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Tether, the issuer of the USDT stablecoin, has announced the establishment of four new divisions: Tether Data, Tether Finance, Tether Power, and Tether Edu. These divisions aim to offer a wide range of services, including data management, blockchain-based financial services, sustainable Bitcoin mining, Artificial Intelligence (AI), and digital education initiatives. Tether is building a more inclusive financial and technological future, expanding beyond its core business of stablecoin issuance. The company aims to create accessible financial products and services for individuals worldwide, leveraging blockchain technology to democratize the financial system. Additionally, Tether plans to launch a digital asset tokenization platform, enabling the tokenization of various assets like bonds, stocks, or funds. This initiative aligns with Tether's vision of empowering individuals and communities through technology. Paolo Ardoino, CEO of Tether, emphasized the company's dedication to...

Swedish crypto miners are facing tax bills totaling over $90 million after investigations by the Swedish Tax Agency revealed four years of misappropriations. The agency investigated 21 crypto-mining firms between 2020 and 2023, uncovering misleading or incomplete information filed by 18 firms to benefit from tax incentives. Some firms provided misleading business descriptions to avoid VAT on taxable operations, while others evaded import taxes on mining equipment and income tax on mining revenue. The crypto mining firms are required to pay over 990 million Swedish krona ($90 million) in total, including unpaid VAT of 932 million krona ($85.4 million) and tax surcharges of approximately 57.9 million krona ($5.3 million). Although some firms appealed against the demand, the administrative court upheld the appeals of only two mining firms. In November 2023, crypto mining firm Hive Digital Technologies acquired a commercial property and a data center in Boden, Sweden, to expand its...

Binance, one of the world's largest cryptocurrency exchanges, is poised to make a comeback in India after a four-month ban by agreeing to pay a $2 million fine for non-compliance. This move comes after India's financial regulatory body, the Financial Intelligence Unit (FIU), blocked access to nine foreign crypto exchanges, including Binance, for failing to adhere to the country's Anti-Money Laundering Act. Binance's return marks the second overseas exchange, following KuCoin, to re-enter the Indian market. Before its ban in January, Binance reportedly accounted for over 90% of Indian crypto trading volume. Indian users turned to foreign exchanges like Binance to evade heavy tax burdens, prompting the government to ban unregistered overseas exchanges. With FIU registration, foreign exchanges must comply with the same regulations as Indian exchanges, including implementing a 1% tax deduction at source (TDS). Despite its long history in India, including its alleged acquisition of local...

Former chief of the SEC’s crypto litigation unit, Ladan Stewart, hinted at the possibility of a lawsuit involving companies like Ripple and Coinbase reaching the US Supreme Court to resolve key questions about the definition of securities within the crypto space. Stewart's insights, shared during a panel at Columbia Business School, reflect the SEC's regulatory stance and its implications for the crypto industry. Stewart emphasized that the SEC is unlikely to back off from bringing regulatory cases in the crypto space, citing Judge Failla’s decision in the Coinbase case as providing comfort to the agency in its approach. The panel discussion delved into broader implications of how digital assets are treated under US law, with ongoing disputes about whether tokens themselves are securities or if it is the manner of their sale that creates an investment contract. Panelists expressed contrasting views, highlighting persistent areas of contention between the crypto industry and...

The Norwegian government has passed a new law aimed at regulating and potentially closing cryptocurrency mining operations within its borders. The move, disclosed by local news outlet VG, reflects Norway's commitment to reducing greenhouse gas emissions associated with crypto mining and aligning with global climate objectives. The legislation specifically targets data centers facilitating crypto mining activities, with digitalization minister Karianne Tung and energy minister Terje Aasland emphasizing the government's stance against such businesses. Norway's favorable energy landscape, particularly its abundance of hydropower, has made it an attractive destination for Bitcoin miners seeking low-cost electricity. However, concerns over the environmental impact of crypto mining have prompted regulatory action, signaling potential challenges for the industry's future in the country. The timing of this regulatory move, just ahead of Bitcoin's halving event, adds complexity to the...

The Bank of Israel is set to launch a sandbox environment for testing central bank digital currency (CBDC) use cases. Deputy Governor Andrew Abir announced the initiative, stating that the sandbox will facilitate collaboration among financial institutions, fintech companies, and other stakeholders to develop and test innovative applications for the digital shekel. Abir emphasized the digital shekel's stability compared to cryptocurrencies, highlighting its similarity to physical cash in terms of being a liability of the central bank. He clarified that the digital shekel will be backed by the Bank of Israel and will maintain a stable value, unlike cryptocurrencies subject to significant fluctuations. The digital shekel is expected to enable transactions not feasible with physical cash, such as e-commerce transactions. The Bank of Israel plans to adopt a two-tiered operational model, allowing a wide range of entities, including payment companies and fintech firms, to participate in the...

The Bank of Korea (BOK) is ramping up its Central Bank Digital Currency (CBDC) project, planning a pilot program involving 100,000 participants to test the digital Korean Won by the end of 2024. In collaboration with regulatory bodies, the BOK will conduct usability experiments for its CBDC, aiming to introduce two new digital currencies focused on practical applications such as deposit tokens and digital vouchers. This initiative addresses concerns from the private sector about potential impacts on commercial activities. The BOK's efforts align with a global trend of advancing CBDC initiatives. For instance, the UAE Central Bank is pushing for pilot integration for the CBDC digital dirham, while the Reserve Bank of India (RBI) announced that non-payment operators will offer CBDC wallets in the country. These developments underscore the growing interest and adoption of CBDCs worldwide. As the BOK accelerates its CBDC project and prepares for the pilot program, it signals a...

Landesbank Baden-Württemberg, the largest federal bank in Germany, is set to launch cryptocurrency custody services in collaboration with Bitpanda in the second half of 2024. The move comes in response to increasing demand from corporate clients for digital asset custody solutions. Jürgen Harengel, managing director of corporate banking at Landesbank Baden-Württemberg, emphasized the rising interest in digital assets among their corporate customers. The partnership with Bitpanda will utilize the crypto custody platform with decentralized finance capabilities to provide custody services for cryptocurrencies like Bitcoin and Ethereum, among others. Gonzalo Lamas, head of global communication at Bitpanda, highlighted that the collaboration aims to enhance Landesbank Baden-Württemberg's digital asset offerings, ensuring high security and innovative solutions for corporate clients. Furthermore, Deutsche Bank and DZ Bank, Germany's second-largest bank, are also gearing up to offer crypto...

Norway is set to implement new legislation aimed at regulating data centers nationwide and overseeing the activities of Bitcoin miners. The law mandates registration of all data centers with authorities and requires detailed information on services and ownership structure. According to Energy Minister Terje Aasland, cryptocurrency-related data center businesses are not desired in Norway, with the government preferring serious actors important to society. The legislation comes amid concerns over the increasing electricity consumption of crypto mining operations, particularly in Northern Norway. The country's focus on responsible energy use aligns with its abundance of hydropower and renewable energy sources. However, the legislation could pose regulatory challenges for BTC miners, potentially affecting their ability to obtain permits for new operations or expansions. The legislative developments coincide with concerns surrounding Bitcoin mining ahead of the upcoming halving event. 10x...

The provincial government of Buenos Aires has formally accused Worldcoin of violating consumer laws through "abusive clauses" in its user agreement. The allegations include interruptions of services without offering repair or reimbursement, as well as the requirement for users to surrender their rights to collective complaints and apply Cayman Island laws to residents of Argentina. Additionally, Worldcoin allegedly fails to provide an age disclaimer for users under 18, stores private data internationally in Brazil, and lacks clarity on the deletion of biometric data collected from Argentine users. If proven, Worldcoin could face a fine of up to 1 billion Argentine pesos ($1.2 million). These allegations follow similar actions in the EU by Spain and Portugal, addressing data collection from minors, user consent, and data ownership. While Worldcoin claims its operations are legal, it faces pressure to adapt its terms to comply with regional regulations. The outcome of these legal...

The United Kingdom is set to introduce new legislation covering stablecoins and various crypto activities, including staking, trading, and custody, expected to be implemented by June or July 2024. This marks a significant milestone as it brings digital assets under regulatory oversight for the first time, following the approval of the Financial Services and Markets Act in June 2023. UK Economic Secretary Bim Afolami reaffirmed the government's commitment to fast-tracking cryptocurrency-related issues during the Innovate Finance Global Summit. The forthcoming regulations aim to foster a regulated and supervised environment for the nascent industry, ensuring consumer protection and market integrity. The legislation signifies the UK government's efforts to create a crypto-friendly environment while balancing innovation and investor protection. Despite challenges faced by the industry, such as delays and inadequate feedback from the Financial Conduct Authority (FCA), the forthcoming...

Steven Nerayoff, a former advisor to Ethereum, has initiated a lawsuit against Michael Hlady and Marianna Shooshani in the Supreme Court of New York, Nassau County, alleging a fraudulent scheme resulting in substantial financial loss. The lawsuit accuses Hlady and Shooshani of creating a fictitious consultancy firm, North Star Ventures Corp., to deceive Nerayoff into paying over three-quarters of a million dollars for non-existent consulting services. Nerayoff alleges that Hlady, posing as a former government agent, and Shooshani induced him into entering a consulting agreement under false pretenses. Payments made by Nerayoff to NSV were purportedly for consulting fees and related expenses. However, it was later discovered that NSV did not exist, and Hlady had a criminal history. In response, Nerayoff's legal team has presented a multi-faceted legal strategy seeking recovery of the funds paid to Hlady and Shooshani, along with additional damages, citing fraudulent inducement and...