Cryptocurrency

Although cryptocurrencies like Bitcoin’s decentralized and pseudonymous structure have some benefits, they also create major obstacles for recovering stolen funds. This article will delve into the various methods and potential avenues for recovering stolen Bitcoin and explore the important factors to consider in the process.Continue Reading on Coin Telegraph More

The Senate Judiciary Privacy, Technology, & the Law Subcommittee session represented Altman’s first official appearance before Congress, giving senators the opportunity to question the OpenAI CEO concerning his company’s views on regulation. Continue Reading on Coin Telegraph More

The Federal Reserve Bank of Chicago (Chicago Fed) has released a letter combining the major crypto runs that happened in 2022. The bank pointed out the interesting background, data, and when these firms filed for bankruptcy. The letter takes users through Celsius, Voyager Digital, BlockFi, Genesis, and FTX.The Chicago Fed mentioned that due to massive user withdrawals and investment losses, several crypto-asset platforms experienced a significant decline in 2022. These platforms provided a range of cryptocurrency-related products and services, such as custody, trading, and high-yield investments.However, the Chicago Fed mentioned that since clients could withdraw money whenever they wanted while the platforms used it for speculative and hazardous investments, their business models were open to risk. A significant incident involving clients withdrawing a quarter of their money in a single day occurred on the FTX platform.Customers on these platforms were particularly attracted to high-yield investment items. Clients looking for lucrative returns were drawn to them because they promised guaranteed interest rates that were higher than those offered by conventional investment choices.The main investment options included stablecoins and non-stablecoin crypto-assets, with interest rates ranging from 7.4% to 9%. Even higher interest rates than usual were offered by some platforms on a few of the lesser-known cryptoassets they marketed.The examination of bankruptcy files revealed information about the withdrawals of customer money from other platforms. Among the main causes of crypto runs were the failure of Three Arrows Capital (3AC) and the collapse of the TerraUSD stablecoin.Customers quickly withdrew their money in order to prevent possible losses. The platforms’ exposure to 3AC, which had lent the hedge fund billions of dollars, was a significant source of contagion. Massive customer outflows following FTX’s bankruptcy in November 2022 aggravated these platforms’ liquidity issues.Data from the Chicago Fed shows that there have been $1.4 billion and $0.58 billion in withdrawals from Celsius between May 9 and June 12, 2022. The highest withdrawals were witnessed by FTX from November 6–11, 2022, with over $7.81 billion.Regulatory measures are urgently needed, as evidenced by the important occurrence of the collapse of crypto-asset platforms in 2022.Talking about regulatory scrutiny, the Chicago fed stated:A volatile atmosphere vulnerable to runs and financial crises was produced by the lack of deposit insurance and the allure of high-yield investments. To protect investors and preserve the stability of the crypto-asset market, policymakers must address these issues.The post Federal Reserve Bank of Chicago Breaks Down Crypto Runs of 2022 appeared first on Coin Edition.See original on CoinEdition More

Cryptoasset companies are calling for a globally-coordinated approach to give certainty to the sector as they face a “fire hose” of differing approaches. The European Union on Tuesday approved a first set of comprehensive rules, a step firms said would attract them to set up shop in the bloc.”Once finalised the recommendations will deliver a first globally coordinated set of rules for crypto-assets,” Jean-Paul Servais, chair of global securities regulatory body IOSCO told an event held by the Managed Funds Association in Paris.IOSCO members, such as the U.S. Securities and Exchange Commission, Japan’s Financial Services Authority and regulators in Britain, Germany and France commit to applying the body’s recommendations.The collapse of large crypto players, such as FTX, and recent market events have supercharged “my determination to deliver on this agenda”, Servais said. “As I have repeatedly said, the IOSCO recommendations will clarify the extent to which existing principles and guidance could apply to cross border virtual assets and services providers,” Servais said.Servais, who also chairs Belgium’s securities watchdog, also said that private finance will be a new priority for IOSCO’s work this year.”The renewed regulatory interest in this area comes from the unprecedented growth of private finance, its increasing role in funding the real economy, and its increasing interconnectivity with regulated public markets,” Servais said. More

The report identified that withdrawals by crypto whales and large account holders on centralized exchanges, including some key institutional accounts, created a liquidity crisis that eventually led to the bank run.Continue Reading on Coin Telegraph More

On May 12, BlockFi outlined its Chapter 11 reorganization plan in a filing with the United States Bankruptcy Court in Trenton, New Jersey. The firm said that selling BlockFi might not generate enough value for creditors, as it owes nearly $1.3 billion to its top 50 creditors.Continue Reading on Coin Telegraph More

Finance ministers from 27 member states voted in favor of the MiCA bill, and amendments to several regulations and directives relating to the new legislation. Continue Reading on Coin Telegraph More

(Reuters) – European Union states on Tuesday gave the final nod to the world’s first comprehensive set of rules to regulate cryptoassets on Tuesday, piling pressure on countries such as Britain and the United States to play catch up.An EU finance minister meeting in Brussels approved rules that were thrashed out with the European Parliament, which gave its approval in April. The rules are expected to be rolled out from 2024.Regulating crypto has become more urgent for regulators after the collapse of crypto exchange FTX.”Recent events have confirmed the urgent need for imposing rules which will better protect Europeans who have invested in these assets, and prevent the misuse of crypto industry for the purposes of money laundering and financing of terrorism,” saidElisabeth Svantesson, finance minister for Sweden, which holds the EU presidency.The rules require firms that want to issue, trade and safeguard cryptoassets, tokenised assets and stablecoins in the 27 country bloc to obtain a licence.Ministers took steps to combat tax evasion and the use of cryptoasset transfers for money laundering by making transactions easier to trace.They agreed on a requirement that from January 2026 service providers obtain the name of senders and beneficiaries in cryptoassets, regardless of the amount being transferred.There was also agreement on amending rules on how member countries cooperate with each other in taxation to cover transactions in crypto-assets, and on exchanging information on advance tax rulings for the wealthiest individuals.Crypto firms say they want certainty in regulation, putting pressure on countries to copy the EU rules, and on regulators to come up with global norms for a cross-border activity.Britain has outlined a phased approach, starting with stablecoins and broadening out to un-backed cryptoassets later on, but there is no firm timetable.The United States has focused on using existing securities rules for enforcement action in the sector while it decides on whether to introduce bespoke new rules and who would apply them.Hester Peirce, one of the commissioners at the U.S. derivatives regulator CFTC, said last week that a number of federal and state authorities are trying to figure out what oversight role they could play in the crypto sector.”We are wandering in the desert a bit,” Peirce told a conference. More