Coinbase's $100M settlement, US statement on crypto, crypto gains tax in Italy, Israel's proposed crypto rules, Bitcoin dev & NFT influencer hacked

Coinbase agrees to $100M settlement with NY regulator

Coinbase, a popular cryptocurrency exchange, has agreed to pay a $100 million settlement to the New York Department of Financial Services (NYDFS), the state's financial regulator. The settlement follows an investigation by the NYDFS, which found the exchange had engaged in various activities that violated state regulations.?

The violations include operating without a license and failing to implement appropriate anti-money laundering and consumer protection measures. The settlement will also require Coinbase to implement various reforms to ensure compliance with state regulations in the future.

In response to the findings and actions of the Department of Financial Services (DFS), Coinbase has taken steps to address the identified issues and is working to improve its compliance program with the supervision of the DFS and an independent monitor appointed by the DFS.

Mitigate risks related to crypto assets and keep your company crypto-compliant with Scorechain's blockchain analytics solutions. Our platform provides transaction monitoring and risk assessment tools to help your company navigate the complexity of crypto AML regulations. Request a demo to learn more.

US agencies release joint statement on crypto asset?

Federal bank regulatory agencies in the US have released a joint statement addressing the risks for banking organizations associated with crypto-assets and their approach to supervising the matter.?

The statement notes the significant volatility and vulnerabilities in the crypto-asset market over the past year and the agencies' cautious approach to current and proposed crypto-asset activities and exposures at banking organizations. The agencies will continue to evaluate whether or how these activities can be conducted safely, legally, and in compliance with relevant laws and regulations, including those that protect consumers.?

They will also continue to monitor banking organizations' exposure to crypto-assets and may release additional statements on this topic as needed.

Italy approves capital gains tax on crypto assets

The Italian parliament has approved a 26% tax on cryptocurrency gains as part of its 2023 budget law. The tax will apply to gains above €2,000 in a tax period and will include incentives for individuals to declare their cryptocurrency holdings, such as an amnesty on gains achieved in exchange for a substitute tax of 3.5% and a fine of 0.5% for each year.?

The budget law also allows individuals to cancel their capital gains tax at 14% of the value of their cryptocurrency holdings as of January 1, 2023. In addition, losses above €2,000 in a tax period will be tax deductible and can be carried over to future tax periods.

The implementation of a capital gains tax on cryptocurrency in Italy precedes the European Union's implementation of the Markets in Crypto Assets (MiCA) regulation. The regulation will introduce licensing requirements and operational standards for VASPs in the EU's 27 member countries.

Israel to establish a crypto legal framework

The Israel Securities Authority (ISA) is proposing a new legal framework for crypto assets that would bring them under the agency's jurisdiction. The proposed amendments to the Israeli law would classify most crypto assets as financial investments, subject to ISA supervision. In addition, the proposal defines them as digital representations of value that are used for financial investment and can be transferred using a distributed ledger.?

Under ISA’s proposal, crypto assets would be considered financial instruments according to Israeli securities law. The ISA stated that the aim is to protect investors while also allowing for the unique benefits of crypto assets, as current securities laws can regulate some digital assets activity but can be challenging to interpret.

Self-custody risks highlighted by Bitcoin Core developer hack

Luke Dashjr, one of Bitcoin's original core developers, has reported that a hacker drained his balance and that some of the stolen funds reached a Bitcoin address 1YAR6opJCfDjBNdn5bV8b5Mcu84tv92fa.

Dashjr stated that the attackers accessed his PGP key, which is used for cryptographic authentication through an encryption program. Members of the crypto community have expressed their concerns about how a Bitcoin core developer known for being security-conscious could have been compromised, leading some to believe that it may be difficult for average individuals to adopt or secure Bitcoin.

Scorechain quickly identified and flagged the address in its database, enabling users to detect any potential exposure to the exploit. The address 1YAR6opJCfDjBNdn5bV8b5Mcu84tv92fa received a total of 216.93 BTC and sent the funds to numerous addresses through a peeling chain.

Want to learn how Scorechain's blockchain analytics tools can assist you in steering clear of hacked funds and potential risks? Request a demo today.

Influencer loses $300K worth of CryptoPunks hack?

On January 4, 2023, CryptoNovo311's wallet was hacked, resulting in one of the first crypto hacks of the year. CryptoNovo311 expressed their shock and frustration on Twitter, posting a screenshot from OpenSea that showed 2 CryptoPunks, worth more than $300,000 in total, being transferred to another address, 0x8E25Ab3382ad5bde35A09E72d3b9a851A7cC8d00.

In the tweet, CryptoNovo311 wrote, "I just got hacked!!! Are you kidding me!?!". The hack has caused concern and attention among the cryptocurrency community.

Looking at CryptoNovo activity on opensea, the hackers sent a total of 9 NFTs to their address: CryptoPunk #965, CryptoPunk #4608, Meebit #3410, Meebit #6293, Meebit #12769, CloneX #9889, CloneX #4504, MAYC #13446, and BAYC #1723. These stolen NFTs were then moved to other wallets and sold to new owners for a total of 269 ETH and 148.6 WETH.

About Scorechain

Scorechain?is a Risk-AML software provider for cryptocurrencies and digital assets. As a leader in crypto compliance, the Luxembourgish company has helped over 200 customers in 45 countries since 2015, ranging from cryptocurrency businesses to financial institutions with crypto trading, custody branch, digital assets, customers onboarding, audit and law firms, and some LEAs.

Scorechain solution supports 23 blockchains and over 10,000 crypto assets. The software can de-anonymize the Blockchain data and connect with sanction lists to provide risk scoring on digital assets, transactions, addresses, and entities. The risk assessment methodology applied by Scorechain has been verified and can be fully customizable to fit all jurisdictions. 300+ risk-AML scenarios are provided to its customers with a wide range of risk indicators so businesses under the scope of the crypto regulation can report suspicious activity to authorities with enhanced due diligence.