The most popular cryptocurrency, bitcoin, experienced a rally in price during the last two weeks. Contrary to some predictions, approval of the Exchange Traded Funds (ETF) in the United States pushed the request for the cryptocurrency, creating the cycle in which the bitcoin price went up in a short time. The previous all-time high price traded for one bitcoin was $69.000 back in November 2021. The bitcoin is now traded above the $67.000Â
Back in January, the US Securities and Exchange Commission (SEC) approved the first bitcoin ETF after seven years since the first request. The SEC granted 11 ETFs and some of the biggest financial firms and institutional investors announced that their ETF was a success. The SEC’s decision made a clear path for institutional investors to offer bitcoin as an investment to its customers.Â
Having in mind the number of bitcoins consumed by the ETFs daily, and considering that the bitcoin mining industry can produce around 900 bitcoins per day, the demand for bitcoins continues (and will continue) to grow. It is important to mention that, regardless of the large demand, the bitcoin creation can not be hurried up or anyhow ramped up. Bitcoin has a set emission (fixed supply) which is planned and embedded into the consensus mechanism that underlays cryptocurrency.Â
Another event, also embedded into the bitcoin protocol, played a significant role and will continue to do so in forthcoming days. In approximately 48 days (mid-April 2024) bitcoin will have another ‘halving’ event. That is a planned reduction of the reward for miners in the form of newly minted coins. At this moment, the reward for miners who find a valid bitcoin block is 6.25 bitcoins. After the next halving, the reward will drop to 3.125 newly created bitcoins per block. This will reduce the number of daily minted bitcoins to around 450, creating even more pressure on the demand side, hence a possible new time-high valuation for the bitcoin. The halving occurs once in four years and it has influenced the price of bitcoin throughout its history. No reason to believe it will be different this time.
The European Commission has imposed a first-time fine of 1.8 billion euros ($1.95 billion) on Apple for restricting Spotify and other music streaming services from offering alternative payment options outside its App Store. This verdict follows Spotify’s 2019 complaint concerning these limitations and Apple’s 30% App Store fees.
The EU competition authority deemed Apple’s restrictions as unfair trading practices. Margrethe Vestager, EU antitrust chief, explained how Apple exploited its market dominance for a decade by limiting developers from suggesting cheaper music services outside the Apple ecosystem, a violation of EU antitrust regulations. Apple is instructed to eliminate App Store constraints, aligning with requirements from the new Digital Markets Act (DMA), which Apple must comply with by March 7.
Apple expressed its intent to contest the EU’s decision in court, stating the ruling disregards the lack of credible proof of consumer harm and overlooks a flourishing and competitive market. The company further remarked that Spotify, the primary proponent and benefactor of this decision, holds the world’s largest music streaming app and has engaged extensively with the European Commission.
South Korea’s Personal Information Protection Commission (PIPC) has launched an investigation into cryptocurrency project Worldcoin following numerous complaints about its collection of personal information. Of particular concern is the project’s use of iris scanning in exchange for cryptocurrency. The PIPC announced on Monday that it will examine company’s collection, processing, and potential overseas transfer of sensitive personal information, and will take action if any violations of local privacy rules are found.
It is worth noting that OpenAI, which co-founded Worldcoin, was fined last year by the privacy watchdog for leaking personal information of South Korean citizens through its ChatGPT application. This connection with OpenAI adds weight to the concerns surrounding the handling of personal data by Worldcoin.
Worldcoin is an identity-focused cryptocurrency project. Participants in the protocol receive WLD tokens in return for signing up. The project’s unconventional sign-up process has also raised concerns in other jurisdictions. As of now, company has not responded to the investigation or the accusations.
GOP senators argue that Fed-backed digital currencies could provide the government with transaction-level data on individual users, compromising privacy. Senator Ted Cruz described CBDCs as “programmable money” that, if not designed to emulate cash, could give the federal government significant insight into users’ financial activities.
The Biden administration has been studying the use of cryptocurrencies since 2022, with reports outlining their potential benefits and risks. While the administration supports ongoing research and evaluation of CBDCs, it has not explicitly endorsed their creation without an act of Congress.
Both the Federal Reserve and the Treasury Department have explored the potential uses and structures of CBDCs. They believe that CBDCs could lead to a more efficient and inclusive payment system. The Federal Reserve highlights the safety of CBDCs, as they are liabilities of the central bank without associated credit or liquidity risks.
The Republican legislation would prevent the Federal Reserve from authorizing the use of Fed-backed stablecoins by individuals and third-party institutions such as banks and credit unions.
Central bank digital currencies have gained international attention, with advocates touting their benefits and authorities raising concerns about operational consequences. The Bank for International Settlements (BIS) warns about the potential risks associated with providing the general public access to central bank money through CBDCs.
China’s Supreme People’s Procuratorate (SPP) is ramping up efforts to combat cybercrime by targeting criminals who use blockchain and metaverse projects for illegal activities. The SPP is alarmed by the recent surge in online fraud, cyber violence, and personal information infringement. Notably, the SPP has observed a significant rise in cybercrimes committed on blockchains and within the metaverse, with criminals increasingly relying on cryptocurrencies for money laundering, making it challenging to trace their illicit wealth.
Ge Xiaoyan, the Deputy Prosecutor-General of the SPP, highlights a 64% year-on-year increase in charges related to cybercrime-related telecom fraud, while charges linked to internet theft have risen nearly 23%, and those related to online counterfeiting and sales of inferior goods have surged by almost 86%. Procuratorates have pressed charges against 280,000 individuals involved in cybercrime cases between January and November, reflecting a 36% year-on-year increase and constituting 19% of all criminal offenses.
The People’s Bank of China (PBoC) acknowledges the importance of regulating cryptocurrency and decentralized finance in its latest financial stability report. The PBoC emphasizes the necessity of international cooperation in regulating the industry.
Despite the ban on most crypto transactions and cryptocurrency mining, mainland China remains a significant hub for crypto-mining activities.
Czech company based in the UK, collected the US consumers’ browsing information using browser extensions and antivirus software, according to the FTC complaint. The collected data included details about users’ web searches, visited webpages, religious beliefs, health concerns, political leanings, location, financial status, and visits to child-directed content. This information was stored indefinitely and sold to third parties without adequate notice or consent.
The FTC also argues that Avast deceived users by falsely claiming that its software would safeguard their privacy and block third-party tracking. Company failed to sufficiently inform consumers that it would sell their detailed, re-identifiable browsing data. The data was sold to over 100 third parties through Avast’s subsidiary, Jumpshot.
In addition to fine, Avast and its subsidiaries will be prohibited from misrepresenting their data usage practices. Under the proposed order, Avast is required to delete the browsing information transferred to Jumpshot and any products or algorithms derived from that data.
The company must also notify consumers whose browsing information was sold without consent about the FTC’s actions. Furthermore, they will be required to implement a comprehensive privacy program to address the misconduct highlighted by the FTC.
Google plans to produce Pixel smartphones in India by the second quarter of this year, a strategic move in an attempt to diversify its supply chain and tap into India’s expanding smartphone market, thereby lessening its dependence on Chinese manufacturing.
The entrance of Google into India’s competitive and innovative smartphone market by producing Pixel smartphones locally is likely to shift dynamics and intensify competition. Through this move company aims to cater to Indian consumers and enhance its competitive edge over rivals like Apple and Samsung.
Google, Apple, and Samsung’s significant investments in India underscore the nation’s growing relevance as an alternative to Chain-based manufacturing. Moreover, India’s burgeoning smartphone sector, enabled by the country’s rapid economic growth and tech-oriented population, offers a huge market, incentivizing companies to consolidate their market position.
Waymo’s application to expand its robotaxi service in Los Angeles and San Mateo counties has been suspended for 120 days by the California Public Utilities Commission’s Consumer Protection and Enforcement Division (CPED). Company can still operate driverless vehicles in San Francisco, but further expansion is on hold until June 2024. According to the CPED, the application has been suspended for additional staff review.
Waymo clarifies that this suspension is a standard procedural step in the CPUC’s thorough review process. However, David J. Canepa, Vice President of the San Mateo County Board of Supervisors, contends that Waymo has failed to engage in meaningful discussions about expanding into Silicon Valley, prompting the CPUC to suspend the application. Canepa sees this as an opportunity to address genuine concerns regarding public safety.
Waymo currently operates a commercial service round-the-clock in San Francisco and is permitted to offer free driverless rides in certain parts of Los Angeles. In January, Waymo submitted a document to the CPUC’s Consumer Protection and Enforcement Division, seeking approval of its updated safety plan and an expansion areas where its robotaxi vehicles can operate.
Various entities, including the city of South San Francisco, the Los Angeles County Department of Transportation, and the San Francisco Taxi Workers Alliance, have expressed opposition to Waymo’s expansion plans.
According to Indonesia’s minister for small-medium enterprises (SMEs), Teten Masduki, TikTok continues to disregard Indonesia’s prohibition on in-app transactions. The minister stated, “The trade minister has to reprimand TikTok so that it complies with the regulation, if not then … the government’s authority is undermined.”
This comes after social media company gained control of the country’s largest e-commerce platform, Tokopedia, at $840 million, in order to relaunch its online shopping operations after a ban was imposed last year. TikTok Shop, the e-commerce service of the company, was forced to shut down in Indonesia due to the country’s ban on social media platform-based online shopping in the country’s attempt to safeguard the interests of smaller merchants and protect user data.
It remains to be seen how social media giant circumvents the increasing pressure to comply with legal requirements. With its 125 million user base in Indonesia, the country is an important market that can potentially generate substantial e-commerce revenue.
During a crypto event in London, the UK’s Economic Secretary to the Treasury Bim Afolami stated that the government is working intensively to ensure the new legislation regulating stablecoins and crypto staking. However, no specific details about the regulations were provided due to the ongoing developments in the field.
In 2022, UK Prime Minister Rishi Sunak pledged to establish the country as a global crypto hub, emphasizing the need for crypto firms to be able to invest, innovate, and scale up within the UK. Progress on implementing clearer regulations has been slow, despite calls from cryptocurrency firms for more concise rules.
The UK Law Commission published recommendations in July 2023 suggesting conducting a common law analysis of crypto assets and establishing an industry-specific panel consisting of technical experts, academics, and legal practitioners to advise courts on crypto-related legal matters.
On October 30, 2023, the UK government announced plans to introduce more crypto-specific regulations in 2024. This includes bringing the regulation of fiat-backed stablecoins under the purview of the Financial Conduct Authority (FCA).
