The Unchained Web Daily Crypto News #68

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/

‘The Bitcoin Standard’ author becomes economic advisor to El Salvador

Dr. Saifedean Ammous, the author of the book "The Bitcoin Standard," has been appointed as the economic advisor to the National Bitcoin Office of El Salvador. The office announced his appointment on May 30, stating that he will advise on various economic policies. Dr. Ammous' book, published in 2018, explores the transition from solid stores of value to inflated assets and fiat currencies, tracing the history of money and its impact on civilizations. In a tweet, he expressed excitement about working in the first country to adopt a Bitcoin standard. Dr. Ammous believes Bitcoin's uniqueness lies in its ability to provide a strong asset that does not depreciate over time, contrasting it with money that loses value. He stated that if El Salvador continues to accumulate Bitcoin, the country has a good chance of becoming debt-free in the next five years. The National Bitcoin Office reported that Dr. Ammous visited El Salvador to teach locals about Bitcoin and the Lightning Network. He also met with President Nayib Bukele to discuss the benefits of economic liberty. The appointment of Dr. Ammous is part of Bukele's efforts to promote Bitcoin adoption in El Salvador, with other notable figures like Max Keiser and Stacy Herbert also involved in the initiative. Click here for more.

Hong Kong and UAE central banks collab on crypto rules, fintech development

The central banks of Hong Kong and the United Arab Emirates (UAE) have agreed to collaborate on cryptocurrency regulations and financial technology development. The Hong Kong Monetary Authority (HKMA) and the Central Bank of the UAE (CBUAE) have agreed to strengthen cooperation on virtual asset regulations and developments. They also aim to facilitate discussions on joint fintech initiatives and knowledge sharing. The meeting discussed financial infrastructure, market connectivity, and improving cross-border trade settlement. The collaboration is expected to benefit both jurisdictions economically, leveraging their complementary strengths and mutual interests. Hong Kong's Securities and Futures Commission (SFC) is also allowing virtual asset service providers to cater to retail investors, recognizing the staying power and potential benefits of cryptocurrencies. The collaboration comes as several cryptocurrency exchanges have applied for dedicated crypto trading services in Hong Kong. Click here for more.

U.S. CFTC Warns About Clearing Derivatives Tied to Digital Assets

The U.S. Commodity Futures Trading Commission (CFTC) is warning companies about the risks associated with clearing digital asset transactions and is considering turning this advisory into formal rules. The CFTC's Division of Clearing and Risk issued the advisory, focusing on emerging risks in the crypto space due to an increase in supervised entities clearing such trades. The risks include conflicts of interest, cybersecurity threats, and the management of physical delivery of digital assets. Commissioner Kristin Johnson supports the idea of formal rulemaking, stating that without parallel regulation, crypto-commodity derivatives clearing models may not be subject to the most rigorous standards. The CFTC has been taking enforcement actions against crypto companies and is expected to play a larger role as an industry watchdog. However, bills to enhance its authority have yet to move through Congress. Click here for more. Click here for more.

China to gain most from restrictive US crypto regulations — Coinbase CEO

Coinbase CEO Brian Armstrong has warned that restrictive crypto policies in the United States could benefit "adversary nations" like China. In an op-ed for MarketWatch, Armstrong emphasized that dismissing crypto as an unstable asset class could cause the U.S. to lose its status as a financial leader and innovation hub. He urged policymakers to recognize that crypto is a transformative technology with the potential to revolutionize various sectors, such as finance, supply chains, and social media. Armstrong called for regulatory clarity to help the crypto industry realize its potential while protecting consumers. He also mentioned that Hong Kong is positioning itself as a global crypto hub as China aims to challenge the U.S.'s financial leadership. Armstrong warned that without comprehensive crypto legislation, the U.S. would need to catch up and invest significant resources to bring innovation back, potentially facing challenges even with a massive effort. Click here for more.

Yield farming app accumulates $12M TVL 2 weeks after launch

Origin Ether, a new yield farming app, has accumulated over $12 million in total value locked (TVL) just 14 days after its launch. Data from DefiLlama shows that the app had approximately $793,000 locked inside its contracts even before the public launch. After the launch on May 16, deposits to Origin Ether rapidly increased, resulting in a TVL of over $13 million by May 30. The app generates yield by depositing Ether into various liquid staking and decentralized finance (DeFi) protocols, utilizing algorithmic market operations on Curve and Convex to maximize returns. Some of the ETH is converted into liquid staking derivatives before being deposited, allowing users to earn additional farming rewards. Liquid staking protocols have gained popularity as Ethereum transitioned to proof-of-stake consensus and enabled withdrawals. Liquid staking protocols have become the top DeFi category, surpassing decentralized exchanges in terms of TVL. Click here for more.

Researchers propose new scheme to help courts test deanonymized blockchain data

A team of researchers from Friedrich-Alexander-Universit?t Erlangen-Nürnberg has published a paper outlining methods for investigating and validating deanonymized data on the Bitcoin blockchain. The paper, titled "Argumentation Schemes for Blockchain Deanonymization," provides a framework for conducting and presenting investigations into cryptocurrency-related crimes. While focusing on the German and US legal systems, the authors believe their findings are generally applicable. Investigating Bitcoin-related crimes involves deanonymizing suspected criminals, which is challenging due to the pseudonymous nature of blockchain transactions. However, blockchain's transparency allows investigators to piece together a digital paper trail using transaction data. The researchers state that the bottleneck in these investigations is now a legal issue rather than a technological one. They propose a standard framework with argumentative schemes to ensure proper reporting and explanation throughout the legal process, aiding investigators and prosecutors while safeguarding suspects' rights. The schemes help articulate heuristics, strengths, weaknesses, and critical questions to assess the strength of the argument, improving comprehensibility and facilitating verification in court proceedings. Click here for more.

US CFTC issues letter on digital asset derivatives, clearing compliance in 3 areas

The US Commodity Futures Trading Commission (CFTC) has issued a staff advisory letter to derivatives clearing organizations (DCOs) and DCO applicants, reminding them about the risks associated with expanding their activities, particularly in relation to digital assets. The CFTC's Division of Clearing and Risk (DCR) highlighted the importance of compliance in areas such as system safeguards, conflicts of interest, and physical deliveries. The letter emphasized the need for DCOs to actively identify and mitigate new and evolving risks. The concerns raised in the letter align with the SEC's plans to propose a new rule impacting crypto custodians. Bitnomial and LedgerX are among the DCOs mentioned in relation to the advisory letter. Click here for more.

Crypto exchange Bybit exits Canada, citing ‘recent regulatory development’

Cryptocurrency exchange Bybit has announced that it will temporarily pause its products and services for residents and nationals of Canada due to recent regulatory developments. Starting May 31, Bybit will not accept new account opening applications from Canadians, and existing users will have until July 31 to make deposits and increase their positions before the services are phased out. Bybit did not provide specific reasons for the market exit but mentioned the Ontario Securities Commission's penalties issued against the exchange in 2022 and the introduction of mandatory Know Your Customer requirements in May 2023. Bybit aims to provide a safer trading experience while complying with necessary safeguards. This decision comes as Bybit expands into new markets, including receiving "in-principle" approval from regulators in Kazakhstan. Other crypto firms, such as dYdX and Binance, have also announced their withdrawal from the Canadian market due to regulatory concerns. Click here for more.

Some SBF charges will be dropped if Bahamas objects, US prosecutors say

United States prosecutors have stated that they will drop some charges against former FTX CEO Sam Bankman-Fried if the Bahamas government objects to them, according to a filing in the U.S. District Court for the Southern District of New York. Bankman-Fried's defense had argued that certain charges, including ones related to bribing Chinese officials and violating campaign finance laws, were not included in the original indictment and should be dismissed based on the extradition treaty between the U.S. and the Bahamas. Prosecutors argue that the treaty does not prevent additional charges after extradition with the consent of the extraditing country. They are seeking a specialty waiver from the Bahamas to proceed with three of the objected charges, and if the waiver is not granted, those charges will not be pursued. A hearing on the motion to dismiss is scheduled for June 15. Bankman-Fried is the founder of FTX, which faced a liquidity crisis and bankruptcy, and he claims the collapse was due to management mistakes rather than fraud. Click here for more.

SEC settles case against Wahi brothers for Coinbase insider trading

Former Coinbase product manager Ishan Wahi and his brother Nikhil Wahi have agreed to settle charges of insider trading brought against them by the U.S. Securities and Exchange Commission (SEC). The SEC accused them of using knowledge of upcoming listings on Coinbase to make trades before the listings occurred. The SEC filed a motion for final judgment and is seeking the disgorgement of ill-gotten gains with interest. Ishan Wahi was sentenced to 24 months in prison, and Nikhil Wahi was sentenced to 10 months earlier this year. The settlement is subject to court approval. The case sparked controversy over the classification of tokens and implications for the broader industry. Click here for more.

Binance considers allowing traders to secure collateral at banks

Cryptocurrency exchange Binance is reportedly in discussions with institutional clients to allow them to keep their trading collateral at a bank instead of on the platform, according to anonymous sources. This move is aimed at addressing concerns over counterparty risk and increasing security measures for institutional traders following the collapse of FTX last year. Binance is said to be exploring partnerships with banks such as FlowBank and Bank Frick, where client funds would be secured through a tri-party agreement. Binance would provide stablecoins as collateral for margin trading, and client funds deposited with the bank could be invested in money market funds. The proposal is still under discussion and subject to potential modifications. Binance CEO Changpeng Zhao (CZ) has acknowledged the idea of buying a bank but highlighted the complexities and compliance requirements involved. Click here for more.

Tether moves into Bitcoin mining in Uruguay

Tether, the stablecoin issuer, has revealed its plans to launch Bitcoin mining operations in Uruguay. The company intends to collaborate with a local licensed company and invest in the country's renewable energy production. Tether aims to utilize sustainable energy sources for Bitcoin mining and has highlighted Uruguay's capability to generate a significant portion of its electricity from renewables. The company also mentioned its plans for expansion into South Africa and Brazil. This mining venture follows Tether's recent announcement to allocate a portion of its profits to Bitcoin purchases, as it currently holds approximately $1.5 billion worth of Bitcoin in its reserves. Click here for more.

AML rules for digital assets to come into effect in UAE

The Central Bank of the United Arab Emirates (CBUAE) has introduced new rules requiring licensed financial institutions (LFIs) to verify the identities of all customers. These rules will take effect by the end of June. The CBUAE has issued guidance for LFIs on the risks associated with virtual assets and virtual asset service providers (VASPs). The guidance specifies anti-money laundering and combating the financing of terrorism rules for banking institutions engaging with cryptocurrencies in the UAE, in line with global standards set by the Financial Action Task Force. LFIs, which include banks, finance companies, payment service providers, and insurance companies, must request non-objection from the central bank to open accounts for each VASP on a case-by-case basis. LFIs are also required to understand the nature of the customer's business and monitor volumes of crypto transactions with VASPs from high-risk jurisdictions. Additionally, the CBUAE has met with the Hong Kong Monetary Authority to discuss cooperation on digital asset regulations and joint fintech development initiatives. Click here for more.

CNHC stablecoin issuer detained by Chinese police

Chinese police have reportedly detained employees of Trust Reserve, the issuer of the Chinese yuan-pegged stablecoin CNH Coin (CNHC). The employees have been out of reach since May 29, and some of their family members have been notified about the detentions. Trust Reserve's office in Shanghai has been sealed with a notice of "Judicial seizure." Trust Reserve, formerly known as CNHC Group, also issues the Hong Kong dollar-pegged stablecoin HKD Coin (HKDC). The reason for the detentions is unclear at this time. Trust Reserve had secured $10 million in funding in March 2023 from investors such as KuCoin Ventures and Circle Ventures. Trust Reserve and its representatives have not provided any comments on the situation so far. Click here for more.

Indian banks asked ‘to prepare for the future’ with AI and blockchain

Deputy Governor Mahesh Kumar Jain of the Reserve Bank of India (RBI) has recommended that all banks in the country adopt artificial intelligence (AI) and blockchain technology to ensure sustainable growth and stability. Speaking at a conference for Indian bank directors, Jain emphasized the importance of effective corporate governance and technological adoption in addressing future risks such as evolving customer expectations, technological disruptions, and cybersecurity threats. He advised banks to focus on digital transformation, enhancing customer experience, investing in cybersecurity measures, and adopting innovative technologies like AI and blockchain. This recommendation aligns with India's recent launch of its central bank digital currency and its focus on utilizing technology for various sectors. Additionally, Pakistan has also announced its plan to train one million IT graduates on AI by 2027 for several use cases, including weather prediction, agriculture optimization, and healthcare transformation. Click here for more.

XDC Network gets Japanese foothold via partnership with SBI subsidiary

The XDC Network, previously known as XinFin, has expanded its presence in the Japanese market through a partnership with SBI VC Trade, a cryptocurrency exchange subsidiary of SBI Group. XDC Network's token will be added to the exchange, providing customers with access to its unique value proposition in the trade finance market. The XDC Network gained popularity as one of the top altcoin gainers in March 2023, offering support for smart contracts, protocols, and cross-chain token transfers. The network also complies with the ISO-20022 message standard for seamless data interchange between financial institutions. Additionally, the XDC Network recently decentralized its governance through a decentralized autonomous organization, aiming to enhance transparency, traceability, and cost reduction in the Japanese market. SBI Group is actively increasing its presence in the crypto market, having received a license to operate in Singapore and facilitating the offering of over-the-counter crypto derivatives products through its investee, Clear Markets. Click here for more.

Binance Prohibits Trading of Privacy Coins in France

Binance, one of the world's largest cryptocurrency exchanges, has disabled trading of privacy coins for users in France, Poland, and Spain due to regulatory concerns. The decision came in response to local regulatory requirements, and affected privacy coins such as DCR, DASH, ZEC, ZEN, PIVX, NAV, SCRT, XVG, FIRO, BEAM, XMR, and MOB. Privacy coins have faced scrutiny from regulators due to their ability to hide transaction details and wallet balances, raising concerns about illicit activities. Binance aims to cooperate with French regulators as it considers Paris a European base and has obtained a Digital Assets Service Provider license in France. Users in Poland and Spain have also reported receiving similar emails, suggesting it may be an EU-wide issue. Binance has previously obtained regulatory approvals in Poland and registered as a Virtual Assets Service Provider in Spain. Click here for more.

Multichain Can't Find Its CEO as Company Loses Access to Its Servers

Multichain, a blockchain bridge facilitating token exchange across multiple networks, is facing a series of problems. Rumors emerged about the arrest of Multichain executives by Chinese authorities, and although not confirmed, Binance suspended certain token deposits in response. It is rumored that law enforcement officials have taken control of a $1.6 billion wallet belonging to the company. This week, Multichain announced multiple issues at the protocol level, with difficulties accessing key servers and experiencing problems with a network of nodes called Router5. Several blockchains, including Keychain, PublicMint, and Dyno Chain, were affected. Multichain has requested partners to stop calling smart contracts until they regain access to the protocol's servers. Despite the troubles, Multichain's native token, MULTI, has not been significantly impacted in the past 24 hours. Click here for more.

PayPal-Backed Crypto Wallet Magic Aims to Be 'Ubiquitous Solution'

Magic, a Web3 wallet service provider, has raised $52 million in a funding round led by PayPal Ventures. The round included six total investors, including Volt Capital, Synchrony Ventures, Northzone, Kx Technology Fund, and Cherubic Ventures. Magic aims to simplify Web3 wallets through its software development kit (SDK), offering a safe and simple solution for mainstream adoption. The company plans to use the funds to build best-in-class products, expand its enterprise offerings, and unlock more use cases. Magic's CEO, Sean Li, expressed the company's goal of becoming the ubiquitous solution for Web3 adoption. The funding round indicates optimism for blockchain projects despite the ongoing bear market in the cryptocurrency industry. Click here for more.

Binance Is 'Reevaluating' Headcount as Bitcoin Bear Market Drags On

Binance, the world's largest cryptocurrency exchange, has stated that it is "reevaluating" its headcount, but has not confirmed whether it is laying off employees. The company mentioned the need to focus on talent density and evaluate whether it has the right expertise in critical roles. Binance emphasized that it will be seeking to fill hundreds of open positions but did not provide further details. Rumors of staff layoffs circulated on Twitter, with journalist Colin Wu suggesting that 20% of employees may be laid off next month. Binance's Chief Communications Officer denied the 20% figure as a cost-cutting measure. The company is currently facing investigations from multiple US regulators and recently faced allegations of commingling customer funds, which it denies. Click here for more.

Original H.R. Giger 'Alien' Statue to Be Sold as NFTs

Particle, a digital art platform, is offering collectors the opportunity to own a fraction of H.R. Giger's iconic sculpture "Necronom/Alien III, 2005," which depicts the famous xenomorph from the Alien film franchise. The sculpture is edition #1 of a collection of six and is valued at over $240,000. Particle will sell digital "particles" of the sculpture as NFTs, representing a 1/500 stake in the artwork, for $1,000 each starting on June 16. Holders of the NFT particles will have the ability to vote on selling the physical sculpture if an offer is received. The sculpture will be showcased at various exhibitions before being sold. Particle previously tokenized Banksy's "Love is in the Air" painting and is offering discounted rates to owners of its particles for the Alien sculpture. Click here for more.

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 Ntolgkov