The ATO is scrutinizing an estimated 1.2 million crypto-related accounts for potential tax discrepancies.

With the exercise, the ATO aims to uncover unreported transactions involving crypto assets.

The Australian tax regime treats cryptocurrencies as assets, not as foreign currency.

The Australian Taxation Office (ATO) is scrutinizing an estimated 1.2 million crypto-related accounts for potential tax discrepancies. According to reports, this action comes amid increasing crypto awareness in the country, prompting the Australian authorities to examine personal data and transaction details from crypto exchanges.

With the exercise, the ATO aims to uncover unreported transactions involving crypto assets, either as currency exchange or those involving goods and services. Understandably, there is often a genuine lack of awareness about tax obligations when dealing with cryptocurrencies. That arises from the complexity of the crypto industry and how crypto transactions vary from other mainstream financial processes.

Considering the relative lack of awareness, the ATO aims to use the current exercise to regulate and educate crypto users on their fiscal duties. However, the regulator highlighted that some crypto users may deliberately try to avoid tax obligations by using false information to execute crypto transactions.

It is essential to note that the tax regime in Australia treats cryptocurrencies as assets, not as foreign currency. By this classification, crypto investors are obligated to pay capital gains tax on profits made from selling crypto assets. With the ongoing scrutiny, the ATO noted that it is reinforcing its efforts to ensure all taxable activities are transparent and properly reported.

A recent treasury report reveals that crypto assets are growing in popularity on the shores of Australia. The department reported that over 800,000 taxpayers transacted in crypto assets over the past three years, with a notable spike of 63% in 2021.

Data from Statista, the online platform for data gathering and visualization, revealed that crypto revenue in Australia is expected to grow by 10.15% annually.  It also showed that the revenue will reach a projected total of $1.6 billion by 2028.

The post Australian Taxation Office Embarks on Crypto Scrutiny, Targets 1.2 Million Accounts appeared first on Coin Edition.

Over 90% of stablecoin activity comes from bots and traders, not everyday payments.

Lack of user-friendliness is a major barrier to wider adoption of stablecoins.

Tracking real crypto activity with blockchain data is difficult, leading to inflated figures.

A new study by Visa and Allium Labs shares the idea of stablecoins becoming widely used for everyday transactions. The study reveals that a staggering majority (over 90%) of stablecoin activity stems from bots and large-scale traders, not real people.

To measure genuine use, Visa developed a metric that excludes bot activity. This metric showed that only a tiny fraction, roughly $149 billion out of $2.2 trillion in total transactions in April, originated from real users. This finding contradicts the optimistic view of stablecoin proponents who believe these tokens will revolutionize payments.

Proponents highlight the benefits of stablecoins, such as instant settlement and minimal fees. However, experts suggest user-friendliness is a major hurdle. Additionally, tracking real crypto activity using blockchain data is inherently difficult, leading to inflated figures.

Financial technology giants like PayPal and Stripe are still exploring stablecoins. However, this study suggests these tokens have a long way to go before becoming a major force in the payments industry. Despite potential advantages, user adoption and data transparency remain significant challenges.

Further complicating the picture, some experts worry that the dominance of bot activity could create artificial price inflation for stablecoins. This in turn could also discourage legitimate users from entering the market and would create a monopoly in the market making less users for the limited real-world adoption.

Ethereum which is the world’s leading smart contract blockchain network, witnessed a massive surge in stablecoin volume last month in April. According to data the surge reached unexpected levels. This surge also includes flash loan activity, which also soared the figures.

The post Are Stablecoins the Future of Payments? New Study Raises Doubts appeared first on Coin Edition.

Nigeria plans to ban Naira peer-to-peer transactions.

The SEC Director General signals forthcoming regulations for crypto exchanges.

Naira’s recorded a 65% value loss against the US Dollar.

According to Bloomberg reports, Nigeria has declared its intent to outlaw Naira peer-to-peer transactions due to perceived negative impacts on the local currency. 

Emomotimi Agama, the Director General of the Securities and Exchange Commission (SEC), disclosed this decision during a meeting with fintech professionals on Monday. Agama announced that new regulations targeting crypto exchanges, digital asset custodians, and other related sectors will be rolled out “in the coming days.”

In a meeting with the Abuja-based SEC on Monday evening, Agama was quoted as saying, “The thing that needs to be done is delisting the naira from the P2P space in order to avoid the level of manipulation that is currently happening.” He added, “Recent concerns regarding crypto P2P traders and their perceived impact on the exchange rate of the naira has underscored the need for collective action.” 

Nigeria’s latest stance on cryptocurrency follows its recent ban on Binance, the world’s largest crypto exchange, and the subsequent arrest of two of its executives in February. 

While one executive managed to evade capture, Tigran Gambaryan, the other executive, has been detained at the Kuje correctional center in Abuja. Gambaryan is set to face trial on charges related to tax evasion, currency speculation, and money laundering this month.

Agama reiterated the government’s position, stressing that “Manipulations and all forms of activities that undermine our national interest would not be acceptable.” 

Since the relaxation of currency regulations in June, Nigerians have turned en mass to cryptocurrency as a safeguard following the Naira’s 65% value loss against the US Dollar. 

In February, the Governor of the Central Bank of Nigeria, Olayemi Cardoso, alleged that Binance facilitated unauthorized naira transactions on its platform. As a result, Nigerian authorities took measures to restrict such activities.Speaking on behalf of the commission, Agama stated that “SEC will not hesitate to utilize all the powers within its mandate to handle issues that are negative and pose a threat to national interest.

The post Nigeria Set to Ban Peer-to-Peer Crypto Trading Amid Naira Depreciation appeared first on Coin Edition.

LayerZero Labs bans employees from participating in the project’s token airdrop.

Community watchdog scrutinizes over 500 transactions for insider airdrop claims.

LayerZero addresses Sybil’s attacks with a self-reporting initiative ending next week.

LayerZero Labs CEO Bryan Pellegrino has confirmed that all company employees will be strictly prohibited from participating in the upcoming airdrop of the project’s tokens. Per the disclosure, this policy has been internally communicated and will be enforced with severe consequences, including potential termination.

Pellegrino announced the airdrop policy in a recent post on X while responding to community concerns. In particular, he responded to observations made by user Liubomyr, who has been monitoring the wallets associated with the LayerZero team and moderators. With over 500 transactions under scrutiny, Liubomyr intends to uncover whether these insiders are receiving the airdrop.

Will announce something publicly about this, every LayerZero labs employee is 100% restricted from claiming and has no eligibility — it will be a fireable offense and has been announced internally for some time and has always been the case

— Bryan Pellegrino (臭企鹅) (@PrimordialAA) May 7, 2024

Notably, LayerZero is an interoperability protocol designed to empower developers by enabling the creation of cross-chain applications complete with adaptable security parameters. LayerZero Labs is the primary driving force behind the development of this protocol.

The latest development from LayerZero follows the project’s earlier initiative to address Sybil attacks. Early this month, LayerZero offered users gaming the system a chance to self-report in exchange for a 15% reduced allocation of the airdrop. 

Notably, the offer window ends on the 17th of this month. Those who did not come forward risked being excluded from the airdrop entirely.  The initial snapshot for the airdrop was taken on May 1, setting the stage for the upcoming distribution.

Meanwhile, LayerZero Labs has remained tight-lipped about the details of the anticipated airdrop. Regardless, previous hints point towards a potential token release in early 2024. 

Ultimately, LayerZero Labs’ approach reflects a growing trend in the crypto industry to prioritize equitable distribution and transparency in token allocations. Last year, Coin Edition reported that as much as 60% of the TIA airdrop tokens distributed by the Celestia team were claimed by Sybil addresses and airdrop hunters.

The post LayerZero Labs Cracks Down on Insider Airdrop Participation appeared first on Coin Edition.

Bitcoin spot ETFs saw significant net inflows totaling $217 million on May 6, 2024.

Despite facing outflows and fee challenges, GBTC remains the largest spot bitcoin ETF with $18.08 billion in assets.

Bitcoin’s price volatility post-halving prompts analysts to speculate on market recovery and potential uptrends.

Wu Blockchain reports significant net inflows into Bitcoin spot ETFs on May 6, totaling $217 million. Grayscale’s ETF, GBTC, saw a notable single-day net inflow of $3.937 million, while Fidelity’s FBTC experienced a substantial net inflow of $99.1936 million. Ark Invest and 21Shares ETF ARKB also had a significant single-day net inflow of $75.6412 million.

According to SoSoValue, total net inflows into Bitcoin spot ETFs on May 6 were $217 million. Grayscale ETF GBTC saw a single-day net inflow of $3.937 million. Fidelity ETF FBTC had a single-day net inflow of $99.1936 million, Ark Invest and 21Shares ETF ARKB had a single-day net… pic.twitter.com/1OrHFH4Vpz

— Wu Blockchain (@WuBlockchain) May 7, 2024

This news comes as shares of Grayscale Bitcoin Trust (GBTC.P) surged by 2.4% recently, following the ETF’s first day of inflows since January, according to Reuters data. Despite this positive development, GBTC has faced challenges, with $17.46 billion in withdrawals since converting from a trust to an ETF earlier this year, largely due to its higher fees compared to competitors. Some outflows were linked to bankruptcies in the crypto industry as companies sought to repay creditors.

Despite these challenges, GBTC managed to attract inflows of $63 million, managing a total of $18.08 billion in assets. However, its position as the largest spot bitcoin ETF by assets under management (AUM) is now under threat from BlackRock’s iShares Bitcoin Trust, which currently manages $16.91 billion.

Meanwhile, Bitcoin’s price today is $63,660.57, with a 24-hour trading volume of $30,499,448,154. It’s gone down by 0.85% in the past day, and its market cap stands at $1,253,798,152,191. There are 19,695,050 BTC coins in circulation at the moment out of a maximum supply of 21,000,000 BTC coins.

Bitcoin, after halving, has viewed downturns within the range below reaccumulation in three weeks amid the occasion. Still, with Bitcoin having already surpassed the reaccumulation range of about $60,000 during the latest cycle, some analysts like Rekt Capital argue that the danger zone might be over. At the start of bull markets in 2016, treading on the lowest 11% of Bitcoin by a 21-day wick around the halving, the price reversal started.

The post Bitcoin Spot ETFs Thrive with $217M Inflows in Single Day appeared first on Coin Edition.

Bill Morgan, thinks there is a lot of bad blood between the crypto industry and the SEC.

Morgan thinks the bad blood could degenerate into a permanent feud.

Jake Chervinsky, Variant’s CLO, has accused the SEC of abusing the Wells process.

Renowned crypto lawyer Bill Morgan thinks there is a lot of bad blood between the crypto industry and the U.S. Securities and Exchange Commission (SEC) that could degenerate into a permanent feud. Morgan made the statement in a post on X, responding to reactions toward the recently issued Wells Notice by the SEC to Robinhood.

Interestingly, some commentators more sympathetic to the SEC say that crypto companies receiving Wells Notices are not acting in a manner that is normally the case with a Wells Notice recipient and are taking the occasion of receipt of a Wells Notice to publicly attack the SEC.… https://t.co/cf1dLwK8Vu

— bill morgan (@Belisarius2020) May 7, 2024

According to Morgan, some commentators sympathetic to the SEC are accusing companies receiving Wells Notices from the SEC of not acting appropriately. He noted that the SEC sympathizers believe the affected companies usually result in making public attacks on the SEC.

Notably, Morgan reacted to a post by Jake Chervinsky, the Chief Legal Officer at Variant, who criticized the SEC, accusing them of abusing the Wells process. According to Chervinsky, the SEC has sent an astonishing number of Wells Notices in recent months. He thinks it will be hard for the commission to bring so many enforcement actions over a short period.

Chervinsky also thinks the SEC allocates a grossly disproportionate amount of its resources to crypto, given that its purpose is to regulate equity and debt markets. In his opinion, every minute and taxpayer dollar the SEC spends on crypto is not on the genuine mission that Congress created the SEC to pursue.

On Monday, Robinhood announced it received a Wells Notice from the SEC over crypto-traded tokens on its platform. Addressing the enforcement notice, Dan Gallagher, chief legal, compliance, and corporate affairs officer at Robinhood, explained that the assets listed on its platform are not securities. Furthermore, Gallagher noted that the firm looks forward to engaging with the SEC to make clear that there is no case of wrongdoing against it. 

The post Crypto Industry Reacts Over The SEC’s Wells Notice to Robinhood appeared first on Coin Edition.

EIP-3074 aims to enhance Ethereum wallets by enabling smart contract control.

The proposal has received support for improving wallet UX.

Despite this, leaders caution against potential vulnerabilities.

With blockchain adoption on the rise, Ethereum developers are reviewing several Ethereum Improvement Proposals (EIPs) for the upcoming major update, Pectra. One such consideration is the EIP-3074 due to its potential to enhance the usability of crypto wallets.

Unlike those managed by smart contract code, the proposal focuses on externally owned accounts (EOAs), which users control through private keys. EIP-3074 seeks to enhance the programmability of these accounts by enabling smart contract authorization for transactions.

Furthermore, this improvement could improve user experience by enabling batching transactions and allowing third parties to cover transaction fees.

“EIP-3074 is coming in the next Ethereum hard fork. This is a big deal. Wallet UX will 10x. Congratulations to Ethereum and the EIP-3074 sponsors. Reth has already implemented and tested it. We are fans. Let’s go,” Paradigm Chief Technology Officer Georgios Konstatonopolous commented on X. 

Even though Ethereum’s proposed update, EIP-3074, has garnered significant support for its potential to enhance wallet usability, it has also been met with skepticism within some sections of the Ethereum community. 

Certain community participants are expressing doubts regarding the security implications of permitting smart contracts to manage transactions for EOAs. In addition, industry leaders have cautioned that the proposal would allow batch transactions.

Lukas Schor, the co-founder of Safe, has expressed reservations about the proposal, arguing that the project lacks “any clear pathway to full AA and has a net-negative impact on AA adoption.”

Itamar Lesuisse, co-founder of Argent Wallet, highlighted EIP-3074’s potential security risks on social media. Lesuisse noted that it could permit “a scammer to drain your entire wallet with a single off-chain signature.” He added, “I expect this will be a major use case.”

Mudit Gupta, Chief Information Security Officer at Polygon Labs, also voiced security concerns, suggesting that wallets individually block the use of EIP-3074’s features, particularly concerning the MAGIC signatures. “For security reasons, I do not want to expose my cold wallets to AA batching,” Gupta stressed.

The post Ethereum Developers Aim to Simplify Crypto Wallet Usage with ‘EIP-3074’ appeared first on Coin Edition.

KuCoin partners with Bugcrowd to launch a bug bounty program to enhance security across its trading platform.

The program targets critical vulnerabilities in web and mobile modules, with rewards of up to $10,000 for extreme issues.

High-severity findings receive rewards up to $2,000, while medium-severity discoveries are rewarded up to $400.

The prominent global crypto exchange KuCoin has partnered with Bugcrowd, the leading crowdsourced cybersecurity platform, to enhance platform security. KuCoin announced this new security-focused collaboration in a recent press statement seen by Coin Edition.

The collaboration marks the launch of an extensive bug bounty program designed to identify and rectify potential vulnerabilities across KuCoin’s platform. The program focuses on pinpointing critical vulnerabilities in web and mobile modules.

Regarding the web modules, issues such as business logic flaws, payment manipulation risks, remote code execution, and sensitive information leakage are among the targeted vulnerabilities. Additionally, the program addresses a spectrum of OWASP issues, such as Cross-Site Scripting (XSS), SQL Injection, and others.

However, on the mobile front, the focus shifts to vulnerability functions capable of accessing unsafe external links. It includes potential exploitations of the “Jsbridge/Javascript interface” that could harm users and other mobile-related susceptibilities that could result in potential losses.

KuCoin and Bugcrowd have established a tiered reward system based on the severity of identified vulnerabilities to incentivize security researchers and reward their efforts. The rewards range from $10,000 for extreme severity to $50 for low severity issues.

Specifically, detected extreme severity issues are rewarded with $10,000, and critical severity vulnerabilities range from $3,000 to $5,000. Moreover, high-severity findings receive rewards ranging from $1,000 to $2,000, while medium-severity discoveries are rewarded between $200 and $400. Low-severity issues merit rewards varying from $50 to $100.

Johnny Lyu, CEO of KuCoin, emphasized the exchange’s commitment to prioritizing the security of user assets and transactions. Lyu remarked:

As People’s Exchange, the security of users’ assets is always our top priority. Ensuring the safety of user assets and transactions is an ongoing endeavor to which we are committed.

Bugcrowd CEO Dave Gerry echoed Lyu’s sentiments, highlighting the importance of trust and security in the cryptocurrency market. “We’re excited to partner with KuCoin to launch their Bug Bounty Program to achieve a safer trading environment for all users,” Gerry remarked.

The post KuCoin Strengthens Security with Bugcrowd Partnership to Launch Bug Bounty Program appeared first on Coin Edition.

Robinhood receives a Wells notice from the SEC for likely enforcement action.

Its CEO, Vlad Tenev, vows to take legal action against the SEC if necessary.

Coinbase CEO disagrees that legal battles can secure the future of crypto; advocates for pro-crypto political candidates.

The future of crypto in the United States is shrouded in uncertainty due to the ongoing regulatory difficulties American crypto companies face. As a result, leading crypto businesses are moving to challenge U.S. regulators through legal means.

However, doubts persist regarding the efficacy of the judicial system in providing timely and lasting solutions. Brian Armstrong, the CEO of Coinbase, and Vlad Tenev, the CEO of Robinhood, recently expressed their views on this subject.

In a recent post in X, Tenev noted that the crypto industry has faced relentless regulatory pressure detrimental to American companies and consumers for the past three years. 

He highlighted the U.S. SEC’s persistent scrutiny of crypto and recent proposals, such as those concerning predictive data analytics, as yet another instance of government overreach hindering innovation.

Over the last three years, we’ve reached a state of regulatory onslaught that is harmful to American companies and consumers. The SEC’s continued attack on crypto, coupled with recent rule proposals like the one related to predictive data analytics, mark yet another improper…

— Vlad Tenev (@vladtenev) May 6, 2024

Notably, this commentary surfaces amid Robinhood receiving a Wells notice from the SEC on Monday regarding the crypto assets traded on its platform. The Wells notice is a formal notification that the SEC often sends when it intends to initiate enforcement proceedings. 

Meanwhile, the CEO committed to fostering positive relationships with the U.S. regulator. However, he asserted that Robinhood is prepared to allocate resources to challenge the regulatory actions in court if necessary. The firm seeks to safeguard its crypto business and establish regulatory clarity in the United States for the benefit of its customers.

However, in response, Brian Armstrong, the CEO of Coinbase, shared an opposing view. He first welcomed Tenev to the fold of industry pundits, taking a stance against the onslaught of American crypto firms.

In parallel, Armstrong acknowledged the potential role of the courts in clarifying regulatory ambiguity. However, the Coinbase CEO emphasized that electing pro-crypto candidates in the upcoming elections is essential for achieving a lasting solution. He does not see court actions as sufficient to safeguard the industry.

Welcome to the club – you're in good company 🙂 The courts will help get clarity – but the right solution longer term is we need to elect pro-crypto candidates. This is why Coinbase has supported Fairshake superpac, and https://t.co/1YyvPQemqk. Hope y'all can join us! https://t.co/TONaXX2vlv

— Brian Armstrong (@brian_armstrong) May 7, 2024

Accordingly, Coinbase is taking a proactive stance in the political arena by being one of the major contributors to a super PAC that champions pro-crypto politicians. Specifically, Coinbase has donated $24.5 million to Fairshake, a super PAC dedicated to this cause.

The post Can Legal Battles Secure the Future of Crypto in the US? appeared first on Coin Edition.

EIP-3074 aims to enhance Ethereum wallets by enabling smart contract control.

The proposal has received support for improving wallet UX.

Despite this, leaders caution against potential vulnerabilities.

With blockchain adoption on the rise, Ethereum developers are reviewing several Ethereum Improvement Proposals (EIPs) for the upcoming major update, Pectra. One such consideration is the EIP-3074 due to its potential to enhance the usability of crypto wallets.

Unlike those managed by smart contract code, the proposal focuses on externally owned accounts (EOAs), which users control through private keys. EIP-3074 seeks to enhance the programmability of these accounts by enabling smart contract authorization for transactions.

Furthermore, this improvement could improve user experience by enabling batching transactions and allowing third parties to cover transaction fees.

“EIP-3074 is coming in the next Ethereum hard fork. This is a big deal. Wallet UX will 10x. Congratulations to Ethereum and the EIP-3074 sponsors. Reth has already implemented and tested it. We are fans. Let’s go,” Paradigm Chief Technology Officer Georgios Konstatonopolous commented on X. 

Even though Ethereum’s proposed update, EIP-3074, has garnered significant support for its potential to enhance wallet usability, it has also been met with skepticism within some sections of the Ethereum community. 

Certain community participants are expressing doubts regarding the security implications of permitting smart contracts to manage transactions for EOAs. In addition, industry leaders have cautioned that the proposal would allow batch transactions.

Lukas Schor, the co-founder of Safe, has expressed reservations about the proposal, arguing that the project lacks “any clear pathway to full AA and has a net-negative impact on AA adoption.”

Itamar Lesuisse, co-founder of Argent Wallet, highlighted EIP-3074’s potential security risks on social media. Lesuisse noted that it could permit “a scammer to drain your entire wallet with a single off-chain signature.” He added, “I expect this will be a major use case.”Mudit Gupta, Chief Information Security Officer at Polygon Labs, also voiced security concerns, suggesting that wallets individually block the use of EIP-3074’s features, particularly concerning the MAGIC signatures. “For security reasons, I do not want to expose my cold wallets to AA batching,” Gupta stressed.

The post Ethereum Developers Aim to Simplify Crypto Wallet Usage with ‘EIP-3074’ appeared first on Coin Edition.

The Poloniex hacker moved 1,100 ETH to Tornado Cash, as per PeckShield.

WuBlockchain confirmed that this is the first time the funds have been moved.

Poloniex was hacked in November of last year for $100 million.

A hacker involved in last year’s massive hack of Poloniex crypto exchange has reportedly transferred 1,100 Ethereum (ETH), valued at approximately $3.4 million, to the U.S.-sanctioned cryptocurrency mixer Tornado Cash in an attempt to launder the stolen funds. 

The movement of funds came to light following the on-chain data analysis conducted by security firm PeckShield. Notably, WuBlockchain also broke the news, confirming that this is the first time the hacker has transferred the funds to Tornado Cash to launder the money.

Poloniex, a major cryptocurrency exchange, fell victim to a substantial hack in November last year, resulting in the loss of $100 million from one of its hot wallets. Mixing services like Tornado Cash are often utilized by cybercriminals to obscure the trail of stolen cryptocurrency, making it harder for law enforcement agencies to track illicit transactions.

This attack on Poloniex is widely attributed to the North Korean Lazarus Group, a notorious state-sponsored hacking organization known for its involvement in various high-profile cyberattacks. 

In an unusual move, Poloniex offered the hacker a 5% bounty, amounting to around $5 million, to return the remaining 95% of the stolen funds. However, this attempt to negotiate with the hacker appears to have been unsuccessful, as evidenced by the recent transfer of ETH to Tornado Cash.

Poloniex has been a centralized exchange since its inception in 2014 and was later acquired by Tron founder Justin Sun in 2019. Notably, the hack dealt a significant blow to the exchange’s reputation and security measures.

The post Poloniex Hacker Transfers Money to Tornado Cash for the First Time appeared first on Coin Edition.

The SEC has filed its remedies reply brief and supporting evidence under seal.

According to James Fillan, the documents filed by the SEC are yet to be made public.

The SEC will file the redacted version of its remedies brief by Wednesday, May 8, 2024.

According to James Filan, a renowned defense lawyer, the U.S. Securities and Exchange Commission (SEC) has filed, under seal, its remedies reply brief and supporting evidence in the ongoing case against Ripple. However, Filan noted that the documents filed by the SEC are yet to be made public.

#XRPCommunity #SECGov v. #Ripple #XRP The @SECGov has filed, under seal, its remedies reply brief & supporting exhibits. These documents are not yet public. Public, redacted versions will be filed by Wednesday, May 8, 2024. Other sealing-related filings will follow. See below. pic.twitter.com/ENnkh6oW9H

— James K. Filan 🇺🇸🇮🇪 (@FilanLaw) May 6, 2024

Meanwhile, the defense lawyer noted that the SEC will file the redacted version of its remedies brief by Wednesday, May 8, 2024. He also highlighted that other sealing-related filings would follow Wednesday’s filing.

Filan shared an already-prepared schedule of the filings, beginning from the SEC’s reply brief under seal, which the commission filed on May 6. According to the schedule, the SEC and Ripple will meet and confer to identify redactions sought by each side and third parties, if any, to the reply briefs and exhibits on May 7.

On May 8, the SEC will file a public, redacted version of the reply brief and any supporting exhibits not designated by either party or third parties as confidential or highly confidential under the protective order. 

After May 8, the next schedule will happen on May 13, when SEC, Ripple, and any third parties will file omnibus letter motions to seal all materials related to the remedies-related briefs, declarations, and supporting exhibits. All parties would also file proposed redactions to the provided materials on the same day. On May 20, the final day of the schedule, the parties will file letter briefs in opposition to omnibus letter motions to seal. 

It is essential to note that under the joint proposal, the parties would be required to file public, redacted versions of all documents within 14 days of the Court’s rulings on the omnibus sealing motions.

The post The SEC Files Remedies Reply Brief, Other Filings To Follow appeared first on Coin Edition.

XRP trading volume surges 240.21%, signaling heightened market volatility.

Legal developments with SEC add uncertainty as XRP approaches resistance.

Technical indicators hint at a bearish trend as XRP price targets key support levels.

In a remarkable 24-hour stretch, XRP’s trading volume soared by an astonishing 240.21%, ascending to $1.84 billion. This intense trading activity unfolded within an environment of heightened market volatility that saw XRP’s price oscillate modestly upward, gaining 0.87% during the same interval.

XRP/USD 24-Hour Chart (Source: CoinStats)

The turbulence is closely tied to the legal saga involving Ripple, the entity behind XRP, and the U.S. Securities and Exchange Commission (SEC). Today marks a critical deadline for the SEC to respond to Ripple’s proposed solutions concerning remedies in their ongoing legal dispute. 

While the market digests these developments, the price per XRP token hovers at $0.5383 as of this report. Despite the price fluctuations, XRP’s market capitalization remains firm, rising 0.78% intraday to settle at $29.7 billion.

This yields a trading volume-to-market capitalization ratio of 6.19%, indicating robust trading activity compared to the size of XRP’s market cap. This ratio is a critical indicator of market sentiment, suggesting that while the trading activity is pronounced, it aligns with patterns observed in past periods of market uncertainty.

XRP Faces Key Technical Challenges

The XRP token has shown bullish momentum since the beginning of the month, rising by 19.12%, as indicated on the 4-hour chart. However, after reaching resistance near the $0.57 region, a price correction began, aiming to retest the 50% Fibonacci level to establish support. 

XRP/USD 4-Hour Chart (Source: Tradingview)

If this level proves resilient, the price of XRP could stage another bullish rally, potentially surpassing the $0.57 resistance area. Breaching this level could open the door for XRP to target the $0.60 resistance level.

Conversely, if the 50% Fibonacci level is breached, the XRP price might slide further to find support at the 38.2% Fibonacci level, which serves as a low-level safety net. A breach at this point could push XRP prices down to the March low, marking a significant pullback.

On the technical side, the MACD indicator is trending downward, positioned at 0.0054, signifying a weakening bullish momentum. This could indicate a market shift where bears start to take control in the short term.

XRP/USD 4-Hour Chart (Source: Tradingview)

Additionally, the MACD line has subtly dipped beneath the signal line, heralding a likely downturn. The shrinking MACD histogram bars, which mirror prevailing market sentiment, edge closer to the zero thresholds, hinting at waning purchasing momentum and an imminent pivot towards selling pressure.

In alignment with these observations, the Relative Strength Index (RSI) has departed from the overbought zone, descending in a corrective manner and signaling a prospective phase of price correction. Currently positioned at 53.32 and below the signal line, the RSI suggests a potential bearish trend as it approaches the neutral zone and continues to decline.

The post XRP Trading Volume Soars by 240% in a Day as Key Support Levels Loom appeared first on Coin Edition.

The SEC has delayed its decision on the proposed Invesco Galaxy Ethereum ETF.

The regulator will now take its decision on July 5, 2024.

Similar actions have been taken on applications from BlackRock, Fidelity, etc.

The U.S. Securities and Exchange Commission (SEC) has announced a delay in making a decision on the proposed Invesco Galaxy Ethereum exchange-traded fund (ETF), pushing the next deadline to July 5, 2024.

In a filing posted on Monday, the SEC stated that it requires more time to consider the proposed rule change and the associated issues. The agency emphasized the need for a longer period to thoroughly evaluate the ETF proposal.

“The Commission finds that it is appropriate to designate a longer period within which to issue an order approving or disapproving the proposed rule change so that it has sufficient time to consider the proposed rule change and the issues raised therein,” the SEC said.

This latest delay comes amid similar actions taken on applications from all eight prospective Ether ETF issuers, including major names like BlackRock, Fidelity, Franklin Templeton, Hashdex, and Ark 21Shares. Analysts had largely anticipated such delays.

The final deadline for VanEck’s Ether ETF application is May 23, a date that Bloomberg ETF analyst James Seyffart has described as the “only deadline that matters” in a post on X from March 20.

However, optimism for the approval of such products has waned in recent months. Bloomberg ETF analyst Eric Balchunas has notably reduced his estimate of the likelihood of a spot Ethereum ETF approval by late May from about 70% to 25%.Ethereum, the second-largest cryptocurrency by market capitalization, is trading at $3,059 as of 5:45  a.m. UTC, with a 3.04% drop in the last 24 hours, according to the data from CoinMarketCap.

The post SEC Pushes Verdict on Invesco Galaxy Spot ETH ETF to July appeared first on Coin Edition.

Topcaller.sol gains from meme coins with a 0.13% win rate.

SOL sees price surge despite month-long bearish trend.

Technical indicators indicate strong bullish momentum for SOL.

In a demonstration of risk and reward, an investor known as topcaller.sol has made major gains by trading meme cryptocurrencies, colloquially known as “meme coins.” Since April 9, topcaller.sol has invested in 5,417 meme coins, each purchase averaging 0.215 Solana (SOL).

Is it profitable to trade #MEMEcoins like buying lottery tickets?topcaller.sol has bought 5,417 #MEMEcoins since April 9, investing an average of 0.215 $SOL each.7 of the #MEMEcoins had an ROI of over 1000%, with a total profit of 290 $SOL .The win rate for his #MEMEcoin… pic.twitter.com/gBuCZnTvYv

— Lookonchain (@lookonchain) May 6, 2024

This approach yielded substantial returns, with seven of these investments achieving a return on investment (ROI) exceeding 1000%, culminating in a total profit of 290 SOL. According to Lookonchain, the success of topcaller.sol’s trading strategy draws comparisons to purchasing lottery tickets, given the low win rate but high potential returns. The data further reveals that only 0.13% of the MEMEcoin purchases resulted in the aforementioned high profits.

SOL Price Action

Despite experiencing a bearish trend over the past month, Solana (SOL) has witnessed a significant uptick today, May 6, injecting a wave of optimism into its market performance. This surge reflects broader bullish sentiment across the global cryptocurrency landscape, with SOL’s price increasing markedly within the last 24 hours.

SOL/USD 24-Hour Chart (Source: CoinStats )

As of press time, the SOL token is trading at $152.61, marking a 4.55% rise from the previous day. Alongside this price increase, Solana’s market cap has climbed by 5.46% to reach $69.03 billion. 

However, the trading volume tells a different story, showing a 32.21% decrease to $1.98 billion. This reduced trading activity suggests cautious approaches by investors as SOL approaches the critical resistance level of $159.

On the 4-hour chart, the SOL token is exhibiting strong upward momentum as it approaches the $159 resistance level. Should this bullish trend persist in the short term, SOL prices could not only breach this initial resistance but also potentially ascend toward the next significant resistance mark at $176.12.

SOL/USD 4-Hour Chart (Source: Tradingview )

Conversely, if the SOL token encounters a downturn and breaches the 50% Fibonacci retracement level, prices might retest the support at $144.84 before attempting to recover back toward the resistance. A failure to hold this support level could lead to further declines, potentially driving the price down towards the $135 support zone, with a risk of falling even lower.

Technically, the Moving Average Convergence Divergence (MACD) indicator reinforces this bullish outlook. Positioned at 3.20, with the MACD line above the signal line and pointing upwards, it suggests that bullish momentum is gaining strength. This is further supported by widening green bars on the MACD’s histogram, indicating a strengthening of this upward trend.

SOL/USD 4-Hour Chart (Source: Tradingview )

Simultaneously, the Chaikin Money Flow (CMF) indicator is at 0.12, signifying a strong inflow of money into the market. This indicates increased buying pressure, which could further support the price’s upward trajectory.

The post Crypto Analyst Nets 290 SOL as Solana Prices Climb appeared first on Coin Edition.

Arthur Hayes records a $4 million profit from his Pendle investment.

Hayes’ Pendle holdings are now valued at $8 million, doubling his initial outlay.

Hayes plans to buy Solana and meme coins while increasing Pendle stakes.

Arthur Hayes, the founder of the BitMEX exchange, has recorded over $4 million in profit from his continued investment in Pendle (PENDLE), a project at the forefront of tokenization and trading of future yield. 

Well-known Chinese reporter Colin Wu called attention to this development in a recent post on X. Data from Etherscan showed that a wallet associated with Hayes exchanged $510,545 USDC stablecoins for 98,560 PENDLE tokens just eight hours ago. Hayes orchestrated this trade via prominent market maker Wintermute.

Meanwhile, Hayes’ accumulation of PENDLE tokens dates back to June 2023, when he first bought 100,000 units from an anonymous source. Between September 2023 and March 2024, he procured 1.2 million tokens through Binance. 

Before his latest transaction, Hayes bought over 57K PENDLE tokens from Wintermute two days ago. As a result of this last accumulation, the BitMEX founder now holds 1,555,697 PENDLE coins, valued at $8,058,514 at press time. 

Arthur Hayes’ PENDLE holdings | Etherscan

Colin Wu estimated that Arthur Hayes acquired his PENDLE assets at an average cost of $2.02 per token. At press time, PENDLE holds a market value of $5.12. Essentially, the BitMEX exchange founder expended $3,142,507 to build his PENDLE token portfolio. Now, he commands more than double his initial investment in return, with his profit at $4,916,006.

In his latest blog post, Arthur Hayes revealed his intention to purchase Solana and various meme coins for “momentum trading positions.” He also mentioned that he is boosting his stakes in Pendle for more enduring speculative investments and will scout for additional tokens on sale. He intends to use the remainder of May to expand his investment portfolio.

Meanwhile, Hayes disclosed his role as an advisor and investor in the Pendle project, noting that he has been compensated with Pendle tokens for his advisory work.

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Hong Kong crypto custodians and exchanges disagree on asset custody.

Zodia’s CEO advocates for independent management of client assets.

Only a few exchanges have complied with licensing requirements in Hong Kong.

Hong Kong’s cryptocurrency custodians and exchanges find themselves at odds over the custody of customer assets, sparking a contentious debate within the city’s burgeoning crypto industry.

At the forefront of this dispute is Zodia Custody, a company backed by the British banking giant Standard Chartered. Zodia’s CEO, Kal Chan, has been vocal in advocating for regulatory oversight specifically tailored to cryptocurrency custodians. Chan asserts that the current practice of exchanges managing both their funds and client assets could lead to perceptions of assets commingling, undermining trust in the market.

This sentiment is echoed by Zodia’s desire to work closely with regulators to develop regulations that would allow custodians to manage client assets independently, separate from exchange operations. According to Chan, such a regulatory framework would instill confidence among institutional investors, who prioritize security and transparency when choosing where to store their digital assets.

However, not everyone in the industry shares Chan’s viewpoint. Gary Tiu, executive director and head of regulatory affairs at OSL, a licensed Hong Kong-based exchange, argues that the existing regulatory framework already ensures the protection of customer assets. Tiu contends that any perceived duopoly in custody services is a result of market maturity rather than regulatory shortcomings.

OSL, along with Hashkey, another licensed exchange, currently dominates the custody market in Hong Kong. Both companies handle customer funds in addition to operating as exchanges. Tiu emphasizes that these platforms undergo rigorous annual audits to ensure compliance with regulatory standards and safeguard client assets.

Despite the opposing stances, there are signs that regulators may be open to considering changes. Chan hopes for a consultation period later this year, signaling a willingness from regulators to address concerns raised by custodians.

The proliferation of unregulated crypto trading platforms in Hong Kong further complicates the debate over custody regulations. Financial regulators have been urging exchanges to apply for licenses, but only a few have so far complied. This regulatory push indicates the need for clear guidelines regarding custody practices in the cryptocurrency market.

The post Why Are Hong Kong Crypto Custodians Clashing With Exchanges? appeared first on Coin Edition.

Activation of dormant whale wallet with $43M in BTC raises concerns of potential selloff amid Bitcoin’s recovery.

Bitcoin’s surge past $64K triggers caution among traders due to overbought signals and potential trend reversal indicators.

Shorts dominating liquidations as Bitcoin rebounds, but impact of short squeeze may be limited, keeping market dynamics uncertain.

Bitcoin soared above the $64,000 threshold today, setting a momentous achievement in its current run-up.The resurgence in Bitcoin’s price was accompanied by a noteworthy event – the activation of a dormant wallet containing 687 BTC, valued at over $43 million as per Whale Alert data. This dormant Bitcoin whale, inactive for over a decade, made two substantial transfers to unknown wallets on Monday, totaling nearly $44 million.

💤 💤 💤 💤 💤 A dormant address containing 687 #BTC (43,893,168 USD) has just been activated after 10.3 years!https://t.co/l31uAyadYZ

— Whale Alert (@whale_alert) May 6, 2024

As per Lookonchain, an onchain analytic firm, the first transaction involved the transfer of 625.42 BTC, amounting to a  $41 million. The second transfer moved 61.9 BTC, equivalent to approximately $4 million at the time. 

The dormant whale acquired this substantial sum of Bitcoin on January 12, 2014, when the cryptocurrency was valued at $917 per coin. The dormant whale’s BTC reserve, initially worth $630,000, has now soared to approximately $43.94 million.

A wallet that has been dormant for 10.3 years transferred all 687.33 $BTC ($43.94M) out 10 mins ago.The whale received 687.33 $BTC ($630K at that time) on Jan 12, 2014, when the price was $917.Address: 15WZNLACuvcDrrBL2btDErJggnaMQtHh5G pic.twitter.com/tEPqM0CrrK

— Lookonchain (@lookonchain) May 6, 2024

However, this sudden transfer has raised concerns among investors regarding a potential selloff. The significant profit realized by the dormant whale strengthens the possibility of a dump, which could adversely affect Bitcoin’s price amidst its ongoing recovery. A selloff of such magnitude could potentially trigger a decline or sideways movement in the market, providing an opportunity for Bitcoin bears to capitalize on.

Bitcoin/USD 1-Day price chart, Source: Trading view

Despite Bitcoin’s successful rebound past $64,000, traders remain cautious as indicators suggest a potential reversal in the near future. The one-day stochastic RSI trading above the signal line indicates that Bitcoin is currently overbought, signaling a possible downturn. 

Moreover, the one-day MACD trading above the signal line suggests strong bearish momentum in the short term, with potential for further downward movement. Traders are advised to monitor for a crossover below the signal line, which could indicate a trend reversal.Additionally, the one-day ADX reading of 25.52 suggests moderate trend strength in the asset, but may not be robust enough to sustain significant price movement. Furthermore, shorts accounted for nearly 95% of total liquidations, according to Coinglass, although the impact of the short squeeze may be limited compared to recent days.

The post Crypto Alert: Dormant Wallet Activates With Transfers $44 Million in Bitcoin: What’s Next? appeared first on Coin Edition.

Australian court finds BPS guilty of unlicensed crypto operations with Qoin Wallet.

BPS is guilty of misleading marketing, selling over $40 million in Qoin Tokens without proper authorization.

ASIC chair Joe Longo emphasizes the critical need for crypto providers to hold appropriate licenses.

Australia’s crypto community now feels the impact of crypto enforcement as the nation’s primary financial regulator secures its maiden court victory against BPS, the provider of the Qoin Wallet.

On May 3, the Australian Federal Court found BPS Financial guilty of operating without a license. The ruling grants victory to the Australian Securities and Investments Commission (ASIC), which charged BPS Financial for its promotion of QOIN tokens outside established laws.

Since January 2020, BPS actively marketed Qoin tokens as a payment method for goods and services to both individual consumers and business proprietors, who were referred to as ‘Qoin Merchants.’ By the end of September 2022, the Qoin Wallet had been distributed over 93,000 times, and BPS had amassed more than $40 million from selling Qoin Tokens. 

In his ruling, Justice Downes determined that the Qoin Wallet constituted a financial product, more precisely, a non-cash payment facility. Accordingly, Downes ruled that BPS had been operating in violation of the Corporations Act by not holding an Australian Financial Services License.

Furthermore, the court found that BPS had misled customers by falsely promoting Qoin as a widely accepted medium of exchange. In reality, virtually no merchants accepted the token, the report stated. 

The only exchange facilitating Qoin redemption was BTX Exchange, which had close ties to BPS. While BPS did not execute a direct rug pull, the court found that its actions constituted breaches of several critical laws.

ASIC chair Joe Longo emphasized the importance of this case, stating that it serves as a reminder of the risky and complex nature of crypto assets. “This makes it critically important that providers have the appropriate licenses and authorizations, and that investors are provided with clear and accurate information,” he remarked.

Accordingly, Longo assured that ASIC would persist in its efforts to delineate regulated products and licensing requirements for providers within the industry.

The post Australian Court Convicts BPS Financial for Unlicensed Crypto Operations appeared first on Coin Edition.

South Korea’s exclusion of cryptocurrencies in donation laws contrasts with global trends, potentially limiting charitable innovation.

Amended donation legislation reflects South Korea’s push to modernize, embracing stablecoins and blockchain vouchers.

Balancing crypto inclusion with regulatory scrutiny, South Korea aims to curb financial crimes while potentially stifling charitable crypto giving.

South Korea has decided to exclude cryptocurrencies from its amended donation legislation, a move that could impact the country’s charities and donation drives. The Ministry of Public Administration announced that the updated “Donations Act” will allow various new donation methods, such as department store gift vouchers, stocks, and loyalty points from Korean internet giant Naver, but it will not permit the use of crypto assets like Bitcoin.

The decision comes as a surprise, especially considering the growing popularity of cryptocurrencies in South Korea. Globally, over $2 billion has been donated using cryptocurrency as of January 2024, according to reports. However, South Korean charities will not be able to tap into this market due to the exclusion of digital assets from the amended law.

Despite the exclusion of cryptocurrencies, the amended legislation will permit donations in local government-issued, KRW-pegged stablecoins and blockchain-issued gift vouchers. This move aims to modernize the donation process, which was first enacted in 2006 when there were fewer types of payment methods and smartphones were not as prevalent.

The amendments also expand the methods of donation from traditional bank transfers and online methods to include automated response systems, postal services, and logistics services. The Ministry aims to implement these changes starting in July, pending approval from lawmakers.

While South Korea was against taking such a step, it is reported that more than 50% of American charities now accept donations in digital assets, which clearly shows an increased trust in cryptocurrencies in charity. The fact that the cryptocurrencies are not being encompassed by the South Korean donation laws may keep the country’s charities off the blockchain bandwagon.

South Korea is also making efforts to combat cryptocurrency-related crimes and financial fraud. To combat the rise in crypto-related crimes, the government recently announced intentions to elevate its interim crypto crime investigation unit to the status of an official agency.

Furthermore, Crypto.com, a Singapore-based crypto exchange, is encountering regulatory challenges in joining the South Korean market. South Korean officials discovered anti-money laundering (AML) issues in the exchange’s data, prompting an “emergency on-site inspection” to monitor its operations.

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