Category: Crypto News

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Bitcoin Crypto News Regulation

Brazil Inches Closer to Passing Historic Bitcoin Bill

Brazil has edged one step further to regulating Bitcoin and cryptocurrencies. The South American country will be overseen by a more complete regulatory framework as different sectors of the government strive to pass an amended draft bill in the first half of this year.

Regulation of Bitcoin and other cryptocurrencies might come sooner than first thought as the draft bill creeps closer to law. Originally, there were two separate draft bills being discussed in parallel, but only one will keep advancing – the House Bill 4401/21.

First Round Approval for Legislation

The legislation, which has been the subject of talks in the Chamber of Deputies since 2015, has been approved in the first round of consideration. The Senate has attached itself to a different crypto-focused bill, which has already been granted approval by the Economic Affairs Committee of the Senate.

Senator Iraja Abreu and Deputy Aureo Ribeiro, two legislators and rapporteurs of the proposals, are drafting a unified text of the bill that will be sent to the full Senate for voting.

Senator Abreu has said: “I’m doing everything in contact with the Chamber’s rapporteur, who did a very good job. The Central Bank’s technical team has also been very helpful. The texts are similar and [have] converged into one.”

Abreu also pointed out that the president of the Senate, Rodrigo Pacheco, was expected to put the bill to a vote this month, adding: “By joining the projects together, we have accelerated the approval of this cryptocurrency milestone. There is a market demand for a safer business environment and the need for criminal classification to avoid fraud, in addition to adjusting Brazil to international agreements.”

Bitcoin Will Not Become Legal Tender in Brazil

The approval of the bill does not mean that bitcoin will be accepted as legal tender in Brazil. The proposed law would simply allow the Brazilian president, Jair Bolsonaro, to determine a federal entity responsible for regulating digital assets. Bolsonaro would either establish a new regulator or may delegate regulation to the nation’s Securities and Exchange Commission, or the Central Bank of Brazil.

Other Jurisdictions Attempting to Regulate Digital Assets

Earlier this week, Crypto News Australia reported that a former Blockstream executive had announced three jurisdictions that were set to make Bitcoin legal tender. Roatan in Honduras, Madeira in Portugal, and Mexico are in talks to make the cryptocurrency legal tender in its territories.

This is a very bullish sign as countries begin to see the benefit of adopting digital assets. A prime example is Ukraine, whose president Volodymyr Zelenskyy last month signed into law a bill that legalised the cryptocurrency market and established a more favourable regulatory framework for the war-torn country.

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Crypto News Ethereum

Ethereum’s Move to Proof-of-Stake Delayed as ‘Merge’ Postponed to Q3

Do not expect Ethereum to move to the PoS (Proof-of-Stake) system this June, as Ethereum core developer Tim Beiko recently tweeted that the “Merge” will have to be postponed to Q3:

‘Don’t Invest in ETH Mining Rigs’

The Merge – a stage in Ethereum’s transition from PoW (Proof-of-Work) to PoS – has been delayed again, even though the developer team announced it was moving forward with the transition after a successful test of the shadow fork.

In the Twitter thread, Beiko was asked by a user if there was any advice or info for miners who have been investing in rigs. Beiko replied: “I would strongly suggest not investing more in mining equipment at this point.”

Most people in the crypto community, of course, weren’t happy with another delay, which adds to a long string of holdups for a project that was originally intended to be completed as long ago as 2019:

The Ethereum Foundation has been working for the transition of Ethereum to a PoS consensus system in a project originally called ETH 2.0, since rebranded to “Consensus Layer”.

As is well known, network congestion and exorbitant gas fees are common pains for most people who frequently interact with the network. The upgrade will signify a higher throughput and reduce gas fees, though users will have to wait until they see the transition coming to life.

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Crypto News NFTs Social media

Dorsey’s First Tweet Lists for $48 Million But Gets Top Bid of $10,000

In determining the value of any asset, including NFTs, price is arguably the arbiter of truth. What, then, to make of an NFT of Jack Dorsey’s first tweet receiving a highest bid at just a fraction of its asking price?

‘Like the Mona Lisa’

Controversial entrepreneur Sina Estavi purchased Jack Dorsey’s first tweet (below) as an NFT in March 2021 for US$2.9 million. At the time, Estavi defiantly told naysayers:

Jack Dorsey’s first tweet NFT. Source: Opensea

Last Thursday, he then announced on Twitter that he wished to sell the NFT, and pledged 50 percent of its proceeds (which he thought would exceed US$25 million) to charity:

Dorsey, who since resigning from Twitter has been far more inclined to express what he really thinks, tweeted:

The auction closed April 13, with just seven total offers ranging from 0.09 ETH (US$277 at current prices) to 0.0019 ETH (almost $6). After opening the auction up again, at the time of writing bids on OpenSea had risen to US$10,882.40. Still, not quite the return on investment expected.

NFT Market Losing Steam

Last year, NFT was the word of the year, but this year the smart money may be more inclined to short it.

In 2021, brands could casually ride the NFT trend with success, but those late to the party, such as Liverpool Football Club, have encountered firm market resistance. As reported by Crypto News Australia last week, only 6 percent of the “LFC Heroes Club” NFT collection sold, making it one of the more spectacular failures in recent memory.

In the reality television series Survivor, host Jeff Probst utters the immortal words “the tribe has spoken” as castaways are voted off the island. In the context of Dorsey’s tweet, perhaps another tribe has spoken, so to speak.

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Crypto News Nexo Payments

Nexo’s New Crypto Credit Card Allows Users to Spend Without Selling Their Crypto

Crypto lender Nexo has partnered with Mastercard and peer-to-peer payment startup DiPocket to launch the Nexo Card, a credit facility that allows holders to use their crypto as collateral rather than sell it outright:

Europe Now, Australia (and the Rest of the World) Later

Though currently limited to 29 countries in the European Union as well as the UK, the Nexo Card will eventually be available worldwide, including in Australia. According to Nexo co-founder and managing partner Antoni Trenchev:

This unique product will allow millions of people, first in Europe and then worldwide, to spend instantly without having to give up the potential of their cryptocurrencies, thus offering unprecedented everyday utility for the emerging asset class.

Antoni Trenchev, co-founder and managing partner, Nexo

Nexo anticipates the Nexo Card will be accepted by up to 92 million merchants worldwide where Mastercard is also accepted, allowing investors to spend up to 90 percent of the fiat value of their crypto in seconds without having to part with any of it.

Interest Rate Pegged at Zero

The Nexo Card’s credit line starts and remains at the zero percent annual percentage rate and is the first-of-its-kind crypto-backed Mastercard. It also requires no minimum repayments and incurs no foreign exchange fees for amounts up to 20,000 euros (A$30,000). Like traditional Mastercards, the Nexo Card is available as a virtual as well as a physical card and comes with direct Apple Pay and Google Pay integrations.

“The Nexo Card functions through Nexo’s crypto-backed credit lines, which means that funds for your purchases come from your available credit line while your digital asset portfolio remains intact,” according to a Nexo spokesperson, who added that the collateral is subject to repayments in accordance with Nexo’s terms and conditions.

Late last year, Nexo partnered with Singaporean hedge fund Three Arrows Capital to launch its new NFT-backed lending services, meaning clients can borrow digital assets using NFTs as collateral.

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Australia CBDCs Crypto News Investing Regulation Trading

Australia and Singapore Create New FinTech Bridge to Grow Digital Finance

The Monetary Authority of Singapore (MAS) and the Australian Treasury have come together to sign the Australia-Singapore FinTech Bridge Agreement, which an MAS media release describes as a measure to strengthen cooperation between both countries’ FinTech ecosystems:

Building a FinTech Bridge

The agreement will see two industry regulators facilitating trade and investment in their respective sectors. These regulators will also develop ties among industry groups, policy officials and other regulators, with further plans to develop FinTech companies in each other’s markets to create new opportunities and minimise entry barriers.

https://www.lawyersweekly.com.au/biglaw/24799-investment-groups-in-singapore-and-australia-acquire-figtree-grove-shopping-centre
MAS and the Australian Treasury have flagged a FinTech agreement.

The Bridge Agreement is likely to explore joint innovation projects in other emerging areas including blockchain, sustainable finance, data portability, and cross-border data connectivity. However, the first step for the partnership is to develop a framework for bilateral collaboration and joint projects.

Australian CBDC Partnerships

The agreement comes less than a month after the central banks of Australia, Malaysia, South Africa, Singapore, and the Bank for International settlements (BIS) announced plans to explore multi-CBDC platforms.

On March 25, BIS released a report announcing the results of two multi-CBDC platforms it had been working on, finding that while these platforms were technically viable, they faced governance, coordination, and jurisdictional challenges. Opportunities are available, although more exploration into the application of these platforms is required.

To learn more about CBDCs, Crypto News Australia has put together a guide on CBDCs and stablecoins.

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ChainLink Crypto News Ethereum Market Analysis Trading WOO Network

Top 3 Coins to Watch Today: ETH, LINK, WOO – April 15 Trading Analysis

Let’s take a closer look at today’s altcoins showing breakout signals. We’ll explain what the coin is, then dive into the trading charts and provide some analysis to help you decide.

1. Ethereum (ETH)

Ethereum ETH is a decentralised open-source blockchain system that features its own cryptocurrency, Ether. ETH works as a platform for numerous other cryptocurrencies, as well as for the execution of decentralised smart contracts. Ethereum’s own purported goal is to become a global platform for decentralised applications, allowing users from all over the world to write and run software that is resistant to censorship, downtime and fraud.

ETH Price Analysis

At the time of writing, ETH is ranked the 2nd cryptocurrency globally and the current price is US$3,034.89. Let’s take a look at the chart below for price analysis:

Source: TradingView

ETH‘s long-term range from Q1 highs could be coming to an end. The 9, 18 and 40 EMAs flipped bullish at the beginning of April after late March’s retracement, showing strength as BTC recovered. Currently, the price is hovering just under the monthly high as bulls take some profits.

Two swing highs and the 9 EMA could mark $3010.87 to $2940.72 as an area of possible support. A deeper retracement will likely find some buyers around the 61.8% retracement near $2760.59.

The monthly high will likely see some profit-taking, but the area near the 27% extension, at $3560.12, could also provide some resistance. The 61.8% extensions of the last two swings converge near $3820.54, which could be the target for a monthly high break before a new setup emerges.

The Chainlink Network LINK is driven by a large open-source community of data providers, node operators, smart contract developers, researchers, security auditors and more. The company focuses on ensuring that decentralised participation is guaranteed for all node operators and users looking to contribute to the network. Chainlink allows blockchains to securely interact with external data feeds, events and payment methods, providing the critical off-chain information needed by complex smart contracts to become the dominant form of digital agreement.

At the time of writing, LINK is ranked the 24th cryptocurrency globally and the current price is US$13.64. Let’s take a look at the chart below for price analysis:

Source: TradingView

LINK‘s early March spike retraced near $13.00 into the consolidation that began the impulse before bouncing to $16.90. 

This consolidation could provide support again, although bears would first have to push the price through possible support near $12.85. The market’s structure may be shifting bearish, with $12.32 likely to provide some resistance if this is the case. A sustained bearish move could reach the swing low near $11.70 before finding support near $11.23.

However, the bullish higher-timeframe trend might prevail, with relatively equal highs near $17.78 potentially giving an attractive target to lure the price over the monthly open. If so, the price could reach for the midpoint of the December wick near $20.58.

3. WOO Network (WOO)

WOO Network is a deep liquidity network connecting traders, exchanges, institutions and DeFi platforms with democratised access to best-in-class liquidity and trading execution at lower or zero cost. WOO Token is used in the network’s CeFi and DeFi products for staking and fee discounts. Presently, a diverse set of products and services interfacing retail, institutions, CeFi and DeFi have been built. WOO X is a zero-fee trading platform providing professional and institutional traders with best-in-class liquidity and execution. It features fully customisable modules for workspace customisation.

WOO Price Analysis

At the time of writing, WOO is ranked the 127th cryptocurrency globally and the current price is US$0.4826. Let’s take a look at the chart below for price analysis:

Source: TradingView

WOO has retraced 80% from its January highs and is currently challenging possible support near $0.4540, between the 61.8% and 78.6% retracement levels. 

If this level fails to provide support, the 78.6% retracement, near $0.4301, offers a strong draw for shorts with multiple daily swing lows and an inefficient area. 

Continued bearish conditions may cause this level to break, running all swing lows since Q2 2021 into the upper portion of an inefficient region starting near $0.3700. Near the midpoint and bottom of this region, lower timeframes show that $0.3520 and $0.3240 could also provide some sensitivity.

The low of early December’s consolidation, near $0.5817, and the 9 EMA may provide some resistance on any retracements. A continued rally – unlikely unless the overall market’s catalysts drastically shift – could reach over the 2021 open to $0.6427 and possibly $0.7100, where the daily chart shows a head-and-shoulders formation.

Learn How to Trade Live!

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Where to Buy or Trade Altcoins?

These coins have high liquidity on Binance Exchange, so that could help with trading on AUD/USDT/BTC pairs. And if you’re looking at buying and HODLing cryptos, then Swyftx Exchange is an easy-to-use popular choice in Australia.

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Crypto News Facebook Gaming Metaverse Virtual Reality

Meta Launches Digital Economy Allowing Users to Sell Virtual Goods for its VR Game

The metaverse may yet be years away in terms of functionality, but that hasn’t stopped Meta (nee Facebook) rolling out the first stages of a new digital economy to underpin its role in that brave new world.

The social media behemoth is already testing features that will enable creators to make money trading virtual items and effects in the company’s virtual reality (VR) game, Horizon Worlds.

According to Meaghan Fitzgerald, Horizon’s product marketing director, creators will be able to trade anything from virtual accessories to VIP access to their own private zone in the metaverse. American participants in the pilot will also be able to earn bonuses from a US$10 million fund set up by Meta to incentivise creators.

Meta May Pocket up to 50% of Bonus Payouts to Creators

Meta says it will reward creators whose virtual worlds prove especially popular among users with monthly bonus payouts. While that program will not be subject to fees, the virtual items marketplace could see Meta take a cut of up to 50 percent.

As it stands, Meta will take a 25 percent cut of the percentage left after the platform fee; with Meta’s Quest Store charging a 30 percent commission, that leaves creators with slightly over half the sale price for each item. Meta evidently thinks that’s a fair thing:

We think it’s a pretty competitive rate in the market. We believe in the other platforms being able to have their share.

Vivek Sharma, VP of Horizon Worlds, Meta

That said, Meta considers Apple’s 30 percent take rate as “too aggressive” for the iPhone ecosystem and has intentionally lowered its mobile rate for certain in-app purchases.

For more on how Horizon Worlds will work, Meta has helpfully supplied a video (see below) featuring VR versions of CEO Mark Zuckerberg and his Horizon team of creators. Try not to be disconcerted by the fact that each avatar only exists from the waist up, yet they require virtual stools to “sit” on:

Amid all this talk of virtual worlds, Zuckerberg announced earlier this month that Meta is exploring the creation of non-blockchain-based virtual currencies, which employees have internally dubbed “Zuck Bucks“. We can now perhaps see where he’s going with this idea.

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Coinbase Crypto News Ethereum Scams Tokens

Suspicions Raised as ETH Trader Buys $400,000 in Tokens Before Coinbase Listing

An Ethereum trader bought US$400,000 worth of tokens before being listed on Coinbase, raising suspicions of possible insider trading.

The ETH address, flagged by renowned crypto trader Cobie, was able to buy tokens due to be listed on Coinbase 24 hours before the Coinbase listing announcement. The wallet was created on April 11 and the tokens were transferred to different exchanges:

It seems the trader focused on six tokens – NDX, KROM, RADAR, RAC, DFX, and PAPER – which were under consideration for listing on the exchange, suggesting (s)he had prior knowledge before the list was made public.

After the list was published, the tokens increased dramatically in price, as usually happens with tokens listed on Coinbase. The address now has a balance of more than US$500,000, a return of over 40 percent in less than 24 hours.

Coinbase is yet to respond to any of the insider trading accusations.

Not the First Frontrunning Scandal on Coinbase

This is not the first time that Coinbase has been accused of frontrunning. In February, a trader created a fresh wallet and bought millions worth of $UPI and $AVT before Coinbase announced the listing:

Sometimes you have to take these events with a grain of humour, and that’s exactly what the crypto community has done:

Frontrunning is not uncommon in crypto companies. We’ve heard before of unethical employees buying digital assets shortly after being listed. Such was the case with Nate Chastain, a former employee at NFT marketplace OpenSea who got caught snapping some NFTs for himself in September last year:

In response to OpenSea’s centralised model and NFT frontrunning, renowned DeFi developer Andre Cronje created Artion, a decentralised and open-source marketplace built on Fantom Network.

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Australia Crypto News Cryptocurrencies Investing Surveys

Over 1 Million Australians Own Cryptos According to Recent Roy Morgan Survey

According to a study conducted by Australian research firm Roy Morgan, over one million Australians now own cryptocurrencies such as Bitcoin, Ethereum, Ripple, Cardo, Dogecoin and Shiba Inu.

The February survey investigated Australians’ investments and revealed that 5 percent, or just over one million Australians over the age of 18, now own at least one cryptocurrency. Over two-thirds, or 742,000 (69 percent), of Australian crypto investors are men, compared to only 332,000 (31 percent) who are women, indicating a massive gender difference when it comes to crypto investments.

Most Crypto Investors Are Younger Than 35

The study revealed that people under 35 were more likely to be holders of cryptocurrencies, with over one-in-10 people in this cohort. Participants over 35 were less likely to be invested in digital assets, but still made up 40 percent of the total investor market, including 296,000 aged 35-49 (28 percent of all investors) and 138,000 aged 50 and older (13 percent).

Cryptocurrency investors by age and gender. Source: Roy Morgan

Older Cohort Has Biggest Average Crypto Investments

Although they might be less likely to invest in cryptocurrencies, Australians aged 35 and older are a significant part of the crypto market in the country, given the average size of their investments.

The study revealed that participants aged 50 and older had the largest average crypto investments, averaging around A$56,000. The volume of investments in this cohort means the value of all crypto holdings of people aged 50 and up is around A$7.6 billion, higher than any other age group and accounting for 35 percent of the total market.

Although more inclined to invest in cryptocurrencies, Australians aged 18-24 only hold an average of A$2,600, making the total value of investments for this group just A$630 million, or about three percent of the total market valuation.

The market shares for Australians aged 25-34 and 35-49 were similar, with the former cohort averaging about A$18,200, while those in the latter group came in at A$21,600. Those aged 25-34 were more likely to invest in the market and thereby made up A$7 billion, or 32 percent, while those aged 35-49 owned A$6.4 billion, or 30 percent.

Gender Differences Are Significant

The analysis by gender revealed that men’s average investments totalled A$23,400, almost double those of women (A$12,800). This gender disparity shows that men hold 81 percent (A$17.4 billion) of the market, while women own just 19 percent (A$4.2 billion).

Total value of cryptocurrency investments by age and gender. Source: Roy Morgan

The results of this study are significant and indicate positive sentiment toward crypto adoption, given that Australia lagged in the most recent global ‘Crypto Awareness’ survey, although another 2021 survey revealed that most Australians still have no idea about cryptos or NFTs.

Categories
Banking Crime Crypto News Ethereum

ETH Developer Virgil Griffith Sentenced to 5 Years for North Korea Crypto Trip

A New York US Federal Court judge has sentenced former Ethereum developer Virgil Griffith to 63 months in prison and fined him $US100,000 for speaking at a 2019 crypto conference in North Korea and teaching North Koreans how to use crypto to evade US sanctions.

After initially protesting his innocence, Griffith eventually pleaded guilty to the charge of violating presidential executive orders designed to exclude the North Korean regime from the international banking system as punishment for repeatedly threatening to launch nuclear weapons against the US.

Following Early Support, Seriousness Becomes Clear

Many in the crypto community initially considered the charges against Griffith an overreaction. Ethereum founder Vitalik Buterin, for one, signed an online petition to free Griffith in 2019 and tweeted his support:

However, following a long investigation by the FBI it became clear that Griffith did more than illegally travel to North Korea and speak at a crypto conference – much of the evidence against him showed that he specifically sought to help the North Korean regime escape sanctions using crypto.

Images were uncovered showing Griffith wearing a North Korean military uniform standing next to a whiteboard where he’d drawn a happy face and written the words “No sanctions” and “yay”.  

The investigators also found Griffith had shared text messages with North Korean citizens assuring them he’d be able to help them get around US sanctions using crypto, in one message telling them that setting up an Ethereum node in North Korea will “make it possible to avoid sanctions on money transfers”.

North Korea Uses Crypto to Fund Illegal Activities

The actions of Griffith were treated so seriously by US authorities partly because the North Korean regime has been enthusiastic to use stolen crypto to skirt sanctions and fund its illegal weapons programs.

Through government-backed hacker groups such as the Lazarus Group, the North Korean regime steals huge amounts of crypto. According to Chainalysis, in 2021 alone it stole almost US$400 million worth of crypto, which is 2.4 percent of the nation’s total annual GDP.