As global regulators grow wary of cryptocurrency, Japan embraces Web 3

As global regulators grow wary of cryptocurrency, Japan embraces Web 3

by | Feb 1, 2023 | Market, Market News

Japan is in a position to play a special role in the cryptocurrency business, whilst many other nations are just stoically shrugging their shoulders in the cold wind.

According to a proposal by the Web3 project team of the ruling Liberal Democratic Party of Japan. Or to put it another way, Japan finds opportunities when other countries dread calamity.

It's difficult to quantify how far behind the rest of the globe Japan remains after a recent trip to Tokyo. Neither the FTX crash nor even the series of crypto implosions that came preceding it seemed to have much of an impact on the people I spoke with. Masaaki Taira, a representative in the House of Representatives and the Web3 Planning Committee for the ruling Liberal Democratic Party, claimed that the FTX crash had no impact on policy decisions.

Also Read: The FSA of Japan plans to abolish the restriction on foreign stablecoins in 2023

Web3 promotion continues to be a cornerstone of Japan's national strategy as legislators and regulators from the U.S. to Europe to Asia express growing caution regarding cryptocurrency. A tiny but loud minority of legislators are putting up regulations for anything from non-fungible currencies to decentralized autonomous organizations (DAO) (NFT). Japanese exchanges are discovering it simpler to list tokens. A burdensome tax requirement has been changed, which is a resounding achievement for cryptocurrency business owners. Coinbase and Kraken left Japan, while Binance, which had already irritated Japanese regulators, was able to acquire a Japanese exchange. Additionally, stablecoins—which are now illegal on Japanese exchanges—have a new direction to follow.

Ghosts of previous hackers

The simplest explanation could be that Japan has already visited Hell and back when it comes to bitcoin. It demonstrated its storm-weathering abilities. So, some of the earlier fear has dissipated

Japan was a pioneer in the crypto industry, and the losses shortly followed. Japanese exchange Mt. Gox had a hack in 2014. Then, in the biggest hack in cryptocurrency history, hackers attacked once more in early 2018, stealing roughly $500 million from the Japanese exchange Coincheck. Japan was on track to rise to the Asian and even global capital of cryptocurrency not long before the Coincheck hack. Regulators were severely alarmed by the breach, and Japan was assumed to vanish from the crypto scene. It first appeared to be nearly impossible to publish new tokens on exchanges.

It turns out that Japan had not vanished; rather, it had simply spent some time reorganizing its affairs. Japan mandated that customer assets and interchange assets be kept apart and that the majority of exchange assets be stored in cold wallets as a result of these breaches. Japan's regulator proved effective when FTX crashed.

Also Read: Japan Returns Its First Crypto ATM After Four Years

The Chapter 11 international bankruptcy filing is unlikely to have a significant impact on the assets held by FTX Japan's Japanese customers, according to Ryosuke Ushida, a top fintech official at the Financial Services Agency, the body in charge of supervising cryptocurrency.

The majority of jurisdictions do not divide cryptocurrency assets. They are formally separated in Japan. That makes FTX Japan's decision to refund the funds easier.

 Also Read: Customers of FTX initiate class-action lawsuits in order to receive preferential damages.

They request this form of asset segregation because they've learned from failures made in the past, such as the hacks of Mt. Gox and Coincheck. Fortunately or unfortunately, they are used to crises of this nature in the crypto world. they are knowledgeable in comparison to other authorities, Ushida remarked. Users may be able to withdraw money from FTX Japan as early as February.

In stark contrast to the US, one of Japan's comparative advantages is regulatory clarity. In addition to a patchwork of regulatory agencies, the United States has several federal authorities, such as the Securities & Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC). The FSA is the only crypto regulator in Japan.

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White House Calls on Congress to ‘Step Up Its Efforts’ on Crypto Regulation

White House Calls on Congress to ‘Step Up Its Efforts’ on Crypto Regulation

by | Feb 1, 2023 | Market, Market News

The White House urges Congress to "Step Up Its Efforts" on Cryptocurrency Regulation

In a statement issued on Friday, four senior U.S. officials from the Biden administration urged Congress to "step up its efforts" to control the cryptocurrency industry.

The officials, which include National Security Advisor Jake Sullivan, Cecilia Rouse, Director of the National Economic Council Brian Deese, Director of the White House Office of Technology and Science Policy Arati Prabhakar, and Chair of the Council of Economic Advisors Cecilia Rouse, wrote that Congress should expand authorities’ powers to prevent misuses of customers assets... and to mitigate conflicts of interest. In the statement, Congress was also advised to enhance disclosure and transparency standards for cryptocurrency businesses, stiffen fines for violating laws governing illicit money, and interact more closely with foreign law enforcement partners.

Additionally, to leap headfirst into cryptocurrency markets while formulating new crypto regulations, the authorities recommended against Congress greenlighting mainstream institutions, such as pension funds.

Also Read: Biden’s government aims to have better crypto regulations

It would be a major blunder that deepens connections between cryptocurrencies and the larger financial system, the authorities cautioned.

Even though neither the spectacular failures of the disastrous LUNA stablecoin nor the now-defunct cryptocurrency exchange FTX was explicitly named in the statement, the effects of both figured prominently over the officials' advice 2022 as a tough year for cryptocurrencies plagued by the implosion of a so-called virtual currency prompting a wave of bank failures and the subsequent collapse of a major cryptocurrency exchange.

Some cryptocurrency firms disobey relevant financial laws and fundamental risk controls... Additionally, they added, Cryptocurrency platforms frequently deceive users, have a conflict of interest, fail to provide proper disclosures or engage in open fraud.

The White House's worries and recommendations are in line with those of other American regulators, including the Commodity Futures Trading Commission (CFTC) Council member Kristin Johnson, whom earlier this week urged Congress to start giving the CFTC more power to carry out thorough research on cryptocurrency acquisitions. However, Congress is not the only body with the power to regulate the cryptocurrency market.

Also Read: The U.S. Government might ban Bitcoin mining

The four officials claimed in their statement that the Biden administration would be announcing priorities for digital assets research and development, which will help the systems underlying cryptocurrencies protect consumers by default in the coming months. They said that Safeguards will ensure that new technologies are secure and advantageous to all - and that the new digital economy works for the many, not just a few.

Congress must exert more effort as well. For instance, Congress ought to give regulators more authority to avoid customer asset misuse, which harms investors and skews pricing, as well as to reduce conflicts of interest. Congress can also tighten the disclosure and transparency rules for cryptocurrency businesses so that investors can make more educated choices about the dangers to their money and the environment. It might increase the severity of the penalties for breaking the laws governing illicit financing and forbid bitcoin intermediaries from informing on offenders to aid law enforcement. It might provide more funding for improving the capacity for law enforcement, including with partners internationally. Additionally, it might reduce the risks posed by cryptocurrencies to the financial system by taking the actions recommended in the Financial Stability Oversight Council's most recent report, which includes addressing the dangers posed by stablecoins.

Congress might make our work tougher and raise risks to investors and the financial system, even while the action in these areas would be welcome. Legislation shouldn't permit to established organizations like pension funds to forge ahead in the bitcoin markets. Since last year, the volatility in cryptocurrencies has not spread to the larger financial system due to traditional financial institutions' low exposure to them. Adopting legislation that changes course and tightens linkages between cryptocurrencies and the larger financial system would be a major error.

Also Read: Bank of America announces new loan schemes for minority groups

The Administration fully endorses responsible technological advancements that reduce cost, increase speed, increase safety, and increase the accessibility of financial services. But to enjoy these advantages, new technologies require equivalent security measures. Protections will guarantee that new technologies are safe and helpful to everyone, ensuring that the new digital economy benefits everyone, not just a select few. We will continue to advance the digital assets framework we have created and collaborate with Congress to accomplish these objectives to put the proper safeguards in place.

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WazirX Says Binance Lied About Ownership as Dispute About India’s Largest Exchange Escalates

WazirX Says Binance Lied About Ownership as Dispute About India’s Largest Exchange Escalates

by | Feb 1, 2023 | Market, Market News

Emails received by CoinDesk have provided additional details on the ongoing conversation surrounding the vague and disputed ownership of WazirX, India's largest cryptocurrency exchange.

The ownership of WazirX was acknowledged in November 2019 after Binance, the largest cryptocurrency exchange in the world announced that it had possessed the Indian exchange in a blog post. Executives from WazirX spoke publicly about the acquisition. However, when WazirX ran into issues with the Indian authorities last summer, things began to change. In the first few days of August, Indian officials raided WazirX's Mumbai office on the grounds that the exchange had aided 16 fintech companies in money laundering.

Also Read: WazirX, a cryptocurrency exchange, has released Proof of Reserve to boost transparency.

Binance immediately took action to formally distance itself from WazirX. The Binance blog's initial acquisition announcement was revised to highlight that the agreement was only for the purchase of particular assets and intellectual property.

However, Changpeng CZ Zhao, CEO of Binance, stated in a tweet on August 5 that the company "does not own any equity in Zanmai Labs, the entity operating WazirX. A representative for Binance reacted to rumours that Binance owned WazirX as a fraud, according to CoinDesk.

A public back-and-forth between WazirX and Binance over who actually owned the Indian exchange ensued, lasting months. During this time, Binance maintained that the transaction never happened, while WazirX officials insisted that it did and claimed to have proof of this, though they never revealed it.

WazirX's proof, though, was obtained by CoinDesk this week when the dispute was getting heated.

Indian exchange WazirX received a letter from Binance early on January 26—a national holiday in India—in which the company issued two conditions that must be fulfilled by the end of the month or else Binance will cut off its relationship with WazirX by February 3.

Also Read: WazirX follows the footsteps of Binance and delists USDC

First of all, Binance instructed WazirX to repudiate previous states that Binance controlled WazirX by publishing a pre-written "clarificatory statement" that was provided by Binance. WazirX also had to remove any mentions of Binance from its terms of service.

On Friday, Zanmai, who's really WazirX's legal name, answered to Binance's demands in a statement that CoinDesk was able to get. It responded by claiming that the letter of demand was immoral and that it was an effort to use "media pressure and threats to coerce Zanmai into making false and deceptive assertions as clarifications.

Failure to Retract

Shetty refused to retract his earlier claims that Binance had obtained the Indian exchange in the letter to Binance's CEO and legal team.

In this week's letter, the company claimed that Zanmai has not made any false or deceptive assertions regarding Binance's role and responsibilities in administering the WazirX system, and Binance's control over WazirX's user assets.  Zanmai granted Binance ownership and control of the WazirX platform.

In the letter, Shetty also claimed that Binance had made significant gains as a result of its control of the exchange.

Binance had unilaterally taken out a significant amount of money (over USD 67 million) that it has accumulated through WazirX selected data, according to Shetty's email to Binance. Since Binance held the WazirX wallets, these money were transferred to an internal account under its sole control.

Also Read: WazirX And Binance Conflict Leaves The 100 Million Investors In Trouble

To back up his claim, Shetty supplied a chain of emails, some of which were deleted, between Brian Schroder, CEO of Binance US, and Tushar Patel, vice president of finance at WazirX, commencing on July 19, 2021, regarding an altered "share purchase agreement."

The agreement, dated January 13, 2020, assigns possession of specific WazirX accounts to Binance (the identity of which are redacted in the version CoinDesk reviewed).

The email chain states that WazirX was authorized to continue access[ing] and operat[ing] these accounts for the sole benefit of Binance, who was identified as "the absolute owner(s) of these accounts, under the terms of the agreement.

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Dogecoin and the Shiba Inu continue to struggle to recover as Big Eyes Coin updates its ROI calculator

Dogecoin and the Shiba Inu continue to struggle to recover as Big Eyes Coin updates its ROI calculator

by | Feb 1, 2023 | Altcoin News, News

Death, taxes, and the latest recent crypto news that dazzles you, even more, are the only three certainties in life.

Big Eyes Coin (BIG), which has updated its ROI calculator so traders can see how much their coins will be worth when the meme coin reaches $1, is the best place to begin.

Also Read: Big Eyes Coin Intends To Raise As It Aims To Quench Meme Coin Competitors

When BIG rises to $1 per token, the current valuation of $365 will be worth an astounding $1,000,000, according to the Big Eyes Coin Twitter feed.

Therefore, investors should acquire Big Eyes Coin right away if they don't want to miss out, particularly because it is still on presale and can be purchased with a 200% bonus by using the promo code LAUNCHBIGEYES200. Sadly, not all crypto news is good news. Shiba Inu (SHIB) and Dogecoin (DOGE) are still fighting to reach their former all-time highs.

Dogecoin's price as of this writing is $0.08583, far lower than its top of $0.6358 reached back in May 2021. Shiba Inu is now trading at $0.00001159, a pitiful amount especially compared to its all-time high of 0.00007489 set in October 2021.

Also Read: How BIG is ruling over other Eth tokens

Dogecoin: With Magic Musk, Anything Is Possible

Dogecoin is well renowned for its easy, quick, and affordable transactions in a welcoming community of meme enthusiasts.

But what makes it even more well-known is that it is Elon Musk's preferred cryptocurrency. Since Musk tweeted the first mention of Dogecoin in 2019, many analysts believe this is one of the key factors contributing to the parody coin's rise.

The unsettling fact is that the billionaire's impact on Dogecoin is still felt today. In the weeks before Musk acquired control of Twitter in October 2022, Dogecoin briefly surpassed Cardano (ADA) in the cryptocurrency rankings.

The Bitcoin Mining Council has regularly said that bitcoin mining is growing in its quarterly reports. According to the organization's most recent Q4 report, Bitcoin mining has a 58.9% sustainable energy mix, making it one of the most ecologically friendly industries in the world. How long DOGE will be the only cryptocurrency accepted for payments is currently unknown. If DOGE remains the only cryptocurrency accepted for payment, that will have to be shown.

Also Read: Will BIG, BNB, and CRO be adopted globally?

Therefore, Dogecoin still has the potential to revive and match or better its prior heights in the cryptocurrency sector as long as Elon is still alive.

Shiba Inu: More Than A Dogecoin Lookalike

Shiba Inu was marketed as the "Dogecoin Killer" when it was released in August 2020, but due to its lack of uniqueness, it was more of a second-hand version. But when Shiba Inu debuted its huge staking prizes, everything changed.

In short, investors may earn additional income from other tokens in the network like SHIB, BONE, and LEASH by staking or "burying" Shiba Inu currencies. The payout value increases as more tokens are staked. Ocean conservation and the release of the top ten NFTs with Big Eyes Coin

Contrary to other cryptocurrencies on the market, Big Eyes Coin intends to have a significant impact. It is not your typical meme coin.

Also Read: Upcoming Crypto Listings that will gain attention in 2023! know them here

Giving to organizations that protect the ocean is one of its methods. The Seashepherd and Orca Network, both of which seek to enhance the health of marine life worldwide, will each get 5% of the entire supply of Big Eyes Coin. Second, Big Eyes Coin intends to release the top 10 NFTs, and judging by its website, this is likely to feature a stunning collection of virtual cats that could one day fetch big prices.

Final Thoughts

The most current cryptocurrency news should never be overlooked if you're an interested coin collector, especially because Big Eyes Coin has introduced such an intriguing calculator tool on its website, which supports buying it in addition to its highly unique features. Despite their recent poor performance, Dogecoin and Shiba Inu both have the ability to turn things around. Shiba Inu has its creative staking incentives, Dogecoin has Elon.

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Tesla Continues to Hold Bitcoin, Has No Dogecoin, But Retains DOGE-Only Payments

Tesla Continues to Hold Bitcoin, Has No Dogecoin, But Retains DOGE-Only Payments

by | Feb 1, 2023 | Bitcoin, News

The fourth-quarter financial report from electric car maker Tesla reveals that the company's Bitcoin holdings have remained unchanged and that its Dogecoin holdings are all still zero.

In an article, The Elon Musk-led company stated in the report that it did not buy or make Transactions in the fourth quarter despite a recent market drop. With this, Tesla demonstrates its power and its belief in the worth of Bitcoin, despite the fact that the company's investment in the cryptocurrency is still losing revenue.

Also Read: Elon Musk Tesla holding $218 Million in BTC!

Tesla also announced that, subject to applicable rules and initially on a limited basis, it will begin taking bitcoin payments in exchange for its products. Tesla would be the first significant automaker to do so. Once Tesla begins taking bitcoin as payment, the $1.5 billion worth of bitcoin will provide it access to the cryptocurrency's liquidity.

With its entrance into bitcoin, Tesla has committed a large portion of its capital to the investment. According to its most recent statement, the corporation has more over $19 billion in cash and cash equivalents on hand by the end of 2020.

Tesla sold 75% of its Bitcoin holdings for $936 million in the second quarter, which was the company's most recent sell. As of December 31, Musk's company had $184 million in Bitcoin (estimated at 9,720 BTC), down roughly $34 million from $218 million in the third quarter.

Dogecoin Isn't Listed on Tesla's Balance Sheet

However, Elon Musk's preferred cryptocurrency is still not included in Tesla's financial reports. There is not a single mention of the meme coin in the paper. Nevertheless, the DOGE community may at least take pride in the fact that the meme coin is still the only cryptocurrency that Tesla accepts as payment on its website.

The company also specifically says that DOGE is not allowed, even in the event of purchase cancellation. Every Dogecoin transaction is final. Dogecoin purchases are final and cannot be exchanged, canceled, or returned. Dogecoin transactions are final and cannot be swapped for cash or returned.

Tesla stopped using Bitcoin for all purchases in May 2021 as a result of mounting pressure from the ESG group over environmental issues. Later, in March 2022, Elon Musk announced that DOGE may be used to pay for Tesla goods.

Also Read: How Elon Musk decision of buying Twitter is going to affect “Dogecoin”?

But since then, things have changed. Michael Saylor of MicroStrategy established the Bitcoin Mining Council, and Musk declared that Tesla will resume processing Bitcoin payments if mining reached a 50% sustainability level.

This is something that the Bitcoin Mining Council has frequently said in its quarterly reports: bitcoin mining is increasing. One of the most environmentally sustainable enterprises in the world, Bitcoin mining has a 58.9% sustainable energy mix, according to the organization's most recent Q4 report. It's unclear how long DOGE will be the only cryptocurrency accepted for payments. We'll have to wait and see if DOGE will continue to be the only cryptocurrency accepted for payment.

DOGE Price at Time of Writing

At the time of publication, the price of DOGE was $0.0858, maintaining essentially unchanged after seeing a 41% increase from December 30 to January 22, when it reached a local high of $0.0928.

What would happen if Elon Musk resumed his dogecoin shilling?

In the wake of aggressively pushing what he calls his favorite cryptocurrency, billionaire Elon Musk, Dogecoin has fallen far from its all-time high of $0.7. Even with the current bull feeling, the parody coin is still trending downward, but Musk might resume his extremely public support for Dogecoin at any point.

Elon Musk continues to have a significant impact on the Dogecoin ecosystem and, consequently, the value of the meme coin. The price of DOGE increased by nearly 150% in a matter of days only because Musk had acquired Twitter. But the billionaire hasn't said much about cryptocurrency thus far.

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