Crypto News Headlines (24-May-2022)

More financial institutions engaging with crypto or digital assets being used as a form of payment could increase “spillover to the wider economy” the European Central Bank wrote in a report on Tuesday.

Regulators have been turning their heads toward the devastating collapse of the Terra blockchain coins, which put into question the stability of algorithmic stablecoins like UST, which are not backed by a fiat currency.

“Given the speed of crypto developments and the increasing risks, it is important to bring crypto-assets into the regulatory perimeter and under supervision as a matter of urgency,” the ECB said.

The European Union is currently putting together legislation to regulate cryptocurrencies called the Markets in Crypto Assets package.

https://www.coindesk.com/policy/2022/05/24/ecb-warns-that-crypto-risks-could-spill-over-into-wider-economy/

The Seoul Metropolitan Police Agency’s Cybercrime ​​Investigation Unit announced Monday that it has launched an investigation into possible embezzlement by an employee of Terraform Labs, local media reported.

An official from the Seoul Metropolitan Police Agency was quoted by Chosun as saying:

We have received information that there is a person suspected of embezzling corporate funds who is believed to be an employee of Terraform Labs.

The police received reports of the alleged embezzlement in the middle of this month and have been looking into the case. As part of the investigation, the police plan to check the details of cash and crypto transactions of Terraform Labs and the Luna Foundation Guard (LFG).

The police explained that there is evidence that embezzled funds had flowed into the Luna Foundation Guard’s accounts. The cybercrime unit has therefore requested major domestic cryptocurrency exchanges, such as Upbit and Bithumb, to “urgently” freeze the accounts belonging to the Luna Foundation Guard to prevent withdrawals of funds held at crypto exchanges.

https://news.bitcoin.com/korean-police-ask-crypto-exchanges-to-freeze-luna-foundation-guards-assets/

“Pharma Bro” Martin Shkreli has gone full crypto bro—and he’s got plenty of hot takes.

In a Twitter Space on Monday, Shkreli critiqued Ethereum founder Vitalik Buterin, bashed NFTs, and went off on the “shitcoin retards” who recently launched an altcoin in his honor.

Shkreli, the former head of Turing Pharmaceuticals, earned the moniker “Pharma Bro” after notoriously raising the price of the toxoplasmosis drug Daraprim by 5,000%. He was convicted of securities fraud in 2017, and he’s been quite busy since his early release from prison on May 18.

Over the weekend, he claimed that he learned to trade on the decentralized exchange Uniswap while in prison. He further claimed today that he received unspecified perks in prison in exchange for giving prison guards advice on Bitcoin. Now that he’s out, there’s been reports that the felon is already back on Bumble and the Bloomberg terminal.

https://decrypt.co/101209/pharma-bro-martin-shkreli-ethereum-vitalik-buterin

LVMH-owned Swiss luxury brand Tag Heuer announced earlier this week that it will accept a total of twelve major cryptocurrencies plus five stablecoins as payment options on its US website. The globally renowned watchmaker had previously revealed that it would soon allow digital currency payments on all websites.

An Early Push into Web3

Tag Heuer’s latest adoption of digital currencies came into reality by collaborating with the payment service provider BitPay. It made it possible that users could choose major digital currencies, like Bitcoin, Ethereum, stabelcoins, and more, to pay for luxury products.

The new payment route accepts Exodus Wallet, Ledger Wallet, and many other crypto wallets and allows up to $10,000 per transaction with no requirements on minimal spending.

Tag Heuer CEO Frédéric Arnault said the company had paid attention to Bitcoin since its birth and that the recent ups and downs of the crypto market did not change its view of digital currencies as a transformative technology. He touted that the announcement was just the beginning of the giant’s push into Web3:

https://www.binance.com/en/news/top/7116771

The United States Federal Reserve Board has included data on cryptocurrency in its new Economic Well-Being of U.S. Households in the 2021 report. The Fed’s ninth annual report looked at survey results from 11,000 people questioned in October and November 2021.

The report indicated financial wellbeing is the highest it has been since reporting began, with 78% of U.S. adults “doing okay or living comfortably financially.” That is an increase of 3% over the last three years. As a diagnostic of financial fitness, the report cites the 68% of Americans who say they could cover a $400 emergency expense using cash or its equivalent alone.

https://cointelegraph.com/news/fed-finds-most-americans-don-t-have-crypto-those-who-use-it-for-purchases-tend-to-be-poor

Looks like Deutsche Telekom’s (DTEGY) loss is Finoa’s gain.

Six months after departing the European telecoms giant, Andreas Dittrich and Daniel Schrader – two of Deutsche Telekom’s former blockchain team – have helped create a unit at cryptocurrency custody provider Finoa for building infrastructure to support proof-of-stake (PoS) networks.

Finoa, regulated by Germany’s BaFin, will work with PoS specialist StakeWise, the companies announced Monday. The new Finoa Consensus Services subsidiary will offer liquid staking.

As Ethereum, the second-largest public blockchain, makes its transition from proof-of-work (PoW) mining to PoS, participants running transaction validator nodes are required to lock up ether (ETH) tokens on the network, for which staking yield can be earned over time. Offering participants a way to have their cake and eat it, liquid staking platforms provide users with IOU tokens representing assets bound to a network for staking and validation purposes, unlocking the ability to use those liquid tokens in decentralized finance (DeFi) protocols, for instance.

https://www.coindesk.com/business/2022/05/24/ex-deutsche-telekom-team-launch-liquid-staking-division-at-crypto-custodian-finoa/

A number of crypto firms have joined forces and launched a new, multi-chain scam reporting platform. TRM Labs, Circle, Solana Foundation, the Aave Companies, Hedera, Binance.us, and Civic announced last week “the launch of a new community-powered scam reporting platform, Chainabuse.”

The platform, operated by blockchain intelligence firm TRM Labs, “empowers anyone in the crypto economy to warn others about scams, hacks or other fraudulent activity as they encounter it,” the announcement details, elaborating:

The free tool enables crypto users, victims of financial crimes, and crypto businesses to take an active role in making the crypto ecosystem a safer place to operate.

Currently, users can file reports under Bitcoin, Ethereum, Solana, Polygon, Hedera, Binance Smart Chain, and Tron. Reports can be upvoted and downvoted. Other platform users can also leave comments to contribute additional information.

https://news.bitcoin.com/crypto-firms-launch-community-powered-scam-reporting-platform-chainabuse/

Crypto is another step closer to mainstream acceptance as a payment method—if buying $1,250 hoodies that come pre-destroyed can be considered mainstream, that is.

Starting next month, French luxury fashion label Balenciaga will begin accepting Bitcoin and Ethereum as payment online and at select brick-and-mortar locations, according to The Wall Street Journal.

The move makes Balenciaga the latest legacy fashion brand to embrace cryptocurrencies as a payment method. Earlier this month, Gucci announced that it would begin permitting crypto payments online and at five in-store locations. Gucci currently accepts cryptocurrencies Bitcoin, Bitcoin Cash, Ethereum, Litecoin, Dogecoin, and Shiba Inu as payment.

https://decrypt.co/101183/balenciaga-accept-bitcoin-ethereum-metaverse

PayPal, known globally for being one of the world’s leading online payment systems, would soon accept all forms of crypto and blockchain services. This was made known by Richard Nash, the company’s vice president.

Nash’s Notable Revelation

Speaking today, in an exclusive statement to Cointelegraph at the World Economic Forum, Nash revealed the latest development about PayPal. According to him, the company is putting in efforts to enable the use of all digital services on the PayPal platform.

The announcement comes two years after the company had rolled out such crypto services for world’s leading cryptocurrency, Bitcoin, across the U.S. The plan would include digital currencies, as well as, central bank digital currencies (CDBC).

Critics and doubters have been shown an early red card by Nash, who suggested his personal stance and experience with cryptocurrency. A question about him holding any crypto was met by an answer that clearly hints he does despite not being definitive.

https://www.binance.com/en/news/top/7117330

America’s largest crypto exchange Coinbase has added the BNB Chain, formerly Binance Smart Chain, and Avalanche to the Coinbase Wallet’s list of supported networks where users can swap and store cryptocurrencies.

The Tuesday blog post from the exchange boasts that the added functionality will provide access to “thousands of tokens,” which constitute a “greater variety than most traditional centralized exchanges can offer.”

The added functionality to BNB Chain and Avalanche brings the total supported networks up to four, including Ethereum and Polygon. Users of the wallet who wish to trade on-chain can use Coinbase’s own in-app decentralized exchange (DEX) on four networks. Token bridging is not yet available.

Coinbase Wallet allows users to self-custody their crypto and provides access to on-chain as opposed to the features available on Coinbase’s centralized platform.

https://cointelegraph.com/news/coinbase-offers-thousands-of-tokens-in-new-swap-feature