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Cryptocurrency Weekly News Roundup (Sun 03th – Sun 10th June)

Ripple in Lawsuit for Alleged Sale of Unregistered Securities

In May, investor Ryan Coffey filed a class action lawsuit against fintech company Ripple Labs. According to Law.com, the investor claims that he has lost $555.89 trading on Ripple's XRP tokens. He also claims that Ripple benefitted from the increase in the cryptocurrency's price at the expense of investors, since Ripple maintains a centralized XRP ledger.

Coffey is willing to rescind for over $300 million in XRP purchases, as well as setting up a trust to oversee the proceeds of Ripple's alleged sales of digital currency.

Debevoise & Plimpton's Mary Jo White and Andrew Ceresney have been employed to represent Ripple Labs in the lawsuit. Interestingly, Mary Jo was previously the chair at the US Securities and Exchange Commission (SEC).

Ripple's spokesperson commenting on the lawsuit stated that "we continue to believe XRP should not be classified as a security… We feel confident that the claims regarding XRP are completely unfounded both in law and fact."

If Ripple XRP token becomes classified as a security, then the existence of the cryptocurrency and their business model may be threatened.

Binance Joins Forces with Blockchain-Based chiliZ

World's largest cryptocurrency exchange, Binance has invested in blockchain-based esports platform, chiliZ.

According to a press release dated June 5, Binance has contributed an undisclosed amount to the Malta-based platform, chiliZ. chiliZ is part of a global sports and entertainment company, Mediarex Group. And both companies will be joining forces to provide "fan-driven token ecosystem for traditional sports teams."

It is worth noting that chiliZ has already raised $27 million in an ongoing private placement. The company claims that Binance's involvement will help facilitate and "enable the sharing of technical knowledge, innovation and creativity".

PBoC to Digitalize Paper Checks

The People's Bank of China (PBoC) has ironed out plans to introduce a blockchain-powered framework for digitalizing paper checks. Local news media, Financial News on covering the announcement stated that the framework will target financial fraud, as well as lower the costs of printing checks.

An official of the bank, Di Gang revealed that the platform has been under development for a year. He added that paper checks will be tokenized and all operations will be conducted using smart contracts. By doing this, it is expected that current system will become more transparent and less prone to fraud.

Japan's FSA Turns Down Crypto Exchange License

The Financial Services Agency of Japan (FSA) has stopped a crypto exchange from receiving an operating license. This is the first time the agency is turning down the application of a crypto exchange.

The crypto exchange, FSHO which is based in Yokohama has already been suspended twice by the FSA this year, over issues bothering KYC and AML, Nikkei Asian Review reports. This time around, The FSA has come to a conclusion that FSHO does not have the necessary infrastructure to operate an exchange in the country.

Since Coinchecks hack earlier this year, the FSA has rolled out stricter measures and policies for crypto exchanges to follow.

Coinbase to Become SEC-Regulated Broker Dealer by Acquisition

Top US cryptocurrency trading platform, Coinbase, has taken steps towards becoming a fully regulated broker approved by the US Securities and Exchange Commission (SEC). According to an announcement on the platform's blog, Coinbase has bought securities dealer, Keystone Capital Corp. This is an addition to Venovate Marketplace, Inc., and Digital Wealth LLC.

The acquisition could see Coinbase expand their product offerings, even into non-crypto financial products. The company looks forward to working with regulators to tokenize existing securities, an action they believe will democratize access to capital markets. The CEO and President of the exchange, Asiff Hirji, commented that:

"If approved, Coinbase will soon be capable of offering blockchain-based securities, under the oversight of the US Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA). This step forward is being made possible by our acquisition of a broker-dealer license."

World's First Crypto Art Sale

Blockchain technology has been applied to in the art market to tackling issues bothering around provenance, copyright, ownership, and authenticity of a piece. This time, blockchain is being employed in the world's first cryptocurrency auction, which is set to happen on the 20th of June, at UK's fine art gallery Dadiani Syndicate.

Maecenas which is a blockchain platform announce the art sales on June 7. The sale involves fractional ownership of Andy Warhol's 14 Small Electric Chairs, estimated at $5.6 million. The sale will let of 49 percent ownership interest in the painting and will allow participants to purchase digital certificates using Maecenas ART token, as well as Bitcoin (BTC) and Ethereum (ETH).

The platform went further to note that all participants must comply to KYC and AML checks. Also, the reserve price for the painting is set at $4 million, even though a smart contract run on the Ethereum blockchain will determine the final price for the painting.

How Much Cryptos Has Been Lost to Hackers This Year?

A cybersecurity company, Carbon Black has revealed that over $1 billion worth of cryptocurrencies has been stolen just this year.

As reported by CNBC, the security company noted that criminals are exploiting the dark web to facilitate large-scale transfers and theft. They estimated about 12,000 marketplaces and 34,000 offerings linked to crypto theft hackers.

The Security strategist, Rick McElroy, told CNBC that a basic malware costs about $220 and can go for as low as $1.04. This malware can come in form of customer support.

Cryptocurrencies Are Now Commodities on Indonesia's Stock Exchange

Cryptocurrencies have now become legally tradable commodities on a stock exchange in Indonesia. The Indonesian Trade Ministry's Futures Exchange Supervisory Board (Bappebti) signed this into a decree this June.

Local news media, The Jakarta Post reports that this development is coming after a four-month study into cryptocurrencies. An official of the bureau added that the Indonesian government will also release legislation on regulating crypto exchanges, collecting taxes, as well as money laundering and terrorism financing.


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Disclaimer: The information contained herein is not intended to be a source of advice and the information and/or documents contained in this website do not constitute investment advice.

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