Digital Digest June 2022

Wirex Resumes Services in UK after ‘Constructive Dialogue’ with FCA

Wirex, a global digital payment platform, announced on Thursday that it is resuming its services in the United Kingdom.The digital payment provider said it reached the decision following 'constructive dialogue' with the Financial Conduct Authority (FCA), the UK’s financial industry watchdog.

This is coming weeks after Wirex announced that it has made its non-custodial wallet more accessible to its users in Malaysia and Indonesia through the release of a new payment method. Wirex is licensed as an electronic money institution in the UK and is regulated by the FCA. Faster Payment is a UK banking initiative that speeds up the process of sending money within the UK using the system established by the Bacs Payment Schemes Limited (BACS).

“With over 5 million customers worldwide, Wirex is now set to bring a variety of upgraded and innovative products to the UK market,” Wirex said in a statement. According to the payments company, some of the updated features included the ability of new UK users being able to order its Mastercard debit card. This card, it explained, enables holders to spend different currencies at more than 81 million locations around the world.

“Additionally, all UK users will now have access to increased daily top-up and spending limits, exclusive over-the-counter exchange rates, and zero fees on foreign exchange and transfers to contacts,” Wirex noted in the statement.

According to details on Wirex’s website, customers can add up to $25,000 every day to their Wirex accounts. They can also generate up to 8% rewards with every purchase made with the multicurrency Wirex card.

Furthermore, they can enjoy having no balance limits and being able to make $500 daily ATM withdrawal.

Russia Defaults on Foreign Debt as Sanctions Cripple Payment Channels

Russia, a country facing stringent financial sanctions, has defaulted on its foreign currency sovereign debts for the first time in over a century, Bloomberg reported on Monday. Though the country has enough funds available for the payout, payment restrictions have become a barrier to the distribution of funds to international creditors.

The country missed the payment deadline on Sunday of around $100 million of snarred interest? payments? due on May 27. The missed payment after the grace period of 30 days is considered a default.

Credit agencies usually officially certify such payment defaults. However, sanctions on Russia by the western governments have forced them to withdraw ratings on any entities in the country.

Russia already sent the international interest payments to Euroclear before the deadline, but that payment is stuck there, and the creditors failed to receive it. Euroclear did not confirm the status of the Russian government’s payment but said it adheres to all sanctions.

Bitcoin Exchange Supply Hits the Lowest Level in 42 Months

Bitcoin supply on leading crypto trading platforms has plunged to its lowest level since November 2018 amid the recent market correction. According to the data posted by on-chain analytics platform Santiment, digital asset exchanges now hold just 9.3% of the BTC supply, compared to almost 15% in June 2020.

While the Bitcoin exchange supply has dipped in the past few years, the percentage of USDT supply on prominent exchanges has increased sharply during the same period. Crypto exchanges currently have approximately 38.4% of the total USDT supply.

“The ratio of Bitcoin's supply continues staying low at levels last seen in November 2018. This is a good signal of limited future sell-off risk. In the meantime, Tether supply continues skyrocketing on to exchanges, indicating greater buying power,” Santiment highlighted in a recent Tweet.

On 22 June 2022, Whale Alert highlighted the movement of 1,400 BTC from the digital exchange, Coinbase to an unknown wallet. According to the details shared by the blockchain tracking platform, the $28 million worth of transfer was executed at 13:43 UTC.

Crypto.com Gets In-Principle Approval from Singapore’s MAS

Cryptocurrency services provider, Crypto.com has recently confirmed that the company has received in-principle approval from the Monetary Authority of Singapore (MAS) for its Major Payment Institution License.

Once granted, the license will allow the digital asset services provider to offer a broad range of payment services in the region under the Payment Services Act. The offering will include Digital Payment Token (DPT) services to clients in the country.

The latest announcement from Crypto.com came nearly two weeks after the company received provisional approval for its Virtual Asset MVP License from the regulatory authorities in Dubai. Additionally, Crypto.com is planning to enhance its presence in the UAE.

“The Monetary Authority of Singapore sets a high regulatory bar that cultivates innovation while protecting consumers, and their in-principle approval of our application reflects the trusted and secure platform we have worked diligently to build,” said Kris Marszalek, the Co-Founder and CEO of Crypto.com. “We look forward to continuing to collaborate with the MAS and deepening our roots in Singapore, a flourishing market for fintech innovation, renowned for its well-regulated business environment.”

Dogecoin Investor Sues Elon Musk for $258 Billion

Billionaire Elon Musk has been sued by a Dogecoin investor on Thursday for $258 billion over claims of running a pyramid scheme by supporting the meme token. The lawsuit named Musk, the electric car manufacturer, Tesla and, the space rocket company, SpaceX.

The legal complaint filed by Keith Johnson in a New York court accused the three of illegal racketeering to inflate the price of Dogecoin.

“Defendants were aware since 2019 that Dogecoin had no value, yet [it] promoted Dogecoin to profit from its trading,” the complaint stated. “Musk used his pedestal as World’s Richest man to operate and manipulate the Dogecoin Pyramid Scheme for profit, exposure and amusement.”

Dogecoin was developed as a meme cryptocurrency, representing a dog face that was an internet meme. However, the token garnered massive popularity during the cryptocurrency bull market.

The legal complaint filed by Keith Johnson in a New York court accused the three of illegal racketeering to inflate the price of Dogecoin.

“Defendants were aware since 2019 that Dogecoin had no value, yet [it] promoted Dogecoin to profit from its trading,” the complaint stated. “Musk used his pedestal as World’s Richest man to operate and manipulate the Dogecoin Pyramid Scheme for profit, exposure and amusement.”

Dogecoin was developed as a meme cryptocurrency, representing a dog face that was an internet meme. However, the token garnered massive popularity during the cryptocurrency bull market.