“A Vital Market”: Coinbase Granted License in Singapore

Leonardo Perez
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“A Vital Market”: Coinbase Granted License in Singapore

The exchange gained an in-principal license last year and it is stressing on offering locally curated services in Singapore.

San Francisco-based cryptocurrency exchange Coinbase (COIN) has strengthened its presence in Southeast Asia by obtaining a Major Payment Institution (MPI) license from the Monetary Authority of Singapore.

Announced today, Monday, the crypto exchange obtained full license after a year of primary approval by the city-state regulator. Coinbase previously considered entering the country by acquiring a now-bankrupt crypto exchange, Zipmex, but pulled out of the deal in mid-2022.

Singapore is home to over 700 Web3 companies, making it a key market for the growth of the crypto and Web3 economies. Coinbase has been actively developing and launching products tailored to the Singapore market and plans to continue fostering strong relationships with industry associations and make region-specific investments.

“We have identified Singapore as a vital market for Coinbase,” Nana Murugesan, vice president of international and business development at Coinbase, and Hassan Ahmed, Singapore country manager at Coinbase, wrote in a joint blog post.

“The nation’s progressive economic strategies and regulatory approach synchronize well with our global mission and objectives,” Murugesan added.

High retail demand for cryptocurrencies in Singapore also pushed many businesses to enter the small country, which is also referred to as a gateway to the vast markets of Southeast Asia. Coinbase also highlighted a survey that found that 25 percent of Singaporeans see cryptocurrencies as the future of finance, and 32% own or hold cryptocurrencies.

“In response to the growing demands of the region and the unique dynamics of the market, we have actively developed and launched products designed specifically for Singapore,” added two Coinbase executives.

In fact, the American exchange added local financing options to its services in Singapore and integrated SingPass to streamline onboarding processes. Additionally, the exchange offers fee-free USDC purchases with SGD.

Coinbase Expansion Goals

While Coinbase strengthened its presence in Southeast Asia, its future in India is in danger. The exchange canceled new registrations on its crypto exchange in the country. The exchange also terminated the accounts of Indian users who did not comply with its guidelines.

However, Coinbase is expanding to other jurisdictions by obtaining local licenses. It recently registered as a virtual asset service provider (VASP) in Spain and also has similar approvals in Italy, Ireland and the Netherlands.

Additionally, the exchange obtained regulatory approval from Bermuda’s financial regulator to allow perpetual futures trading for retail clients outside the United States. Meanwhile, the exchange is embroiled in a legal battle with the US securities regulator.

Coinbase Continues to Invest in Web3

Singapore serves as Coinbase’s Asia Pacific technology hub, and the company has actively invested in more than 15 Web3 startups in the region through its investment arm, Coinbase Ventures.

In August, Coinbase reported an improvement in its financial results, with its second-quarter net loss narrowing to $97 million from a record $1.1 billion a year earlier. The company’s second-quarter revenue, which beat estimates, totaled $707.9 million, although it fell 12% from the previous quarter.

Despite regulatory challenges, including a lawsuit filed by the US Securities and Exchange Commission (SEC) for alleged illegal operations, Coinbase has managed to perform well.

By Leonardo Pérez

EU Commission Taking Action Against BTC

Audy Castañeda
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EU Commission Taking Action Against BTC

The EU Commission provides 800,000 euros to demonstrate the alleged climate damage caused by Bitcoin. What measures could now be implemented against BTC?

One might think that the big questions about cryptocurrency regulation have been clarified in the European Union. Finally, the Markets in Cryptoasset Regulation (MiCA) was passed and the temporary ban on Bitcoin was successfully avoided. However, a new tender from the European Commission indicates that action is now being taken again against Bitcoin.

The implications are significant, as they could lead to Bitcoin and Bitcoin mining being discriminated and overregulated in the EU in the future.

EU Commission: Why So Curious?

At the end of September, the European Commission published the following call for proposals: “Development of a sustainability methodology and standards to mitigate the environmental impact of cryptoassets.” They are willing to spend 800,000 euros in taxes on the new methodology used to assess the environmental damage of cryptocurrencies.

For starters, a scientific study of cryptoeconomics is praiseworthy, although a closer reading reveals that it is not primarily about acquiring knowledge, but primarily about political interests. The reason can be found in the detailed explanation of the tender. The EU Commission is already certain that cryptocurrencies cause ecological and social damage.

Tax Money for Bitcoin

Specifically, the call states that “There is evidence that cryptoassets can cause significant damage to the climate and the environment and generate negative economic and social externalities, depending on the consensus mechanism used to validate transactions.”

This introduction indicates that the research does not focus on various cryptocurrencies, but ultimately only focuses on Bitcoin. The anti-Bitcoin camp in the EU is once again trying to collect alleged evidence and then implement separate measures against Proof-of-work, i.e., Bitcoin. Ultimately, the crypto economy would contribute to jeopardizing the sustainability goals set out in the Paris Climate Agreement, according to the brief description.

Therefore, a neutral tender cannot be expected. Only research institutes that take a critical stance towards Bitcoin can receive a contract. Therefore, this is not an open investigation, but rather a commissioned work that aims to “assess the negative impact of Bitcoin.” Recent statements and studies that show exactly the opposite – that Bitcoin has the potential to have a positive impact on the climate – seem to be deliberately ignored.

The Last False Argument        

The “climate killer argument” appears to be the latest bullet casing for Bitcoin opponents in Brussels. As reported in the MiCA negotiations, there is a partly strongly ideological movement against Bitcoin, especially in the Green and Left camps.

It is not known exactly what a subsequent regulation of Bitcoin will look like in the future. However, it can be safely assumed that the damage would be enormous.

Anti-Bitcoin Measures Endanger MiCA

As an officially climate-damaging cryptocurrency, Bitcoin could be discriminated against compared to Ether and Co. For example, the EU could ban Bitcoin mining, impose an environmental tax on BTC transactions, or require companies like stock exchanges to only offer Bitcoin from green production for commerce or use for services.

Regardless of what is finally implemented, one thing is certain: the progress made in recent months on the MiCA regulation and the subsequent strengthening of Europe as a place would be destroyed in the event of anti-Bitcoin measures. After all, regulatory certainty is of no use if the most important cryptocurrency cannot be used economically.

By Audy Castaneda

Crypto Analysts Remain Optimistic: SEC Postpones Bitcoin ETF Verdict for BlackRock, Invesco and Bitwise

Leonardo Perez
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Crypto Analysts Remain Optimistic: SEC Postpones Bitcoin ETF Verdict for BlackRock, Invesco and Bitwise

Such measure, which affects the applications of major crypto players such as BlackRock and Invesco, has caused serious discussions among analysts.

Eric Balchuna says that by the end of 2024, there is a 95% chance that a Bitcoin spot ETF will be approved, up from a 75% chance this year.

The United States Securities and Exchange Commission (SEC) has once again postponed its decision on multiple Bitcoin spot exchange-traded fund (ETF) proposals. The turn of events occurred two weeks earlier than expected.

Thus, the SEC continues its practice of delaying the review of Bitcoin spot ETF applications, despite members of Congress this week publicly asking it to approve them due to the court ruling in the Grayscale case.

This delay can be attributed to the looming possibility of a US government shutdown, scheduled to take effect on October 1, should essential funding bills fail to win approval from Congress.

Such a shutdown would inevitably disrupt the operations of the country’s financial regulators and other federal agencies. Their avoidance depends solely on Congress successfully passing 12 separate full-year funding bills before the Oct. 1 deadline.

This recent delay marks another chapter in recurring postponements by the SEC, bringing back a previous round of setbacks that occurred in late August after the first deadline.

Market Optimism Amid Delay in SEC Decision on BTC Spot ETF

Financial experts continue to have a positive outlook on the chances of a Bitcoin ETF being approved, as well as the future of the broader market, despite the current regulatory uncertainty.

Notably, Bloomberg analysts James Seyffart and Eric Balchuna claim that by the end of 2024, there is a 95% chance that a Bitcoin spot ETF will be approved, up from a 75% chance this year. A notable court decision in favor of Grayscale, which hinted at a possible shift in regulatory sentiment, is what led to this optimistic projection.

Likewise, the respected crypto analyst known as Crypto Rover shares the conviction that SEC approval of the Bitcoin spot ETF is inevitable. He also cites Grayscale’s recent legal victory against the SEC as a key factor supporting his stance.

Furthermore, he anticipates that despite the official application deadline set for January 10, 2024, the approval of the BTC spot ETF may materialize sooner than expected. In his words:

“If the SEC decides to approve an ETF, it’s probable they would give the green light to all of them at once. They wouldn’t approve BlackRock’s alone and reject the others.”

The Market Anticipates Final Decision

Despite the numerous speculations and beliefs, the final decision is still in the hands of the SEC. However, a compelling argument can be made that the SEC may find itself with little choice but to grant approval, particularly given that the companies involved have diligently complied with the requirements stipulated by the commission.

Additionally, growing accusations of being against cryptocurrencies further intensify the pressure. The cryptocurrency market is eagerly awaiting the SEC’s decision.

The final choice can have a significant impact on the market, possibly changing the course of Bitcoin and other digital assets while affecting investor sentiment. One thing is certain as the sector prepares for this critical juncture: all market attention is focused on the impending SEC decision, which has the potential to completely reshape the future of the industry.

By Leonardo Pérez

Ethereum ETF: Valkyrie Stops Purchasing ETH Futures Contracts

Audy Castañeda
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Ethereum ETF: Valkyrie Stops Purchasing ETH Futures Contracts

Valkyrie had filed its unique Ethereum ETF application with the SEC in August. The asset manager was looking to convert its existing Bitcoin Strategy ETF (BTF) into a combined Bitcoin and Ether futures ETF.

Ethereum futures exchange-traded funds (ETFs) are the latest trend in the cryptocurrency market, with institutional players changing lanes after the US Securities and Exchange Commission (SEC) delayed decisions on Bitcoin ETFs cash.

Asset management company Valkyrie, one of the pioneers of the first Ethereum ETF in the United States, has decided to pause the purchase of Ether futures contracts until the US Securities and Exchange Commission approves an Ether futures ETF.

This comes just a day after the asset manager reportedly gained approval to offer investors exposure to Ether futures under its existing ETF (BTF) strategy.

The SEC Could Be Behind This Action, Speculates a Bloomberg Expert

On Friday, September 29, Valkyrie filed a 497 with the SEC, saying it would stop purchasing Ether futures contracts and unwind its existing positions. A part of the file said:

“Effective immediately, the fund will not purchase Ether futures contracts until an amendment to the fund’s registration statement comes effective that provides for the addition of Ether futures contracts to the fund’s primary investment strategy. Until then, the fund will undo any existing positions in Ether futures contracts.”

As reported on Thursday, September 28, the SEC appears to be accelerating the approval of the Ethereum futures ETF in anticipation of a possible US government shutdown next week. Following this report, Valkyrie revealed that it had begun purchasing Ether futures contracts for its blended strategy ETF ahead of a possible launch next week.

However, this latest action raises questions about the chances of Valkyrie becoming one of the first companies to introduce an Ethereum ETF in the United States.

Bloomberg analyst Eric Balchunas has presented a possible reason for Valkyrie’s decision to stop and undo its Ether futures purchases. “The SEC must have threatened to take him down,” Balchunas speculated via a post on X (formerly Twitter).

Balchunas further added that: “The jockeying has begun in full as Valkyrie announcing they are buying Ether futures for $BTF today (ahead of formal name change on Tue). In related news, hearing that some issuers are ready to launch Monday morning, unclear how many yet, but at least a couple. Game on.”

Nine Ethereum ETFs Launching Next Week?

According to analysis by Eric Balchunas, around nine Ethereum ETFs will potentially begin trading on Monday, October 2. Notably, asset manager ProShares owns three of these funds, two of which are combined Bitcoin and Ethereum ETFs.

VanEck is another of the pioneers in creating the first Ether futures ETFs in the US. The investment manager recently announced his intention to donate 10% of the profits from his Ethereum ETF (EFUT) to The Protocol Guild, a compensation plan for top Ethereum contributors. VanEck wrote on X (formerly Twitter) the following:

“If TradFi stands to gain from the efforts of Ethereum’s core contributors, it makes sense that we also give back to their work. We urge other asset managers/ETF issuers to consider also giving back in the same way.”

The ETH price has seen some respite since news began circulating about the possible launch of the Ethereum ETF. Ether is valued at $1,676, reflecting a substantial 5% price increase over the past week.

By Audy Castaneda

FTX Hacker Moves $4 Million in ETH During Upcoming SBF Test

Leonardo Perez
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0
FTX Hacker Moves $4 Million in ETH During Upcoming SBF Test

The unknown attacker moved around 2,500 ETH in several transactions, splitting and routing the funds through privacy-focused DeFi bridges and platforms.

The anonymous exploiters responsible for hacking the FTX exchange last November have shown signs of life just recently. A staggering 2,500 Ether (ETH), worth $4 million, have been moved to new addresses. This comes as FTX founder Sam Bankman-Fried is days away from standing trial on fraud charges in the US.

Wu Blockchain informed of such event via X on September 30, in the following terms:

“FTX Exploiter 0x3e957 just moved 2500 ETH ($4.2M) to new addresses. This is the first time the address has been active since the hack 10 months ago. The address still holds 12.5K ETH. According to @spotonchain.”

Blockchain analysis company SpotOnChain was the first to detect the movement, reporting that the wallet linked to the FTX exploit initiated transactions for the first time in almost a year.

This activity occurred during the early hours of Saturday, September 30, an interesting choice given that weekends often see lower trading volumes, thus maximizing the potential impact on cryptocurrency markets.

The Sophisticated Movements

The 2,500 ETH was not simply transferred in one go. The funds were divided and routed through a labyrinthine series of transactions. 700 ETH passed through the Thor Chain Routers while 1,200 ETH moved through the Railgun Privacy Tool. Another 550 ETH were placed in an intermediate wallet.

Thorchain is known for allowing cross-swaps without revealing wallet addresses. In contrast, Railgun is a private wallet that protects transactions, making it difficult for controllers to track the exact use of funds.

Despite these disturbing movements, the astronomical figure of 12,500 ETH, equivalent to approximately $21 million, remains dormant in the original wallet. Given this latest activity, the crypto community is abuzz with speculation about when and if these remaining funds will come into action.

A Curious Moment

The move comes just under a year after the theft of the funds, just on the eve of the trial against Bankman-Fried in the US, who is accused of a dozen counts related to fraud and embezzlement. The trial against Bankman-Fried begins on October 2, and he appears as the only former FTX director who claims to be innocent of the events that led to the collapse of the international exchange.

Some critics claimed that the same Bankman-Fried might be the responsible hacker, but there was no conclusive evidence to confirm this. Therefore, the identity of the attacker remains a mystery.

The Backstory of FTX: From Bankruptcy to Court

Last November 11, FTX accounts were emptied of a staggering $600 million worth of cryptocurrency, just hours after the exchange filed for bankruptcy and Sam Bankman-Fried resigned as leader. The identity of the attackers has never been confirmed, although rumors persist that it may have been an inside job.

This hacking incident resurfaces just days before Bankman-Fried is scheduled to stand trial on fraud and conspiracy to commit fraud charges in the United States. The trial is expected to be a high-stakes affair, as former FTX and Alameda Research executives who have pleaded guilty will testify against Bankman-Fried.

After the hack, the stolen funds were moved to 12 different crypto wallets, each holding 15,000 ETH. The 2,500 ETH transferred today are part of these initial storage locations. Shortly after the exploit, approximately 21,500 ETH were converted into DAI stablecoins, while a colossal amount of 288,000 ETH remained intact in addresses linked to the attacker.

By Leonardo Pérez

The Cryptocurrency Regulator Has an Atrocious Plan

Audy Castañeda
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The Cryptocurrency Regulator Has an Atrocious Plan

The SEC quietly changes the law, apparently for the worse.

The SEC has always turned a deaf ear to allegations of power abuse by the crypto community. Lately, Paradigm has come to the fore. In fact, the venture capital firm blames the actions of the digital asset regulator. The latter would have exceeded the limits in the case that confronts it with the cryptographic giant Binance.

Binance, Guinea Pig of a Machiavellian SEC?

Binance and CZ have already cited abuse of discretion in a joint motion asking the court to dismiss the SEC’s lawsuits. Instead of clearing things up from the beginning, this cryptocurrency market regulatory institution decided to arbitrarily attack several cryptocurrency exchanges (including Binance).

On September 30, Cointelegraph posted on X that “Paradigm calls out the SEC, claiming they’re using allegations not just to accuse, but to change the law—bypassing the regular rulemaking.”

Thus, the list of anti-SEC continues to grow. According to Cointelegraph, Paradigm uncovered the US Securities and Exchange Commission’s shenanigans in the Binance matter. The venture capital firm did not hesitate to mention this in its amicus curiae brief in the Binance vs. SEC case.

“In this case, the SEC is attempting to take advantage of the disturbing allegations it makes in its complaint to change the law while circumventing the rulemaking process. The SEC is clearly acting outside the scope of its authority and we oppose this maneuver,” the communication reads.

In the introduction, Paradigm clarified that it has no stake in Binance and does not expect to make profits through this approach. “However, we believe that it is essential to oppose government overreach, regardless of who is defending it,” according to Rodrigo Seira.

Paradigm said the SEC’s attack on at least three cryptocurrency exchanges shows how much it wants to control secondary crypto markets.

However, in his latest testimony before Congress, Gary Gensler admitted that his agency does not have the power to regulate those same markets: “The exchanges that trade these cryptoassets do not have a regulatory framework.”

Binance Matter and Securities Regulation

In its pro-Binance (BNB) amicus brief, Paradigm pointed out the SEC’s theory affecting the foundations of securities law.

First, the SEC would force the Court to admit that an “investment contract” does not need a contract. However, the law requires contractual commitments for any investment contract.

“Selling a crypto asset, especially in secondary markets, promises nothing more than delivery of the crypto asset. The SEC cannot demand a formal contract where none exists thanks to a legal trick,” explains Paradigm.

Second, the SEC’s logic aims to classify all sales of any asset as securities. This will make it easier for them to apply their own laws to these assets.

However, “courts have long held that the mere fact that an asset may increase in value due to market forces does not mean that there is a ‘reasonable expectation of profits’ that would convert the sale of the asset into an investment contract.”

Finally, Paradigm describes as unreasonable the interpretation of the SEC, Binance’s executioner, of the “investment contract”.

“The regulation of cryptoassets is of such economic and political importance that the SEC needs clear authorization from Congress to participate in said regulation. A 77-year-old interpretation (Howey) of a 90-year-old law (the Securities Act) hardly provides this clarity,” reads the last lines of this report in support of Binance.

By Audy Castaneda

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