JPMorgan Foresees Increased Blockchain Use in Finance — Prepares to Offer Related Services

JPMorgan Foresees Increased Blockchain Use in Finance — Prepares to Offer Related Services

JPMorgan expects blockchain use in finance to increase as the crypto sector grows. The global investment bank says, “We want to make sure that we are able to not only support that but also be ready to provide related services.”

JPMorgan’s Blockchain Plans

JPMorgan Chase & Co foresees increased blockchain usage in traditional finance and is getting ready to offer related services, Bloomberg reported Thursday.

The global investment bank has been using a blockchain for collateral settlements, allowing its clients to use a wider range of assets as collateral and trade outside of market operating hours. The first such transaction took place on May 20.

Ben Challice, JPMorgan’s global head of trading services, was quoted as saying:

What we’ve achieved is the friction-less transfer of collateral assets on an instantaneous basis.

In addition to derivatives trading, repo trading, and securities lending, JPMorgan said it plans to expand tokenized collaterals to include equities, fixed income, and other asset types.

Tyrone Lobban, head of JPMorgan’s Blockchain Launch and Onyx Digital Assets, explained that over time the bank’s blockchain could potentially be a bridge connecting institutional investors with decentralized finance (defi) platforms in the crypto economy.

He continued that as the crypto sector grows:

There will be a growing set of financial activities that happen on the public blockchain, so we want to make sure that we are able to not only support that but also be ready to provide related services.

In February, JP Morgan opened an “Onyx by J.P. Morgan” lounge in the metaverse. The bank estimated the metaverse to be “a trillion-dollar revenue opportunity across advertising, social commerce, digital events, hardware, and developer/creator monetization.”

JPMorgan CEO Jamie Dimon, while skeptical of bitcoin and crypto, is bullish about blockchain. He said in April: “Decentralized finance and blockchain are real, new technologies that can be deployed in both public and private fashion, permissioned or not.”

This week, JPMorgan’s strategists published a bullish report on bitcoin and cryptocurrency, stating that there is “significant upside” to the price of BTC. The bank has also replaced real estate with cryptocurrencies as its “preferred alternative asset class.”

What do you think about JPMorgan’s blockchain plans? Let us know in the comments section below.

SEC Drops the Ball on Crypto Regulation and There Are Long-Term Consequences, Says Commissioner

SEC Has Dropped the Ball on Crypto Regulation and 'There Are Long-Term Consequences,' Says Commissioner

A commissioner with the U.S. Securities and Exchange Commission (SEC) has warned that the securities market regulator has dropped the ball on crypto regulation. “We’re not allowing innovation to develop and experimentation to happen in a healthy way, and there are long-term consequences of that failure,” said the commissioner.

SEC Commissioner Warns About the ‘Failure’ of Crypto Regulation

SEC Commissioner Hester Peirce expressed concerns that the U.S. has dropped the ball on the regulation of cryptocurrencies in an interview with CNBC on the sidelines of the DC Blockchain Summit this week.

Peirce, who is also known in the crypto community as “crypto mom” for her support of the industry, discussed challenges in the crypto ecosystem from a regulatory standpoint. Firstly, the commissioner mentioned fraud, stating that “There’s a lot of fraud in this space because it’s the hot area of the moment.”

However, she stressed that what concerns her more is that the SEC has dropped the ball on crypto regulation. Peirce stated:

The other piece that does concern me is the way that we’ve sort of dropped the regulatory ball.

“We’re not allowing innovation to develop and experimentation to happen in a healthy way, and there are long-term consequences of that failure,” the commissioner warned.

The crypto market has suffered a massive loss over the recent weeks, shedding about $500 billion since the beginning of the month.

The market downturn was exacerbated by the collapse of cryptocurrency terra (LUNA) and algorithmic stablecoin terrausd (UST). The two cryptocurrencies lost almost all value within days. The catastrophe has prompted Congress to call for the urgent regulation of stablecoins.

Following the implosion of the two cryptocurrencies, SEC Chairman Gary Gensler warned that a lot of crypto tokens will fail and investors will get hurt. He has repeatedly said that a lot of coins listed on crypto exchanges are securities and should be registered with his agency. However, Gensler also emphasized that the SEC does not have enough resources to adequately police financial markets, stating that the regulator is really “outpersonned.” He also said that crypto exchanges are trading against their customers often.

The SEC under Gensler has so far been enforcement-centric. Since the securities watchdog launched a unit dedicated to crypto asset oversight in 2017, it has brought more than 80 enforcement actions against crypto companies. The agency recently announced that it will almost double the size of its Enforcement Division’s crypto unit.

Peirce emphasized the need for regulatory clarity from the SEC, adding that there is a lot of work to be done within existing authorities. Citing that traditional financial institutions want to get involved in crypto, she stressed: “They need regulatory clarity from us in order to do that.”

The commissioner opined:

We can go after fraud and we can play a more positive role on the innovation side, but we have to get to it, we’ve got to get working … I haven’t seen us willing to do that work so far.

What do you think about SEC Commissioner Peirce’s comments? Let us know in the comments section below.

IMF Chief Begs Investors Not to Shun All Crypto After the Collapse of LUNA, UST

IMF Chief Urges Against Completely Shunning Crypto After the LUNA Collapse — Likens Stablecoins Not Backed by Assets to Pyramids

The managing director of the International Monetary Fund (IMF) reportedly said that investors should not completely pull out of crypto after the collapse of cryptocurrency terra (LUNA) and stablecoin terrausd (UST).

IMF Chief Has a Message for Crypto Investors After the Collapse of LUNA, UST

Kristalina Georgieva, the managing director of the International Monetary Fund (IMF), discussed cryptocurrency at the World Economic Forum’s annual meeting in Davos Monday.

She urged people not to completely shun crypto after the recent collapse of algorithmic stablecoin terrausd (UST) and cryptocurrency terra (LUNA), Bloomberg reported. The IMF managing director was quoted as saying:

I would beg you not to pull out of the importance of this world … It offers us all faster service, much lower costs, and more inclusion, but only if we separate apples from oranges and bananas.

The IMF chief stressed that it is the responsibility of regulators worldwide to put up protective measures and adequately educate investors on the risks of crypto assets.

She pointed out that there are many different types of crypto assets with varying risk levels, emphasizing that there’s a big difference between stablecoins that are backed by cash and algorithmic stablecoins, like LUNA.

Georgieva opined:

The less there is backing it, the more you should be prepared to take the risk of this thing blowing up in your face.

IMF Chief Says Stablecoins Not Backed by Assets Will Eventually Fall to Pieces

Georgieva further discussed stablecoins during a panel moderated by CNBC in Davos Monday. “When we look at stablecoins, this is the area where the big mess happened. If a stablecoin is backed with assets, one to one, it is stable,” she said, elaborating:

When it is not backed with assets, but it is promised to deliver 20% return, it’s a pyramid … What happens to pyramids? … They eventually fall to pieces.

What do you think about the comments by IMF Chief Kristalina Georgieva? Let us know in the comments section below.

US Senator Cruz ‘Incredibly Bullish’ on Bitcoin — Says ‘I Have a Weekly Buy’

US Senator Cruz 'Incredibly Bullish' on Bitcoin, Says 'I Have a Weekly Buy'

U.S. Senator Ted Cruz says he is “incredibly bullish” on bitcoin and purchases the cryptocurrency weekly for his portfolio. Emphasizing that cryptocurrency “will change the world,” the senator said, “Uncontrolled, decentralized currency is terrifying for those who want control of currency.”

Senator Ted Cruz ‘Incredibly Bullish’ on Bitcoin, Crypto

Senator Ted Cruz (R-TX) discussed bitcoin at the Heritage Foundation’s Bitcoin and the American Experiment event Monday. He began:

I gotta say when it comes to bitcoin, when it comes to crypto more generally, I am incredibly bullish.

“I think it is in the process of, and in the future even more so, will change the world,” he opined.

He proceeded to talk about various reasons why people are attracted to bitcoin. Firstly, many are using it as a hedge against inflation. Secondly, he explained that “there’s also an appeal of speed, the ability to instantly carry out a financial transaction anywhere in the world instantaneously, and virtually costless.”

He continued: “And then there is the advantage of freedom. There is nobody in charge. That terrifies government decision-makers.” Referencing that communist China and U.S. Senator Elizabeth Warren want to control currencies, Cruz commented:

Uncontrolled, decentralized currency is terrifying for those who want control of currency.

The Texan senator proceeded to explain why bitcoin mining is good for the environment.

“I actually think bitcoin has an incredible potential to benefit us on the energy front,” he stressed.

He gave the example of natural gas flaring, the process of lighting natural gas on fire during oil production, praising bitcoin’s ability to turn the energy waste into value. He also explained, “One way to think of bitcoin is as a battery,” adding that when there’s a need, “Bitcoin mining rigs can be turned off at a fraction of a second” and “suddenly the energy that was going to bitcoin mining can be instantly available” for people.

Senator Cruz Buys Bitcoin Weekly: ‘I Believe in Dollar Cost Averaging’

Regarding his own cryptocurrency investments, Cruz confirmed: “I’m an investor in bitcoin. I have invested my own money in bitcoin.” The senator added:

I have a weekly buy that’s an automatic buy every week of bitcoin because I believe in dollar-cost averaging.

“I’m not smart enough to play the market. If I invest the same amount every month, every week, that oughta work out,” he shared. “I believe in bitcoin and so wanted to have a portion of our portfolio in it, not a massive portion, but a portion of it.” In February, the senator declared that he had purchased bitcoin worth up to $50K.

Commenting on other cryptocurrencies, he said: “Other forms of crypto, I’ll confess I understand less well so my risk tolerance is… I’m a little more hesitant to go there myself.”

What do you think about the comments by U.S. Senator Ted Cruz? Let us know in the comments section below.

JPMorgan Sees ‘Significant Upside’ to Bitcoin — Replaces Real Estate With Crypto as ‘Preferred Alternative Asset’

JPMorgan Sees 'Significant Upside' to Bitcoin — Replaces Real Estate With Crypto as 'Preferred Alternative Asset'

JPMorgan sees “significant upside” to the price of bitcoin. The global investment bank’s price target for the cryptocurrency is 28% above its current price. JPMorgan has also replaced real estate with cryptocurrencies as its “preferred alternative asset class along with hedge funds.”

JPMorgan’s Bitcoin Price Target Is 28% Above Current Price

Global investment bank JPMorgan published a bullish note on bitcoin and cryptocurrency Wednesday. The bank’s strategists, including Nikolaos Panigirtzoglou, wrote that their price target for bitcoin remains at $38,000, “implying significant upside for digital assets from here.”

At the time of writing, bitcoin is trading at $29,784, down 2.4% over the past seven days and almost 25% over the last 30 days. JPMorgan’s fair value estimate for bitcoin is nearly 28% higher than the current price of BTC.

The JPMorgan strategists detailed:

The past month’s crypto market correction looks more like capitulation relative to last January/February and going forward we see upside for bitcoin and crypto markets more generally.

While the investment bank’s price target for bitcoin is $38K, its strategists have said that their long-term theoretical target price for the cryptocurrency is $150K.

Crypto Becomes JPMorgan’s Preferred Alternative Asset Class, Replacing Real Estate

In addition, the global investment bank now sees cryptocurrencies as its “preferred alternative asset class,” replacing real estate amid soaring mortgage rates.

JPMorgan detailed that the recent market downturn hurt cryptocurrencies more than other alternative investments, including real estate.

Noting that this trend suggests crypto has more room to rebound, the strategists wrote:

We thus replace real estate with digital assets as our preferred alternative asset class along with hedge funds.

The JPMorgan note followed a massive sell-off in the crypto market amid the implosion of cryptocurrency terra (LUNA) and algorithmic stablecoin terrausd (UST).

The strategists noted that while the dramatic collapse of the two cryptocurrencies has weakened the sentiment of many crypto investors, there was little sign so far that venture capital funding into the crypto sector is slowing down.

Coincidentally, major VC firm Andreessen Horowitz (a16z) announced Wednesday the launch of its new $4.5 billion crypto fund.

What do you think about JPMorgan’s bitcoin price prediction and the bank replacing real estate with crypto as its preferred alternative asset class? Let us know in the comments section below.

Bank of England’s Andrew Bailey Warns Bitcoin Has No Intrinsic Value, Not a Practical Means of Payment

Bank of England's Andrew Bailey Warns Bitcoin Has No Intrinsic Value, Not a Practical Means of Payment

The governor of the Bank of England, the British central bank, says bitcoin has no intrinsic value and the cryptocurrency is not suitable as a practical means of payment. His warning came after the crypto market plunged.

Andrew Bailey on Bitcoin and Cryptocurrency

Bank of England Governor Andrew Bailey warned about bitcoin and cryptocurrency on the Jobs of the Future podcast, published Monday.

His warning came after the crypto market plunged, shedding close to $500 billion this month. Bitcoin, the largest cryptocurrency, has fallen more than 25% over the past 30 days.

While admitting that blockchain, the underlying technology of cryptocurrencies, is important, Bailey is unconvinced about bitcoin as a means of payment. He added that Britain’s central bank is looking at its own digital currency.

He continued:

In terms of payments, I don’t think it will be crypto in the a sort of bitcoin sense of the term. I don’t think that is really a practical means of payment.

The central bank governor opined: “What I think is to be determined is, if we are much more likely to be living in a world of digital currency than old fashioned sort of payment methods, precisely what form of digital currency, digital use, becomes the one that becomes the accepted norm.”

While confirming that he does not hold any crypto himself, Bailey said:

I am probably not liked by the advocates of bitcoin because I have said I don’t think it has any intrinsic value.

“It can have extrinsic value in the sense that people want to own it — people collect all sorts of things — but it doesn’t have intrinsic value,” he noted.

Bailey has never been a fan of bitcoin or crypto. He said last month that crypto creates an “opportunity for the downright criminal.” In March last year, he said cryptocurrencies are “dangerous.” In November, Bailey voiced concerns about El Salvador adopting bitcoin as legal tender alongside the U.S. dollar.

His comments echo what Christine Lagarde said Sunday that crypto is “based on nothing.” The president of the European Central Bank (ECB) added: “There is no underlying asset to act as an anchor of safety.” In May last year, Lagarde similarly said that crypto has no intrinsic value, and investors should be prepared to lose all of their money.

What do you think about the comments by the British central bank governor? Let us know in the comments section below.

Guggenheim’s Scott Minerd Sees a Lot More Downside to Crypto Market — Predicts Bitcoin Could Fall to $8K

Guggenheim's Scott Minerd Sees a Lot More Downside to Crypto Market — Predicts Bitcoin Could Fall to $8K

Guggenheim Chief Investment Officer Scott Minerd Says there’s a lot more downside to crypto after the market plunged. He has predicted that the price of bitcoin could fall to $8K.

Guggenheim’s Scott Minerd Predicts the Future Outlook for Bitcoin, Crypto

Bitcoin bear Scott Minard, global chief investment officer of Guggenheim Partners, shared his recent predictions on bitcoin and the crypto sector in an interview Monday with CNBC at the World Economic Forum in Davos, Switzerland.

Commenting on the recent crypto market decline, Minerd said: “We are seeing crypto collapse the way it is. I think it’s got more downside.”

He was asked how much more downside. “When I look at bitcoin, which the technicals have been better than anything else,” the Guggenheim CIO explained:

When you break below $30,000 consistently, $8,000 is the ultimate bottom, so I think we have a lot more room to the downside, especially with the Fed being restrictive.

“Let’s face it, most of these currencies are – they are not currencies, they are junk. The majority of crypto is garbage. So, there are going to be survivors,” he continued.

Noting that there are over 19,000 cryptocurrencies, Minard was asked specifically if bitcoin was junk. He replied:

I think ethereum, I think bitcoin will be survivors.

“I don’t think you’ve seen the dominant player in crypto yet,” he further said.

“This is like the Internet bubble,” Minerd noted, referring to the dot-com bubble of the early 2000s. “If we were sitting here in the internet bubble, we would be talking about how Yahoo and America Online were the great winners,” he said. “Everything else, we couldn’t tell you if Amazon or Pets.com was going to be the winner.”

He explained that a currency needs to be a store value, a medium of exchange, and a unit of account. “I don’t think we have had the right prototype yet for crypto,” he said, noting that for crypto, “None of these things pass, they don’t even pass on one basis.”

What do you think about Guggenheim’s Scott Minerd’s comments and predictions? Let us know in the comments section below.

LUNA Investor Arrested for Knocking on Do Kwon’s Door After Losing $2.4 Million in Terra Crash

LUNA Investor Arrested for Knocking on Do Kwon's Door After Losing $2.4 Million in Terra Crash

A crypto investor has been arrested after knocking on Do Kwon’s door following the collapse of cryptocurrency terra (LUNA) and stablecoin terrausd (UST). He lost about $2.4 million and is now under investigation by the South Korean police. “I felt like I was going to die,” he said about losing his investments.

Investor Under Investigation for Going to Do Kwon’s Home

The collapse of cryptocurrency terra (LUNA) and stablecoin terrausd (UST) has wiped out a large number of investors. One investor in particular sought direct answers from Kwon Do-hyung (aka Do Kwon), CEO of Terraform Labs who is behind the two cryptocurrencies.

The investor, known as “Chancers,” is a Korean social media personality who conducts streams on cryptocurrency-related topics. He lost around 3 billion won ($2.4 million) in the LUNA and UST collapse. He told BBC News:

I felt like I was going to die. I lost a lot of money in a short period of time. Around $2.4m of my cryptocurrency was wiped out.

He explained that he was angry with the lack of communication from Do Kwon after LUNA and UST went into freefall. He then searched online and found Kwon’s home address in Seoul.

“I wanted to ask him about his plans for LUNA,” Chancers said. “I suffered a huge loss and wanted to talk to him directly.”

The frustrated investor traveled across his home city and knocked on Kwon’s door on May 12. He streamed the event on his online channel; about 100 people were watching at the time.

However, after ringing the doorbell of Kwon’s condominium, his wife answered the door and said her husband was not home. She also called the police but Chancers already left the building when they arrived.

The investor found out the next day that the police were looking for him. He then surrendered himself at Seoul’s Seongdong Police Station on the morning of May 13.

“I surrendered myself to the police station twice,” Chancers stressed, insisting: “I didn’t trespass on Do Kwon’s property, but according to Korean law, it’s illegal to just go there and try to talk. I didn’t know.”

Chancers told the news outlet that he expects to face a fine and a criminal record that could make his life difficult. He opined:

It’s so hard. I lost a lot of money and now I’m being investigated by the police. I originally served as a civil servant in Korea. But if I am convicted of this case, I may not be able to return to the civil service again.

“In Korean culture, the problem itself is not important but rather the fact that it caused a scandal,” he explained. “I even had to apologize publicly as a sinner. I had no idea this would be so big. It’s very sad.”

Do Kwon claims that he has been in Singapore since December last year. However, he dissolved Terraform Labs Korea and shut down the company’s Korean offices just days before LUNA and UST collapsed.

South Korean authorities have launched an emergency investigation into the implosion of the two coins. This week, the Korean police asked crypto exchanges to freeze the assets of the Luna Foundation Guard.

Do you think it was wrong for the investor to knock on Do Kwon’s door after he lost millions in the LUNA and UST crash? Let us know in the comments section below.

Crypto Firms Launch Community-Powered Scam Reporting Platform ‘Chainabuse’

Crypto Firms Launch Community-Powered Scam Reporting Platform 'Chainabuse'

Several crypto firms, including Binance and Circle, have launched a new crypto scam reporting platform. The tool “empowers anyone in the crypto economy to warn others about scams, hacks or other fraudulent activity as they encounter it.”

New Crypto Scam Reporting Platform Launched

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.

The announcement describes:

Reports on the same addresses or entities are consolidated and housed in a searchable database, which anyone can use to proactively check addresses or projects before engaging with them.

At the time of writing, there are 624 reports showing on the platform, including over 100 scams related to Ukraine’s crypto fundraising campaigns.

Chainabuse explained that it does not file reports with law enforcement on behalf of users, emphasizing that the purpose of filing a report is primarily to alert others to the scam. However, the platform’s FAQ page explains:

Filing a report on Chainabuse may help surface multiple victims of the same scam and provides victims the ability to opt in to contact from law enforcement.

“We encourage all victims of cryptocurrency exploits to consider filing a report with the FBI’s IC3, Europol or the relevant law enforcement agency in their jurisdiction,” the Chainabuse team noted.

What do you think of Chainabuse and will you be using it? Let us know in the comments section below.

India’s Central Bank Governor Warns About Crypto After Collapse of Terra LUNA, UST

India's Central Bank Governor Warns About Crypto After Collapse of Terra LUNA, UST

India’s central bank, the Reserve Bank of India (RBI), has warned about investing in the crypto market following the collapse of cryptocurrency terra (LUNA) and stablecoin terrausd (UST). “We have been cautioning against crypto and look at what has happened to the crypto market now,” said Governor Shaktikanta Das.

RBI’s Governor on Crypto Market and Regulation

The governor of the Reserve Bank of India (RBI), Shaktikanta Das, discussed the crypto market downturn and the regulation of crypto assets in an interview with CNBC TV18 Monday.

“We have been cautioning against crypto and look at what has happened to the crypto market now,” the governor said, stressing:

Had we been regulating it already, then people would have raised questions about what happened to regulations.

The crypto market has shed over $1.5 trillion since November last year and almost $500 billion since the beginning of the month. The market slump was exacerbated by the fall of cryptocurrency terra (LUNA) and algorithmic stablecoin terrausd (UST).

Describing cryptocurrency, Das said: “This is something whose underlying (value) is nothing.” He added:

There are big questions on how do you regulate it. Our position remains very clear, it will seriously undermine the monetary, financial and macroeconomic stability of India.

The RBI also recently warned that crypto could lead to the dollarization of the Indian economy.

The governor believes that the Indian government shares the central bank’s stance on crypto. “We have conveyed our position to the government and they will take a considered call,” the central bank chief noted. “I think the utterances and statements coming out from the government are more or less in sync. They are also equally concerned.”

Das was also asked about the statement made by Brian Armstrong, the CEO of cryptocurrency exchange Coinbase, who claimed that Coinbase India disabled payments by the Unified Payments Interface (UPI) days after launch due to “informal pressure” from the RBI.

“I would not like to react on speculative observations made by individuals outside,” the governor replied.

The Indian government has been working on cryptocurrency legislation for quite some time. Finance ministry officials have been consulting with the International Monetary Fund (IMF) and the World Bank on crypto regulation. Indian Finance Minister Nirmala Sitharaman said in April that the decision on crypto regulation will not be rushed.

Meanwhile, cryptocurrency income is currently taxed at 30% in India, and a 1% tax deducted at source (TDS) will start levying on crypto transactions in July.

What do you think about the comments by the RBI governor? Let us know in the comments section below.

Veteran Investor Jim Rogers Optimistic About Future of Crypto Money

Veteran Investor Jim Rogers Optimistic About Future of Crypto Money

Renowned investor Jim Rogers, who co-founded the Quantum Fund with billionaire investor George Soros, says he has “optimism about the future of crypto money.” However, he is skeptical of central bank digital currencies and warned that the world is looking for something to replace or compete with the U.S. dollar.

Jim Rogers on Bitcoin, Crypto, and U.S. Dollar

Veteran investor Jim Rogers shared his outlook for cryptocurrency and the U.S. dollar in an interview published by the Economic Times Markets Sunday. Rogers is George Soros’ former business partner who co-founded the Quantum Fund and Soros Fund Management.

Despite the Fed and other central banks stating that they would start normalizing, Rogers stressed, “There are still gigantic amounts of money printing all over the world.” He opined:

One should not listen to these guys. They rarely tell the truth … The U.S. Fed has more than doubled their balance sheet in the very short period of time.

He added: “Even if they cut back for a while, it is not going to be enough to make up for the gigantic money printing that has been going on.”

Commenting on the future outlook for the U.S. dollar, Rogers said: “I do not like saying it but the U.S. is the largest debtor nation in world history and the world is looking for something to replace it or compete with the dollar.”

He explained that after Russia began its invasion of Ukraine, the U.S. just blocked Russia’s assets. Reiterating that “America just took the Russian’s money away,” Rogers warned:

Well, people do not like that and so many countries in the world … are looking for something to compete with the U.S. dollar.

Rogers also discussed cryptocurrency during the interview. Replying to a question about whether he owns any bitcoin, the veteran investor revealed:

I do not own any cryptocurrency. I wish I had bought bitcoin at $1, at $5.

The Quantum Fund co-founder proceeded to talk about central bank digital currencies (CBDCs). He opined: “I do not have great confidence in the future of government cryptocurrencies that all the governments are working on putting money on the computer. It will be their money.”

Rogers continued:

I have optimism about the future of crypto money but not government crypto money.

However, he cautioned: “Governments do not like competition. They like to keep their monopoly.”

Rogers previously warned that governments could ban BTC and all other cryptocurrencies. “If cryptocurrencies become successful, most governments will outlaw them, because they don’t want to lose their monopoly,” he said.

What do you think about Jim Rogers’ comments? Let us know in the comments section below.

Korean Police Ask Crypto Exchanges to Freeze Luna Foundation Guard’s Assets

Korean Police Ask Crypto Exchanges to Freeze Luna Foundation Guard's Assets

The South Korean police have reportedly launched an investigation into possible embezzlement involving an employee of Terraform Labs. To prevent fund transfers, the police have requested crypto exchanges to freeze the Luna Foundation Guard’s accounts.

Embezzlement Investigation and Asset Freeze

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.

However, the police’s freeze request is not a compulsory matter according to Korean laws and regulations but a matter that needs to be arbitrarily performed by each crypto exchange. Therefore, it has not been confirmed whether the freeze requests have been carried out, the publication conveyed.

Cryptocurrency terra (LUNA) and stablecoin terrausd (UST) collapsed earlier this month after UST lost its peg to the U.S. dollar.

Following the collapse, the Korean government launched an emergency investigation into the two coins and met with representatives of the country’s top crypto exchanges to discuss measures to prevent similar incidents from happening.

Last week, a number of victims filed a lawsuit against Terraform Labs CEO Kwon Do-hyung (aka Do Kwon) with the Seoul Southern District Prosecutors Office on charges of violating the Act on the Aggravated Punishment of Specific Economic Crimes (fraud) and the Act on the Regulation of Similar Receipts.

In addition, Do Kwon dissolved Terraform Labs Korea days before the collapse of LUNA and UST. While many suspected foul play, Kwon claimed that the timing was just “coincidental.” He also claims that his company does not owe the Korean government any taxes.

What do you think about this case? Let us know in the comments section below.

Bitmex Co-Founder Arthur Hayes Avoids Prison for Violating US Bank Secrecy Act

Bitmex Co-Founder Arthur Hayes Avoids Prison for Violating US Bank Secrecy Act

Bitmex co-founder Arthur Hayes is not going to prison for violating the U.S. Bank Secrecy Act. Instead, the former crypto exchange CEO has been sentenced to “six months of home detention and two years of probation.” Hayes has agreed to pay a fine of $10 million.

Bitmex’s Arthur Hayes Sentenced

The U.S. Department of Justice (DOJ) announced Friday that the founder and former CEO of cryptocurrency derivatives exchange Bitmex has been sentenced for violating the Bank Secrecy Act (BSA). Hayes pleaded guilty to violating the Bank Secrecy Act in February.

The DOJ states:

Hayes, 36, of Miami, Florida, was sentenced to six months of home detention and two years of probation. Hayes also agreed to pay a fine of $10 million dollars representing his pecuniary gain from the offense.

U.S. Attorney Damian Williams explained that while building a cryptocurrency trading platform “that profited him millions of dollars,” Hayes “willfully defied U.S. law that requires businesses to do their part to help in preventing crime and corruption.”

Williams added: “He intentionally failed to implement and maintain even basic anti-money laundering policies, which allowed Bitmex to operate as a platform in the shadows of the financial markets.”

Two other Bitmex co-founders, Benjamin Dalo and Sam Reed, also pleaded guilty and are scheduled to be sentenced in the near future.

Like Hayes, the two other co-founders have also been ordered to pay $10 million each in a civil monetary penalty.

What do you think about Arthur Hayes’ sentence? Let us know in the comments section below.

CFTC Chairman Confirms Bitcoin, Ether Are Commodities

CFTC Chairman Confirms Bitcoin, Ether Are Commodities

The chairman of the U.S. Commodity Futures Trading Commission (CFTC) says he is certain bitcoin and ether are commodities. He outlined how his agency is working with the U.S. Securities and Exchange Commission (SEC) to regulate the crypto sector, noting that “there are no customer protections right now in the crypto market.”

Bitcoin and Ether Are Commodities ‘For Sure’

CFTC Chairman Rostin Behnam discussed the regulation of cryptocurrencies by the CFTC and the SEC in an interview with CNBC last week.

The chairman was asked to comment on a bill in Congress that puts the SEC in charge of security tokens and the CFTC in charge of commodity tokens.

“This is a little bit of an age-old issue between the CFTC and the SEC. We have a great relationship historically … Within this space, in my view, it makes sense for commodities to be regulated by the Commodity Futures Trading Commission and securities to be regulated by the SEC,” Behnam detailed.

The CFTC boss noted that within the crypto space, there will be some coins that are securities and some that are commodities.

When asked to comment on SEC Chairman Gary Gensler’s claim that most of the crypto tokens out there are securities, Behnam stressed that the largest cryptocurrencies are commodities. He emphasized:

Well, I can say for sure bitcoin … is a commodity. Ether as well.

Admitting that there may be a lot of security coins, the CFTC chief noted, “there are plenty of community coins.” He clarified: “I think it makes sense that each agency has jurisdiction over commodities and securities respectively.”

The CFTC chairman was asked whether there is any disagreement between the two agencies. “I wouldn’t say there is disagreement,” he replied, emphasizing that each agency tries to do what’s best.

Commenting on the crypto market sell-off last week, Behnam said:

A lot of people got hurt. A lot of value was lost in the market, and there really are no customer protections right now.

He concluded that both the CFTC and the SEC want to regulate the crypto sector “thoughtfully,” protect customers, and protect financial stability.

What do you think about the comments by the CFTC chairman? Let us know in the comments section below.

Bill Gates: Crypto Has No Valuable Output — It’s Not Adding to Society Like Other Investments

Bill Gates: Crypto Is 'Not Adding to Society Like Other Investments'

Microsoft co-founder Bill Gates has explained why he does not own any bitcoin or other cryptocurrencies. “I like investing in things that have valuable output,” Gates said, adding that crypto is “not adding to society like other investments.”

Bill Gates on Crypto, and Why He Isn’t Investing

Microsoft co-founder Bill Gates shared his opinion about bitcoin and cryptocurrencies in a Reddit AMA (Ask Me Anything) session Thursday.

One of the questions he was asked was “What do you think about bitcoin and cryptocurrencies?” Gates replied:

I don’t own any. I like investing in things that have valuable output.

He added: “The value of companies is based on how they make great products. The value of crypto is just what some other person decides someone else will pay for it so not adding to society like other investments.”

Gates’ stance on cryptocurrency echoes that of Berkshire Hathaway Warren Buffett. The Oracle of Omaha explained in detail why he would not invest in bitcoin or cryptocurrency earlier this month.

“It doesn’t produce anything,” Buffett described BTC, noting that he wouldn’t pay $25 for all of the bitcoin in the world. “What would I do with it? I’d have to sell it back to you one way or another. It isn’t going to do anything,” he opined.

The Microsoft co-founder and co-chair of the Bill and Melinda Gates Foundation has long been a critic of bitcoin and cryptocurrency.

In February last year, he said he didn’t own bitcoin, adding that he has taken “a neutral view.” However, he also said crypto was one tech innovation the world would be better off without. Gates noted: “The way cryptocurrency works today allows for certain criminal activities. It’d be good to get rid of that.”

Gates also commented on Tesla CEO Elon Musk owning bitcoin in February last year. “Elon has tons of money, and he’s very sophisticated, so I don’t worry that his bitcoin will randomly go up or down,” Microsoft co-founder said. “If you have less money than Elon, you should probably watch out,” he warned.

What do you think about Bill Gates’ comments about bitcoin and cryptocurrency? Let us know in the comments section below.

Rich Dad Poor Dad’s Robert Kiyosaki Thinks Bitcoin Could Bottom Out at $9K — Reveals Why He Remains Bullish

Rich Dad Poor Dad's Robert Kiyosaki Thinks Bitcoin Could Bottom Out at $9K — Reveals Why He Remains Bullish

The famous author of the best-selling book Rich Dad Poor Dad, Robert Kiyosaki, has explained why he is still bullish about bitcoin. He’s waiting for the cryptocurrency to test a new bottom before getting in, which he indicated could be as low as $9K.

Kiyosaki Believes the Price of Bitcoin Could Fall to $9K

The author of Rich Dad Poor Dad, Robert Kiyosaki, is still bullish about bitcoin. He’s waiting for the price of BTC to test a new bottom before getting in.

Rich Dad Poor Dad is a 1997 book co-authored by Kiyosaki and Sharon Lechter. It has been on the New York Times Best Seller List for over six years. More than 32 million copies of the book have been sold in over 51 languages across more than 109 countries.

Kiyosaki tweeted Wednesday, “I remain bullish on bitcoin’s future.” He added that he’s waiting for bitcoin to test a new bottom, suggesting that it could be $20K, $14K, $11K, or even $9K.

The famous author proceeded to explain why he’s still bullish about bitcoin. The Federal Reserve and the Treasury Department are corrupt organizations and they will self-destruct before they regain honesty, integrity, and moral compass, Kiyosaki described.

Rich Dad Poor Dad's Robert Kiyosaki Thinks Bitcoin Could Bottom Out at $9K — Reveals Why He Remains Bullish

Last week, Kiyosaki tweeted that he’s waiting for the bottom before getting into bitcoin. At the time, he expected the bottom to be around $17K but later said that it could even be lower, at $11K.

This was also not the first time Kiyosaki has expressed his distrust towards the Biden administration, the Treasury, and the Fed. The famous author has also been recommending bitcoin to investors for quite some time.

In March, Kiyosaki said the U.S. dollar was about to implode, blaming President Biden for causing inflation. He recommended gold, silver, bitcoin (BTC), ethereum (ETH), and solana (SOL) as investments at the time.

However, Kiyosaki also previously warned that crypto is not without its problem. He cautioned that eventually, the government will seize all cryptocurrencies and fold them into a government crypto. Nonetheless, he said that the Russia-Ukraine war is “giving rise to crypto as a safer haven than government fake fiat money.”

What do you think about Robert Kiyosaki’s comments? Let us know in the comments section below.

Kevin O’Leary Expects US Crypto Regulations to Come Out After Midterm Elections

Kevin O'Leary Expects US Crypto Regulations to Come Out After Midterm Elections

Shark Tank star Kevin O’Leary, aka Mr. Wonderful, says U.S. crypto regulations will not come out until after the midterm elections. He explained that President Joe Biden “is not interested in discussing crypto” when his approval ratings have sunk to record lows. O’Leary also cited other factors, including double-digit inflation and high food and gas prices.

Kevin O’Leary on Crypto Regulation, Biden’s Policy

Shark Tank star Kevin O’Leary talked about bitcoin and cryptocurrency regulation in an interview with Stansberry Research, published Friday.

He was asked how far away the U.S. Securities and Exchange Commission (SEC) is from approving a spot bitcoin exchange-traded fund (ETF).

“It’s a long way away,” O’Leary replied. “That’s not what’s going to happen first. I think what’s going to happen first is we are going to see policy on stablecoins.” He cited two bills that have been proposed for the regulation of stablecoins. One was introduced by Senator Bill Hagerty and the other by Senator Pat Toomey.

Noting that a bill on stablecoins will be easy to pass after the midterm elections, he emphasized:

Nothing’s gonna happen until after the midterms. Biden is not interested in discussing crypto when his poll ratings are, you know whatever it is, sub-31%. That’s not a place where he wants to go, so you’re gonna have to wait until after the midterms.

Mr. Wonderful noted that when Biden issued the encouraging executive order on crypto, his ratings were higher. A new poll shows that President Joe Biden’s approval rating dipped to the lowest point of his presidency in May; only 39% of U.S. adults approve of his performance as president.

The U.S. midterm elections are scheduled for Nov. 8. If the Republican Party gains control of either or both chambers, it will have the power to thwart the president’s plans.

O’Leary explained that crypto is not one of the “issues that when you are declining in the polls, you become a champion of. That doesn’t help you.”

Noting that “The market is correcting … People are getting gas at the pump, going to the driving season, at unheard-of prices the last 20 years. The price of protein’s up 20% to 40%,” the Shark Tank star said:

Biden’s facing close to double-digit inflation … He’s not sitting around worrying about crypto.

In addition, O’Leary described that there are a lot of different proposals coming out of the SEC around climate change, crypto, and bitcoin mining. “So it’s a very volatile situation right now,” he said.

Mr. Wonderful was also asked if he thinks this crypto winter will be a long one and where the market will head now.

“The forecasts for bitcoin have never been accurate. No one’s been able to forecast its volatility,” he opined. “And you know, the speculation that it was going to be a hedge against inflation was just flat out wrong.” He continued:

I’d argue that the volatility of bitcoin is going to remain very akin to what Amazon was for the first 15 years — 30% to 50% corrections every 12 months.

He explained the reason was that “There was no institutional support in the early days of Amazon.” The Shark Tank star asserted: “That’s the same right now for bitcoin … People talk about institutions owning it. That’s just not true. They don’t own any of it and they won’t until the SEC rules on it.”

What do you think about the comments by Kevin O’Leary? Let us know in the comments section below.

Facebook Owner Meta Files Trademark Applications for ‘Meta Pay’ Covering Crypto Services

Facebook Owner Meta Files Trademark Applications for 'Meta Pay' Covering Crypto Services

Meta Platforms Inc., formerly Facebook, has filed five trademark applications for “Meta Pay.” The filings cover a wide range of cryptocurrency services. The company is renaming Facebook Pay to Meta Pay.

Trademark Applications for Meta Pay

Meta Platforms Inc., formerly Facebook, filed five trademark applications for “Meta Pay” with the United States Patent and Trademark Office (USPTO) last week.

Trademark attorney Josh Gerben tweeted explaining Wednesday that, in his opinion, Meta’s applications indicate the company is planning to launch a payment platform called Meta Pay for users to exchange regular fiat money for cryptocurrencies.

Meta’s head of fintech, Stephane Kasriel, explained last week that the company is “investing more” in its existing payments experiences, noting that it has been in payments since 2009.

“Today, people and businesses use our platforms to make payments in 160 countries and 55 currencies,” Kasriel wrote, elaborating:

The experience that people see today is Facebook Pay, but we’ll be bringing that closer to the Meta brand soon by renaming it Meta Pay.

In March, Meta filed eight trademark applications for its logo covering the metaverse as well as a wide range of cryptocurrency services.

What do you think about Meta filing trademark applications for Meta Pay? Let us know in the comments section below.

G7 Finance Leaders Call for Swift and Comprehensive Crypto Regulation

G7 Finance Leaders Call for Swift and Comprehensive Crypto Regulation

The G7 finance ministers and central bank governors have called for a swift and comprehensive regulation of crypto assets. The G7 decision followed the recent crypto market turmoil, including the collapse of cryptocurrencies LUNA and UST.

G7 Countries Calling for Swift, Comprehensive Regulation of Crypto Assets

The finance ministers and central bank governors from the Group of Seven (G7) industrialized nations convened in Bonn and Königswinter, Germany, on May 18–20.

Among the topics they discussed was the regulation of crypto assets following the recent market turmoil and the collapse of cryptocurrency terra (LUNA) and algorithmic stablecoin terrausd (UST).

“The G7 supports work by the Financial Stability Board (FSB) to monitor and address financial stability risks arising from all forms of crypto-assets, and welcomes increasing global cooperation to address regulatory issues associated with the use of crypto-assets, including in cross-border payments,” according to the communique summarizing the finance leaders’ key decisions, published Friday.

The G7 finance chiefs added:

In light of the recent turmoil in the crypto-asset market, the G7 urges the FSB … to advance the swift development and implementation of consistent and comprehensive regulation of crypto-asset issuers and service providers.

The FSB will work “in close coordination with international standard-setters” on crypto regulation “with a view to holding crypto-assets, including stablecoins, to the same standards as the rest of the financial system,” the communique further details.

“In particular, the G7 calls for rapid implementation of the Financial Action Task Force (FATF) ‘travel rule’ and stronger disclosure and regulatory reporting, for instance, as regards reserve assets backing stablecoins,” the finance leaders continued, adding:

We reaffirm that no global stablecoin project should begin operation until it adequately addresses relevant legal, regulatory and oversight requirements through appropriate design and by adhering to applicable standards.

“The G7 remains committed to high regulatory standards for global stablecoins, following the principle of same activity, same risk, same regulation,” the communique concludes.

Following the collapse of LUNA and UST, a number of countries have independently called for an urgent regulation of crypto assets, particularly stablecoins.

In the U.S., Treasury Secretary Janet Yellen told Congress last week that it is important and urgent to regulate stablecoins. She mentioned the fall of terrausd by name. The U.K. government also reaffirmed its commitment to regulate stablecoins this week.

What do you think about the G7 financial chiefs calling for a swift and comprehensive regulation of crypto assets? Let us know in the comments section below.

SEC Chair Gensler Warns a Lot of Crypto Tokens Will Fail Following LUNA, UST Collapse

SEC Chair Gensler Warns a Lot of Crypto Tokens Will Fail Following LUNA, UST Collapse

The chairman of the U.S. Securities and Exchange Commission (SEC), Gary Gensler, has warned that a lot of crypto tokens will fail and many crypto investors will get hurt following the collapse of terra (LUNA) and stablecoin terrausd (UST).

SEC Chair Gensler’s Warning After LUNA and UST Collapse

U.S. Securities and Exchange Commission Chairman Gary Gensler expressed his concerns Wednesday that more crypto investors will be harmed following the implosion of cryptocurrency terra (LUNA) and stablecoin terrausd (UST).

He told reporters after a House Appropriations Committee panel hearing:

I think a lot of these tokens will fail … I fear that in crypto… there’s going to be a lot of people hurt, and that will undermine some of the confidence in markets and trust in markets writ large.

Last week, algorithmic stablecoin UST lost its peg to the U.S. dollar, sending its price and the price of cryptocurrency LUNA into free fall.

The collapse of the two cryptocurrencies has caused grave concerns among regulators and lawmakers. U.S. Treasury Secretary Janet Yellen cited the collapse of UST while calling for increased regulations of stablecoins last week.

Gensler said Wednesday that SEC-registered asset managers do not have significant exposure to crypto assets. However, he noted that his agency has less visibility into private funds, particularly family offices. The SEC chief believes that most cryptocurrencies out there are securities. He has been urging cryptocurrency trading platforms to approach the SEC and register.

“There is a path forward that we’re talking with these exchanges about to do both: to get the platforms registered and have a pathway for the tokens as well,” he said, noting that the agency has the authority to create exemptions where necessary. He added:

They should move towards getting registered or, you know, we’re going to be the cop on the beat, and we’re going to bring the enforcement actions.

However, Gensler has been heavily criticized by some for taking an enforcement-centric approach to regulating the crypto sector. He announced earlier this month that the SEC plans to nearly double the size of its Enforcement Division’s crypto unit.

The SEC chairman indicated Wednesday that his agency does not have enough resources to adequately police financial markets. He stressed:

We’re really outpersonned.

Commenting on the SEC lacking resources, U.S. Representative Tom Emmer tweeted to Gensler:

You put all of the SEC’s taxpayer funded resources into crypto crackdowns. Now you don’t have the funds to do your actual job so you’re coming to Congress for more? You’ve got to be kidding me.

What do you think about Gary Gensler’s comments and his crypto regulatory approach? Let us know in the comments section below.

Microstrategy CEO Expects Bitcoin to ‘Go Into the Millions’ Despite Crypto Market Sell-Off

Microstrategy CEO Expects Bitcoin to 'Go Into the Millions' Despite Crypto Market Sell-Off

Microstrategy’s CEO has predicted that bitcoin is “going to go into the millions” despite the recent cryptocurrency market sell-off. Noting that the cryptocurrency is the future of money, he said: “We are in it for the long term.”

Microstrategy Sees Bitcoin as the Future of Money

The CEO of the Nasdaq-listed software company Microstrategy, Michael Saylor, shared his bitcoin outlook Thursday in an interview with Yahoo Finance Live.

The executive is still bullish on bitcoin despite the recent sell-off. He was asked whether there is a price target at which Microstrategy will start liquidating some of its bitcoins. The company is currently hodling 129,218 BTC.

“No,” the CEO replied, emphasizing, “we are in it for the long term.” He elaborated: “Our strategy is to buy bitcoin and hold the bitcoin, so there’s no price target. I expect we’ll be buying bitcoin at the local top forever.” He continued:

I expect bitcoin is going to go into the millions. So, we’re very patient. We think it’s the future of money.

Commenting on cryptocurrency regulation, he noted that “There’s been a deadlock in D.C. and on Capitol Hill around stablecoin regulations and around securities token regulations.” Saylor added that “the Administration wants to move faster” but “Congress is moving slower.”

The Microstrategy chief opined:

I think this meltdown of LUNA, UST, that’s going to accelerate the regulations of stablecoins and security tokens, which will be a good thing for the industry.

“Over time, I think as people get educated and as they get more comfortable, I think we’ll recover from this drawdown,” he concluded.

Saylor has long been bullish on bitcoin. In February, he said there’s evidence of a lot more institutional adoption. In November last year, he said bitcoin will emerge as a $100 trillion asset class.

What do you think about the comments by Microstrategy’s CEO? Let us know in the comments section below.

Do Kwon Dissolved Terraform Labs Korea Days Before Collapse of Terra LUNA, UST

Do Kwon Dissolved Terraform Labs Korea Days Before Collapse of Terra LUNA and UST

Official records show Do Kwon dissolved Terraform Labs Korea, closing down its headquarters and sole branch just days before the collapse of terra crypto (LUNA) and stablecoin terrausd (UST).

Do Kwon Shut Down Terraform Labs Korea Before UST and LUNA Fallout

Terraform Labs founder Do Kwon reportedly closed down his company in Korea days before the collapse of cryptocurrency terra (LUNA) and stablecoin terrausd (UST).

According to South Korea’s supreme court registry office, Terraform Labs Korea decided to dissolve its Busan headquarters and Seoul branch at the general shareholders meeting on April 30, Digital Today reported. The company named CEO Kwon Do-hyeong, the full name of Do Kwon, as the liquidator.

The publication detailed:

On May 4, Terraform Labs Korea’s headquarters was dissolved and on May 6, the Seoul branch was dissolved.

Do Kwon Dissolved Terraform Labs Korea Days Before Collapse of Terra LUNA and UST

On May 9, UST lost its peg to the U.S. dollar and its price kept falling. At the time of writing, it is trading at about $0.08. LUNA also sharply fell from above $80 on April 30 to $0.00013351 at the time of writing.

While Terraform Labs is a Singapore-incorporated company, it was registered to conduct business in South Korea as Terraform Labs Korea, with headquarters in Busan and a branch in Seongdong District in eastern Seoul.

Kwon founded Terraform Labs Korea on June 21, 2019. On Sept. 26, 2019, Ticket Monster (Tmon) founder Shin Hyun-sung joined the company as the second co-founder. However, he resigned on March 2, 2020, leaving Kwon to serve as the CEO of Terraform Labs.

An on-chain analysis by blockchain data analytics firm Elliptic found that amid the UST and LUNA fallout, the Luna Foundation Guard (LFG) sent its bitcoin reserves to cryptocurrency exchanges Gemini and Binance.

What do you think about Kwon shutting down his company in South Korea a week before the collapse of UST and LUNA? Let us know in the comments section below.

Bank of England’s Cunliffe Warns Crypto Will See Tough Times as Federal Reserve Tightens Financial Conditions

Bank of England’s Cunliffe Warns Crypto Will See Tough Times as Federal Reserve Tightens Financial Conditions

Bank of England’s deputy governor for financial stability, Sir Jon Cunliffe, has warned of hard times ahead for cryptocurrency investors as the Federal Reserve and other central banks tighten monetary policy.

Bank of England’s Executive Warns About Crypto

Sir Jon Cunliffe, deputy governor for financial stability at the Bank of England (BOE), had a warning for crypto investors at a Wall Street Journal conference Tuesday, Reuters reported.

The Bank of England executive cautioned that crypto investors should expect more difficult times ahead. He explained that as the Federal Reserve and central banks around the world tighten financial conditions, investors will be more attracted to safer assets.

Replying to a question about whether rising interest rates would ramp up pressure on cryptocurrencies, Cunliffe was quoted as saying:

Yes, I think as this process continues, as (quantitative tightening) starts in the U.S. … I think we’ll see a move out of risky assets.

Federal Reserve Chairman Jay Powell said last week that the Fed will continue tightening monetary policy until it sees “clear and convincing” evidence that inflation is falling to the target rate of 2%.

Cunliffe also discussed another factor affecting the crypto market. Noting the Russia-Ukraine war is prompting investors to move funds into safer assets, he advised:

When there’s a move out of risky assets, you would expect the most speculative assets to be the ones most affected.

In November last year, Cunliffe said that cryptocurrency’s threat to the stability of the British financial system was “getting closer,” urging regulators to take action.

In December, he said that the value of cryptocurrencies could fall sharply, stating: “Their price can vary quite considerably and they could theoretically or practically drop to zero.”

What do you think about Sir Jon Cunliffe’s comments? Let us know in the comments section below.

Finder’s Panel Predicts Death of Shiba Inu Crypto — SHIB Expected to Have No Value by 2030

Finder's Panel Predicts Death of Shiba Inu Crypto — SHIB Expected to Have No Value by 2030

A panel of specialists at Finder has predicted the death of shiba inu (SHIB) cryptocurrency. The majority believes that the price of the meme crypto will eventually fall to zero. In addition, “Our panel is overwhelmingly out on SHIB, with 73% saying that now is the time to sell.”

SHIB’s Price Prediction

Leading price comparison portal Finder.com updated its price prediction for the shiba inu cryptocurrency last week. “Finder surveyed a panel of 36 fintech specialists in April for their thoughts on how shiba inu will perform over the next decade,” the company explained.

“Things are not looking good for the meme coin shiba inu,” Finder remarked, adding that “It’s a matter of when, not if, we’ll see the death of shiba inu, according to the majority of Finder’s shiba inu price predictions report panel.”

The company explained that at the time of the survey, the price of SHIB was $0.00002029, and the panel expected it to drop 7.6% to $0.000018750 by the end of 2022. However, at the time of writing, SHIB is already trading at a lower price of $0.00001187.

Finder told Bitcoin.com News:

70% of the panel say SHIB will have no value by the end of 2030.

Specifically, “The panel expects the token’s value to continue to plummet and be worth $0.000002500 to close out 2025 and $0.000000325 by the end of 2030,” the company wrote.

The specialists came up with several factors that will impact the price of the meme cryptocurrency this year. 82% said that meme coin hype will have the most effect on the price of SHIB. The next biggest factor is inclusion on major brokerage platforms like Robinhood. Other factors include the launch of Shibaswap, the burning of SHIB tokens, and the number of businesses accepting shiba inu as payment.

One of the specialists on the panel was Matthew Harry, head of funds at Digitalx Asset Management. He expects meme coins, including SHIB, to disappear altogether as the crypto market matures, stating:

This market is maturing and things like SHIB will die as capital begins to flow to quality and value rather than being scattered across the field in the hope that every player wins a prize. That’s not how things work. Hype dies, value rises.

Another specialist on the panel was a fintech lecturer at Swinburne University of Technology, Dimitrios Salampasis, who made a similar prediction that SHIB will eventually be worthless. “I am of the opinion that all these joke-type coins will disappear and leave space for actual innovation and cryptoassets that can serve proper use cases,” he stressed.

When asked about whether it is time to buy, sell, or hold shiba inu, the specialists said:

Our panel is overwhelmingly out on SHIB, with 73% saying that now is the time to sell. Just 23% say you should hold onto your SHIB and only 3% think you should buy.

What do you think about the SHIB and meme coin predictions by Finder’s specialists? Let us know in the comments section below.

Robinhood Launching New Non-Custodial Web3 Crypto Wallet

Robinhood Launching Non-Custodial, Web3 Cryptocurrency Wallet

Trading platform Robinhood is launching a non-custodial, web3 cryptocurrency wallet. “Customers will be able to hold the keys for their own crypto,” the company said.

Robinhood Building Non-Custodial, Web3 Wallet

Popular trading platform Robinhood announced Tuesday that it is “building a brand new non-custodial, web3 wallet that will allow customers to have total control of their crypto.”

The announcement details:

This new, multichain, web3 wallet will launch as a standalone app … Customers will be able to hold the keys for their own crypto.

In addition, customers will be able to “trade and swap crypto with no network fees,” “earn yield using their assets,” store non-fungible tokens (NFTs), and connect to NFT marketplaces, Robinhood explained.

Vlad Tenev, co-founder and CEO of Robinhood, commented: “At Robinhood, we believe that crypto is more than just an asset class … Our web3 wallet will make it easier for everyone to hold their own keys and experience all the opportunities that the open financial system has to offer.”

The announcement further notes that customers can sign up for Robinhood’s non-custodial wallet waitlist to get early access to the company’s new product. The company said:

We’ll begin inviting waitlist customers to join our Beta program later this summer and make the product generally available to all Robinhood customers by the end of the year.

Last month, Robinhood rolled out its custodial crypto wallets to more than two million customers.

With the upcoming non-custodial wallet launch, Robinhood will compete with the Nasdaq-listed cryptocurrency exchange Coinbase, which also offers a self-custodial wallet.

Coinbase CEO Brian Armstrong tweeted Monday that his company’s non-custodial wallet is now “the most downloaded mobile self-custody wallet in the U.S.” He noted: “And you don’t have to migrate anything over to use it – the same seed phrase can be used across multiple wallets.”

Robinhood recently began its European expansion by acquiring a regulated crypto firm based in the U.K.

What do you think about Robinhood launching a non-custodial, web3 crypto wallet? Let us know in the comments section below.

DOJ Files First Criminal Complaint Against US Citizen Allegedly Using Cryptocurrency to Evade Sanctions

DOJ Files First Criminal Complaint Against US Citizen Allegedly Using Cryptocurrency to Evade Sanctions

The Department of Justice (DOJ) has filed its first criminal complaint against an American who allegedly used cryptocurrency to circumvent U.S. sanctions. “The payments platform advertised its services as designed to evade U.S. sanctions, including through purportedly untraceable virtual currency transactions.”

DOJ Charges US Citizen in Crypto Sanctions Evasion Case

The U.S. Justice Department has filed its first criminal complaint against a U.S. citizen who allegedly tried to evade American sanctions using cryptocurrency, according to a judicial opinion document filed on Friday by U.S. Magistrate Judge Zia M. Faruqui. The case is still sealed.

Judge Faruqui explained why he approved the DOJ’s criminal complaint against the American citizen accused of transmitting more than $10 million worth of bitcoin to a crypto exchange in a comprehensively sanctioned country. Comprehensive sanctions are currently placed on Cuba, Iran, North Korea, Syria, and the regions of Crimea, Donetsk, and Luhansk.

The U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) has imposed fines against crypto exchange platforms for violating sanctions laws. However, the judge explained:

The Department of Justice can and will criminally prosecute individuals and entities for failure to comply with the OFAC’s regulations, including as to virtual currency.

The DOJ alleged that the defendant, a U.S. citizen, used an IP address in the U.S. “to conspire to operate an online payments and remittances platform” based in a comprehensively sanctioned country. The Justice Department noted:

The payments platform advertised its services as designed to evade U.S. sanctions, including through purportedly untraceable virtual currency transactions.

The defendant also opened an account with a U.S.-based cryptocurrency exchange to buy and sell bitcoin. The defendant then used this crypto exchange account to transmit over 10 million dollars worth of BTC between the U.S. and sanctioned countries for the platform’s customers. In doing so, the defendant conspired to violate the International Emergency Economic Powers Act (IEEPA) and defraud the United States, the DOJ detailed.

The judge further noted: “The question is no longer whether virtual currency is here to stay … but instead whether fiat currency regulations will keep pace with frictionless and transparent payments on the blockchain.”

What do you think about this case? Let us know in the comments section below.

Elon Musk: US Economy Is Probably in Recession That Could Last 18 Months — Warns It ‘Will Get Worse’

Elon Musk: US Economy Is Probably in Recession That Could Last 18 Months — Warns It 'Will Get Worse'

Tesla and Spacex CEO Elon Musk says that the U.S. economy is probably in a recession and it could be “tough going” for 12 to 18 months. He added: “The honest reason for inflation is that the government printed a zillion more money than it had.”

Elon Musk on U.S. Recession and Inflation

Elon Musk, the CEO of Tesla and Spacex, talked about the U.S. economy on the All-In podcast, published Monday.

Commenting on whether the U.S. economy is in a recession, Musk said:

We probably are in a recession and that recession will get worse but these things pass and then there will be boom times again … It’ll probably be some tough going for, I don’t know, a year, maybe 12-18 months.

He added that 12 to 18 months is roughly the amount of time for a correction to happen. Recession fears have escalated recently as the Federal Reserve tightens monetary policy to help cool down inflation.

Musk explained that in his opinion, recessions are not necessarily a bad thing, emphasizing that he’s been through a few of them in his time at public companies. “What tends to happen is, if you have a boom that goes on for too long, you get misallocation of capital — it starts raining money on fools, basically,” he described.

Noting that the rising prices resulted from money printing, the Tesla boss said:

The honest reason for inflation is that the government printed a zillion more money than it had … This is not like, you know, super complicated.

Musk added that countries like Venezuela had already been down the same path.

The Tesla executive is currently in the middle of a takeover bid to buy Twitter Inc. He offered the social media giant about $44 billion which Twitter has accepted. However, the deal is now on hold.

Musk has also indicated that he may seek a lower price for Twitter, stating that there could be at least four times more fake accounts than what the company has said. He opined: “You can’t pay the same price for something that is much worse than they claimed.”

What do you think about Elon Musk’s comments? Let us know in the comments section below.

South Korea Launches ‘Emergency’ Investigation Into Collapse of LUNA and UST

South Korea Launches 'Emergency' Investigation Into LUNA and UST After Crash

South Korea’s top financial regulators have launched an emergency investigation into the collapse of cryptocurrency LUNA and stablecoin UST. The authorities have asked domestic cryptocurrency exchanges to provide information relating to transactions and investors of the two coins.

South Korea’s Emergency Investigation Into LUNA, UST

South Korea has launched an “emergency” investigation of domestic crypto exchange operators following the collapse of the terrausd stablecoin (UST) and terra (LUNA) cryptocurrency, Yonhap News reported Tuesday, citing unnamed sources.

Last week, UST lost its peg to the U.S. dollar, sending its price and the price of terra (LUNA) into free fall. At the time of writing, UST is trading at less than $0.09 while LUNA is near worthless.

South Korean top financial regulators, the Financial Services Commission (FSC) and the Financial Supervisory Service (FSS), have asked local cryptocurrency exchange operators to share information relating to UST and LUNA, sources told the news outlet.

An official of a local crypto exchange operator was quoted as saying:

Last week, financial authorities asked for data on the amount of transactions and investors, and sized up the exchanges’ relevant measures.

“I think they did it to draw up measures to minimize the damage to investors in the future,” the exchange official said.

The information requested by the authorities includes trading volumes, closing prices, and numbers of relevant investors, the publication noted, adding that the regulators also asked the exchange operators to provide their countermeasures to the recent crypto market crash and analyses of the cause of the collapse.

UST and LUNA were invented by Kwon Do-hyung (aka Do Kwon), a South Korean national. His company, Terraform Labs, is incorporated in Singapore. Since the collapse of the two cryptocurrencies, Kwon has come up with a few plans to revive the coins but none has worked so far.

Kwon’s wife reportedly sought police protection after an unidentified man trespassed into their apartment building in South Korea. According to media reports, the man was subsequently identified as an investor who lost roughly $2 million in LUNA’s collapse.

What do you think about South Korea launching an investigation into UST and LUNA after the two cryptocurrencies collapsed? Let us know in the comments section below.

India’s Central Bank RBI Warns Crypto Could Lead to Dollarization of Economy

India's Central Bank RBI Warns Crypto Could Lead to Dollarization of Economy

India’s central bank, the Reserve Bank of India (RBI), has expressed concerns that cryptocurrencies could lead to the dollarization of a part of the Indian economy. “It will seriously undermine the RBI’s capacity to determine monetary policy and regulate the monetary system of the country.”

RBI’s Crypto Warnings and Dollarization of Economy

The Reserve Bank of India (RBI), the country’s central bank, has warned that cryptocurrencies could lead to the dollarization of a part of the Indian economy, PTI reported Monday, citing unnamed sources.

During a briefing with India’s Parliamentary Standing Committee on Finance, top RBI officials, including Governor Shaktikanta Das, “clearly expressed their apprehensions about cryptocurrencies,” the publication conveyed.

The committee, chaired by former Minister of State for Finance Jayant Sinha, also recently questioned the Securities and Exchange Board of India (SEBI) on crypto-related issues.

Emphasizing that cryptocurrencies pose challenges to the stability of India’s financial system, the RBI officials stressed:

It will seriously undermine the RBI’s capacity to determine monetary policy and regulate the monetary system of the country.

India’s central bankers also noted that cryptocurrencies are used for money laundering, terrorism financing, and drug trafficking.

Moreover, they warned that cryptocurrencies could be used as a medium of exchange, replacing the rupee (INR) in both domestic and cross-border financial transactions.

The RBI officials opined:

Almost all cryptocurrencies are dollar-denominated and issued by foreign private entities. It may eventually lead to dollarization of a part of our economy which will be against the country’s sovereign interest.

The RBI officials further explained that cryptocurrency will have a negative impact on the banking system. They noted that this asset class is attractive to people who may want to invest their hard-earned savings in it, resulting in banks having less resources to lend.

According to an industry estimate, there are approximately 15 million to 20 million crypto investors in India, with total crypto holdings of around $5.34 billion.

The Indian government is currently working on the country’s crypto policy. However, cryptocurrency income is already taxed at 30%. On July 1, a one percent tax deducted at source (TDS) will also start levying on crypto transactions.

Do you agree with the RBI that crypto could lead to the dollarization of India’s economy? Let us know in the comments section below.

Indian Regulator SEBI Proposes Banning Public Figures From Endorsing Crypto Products

Indian Regulator SEBI Proposes Banning Public Figures From Endorsing Crypto Products

The Securities and Exchange Board of India (SEBI) has reportedly proposed banning public figures, including celebrities and sportsmen, from advertising and endorsing crypto products. The regulator also proposed that public figures be held liable for any law violations when promoting crypto products.

SEBI’s Crypto Advertising and Endorsement Proposal

The Securities and Exchange Board of India (SEBI), the country’s securities and commodity market regulator, has proposed prohibiting public figures, including celebrities and sportsmen, from endorsing crypto products, Businessline reported last week. In addition, the regulator proposed requiring advertisers to disclose possible law violations.

SEBI recently shared its view on the subject with India’s Parliamentary Standing Committee on Finance when it was questioned about various crypto issues, sources told the publication. The regulator subsequently submitted a detailed written response to the committee.

The Indian Ministry of Finance also asked SEBI to give its view on the crypto advertising guidelines published in February by the Advertising Standards Council of India (ASCI).

SEBI reportedly wrote:

Given that crypto products are unregulated, prominent public figures including celebrities, sportsmen, etc. or their voice shall not be used for endorsement/advertisement of crypto products.

Furthermore, the securities regulator proposed that public figures be held liable for endorsing crypto products, which could violate certain laws, including the Consumer Protection Act.

In addition, SEBI suggested adding the following statement to the ASCI disclaimer: “Dealings in crypto products may lead to prosecution for possible violation of Indian laws such as FEMA, BUDS Act, PMLA, etc.”

ASCI’s crypto guidelines, which went into effect on April 1, state: “Since this is a risky category, celebrities or prominent personalities who appear in such advertisements must take special care to ensure that they have done their due diligence about the statements and claims made in the advertisement, so as not to mislead consumers.”

Meanwhile, the Indian government is working on the country’s crypto policy. Finance ministry officials have met with the International Monetary Fund (IMF) and the World Bank to discuss crypto regulation. India’s finance minister recently said that the decision on crypto regulation will not be rushed. Crypto income is currently taxed at 30% in India.

What do you think about SEBI’s view on prohibiting public figures from endorsing crypto products? Let us know in the comments section below.