Bitcoin News and Finance: What You Need to Know

U.S. authorities have warned about the rising popularity of a crypto scam known as “pig butchering.” The Federal Bureau of Investigation (FBI) explained: “The fraud is named for the way scammers feed their victims with promises of romance and riches before cutting them off and taking all their money.” ‘Pig Butchering’ Crypto Scam on the Rise U.S. authorities have been warning about a type of cryptocurrency scam called “pig butchering” that has been growing in popularity at an alarming rate. Lakewood Police Public Information Officer John Romero detailed: The term pig butchering basically comes from a farmer fattening up the pig before they slaughter it. And in this case, it’s the suspect who was fattening up their victim. The police officer explained that the pig butchering scam usually starts on social media or dating sites like Linkedin and Tinder, where the scammer finds and convinces the victim to hand over some funds. The scammer then puts the money into a crypto account w...

The Federal Deposit Insurance Corporation (FDIC) has sent a cease and desist letter to five companies, including crypto exchange FTX US. CEO Sam Bankman-Fried explained that FTX does not have FDIC insurance, stating: “We never meant otherwise, and apologize if anyone misinterpreted it … to be clear FTX US isn’t FDIC insured.” FDIC Orders 5 Firms to Cease and Desist The Federal Deposit Insurance Corporation (FDIC) issued crypto-related cease and desist orders to five companies Friday. The agency regulates and insures the deposits of FDIC-insured community banks and other financial institutions. The letters demand that the five companies and their officers “cease and desist from making false and misleading statements about FDIC deposit insurance.” They must also “take immediate corrective action to address these false or misleading statements.” The five companies are FTX US, Cryptonews.com, Cryptosec.info, Smartasset.com, and FDICCrypto.com. The FDIC detailed: Each of these compa...

SBI Holdings, the largest online brokerage in Japan, is shutting down its crypto mining business in the Russian Federation. Amid mounting uncertainty over the future of such investments due to the ongoing conflict in Ukraine, as well as decreased mining profits, the financial firm said it plans to sell its equipment and withdraw. Japan’s SBI Broker to Complete Withdrawal From Russian Mining Industry Access to low-cost power and suitable climatic conditions made Russia an attractive destination for cryptocurrency miners when China cracked down on the industry in May of 2021. However, sanctions imposed over Moscow’s decision to attack Ukraine this year have hit bitcoin mining, among other Russian industries. One of the largest mining data-center operators with significant presence in Russia, Switzerland-based Bitriver, was targeted by the U.S. Treasury Department this spring. Then the U.S. company Compass Mining sought to liquidate $30 million in mining hardware installed in Siberia...

Following three consecutive days of declines, shiba inu rebounded on Saturday, as the meme coin appears to have found a support point. Cosmos was also higher, in what has mostly been a bearish start to the weekend. As of writing, the global crypto market cap is down 1.31%. Shiba Inu (SHIB) Shiba inu (SHIB) was back in the green on Saturday, as the token rallied following three straight days of declines. The world’s twelfth-largest cryptocurrency rose to an intraday peak of $0.00001397 to start the weekend. This came less than a day after prices of the meme coin were at a low of $0.00001270, which was below a key support point. Looking at the chart, this price floor was the $0.00001290 mark, however bulls resisted any further declines, pushing SHIB/USD back into the $0.00001300 region. As of writing, the 14-day relative strength index (RSI) is tracking at 52.13, which is marginally above a floor of 51.44. Should the index continue to climb, and move towards a ceiling of 58, then...

This week’s sell-off in cryptocurrency markets worsened on Saturday, with bitcoin falling below $21,000 for the first time in nearly a month. Ethereum also continued its descent in today’s session, as the price of the token dropped under the $1,700 level to start the weekend. Bitcoin Bitcoin ( BTC ) continued to reside in the red to start the weekend, as prices of the world’s largest cryptocurrency fell below $22,000. Saturday saw BTC /USD fall to an intraday low of $20,868.85, with the token edging closer to a key support level. This floor has been at the $20,800 point, which was last hit on July 16, when prices were trading below $20,500. As a result of these declines, the 14-day relative strength index (RSI) dropped to a low of 32.97, which is its lowest point since July 12. Bitcoin prices have since rebounded, and as of writing are back above $21,000. BTC is currently trading at $21,191.27. Taking a closer look at the chart, it can be seen that the 10-day (red) moving aver...

The Central Bank of Colombia is studying the launch of a digital currency, according to statements made by its manager, Leonardo Villar. The organization is evaluating the launch of this instrument as a means of unifying the different digital wallets in the country, making them interoperable and easier to use for customers. Central Bank of Colombia Studies Digital Currency Issuance Many governments in the world are preparing to launch digital currencies in order to compete with cryptocurrencies and other assets. Leonardo Villar, manager of the Central Bank of Colombia, recently announced that the organization was studying the issuance of a digital currency. During a banking convention at Cartagena, Villar explained that the functions and the convenience of such currency were being reviewed by the bank. While the officer did not offer more details about the structure or nature of the announced currency, he did reveal that one of the experiences the bank is looking closely at, is on...

Mercado Libre, a leading Latam-based e-tailer, has announced the launch of its own token, called “Mercadocoin,” for Brazilian customers. The token will be the main reward of a loyalty program on Mercado Libre’s platform and will be awarded to customers that purchase certain items linked with the token. The token will have an initial value of $0.10. Mercado Libre to Launch Mercadocoin Token to Power Loyalty Program Mercado Libre, a retailer and financial services unicorn in Latam, has announced the inclusion of cryptocurrency as a part of its royalty program. The company announced the launch of its own token, denominated mercadocoin, that will be used to power its rewards to users. The token, to be issued on top of Ethereum, will be given to users that purchase certain articles on Mercado Libre’s platform identified with the loyalty program. The program, which is already being implemented, will include Brazilian customers only, though the company aims to extend it to other countrie...

The Indian police have launched an investigation into Bitconnect and booked its founder after a bitcoin investor reported being defrauded by the global crypto “Ponzi scheme.” According to U.S. authorities, the scheme reached a market capitalization of $3.4 billion at its peak. The founder and his co-conspirators allegedly obtained about $2.4 billion from investors. Bitconnect’s Founder Wanted by Indian Police The founder of Bitconnect, one of the most famous fraudulent cryptocurrency investment schemes, is wanted by the Indian police in the city of Pune, Maharashtra, after the U.S. indicted him for defrauding investors. The Pune Police launched a probe into the multi-crore crypto scheme and booked its founder, Satish Kumbhani, after a local lawyer lodged a first information report (FIR) on Tuesday. He also named six others involved in the scheme. The lawyer stated in the FIR that he was defrauded for close to 220 bitcoins. The Indian police are now searching for the accused but no...

The South Korean financial intelligence unit is taking action against 16 foreign cryptocurrency exchanges for operating illegally in the country. “For illegal business activities of unregistered entities, maximum of 5 years of imprisonment or up to KRW 50 million of fines can be imposed,” the regulator said. 16 Foreign Crypto Exchanges Flagged by South Korean Regulator South Korea’s top financial regulator, the Financial Services Commission (FSC), announced Thursday that the country’s financial intelligence unit (KoFIU) has notified investigative authorities about the illegal business activities of 16 unregistered virtual asset service providers (VASPs). The KoFIU is South Korea’s financial intelligence unit (FIU) and the lead agency in the Asian country for anti-money laundering and countering financing of terrorism (AML/CFT) matters. The 16 entities are Kucoin, MEXC, Phemex, XT.com, Bitrue, ZB.com, Bitglobal, Coinw, Coinex, AAX, Zoomex, Poloniex, BTCEX, BTCC, Digifinex, and Pion...

The crypto community is patiently waiting for the highly anticipated Ethereum network upgrade from proof-of-work (PoW) to proof-of-stake (PoS) as The Merge is expected to happen 27 days from now. After Ethereum transitions from PoW to PoS, only two crypto assets in the top ten market cap rankings will be PoW tokens, which is a stark contrast to the top ten nine years ago. The PoS Age Begins: Proof-of-Work Crypto Assets Disappear From Top Ten Market Cap Standings This year, for the first time in crypto history, three stablecoins entered the top ten largest market cap positions. During the first week of May, Terra’s stablecoin UST made it into the top ten alongside USDT and USDC, but after UST’s depegging incident, the token fell from the top ten coin rankings. After UST’s implosion , the Binance Smart Chain-issued BUSD stablecoin joined the top coins by valuation and today, three stablecoins remain in the top ten. That wasn’t the case nine years ago, on August 18, 2013, as there ...

The latest data debrief issued by Kaiko, a provider of digital assets market data, has found that while there is retail movement in Latam regarding crypto assets, most liquidity is directed to “real world” use cases. Among these activities are remittances, stablecoin-based yield generating investment options, and also payments, with Bitso and Mercado Bitcoin being the leaders in volumes traded in the area. Latam Focuses on Crypto Differently, According to Kaiko Much has been said about the uses that Latam countries are giving to crypto assets, many mentioning these are a lifeline in the fight against inflation and devaluation. A new data report issued by Kaiko, a cryptocurrency asset market data provider, has found that a significant part of the volumes moved in the area correspond to real-world applications of crypto, rather than just in retail trading. Most of the volumes traded are concentrated in just two exchanges. Mexico-based Bitso, and Brazil-based Mercado Bitcoin. Bitso c...

According to the latest guidance note issued by the South African banking sector regulator, Prudential Authority, risk assessment does not mean financial institutions should avoid or eliminate risks via the wholesale termination of client relationships with entities such as crypto asset service providers. Instead, the regulator wants financial institutions to only consider “de-risking” when the “risk posed is too great to manage successfully.” A Threat to Financial Integrity South Africa’s main banking industry regulator, the Prudential Authority, has said some banks’ decisions to terminate relationships with crypto entities “may pose a threat to financial integrity in general.” In addition, the regulator suggested that avoiding cryptocurrency entities completely could potentially weaken banks’ risk management processes. According to a guidance note sent to financial institutions by Fundi Tshazibana, the CEO of Prudential Authority, the removal of crypto entities such as exchange...

The central bank of the Philippines, the primary regulator of the country’s crypto sector, has warned investors about engaging with unregistered and foreign crypto service providers. They “may present additional challenges on enforcing legal recourse and consumer protection and redress mechanisms for local customers, among others,” the regulator said. The Philippine Central Bank’s Crypto Warnings The central bank of the Philippines, Bangko Sentral ng Pilipinas (BSP), issued a public warning Tuesday regarding unregistered and foreign crypto service providers. In the Philippines, the central bank is the primary regulator of the crypto sector. The announcement states: The Bangko Sentral ng Pilipinas (Bangko Sentral) strongly urges the public not to deal with virtual asset service providers (VASPs) that are either unregistered or domiciled abroad. The central bank’s website shows that 19 VASPs have been registered as of June. Besides the risk from price volatility associated with ...

The European Central Bank (ECB) is working to harmonize the regulatory framework governing crypto activities and services in the EU. The regulator noted that several regulatory initiatives at the European and international levels are being finalized. ECB’s Regulatory Plan for Crypto Assets The European Central Bank (ECB) outlined its plan to harmonize the regulatory framework governing crypto activities and services in the EU Wednesday. The regulator explained that banks are increasingly considering whether to offer crypto products and services, and it is the ECB’s role to “ensure they do so safely and soundly.” The ECB described that it works closely with national regulators “to ensure a consistent approach and high standards across countries,” elaborating: There is currently no harmonized regulatory framework governing crypto-asset activities and services in the EU. “This will change with the finalization of several regulatory initiatives at [the] European and international l...

Three days before Ethereum’s transition from proof-of-work (PoW) to proof-of-stake (PoS), the world’s largest derivatives marketplace in terms of volume, CME Group, announced plans to list ethereum options. While CME’s ether options product prepares for regulatory review, the company detailed that the options contract will be measured at 50 ether per contract, using the CME CF Ether-Dollar Reference Rate. CME Group Reveals Ethereum Options Launch The Chicago Mercantile Exchange otherwise known as CME Group revealed the company’s intentions to list ethereum options contracts three days before The Merge on September 12, 2022. CME detailed that the new ether options join the firm’s bitcoin ( BTC ) options and micro-sized bitcoin and ether options contracts . “These new contracts deliver one ether futures, sized at 50 ether per contract, and based on the CME CF Ether-Dollar Reference Rate , which serves as a once-a-day reference rate of the U.S. dollar price of ether,” the derivatives...

A Russian national suspected of laundering ransomware payments in cryptocurrency on behalf of cybercriminals targeting hospitals has been extradited to the U.S. by the Netherlands. The man was allegedly involved in the criminal activity for a period of three years before his arrest in Amsterdam last November. Alleged Russian Money Launderer Handed Over to U.S. Custody by Dutch Authorities Denis Dubnikov, a 29-year-old Russian citizen, has been extradited this week from the Netherlands to the United States, where he is to face charges of money laundering in the District of Oregon, the U.S. Attorney’s Office in Portland and the U.S. Department of Justice (DOJ) announced . Dubnikov made his initial appearance in federal court on Wednesday and a five-day jury trial has been scheduled to begin on Oct. 4. In August, a federal grand jury in Portland charged him for his role in an international crypto money laundering conspiracy. According to the indictment, the Russian and his accomplice...

Power needs of cryptocurrency miners in Russia have grown significantly since 2017, with consumption of electrical energy seeing a 20-fold increase over the five-year period. In 2021, the minting of the coin with the largest market cap, bitcoin, required 1.25 gigawatts in the country. Experts say, however, that Russia has the spare capacities to satisfy much larger demand. Crypto Miners Spend as Much Power as Russian Farmers Electricity consumption in Russia’s crypto mining industry has been constantly rising since 2017, a new study has established. The positive trend led to an annual increase of at least 150%, according to specialists working for mining hardware importer Intelion Data Systems. The extraction of bitcoin ( BTC ) alone needed 1.25 gigawatts of energy in 2021, their calculations show. The volume of electricity used for the production of other major cryptocurrencies, such as ether ( ETH ) and litecoin ( LTC ), can be an additional 40-50% of BTC ’s consumption, the rese...

Meta, the social network company, has expanded the services of its flagship metaverse app, Horizon Worlds, to Spain and France. This move is part of the expansion plan of Meta to offer these services to more countries in Europe this year. While the app was available as an invite-only service in 2020, it just opened its services to the general public in December 2021 for the U.S. and Canadian markets. Meta Expands App Horizon Worlds to Spain and France Meta, the social media conglomerate, is expanding its metaverse offerings to Europe. The company recently announced the launch of one of its main metaverse apps, Horizon Worlds, in Spain and France. In a post, the company announced that all citizens over 18 years old in these countries will have the opportunity to enjoy this service using one of the VR headsets sold by the company. Horizon Worlds lets users experience a VR world in which they are represented by a configurable avatar, and can roam worlds created by other players and e...

The U.S. Federal Reserve Board has said it has released the final guidelines which are set to be used by Reserve Banks when “reviewing requests to access Federal Reserve accounts and payment services.” According to the board, the final guidelines will become effective as soon as they are published in the Federal Register. New Guidelines Aimed at Establishing a Transparent and Consistent Set of Factors for Reserve Banks The board of the U.S. Federal Reserve recently announced what it called the “final guidelines which establish a transparent, risk-based, and consistent set of factors for Reserve Banks to use in reviewing requests to access Federal Reserve accounts.” As per the bank’s statement, the latest guidelines are almost identical to the ones proposed in May 2021 and the supplemental ones which were proposed in March this year. These new guidelines will become effective once they are published in the Federal Register. The move could pave the way for fintech and crypto banks ...

U.K.-based digital bank Revolut has been authorized by Cyprus to provide cryptocurrency services to millions of customers on the Old Continent. The fintech firm says the regulatory approval will allow it to establish a European crypto hub in the island nation. Revolut to Expand Crypto Services for Europeans From Cyprus A leader in the neobank sector, Revolut, has received approval from the Cyprus Securities and Exchange Commission ( CySEC ) to operate with cryptocurrencies and other digital assets. The company plans to establish a cryptocurrency hub on the island that will allow it to offer additional services to its 17 million European customers under the EU’s upcoming regulations. CySEC’s approval comes after Revolut obtained similar authorizations in other markets, such as Spain and Singapore, the Cyprus Mail noted in a report. These licenses will enable the London-headquartered fintech to expand its sales in a number of jurisdictions. The platform will continue to serve its Bri...

Chainalysis has found that illicit crypto volumes are down this year, with total scam revenue sitting at $1.6 billion, 65% lower than where it was through the end of July last year. “Those numbers suggest that fewer people than ever are falling for cryptocurrency scams,” the blockchain data analytics firm wrote. Data Shows Illicit Crypto Volumes Are Down Blockchain data analytics firm Chainalysis published its mid-year crypto crime update titled “Illicit Activity Falls With Rest of Market, With Some Notable Exceptions” on Tuesday. The firm wrote that overall: Illicit volumes are down just 15% year over year, compared to 36% for legitimate volumes. Specifically, “Total scam revenue for 2022 currently sits at $1.6 billion, 65% lower than where it was through the end of July in 2021, and this decline appears linked to declining prices across different currencies,” Chainalysis noted. Furthermore, “the cumulative number of individual transfers to scams so far in 2022 is the lowest ...

The famous author of the best-selling book Rich Dad Poor Dad, Robert Kiyosaki, says it’s time to open his closed mind after listening to economist Harry Dent. He is now buying 2-year U.S. Treasury bonds despite repeatedly saying he does not invest in anything printed by the Federal Reserve or Wall Street. Robert Kiyosaki Influenced by Harry Dent, Buys Treasury Bonds The author of Rich Dad Poor Dad, Robert Kiyosaki, is opening his “closed mind” and buying 2-year U.S. Treasury bonds after listening to economic forecaster Harry Dent. Rich Dad Poor Dad is a 1997 book co-authored by Kiyosaki and Sharon Lechter. It has been on the New York Times Best Seller List for over six years. More than 32 million copies of the book have been sold in over 51 languages across more than 109 countries. Kiyosaki tweeted Tuesday: Opening my closed mind. I don’t invest in things Fed or Wall Street print. Time to open my mind. After listening to Harry Dent, I am buying U.S. Treasury 2-year bonds. His ...