The Crypto Currier 1st November

This week in the Crypto Currier:

Elon Musk's takeover of Twitter could see a crypto wallet. Google has launched a bloclchain based node engine for Ethereum projects and the World Bank is backing blockchain to harmonise carbon registry. The EU's?Markets in Crypto-Assets (MiCA) regulation could spell bad news for DeFi, but could help scaling. UK banks are a threat to crypto, and India has seen a rise in crypto used in drug smuggling. NFT marketplaces are in a race to the bottom in royalties paid to their creators and Interpol has warned on the rise in Metaverse crime.

Google Introduces Cloud-Based?Blockchain?Node Service for Ethereum

Google will be launching a cloud-based node engine for Ethereum projects. It said its Google Cloud Blockchain Node Engine will be a “fully managed node-hosting service that can minimize the need for node operations,” meaning that Google will be responsible for monitoring node activity and restarting them during outages. Initially, Google will only support Ethereum nodes. This is the latest sign of the technology giants paying attention to blockchain, crypto and Web3 projects. (CoinDesk)?Read More

World Bank backs blockchain project to harmonise carbon registry data

A new Singapore-based entity founded by the International Emissions Trading Association, the?World Bank, the Singapore government, other governments and public and private sector organisations will use blockchain to log carbon credits. The Climate Action Data Trust (CAD Trust) uses blockchain to create a decentralised log of?carbon credits to store data from multiple major carbon registries. It is creating an open source metadata system and decentralising the data using distributed ledger technology.?(Ledger Insights)?Read More

Elon Musk's Twitter takeover could see crypto wallet, and?Dogecoin soars 44%

Shiba Inu inspired?cryptocurrency?dogecoin went up 44% since Monday as Elon Musk bought Twitter. Elon Musk has been vocal in supporting dogecoin. Its recent gains can also be linked to speculation that Musk may develop a?crypto?wallet that would accept deposits and support withdrawals on Twitter. (Business Insider)?Read More

Crypto?Markets See Largest Short Liquidations in 15 Months; Ether Leads Token Surge

Crypto markets saw over $700 million in liquidations on short trades, or bets against price rises, reaching levels not seen since July 2021. Crypto exchange FTX saw $519 million in liquidations alone, followed by OKX at $71 million and Binance at $46 million. Liquidations occur when an exchange forcefully closes a trader’s leveraged position due to a partial or total loss of the trader’s initial margin and doesn't have sufficient funds to keep the trade open. (CoinDesk)?Read More

Terra co-founder Do Kwon faces $57-million lawsuit in Singapore

Investors in failed stablecoin Terra are seeking compensation for $57 million worth of “loss and damage”?based on the value of UST tokens they purchased and held or sold amid the market downturn in May. They also requested an order to pay for "aggravated damages." The lawsuit, filed in Singapore’s high court in September claims founder Do Kwon, the Luna Foundation Guard, Terra founding member Nicholas Platias, and Terra made fraudulent claims including that Terra’s?stablecoin?TerraUSD (UST) — now TerraUSD Classic (USTC) — was not “stable by design” and unable to maintain its U.S. dollar peg. (Cointelegraph) Read More

What the MiCA Bill Could Mean for the Future of Decentralization

The European Parliament is due to vote on the Markets in Crypto-Assets (MiCA) bill before the end of the year, when the bill will become law within 12 to 18 months. The proposed legislation however could risk a very difficult future for many decentralized finance (DeFi) entities to operate effectively in Europe. (Coindesk)?Read More

?A crypto lawyer's take by?Charlie Kerrigan, CMS: MiCA is a landmark because it is the first time we have a crypto law applying like this in multiple countries.?It is correct that it focuses on financial crime and is consumer focused.?This isn't unexpected when it comes to European legislation.?No regulatory policy will please everyone (as SBF just found out) and it's fine for parts of the community to rate decentralisation as non-negotiable. But, laws harmonised across countries generally enable scaling and that brings its own benefits.?[I will also now go into hiding from Crypto Twitter for a period...)

UK police council reports having officers in every unit trained for?crypto?enforcement

The detective chief superintendent for the United Kingdom’s National Police Chiefs’ Council, Andy Gould, has said all police forces in the country have officers trained for investigations involving the enforcement and seizure of cryptocurrencies. However, he added that the country’s police force has the capability to address economic crimes involving?crypto, but not the capacity. “We are in a position where we have actually seized hundreds of millions of pounds worth of?cryptocurrency?assets within the last year or so. The challenge we have is that it is getting harder and harder to do. The assets themselves are becoming more diverse and more technically complex, so our officers are in a bit of an arms race trying to keep up.” (Cointelegraph)?Read More

United Kingdom banks are a threat to?crypto, and that's bad news for everyone

In 2018, the United Kingdom’s Financial Conduct Authority wrote to the country's biggest high street banks to emphasise the importance of due diligence when dealing with?crypto?businesses, due in large part to the many scams in crypto. However, by barring?crypto?businesses from accessing “mainstream” banking, crypto companies have been forced to use payment service providers, which are rated higher risk by banks because they’re also used by the gambling industry which leads to banks tending to blanket block transactions through PSPs. There’s also a sense that banks are reluctant to derisk?crypto?and make?crypto-to-bank payments easier because they see it as competition and worry it cannibalizes their own market. (Cointelegraph)?Read More

UK?Stablecoin?Rules Approved by Lawmaker Committee

Rishi Sunak’s government has said it wants to 'tentatively seize' crypto opportunities as it prepares to widen the regulatory net. Lawmakers have agreed on new rules for stablecoins and the government promised to consult on further crypto regulations and a digital pound in the coming weeks. “Certain crypto assets and distributed ledger technology could drive transformational changes in financial markets,” recently appointed Economic Secretary to the Treasury Andrew Griffith?said. (Coindesk)?Read More

Indian Minister Reports Rising Use of?Crypto?in Drug Smuggling

Indian authorities are reportedly investigating allegations of illegal drug transaction facilitation by three unidentified Indian?crypto?exchanges. Indian Home Minister?Amit Shah?has reportedly said that those responsible for drug smuggling and terrorism in India are increasingly making use of the darknet and cryptocurrencies. “Digital currency?was used to buy and sell drugs and some of these companies facilitated it,” a senior government official quoted in a report. The alleged?transactions took place over three years and were worth about $3.4 billion. (Pymnts)?Read More

Crypto Lender Hodlnaut Lost Close To $190M In TerraUSD Collapse

Reports have shown that Singapore-based crypto lender Hodlnaut has lost close to $190 million due to its exposure to the collapsed Terra algorithmic stablecoin UST. It had initially downplayed its exposure to Terra's UST despite the fact that it had suffered a huge loss from its collapse. According to new reports, Hodlnaut has been misstating the facts with data indicating that the crypto lender had deleted more than 1000 key documents, which could have been revealed before the exposure. Some employees also withdrew over $500,000 worth of assets before the the lender suspended withdrawals, deposits, and token swaps in August, stating the “difficult market conditions”, indicating that at least some employees knew of the problems.?(Bitcoinist)?Read More

Core Scientific reveals financial distress in SEC filing, says its end may be near

Bitcoin?miner Core Scientific has filed forms with the?United States SEC (Securities and Exchange Commission) indicating that will not make payments due in late October and early November.?The mining firm blamed low?Bitcoin?prices, increased electricity costs, an increase in the global?Bitcoin?hash rate and litigation with the bankrupt?crypto?lender Celsius for the situation. The filing also warned that Core Scientific has engaged legal and financial advisers and is negotiating with creditors and considering restructuring its capital, and may initiate bankruptcy proceedings. (Cointelegraph)?Read More

Race to the Bottom as?NFT?Marketplaces Refuse to Pay Artist Royalties

NFT marketplaces seem to be in a race to the bottom on artist royalties.?LooksRare, the second-largest?NFT?marketplace on the?Ethereum?blockchain announced that it would no longer collect and distribute artist royalties but instead creators will get a 0.5% cut of sales. Which is a small fraction of the royalty fee that artists generally choose to levy. LooksRare is the latest in a growing line of?NFT?marketplaces that are eroding giving out these royalties, a tool that has been used as a way to attract artists to the?NFT?market. “The growth of zero-royalty marketplaces has eroded the general willingness to pay royalties throughout the?NFT?space,” LooksRare said in a blog post announcing the change. “Good news for traders, but with a big downside: the move away from royalties has removed an important source of passive income for most creators.” (Pymnts)?Read More

Interpol says the metaverse could open up a whole new world of crime

Interpol has issued a new warning that the metaverse could be used to facilitate new forms of cybercrime. Interpol’s executive director for technology and innovation, Madan Oberoi said phishing could take on a whole new meaning when virtual reality and augmented reality are thrown into the mix. Also, the question of child safety cannot be understated. (TechRadar)?Read More

Norwegian government agency opens metaverse office in collaboration with EY

A Norwegian government agency, The Br?nn?ysund Register Center, has partnered with EY to open a new virtual office location in the Metaverse. The virtual office plans to offer users information on?crypto?reporting and information on how to start an enterprise. Magnus Jones, Nordic innovation lead at EY, said?“More and more authorities see a clear need of being present at the platforms where mainly younger generations are both for tax and legal purposes with regards to information.” (Cointelegraph)?Read More

First Metaverse Shopping Mall Set To Rise In Mexico

Mexico has turned into a?crypto-centric regime with the national adoption of?digital assets, due in part to a friendly regime and?rising inflation issues in the state.?The country has introduced its first shopping mall in the Metaverse space. Island Shopping Mall currently features around 80 brands. (Bitcoinist)?Read More

Events- Fintech Connect London, 30th Nov- 1st Dec???

FinTech Connect London 2022 is back in person at ExCel with 2 days of content with speakers answering questions around topics including What does the metaverse mean for the fintech ecosystem, the future of blockchain, key payments trends into 2023 - Cash vs contactless vs crypto, the regulatory landscape and the chance to watch the premier of ‘FinTech for Good’. Free to attend -?Get your ticket here???