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Japan's Financial Services Agency (FSA), the country's primary financial regulator, has provided clarification on peer-to-peer (P2P) crypto transactions following recent recommendations to local banks. In a letter dated Feb. 14, the FSA urged banks to enhance user protection by halting transfers to crypto-asset exchange service providers if the sender's name differs from the account name. This guidance has raised concerns as it could potentially impact P2P transfers, which often involve different users on the sender and receiver ends. The FSA clarified that its recommendation does not target transactions between individuals. Instead, it aims to combat unlawful money transfers, particularly instances where an individual deposits cash from their bank account into an account belonging to a crypto asset exchange service provider. The agency aims to prevent fraudulent activities where a fraudster persuades a victim to change their name to execute a suspicious transaction. By blocking...

U.S. prosecutors have urged a federal judge to approve a plea deal with cryptocurrency exchange Binance Holdings, asserting that the proposed penalties align with the severity of Binance's deliberate violations of U.S. laws. The charges against Binance primarily revolve around its alleged failure to register as a money services business and implement adequate anti-money laundering measures, leaving users and the U.S. financial system susceptible to exploitation. Binance has agreed to pay $4.3 billion in penalties as part of the settlement deal, with CEO Changpeng Zhao (CZ) agreeing to step down from his position. Prosecutors argue that the proposed penalties are appropriate given the intentional nature of Binance's misconduct, led by senior executives and resulting in significant collateral consequences. Prosecutors emphasized that Binance's violations were intentional and orchestrated by senior executives, underscoring the seriousness of the charges. The plea deal seeks to address...

The Central Bank of the Republic of Türkiye (CBRT) has successfully completed phase 1 of its digital Turkish lira (CBDC) and is now gearing up for more widespread pilot tests in advanced phases. Phase 1 involved preliminary tests of strategic technologies and pilot studies at specific locations to measure user experience and system performance, according to a recent evaluation report. The evaluation report compiled findings and assessments from phase 1, focusing on digital currency transactions, wallet application, and digital identification. The CBRT emphasized the importance of preparing a system that fully meets the requirements and principles of digital currency rather than solely focusing on the technology itself. The report highlighted CBRT's efforts in exploring the feasibility and implementation of a CBDC since 2021. The successful execution of the first payment transaction on the digital Turkish lira network in December 2022 marked a significant milestone in the central...

Forbes recently announced its entry into The Sandbox metaverse, marking a significant move for the media giant into Web3 and digital real estate. By acquiring virtual land in The Sandbox, Forbes aims to establish a permanent presence within this expansive online world, reflecting a growing trend among companies exploring the metaverse's potential for community engagement and innovation. The Sandbox, renowned for its interactive and user-generated content, provides a platform where Forbes plans to create a community hub. This space will facilitate interaction, engagement, and collaboration among participants, extending beyond traditional media engagement methods. Forbes envisions its virtual estate in The Sandbox to include various features such as a luxurious pool, an elegant bar, and a gallery showcasing the 2024 Under 30 recipients. These elements underscore the company's effort to create an engaging and visually appealing user environment within the metaverse. Forbes' Chief Growth...

Recent reports indicate that UK lawmakers are accelerating efforts to introduce new regulations for crypto staking services and stablecoins ahead of the next general elections. Economic Secretary to the Treasury Bim Afolami emphasized the government’s commitment to advancing legislation during an industry event hosted by Coinbase in London. The proposed regulations aim to provide clarity and oversight in areas such as crypto staking and fiat-backed stablecoins, aligning with the government's goal to position the UK as a global crypto hub. The UK government aims to introduce new regulations for crypto staking services and stablecoins within the next six months. This initiative follows the Treasury's pledge to offer clearer guidelines on specific crypto areas by 2024, responding to the growing importance of digital assets in the financial landscape. The proposed regulations are expected to bring fiat-backed stablecoins and their issuers under existing payment laws, granting financial...

Prime Minister Fumio Kishida's administration has taken a significant step toward allowing venture capital firms and investment funds to directly hold crypto assets. The proposed amendment to Japan’s Industrial Competitiveness Enhancement Act aims to integrate digital assets as eligible investments for venture capital firms, aligning with Japan’s broader objective of embracing digital innovation within its investment ecosystem. The cabinet approved the bill’s text on February 16, a crucial step towards submission to the Diet, Japan’s parliament, for deliberation. This move aims to provide venture capital firms greater flexibility in engaging with cryptocurrencies, reflecting Japan’s commitment to fostering innovation and economic growth. The economic agenda prioritizes support for Web3 firms, indicating strategic alignment with emerging technologies. Japan, known for stringent crypto regulations, has shown gradual easing of certain rules, signaling recognition of digital assets'...

The website of LockBit, a major crypto ransomware operator, has been taken down in a coordinated effort by international enforcement agencies, including the UK's National Crime Agency (NCA), the US Federal Bureau of Investigation (FBI), and Europol. The operation aimed to disrupt LockBit's activities by seizing control of its website and replacing its content with a message confirming law enforcement's intervention. The move follows warnings from cybersecurity authorities about the persistent threat posed by LockBit, which has been responsible for high-profile attacks, including the Royal Mail hack. While the full impact of the takedown is yet to be determined, it represents a significant step in disrupting the operations of ransomware groups and sending a message of deterrence. The coordinated effort to take down LockBit's website highlights the ongoing battle against ransomware and the importance of international cooperation in addressing cyber threats. While this action may...

The National Anti-Corruption Commission (NACC) of Australia has leveled accusations against a federal police officer, Detective Sergeant William Wheatley, for allegedly stealing Bitcoin (BTC) worth over $4 million during a drug raid. Reports reveal that a Trezor hardware wallet containing 81.62 Bitcoins was discovered during the operation, but upon obtaining court approval for access, investigators found the coins missing, allegedly moved by Wheatley shortly after the raid. The trail led to the Binance crypto exchange, with suspicions initially directed towards a crime syndicate associate, but the focus shifted to Wheatley after analyzing IP addresses linked to the stolen BTC. Crypto theft remains a significant challenge in the Web3 industry, with cybercriminals exploiting vulnerabilities to steal funds. In 2022, over $3.7 billion worth of crypto was stolen, a trend that continued in 2023, albeit with a decrease to $2 billion in stolen assets. Notably, government-sponsored cyber...

A report from Chainalysis has revealed a significant increase in cybercriminals' use of cross-chain bridges to launder money, with illicit cryptocurrency transactions surging to $743.8 million in 2023 from $312.2 million in 2022, marking a 138% rise year-on-year. This shift in money laundering tactics signifies a move away from traditional exchanges to more sophisticated methods involving bridges and mixers. Notably, the North Korea-sponsored Lazarus Group has been identified as a key player in these activities, utilizing bridges to launder stolen funds, including a high-profile $100 million cryptocurrency theft from the Horizon Bridge of the Harmony blockchain in 2022. The laundering process involves transferring stolen funds across multiple blockchains and converting them into stablecoins before further transactions, highlighting concerns about the security of blockchain ecosystems and the challenges in tracking and preventing such activities. The report emphasizes the necessity...

VanEck has agreed to pay a $1.75 million fine to settle charges brought by the SEC related to its launch of a social media-focused ETF in 2021. The SEC found that VanEck failed to fully disclose the involvement of a prominent social media personality in marketing the ETF, which aimed to leverage "positive insights" from social media data. While the influencer's identity was not explicitly revealed, reports suggest it may have been David Portnoy, founder of Barstool Sports. The undisclosed deal involved the influencer's compensation being tied to the fund's growth, raising concerns about transparency and compliance with. The undisclosed arrangement with the influencer not only violated regulatory obligations but also undermined the integrity of the ETF's operations and management. This case underscores the regulatory scrutiny faced by firms seeking to capitalize on the growing popularity of ETFs and highlights the need for thorough due diligence and compliance procedures when engaging...

A group of FTX creditors, represented by Edwin Garrison, has initiated a class-action lawsuit against the prestigious law firm Sullivan & Cromwell (S&C), alleging that the firm knowingly aided and facilitated FTX's fraudulent activities. The lawsuit accuses S&C of involvement in a civil conspiracy, aiding and abetting fraud and fiduciary breaches, and participating in a RICO enterprise allegedly operated by FTX and its former CEO, Sam Bankman-Fried (SBF). Creditors assert that S&C's legal expertise, regulatory knowledge, and resources were instrumental in enabling FTX's deceptive practices, particularly through the actions of Ryne Miller, a former S&C attorney who later became General Counsel for FTX US. The creditors claim that S&C was aware of FTX's misused funds and regulatory issues but continued to provide services, profiting from its pre-bankruptcy work for FTX. The lawsuit highlights S&C's role in FTX's operations, including 'round-trip' transactions and the Robinhood purchase...

JPMorgan released a report suggesting that the Office of Foreign Assets Control (OFAC) could exert control over Tether (USDT) despite it being a non-US entity. The report highlighted Tether's connection with Tornado Cash, an Ethereum-based privacy enhancement platform, as indicative of this potential control. In response, Tether CEO Paolo Ardoino dismissed JPMorgan's concerns, attributing them to jealousy and criticizing the bank's track record of fines totaling $39 billion. Earlier, Ardoino labeled JPMorgan a "hypocrite" due to its increasing concentration of Tether holdings, highlighting tensions between traditional financial institutions and the growing influence of cryptocurrencies. While regulatory concerns surrounding stablecoins like Tether are not new, JPMorgan's report underscores the complexity of jurisdictional issues in the decentralized cryptocurrency space. Paolo Ardoino's response reflects a defensive stance common among cryptocurrency proponents, who often view...