NORTHSTAKE’s Post

The cryptocurrency industry is facing a wake-up call! In a landmark case, US authorities have charged 18 individuals and entities with manipulating cryptocurrency markets through wash trading and other deceptive practices. This is a major development for investors in the crypto space. What Happened... The U.S. Department of Justice of charged leaders of 4 crypto companies, 4 market makers, and their employees with manipulating markets for their tokens. They used "wash trading" (buying and selling to each other) to create fake trading activity and inflate prices, attracting unsuspecting investors. Wash trading is similar to a a financial scam many Kenyans are cognizant of i.e. pyramid schemes. Both wash trading and pyramid schemes are deceptive practices as both involve misleading others for financial gain. They are both unsustainable i.e. wash trading creates false market activity, and pyramid schemes rely on constant recruitment, and thus both are built on unstable foundations. Additionally, both practices are typically illegal and subject to regulation and penalties. Who Were the Targets... Four cryptocurrency companies - Saitama, Robo Inu, VZZN, and Lillian Finance - are implicated. These companies allegedly made false claims and manipulated their token prices through wash trading with market makers like ZM Quant, CLS Global, MyTrade MM, and Gotbit. What Does This Mean for Investors... This case highlights the risks of investing in unregulated markets like cryptocurrency. Investors need to be extra cautious and do their research before investing in any crypto project. Here are some tips on how you can protect yourself if you opt to take on the risks posed by crypto trade or indeed any other trade options: 1. Research the project: Do not just invest based on hype. Understand the project's purpose, team, and technology. 2. Beware of false promises: If something seems too good to be true, it probably is. Do not fall for unrealistic claims of high returns. 3. Diversify your portfolio: Do not put all your eggs in one basket. Spread your investments across different asset classes. People considering making investments in the cryptocurrency industry should understand how these scams work so that they can protect themselves. At the end of the day if you opt to venture into crypto trade in Kenya, remember the Central Bank of Kenya's 2015 Warning that warned the public about the dangers of virtual currencies and can be reviewed here https://lnkd.in/dvpr8BBh #Cryptocurrency #Fraud #WashTrading #InvestorProtection #CyberSecurityLawyer

Nigerian SEC to Issue Crypto Platform Licenses as Market Size Grows What the Regulation or Fine is About Nigeria’s Securities and Exchange Commission (SEC) plans to issue licenses to cryptocurrency exchanges as part of its broader strategy to regulate the fast-growing digital asset trading market. In June, the SEC updated its regulations on Digital Asset Issuance, Offering Platforms, Exchange, and Custody to better manage the cryptocurrency platforms operating in the country. These updates are expected to enhance crypto market regulation and improve compliance across the sector. Who Issued It The Nigerian SEC is spearheading this regulatory change, with the goal of creating a formal structure for cryptocurrency exchanges to operate within Nigeria’s financial system. According to Emomotimi Agama, the SEC's Director-General, the regulatory body is focused on balancing the rapid crypto adoption in the country with the need for regulatory oversight. Agama emphasized the importance of supporting Nigeria’s youth, who are actively involved in the fintech and blockchain sectors, while ensuring the country’s currency manipulation risks are mitigated. Who is Affected The issuance of licenses will primarily affect cryptocurrency exchanges and platforms that facilitate digital asset trading in Nigeria. This will also have a significant impact on Nigerian fintech companies, financial institutions, and the growing number of individual investors involved in the crypto space. With Nigeria becoming a global leader in cryptocurrency adoption, these new regulations will ensure safer and more transparent operations for both businesses and users. Reasons Behind the Regulation Nigeria’s rapid rise in the global crypto market has been a major driver behind the SEC’s updated regulatory framework. After the Central Bank of Nigeria lifted restrictions on Naira withdrawals for crypto transactions, demand for digital assets surged. The country was ranked the second-largest economy in terms of crypto adoption last year. However, the SEC also seeks to prevent potential currency manipulation and money laundering, as seen in past incidents involving exchanges like OKX. Implications for the Crypto Market The issuance of licenses by the Nigerian SEC will bring greater regulatory oversight and crypto market regulation, creating more transparency and boosting investor confidence. Licensed cryptocurrency exchanges will now operate within a structured legal framework, improving security for users and attracting more digital asset trading in Nigeria. However, exchanges like OKX, which halted Naira withdrawals earlier this year due to regulatory challenges, highlight the difficulties that come with navigating evolving regulations. As Nigeria continues to lead in crypto adoption, this move is expected to solidify the country’s position in the global fintech and blockchain markets. #NigeriaCrypto #NigeriaSEC #CryptoLicensing #FintechNigeria #RegulatoryOversight #NairaCrypto

The Philippines in late March began to block access to Binance, the world’s largest cryptocurrency exchange by trading volume. In late Nov. 2023, the Philippine security regulator (SEC) warned the company that it is not authorized to operate in the country without a license and sell or offer securities to the public, and would not be able to continue in that manner. In a statement, the SEC said that it was “warning the public against using online cryptocurrency exchange Binance, as it moves to have the platform blocked in the Philippines to safeguard the public from unregistered investment products.” Binance has a well-deserved reputation as a disruptor not beholden to regulatory norms. It is not a surprise that the massive crypto exchange has fallen afoul of yet another financial regulator. Before this action by the Philippines, Binance had already been banned in 17 other countries. However, it would be a mistake to see this action by the Philippines SEC as indicative of a broader hostility towards digital assets. We see no evidence of such a stance among the country’s financial regulators. On the contrary, they seem to see a role for cryptocurrencies in boosting financial inclusion – an ongoing initiative in a country where there are still an estimated 40% of adults without bank accounts – and have not moved to restrict the operations of local, licensed cryptocurrency exchanges. Unlike many other countries, where Web3 investments have yet to bear fruit, the Philippines is estimated to be home to 30% of the world’s crypto gamers, according to Marketplace. Reporter Eli Tan describes the country as “really the haven for this stuff” and says that crypto gaming has “become the livelihoods of a lot of people” in the Philippines. Data compiled by research firm Chainalysis show that in November and December, the value of crypto transactions in the Philippines increased 70% from September and October to US$7.3 billion. Meanwhile, once it became clear that Binance really would be banned in the Philippines, some panicked investors apparently rushed to liquidate their holdings at significant discounts. We find that unfortunate, but it is not as if they did not have adequate time to prepare for this moment. Licensed local exchanges will likely be the beneficiaries of the Binance ban, as some investors transfer over their holdings. With that in mind, Rafael Padilla, legal director at Farcove Consulting in Manila, said in a March 28 DL news article that blocking Binance’s website while letting local crypto exchanges offer similar products is “invidious discrimination.” #philippines #binance #cryptocurrency #crypto #digitalassets #bitcoin

New Post: BitForex, A Cryptocurrency Exchange, Suspends Withdrawals And Ceases User Support - https://lnkd.in/gfcpFv9Y - BitForex, a cryptocurrency exchange located in Hong Kong, has stopped accepting withdrawals for at least three days without citing a cause. Approximately $56 million in cryptocurrency had been taken out of the exchange’s wallets the day before the halt. On-chain detective ZachXBT said in an X post dated February 23 that three BitForex hot wallets had cryptocurrency withdrawals totaling over $56.5 million before the exchange ceased operations.  Since May 2023, there have been no updates to the exchange’s X account. Users of BitForex are experiencing issues with their accounts on its official Telegram channel. These issues range from not being able to access their accounts to the dashboard not displaying any assets. A pop-up screen indicating they are prohibited from visiting the company’s website was posted by many people. BitForex Had Been Charged By Japan For Breaking Nation’s Money Regulations When Cointelegraph attempted to access the website, the same issue persisted. On the exchange’s website, a few particular pages are still active, nevertheless. For instance, at the time of writing, the website still had an announcement from January 31 stating that BitForex CEO Jason Luo had departed the firm. Based on market capitalization, BitForex was one of the top cryptocurrency exchanges in the world in September 2023. It was exchanging almost $2.6 billion worth of cryptocurrency per day.  It was charged by Japan’s Financial Services Agency (FSA) in April 2023 with breaking the nation’s money settlement regulations. The FSA claims that the exchange was operating in the nation without the required registration. But neither the media nor authorities have paid much attention to the company since then. Atom Asset Exchange (AAX), a different Hong Kong exchange, shifted over $55.6 million worth of Ether ETH tickers down $3,234 from its wallets last week.  - #news #business #world -------------------------------------------------- Download: Stupid Simple CMS - https://lnkd.in/g4y9XFgR -------------------------------------------------- or download at SourceForge - https://lnkd.in/gNqB7dnp

I started taking professional interest in the virtual asset space in late 2017. In the course of my service in various positions over the years in Nigeria's emerging virtual assets industry, I've come to one inevitable conclusion—over and again. Many developed countries, developing countries, including Nigeria, and underdeveloped countries still largely lack a fundamental understanding and appreciation of the rights-based dimension of crypto adoption. Yes. From one jurisdiction to the other, whether in the U.S, China, India, or Nigeria. It is relatively the same experience, except that while a few of these countries at least have some level of rule of law going for them, others don't—and hardly pretend to these days, unfortunately. I believe that the absence of that full understanding and appreciation of the rights-based dimensions of crypto adoption is one of the reasons why certain regulatory approaches—and how crypto industry engagements are done or not done at all—is doing great damage to what should have been a balance between innovation and regulation. In the current state of things, one would feel—rightly or wrongly—that regulators who show any semblance of promoting crypto regulation are doing crypto adopters a favor. There are legitimate interests and legal rights involved here. As written by Jude Ayua in the post I reshare below, there are undeniably clear fundamental rights associated with crypto adoption. Therefore, crypto regulation cannot—and should not be—reduced to an issue of regulators granting favors to innovators. That would be inherently and roundly flawed, and also unhealthy. It will not help anyone, especially the government, and the public. It's time we became more forward-thinking and stop mounting scarescrows in this nascent virtual asset industry. I hope we find this article a useful read, particularly in view of the current crackdowns out there, including in my dear country, Nigeria: https://lnkd.in/dsyHtex7 #crypto #regulation

🚨 Top Blockchain News of the Week: 6th April 2024 🚨 1. #SEC seeks public input on #Bitwise, #Fidelity, and #Grayscale's spot #Ether ETF filings. Final decision expected in May. Comments due within 21 days of Federal Register publication. 2. Irina Dilkinska, ex-#OneCoin compliance chief, sentenced to 4 years for #laundering and #fraud in a $4B #Ponzi scheme. She's the latest executive convicted in the case. 3. #Google sues two developers over #scam #crypto apps on Play Store, claiming they duped 100K+ users since 2019 using high return promises and posing as romantic partners. 4. Nigeria collaborates with #Interpol to extradite #Binance exec Nadeem Anjarwalla, accused of tax offenses and fleeing Nigeria in March, ensuring his return for legal proceedings. 5. #Ethena's #USDe, a "synthetic dollar," surpasses $2B supply within two months, ranking as the fifth-largest #stablecoin and claiming 1.25% of the $160B stablecoin market. Check here for more information: https://lnkd.in/dYQDnsky

👉 Did you know that the Estonian Government approved new requirements for cryptocurrency service providers? 🙌 Last week, the Estonian government took a significant step towards regulating the cryptocurrency market by approving the introduction of operational requirements for cryptocurrency service providers. The goal is to ensure the reliability of the market and reduce excessive risks, thereby better protecting investors' money. 😱 Cryptocurrency markets in the European Union are currently not uniformly regulated, leading to several scams and affecting the credibility of the market. ✅ As you already know, MiCA has established uniform rules for market participants throughout the European Union. This means that cryptocurrency service providers can offer their services on the same basis in all member states and must disclose information in the same way as in the case of shares and bond offers. ☝ Under the MiCA adoption legislation, service providers will be required to provide comprehensive information to investors before involving money. This will be enforced by the Estonian Financial Supervision Authority ( 🇪🇪 Finantsinspektsioon), which will supervise cryptocurrency service providers in Estonia. Presently, cryptocurrency services are referred to as virtual currency services, and to offer such services in Estonia, a license must be obtained from the Financial Intelligence Unit (FIU). The FIU license allows for continued operations until January 1, 2026. After that, the broader term "cryptocurrency" will be used instead of virtual currency, and to continue operating, the cryptocurrency service must comply with the requirements of the MiCA regulation, and a license must be obtained from the Finantsinspektsioon. The new rules will enable crypto investments through an investment account from 2025, which will be subject to clear rules and supervision. The new law requires an activity license for the provision of cryptocurrency services, and the service must be offered in the form of a private limited company (OÜ in 🇪🇪 ) or a public limited company (or AS in 🇪🇪 ). To mitigate risks, the board of the cryptocurrency service provider must have at least two members. The draft lowers the threshold for the securities prospectus requirement, which could promote the development of the Estonian capital market. Previously, companies wishing to raise capital through shares or bonds in an amount greater than 5 million euros had to prepare a voluminous and expensive securities prospectus. The lowered threshold means preparing a simpler information document instead of a securities prospectus for issues of less than 8 million euros. 🙌 Overall, the new requirements will generally apply by the end of 2024. We encourage all current VASPs to start with preparation for transition under MiCA and use professional help to get the CASP license secured. #mica #compliance #Estonia

Got 5 minutes to catch up with this weeks #Crypto bytes? ⚖ Regulatory and Legal Developments The UK Financial Conduct Authority (#FCA) has issued over 1,000 warnings to crypto firms since October, highlighting the intense regulatory scrutiny in the region. Coinbase in Hot Water as a new FEC complaint, lodged by Public Citizen and Molly White, alleges that Coinbase violated campaign finance laws following their donation of $25M to Fairshake Super PAC. The CFTC has subpoenaed Ben 'Bitboy' Armstrong's former company in a fraud investigation, they have asked for information on activity relating to 15 Tokens including $BEN #memecoin. A Montenegrin supreme court has postponed Do Kwon's extradition to South Korea once again, keeping the former Terraform Labs CEO's fate uncertain. Russia has legalized Bitcoin and cryptocurrency mining, further integrating itself into the global crypto economy. 💼 Business & Market Moves Brazil's Securities and Exchange Commission has greenlit a Solana-based ETF, marking another step forward for crypto adoption in the LATAM region. Mox Bank, a virtual bank in Hong Kong, has launched crypto ETF trading, reinforcing the city's position as a crypto-friendly hub. Indian crypto exchange WazirX is planning to restore the balances of all platform accounts following the halt of withdrawals caused by a $235 Million hack. 🔄 Leadership Changes Diego Oliva, the CEO of Starknet Foundation, has stepped down, signaling a major leadership shift at one of Ethereum’s prominent layer-2 projects. 🗳️ Political & Social Impact On Polymarket, a decentralized prediction market where the odds of Kamala #Harris or Donald #Trump 2024 prevailing are tied, at 49% each. Please 👍 and 🔁 if you enjoy this weekly content!

Welcome to our weekly newsletter from AP®TP on Real World Asset (RWA) tokenization! (09 July 2024-15 July 2024) We bring you the latest news, trends, and insights from the past week. Let's dive in! Reach us： info@aprtp.com 1. The German government has transferred over 16,000 BTC to various cryptocurrency exchanges. This move is part of a broader effort to liquidate assets seized during criminal investigations. The sale of such a significant amount of Bitcoin could impact the market, depending on how and when it is executed. The funds generated from these sales are expected to be redirected into public coffers, supporting various governmental initiatives. This event highlights the growing intersection between law enforcement and the cryptocurrency industry. 2. A Singapore court has ruled in favor of the Fantom Foundation in its lawsuit against Multichain, resolving a significant legal dispute within the crypto industry. The court's decision supports Fantom's claims over contractual agreements and intellectual property rights, setting a precedent for similar cases in the sector. This ruling not only strengthens Fantom's position but also highlights the importance of clear legal frameworks and adherence to contractual obligations in the rapidly evolving cryptocurrency landscape. 3. Bitwise Chief Compliance Officer (CCO) has indicated that Ethereum ETFs are nearing approval, with the SEC showing openness to various other crypto funds. This development suggests that regulatory acceptance of Ethereum-based ETFs could soon follow, providing investors with more diverse options for exposure to the cryptocurrency market. The potential approval of these ETFs signifies a major step towards mainstream adoption and could drive increased institutional participation in the Ethereum ecosystem. 4. Goldman Sachs is set to launch three tokenization projects aimed at enhancing the efficiency and accessibility of financial services. These projects will leverage blockchain technology to tokenize assets, streamline transactions, and provide greater transparency. Goldman Sachs' initiative reflects its commitment to innovation in the financial sector and its belief in the potential of digital assets to transform traditional financial systems. This move is expected to drive wider adoption of blockchain technology in mainstream finance. 5. Mastercard has partnered with crypto payment gateway Alchemy Pay to prevent identity fraud in digital transactions. This collaboration aims to enhance security measures by integrating Mastercard's identity verification technology with Alchemy Pay's platform. The initiative will provide a more secure environment for users and merchants, reducing the risk of fraudulent activities. This partnership underscores Mastercard's commitment to advancing secure digital payments and supports Alchemy Pay's mission to bridge the gap between fiat and cryptocurrency transactions.