cryptocurrency

Sony Group ventures into cryptocurrency trading with acquisition of Amber Japan

Sony Group has ventured into the cryptocurrency trading platform sector by acquiring Amber Japan. That move signifies a strategic expansion for Sony, a conglomerate with a market value surpassing $100 billion and a diverse portfolio that includes gaming, music, and cameras.

Amber Japan was established earlier this year when Singapore-based market maker Amber Group acquired the regulated Japanese cryptocurrency trading platform DeCurret. The rebranding to Amber Japan followed this acquisition, marking Amber Group’s significant footprint in the Japanese market.

In February 2022, Amber Group secured $200 million in a financing round, reaching a valuation of $3 billion. That funding round saw investments from prominent firms such as Temasek, Sequoia China, Pantera Capital, and Tiger Global Management, highlighting strong investor confidence in the company’s growth and potential.

AI-generated Elon Musk hijacks Channel Seven’s YouTube

Channel Seven is currently investigating a significant breach on its YouTube channel, where unauthorised content featuring an AI-generated deepfake version of Elon Musk was streamed repeatedly. The incident on Thursday involved the channel being altered to mimic Tesla’s official presence. Viewers were exposed to a fabricated live stream where the AI-generated Musk promoted cryptocurrency investments via a QR code, claiming a potential doubling of assets.

During the stream, the fake Musk engaged with an audience, urging them to take advantage of the purported investment opportunity. The footage also featured a chat box from the fake Tesla page, displaying comments and links that further promoted the fraudulent scheme. The incident affected several other channels under Channel Seven’s umbrella, including 7 News and Spotlight, with all content subsequently deleted from these platforms.

A spokesperson from Channel Seven acknowledged the issue, confirming they are investigating alongside YouTube to resolve the situation swiftly. The network’s main YouTube page appeared inaccessible following the breach, prompting the investigation into how the security lapse occurred. The incident comes amidst broader challenges for Seven West Media, which recently announced significant job cuts as part of a cost-saving initiative led by its new CEO.

Why does it matter?

The breach underscores growing concerns over cybersecurity on social media platforms, particularly as unauthorised access to high-profile channels can disseminate misleading or harmful information. Channel Seven’s efforts to address the issue highlight the importance of robust digital security measures in safeguarding against such incidents in the future.

Italy set to introduce tough new regulations for cryptocurrency market

Italy is set to strengthen its surveillance of crypto assets with new measures, including hefty fines for market manipulation, according to a draft decree reviewed by Reuters. The decree, expected to be approved by the cabinet, imposes fines ranging from 5,000 to 5 million euros for offences such as insider trading and unlawful disclosure of inside information.

The legal move matches with warnings from central banks and international bodies about the risks cryptocurrencies pose to financial stability and their potential for fraud. The plan designates Italy’s central bank and market watchdog, Consob, as the authorities responsible for overseeing cryptocurrency activities to maintain financial stability and orderly market functioning.

Why does it matter?

Cryptocurrencies allow global money transfers outside the traditional financial system, with transactions recorded on a blockchain where users are identified only by wallet addresses. However, the anonymity and decentralisation have raised concerns about their misuse, prompting Italy to implement stricter controls.

New York attorney general recovers $50 million defrauded from Gemini Earn crypto investors

In a significant win for cryptocurrency investors, New York Attorney General Letitia James announced the recovery of $50 million defrauded from participants in Gemini Earn, a high-yield cryptocurrency investment program. That is part of a broader effort to address fraud and protect investors in the crypto market. Gemini Earn, a program launched by the Winklevoss twins‘ Gemini Trust Company, allowed users to lend their digital assets in exchange for interest. However, the program faced scrutiny when it was revealed that the funds were not being used as advertised. Instead of being securely invested, the funds were mismanaged, leading to significant financial losses for many investors.

The New York Attorney General’s office conducted an investigation, uncovering evidence of fraudulent activity and misrepresentation. Attorney General James emphasised the importance of holding companies accountable for their promises, particularly in the volatile and often opaque cryptocurrency sector. “The recovery sends a clear message that we will not tolerate deceit and fraud in any form, and we will use all available tools to protect New York investors,” said James. Gemini will provide full recoveries to more than 230,000 Earn investors, including 29,000 in New York, and agreed to a ban on operating crypto lending programs in the state.

“Gemini marketed its Earn program as a way for investors to grow their money, but actually lied and locked investors out of their accounts,” James said. “Today’s settlement will make defrauded investors whole.” The funds will be accessible within seven days, Gemini told investors on Friday. “With this final distribution, Earn users will have received 100% of the assets owed to them,” it said.  Gemini Earn promised investors attractive returns on their cryptocurrency holdings, capitalising on the growing interest in decentralized finance (DeFi). However, the program’s collapse highlighted the risks associated with high-yield crypto investments, particularly when transparency and proper regulatory oversight are lacking.

The investigation revealed that Gemini Earn’s operators misled investors about the safety and use of their funds. Rather than being securely invested, the assets were exposed to high-risk ventures without proper disclosure, resulting in substantial losses when these ventures failed.

Gemini Earn promised high interest rates to investors who lent crypto assets such as bitcoin to Genesis, a unit of Digital Currency Group, with Gemini taking fees that could exceed 4%. More than $1 billion was frozen when Genesis halted redemptions in November 2022, shortly after the collapse of Sam Bankman-Fried’s FTX cryptocurrency exchange. Genesis filed for Chapter 11 bankruptcy two months later.

Why does it matter?

Gemini received a fine of $37 million in February for unsafe and unsound practices in a settlement with the New York Department of Financial Services (NYDFS) .The payout is in addition to James’ related $2 billion settlement with crypto lender Genesis Global Capital, which was announced on May 20. Gemini also agreed to cooperate in James’ October fraud lawsuit against Digital Currency Group and its chief executive, Barry Silbert. 

The recovery of funds was achieved through a combination of asset seizures and financial settlements. That included cooperation from various cryptocurrency exchanges and custodians who held the misappropriated assets. The Attorney General’s office worked closely with these entities to trace and reclaim the funds. The recovery has been met with mixed reactions. Investors who suffered losses expressed relief and gratitude for the Attorney General’s efforts. “It’s a step towards justice,” said one affected investor. “I hope this sets a precedent for greater accountability in the crypto industry.” On the other hand, some industry analysts argue that the case underscores the need for clearer regulations and better investor education.

Fan tokens gain popularity amid football tournaments

As football fever rises ahead of major European and American tournaments, fan tokens are gaining significant attention. These digital assets, issued by national teams or individual clubs, offer supporters a tradeable way to engage with their favourite teams. Interest in fan tokens has surged as the Euro 2024 in Germany and Copa América approach, driving the market value of Chiliz, the cryptocurrency powering many fan tokens, to over $1.07 billion, up from $687 million at the start of the year.

Trading volumes of fan tokens have also increased dramatically, with recent figures showing over $170 million in activity, compared to $25 million to $57 million in January. The total market value of listed fan tokens now stands around $413 million. The surge comes as the sector faces a critical test this summer, offering perks like raffle entries, early ticket access, and voting on minor team decisions.

Supporters of fan tokens praise them as a practical use of cryptocurrency, while critics point out the potential risks and speculative nature of these assets. Chiliz emphasises that fan tokens are intended for engagement rather than investment. Despite this, trading patterns often reflect traditional financial behaviours, with increased activity before major events and declines once tournaments begin.

Club-linked tokens have grown slower than national teams, but the number of fan tokens has increased. Notable launches include tokens for Tottenham Hotspur and Benfica and Paris Saint-Germain’s move to become a network validator for the Chiliz Chain blockchain. Some clubs, like Watford FC, offer digital equity tokens that provide unique perks, blending fan engagement with investment opportunities.

Rwanda to adopt digital currency by 2026

Rwanda aims to develop its own national Central Bank Digital Currency (CBDC) within the next two years. According to the National Bank of Rwanda (BNR), that initiative will offer Rwandans a secure, cost-free, and convenient alternative to physical cash. The CBDC is anticipated to boost financial inclusion, enabling more unbanked individuals to engage in the formal economy. Soraya Hakuziyaremye, Deputy Governor of Rwanda’s Central Bank, disclosed the 2026 target during an interview. She emphasised the importance of Rwanda’s CBDC, noting similar developments in other countries in the continent, including Nigeria, Ghana, and South Africa, which are either piloting or have already launched their own CBDCs.

Hakuziyaremye also noted that, considering Rwanda’s aspirations for ICT development and a cashless economy, it was essential to evaluate the potential benefits of following other countries’ examples, especially that  the country’s major trading partners are testing or adopting the technology. In November 2023, National Bank of Rwanda Governor John Rwangombwa announced during the presentation of the central bank’s annual report for the fiscal year 2022/2023 to a joint parliamentary session that the CBDC was in development. In May 2024, the Deputy Governor, working alongside the Ministry of Finance, ICT, and Innovation, formed a task force for a feasibility study on CBDC in Rwanda in order to explore the technological requirements, regulatory frameworks, and potential risks.

The Deputy Governor mentioned that the authority published a research paper and held a public consultation process to address various concerns and ensure the CBDC benefits the population, including data privacy, system resilience, and the potential destabilization of the financial system. After the public consultation process ends in the next four weeks, Rwanda will begin a proof of concept to test the technology, design, and speed on a small scale. Additionally, a six-month international test will be conducted to evaluate the technology for cross-border payments. Following these tests, selected individuals and companies will participate in testing the digital currency. While considering various CBDC design options, Rwanda prefers a retail CBDC distributed through banks and an offline-accessible CBDC, which would be particularly useful in areas without internet access or smartphones, or during power outages.

Why does it matter? 

The introduction of a CBDC in Rwanda holds significant importance for: 

  •  Economic Growth and Stability, as it contributes to a more stable and resilient economy by improving the efficiency of monetary policy implementation. That can lead to better control of inflation and economic stability.
  • Financial Inclusion in a country where a significant portion of the population remains unbanked or underbanked. A digital currency can provide easier access to financial services especially to individuals in remote and underserved areas.
  • Cost Efficiency by the reduction of the costs associated with producing and managing physical cash (savings on printing, transportation, and storage) 
  • Enhanced Security and Transparency due to its higher level of security compared to physical cash, reducing the risk of counterfeiting and fraud. The use of blockchain or similar technologies can ensure greater transparency and traceability of transactions, vital for combating money laundering and other illicit activities.
  • Technological Advancement through financial technology that can attract investment, stimulate innovation, and create new job opportunities in the tech sector.

The Belgrade Crypto conference 2024: Serbia and the cryptocurrency market

The Belgrade Crypto conference, held on Friday, 12 April 2024, by one of the two registered cryptocurrency exchange offices in Serbia, CRYPTO12, shed light on the current cryptocurrency regulation and industry in Serbia. The conference brought together prominent stakeholders to share knowledge of the cryptocurrency and digital assets industry and highlight essential points in the related landscape. 

Is Serbia on the cryptocurrency regulation map?

The conference featured three insightful panels addressing key cryptocurrency regulation and innovation aspects. The first panel, ‘The Crypto Conundrum: Navigating Regulatory Waters in Serbia & Beyond,’ focused on Serbia’s evolving crypto regulations and their impact on fostering a dynamic fintech ecosystem. Discussions included compliance strategies and the role of the International Cooperation and Development Department of the Securities Commission on behalf of the Ministry of Economy, represented by Anina Milanovć, and the participation of the Administration for the Prevention of Money Laundering on behalf of the Ministry of Finance, represented by Đorđije Vujičić, along with prominent stakeholders like Erwin Voloder, Head of Policy – European Blockchain Association and other influent characters from the financial and economic realm, discussing the shaping, transforming and driving of the digital monetary politics. 

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Serbia was among Europe’s first nations to implement cryptocurrency asset regulation in 2021, with the Law on Digital Assets drafted by the National Bank of Serbia. The current regulatory framework was created with the help of several EU jurisdictions at the forefront of regulatory efforts in this industry. The panel also emphasised the importance of compliance with the FATF AML rules, in which Serbia made significant progress. 

The second panel, ‘Crypto Crossroads: Serbia’s Tax Labyrinth and Legal Landscapes,’ explored the complexities of cryptocurrency tax regulations and legal frameworks, offering guidance for businesses navigating these challenges. Topics ranged from real estate transactions to payroll solutions involving cryptocurrencies held by attorneys and board members of prominent companies from the region and beyond, such as Seker, Vice President of Crypto.com or Dušan Romčević – board member at B2BINPAY CY.

What to expect from the industry?

The last panel, ‘Crafting the Future of Crypto Services,’ delved into the future of digital currencies. Industry leaders projected advancements, a worldwide regulatory shift, and ethical considerations shaping the crypto industry’s trajectory. The panel highlighted strategic directions, challenges, and opportunities defining the future of cryptocurrencies and blockchain technology in Serbia and the surrounding region.

Is the EU’s MICA regulation the way forward for all?

The conference provided attendees with deep insights into navigating regulatory landscapes, tax implications, and the future landscape of crypto services, bringing experts from state institutions and the private sector. The panels also included discussions about the EU’s Markets in Crypto Assets (MiCA) regulation, which set the role model for the whole continent, an important piece of regulation that will most definitely play a crucial role for both EU and non-EU countries which should comply with the legislation to stay at the forefront and participate in the landscape of digital assets.

Britain plans regulations for cryptoassets

Britain has announced plans to introduce its first set of regulations for the cryptocurrency sector, which would require market players to obtain authorization before offering services to its consumers. The rules will focus on crypto assets like bitcoin and its underlying distributed ledger technology (DLT) or blockchain, as these have significant potential, particularly in areas such as securities settlement.

According to the ministry, “The government’s position is that firms dealing directly with UK retail consumers should be required to be authorized irrespective of where they are located”. It also clarified that the rules will be integrated into existing market laws and will align with the EU regulations on crypto assets (MiCA).

Moreover, Britain will also regulate stablecoins and present legislation in 2024 to empower its independent financial regulatory body, the Financial Conduct Authority (FCA), to oversee them. It also intends to draft regulations to manage the failure of a major stablecoin.

Overall, the ministry stated that the aim of these measures is to create a regulatory environment that encourages innovation while ensuring financial stability and the safe and reliable use of new technologies.

PayPal temporarily halts cryptocurrency purchases for UK customers

PayPal is working to comply with new UK regulations coming into effect on 8 October 2023. Britain’s financial regulator, the Financial Conduct Authority (FCA), is imposing tougher rules on cryptocurrency products and services marketing and advertising. Therefore, PayPal has announced that it will temporarily pause the ability for UK customers to buy cryptocurrencies.

PayPal launched cryptocurrency trading in the UK in 2021 and expects to restart cryptocurrency purchases early in 2024. In the meantime, its UK customers will still be able to hold or sell cryptocurrency during this temporary halt on crypto purchases.

Why does it matter?

PayPal is a global player in the fin-tech industry, and its decision to temporarily pause crypto purchases for its UK consumers may impact the global cryptocurrency market. Around the world, governments are regulating crypto assets to ensure consumer protection, prevent money laundering, and address potential risks, such as the FTX collapsing last year. The company’s decision reflects the urgent need to adapt to an evolving regulatory landscape, which could signal significant change for the industry.

SEC asked Coinbase to stop trading cryptocurrencies other than bitcoin before lawsuit

The USA Securities and Exchange Commission (SEC) allegedly asked Coinbase to halt trading in all cryptocurrencies except bitcoin prior to filing a lawsuit against the company for not registering as a broker.

Coinbase CEO Brian Armstrong revealed that the SEC made this recommendation, claiming that they believed every asset other than bitcoin was a security. Armstrong stated that the SEC did not provide an explanation for their conclusion and demanded that online exchange delist all assets other than bitcoin.

The SEC denied making formal requests for delisting, stating that its staff may share views on conduct that raises questions under securities laws during investigations. SEC Chair Gary Gensler has previously suggested that cryptocurrencies other than bitcoin are securities. The SEC and Coinbase have not yet responded to requests for comment.