#cryptocurrencies

The Bank for International Settlements (BIS) has published new findings. These suggest that, far from offering economic relief, cryptocurrencies might be escalating financial vulnerabilities in emerging economies. Many are tempted to view the digital assets as an alternative to the typical monetary systems or a stand-in for local currencies. However, the study's authors caution that this perspective might elevate the financial risks these nations face. While the report does highlight the transformative potential of cryptocurrencies, the BIS insists that effective regulation is vital to steer their advantages in a beneficial direction.

Coin Center, a crypto-focused policy nonprofit, has reached out to Congress members, urging for more transparent crypto tax regulations. In a letter to Senate Finance Committee's Ron Wyden and Mike Crapo, Coin Center emphasized the need for guidance on cryptocurrency taxation, especially concerning capital gains. They suggested a threshold for gains below which no tax would be due. Coin Center also stressed the importance of a "de minimis" exemption, without which, every small crypto transaction could become a taxable event. This exemption would simplify the use of cryptocurrencies for daily payments, especially for micropayments.

In a three-month span beginning in March 2023, the FBI shifted gears in their investigations involving digital currencies. Those efforts have led to the confiscation of an estimated $1.7 million in cryptocurrencies such as BTC, ETH, USDT, XMR, and DAI. Some of these were traced back to Binance-affiliated wallets. Notably, the Eastern District of Virginia saw the most substantial single seizure of 428.5 ETH.

"Simply put, no. Bitcoin raises concerns among both local and European regulators. Our primary business demands our focus, and it wouldn't be rational to jeopardize it by engaging with a high-risk asset like Bitcoin," says Mykhailo Rohalskyi. He believes that cryptocurrency lacks advantages over fiat money, apart from the potential to sidestep local currency regulations. Speaking on Ukraine's crypto landscape, the Monobank co-founder added: "I'm skeptical about the widespread acceptance of cryptocurrencies in our country. The approach of the National Bank of Ukraine to crypto regulation remains uncertain."

Tether CTO: "The launch of PayPal stablecoin doesn’t impact Tether as the firm does not serve U.S. users. If PYUSD launches in international markets, it could have a positive impact on the crypto industry and potentially erode revenues for payment giants like MasterCard and Visa." Co-founder of zkLend: "PayPal will indeed bolster the perception and acceptance of cryptocurrencies, but it can lead to a diminished market share for decentralized stablecoins, threatening the very principles of decentralization that underpin the crypto space." Analysts at JPMorgan: "This could boost Ethereum activity and enhance Ethereum’s network utility as a stablecoin/DeFi platform. PYUSD could fill the void left by the $20 billion shrinkage of Binance's BUSD stablecoin, which was forced to shut down by U.S. regulators earlier this year." Co-founder of Sei Network: "The gas fees of using PYUSD will be ridiculous, which will disincentivize its usage. To help make the user experience better, PayPal will either need to subsidize transaction costs or will need to help support PYUSD on other networks with cheaper gas fees." It's worth noting that PayPal currently serves 435 million customers globally.

Both Coinbase and the SEC have denied reports claiming that the regulator requested the exchange to halt trading in all cryptocurrencies other than Bitcoin. A Coinbase spokesperson has clarified to Blockworks that the supposed recommendation was an inaccurate representation of the facts. The interview published by the Financial Times earlier lacks important context regarding the conversations between Coinbase and the SEC.

American Senators Elizabeth Warren, Roger Marshall, Joe Manchin, and Lindsey Graham have once again introduced a proposal to tackle money laundering through cryptocurrencies. The Institute of Banking Policy wasted no time and promptly voiced its support for this bipartisan legislation, which seeks to tighten regulations on digital assets to ensure they fully comply with existing financial system rules

PayPal suspends crypto buying services in the UK Starting October 1, 2023, PayPal will no longer support cryptocurrency purchases for it's users from the United Kingdom. This action is consistent with the company's obligation to comply with local financial legislation. While the measure is planned to last until the start of 2024, PayPal remains hopeful about restoring the service. During the suspension, users are free to either hold their existing cryptocurrencies without any associated fees or sell them if they choose.

The study also revealed that 1 in 3 New York residents views cryptocurrencies as a potential contributor to a more equitable financial system and a valuable investment for the future. The report highlighted the growing adoption of cryptocurrencies within New York, making the state a hub for diverse blockchain initiatives. It pointed out the existence of 692 blockchain organizations and over 800 founders located in the state of New York.

Ukraine's Security Service has successfully dismantled a significant underground network that was carrying out unauthorized financial transfers between Russia and Ukraine, making use of banned Russian payment systems and digital currencies. Active in four regions, these secretive hubs were handling over $1 million each month. Platforms like Yumoney, Webmoney, and various cryptocurrencies were employed to change Russian rubles into digital currencies and subsequently into Ukrainian hryvnia. The primary customer base was made up of hackers and companies participating in under-the-table transactions with Russia.

According to Coinbase CEO Brian Armstrong, the SEC requested the exchange to halt trading in all cryptocurrencies except bitcoin before filing a lawsuit against the platform in June. “We really didn’t have a choice at that point. Delisting every asset other than bitcoin, which, by the way, is not what the law says, would have essentially meant the end of the crypto industry in the US,” said Armstrong.

The body of Spanish crypto influencer Fernando Perez Algaba was tragically discovered in Argentina. He had been declared missing since last Tuesday. On July 23, children in Ingeniero Budge found a suitcase containing his amputated limbs. The police subsequently found his torso on the next day, and his head was located in a backpack on July 25. The motive for murder was related to his debts. A note left by Algaba’s explained that he had lost a significant amount of money invested in cryptocurrencies.