opensea’s Series B follows a number of NFT-focused markets that have been able to raise millions to expand the NFT industry. Enjin raised $20 million in a token sale for the Efinity NFT marketplace that supports the Polkadot blockchain. The NFT market Rarible raised over $14 million recently and it plans to launch on the Flow blockchain.

The Mark Cuban-backed non-fungible token (NFT) marketplace Mintable raised $13 million in a Series A funding round during the first week of July. Investors and venture capital firms seem to believe that the NFT hype will stick around for quite some time, and Opensea’s latest funding shows the trend continues.

What do you think about Opensea raising $100 million? Let us know what you think about this subject in the comments section below.

Crypto Fear and Greed Index Taps Low at ‘Extreme Fear,’ BTC Technicals Point to Uncertainty

Crypto Fear and Greed Index Taps Low at 'Extreme Fear,' BTC Technicals Point to Uncertainty

On Wednesday, following the drop below the $30,000 region, bitcoin’s price has rebounded more than 8% since Tuesday’s low. Meanwhile, the sentiment metric recorded by the Crypto Fear and Greed Index (CFGI) is extremely low, pointing to “extreme fear” in the market. Despite being a scary term, the time is usually the best time to obtain assets for a lower price. However, data from Tradingview’s technicals show bitcoin is still in the “sell” range, while bitcoin market oscillators are more “neutral.”

CFGI Sentiment Metric Reaches ‘Extreme Fear’

The price of bitcoin (BTC) tapped a low of $29,300 on July 20, 2021, and since then the price has managed to jump back above the $32,000 handle. Despite the rebound, there’s a lot of uncertainty within the crypto space as far as short-term bitcoin price predictions are concerned.

Crypto Fear and Greed Index Taps Low at 'Extreme Fear,' BTC Technicals Point to Uncertainty
BTC/USD chart shows bitcoin managed to climb back above the $32K zone on Wednesday.

Some believe the price may plunge to the $20,000 zone again and others believe a rebound is in the cards and the next trajectory will be well above the $64K all-time high. Most traders who believe this rebound could happen, think that today’s bitcoin price movements are eerily similar to the prices BTC saw in 2013. At that time, BTC plunged to $50 per coin after skyrocketing well above the $200 handle in mid-May 2013.


Crypto Fear and Greed Index Taps Low at 'Extreme Fear,' BTC Technicals Point to Uncertainty
Crypto Fear and Greed Index (CFGI) hosted on the website alternative.me on July 21, 2021.

Bitcoin’s price then jumped close to 2,400% after the summer 2013 low, and surged to the crypto asset’s first four-digit USD all-time high. After BTC dropped to $29,300 on Tuesday, the Crypto Fear and Greed Index (CFGI) tapped a low of ten on the charts. The score of ten is not the lowest point the CFGI metric has recorded but it is very low in comparison to most days. The last time the CFGI metric recorded a ten was in mid-June and at the end of May as well. Since the end of May, the CFGI metric hasn’t been this low in over a year as the last time the CFGI hit a ten or lower was during the March 12, 2020 market rout, otherwise known as ‘Black Thursday.’

While the extreme fear sentiment may seem dismal, traders believe it is one of the best entry points to get into any market. A market filled with panic sellers and “extreme fear” is sure to see cheaper assets than one filled with “extreme greed,” which is the highest end of the CFGI spectrum. Essentially the CFGI analyzes “emotions and sentiments from different sources and crunches them into one simple number,” the website details.

Oscillators and Moving Averages Tell a Similar Story

In contrast to the CFGI, Tradingview’s BTC/USD technicals show a similar story but some of the indicators can be perceived as a different outlook. A single-day summary of Tradingview’s BTC/USD technicals shows a scale toward the “sell” range.

Crypto Fear and Greed Index Taps Low at 'Extreme Fear,' BTC Technicals Point to Uncertainty
Tradingview’s BTC/USD technicals on July 21, 2021, at 12:00 p.m. (EDT).

Moving averages (MA) are different and Tradingview’s MA technicals point to the “strong sell” range. Alongside this, BTC/USD oscillators are a bit warmer and are indicating a “neutral” range. For instance, the relative strength index (RSI 14) shows “neutral” and stochastic (14, 3, 3) also indicates things are “neutral.”

Crypto Fear and Greed Index Taps Low at 'Extreme Fear,' BTC Technicals Point to Uncertainty
Tradingview’s BTC/USD technicals, specifically oscillators and moving averages on July 21, 2021, at 12:00 p.m. (EDT).

All the moving average indicators suggest the “sell” range while the simple moving average (SMA 10) and the exponential moving average (EMA 10) are in the “buy” range. As far as BTC/USD oscillators, the only signal for “buy” is the momentum indicator but the moving average convergence divergence (MACD), a trend that follows momentum, is recorded as a “sell” on Wednesday.

Delta Exchange CEO Says ‘$30K Has Proven to Be Reliable Support Since May’

Meanwhile, despite the plunge on Tuesday morning, bitcoin (BTC) continues to hold a support zone. In a note sent to Bitcoin.com News, Delta Exchange CEO Pankaj Balani explains the current support, at least so far, has been reliable.

“Bitcoin has been grinding lower since the start of this month,” Balani said. “Volatility has compressed significantly with a lower range. Bitcoin is trading in a significant support zone of $29 – $31K USDT. $30K has proven to be very reliable support since May. A breakdown of this level is likely to result in a significant increase in volatility and a final capitulation of crypto assets. That said, BTC is still in the $30K – $40K rectangle until a conclusive breakdown takes place,” the Delta Exchange executive added.

What do you think about bitcoin’s CFGI metric tapping “extreme fear” and the technicals from today’s Tradingview stats? Do you agree with Pankaj Balani’s reliable support comment? Let us know what you think about this subject in the comments section below.

Former Ethereum Developer Virgil Griffith Arrested for Signing Into His Coinbase Account: Report

Former Ethereum Developer Virgil Griffith Arrested for Signing Into His Coinbase Account: Report

According to reports stemming from investigative journalist Matthew Russell Lee, from Inner City Press, former Ethereum developer Virgil Griffith has violated the terms of his bail and has been taken into custody. According to the reports, the U.S. Attorney’s Office revoked Griffith’s bond because he allegedly tried to access the crypto exchange Coinbase.

Report Says Virgil Griffith Violated His Bond Terms

At the end of November 2019, the United States Attorney’s Office for the Southern District of New York (SDNY) arrested the former Ethereum Foundation member Virgil Griffith for allegedly “assisting North Korea in evading sanctions.”

After the Manhattan U.S. Attorney revealed the news, the cryptocurrency community erupted in outrage. A year and eight months later, Griffith was released on bail but reports from Matthew Russell Lee of Inner City Press note that he’s recently been taken into custody. Allegedly, Griffith violated the terms of his bail and the SDNY judge presiding over his case had him arrested.

“Virgil Griffith was surrounded by two U.S. Marshals and took off his belt before being taken into the holding cell,” Russell Lee wrote on Tuesday. “His lawyer Mr. Klein, when the [Inner City Press] asked, said he had no comment. Virgil’s father, whom Inner City Press previously spoke with, nodded.”

Reportedly Griffith’s Mother Logged-in and Login Was a ‘Misunderstanding’

A report from mon-livret.fr written in French and shared by Russell Lee, explains what happened to Griffith. Allegedly, the former Ethereum developer attempted to access the cryptocurrency exchange Coinbase via his account, but reportedly had his mother sign into the account.

His bail terms noted that he was not allowed to access any of his cryptocurrency accounts while he was under house arrest in Alabama. Griffith’s attorney argued that the login was a “misunderstanding” and Griffith’s lawyer reportedly asserted he didn’t need his mother to log in.

The report highlights that Judge Castel, of the SDNY court, refused to hear the lawyer’s arguments. Castel explained that because of the rising price of ethereum (ETH) the bond terms were created for a reason so Griffith wouldn’t be a flight risk.

Following the judge’s statements and Klein’s arguments, Castel ordered that Griffith should be taken into custody immediately. If convicted of the conspiracy charges for allegedly teaching North Korea “how to use blockchain technology,” Griffith will face up to 20 years in a federal penitentiary.

A petition to the Federal Bureau of Investigation (FBI) hosted on the website Change.org indicates that there’s a formal request to get Griffith out of prison. The petition was created in November 2019, after Griffith’s arrest, and it has only managed to acquire 319 signatures out of 500 during the last year and a half.

“We seek to have Virgil Griffith released from prison and all pending charges dropped,” the Change.org petition creators detail.

What do you think about Virgil Griffith getting taken into custody for accessing his Coinbase account? Let us know what you think about this subject in the comments section below.

Viking Silver Found on Isle of Man Represents 1,000-Year-Old Analog Version of Bitcoin

Viking Silver Found on the Isle of Man Represents 1,000-Year-Old Analog Version of Bitcoin

Off the coast of the Irish Sea, humans have lived on the Isle of Man since before 6500 B.C. The island has a robust history of Viking Age treasures. According to a recent announcement from Manx National Heritage, a heritage agency located there, an amateur treasure hunter recently discovered a hoard of Viking silver on the island. U.S.-based researcher and numismatist, Dr. Kristin Bornholdt-Collins, said the unearthed Viking silver hoard was similar to today’s cryptocurrency and embodied a 1,000-year-old comparison to Satoshi Nakamoto’s Bitcoin.

Viking ‘Hack’ Silver Hoard Was Modern-Day Equivalent to a Cryptocurrency

Just recently, an amateur treasure hunter searching for trinkets on the Isle of Man found a hoard of Viking silver otherwise known as “hack silver.” Manx National Heritage disclosed that the stash of ancient money contained 87 silver coins, 13 pieces of silver arm-rings, and a small fraction of other numismatic artifacts. The Viking stash was discovered in April when Kath Giles was hoovering around with a metal detector on private land.

Giles’ discovery was the third major treasure find on the Island of Man in less than six months, and Giles has managed to dig up at least four significant treasure finds in three years. Dr. Kristin Bornholdt-Collins, an independent researcher and numismatist based in New Hampshire, U.S., explained that the silver includes Dublin-minted pennies and “long cross” pennies which could be cut in half.

Viking Silver Found on Isle of Man Represents 1,000-Year-Old Analog Version of Bitcoin
The latest stash of Viking silver may have stemmed from the age of the famous Viking called “Silkbeard.” Image credit: Manx National Heritage.

The Manx National Heritage announcement notes that the Viking coins have a “90% silver content.” The stash of coins Giles discovered is referred to as a “mixed hoard of Viking Age silver coins.”

‘A Currency Without Borders or Political Affiliation’

Experts believe mixed hoards of money stemmed from owners who planned to reclaim the stash of money at a later date. Bornholdt-Collins says the stash is used like a “piggybank” and could be considered a 1,000-year-old analog version of cryptocurrency.

“The Northern Mixed hoard is the fourth Viking-Age coin hoard to be found in the Isle of Man in the last fifty years,” Bornholdt-Collins said. “It may have been added to over time, like a piggybank, accounting for some of the older coins, though for the most part, it is a direct reflection of what was circulating in and around Man in the late 1020s/c. 1030.”

“In addition to the array of coins,” Bornholdt-Collins added, “both hoards contain a significant hack-silver or bullion portion, which would have been weighed out and possibly tested for its quality in the course of transactions. This is generally expected in finds dating to the ninth and tenth centuries from Viking regions, but appears to be a special feature of the later Manx hoards, too. This may be because bullion was especially convenient for international trade since it was practical for any size transaction and was decentralized, a currency without borders or political affiliation.”

The New Hampshire-based numismatist further said:

In this sense, it was a modern-day equivalent to a cryptocurrency — We might even say it was something like the original ‘Bitcoin.’ It seems only logical, then, that it was so popular in a cosmopolitan trading hub like Man, even several decades into the 11th century, when closely regulated minted silver was well on its way to becoming the norm across Northern Europe.

The Manx National Heritage team believes the coin stemmed from around A.D. 1035 and researchers believe the Viking silver was “built up over a period of a few years, perhaps representing a short-term savings account.” According to the Isle of Man heritage agency, the Viking silver will be showcased at the Viking Gallery at the Manx Museum.

The stash will then be reviewed by the Treasure Valuation Committee at the British Museum in order to provide advice to the heritage agency on caring for the antiquities found. It is assumed that the latest treasure hoard of Viking silver derived from the time of the Hiberno-Norse king Sihtric Silkbeard.

What do you think about the Viking silver found on the Isle of Man and why it is considered an analog version of Satoshi Nakamoto’s Bitcoin? Let us know what you think about this subject in the comments section below.

Major Crypto Mining Company Core Scientific Going Public on Nasdaq With $4.3 Billion Valuation

Major US Crypto Mining Company Core Scientific Going Public on Nasdaq With $4.3 Billion Valuation

Core Scientific, a major blockchain hosting and digital asset mining company, is going public through a merger with Power & Digital Infrastructure Acquisition Corp. The deal values the combined company at approximately $4.3 billion.

Core Scientific to List on Nasdaq

Core Scientific Holding Co., one of the largest blockchain hosting and digital asset mining companies in North America, announced Wednesday its plan to go public on Nasdaq via a special purpose acquisition company (SPAC).

The crypto firm has entered into “a definitive merger agreement” with Power & Digital Infrastructure Acquisition Corp. (Nasdaq: XPDI), a publicly traded SPAC backed by the world’s largest asset manager, Blackrock.

Under the agreement, XPDI will acquire Core Scientific. The combined company is expected to operate as Core Scientific Inc. and remain a publicly listed company on the Nasdaq stock market.

The announcement states:

The transaction [acquisition] values the combined company at an implied fully diluted pro forma enterprise value of approximately $4.3 billion.

Core Scientific described itself as “a 100% net carbon neutral, vertically integrated blockchain infrastructure and mining company.” It has operations in North Dakota, North Carolina, Georgia, and Kentucky.

Darin Feinstein, co-founder of Core Scientific, explained that the company’s blockchain infrastructure business is “backed by more than 70 blockchain and infrastructure-related patents and applications.” He commented, “We are proud to unite our companies and move forward into the capital markets.”

What do you think about Core Scientific going public on Nasdaq via SPAC? Let us know in the comments section below.

China Offers Medics Digital Yuan Insurance Policy for Covid-19

China Offers Medics Digital Yuan Insurance Policy for Covid-19

China’s first insurance policy using the digital yuan for settlement has been issued in Shenzhen, local media reported. The new product, targeting medical personnel exposed to coronavirus risks, is offered by the country’s largest insurer, Ping An. The financial giant also has fintech and healthtech entities under its umbrella.

Ping An Teams Up With Bank of China to Offer Digital Yuan Insurance Policy

In what has been described as another major step towards wider deployment of China’s central bank digital currency (CBDC), the first digital yuan-settled insurance policies have been launched in Shenzhen, Guangdong Province. They come as the result of cooperation between the local subsidiary of Ping An Property Insurance and the Bank of China’s branch in the city, the Shenzhen Special Zone Daily reported.

China Offers Medics Digital Yuan Insurance Policy for Covid-19

The new insurance product is oriented towards medical staff in Shenzhen’s Nanshan district. The policy provides 300,000 yuan (over $46,000) in coverage for death resulting from Covid-19 infection, the Global Times English-language newspaper detailed in an article.

Insured healthcare workers are also eligible to receive 50,000 yuan (around $7,700) if they are diagnosed with Covid and the same amount of money in case of accidental death. Those who pay for their insurance policies using a digital yuan wallet will also get an exclusive preferential allowance, the publication added.

Ping An’s offering represents a pilot implementation of the Chinese digital fiat in the insurance market. The Chinese giant intends to also explore the application of the digital RMB in claims, payments, and other insurance scenarios, according to a representative of its Shenzhen office. Wang Peng, an assistant professor at the Gaoling School of Artificial Intelligence, Renmin University, commented:

[The move] aims to cultivate user habits for a broader range of application scenarios, as the previous trials mostly targeted e-commerce and online payments.

Shenzhen is one of several major cities participating in a government campaign to promote the use of the digital yuan through red envelope giveaways and lotteries, the others being Suzhou, Beijing, Chengdu, and Shanghai. China has so far handed out $40 million in digital yuan in red envelopes, as Bitcoin.com News reported earlier this month, $35 million of which has been dispersed in these five metropolitan areas.

Public testing of the digital yuan started in Shenzhen in mid-October when the local government and the People’s Bank of China distributed 50,000 red envelopes, each loaded with 200 digital yuan. The handouts were reportedly part of China’s first experiment of this kind.

Do you think medical workers in Shenzhen will take advantage of the new digital yuan insurance policy? Tell us in the comments section below.

US Senators Seek to Forbid American Athletes From Receiving and Using Digital Yuan During Beijing Olympics

Three U.S. senators have urged the United States Olympic & Paralympic Committee to forbid American athletes from receiving or using digital yuan during the Beijing Olympics. Raising many concerns, including privacy, they warned, “Olympic athletes should be aware that the digital yuan may be used to surveil Chinese citizens and those visiting China on an unprecedented scale.”

US Senators Raise Concerns About China’s Digital Yuan

Three U.S. senators wrote a letter to Susanne Lyons, the chairman of the board of the United States Olympic & Paralympic Committee (USOPC), Monday with concerns regarding the digital yuan.

Senators Marsha Blackburn, Roger Wicker, and Cynthia Lummis wrote: “We write to express our concerns with the communist Chinese government’s plans to officially launch the Digital Currency Electronic Payment, commonly referred to as the digital yuan, prior to the Beijing Winter Olympics in 2022.” They clarified:

Specifically, we urge the United States Olympic & Paralympic Committee (USOPC) to forbid American athletes from receiving or using digital yuan during the Beijing Olympics.

The digital yuan, the People’s Bank of China’s (PBOC) central bank digital currency (CBDC), “is entirely controlled by the PBOC, and can be tracked and traced by the central bank,” the senators explained.

The Chinese government has been testing and giving away digital yuan in various cities and companies have already begun accepting it as a means of payment. The white paper for the digital yuan was also recently unveiled.

The senators noted that “the Chinese Communist Party insists their efforts are aimed at digitizing banknotes and coins.” However, they warned, “Olympic athletes should be aware that the digital yuan may be used to surveil Chinese citizens and those visiting China on an unprecedented scale, with the hopes that they will maintain digital yuan wallets on their smartphones and continue to use it upon return.”

The letter further states:

The integration of China’s digital currency into global commerce has many problematic privacy implications … These concerns are not hypothetical. Rather, digital payment platforms such as Wechat, are already being used to surveil, threaten, and arrest Chinese citizens.

The senators asked the USOPC to work with the U.S. Department of State, the U.S. Department of Treasury, and the U.S. Department of Commerce “to protect the privacy of American athletes from the Chinese Communist Government.” They also asked for a briefing on this request for Senate Committee on Commerce, Science, and Transportation members within 30-days of receipt of this letter.

Responding to the senators’ action, Chinese Foreign Ministry spokesman Zhao Lijian told reporters Tuesday in Beijing that it revealed their ignorance. “We suggest they figure out what a digital currency really is,” he was quoted as saying. “The US politicians should abide by the spirit stipulated in the Olympic Charter, stop making sports a political matter and stop making troubles out of the digital currency in China.”

Do you think American athletes should be forbidden from receiving and using digital yuan? Let us know in the comments section below.

HOPR Staking Lets You Earn Rewards and NFTs While Supporting Data Privacy

The HOPR protocol provides network-level and metadata privacy for every kind of data exchange. Designed to be better than TOR, the mixnet protects the identity of both sender and recipient by routing data via multiple intermediate relay hops that mix traffic. Now the project launches staking with NFT rewards and you can earn over 18.25% APR.

The HOPR Staking Program

HOPR, the first-ever open incentivized communication mixnet where users earn tokens for running nodes, is launching a gamified staking program. The contract is available for staking deposits from July 20th, rewards will start to pay out from July 27th and the program will run for 175 days.

The contract will be deployed on xDAI Chain and the staking token will be xHOPR. To stake and lock tokens you can simply send xHOPR to the contract address from the address you want to stake from. Rewards will be paid out in wxHOPR, the project’s wrapped token. The developers will also provide an interface to manage your stake, rewards, and NFT boosts.

The staking contract pays out 0.05% per day, which works out at 18.25% APR, but you can further boost this APR by earning and redeeming NFTs. The NFT boosts are mainly a way to engage the community in testing the advanced parts of the HOPR protocol such as cover traffic, but the developers will also be issuing NFTs linked to specific events such as the experiments, games and promotions, and partnerships with other projects to bring new users to HOPR.

Read the full details of the HOPR Staking Program here.

Data Privacy and Decentralization

If you are not yet familiar with HOPR, it can basically be explained as a decentralized network where users can send encrypted data without exposing their metadata.

More and more people are becoming aware these days about how all our private data and metadata are being collected, recorded, sold and potentially used against us. This has lead to a massive surge in VPN services that claim to protect your online privacy – but these are centralized companies that you need to trust are actually honest and not compromised in anyway. TOR is a more decentralized privacy solution, but it suffers from a lack of incentives for people to maintain the network which means it is very slow and virtually stagnant.

HOPR solves both these issues as it is fully decentralized, transparent and offers incentives to maintaining the network in the form of digital tokens. The team of experts behind the project is publicly known and they even developed a hardware router that you can use to access the network directly.

To learn more about HOPR visit the project’s website, and follow the community on Twitter, Telegram and Discord.

This is a sponsored post. Learn how to reach our audience here. Read disclaimer below.

EU Proposes Law to ‘Ensure Full Traceability’ of Crypto Transfers, Ban Anonymous Wallets

EU Proposes Law to 'Ensure Full Traceability' of Crypto Transfers, Ban Anonymous Wallets

The European Commission has proposed legislation to “ensure full traceability of crypto-asset transfers, such as bitcoin,” in order to prevent and detect “their possible use for money laundering or terrorism financing.” Moreover, “anonymous crypto asset wallets will be prohibited.”

New EU Rules Ban Anonymous Crypto Transactions and Wallets

The European Commission presented a set of legislative proposals Tuesday aimed at strengthening the EU’s anti-money laundering and countering terrorism financing (AML/CFT) rules. Among the proposals is a revision of the 2015 Regulation on Transfers of Funds “to trace transfers of crypto-assets.”

The proposals take into account “new and emerging challenges linked to technological innovation,” including “virtual currencies, more integrated financial flows in the Single Market and the global nature of terrorist organisations,” the Commission explained.

At the heart of the proposed legislative package is the creation of a new “EU-level Anti-Money Laundering Authority (AMLA).” It will be “the central authority coordinating national authorities to ensure the private sector correctly and consistently applies EU rules.”

The proposals also include “full application of the EU AML/CFT rules to the crypto sector.” The commission explained that currently only certain categories of crypto service providers are included in the scope of the EU AML/CFT rules. The proposals extend the rules to the entire sector, “obliging all service providers to conduct due diligence on their customers.” The European Commission described:

Today’s amendments will ensure full traceability of crypto-asset transfers, such as bitcoin, and will allow for prevention and detection of their possible use for money laundering or terrorism financing.

The announcement adds that in applying full EU AML/CFT rules to the crypto sector.:

Anonymous crypto asset wallets will be prohibited.

The Commission noted that “anonymous bank accounts are already prohibited by EU AML/CFT rules.”

The legislative package will now be discussed by the European Parliament and Council. “The future AML Authority should be operational in 2024 and will start its work of direct supervision slightly later, once the Directive has been transposed and the new regulatory framework starts to apply,” the European Commission concluded.

What do you think about the European Commission’s proposals? Let us know in the comments section below.

Turkish Draft Law Regulating Cryptocurrencies Enters Parliament in October

Turkish Draft Law Regulating Cryptocurrencies Enters Parliament in October

The Turkish government has prepared a bill designed to implement new regulations for the country’s crypto space. The legislation, which will be filed in the parliament this fall, will introduce taxation for crypto holdings and specific capital requirements for companies operating with digital assets.

New Legislation to Regulate Turkey’s Crypto Market

Following in the footsteps of the West, Turkey is planning to soon put its crypto space in order. The work on a draft law aiming to strengthen investor protection, prevent dirty money laundering, and improve control over cryptocurrency trading has been completed, the Deputy Minister of Treasury and Finance Şakir Ercan Gül announced.

Quoted by the Sabah daily, Gül noted that the Turkish regulations will be similar to those that are being introduced in Western Europe and the United States, although a “little more stringent,” the official remarked, citing the country’s free-floating exchange rate regime as a factor. Speaking to the parliamentary Planning and Budget Committee, Gül stated:

Those that ban [cryptocurrencies] are generally countries with democracy problems. There are free mechanisms in Western Europe and America.

In October, the new bill will be submitted to the parliament in Ankara. Like some European jurisdictions, the Turkish government intends to introduce taxation for cryptocurrency holdings above a given threshold. Lawmakers will review various proposals such as introducing mandatory reporting for crypto transfers over a certain value to the country’s tax office.

Turkish Crypto Companies to Meet Capital Requirements

The new legislation will also define the different types of crypto assets and deal with matters related to the issuance and distribution of digital coins. The draft law lists key principles traders should abide by and conditions under which crypto platforms may provide custodial services for digital currencies. Businesses will be given time to adapt to the new regulatory framework.

Companies involved in the crypto economy will also have to meet minimum capital requirements, the deputy finance minister revealed. The Capital Markets Board of Turkey will take responsibility for the oversight of their activities. The Financial Crimes Investigation Board will be tasked with establishing a surveillance mechanism for consumer protection, preserving market integrity and competition.

Turkey, which is one of the nations where cryptocurrencies have gained significant popularity, prohibited the use of digital assets for payments in April with a regulation issued by the central bank. The measure was enforced as the Turkish lira kept depreciating for months. Following the ban, Ankara updated its existing crypto regulations, adding coin exchanges to a list of entities governed by its anti-money laundering rules.

What do you think about the proposed crypto regulations in Turkey? Share your thoughts in the comments section below.