Table of Contents
Bitcoin News: 15th October 2021
- Coinbase has started campaigning for a new digital asset regulator in the United States.
- A recent Bitcoin-related fraud cost $1.4 million.
- Close to 250,000 signatures on a petition to list Shiba Inu ($SHIB) on Robinhood
- The Securities and Exchange Commission (SEC) might approve bitcoin-futures ETFs as soon as Monday[LINK]
- Bitcoin reaches $60k as the SEC considers approving the first Bitcoin ETF in the United States.
- As $36 million leaves banks, the Bank of Russia will evaluate Bitcoin holdings.
- The fifth-largest pension fund in Australia is considering investing in cryptocurrency.
- The Polkadot Parachain Slot Auction will be held by Binance
- CFTC Fines Tether For Lying & Bitfinex For ‘Illegal’ Transactions [LINK]
Coinbase has started campaigning for a new digital asset regulator in the US
Coinbase has proposed a broad new regulatory framework for digital assets in the United States.
Coinbase’s plan, which was released on October 14, envisions a major reorganisation of financial regulation in the United States. Most significantly, this includes establishing a whole new regulator in charge of digital asset marketplaces, called “MDAs” by the business. According to the announcement:
“Ensuring consistent regulation and application of the laws requires a single regulator. Where new policy questions or challenges arise, the ability of a single dedicated regulatory body to respond in an efficient and timely manner benefits everyone.”
Coinbase CEO Brian Armstrong published an editorial article in the Wall Street Journal later that day to accompany the news.
It’s a bold idea, and it comes at a time when Coinbase and the Securities and Exchange Commission are at odds, notably over Coinbase’s “Lend” product offering.
SEC Chairman Gary Gensler has pushed to expand SEC jurisdiction over an ever-widening circle of crypto platforms since his confirmation in April, with Coinbase being the most famous example.
“We look forward to updating them on this,” Shirzad said when The Block inquired if the SEC has seen this idea previously.
Shirzad further stated that the new regulator would not apply to cryptocurrencies such as Bitcoin and Ether. The SEC has already said that it does not consider those two cryptocurrencies to be securities.
Aside from the Bitcoin and Ether discrepancy, the plan fails to address decentralised financial systems. “There is nothing to govern under our approach if you have a genuinely truly decentralised organisation or protocol,” Shirzad added.
A recent Bitcoin-related fraud cost $1.4 million
Cryptocurrency trading has exploded in popularity throughout the world. The level of crypto-related criminality has also increased. Authorities throughout the world have received reports of crypto-related fraud and scams perpetrated by criminals.
Sophos, a cybersecurity firm, revealed information about an international bitcoin trading fraud that targets iPhone users using popular dating apps. According to Imore, bitcoin scammers “made a total of $1.4 million from unknowing victims.”
“Luring people into installing phoney bitcoin apps and investing money, utilising Apple’s Developer Enterprise programme for distribution,” they explained.
Attackers have widened their scope from Asia to include users in the United States and Europe. According to the study,
“We have also identified more applications tied to the fraud campaign—which, due to its combination of romance scams and cryptocurrency trading fraud, we’ve dubbed CryptoRom.”
Following additional investigation, it was discovered that the fraudsters behind this software targeted iOS users using Apple’s ad hoc distribution mechanism, known as “Super Signature services.” Sophos went on to say,
“One of the victims shared the bitcoin address to which they transferred their money, and when we checked at the time of writing, it has been sent over $1.39 million to date. This shows the scale of this scam and how much money fraudsters are making from vulnerable users. This is just one bitcoin address, the tip of the iceberg. There could be several, with millions being lost,”
Close to 250,000 signatures on a petition to list Shiba Inu ($SHIB) on Robinhood
Supporters of Shiba Inu ($SHIB), a famous meme-inspired cryptocurrency, have been signing a petition to get their cryptocurrency listed on Robinhood (NASDAQ: HOOD), a commission-free trading platform.
At press time, the petition, headed “Kindly request of Robinhood to include Shiba Inu currency,” has received over 241,600 signatures from supporters, with a goal of 300,000. It says that Dogecoin ($DOGE), a competing meme-inspired cryptocurrency, has been featured on Robinhood and has been a “great success” for the trading site.
While the cryptocurrency world rallies around a Shiba Inu listing, Robinhood has been responding to a different cry from the community: They’ll have wallets where they can transfer their money around freely on the blockchain. Robinhood has already begun beta testing for digital wallets, with over a million users registering for its queue.
Robinhood has been taking too long to introduce wallets, according to Christine Hall, the company’s chief operations officer, who stated on social media that the company wants to ensure “that transferring crypto on Robinhood is safe, secure, and straightforward.” Many individuals will be trading for the first time on-chain, and we want to make sure your coins are safe.”
Hall went on to say that wallets are “only the beginning of our commitment to making crypto available to everyone,” and that the company has begun making regular cryptocurrency investments. Because of a DOGE trading frenzy observed this year, Robinhood’s income surged as a result of the DOGE listing.
Shiba Inu is already available on Binance and Coinbase, two of the most popular cryptocurrency exchanges. On social media earlier this month, the cryptocurrency temporarily overtook BTC and DOGE in popularity.
Last week, the number of token holders on the SHIB blockchain surpassed 700,000, a milestone that the community celebrated on social media.
SEC might approve bitcoin-futures ETFs as soon as Monday
The Securities and Exchange Commission of the United States may rule as soon as Monday whether or not to allow American ETFs to hold bitcoin futures, making it simpler for small investors to have exposure to the cryptocurrency.
The SEC has until Monday to determine whether to approve or reject ProShares’ application to create a ProShares Bitcoin Futures ETF.
Several other ETF companies have registered to establish similar funds, and regulators will be monitoring to see if ProShares’ plan is approved.
Many investors have been awaiting the opportunity to trade crypto assets through exchange traded funds, but the Securities and Exchange Commission (SEC) has yet to authorise ETFs to hold Bitcoin directly (BTC-USD).
The planned bitcoin-futures ETFs would not invest directly in cryptocurrency, but will instead trade Bitcoin-based futures contracts (BTC-USD).
Some market watchers saw a tweet from the SEC on Thursday regarding the hazards of investing in bitcoin futures as implying that such funds will be approved soon:
Speculators are allegedly pouring into bitcoin, at least in part because the SEC is expected to approve four such ETFs soon.
Valkyrie, Galaxy Digital, VanEck, ETF Series Solutions, ARK Invest, Invesco, and ProShares are among the issuers looking forward to the approval.
Bitcoin reaches $60k as the SEC considers approving the first Bitcoin ETF in US
The Securities and Exchange Commission (SEC) in the United States may approve the first Bitcoin futures exchange-traded fund, according to various sources (ETF). One of the more positive predictions made by Bitcoin analysts was that this would allow a bigger number of investors to participate in Bitcoin and the broader cryptocurrency market. As a result, Bitcoin reached $60,000, its highest level since April of this year. The Securities and Exchange Commission (SEC) of the United States may soon approve the first Bitcoin ETF in the country. According to people familiar with the situation, authorities are unlikely to prevent the ETF from trading as soon as next week.
One of the primary arguments for the possibility of approving a Bitcoin ETF is that the proposal from ProShares and Invesco Ltd. provides “strong investor safeguards.” The possibility of the first Bitcoin ETF being approved in the United States comes after eight years of several proposals to extend the bitcoin ecosystem. Bitcoin ETFs have consistently been rejected in recent years owing to a lack of “investor safeguards.” However, with increased liquidity and trading volumes, the Bitcoin sector has grown even greater as a market for retail and institutional investors.
The Bitcoin ETF, if authorised, may begin accepting trades as soon as this month. It’s also worth mentioning that Bitcoin ETFs have already been approved in a number of other countries, including Canada, the European Union, and others. This demonstrates that investors throughout the world are interested in Bitcoin ETFs, not only in the United States. It is conceivable, however, that the ETF will be rejected. If this occurs, the bitcoin market may see a correction. Other fund managers, including VanEck Bitcoin Trust, ProShares, Ivesco, Valkyrie, and Galaxy Digital, have also applied to create Bitcoin ETFs in the US, but no decision has yet been made.
The Bank of Russia will evaluate Bitcoin holdings as $36 million leaves banks
The Russian central bank is attempting to assess the quantity of Bitcoin (BTC) owned by local investors in the aftermath of the pandemic-related withdrawals, which have resulted in a large amount of money not returning to banks.
The Bank of Russia is polling local cryptocurrency investors to assess cryptocurrency investment numbers in Russia, according to Elizaveta Danilova, director of the central bank’s financial stability department.
In a Reuters interview published on the Bank of Russia’s official website on Thursday, Danilova stated, “We need to work both on data and raising public knowledge about the hazards of such investments, which are backed by nothing.”
The official said that the cryptocurrency market is opaque not only in Russia but also in other countries, citing greater risks associated with crypto derivatives such as Bitcoin futures and exchange-traded funds. “The market is cross-border, which presents a difficulty. Cryptocurrency can be purchased through international middlemen. “Some large overseas exchanges sell bitcoin derivatives, which come with significant risks,” Danilova explained.
The Bank of Russia’s efforts to examine local crypto investment levels coincide with Russians’ recent unwillingness to deposit money in banks.
According to Danilova, banks have not received as much as 2.6 trillion rubles ($36 million) following huge withdrawals in 2020 due to the COVID-19 epidemic.
The Bank of Russia has asked the government to prohibit crypto investments by non-accredited investors, allegedly launching a legal campaign to slow down transfers to crypto exchanges in order to discourage “emotional” crypto purchases.
Despite the Bank of Russia’s scepticism about cryptocurrency, Russian President Vladimir Putin believes that cryptocurrencies such as Bitcoin are useful for international money transfers and might one day become a “method of accumulation.”
The fifth-largest pension fund in Australia is considering investing in cryptocurrency
Queensland Investment Corporation (QIC), Australia’s fifth-largest pension fund, is allegedly open to investing in cryptocurrencies in the future. QIC manages over $70 billion in assets.
Large pension funds will likely want exposure to crypto as the industry matures in terms of legislation and infrastructure, according to Stuart Simmons, QIC’s head of currencies, in a piece published Thursday by The Financial Times.
“Right now, there are a lot of unknowns, and institutional investing’s operational infrastructure is still in its infancy,” Simmons said. “As the system evolves, super funds may simply be responding to customer demand by enabling cryptocurrency investing.”
CDPQ, Canada’s second-largest pension fund, invested in cryptocurrency earlier this week. Celsius Network, a crypto lending platform, raised $400 million in a round led by it.
Last month, it was revealed that two US pension funds, the Fairfax County Police Officers Retirement System and the Fairfax County Employees’ Retirement System, were intending to invest in cryptocurrency, pending board permission. They planned to invest a total of $50 million in Parataxis Capital Management’s flagship fund, which buys and trades cryptocurrencies and crypto derivatives.
The Polkadot Parachain Slot Auction will be held by Binance
Binance announced future sponsorship of the Polkadot Parachain Slot Auction, which will take place in November 2021, in the platform’s News section. Closer to the auction, further information for participants will be provided. Polkadot is ready for the parachain’s launch, according to the project’s co-founder. The goal of parachains is to provide complete interoperability across multiple Layer 1 networks that are built for distinct reasons. To join the network, each chain must gather the required amount of votes, which may be obtained through auctions.
Previously, the Kusama network performed many auctions in June and July for testing purposes, simulating the process that the main Polkadot network would go through.
The first auction will take place on November 11th, with the closing periods beginning on November 18th. Bidding will be open until November 18th. On December 17, the first winning parachain will be onboarded.
Read Yesterday’s news here.