- Dubai Prohibits Privacy Coins Like Zcash and Monero Under New Crypto Rules
In Dubai, the issuance of and all activities related to anonymity-enhancing cryptocurrencies such as Zcash (ZEC) and monero (XMR) are prohibited under new laws published Tuesday.
The jurisdiction in the United Arab Emirates (UAE) published its long-awaited crypto regulations, which sets licensing and authorization requirements for virtual asset companies and issuers looking to operate in Dubai.
The new rules define anonymity-enhancing crypto as “a type of Virtual Asset which prevents the tracing of transactions or record of ownership through distributed public ledgers and for which the [Virtual Asset Service Provider] has no mitigating technologies or mechanisms to allow traceability or identification of ownership.”
Regulators in other jurisdictions like Japan have also taken steps to prohibit privacy-enhancing crypto. The European Union is also considering prohibiting tokens that hinder traceability.
https://www.coindesk.com/policy/2023/02/08/dubai-prohibits-privacy-coins-under-new-crypto-rules/
- Crypto Custody Tech Firm Metaco Taps IBM Execs to Revamp Institutional Push
Metaco, a provider of crypto custody technology, has hired former-IBM digital asset specialist Peter DeMeo and made several other key appointments as the company shrugs off tough market conditions and prepares to drive the next phase of big-business crypto adoption.
Reliable safekeeping of crypto assets is where the rubber has met the road for banks and institutions over the past couple of years. Custody has shot to prominence again in the wake of the FTX crypto exchange collapse and the failures of crypto lending platforms Celsius Network and CoinDesk sister company Genesis, among others.
DeMeo’s appointment as chief product officer matters because IBM, where he was head of digital assets infrastructure, has been quietly building out bank-grade digital assets custody and key management. (Big Blue was previously best known in the industry for its forays into supply chain applications of permissioned blockchains and the like.)
https://www.binance.com/en/news/flash/7395498
- ConsenSys Backs Lawsuit Against IRS Over Taxing Staked Crypto
Crypto software giant ConsenSys will financially support an ongoing lawsuit challenging the IRS’ ability to tax staking rewards, the company announced Tuesday.
In 2021, Joshua and Jessica Jarrett sued the IRS to recover federal income taxes levied on the Tennessee couple’s stake-generated Tezos, arguing that self-generated staking rewards could not be considered taxable income under federal law.
Mid-way through the lawsuit, the IRS offered to issue the Jarretts their requested refund, but the plaintiffs refused, eager to get assurances from a court that the issue wouldn’t arise in the future. No such assurances came to pass, however: a federal judge dismissed the case in October, deeming the Jarretts’ grievances moot after a tax refund was issued.
https://decrypt.co/120793/crypto-staking-taxes-appeal
- SEC to up scrutiny of firms offering or giving advice about crypto
Crypto brokers and investment advisers offering or giving advice about cryptocurrencies will be put under the scope of the United States securities watchdog this year.
A Feb. 7 statement from the Securities and Exchange Commission’s (SEC) Division of Examinations outlined its priorities for 2023, suggesting brokers and advisers dealing in crypto will need to be extra careful when offering, selling or making recommendations regarding digital assets.
It stated that SEC-registered brokers and advisers will be closely watched to see if they followed their “respective standards of care” when making recommendations, referrals and providing investment advice.
https://cointelegraph.com/news/sec-to-up-scrutiny-of-firms-offering-or-giving-advice-about-crypto
- Ethereum Liquid Staking Trend Continues to Swell; 5 Platforms Control 97% of Market
Staking Ethereum has become a highly sought-after trend since its introduction on the network’s Beacon chain. The Beacon chain contract has 16.47 million ether locked, worth $26 billion, that cannot be withdrawn until the upcoming March hard fork. A significant portion of this locked ether is held within liquid staking protocols, as 11 decentralized finance (defi) protocols hold 41% of the total, or 6.87 million ether.
Ethereum Liquid Staking Trend Continues to Swell; 5 Platforms Control 97% of Market
Liquid staking involves exchanging ether for tokenized versions of ether. This allows holders to earn rewards while still having a liquid form of the coin that they can sell at any time without relying on a custodian. The staked ether is held within various protocols, and the platforms handle the exchange for minting and redemption processes. Out of the 41%, which is valued at more than $11 billion, Lido holds 73% of the total value locked (TVL). Lido’s TVL saw a 4.27% increase last month, and its value locked is around $8.18 billion today.
- Argentina’s National Securities Commission to Set Requirements and Rules for Crypto Companies
Argentina’s National Securities Commission (CNV) will establish and regulate requirements to be followed by crypto companies in that country, the agency told CoinDesk on Tuesday.
The jurisdiction of the CNV over virtual asset service providers is specified in a reform of the money laundering prevention law that is being discussed in the Argentine Congress.
If the law is passed, the CNV plans to consult all of those in the crypto ecosystem operating in Argentina in order to seek their input as it works to create regulations, the agency told CoinDesk.
“The worst-case scenario is a regulation that cannot be implemented,” said a CNV source.
- SEC to Up Scrutiny of Firms Offering or Giving Advice About Crypto
Crypto brokers and investment advisors offering or giving advice about cryptocurrencies will be put under the scope of the United States’ securities watchdog this year.
A Feb. 7 statement from the Securities and Exchange Commission’s (SEC) Division of Examinations outlined its priorities for 2023, suggesting brokers and advisers dealing in crypto will need to be extra careful when offering, selling or making recommendations regarding digital assets.
It stated that SEC-registered brokers and advisors will be closely watched to see if they followed their “respective standards of care” when making recommendations, referrals and providing investment advice.
Today we announced the Division of Examinations 2023 priorities. The Division publishes its examination priorities annually to provide insights into its risk-based approach.
https://www.binance.com/en/news/flash/7397173
- SBF Lobbied Congress to Benefit FTX, Not Crypto, Says Blockchain Exec
FTX founder Sam Bankman-Fried spent more time lobbying lawmakers in D.C. than any other executive that Blockchain Association executive director Kristin Smith has seen in her 20-year career.
So it’s hardly surprising, in the wake of his crypto empire going bust amid claims of fraud and misappropriated funds, that the tone of conversations facilitated by the crypto lobbying group has had to change.
“He did a tremendous amount of damage,” Smith said during a recent episode of gm from Decrypt, making it clear that FTX was never a Blockchain Association member.
“Sam testified before Congress multiple times, he had incredibly detailed proposals at the [Commodities Future Trading Commission] and also legislatively that he was working on,” Smith said. “He was spending a tremendous amount of time walking the halls of Congress, meeting with members, meeting with leadership, meeting with staff—he would take them out for drinks.
https://decrypt.co/120806/sbf-lobbied-congress-for-ftx-not-crypto
- US financial regulators warn against crypto exposure in retirement accounts
Three financial watchdogs in the United States have issued a warning to investors considering certain individual retirement accounts with exposure to cryptocurrencies.
In a Feb. 7 notice, the United States Securities and Exchange Commission’s Office of Investor Education and Advocacy, the North American Securities Administrators Association, and Financial Industry Regulatory Authority said self-directed individual retirement accounts, or IRAs, may include assets with potential risks, including cryptocurrencies. According to the agencies, some of the aforementioned IRAs could offer exposure to crypto assets that qualify as securities “without SEC registration or a valid exemption from registration” and without providing the information necessary to make informed decisions on investments.
- North Korea Stole Record Amount of Crypto Assets in 2022, UN Report Unveils
North Korea has stolen more crypto assets in 2022 than in any other year, according to a United Nations report which is to be released by the end of this month or in early March. The draft paper, seen by Reuters and Nikkei Asia, reveals how the isolated country is raising funds through cyberattacks and in circumvention of international restrictions.
The document, which is still confidential at this point in time, was submitted to the U.N. Security Council’s committee on North Korea sanctions on Friday. The findings in it are based on information provided by U.N. member states and cybersecurity firms.
Its authors quote different estimates. One produced by South Korea suggests that hackers controlled by Pyongyang acquired crypto worth $630 million during the studied period, while a cybersecurity company has assessed that the virtual money they obtained exceeded $1 billion. In any case, the independent sanctions monitors believe that:
A higher value of cryptocurrency assets was stolen by DPRK actors in 2022 than in any previous year.
https://news.bitcoin.com/north-korea-stole-record-amount-of-crypto-assets-in-2022-un-report-unveils/
