The Unchained Web Daily #133

If you enjoy and find value in the newsletter, please feel free to donate for its upkeep and independent nature as much as you think is fair:

Monero Wallet Address:

42EkgN23XZoLJXrgMJjrRM7jYpmirk1WvWUWc2SDF6kZAXVzHMGy5XB8JM8Vce3iHGKh9H8ACWF9J6ErrfKCP48mL2yeWcw

Bitcoin Wallet Address: bc1q4283c60tv2p7exfeu2ql7dk2n7utswgl43n2fk

ETH & ERC-20 Address: 0xD16429e3F253f50CfF306B2bE8966ce935332116

BNB & BRC-20 Address: 0xD16429e3F253f50CfF306B2bE8966ce935332116

Reclaim (some) Privacy Webinar Series: Intro to SearXNG & other privacy engines

In April, I am planning my first webinar in a series focused on privacy. The specific webinar will be focused on why Google may not be the best search engine to use and the SearXNG meta search engine and how it can be used to enhance privacy when using a search engine to research or find something to one's interest.

If you are interested in the topic, feel free to click "attend" on the link to the event below: https://www.dhirubhai.net/events/7167975601373458433/about/

BlackRock Controversy Grows With Conflicting Accounts of China Stance

BlackRock, with over $8.59 trillion in assets, awaits SEC decision on a spot Bitcoin ETF, which has been postponed until at least October 17. The closure of BlackRock's China Flexible Equity Fund, with only $22.3 million in assets, raises questions about its commitment to China amidst political tensions. US political pressures against investments in China have increased, with accusations against BlackRock for channeling money to Chinese firms allegedly against US interests. Click here for more.

Meta Ramps Up Metaverse Hype Ahead of Apple Vision Pro Launch

The tech world anticipates Apple's Vision Pro launch. Meanwhile, Meta (formerly Facebook) shifts focus, promoting VR as practical, not sci-fi, with "The Impact Is Real" campaign. They aim to broaden VR's appeal beyond gaming, urging developers to see its present potential. As Apple's Vision Pro looms, both tech giants vie for metaverse supremacy. Meta shifts marketing, Apple courts developers. The future holds a shared metaverse, and it's already here. Click here for more.

IMF Releases New Paper to Address Crypto’s Risks to Financial Stability

IMF and FSB release unified standards to manage cryptocurrency risks at India's request. They argue that crypto assets can harm financial stability and introduce macroeconomic risks, especially in weak policy environments. Using foreign currency-based stablecoins can weaken monetary policy impact and lead to capital flight. Inconsistent crypto tax guidelines and granting legal tender status can hurt government revenue. To lower risks, governments should prioritize "monetary sovereignty" and avoid granting crypto assets legal tender status. FSB recommends clear accountability and risk management for stablecoin issuers. Some countries are developing stablecoins pegged to their currencies, aiming for regulatory compliance. While DeFi offers innovation, regulation is needed to prevent hacks and scams. Click here for more.

Former FTX Executive Ryan Salame to Plead Guilty to Criminal Charges

Former FTX executive Ryan Salame will plead guilty to criminal charges related to the collapse of the cryptocurrency exchange. Salame is expected to cooperate with prosecutors in their case against other FTX executives. This marks the fourth plea from a senior FTX executive, following Caroline Ellison, Gary Wang, and others. Sam Bankman-Fried, FTX's former CEO and founder, remains the primary defendant and denies all charges while awaiting trial. FTX imploded in November 2022 after a crisis of confidence in its balance sheets, leading to bankruptcy filings. Click here for more.

FCA’s New Crypto Marketing Rules Impose Jail Time on Offenders

UK regulators are set to enforce strict new rules for cryptocurrency asset marketing starting on October 8, as announced by the Financial Conduct Authority (FCA). The regulations include a ban on incentives like "refer a friend" bonuses and the requirement to display prominent risk warnings, similar to tobacco or some investment products. These rules will also apply to firms promoting crypto asset products on behalf of others and extend to non-fungible tokens (NFTs). The FCA may provide additional time for technical changes, but the core rules take effect on October 8. International firms marketing to UK customers must comply or risk criminal charges. Non-compliant firms could face an unlimited fine and/or up to two years in prison. Despite aiming to become a "crypto hub," the UK maintains stringent cryptocurrency regulations. In August, the FCA approved only 13% of applications from crypto firms seeking to operate in the UK. Click here for more.

Uniswap (UNI) Holder Anxiety Grows as Exchange Reserves Reach All-Time High

Uniswap (UNI) bulls defend $4 support, but bearish pressure grows. UNI's price rally in early September may run out of steam. Exchange reserves rise, suggesting potential selling interest, leading to a 29% price dip since August 17. Network demand for Uniswap has declined, indicating possible bearish control. Bears could target a $3 price range, with challenges around $3.75. Bulls could reclaim control by surpassing $6, facing resistance at $4.60. UNI price could reach $6 if the resistance doesn't hold. Click here for more.

Vitalik Buterin Pushes for ‘Privacy Pools’ to Balance Anonymity With Regulatory Compliance

Ethereum co-founder Vitalik Buterin and others have co-authored a privacy-focused blockchain research paper on Privacy Pools protocol for regulatory compliance. It includes association sets and addresses centralization concerns. TRM Labs reported a drop in crypto hacks, partly due to sanctions on Tornado Cash. Click here for more.

New US accounting standard for crypto to be finalized by year-end

The Financial Accounting Standards Board (FASB) approved new rules for valuing crypto assets in financial statements. Companies must use fair value accounting for crypto assets, disclose them separately, and no longer group them with intangible assets. Gains and losses must be accounted for in net income. The FASB aims to improve financial reporting and address investor needs. A finalized standard is expected to be approved later this year. This standard may alleviate concerns about impairment charges due to market volatility. Implementation begins for annual reports in 2025, with earlier adoption allowed. Click here for more.

Visa Payments Will Rely on 'Multiple Blockchains', Says Head of Crypto

Blockchain technology, despite its challenges, is evolving similarly to the early internet, according to Visa's Head of Blockchain, Cuy Sheffield. He believes that blockchain will mature over the next decade, with financial firms like Visa showing increased interest. Sheffield envisions Visa's payment network incorporating multiple blockchain networks, stablecoins, and central bank digital currencies (CBDCs). Visa is already exploring the use of stablecoin USDC and Solana to enhance its services. Sheffield's post draws parallels between blockchain skepticism and early internet criticisms, noting the transformative power of technology. It also indirectly references Nobel laureate Paul Krugman's past skepticism about the internet and his recent comments on cryptocurrency. Click here for more.

Tornado Cash co-founder Roman Storm pleads not guilty

Tornado Cash co-founder Roman Storm has pleaded not guilty in a New York District Court to charges of conspiracy to commit money laundering, which could result in a maximum 20-year prison sentence. Storm and fellow co-founder Roman Semenov were accused of operating Tornado Cash, described by prosecutors as a cryptocurrency mixer that laundered over $1 billion in criminal funds and violated U.S. sanctions. The case is being overseen by Judge Katherine Polk Failla, who is also handling a separate case involving Coinbase and the Securities and Exchange Commission. Tornado Cash faced controversy when it was designated a sanctioned entity by the U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC), leading to criticism from crypto advocates. Click here for more.

Aave, Circle, Base become founding members of Tokenized Asset Coalition

Seven DeFi leaders form Tokenized Asset Coalition (TAC) for blockchain adoption, asset tokenization, and institutional DeFi. Founding members include Aave Companies, Centrifuge, Circle, Coinbase, Base, Credix, Goldfinch, and RWA.xyz. Open to organizations sharing their vision. Activities: member calls, quarterly publication, events, working groups. TAC aims to create a unified financial system on the blockchain. Click here for more. Polygon Labs and Mirae Asset Securities collaborate to drive tokenization and Web3 adoption in finance. They will research and enhance tokenized securities networks, aiming for global expansion of South Korea's financial sector. Click here for more.

AI and blockchain will 'reshape sectors' and create new markets from scratch — Moody's

AI and blockchain technologies are reaching a "tipping point," poised to disrupt and create industries, says a Moody's report. The combined impact of AI and DLT (like blockchain) will reshape sectors, shrinking or eliminating established ones while generating new markets. AI will boost productivity and counter aging populations, while DLT can enhance financial inclusion and payment systems. Global financial markets will benefit from efficiency and new products, improving credit profiles if risks are managed. However, the report notes that these changes will bring both opportunities and risks, affecting debt issuer credit profiles in various ways. Click here for more.

Binance to reimburse users $1M for Cyber Earn incident

Binance refunds 1 million USDT ($1 million) due to the CYBER token incident. Liquidity issues on Korean exchange Upbit caused a price discrepancy in CYBER tokens, leading to Binance users who staked CYBER being unable to redeem their assets. Binance offers 800,000 USDT and 871 CYBER in rewards to affected users and 200,000 USDT worth of vouchers to all CYBER stakers. Binance plans to increase interest rates on staked assets during high token volatility. Click here for more.

Taiwan to restrict unregistered, noncompliant foreign crypto exchanges

Taiwan plans to impose restrictions on unregistered overseas crypto exchanges operating within its jurisdiction as part of new guidelines for virtual asset service providers (VASPs). The Financial Supervisory Commission (FSC) has drafted 10 principles for managing virtual currencies in the country, including improved information disclosure, custody separation, and anti-money laundering measures. One of the principles prohibits foreign VASPs from illegally soliciting business in Taiwan without proper registration and compliance with local laws. The FSC will consider international practices and future regulatory amendments, with an official announcement expected by the end of September. In March, the FSC took on the role of Taiwan's primary crypto regulator. Click here for more.

IMF, FSB release joint policy recommendations for crypto assets at request of G20

The IMF and FSB have jointly published policy recommendations at the request of the Indian G20 presidency, addressing risks associated with crypto asset activities. The paper focuses on stablecoins and DeFi, highlighting that stablecoins designed for stability can become volatile, posing financial stability risks. DeFi, despite its differences from traditional finance, can inherit similar risks and vulnerabilities. Claims of decentralization in DeFi often lack transparency and may expose users to risks. The report emphasizes that a blanket ban on crypto may not be effective, suggesting that authorities should address the underlying demand for digital forms of payment instead. Click here for more.

Palau to freeze USD-backed stablecoin after pilot launch in July

Palau is discontinuing its Palau Stablecoin (PSC) project, ceasing distribution on September 8 and freezing the stablecoin after September 15. The government did not provide specific reasons for this decision but will send a survey to pilot participants. The move follows the launch of PSC in late July, aiming to reduce transaction costs and enhance transfer speed. PSC was built on Ripple's XRP Ledger, which is used for similar CBDC projects in other countries like Hong Kong, Bhutan, Colombia, and Montenegro. Feedback from users will influence the final report for the Palau Congress and the president. Click here for more.

AI-generated Drake song up for Grammy nomination

The anonymous producer "Ghostwriter" has submitted a viral track featuring an AI-generated vocal track of rapper Drake, titled "Heart on My Sleeve," for consideration for a Grammy award in the Best Rap Song and Song of the Year categories. The Grammys updated its policy to allow music with AI-generated components to be eligible for awards, as long as the nominated category pertains to a human-created portion of the song. The CEO of the Grammys confirmed that the track is eligible because it was written by a human. However, the track was removed from major streaming services, creating a legal gray area regarding its use of AI. Universal Music Group had previously requested streaming services to block AI services from using copyrighted songs. Click here for more.

EU finance chief: Don’t rush digital euro before new Commission in June 2024

The European Commissioner for Financial Stability, Financial Services, and the Capital Markets Union, Mairead McGuinness, has advocated for a cautious approach to the digital euro project. She believes there's no need to rush the initiative, suggesting that it should be handled quietly and slowly by the next European Commission, which will be approved after the European Parliament elections in June 2024. McGuinness highlighted the importance of exploring the digital euro, especially as cash usage diminishes. The European Central Bank (ECB) is set to decide on the project's fate in October. The investigation phase is expected to conclude by October 2023, with further development and testing to follow. Click here for more.

Nigeria central bank missed opportunity for blockchain regulation in 2021 — Convexity CEO

At the Stakeholders in Blockchain Technology Association of Nigeria (SIBAN) Digital Assets Summit 2023, a group of Nigerian digital asset professionals discussed the future of digital asset regulation in Nigeria. They explored why the implementation of digital asset regulation and blockchain policy has been slow in the country. The panel recognized the efforts of The National Information Technology Development Agency (NITDA) in creating a favorable environment for the blockchain and crypto industry through developmental regulation. They suggested that the Central Bank of Nigeria (CBN) should have taken similar steps in 2021 instead of imposing restrictions on crypto exchanges. The panel also highlighted the challenge of understanding blockchain and cryptocurrency concepts in Nigeria, which led to the 2021 crypto/traditional finance ban. Despite Nigeria's high cryptocurrency awareness, regulatory efforts aim to ensure security and scalability in the industry. NITDA has established a steering committee, including the CBN and the Nigerian Communications Commission, to implement the national blockchain policy and protect crypto investors. Click here for more.

US Treasury, IRS propose cryptocurrency regulations for brokers

The U.S. Department of the Treasury and the Internal Revenue Service (IRS) have released a set of cryptocurrency regulations proposals detailing reporting requirements for cryptocurrency brokers. The proposed rules will require digital asset brokers, including trading platforms, payment processors, and some hosted wallet providers, to report gross proceeds from digital asset sales or exchanges starting on January 1, 2025. These brokers will also need to provide information on gains and losses from crypto asset sales, beginning on or after January 1, 2026. The regulations aim to improve taxpayer compliance by providing the IRS with greater visibility into taxpayer income. Small businesses in the U.S. are invited to share how the regulations will impact them, with a public hearing scheduled for November 7, 2023. Once signed into law, the regulations will require all U.S. brokers to file information returns with the IRS and provide payee statements to customers. Click here for more.

Google makes AI disclosure mandatory in political campaign ads

Google is updating its political content policy to require verified election advertisers to disclose the use of artificial intelligence (AI) in campaign content. This disclosure is mandatory for content involving synthetic elements that inauthentically depict real or realistic-looking people or events. The disclosures must be clear and conspicuous. However, ads with AI-generated content that doesn't significantly alter the claims made in the ad will be exempt. The policy applies to image, video, and audio content and will be implemented in mid-November 2023, coinciding with the one-year mark before the United States presidential elections in November 2024. As AI tools become more prominent, tech companies like Google are focusing on AI policies and services. Click here for more.

Casa wallet launches Ethereum vault relay service for increased user privacy

Casa, a cryptocurrency self-custody platform, has introduced new functionality for its Ether (ETH) vaults. Users can now transact via a relay to enhance privacy. Casa added a multisignature Ethereum self-custody vault to its existing Bitcoin custody offering in June 2023, allowing users to manage their ETH holdings securely. To improve transactional privacy, Casa now allows users to utilize an ETH pay wallet as a relay for transactions from their vaults. This approach offers greater privacy by not associating gas fees and transactions with Casa on-chain, although it doesn't provide complete anonymity. Users must cover gas fees with their pay wallet in exchange for added privacy. Click here for more.

Nigeria’s Web3 education efforts seek to tackle language challenges

Blockchain and Web3 education in Nigeria faces challenges related to language barriers, as the country has over 500 languages spoken. Complex blockchain technology and jargon make it difficult for individuals to understand. Some local blockchain hubs have started educating people in Nigerian languages. The goal is to help newcomers grasp what Satoshi Nakamoto intended with blockchain and counteract the negative perception created by the Central Bank of Nigeria (CBN) and the government. In February 2021, the CBN severed ties between local banks and cryptocurrency exchanges, leading to a slowdown in blockchain awareness and negative associations with crypto in Nigeria. Click here for more.

Former OpenSea manager withdraws application for bail pending appeal

Nathaniel Chastain, a former manager at nonfungible token (NFT) marketplace OpenSea who was sentenced to three months in prison for insider trading, has chosen to serve his sentence while his appeal is pending. Chastain's lawyers informed the court that he would self-surrender by November 2 to begin serving his sentence. Chastain was convicted of wire fraud and money laundering and was sentenced to prison for insider trading on the NFT platform. He was also fined $50,000 and required to forfeit any ill-gotten cryptocurrency from his OpenSea trading activities. Chastain had control over which NFTs were featured on OpenSea's homepage, potentially impacting their prices. Click here for more.

Ripple Labs chair slams Biden, Gensler for having ‘screwed up’ on crypto

Ripple Labs' co-founder, Chris Larsen, criticizes the U.S. crypto policy, claiming it's been mishandled by the Biden administration and the SEC. He sees recent court rulings as a way to regain clarity in the industry. Larsen also criticizes SEC Chair Gary Gensler's approach, emphasizing the need for clear legislative rules. Additionally, he blames Biden's policies for hindering San Francisco's blockchain potential, while other global cities thrive due to clear regulations. For more details, click here.

Rejection of crypto bill exposes Aussies to ‘unregulated market’ — Senator Bragg

Senator Andrew Bragg warns that rejecting the Digital Assets (Market Regulation) Bill in Australia could expose investors to unregulated markets and drive investments away. The Senate Committee on Economics Legislation recommended rejecting the bill, citing concerns about its compatibility with existing regulations. Bragg believes this rejection stems from partisanship and has stalled digital asset regulation in Australia. However, legal expert Liam Hennessey suggests the delay is related to a separate regulatory process. The fate of the bill remains uncertain as it awaits a vote in the Senate. For more details, click here.

Change to US accounting rules will be a boon to companies holding crypto in 2025

The United States Financial Accounting Standards Board (FASB) has unanimously approved rules for accounting for the fair value of companies’ cryptocurrency holdings, effective in 2025. FASB sets accounting standards for organizations following U.S. Generally Accepted Accounting Principles (GAAP). Previously, companies had to retain impairment losses from crypto on their balance sheets even after the asset recovered. The new method will increase earnings volatility but allow recording of financial recoveries from rising crypto prices. Companies can adopt fair-value accounting for crypto immediately. This change impacts not only crypto-native firms like Coinbase but also investment and large crypto-holding companies like MicroStrategy and Tesla. For more, click here.

Grayscale Bitcoin Trust’s alleged wallet addresses released by Arkham

Arkham Intelligence, a blockchain analytics platform, claims to have identified the addresses of the Grayscale Bitcoin Trust, which holds over $16 billion worth of Bitcoin. Grayscale has been secretive about the trust's wallet addresses, citing security concerns, but Arkham's findings reveal five addresses associated with the trust. The addresses collectively hold around $51 million worth of Bitcoin, and Arkham's data aligns with the amount claimed on Grayscale's website, suggesting sufficient reserves for withdrawals. Arkham's actions have sparked debate about privacy and transparency in the cryptocurrency space. For more details, click here.

OpenAI and Microsoft accused of stealing data to train ChatGPT in new class-action suit

Arkham Intelligence, a blockchain analytics platform, claims to have identified the addresses of the Grayscale Bitcoin Trust, which holds over $16 billion worth of Bitcoin. Grayscale has been secretive about the trust's wallet addresses, citing security concerns, but Arkham's findings reveal five addresses associated with the trust. The addresses collectively hold around $51 million worth of Bitcoin, and Arkham's data aligns with the amount claimed on Grayscale's website, suggesting sufficient reserves for withdrawals. Arkham's actions have sparked debate about privacy and transparency in the cryptocurrency space. For more details, click here.

Riot Platforms says Texas energy strategy reduced production costs by $31M

Riot Platforms, a Bitcoin miner, mined fewer Bitcoins in August than July but received over $31 million in power credits. These credits are equivalent to around 1,136 Bitcoins. Riot received $24.2 million in power curtailment credits and $7.4 million from a demand response program under its contract with Texas grid operator ERCOT. These monthly credits exceeded what the company received in all of 2022. Riot's power strategy involves curtailing operations and selling power back to ERCOT when electricity prices make mining unprofitable. The company's CEO, Jason Les, sees these credits as a key competitive advantage, lowering their mining costs. Despite a loss of $27.7 million in the second quarter, Riot plans to expand its mining operations significantly. For more details, click here.

If you enjoy and find value in the newsletter, please feel free to donate for its upkeep and independent nature as much as you think is fair:

Monero Wallet Address:

42EkgN23XZoLJXrgMJjrRM7jYpmirk1WvWUWc2SDF6kZAXVzHMGy5XB8JM8Vce3iHGKh9H8ACWF9J6ErrfKCP48mL2yeWcw

Bitcoin Wallet Address: bc1q4283c60tv2p7exfeu2ql7dk2n7utswgl43n2fk

ETH & ERC-20 Address: 0xD16429e3F253f50CfF306B2bE8966ce935332116

BNB & BRC-20 Address: 0xD16429e3F253f50CfF306B2bE8966ce935332116

Reclaim (some) Privacy Webinar Series: Intro to SearXNG & other privacy engines

In April, I am planning my first webinar in a series focused on privacy. The specific webinar will be focused on why Google may not be the best search engine to use and the SearXNG meta search engine and how it can be used to enhance privacy when using a search engine to research or find something to one's interest.

If you are interested in the topic, feel free to click "attend" on the link to the event below: https://www.dhirubhai.net/events/7167975601373458433/about/

Brought to you by Alexandros Dolgov CBA? (Study/Bitcoin)