- Dutch Central Bank Says Crypto Exchange KuCoin Is Operating Without a License in Netherlands
The Dutch central bank has issued a warning to cryptocurrency exchange KuCoin for operating without a registration in the Netherlands, according to a statement.
De Nederlandsche Bank (DNB) said that MEK Global Limited (MGL), which is registered in the Seychelles and trades under the name KuCoin in the Netherlands, doesn’t have a “legal registration” with the DNB.
“This means that MGL is in violation of the Anti-Money Laundering and Terrorist Financing Act and is illegally offering exchange services between virtual currencies and fiat currencies and offering custodial wallets,” the bank said.
DNB did not specify what it would do if KuCoin continued to operate without a license.
- Crypto Futures ETFs Raise More Than $73 Million Ahead of Hong Kong Launch
Two ETFs tracking crypto futures raised a total of $73.6 million ahead of their debut on the stock exchange in Hong Kong on Friday, with the larger one raising $53.9 million, according to Reuters. The news agency noted that the launch is in defiance of the ongoing turmoil in the sector.
The funds, offered by CSOP Asset Management, invest in bitcoin (BTC) and ether (ETH) futures listed on the CME exchange in the U.S., the only crypto assets allowed by Hong Kong’s Securities and Futures Commission (SFC) at the moment. Commenting on the development Yi Wang, head of quantitative investment at CSOP, stated:
Coming after the recent liquidity problems affecting some of the crypto platforms, our two crypto futures ETFs demonstrate that Hong Kong remains open-minded on the development of virtual assets.
https://news.bitcoin.com/crypto-futures-etfs-raise-more-than-73-million-ahead-of-hong-kong-launch/
- Crypto Bank Silvergate Hit With Class Action Lawsuit Over FTX, Alameda Dealings
A class action lawsuit against Silvergate Bank, Silvergate Capital Corporation, and Silvergate CEO Alan Lane was filed Wednesday in the U.S. District Court for the Southern District of California, alleging the defendants directly aided and abetted FTX’s fraudulent activities.
Per court filings, plaintiff Joewy Gonzalez and “all others similarly situated” entrusted their investments to the now-bankrupt crypto exchange FTX, which promised investors that they would be able to “store assets securely as they gained in value, cash them out or trade them for other assets or financial products.”
https://decrypt.co/117405/crypto-bank-silvergate-hit-class-action-lawsuit-ftx-alameda-dealings
- Bitcoin Dips Below $17K, Ethereum Loses 6% in a Day (Market Watch)
The past 24 hours saw the cryptocurrency market shed upwards of $20 billion of its capitalization as the price of BTC dropped towards $17K, and most altcoins chart even more considerable declines.
Bitcoin Price Nosedives to $17K
Bitcoin erased all the gains from the past week, trading at slightly below $17,000 following a couple of major red candles on the hourly chart.
The cryptocurrency dipped to a low of $16,950 (on Binance).
It’s interesting to see if the cryptocurrency will manage to hold this important level or if further declines are underway. It appears that the most recent hike of the interest rates by the US Federal Reserve is taking its toll on the market as almost every cryptocurrency is trading in the red, charting bigger losses compared to BTC.
Altcoins Plummet in Red
The majority of altcoins are swimming in a sea of red today, charting considerable declines. As seen in the heatmap below, ETH is down by almost 6%, getting dangerously close to $1,200. BNB is down by 4.26%, while DOGE, UNI, LINK, and LTC are also down by around 6%.
https://www.binance.com/en/news/flash/7327335
- Japan set to ease 30% crypto tax on paper profits for token issuers
The Japanese government is set to ease tax requirements for local crypto firms, as it pushes to stimulate growth in the domestic finance and tech sectors.
At present, Japanese firms that issue crypto are required to pay a set 30% corporate tax rate on their holdings, even if they haven’t realized a profit through a sale. As such, a number of domestically founded crypto/blockchain firms and talent have reportedly chosen to set up shop elsewhere over the past few years.
Japan’s ruling party, the Liberal Democratic Party’s (LDP) tax committee held a meeting on Dec. 15 and approved a proposal — initially tabled in August — which removes the requirement for crypto companies to pay taxes on paper gains from tokens that they have issued and held.
The softer crypto tax rules are expected to be submitted to parliament in January, and go into effect for Japan’s next financial year starting on April 1.
https://cointelegraph.com/news/japan-set-to-ease-30-crypto-tax-on-paper-profits-for-token-issuers
- Crypto Markets Today: Archblock Attempting to Bring US Banks to DeFi; Bitcoin and Ether Stall
Archblock, a core developer of unsecured lending protocol TrueFi, is working with Adapt3r, a subsidiary of alternative asset manager MJL Capital, to bring U.S.-regulated community banks to decentralized finance (DeFi).
The two firms plan to focus on expanding access to on-chain credit products and lower the cost of capital for traditional financial institutions, according to Archblock’s Thursday press release.
Marcus Leanos, founder and chief investment officer of MJL Capital, told CoinDesk, “We have a number of banks in our pipeline that range in size from $500 million to $5 billion in assets and have a history of conservatively originating loans.”
- Bank of Russia Moves to Safeguard Crypto Companies Against Sanctions
Bank of the Russian Federation (CBR) has allowed issuers of digital financial assets (DFAs) not to disclose information sensitive in the light of sanctions risks. The exemption, valid until July 1, 2023, concerns data revealing the beneficial owners of such entities.
According to an announcement quoted by Russian crypto media, the temporary reporting relief is part of a package of measures meant to help persons and organizations operating within the Russian financial market infrastructure.
While Russia is yet to regulate cryptocurrencies like bitcoin, the existing law “On Digital Financial Assets” permits companies to issue coins and tokens in controlled environments. Three “operators of information systems in which DFAs can be issued” have been already licensed by the CBR. These are Russia’s largest bank, Sber, the tokenization service Atomyze, and Lighthouse.
https://news.bitcoin.com/bank-of-russia-moves-to-safeguard-crypto-companies-against-sanctions/
- $117M Liquidated Overnight as Bitcoin, Ethereum Shed Post-CPI Gains
Bitcoin and Ethereum have just given up all fresh gains earned following this week’s optimistic CPI report.
Bitcoin, the largest cryptocurrency by market capitalization dropped nearly 4% over the past 24 hours and is now hovering at just above $17,000, per CoinGecko. Bears have also regained control of Bitcoin on the weekly basis, with the cryptocurrency down 1.2% over the past seven days.
Ethereum, meanwhile, has plummeted nearly 6% in the past day, according to CoinGecko. It’s still roughly $200 from falling into three-digit territory, trading at just over $1,200.
https://decrypt.co/117402/113m-liquidated-overnight-bitcoin-ethereum-shed-post-cpi-gains
- Crypto Trading Firm Amber Group Raises $300M Series C After FTX Contagion
Crypto trading firm Amber Group changed its fundraising strategy to raise a $300 million Series C round, as a reaction to the collapse of crypto exchange FTX.
The round was led by Fenbushi Capital U.S., and other crypto investors and family offices, the firm said on Twitter. Singapore’s investment fund Temasek, heavyweight venture capital firm Sequoia Capital China and Coinbase Ventures have previously invested in Amber Group, according to information platform Crunchbase.
While less than 10% of Amber Group’s trading capital was with the defunct FTX when it imploded, there were certain products that “would have experienced significant drawdowns as an aftermath of the FTX default” unless they could find better ways to protect customers, the trading firm tweeted on Friday.
The trading firm decided to move from its efforts to raise a Series B+ round at a $3 billion valuation if favor of a Series C. “Post the FTX collapse, we paused [the series B+ fundraise] after a partial closing and instead moved forward on Series C,” Amber Group said.
Going forward it will shift focus to collectibles, gaming and pre-owned items.
https://www.binance.com/en/news/flash/7327042
- Japan set to ease 30% crypto tax on paper profits for token issuers
Japanese government is set to ease tax requirements for local crypto firms, as it pushes to stimulate growth in the domestic finance and tech sectors.
At present, Japanese firms that issue crypto are required to pay a set 30% corporate tax rate on their holdings, even if they haven’t realized a profit through a sale. As such, a number of domestically founded crypto/blockchain firms and talent have reportedly chosen to set up shop elsewhere over the past few years.
Japan’s ruling party, the Liberal Democratic Party’s (LDP) tax committee held a meeting on Dec. 15 and approved a proposal — initially tabled in August — which removes the requirement for crypto companies to pay taxes on paper gains from tokens that they have issued and held.
The softer crypto tax rules are expected to be submitted to parliament in January, and go into effect for Japan’s next financial year starting on April 1.
https://cointelegraph.com/news/japan-set-to-ease-30-crypto-tax-on-paper-profits-for-token-issuers
