HyperLinq : Weekly Digital Asset Digest 21
The HyperLinq Weekly Digest is the one-stop source for the HyperLinq community to access relevant news involving digital assets, where we essentially outline key industry updates that our members may have missed. We are always open to suggestions and feedback so please do not hesitate to let us know what you think!
Facebook Libra Risks to Financial Stability Demand ‘Highest’ Regulatory Standards, Says G7 : Daniel Palmer | CoinDesk
The G7 group of nations has warned that cryptocurrencies such as Facebook’s Libra are a threat to global financial stability. A task force set up by the G7 to examine the issues said that rules of the "highest" standards are needed to minimize the use of digital currencies in money laundering and funding terrorism, Reuters reports Thursday. Yet, he went on to say that such cryptocurrencies raise "serious risks" to policy priorities, such as anti-money laundering, financing of terrorism, consumer and data protection, competition and compliance with tax rules. Bank of France governor and and member of the governing council of the ECB, Francois Villeroy de Galhau, also said that, while regulators seek to encourage innovation, "that cannot come to the detriment of the security of the consumer". He also said more details were needed regarding gray aspects of Facebook Libra. The draft document from the G7 stated that "significant work" is required from developers of stablecoins like Libra before regulatory approval is likely to be granted. Among its draft recommendations, the G7 says such stablecoins must meet the highest regulatory standards and come under regulatory oversight.
Cleveland Cavaliers Partner With Cryptocurrency Firm UnitedCoin : Max Boddy | CoinTelegraph
Ohio-based professional basketball team the Cleveland Cavaliers , along with its associated esports club Cavs Legion GC, have partnered with the cryptocurrency firm UnitedCoin. The National Basketball Association announced the new partnership in a press release on July 15. The Cavs Legion will reportedly advertise UnitedCoin as its official cryptocurrency partner. Within NBA 2K, this means that UnitedCoin will be displayed on the team’s in-game home court. The Cavs Legion will also put UnitedCoin’s brand on social media, as per the announcement. The company has also issued a Mastercard debit card, which likewise has both fiat and crypto functionality. As per its website, UnitedCoin is registered with the United States Securities and Exchange Commission and is still in an early-access phase. According to its whitepaper, UnitedCoin employs a new type of consensus algorithm and chain structure that purportedly solves some problems with traditional blockchains.
Hackers Are Turning Binance’s Stolen Bitcoin Into Other Cryptocurrencies : John Biggs | CoinDesk
A new analysis by Coinfirm shows the movement of the bitcoin stolen from Binance into various wallets. Now, however, Coinfirm has spotted some activity that suggests the hackers are moving their gains off of exchanges, potentially into other cryptocurrencies. Most recently, however, it’s become clear that the hacker has begun liquidating the BTC on various exchanges. The transfers happened as follows:
Bitfinex: 0,7934 BTC
Binance: 0,4294 BTC
Bitmex: 0,0022 BTC
KuCoin: 0,0713 BTC
Kuna: 0,2482 BTC
Bitmarket: 0,2560 BTC
Crypterra: 0,0072 BTC
Bitcoin.de: 0,0007 BTC
WazirX: 0,0003 BTC
While caveats apply, it’s clear that the hacker moved an amount of BTC to each of these exchanges and there they either left the chain or remained dormant.
Indian Minister: No Official Ban on Cryptocurrencies in India Yet : Max Boddy | CoinTelegraph
India’s Minister of State for Finance Anurag Thakur has said that there is no law in India expressly prohibiting the use of cryptocurrencies. MP Dharmapuri Srinivas reportedly asked Thakur about whether cryptocurrency was actually illegal. Thakur reportedly replied in the negative. Elaborating on the country’s position, Thakur said that there is no law specific to crypto to refer to. Cryptocurrency activities are reportedly only actionable offenses if they violate preexisting laws, which can be enforced by entities including the RBI, enforcement directorate, and income tax authorities. As previously reported by Cointelegraph, an unverified, leaked bill draft entitled "Banning of Cryptocurrency & Regulation of Official Digital Currencies" would ban all "non-official" cryptocurrencies. However, this definition leaves India the option of issuing a digital Rupee, which the bill also proposes.
‘Samsung Coin’ Trademark Filing Unaffiliated With Samsung : Max Boddy | CoinTelegraph
On July 10, Kim Nam-jin applied for a Trademark 5 on the name "Samsung Coin" with the Korean Intellectual Property Office. As per the filing, it appears that Nam-jin is seeking to trademark the name in both its Korean spelling in Hangul as well as in English. Additionally, the report says that the trademark was listed under categories including downloadable electronic money computer program, electronic money card, electronic encryption device and IC card with electronic money function, although blockchain and cryptocurrency are not mentioned anywhere. The report also notes that this is not the first time Kim Nam-jin has attempted to trademark a seemingly crypto-related term associated with a Korean tech giant. According to the report, Nam-jin also entered an application with KIPO for the name ThinQ Wallet on the same day the individual filed for Samsung Coin. As reported by Cointelegraph on July 10, Samsung announced that it has released its blockchain and decentralized application Software Development Kit. The SDK is designed for account management, payments, and cold wallet support among other things.
Global Accounting Firm KPMG Partners with Microsoft, R3 on Telecoms Blockchain : Daniel Kuhn | CoinDesk
KPMG, a multinational accounting firm, is partnering with software firms TOMIA, Microsoft and R3 to develop a blockchain for telecom settlements. One of the "big four" accounting firms, KPMG has pursued industry-specific blockchain pilots in the past, always with an eye to settling cross-border, or network, complexities. The latest partnership, with two distributed ledger industry leaders, Microsoft and R3, continues in the vein of resolving the issues that arise from multi-party connections. Specifically, KPMG is looking to address the hard data issues that will arise from 5G connectivity. The company states that "international mobile data roaming revenues are expected to reach $31 billion in 2022, with an average annual growth rate of eight percent". It’s not just future costs the business partnership is looking to salve, but the current inefficiencies in the market. In fact, KPMG now reconciles much of that information automatically with smart contracts they designed. In the business arrangement, Arun Ghosh, Blockchain Leader at KPMG said that KPMG has taken the design and execution lead for the project. While Microsoft acts as the principal architect, R3’s Corda acts as the backbone of the operation, and TOMIA brings a layer of telecom knowhow through representing 40-odd global operators. Before this blockchain initiative, KPMG had advised telecom operators on capital-efficient deployment of 5G networks, cyber security, privacy, and data protection, and revenue recognition and lease accounting.
Ex-CEO of BTC-e Exchange’s Spin-Off WEX Is Arrested in Italy : Helen Partz | CoinTelegraph
Former CEO of now-defunct crypto exchange WEX, a spin-off of controversial BTC-e exchange, was arrested in Italy. Dmitri Vasilyev, who reopened BTC-e exchange as WEX.nz in September 2017, was detained by Italian prosecutors. While no official statement has been disclosed to date, BBC Russia reported the arrest on July 19. The reason for detention remains unclear. In April 2019, Vasilyev became the subject of a criminal investigation by the police department in Kazakh city Almaty, as the alleged suspect was charged with defrauding a local investor in the amount of $20,000 through WEX exchange, as crypto media outlet Forklog reported. According to the report, the 32-year-old suspect was announced wanted under an international arrest warrant in the territory of the Commonwealth of Independent States. Following Vinnik’s arrest in 2017, Vasilyev relaunched the exchange under name of WEX that soon was reported as exhibiting suspicious tendencies including overpricing Bitcoin compared to global norms. Eventually, WEX halted withdrawals in July 2018, which led to claims from users that the platform was a scam. In late 2018, WEX’s fellow exchange and major global crypto trading platform Binance froze funds sent from wallets associated with WEX after users claimed that the exchange was involved in money laundering.
Fidelity’s Crypto Branch Files for a New York Trust License: Report : Helen Partz | CoinTelegraph
Fidelity’s crypto arm Fidelity Digital Assets Services has applied for a license to operate as a trust in New York State. FDAS has filed an application with the New York Department of Financial Services for a trust license, crypto media outlet The Block reported on July 20, citing several unnamed sources familiar with the matter. In the report, lawyer Arthur Long said that the trust license is broader than BitLicense, NYDFS’ typical crypto license, enabling its bearer to operate more financial services such as financial advice. Fidelity has not confirmed the news to The Block as of press time. Sandler joined the firm to lead institutional customers service and was reportedly based in New York. In mid-May, Cointelegraph reported that FDAS was working to expand its blockchain engineering team. Recently, Reuters reported that social media giant Facebook applied with the NYDFS to acquire a cryptocurrency business license to operate its planned stablecoin Libra in New York.