Crypto Weekly Roundup: California Invoice On Hold, NFTs On Facebook, CoinSwitch Kuber Talks ED Research

Crypto Weekly Roundup: California Invoice On Hold, NFTs On Facebook, CoinSwitch Kuber Talks ED Research


The week brought the value of Bitcoin back below $20,000 on Saturday while Ether fell back below $1,600. Most of the cryptocurrencies and the top 50 tokens by market cap saw weekly losses as well as the sector deals with more regulatory interventions.

The week brought the value of Bitcoin back below $20,000 on Saturday while Ether fell back below $1,600. Most of the cryptocurrencies and the top 50 tokens by market cap saw weekly losses as well as the sector deals with more regulatory interventions.

California Crypto Bill Awaiting Signature

This week, crypto investors focused on California, where the Digital Financial Assets Act was passed on August 30. The law makes it mandatory for cryptocurrency exchanges and companies to be licensed by the California Department of Financial Protection and Innovation in order to operate in the state.

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The Blockchain Association, a crypto advocacy group, expressed its dismay and urged lawmakers to reject the bill, stating that “the licensing provisions are designed to install the same kind of cumbersome licensing and reporting system that has stymied the growth of the crypto industry.”

The bill stipulates that stablecoins must be licensed by the state regulator or issued by banks. This has made stablecoin issuers worried. In the view of US regulators, these companies must demonstrate sufficient reserves in US dollars against their currencies. Popular stablecoins like Tether and USD Coin have a market cap of tens of billions of dollars. However, the bill’s clause is due to be repealed in 2028.

The bill, which will take effect from January 2025, is now waiting for Governor Gavin Newsom to sign it into law. This is expected to happen before September 30th.

NFTs in the Meta . ecosystem

Since May 2022, Meta Platforms Inc. The parent company Facebook is publishing features that allow its users to post and share NFTs, or what it calls “digital holdings” on Instagram. This was originally limited to content creators and collectors based in the United States. However, in August, the feature was expanded to 100 countries.

On August 29, Meta announced that it is allowing users to post their digital holdings across both Facebook and Instagram. Some Facebook users have expressed concerns about the security of their digital wallets that provide access to expensive NFTs.

In its latest report on the NFT market, research firm Elliptic showed that more than $100 million in NFTs were stolen by fraudsters between July 2021 and July 2022. Of these, 4,600 NFTs were stolen in July alone.

Speak after searches

Ashish Singhal, Co-Founder and CEO of CoinSwitch Kuber, claimed in a tweet that the Enforcement Department (ED)’s “involvement” with CoinSwitch Kuber was not related to the money laundering allegations or the Money Laundering Prevention Act.

The agency is said to be investigating the company regarding the functioning of its crypto platforms and exchanges.

The executive also explained that cryptocurrency was a new asset class in the country and that CoinSwitch Kuber was conducting “constructive dialogues” with stakeholders in order to inform them of the company’s business practices.

CoinSwitch Kuber was worth about $1.9 billion last year, and its notable investors include Andreessen Horowitz and Coinbase Ventures.

Last month, ED froze Rs 64.67 crore bank deposits to crypto exchange WazirX as part of a money laundering investigation.



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