Ladies and Gentlemen, welcome to the Coinsents Crypto Wire, your regular update of news and events regarding Bitcoin,Ethereum, the other digital assets, and the greater global geopolitical scene at large. It's December 16 2022.
Former U.S president Donald Trump has launched an exclusive collection of non-fungible tokens on his official Truth Social account. The collection features Trump and various avatars such as an astronaut and a NASCAR driver, and will be minted on the Polygon blockchain. each NFT will be priced at $99 with 45,000 NFTs being created during the initial run of the collection. In addition to purchasing an NFT, buyers will be able to enter a sweepstakes for a chance to win a gala dinner or a game of golf with Trump. The NFTs have generated criticism on social media with former Trump strategist Steve Bannon stating that anyone involved in the project ought to be fired today. Trump has previously expressed skepticism about cryptocurrency calling Bitcoin a scam and saying that he views it as a currency competing against the US dollar.
The New York Department of Financial Services, also known as the DFS, has issued a guideline requiring banking institutions to seek regulatory approval at least 90 days before offering cryptocurrency related services. The guideline, released by DFS superintendent Adrian Harris, states that New York regulated banks must seek permission from the department before offering cryptocurrency related services, even if it is through a third party. In order to obtain approval, banks must provide a document covering six categories of information related to their business plan, risk management, corporate governance, consumer protection, financial, legal and regulatory analysis. The DFS has asked all institutions already offering cryptocurrency services to comply with the new guideline.
The incoming chair for the Financial Conduct Authority, also known as the FCA, in the United Kingdom, Ashley Alder, has stated that cryptocurrency firms are deliberately evasive and enable money laundering on a large scale. Alder added that regulation is necessary to address risks related to conflicts of interests among actors and unclear classification of cryptocurrency assets. Data from chain analysis indicates that only about 0.05 percent of all cryptocurrency transactions in 2021 were linked to money laundering. Alder's comment has come at a time when the UK is positioning itself as a global cryptocurrency hub, with plans to extend tax relief belief to cryptocurrency investment managers. Alder will take over as FCA chair in February, 2023 and has indicated that cryptocurrency firms looking to do business in the UK will face strict regulations.
The G20 Nations, which make up 85 percent of the global GDP, and influence major Global decisions, have set plans to introduce a global policy for regulating the crypto industry. The group met in Bangalore, India on December 13th and 14th to discuss the implications of crypto assets on economic monetary and banking policies as a precursor to a global crypto policy. The president of Germany's Financial Market regulator, Mark Branson, has also called for global crypto regulations, stating that it is needed to protect investors from harm and to prevent the industry from becoming a playground for grown-ups that is vulnerable to "freeloaders and Crooks."
The French government is considering introducing a licensing system for cryptocurrency firms in response to concerns about regulation and oversight in the sector under the current rules companies operating in France were given until 2026 to obtain a full license, but this timeline may be shortened in order to align with incoming European regulations. The proposed licensing system would be similar to existing Financial regulations requiring companies to meet certain criteria, such as having sufficient capital reserves, and demonstrating compliance with anti-money laundering laws. The move follows the bankruptcy of FTX, which raised concerns about the lack of oversight in the crypto industry. The French government hopes that the licensing system will provide greater protection for consumers and ensure the companies are operating legally.
The Central Bank of Brazil plans to launch its own digital currency in 2024 following a closed pilot program in collaboration with financial institutions in 2022. The digital currency will be designed to encourage Banks to tokenize their assets and improve settlement auditing and funding costs according to Roberto Campos Neto the bank's president. The international monetary fund has repeatedly approached the bank about the project, which has received International attention, and provided feedback indicating that other central banks should consider implementing a similar model. The Central Bank of Brazil's digital currency is expected to increase the use of the bank's popular instant payment system Pix, which allows users to access cheaper credit without a fee.
Epic Games, the developer of Fortnite, which is one of the most popular video games in the world, has introduced a metaverse oriented programming language called Verse, which will focus on building the future metaverse, a shared real-time 3D environment for social interactions. The language is designed to support an open economy governed by rules rather than being controlled by corporations, and will be available for any programmer artist or designer to use. Verse aims to support interoperable content by enabling live updates of running code and leveraging operational standards for multiple game engines, including Unreal and Unity. Epic Games will publish papers and specifications for others to implement will offer a compiler, verifier and runtime under a permissive open source license with no intellectual property and conferences. The language is intended to improve scalability interoperability and the speed of transactions in the crypto industry.
The Polkastarter Gam3 Awards, 2022 is awarded the game of the year title to Big Time, an action adventure a game from Open Loot, that features unique blockchain game mechanics. The awards ceremony included the presentation of prizes valued at over $1 million to winners in multiple categories, as well as the premiere of exclusive footage of new Web3 games, including Block Lords, Mythic Protocol, Cards of Ethernity, Mummy.io and Illuvium. Head of gaming at Polkestarter announced that the Gam3 Awards will return in 2023, with the possibility of a live event.
Garrett Soloway, a technical analyst with over 20 years of experience, has stated that regulation will be crucial in driving Bitcoin's next price increase. Solway previously called for a bear market and a Bitcoin price of $20,000 during the November 2021 peak, but now expects a bull market to begin as soon as May of 2023. He believes that regulations will provide clarity and boost investor confidence in the cryptocurrency industry and leading to increased interest from institutional investors. Solway predicts that the decoupling of Bitcoin from traditional financial markets such as the NASDAQ will also contribute to its price increase. However, it should be noted that the status of the cryptocurrency regulation is currently uncertain.
Scott Menerd, the chief investment officer of Guggenheim Partners, recently gave an interview to Bloomberg in which he warned that there will likely be a washout in the cryptocurrency industry. He compared the industry to the internet bubble and suggested that it will need a regulatory framework in order to become legitimized. Menerd also mentioned the recent collapse of FTX, and suggested that there could be more financial shakeouts in the future, not just in the crypto industry. Despite this, he believes that the cryptocurrency industry will have survivors, and that it will eventually be transformative for the economy. Menerd also predicted that the price of Bitcoin could bottom out at $8,000 before resuming its rally.
The Gemini exchange suffered a data breach that exposed the email addresses of around 5.7 million users. The Exchange said the leak occurred in a third party vendor and that no sensitive information such as know your customer data was affected. The company warned its users to be vigilant against phishing attacks that could result from the league and said that some of the leaked emails may be due duplicates indicating that the number of users affected may be lower. Gemiini has around 13 million active users. The Exchange went offline briefly after the breach became public and has not yet identified the third party vendor involved.
The United States justice department has charged nine individuals with running two crypto ponzi schemes, engaging in a conspiracy to commit wire fraud, and making false statements. The founders and promoters of Icom Tech and Four count later known as Weltsys, allegedly ran illegal businesses from 2017 to 2021, and fraudulently induced their victims to invest in sham cryptocurrency activities, including cryptocurrency trading and mining, which they did not actually do. Instead, they used existing investors' money to pay other investors, and enrich themselves by purchasing luxury goods and real estate. The perpetrators also introduced proprietary tokens icons and mindex coin, which became worthless and left investors without their funds. The DOJ stated that the companies gave presentations worldwide and claimed that investors could double their money in six months to achieve "Financial Freedom."
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