https://www.coinspeaker.com/paxos-sec-busd-binance/

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Paxos in Constructive Discussions with SEC on BUSD Long-Term Prosperity, Cuts Ties with Binance

Paxos Trust Company, a New York-based financial institution and technology company specializing in blockchain, has informed its employees that it is in constructive discussions with the United States Securities and Exchange Commission (SEC) on the possible reopening of BUSD. Paxos has, however, indicated that it would defend its BUSD stablecoins position if need be.

Notably, Paxos halted the minting of new BUSD stablecoins yesterday after the directive ordered by the New York Department of Financial Services (NYDFS) to halt its services. The company has facilitated the redemptions of about $2.8B in BUSD since halting new mints on February 21.

“We look forward to continuing that dialogue in private. Of course, if necessary, we will defend our position in litigation,” CEO Charles Cascarilla said in an email to employees.

The CEO further noted that the company will continue supporting BUSD through 2024 in a bid to ensure seamless redemption. Moreover, the company still has a $12,431,454,168 market capitalization in BUSD with a 24-hour trading volume of about $10,140,064,037.

“We remain fully focused on serving the end holders of BUSD and protecting them from undo harm. Paxos will continue to support BUSD through at least February 2024 and maintain the highest standards of security and soundness in the stablecoin market,” Cascarilla said.

Meanwhile, Paxos indicated that the relationship with Binance on the BUSD is no longer viable to ensure long-term prosperity for stablecoins. Moreover, Binance CEO Changpeng Zhao (CZ) has distanced his cryptocurrency exchange from the Paxos business.

“The market has evolved, and the Binance relationship no longer aligns with our current strategic priorities,” he said.

Paxos and BUSD Market Outlook

Founded back in 2011, Paxos has amassed more than $500 million in total funding from leading investors like OakHC/FT, Declaration Partners, Mithril Capital, and PayPal Ventures. Other than BUSD, Paxos has other products in the market, including itBit crypto exchange, USDP stablecoin, and PAXG tokenized gold.

Notably, the Pax Dollar (USDP) has a market capitalization of approximately $704,921,893 and a 24-hour traded volume of about $3,190,161. The company’s PAX Gold (PAXG), on the other hand, has a market capitalization of approximately $457,754,314 and a 24-hour trading volume of about $9,233,420.

The company, as with other crypto-focused firms, is navigating through the regulatory framework to get approvals to provide services in as many global markets as possible. Furthermore, the fall of one of the largest cryptocurrency exchanges, FTX, has awakened regulators’ attention to the digital currency industry.

Paxos in Constructive Discussions with SEC on BUSD Long-Term Prosperity, Cuts Ties with Binance

https://www.coinspeaker.com/ankr-partnership-microsoft/

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Ankr Network Announces Strategic Partnership with Microsoft to Offer Enterprise Node Services

Ankr Network, a decentralized blockchain infrastructure provider that operates an array of globally distributed nodes, has announced a strategic partnership with Microsoft Corporation (NASDAQ: MSFT) to support institutional investors seeking access to blockchain data with a reliable, easy-to-use node hosting service. Following the announcement, Ankr Network’s native token ANKR spiked more than 45 percent to trade around $0.049 during the early Asian trading market.

Notably, ANKR’s 24-hour trading volume has increased to $1,124,641,863, thus resulting in a 44 percent rise to its market capitalization which stands at approximately $492,258,523 today. The announcement, however, did not positively impact MSFT shares that closed Tuesday trading at $252.67, down 2.09 percent from the day’s opening price.

“This was a critical step in bringing blockchain infrastructure to a growing sector of the digital economy. The partnership, while an incredible milestone for Ankr, is also a key indicator of how far the decentralized web has come in integrating with the crucial players in every layer of web systems. The result will be an era of extremely prolific building for blockchain-based applications from new Web3 projects as well as large enterprises entering the space,” said Chandler Song, Co-Founder & CEO of Ankr.

Microsoft’s General Manager of AI and Emerging Technologies noted that the partnership with Ankr will help many developers explore different use cases of Web3.

Bigger Picture of Ankr and Microsoft

The partnership has been warmly welcomed by the crypto community, which sees mainstream adoption of blockchain technology. Furthermore, Microsoft shut down its Azure Blockchain Service with no official explanation two years ago. As a result, the partnership with Ankr will help Microsoft cloud-based users access blockchain technology seamlessly.

Ankr 🤝 @Microsoft

We’ve partnered with Microsoft to support enterprises and organizations needing access to blockchain data with a reliable, easy-to-use node hosting service 🫡

Read more ⬇️https://t.co/XF8CG1grg5 pic.twitter.com/8tv5Mfz7FH

— Ankr (@ankr) February 21, 2023

Through Ankr’s blockchain solutions combined with Microsoft’s Azure technology, Web3 developers can access a superior infrastructure to deploy scalable smart contracts. Moreover, the partnership between Ankr and Microsoft will provide a fully managed node hosting solution, complete with the choice of custom specifications for blockchain nodes for memory, bandwidth, and global location according to customer needs.

Notably, the Ankr blockchain network will be able to scale transaction processes by routing RPC requests to the best-suited nodes exceptionally quickly and reliably.

The potential of Web3 protocols has attracted institutional investors, particularly internet companies from the dotcom era. However, the proper regulations are yet to be fully implemented to guarantee the global adoption of Web3 technology.

Ankr Network Announces Strategic Partnership with Microsoft to Offer Enterprise Node Services

https://www.coinspeaker.com/ftx-japan-withdrawals-fiat-crypto/

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FTX Japan to Resume Withdrawals of Fiat Currency and Crypto Assets Today

Three months after FTX and Alameda filed for chapter 11 bankruptcy protection, FTX Japan, via the Liquid Japan web platform, will resume withdrawals of fiat currency and crypto assets on February 21. The announcement comes as Bitcoin pushes the $25k resistance level, $4,000 higher than the pre-FTX trading mark. As a result, the FTX-held assets have gained in value, and the company has more liquidity to pay the customers.

Notably, customers who have assets in their FTX Japan account have been asked to confirm their assets’ balance and transfer them to their Liquid Japan account. Otherwise, FTX Japan customers who do not have a Liquid Japan account must open one before they can transfer assets.

The company announced that all eligible customers had been emailed detailing the withdrawal process. However, the company announced that the withdrawal process might take longer to complete due to a large number of requests. As a result, FTX Japan indicated that customers should be patient since all the eligible withdrawals will be honored.

“We are very sorry for the concern and inconvenience caused to our customers due to the suspension of our services,” FTX Japan noted.

As the parent company goes through a legal restructuring process, FTX Japan has noted that the resumption of other services, including trading and asset swaps, will be announced soon.

Bigger Picture of FTX Japan Withdrawals Resumption

On the top list, global cryptocurrency traders will have more confidence in the long-term success of digital assets and decentralized financial platforms. Notably, the crypto reputation was severely damaged after FTX and Alameda collapsed late last year. Moreover, over 1 million global customers were affected, and over 100 institutional investors, including international government agencies.

However, with over $8 billion missing from the FTX and Alameda’s balance sheet, some international customers may have to wait longer for the restructuring process to make them whole again. Furthermore, interim FTX CEO John Ray has indicated that the company may be forced to reopen trading services in order to raise more cash flow to repay customers’ and investors’ debts.

Meanwhile, former FTX CEO SBF will be counting reduced charges as the Japan entity resumes normal operations. Notably, FTX Japan had roughly 19.6 billion yen in cash worth more than $138 million when it ceased operations in November 2022. Due to the Japanese laws enforced by the country’s Financial Services Agency, FTX Japan had been ordered to segregate client funds from its assets. As a result, the FTX Japan customers were not severely impacted by the parent’s company dissolution.

FTX Japan to Resume Withdrawals of Fiat Currency and Crypto Assets Today

https://www.coinspeaker.com/polygon-starbucks-odyssey-nfts/

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Polygon-based Starbucks Odyssey NFTs Are Already Selling for Thousands of Dollars a Piece

Mid-September 2022, Starbucks Coffee Company announced that it was working with Polygon (MATIC), an Ethereum-based scaling solution, to develop an NFT loyalty program for United States customers. Dubbed Starbucks Odyssey, the company’s NFT tipping program has reportedly grown exponentially, with each piece selling for thousands of dollars.

After launching the beta version in December, Starbucks Odyssey has facilitated 360 sales on Nifty Gateway’s official secondary marketplace, with over $143,000 in total volume traded. With four airdrops and one artist, the Starbucks Odyssey’s ‘Doing Good Journey Stamp’ collection has a floor price of $60 and a traded volume of $1k. The ‘Bean to Cup Journey Stamp NFT collection has a floor price of about $85 and a total volume of approximately $12k.

The other NFT  airdrop by Starbucks Odyssey, dubbed ‘Coffee Heritage Journey Stamp, has a floor price of about $275 and a total traded volume of $14k.

However, it is the current floor price on the “Holiday Cheer Edition 1 Stamp” Starbucks Odyssey NFT of over $2,000 that has attracted tremendous attention. As of Friday, the NFT drop alone also makes up approximately 80 per cent of Starbucks Odyssey’s total NFT volume traded on the marketplace, with roughly $115k.

Starbucks Odyssey and Polygon NFT Market Outlook

The Polygon (MATIC) network has emerged as a hub for top Web3 projects, including DeFi protocols like Aave, Uniswap V3, OpenSea NFT marketplace, and Mark Cuban-founded Lazy.com. Starbucks Coffee Company intends to tap on the vast polygon adoption to grow its NFT community.

In a note during the Starbucks Odyssey launch, Sandeep Nailwal, Co-Founder of Polygon, indicated that the Ethereum-based scaling solution is a natural choice for Starbucks as both companies place tremendous importance on diversity, accessibility, and sustainability. As a leading infrastructure provider enabling people and technology to collaborate and exchange value globally and freely, Polygon provided the ideal launchpad for Starbucks’ entry into the Web3 industry.

“Building Starbucks Odyssey using technology that aligns with our sustainability aspirations and commitments is a top priority. We took a very thoughtful and thorough approach when evaluating which blockchain to utilize, and Polygon’s fast, low-cost, and carbon-neutral network is the perfect foundation for our first digital community,” Ryan Butz, VP of loyalty, strategy and marketing for Starbucks, noted.

The Polygon network is home to top NFT projects, including the Trump Digital Trading Cards issued by former United States president Donald Trump. Other top traded NFT projects on the Polygon network include Polygon Ape Yacht Club and Lens Protocol Profiles, with a 24-hour total volume of approximately 18 and 138.91 ETH, respectively.

Polygon-based Starbucks Odyssey NFTs Are Already Selling for Thousands of Dollars a Piece

https://www.coinspeaker.com/cftc-vista-network-ceo-cryptocurrency/

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CFTC Charges California-based Vista Network and Its CEO with Fraud and Misappropriation of User Cryptocurrency

The United States financial watchdogs have widened their scope of cryptocurrency scrutiny following the implosion of the FTX exchange and Terra Luna UST last year, which resulted in a loss of about $100 billion. With the Terra Luna victims perhaps never being compensated,  the United States regulators have hit the stablecoins market hard. Moreover, Congress has had a lot of discussions on algorithmic stablecoins.

This case demonstrates the lengths to which some crypto firms will go to avoid complying with the securities laws, but it also demonstrates the strength and commitment of the SEC’s dedicated public servants. https://t.co/wLTa2M5P8k

— Gary Gensler (@GaryGensler) February 16, 2023

Additionally, the New York Department of Financial Services (NYDFS) has instructed Paxos, a leading tokenisation infrastructure platform renowned for the Binance-backed BUSD issuance, to stop minting new stablecoins.

While the SEC argues that the stablecoins in the market are unregistered securities, whales have migrated en masse from Circle’s USDC and Tether USDT to the Bitcoin market.

Crypto analysts have forecasted more crackdowns will continue from the United States financial regulators.

Vista Network Charged with Cryptocurrency Fraud

According to the announcement, the Commodity Futures Trading Commission (CFTC) has accused Vista Network Technologies (Vista), a California-based company, and its CEO, Armen Temurian, of soliciting over $7 million of customers’ digital assets and misappropriation. According to the CFTC’s complaint filed in the US District Court for the Eastern District of New York, Temurian and his company solicited investors’ Bitcoin and Ethers and misappropriated them in a Ponzi-like scheme.

“This action demonstrates our ongoing commitment to using the tools at our disposal to hold bad actors accountable in the digital asset space,” said CFTC Acting Director of Enforcement Gretchen Lowe. “It is one more example of the CFTC’s efforts to protect retail customers from fraud related to digital asset commodities.”

Reportedly, Vista and the CEO advertised between 2017 and 2018 that the company would trade users’ digital assets and earn a 2.5 percent daily return or double in just 80 days. Additionally, Temurian promised the crypto investors that the digital assets would be traded using robot traders with reputations of high winning strikes.

Nonetheless, the CFTC noted that Temurian and the company had no trading robots or prior experience as financial advisors. Reportedly, Temurian used new investors’ digital assets to pay older customers.

Earlier this week, the United States SEC published proposed investment rules to curb fraudulent financial advisors.

We @SECGov just proposed to expand & enhance the role of qualified custodians when registered investment advisers custody assets on behalf of investors.

Thru our rule, investors would get the time-tested protections—and qualified custodians—they deserve.

What does this mean? ⬇️ pic.twitter.com/RerUGnpArI

— Gary Gensler (@GaryGensler) February 15, 2023

According to SEC Chair Gary Gensler, the published proposal means well to ordinary investors.

“I support this proposal because in using important authorities Congress granted us after the financial crisis, it would help ensure that advisers don’t inappropriately use, lose, or abuse investors’ assets,” Gensler said.

CFTC Charges California-based Vista Network and Its CEO with Fraud and Misappropriation of User Cryptocurrency

https://www.coinspeaker.com/lamborghini-veve-nft-marketplace-collectibles/

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Lamborghini Teams Up with VeVe NFT Marketplace to Release Limited Edition of Digital Collectibles

A luxury sports car manufacturer based in Italy, Automobili Lamborghini has reportedly teamed up with NFT marketplace VeVe to release a limited edition of digital collectibles for its cars. According to the announcement, the Lamborghini NFTs will be listed on the VeVe marketplace on February 19. The Lamborghini NFTs will feature the company’s Huracán STO model with various rarity traits.

VeVe and Lamborghini Cooperation

The Lamborghini NFT collectors can showcase their collectibles on the app’s virtual showrooms, share on their VeVe social feeds, and use augmented reality (AR) to view and “drive” their digital units.

VeVe co-founder Dan Crothers noted that he’s enthusiastic about giving Lamborghini fans a new way to experience their favorite sports car. Crothers added that he hopes the collection will help onboard more Lamborghini sports car fanatics to the Web3 industry that has shown tremendous potential to gain more in the future.

“Owning, or even simply driving, a Lamborghini is a dream of many,” Crothers noted. “The great thing about our community of passionate collectors is that they just love collecting, but we also hope this will inspire car enthusiasts to jump into the digital collectibles world, too.”

This is not the first venture into the NFT industry for the Italian luxury automobile. Late last year, Lamborghini announced a limited NFT edition of 1,963 units with a base price of $196.30. Notably, Lamborghini NFTs are purchasable through different cryptocurrencies or fiat deposited into the company’s account.

However, Lamborghini NFT collectors can now use the VeVe marketplace to seamlessly trade their digital collectibles.

Lamborghini NFTs

The non-fungible tokens (NFT) market has grown exponentially to a billion-dollar industry. Initially, NFTs were just viewed as jpegs circulating through blockchain technology. However, different real-world industries have found NFTs as a casual way of interacting with customers. Moreover, companies can represent real-world goods as NFTs with underlying value and liquidity.

Lamborghini and its limited edition of NFTs will be competing against rival company Porsche, which released a series of NFTs featuring its flagship 911 model last month. Earlier last year, car manufacturers McClaren and Alfa Romeo announced their entry into the NFT market with a series of limited editions.

The NFT market is, however, expected to receive more regulatory scrutiny, particularly following the collapse of FTX and Alameda late last year. Moreover, the SEC has classified crypto-staking programs as unregistered securities following the Kraken crackdown. Notably, several exchanges and digital collectibles platforms offer staking programs for the NFTs market.

Nonetheless, Lamborghini is keen to introduce NFTs to the rest of the world where regulations are not stiffening like in the United States.

Lamborghini Teams Up with VeVe NFT Marketplace to Release Limited Edition of Digital Collectibles

https://www.coinspeaker.com/?p=236577

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Tornado Cash Developer Alexey Pertsev to Remain in Dutch Custody after Bail Denial

A panel of Dutch judges from the East Brabant Court have ruled that Alexey Pertsev – a top Tornado Cash developer arrested in August last year after the United States sanctioned the crypto mixer – will remain under custody until his next hearing scheduled for April. According to a report by Coindesk, the Judges ruled that Pertsev possesses a high risk of fleeing or interfering with the investigations of being freed on bail. The Russian developers, however, denied the charges citing that Tornado Cash is an open-source code available to anyone with the internet.

Nonetheless, the United States Treasury Department’s Office of Foreign Assets Control (OFAC) argued that Tornado Cash has significantly aided North Korea-based hackers in laundering stolen digital assets. Additionally, the Dutch public prosecutor Martine Boerlage alleged that, rather than merely publishing source code, Pertsev and his colleagues ran Tornado Cash like a business and accepted kickbacks without questions.

According to Pertsev’s lawyer Keith Cheng, the Dutch court is not well informed of the decentralized nature of blockchain technology and the role his client played.

“We had the opportunity to explain the basis for Tornado Cash and why it is not money laundering. It is our opinion that the lack of knowledge is what’s keeping him here. Of course, I’m disappointed that Pertsev won’t be released on bail. He will fight until the end to show the importance of decentralized options, software, and open-source code,” Cheng noted.

According to Dutch law,  it is illegal to conceal or disguise the origin and movement of funds. The prosecutors argue that Tornado Cash placed almost 75 percent of all crime-related crypto on the Ethereum blockchain.

Closer Look at Tornado Cash Activities

The Tornado Cash protocol, which is available on several chains including Ethereum, has been making several updates despite the sanctions by the United States. Typically, a user generates a random key (note) and deposits Ether or an ERC20, along with submitting a hash of the note to the Tornado Cash smart contract. After depositing, users wait some amount of time before withdrawing to improve their privacy.

In order to facilitate withdrawals, a Tornado Cash user submits proof of having the valid key to one of the notes deposited and the contract transfers Ether or the ERC20 to a specified recipient.

The technology has been existing for a long time and Coinbase Global Inc (NASDAQ: COIN) CEO Brian Armstrong has argued the United States Treasury Department did wrong to sanction the technology instead of separating out the bad actors.

As of today, Tornado Cash takes pride in over 3,488,660 Ether deposited by 39,395 unique users.

Tornado Cash Developer Alexey Pertsev to Remain in Dutch Custody after Bail Denial

https://www.coinspeaker.com/galaxy-digital-global-approval/

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Galaxy Digital Eyes Global Regulatory Approval amid US Crypto Crackdowns

Galaxy Digital Holdings Ltd (Toronto: GLXY) has been pushing boundaries to help onboard worldwide institutional investors into the cryptocurrency market. The crypto-focused company with over $2 billion in assets under management (AUM) takes pride in over 880 unique institutional investors. Furthermore, Galaxy Digital Holdings under chief executive officer Mike Novogratz has several business lines including crypto trading, asset management, investment banking, and crypto mining, among others.

Galaxy Digital is regulated in several jurisdictions including 25 states in America, and Canada among others. The company has been pushing its business to get global regulatory approval to expand its operations exponentially. Moreover, the fall of Terra Luna UST and the FTX crypto exchange, which resulted in a loss of over $70 billion, has awakened global regulators’ attention to the digital asset economy.

Galaxy Digital in the Bahamas

In a bid to ensure future growth sustainability, Galaxy Digital ostensibly received regulatory approval from the Securities Commission of The Bahamas in December for registration as a digital asset business under its Digital Assets and Registered Exchanges Act of 2020. Reportedly, Galaxy Bahamas Ltd. will physically operate from the Bahamas and initially serve as an extension of the company’s trading platform. Additionally, Galaxy Bahamas will offer market-making and staking services to institutional investors seeking to get crypto exposure

Notably, cryptocurrency staking has already been subjected to regulatory scrutiny in the U.S. after the SEC charged the Kraken crypto exchange with selling unregistered securities through its staking program. With Binance USD (BUSD) already clumped by the United States government, crypto companies in the country are looking for ways to get registered in digital assets’ friendlier nations.

For instance, the United Arabs Emirates, and El Salvador have received a tremendous increase in foreign crypto investments due to their welcoming regulations.

“Wherever Galaxy operates, our governance controls and risk-management practices always apply,” said Mike Wursthorn, head of communications at Galaxy Digital. “Our operations in the Bahamas are no different. We perform due diligence on customers and counterparties in all jurisdictions and disclose audited financial statements, so customers and shareholders have full transparency into our business.”

However, the crypto operations in the Bahamas may be regarded as risky following the FTX and Alameda fallout. Furthermore, the case has left hundreds of institutional investors including government agencies with billions of dollars in losses.

“In light of the FTX dispute, customers, counterparties and regulators may view operations within the Bahamian crypto economy as riskier than operations in other jurisdictions,” the firm said in a February filing.

The crypto market is, however, more resilient than before with Bitcoin trading above pre-FTX levels. Nonetheless, the fear of a global recession and increased regulatory scrutiny may push crypto prices down before the end of 2023.

Galaxy Digital Eyes Global Regulatory Approval amid US Crypto Crackdowns