US Web3 Companies Launch Technology Products and Integrations
By Robert A. Musiala Jr.
A major US cryptocurrency exchange recently launched a “Bitcoin-based lending” product that allows customers to deposit BTC as collateral for USDC loans. According to a blog post, the loans are “powered by Morpho, an open source lending protocol on Base.” (Base is an Ethereum L2 network initially launched by the crypto exchange in 2023.) According to the blog post, “borrowing against bitcoin instead of selling it can help delay a tax gain or loss.” »
Separately, the software company that developed the protocol for the world’s largest decentralized exchange (DEX) recently announced an integration with Ledger Live, an application for trading digital assets directly on users’ hardware devices. According to a press release, through the integration, “users can now trade tokens on the (DEX) without leaving the Ledger Live interface, while maintaining complete control of their digital assets thanks to industry-leading hardware wallets. Ledger.”
In another integration, Ripple Labs announced that it has adopted the Chainlink standard “to bring high-quality pricing data around the Ripple USD (RLUSD) stablecoin chain.” According to a Ripple blog post, “
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Foreign Web3 companies launch networks and obtain licenses
By Robert A. Musiala Jr.
A major Japanese technology company recently announced the launch of its Soneium blockchain network. According to a press release, the company also launched updated versions of its crypto exchange and NFT issuance services as part of the new Soneium ecosystem.
Separately, Tether, the issuer of the stablecoin USDT, announced that it had obtained a license to operate in El Salvador and that it intends to set up operations in the country. According to a blog post, “This move enhances Tether’s flexibility to explore game-changing solutions in a favorable regulatory and business environment. »
In Europe, a major global bank headquartered in the United Kingdom announced that it has obtained a license in Luxembourg to offer digital asset custody services to EU clients, in accordance with the MiCA Regulation. Additionally, a major global crypto exchange announced that it “has become the first major global crypto asset service provider to announce the receipt of a MiCA in-principle license.”
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The reports provide data and analysis on crypto market trends
By Robert A. Musiala Jr.
Several recent reports provide additional data and analysis on the crypto market in 2024 and expected trends for 2025. Notable reports include those from a major US crypto payment processor citing crypto payment trends for 2024; (2) an American venture capital firm dealing with crypto market forecasts for 2025; (3) a State of Web3 Adoption Report that addresses crypto trends in enterprise adoption, gaming, stablecoins, AI, and memecoins; and (4) a Swiss issuer of crypto exchange-traded products (ETPs) that discusses nation-state adoption of crypto network trends, Bitcoin and Ethereum, institutional adoption, and stablecoins.
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CFPB Proposes Expanding EFTA to Cryptography; NY DFS Caters to Coins Meme
By Robert A. Musiala Jr.
The U.S. Consumer Financial Protection Bureau (CFPB) recently released a proposed rule that, if finalized, would expand certain requirements of the Electronic Funds Transfer Act (EFTA) and its implementing regulations, Regulation E, to cover digital asset wallets, video game accounts, credit cards. rewards points accounts and other fintech payment products. Among other things, the proposed rule would interpret the term “funds” as used in EFTA to include “stable coins, as well as any other similarly situated fungible assets that function either as a medium of exchange or as a means of paying for goods or property. services.” The proposed rule also states that “the fact that an asset may fluctuate in value” does not exempt it from the EFTA definition of “funds.” The proposed rule notes that “many courts interpreting “funds” » in the context of federal money transmitter and money laundering laws have also held that the term “funds” is not limited to fiat currency and encompasses other types of assets, including currencies widely held like Bitcoin Comments. on the proposed rule are expected before March 31.
In another development, the New York State Department of Financial Services (NY DFS) recently released its Advisory Regarding Rapidly Proliferating and Sentiment-Based Virtual Currencies. The media interpreted the notice as referring to so-called meme coins. According to the notice, NY DFS is “closely monitoring the rapid proliferation of sentiment-based virtual currencies” and these virtual currencies “are generally inconsistent with the Department’s guidelines on coin listing and market manipulation, to the extent where they include regulations, important market rules. , and legal risk, and can be instruments favorable to the facilitation of illicit financing.
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Crypto Enforcement Actions Target Mixers, BSA Violations, and Fraudulent Schemes
By Robert A. Musiala Jr.
The US Department of Justice (DOJ) recently announced the indictment of two Russian individuals for their involvement in operating cryptocurrency mixing services Blender.io and Sinbad.io. According to a DOJ press release, the defendants were arrested on December 1, 2024. Among other things, the press release notes that Blender.io laundered funds for several ransomware groups and that Sinbad.io laundered funds for cybercriminals and a DPRK state-sponsored project. hacking group.
Another DOJ press release announced that a New York federal court had fined a foreign-based cryptocurrency exchange $100 million for violating the Bank Secrecy Act. The fine comes on top of a $110 million penalty previously imposed on the company and its executives.
And in a state-level action, the New York Attorney General recently announced “a lawsuit seeking to recover $2.2 million in cryptocurrencies held in digital wallets and stolen from New York -Yorkers and victims across the country in remote work scam.” According to a press release, the fraud involves scammers sending text messages offering fake online job opportunities as part of a scheme designed to trick victims into sending stablecoins to the scammers.
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US warns of DPRK crypto activities, reports provide data on crypto threats
By Robert A. Musiala Jr.
The United States, Japan, and the Republic of Korea recently issued a joint statement “to provide further warning to the blockchain technology industry regarding the ongoing targeting and compromise of a range of entities across the world by cybercriminals from the Democratic People’s Republic of Korea (DPRK). actors. The statement specifically warns of DPRK attacks involving “well-disguised social engineering attacks that ultimately deploy malware” and of insider threats emanating from information technology employees who work for the DPRK. The statement encourages the private sector to share information with law enforcement agencies through forums such as the Illicit Virtual Asset Notification (IVAN) information sharing partnership, the Cryptoasset and Blockchain Information Sharing and Analysis Center (Crypto-ISAC) and the Security Alliance (SEAL). .
In a recent blog post, blockchain analytics firm Elliptic reported that Huione Guarantee, “a multi-billion dollar market for online fraudsters, including those responsible for so-called pig butchery,” recently launched “a range of crypto-related products, including a stablecoin, blockchain, crypto exchange, and US dollar messaging app. Among its many findings, the report notes that “Huione Group entities have received at least $89 billion in crypto-assets to date.”
Another blockchain analytics company, Chainalysis, recently published a blog post previewing its upcoming Crypto Crime Report 2025. Among other things, the blog reported that in 2024, (1)40.9 billion dollars were received by illicit crypto addresses, representing 0.14% of the total on-chain transaction volume; (2) 63% of all illicit transactions used stablecoins, although sales in the ransomware and darknet market remain dominated by BTC; (3) stolen funds increased approximately 21 percent year over year to $2.2 billion; (4) ransomware continued to generate revenues in the hundreds of millions of dollars; and (5) the crypto-crime landscape is becoming increasingly diverse and professionalized, with a range of illicit actors – including transnational organized crime groups – increasingly leveraging cryptocurrency for crime traditional.
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