Bitcoin News and Finance: What You Need to Know

South Africa’s Intergovernmental Fintech Working Group (IFWG) has a released new position paper that calls for the regulation of the country’s cryptocurrency ecosystem. In the document, the IFWG, which is a creation of the South Africa Reserve Bank (SARB), recommends “a staged approach to bring crypto-assets within the regulatory remit through the regulation of crypto asset service providers (CASPs).” Crypto Service Providers to Adhere to AML/CFT Requirements The 49-page document also “sets out 25 recommendations for a revised South African policy, legal and regulatory position on crypto assets and related activities.” According to the IFWG, some of these recommendations “are already underway and in the process of being implemented while some will take much longer to implement.” Meanwhile, in the position paper, the IFWG’s recommendations are grouped into three overarching categories. Concerning the first one, the working group recommends CASP adherence to the legislative requirem...

India may be regulating crypto as an asset class under the purview of the Securities and Exchange Board of India (SEBI). In addition, a crypto bill is likely to be introduced during the Monsoon session of parliament, local media reported. Indian Government Reportedly Considers Regulating Crypto as an Asset Class The Indian government has yet to introduce a cryptocurrency bill. An existing bill seeks to ban cryptocurrencies. However, there have been reports of the government re-evaluating the recommendations within the bill. The New Indian Express reported Friday that top sources tracking the crypto industry told it that “the government has moved away from its earlier hostile stance towards virtual currencies and will most likely classify bitcoin as an asset class in India soon.” The publication further conveyed: Market regulator Securities and Exchange Board of India (SEBI) will oversee regulations for the cryptocurrency sector after bitcoin’s classification as an asset class. ...

JPMorgan struggles to “see any tangible economic benefits associated with adopting bitcoin as a second form of legal tender.” Commenting on El Salvador’s bitcoinization, JPMorgan did not rule out that the country’s move to make the cryptocurrency legal tender may be “the beginning of a broader trend among similarly situated, smaller nations.” JPMorgan’s Opinion on Bitcoinization in El Salvador Investment bank JPMorgan released a report Friday titled “The Bitcoinization of El Salvador.” The country’s congress passed the bill making bitcoin legal tender on Wednesday, becoming the first nation to do so. JPMorgan described: “El Salvador recently passed legislation making bitcoin legal tender, and will attempt to implement a bimonetary system with the U.S. dollar as the primary unit of account but mandating bitcoin be accepted as payment for all economic activity.” The investment bank added that “As with dollarization in the early-2000s, this move does not seem motivated by stability...

The U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have warned investors of the risks of investing in funds with exposure to bitcoin futures. The SEC published an investor alert on funds trading in bitcoin futures Thursday. The alert comes from the SEC’s Office of Investor Education and Advocacy (OIEA) and the CFTC’s Office of Customer Education and Outreach (OCEO). They pointed out that some funds may engage in the trading of bitcoin futures contracts as a way to gain exposure to bitcoin, emphasizing that the cryptocurrency “is a highly speculative investment.” The document cautions: Investors should consider the volatility of bitcoin and the bitcoin futures market, as well as the lack of regulation and potential for fraud or manipulation in the underlying bitcoin market. They urge investors thinking about investing in a fund that buys or sells bitcoin futures “to weigh carefully the potential risks and benefits of the inves...

The popular Twitter account and creator of the bitcoin stock-to-flow (S2F) price model explained that “$288K [is] still in play.” Meanwhile, data from the exchange Deribit shows there’s 425 bitcoin call options with a strike price of $200K set for December 31, 2021. Plan B Says: ‘$288K Still in Play’ On June 12, 2021, while bitcoin ( BTC ) prices have been hovering just above the $35K zone, the popular Twitter account Plan B (@100trillionusd) told his 553,000 followers that six-figure bitcoin prices are still intact. Plan B is a pseudonym and he published the stock-to-flow (S2F) price model in March 2019. He also updated the S2F model to another version called the stock-to-flow cross-asset (S2FX) model. Twelve days ago, Bitcoin.com News reported on how Plan B said his S2FX model was “intact.” Plan B has always shown confidence in his model but when he last tweeted about the S2FX being intact, he invoked a poll on Twitter. The pseudonym asked his followers if they thought the S2F...

The ‘Speedy Trial’ lock-in period for the Bitcoin network upgrade Taproot is now complete. Data from taproot.watch details the lock-in has been achieved and it was locked in at block height 687,285 and mined by the mining pool Slushpool. Bitcoin Taproot Lock-in Complete at Block Height 687,285 Taproot is coming this November as the web portal taproot.watch indicates that the lock-in period of signaling has finished. “This period has reached 1815 Taproot signaling blocks, which is required for lock-in.” The Taproot upgrade is considered one of the largest upgrades in four years since the activation of Segregated Witness (Segwit) back in 2017. Poolin executive Alejandro De La Torre tweeted about the milestone after the signaling finished. “Taproot has locked-in,” De La Torre said . “Excellent work miners. Congratulations bitcoiners. Bitcoin protocol upgrade now set to activate in November. When activated in November, Taproot addresses will be able to leverage Schnorr signatur...

The Federal Bureau Investigation (FBI) is under fire for an alleged unconstitutional seizure of 800 safety deposit boxes in Beverly Hills. According to reports, the FBI confiscated $86 million in cash, jewelry, and thousands of gold and silver bars. Box holders and their lawyers are calling out the federal law enforcement agency for lacking sufficient proof that the boxes held evidence of being tied to specific crimes. Abuse of Power? Lawyers Believe the FBI Seized People’s Life Savings in an Unconstitutional Manner The FBI has seized over 800 safety deposit boxes that were located in Beverly Hills and held at the U.S. Private Vaults store. Reports note that the FBI got an order from a California magistrate to seize the store’s “business equipment” that ostensibly was tied to a money laundering case. The order barred the searches of the safety deposit box contents, explains the LA Times reporter Michael Finnegan. “This warrant does not authorize a criminal search or seizure of the...

The Basel Committee on Banking Supervision has proposed dividing crypto assets into two groups and regulating them based on their market, liquidity, credit, and operational risks to banks. Cryptocurrencies, such as bitcoin, will be subject to “a new conservative prudential treatment.” Crypto Regulation Proposed by Basel Committee on Banking Supervision The Basel Committee has proposed regulating crypto assets based on their risks to banks. The Bank of International Settlement (BIS) published the committee’s public consultation on “preliminary proposals for the prudential treatment of banks’ cryptoasset exposures” Thursday. The BIS explained that banks’ exposures to cryptocurrencies are currently limited. However, it added: Continued growth and innovation in crypto assets and related services, coupled with the heightened interest of some banks, could increase global financial stability concerns and risks to the banking system in the absence of a specified prudential treatment. ...

The Texas Department of Banking has announced that state-chartered banks can provide cryptocurrency custody services. “The Texas Department of Banking believes that the authority to provide these services with respect to virtual currencies already exists,” the banking authority said. Texas State-Chartered Banks Officially Authorized to Offer Crypto Custody Services The Texas Department of Banking issued a notice to the banking industry Thursday, stating: Texas state-chartered banks may provide customers with virtual currency custody services, so long as the bank has adequate protocols in place to effectively manage the risks and comply with applicable law. “While custody and safekeeping of virtual currencies will necessarily differ from that associated with more traditional assets, the Texas Department of Banking believes that the authority to provide these services with respect to virtual currencies already exists pursuant to Texas Finance Code § 32.001,” the notice clarifies....

The Thai Securities and Exchange Commission (SEC) has enacted new rules for cryptocurrency exchanges operating in the country. Certain types of cryptocurrencies, including meme coins, fan coins, and non-fungible tokens (NFTs), are prohibited to trade on crypto exchanges. Thailand Sets New Rules for Crypto Exchanges, Banning Certain Types of Cryptocurrencies The Thai Securities and Exchange Commission (SEC) announced Friday that its board of directors has approved new rules governing cryptocurrency exchanges. Secretary-General Ruenvadee Suwanmongkol stated that the board meeting held on June 9 had passed a resolution approving the SEC Notification No. Kor Thor. 18/2564, which sets forth the rules. Digital asset exchanges are prohibited from “providing services related to utility tokens or cryptocurrencies that have any of the following characteristics,” the SEC notice details: (1) Meme token: having no clear objective or substance or underlying, and whose price running on social m...

India’s Directorate of Enforcement (ED) has reportedly sent a notice to Wazirx, one of the largest cryptocurrency exchanges in India, under the Foreign Exchange Management Act, 1999, (FEMA). The investigation was initiated “on the basis of the ongoing money-laundering investigation into Chinese owned illegal online betting applications,” the ED detailed. ED’s FEMA Investigation of Wazirx India’s Directorate of Enforcement (ED) reportedly said Friday that it has issued a Show Cause Notice (SCN) to Wazirx, CEO Nischal Shetty, and co-founder Sameer Hanuman Mhatre. Wazirx is one of the largest crypto exchanges in the country. The ED is India’s law enforcement and economic intelligence agency. The notice was issued under the “Foreign Exchange Management Act, 1999, (FEMA) for transactions involving crypto-currencies worth Rs 2,790.74 crore [$381.93 million],” the ED wrote, adding: ED initiated FEMA investigation on the basis of the ongoing money laundering investigation into Chinese ow...

Kraken, the US-based exchange, is weighing in on whether to use an IPO or a direct listing to go public. Kraken’s CEO Jesse Powell stated that after Coinbase’s performance, they were considering other options for going public next year. The company will be the second crypto exchange to go public in the US if things happen as projected. Kraken Considers IPO vs Direct Listing for Going Public Kraken, one of the leading US-based crypto exchanges, is having doubts about how to go public. Its CEO, Jesse Powell, had indicated earlier this year they would use the direct listing approach to launch next year. This stance mimics the direction Coinbase took. But now he is not so sure about that, due to the lackluster performance Coinbase has had up until now. Powell declared in an interview with Fortune: An IPO is looking a little more attractive in light of the direct listing’s performance. I would say we’re looking at it more seriously now having the benefit of seeing how the direct publi...