Author: Bloomberg
Tether, the crypto stablecoin that’s been under scrutiny from regulators, appears to be turning a blind eye to pleas by the Ukrainian government to stop all transactions with Russians. Ukraine Vice Prime Minister Mykhailo Fedorov, in a Tweet sent Friday, asked Tether and its chief technology officer and public face, Paolo Ardoino, to stop all transactions with Russians. Fedorov had previously issued such pleas to a slew of Western companies, ranging from software giant SAP SE to chipmaker Intel Corp. At the beginning of the war, Fedorov also asked all major crypto exchanges to stop supporting Russian users. His latest appeal appears to be…
Bitcoin is known for its perpetual ebbs and flows. But, even after an eventful past few days, the original cryptocurrency is finishing the week practically in the same place it started. As of 12 p.m. in New York, the price of Bitcoin was just under $39,000, right around where it closed out last Friday. Bullish developments on the regulation front in the U.S. were outweighed this week by a new 40-year high on inflation, and continued geopolitical tension with Russia’s invasion of Ukraine. These market stresses, coupled with costly commodity prices, are likely the reason why Bitcoin has been making…
The founder of a Russia-rooted blockchain project has revealed his Ukrainian background, after the price of his project’s token went parabolic — partly thanks to its association with Russia. In a volatile crypto market whipsawed by geopolitical tension, Waves, the native token of the Waves blockchain, has jumped by more than 170% in the past two weeks. Valued at more than $2.7 billion, the token is now the 51th largest cryptocurrency by market value, according to data on CoinGecko. Waves is best known as a public blockchain with strong links to Russian entities such as state-owned manufacturing giant Rostec and private bank Alfa-Bank after collaborations with…
Revolut Ltd.’s Chief Revenue Officer Alan Chang is leaving the U.K. financial technology startup for a new crypto-currency venture and is seeking to raise roughly $100 million in financing. Chang is seeking to raise the new funds in exchange for future access to tokens, according to people familiar with the matter, who asked for anonymity because the matter is private. He has already invested millions of dollars himself, one of the people said. “After almost 7 years, Alan Chang will be leaving Revolut,” a spokesperson for the firm said. “We wish him every success in his new venture.” Chang didn’t…
Fir Tree Capital Management is making a substantial short wager on Tether, the stablecoin that’s under intense scrutiny from regulators. The $4 billion hedge fund, founded by Jeff Tannenbaum, constructed a way to short Tether in an asymmetric trade, meaning the downside risk is small and potential to make money is great, according to clients of the firm. That’s a feat that other firms have struggled to figure out. Tether is the largest stablecoin, cryptocurrencies whose value is pegged to fiat currencies such as the U.S. dollar. The purpose is to avoid the wild volatility that plagues Bitcoin and other…
Jamaica plans to give $16 of free money to the first 100,000 citizens who use its soon-to-be-launched Jam-Dex digital currency. In a Facebook post Thursday, Prime Minister Andrew Holness said those who activate digital wallets after the currency goes live will receive an “incentive” of 2,500 Jamaican dollars. Caribbean nations have emerged as leaders in issuing central bank digital currencies, or CBDCs. Unlike Bitcoin, Dogecoin and other popular cryptocurrencies, CBDCs are digital versions of a nation’s fiat currency. Bahamas launched the world’s first CBDC, the Sand Dollar, in October 2020. The Eastern Caribbean Central Bank launched DCash in March 2021. But adoption…
India’s dithering on whether to embrace digital assets is causing thousands of developers, investors and entrepreneurs to leave for places with more friendly regulation, according to the co-founder of the country’s most famous crypto startup. “The brain drain is absolutely crazy,” Sandeep Nailwal, whose Polygon operates the biggest so-called Layer 2 protocol for the Ethereum blockchain system, said in an interview from Dubai. India, with an estimated 15 million active crypto users, has been stuck in regulatory limbo since the Supreme Court in 2020 overturned a central bank ban on digital tokens. The government this year unveiled a tax on…
One of the founders of Tornado Cash, among the most popular services to obfuscate cryptocurrency transactions, said it doesn’t need to comply with sanctions being imposed in the wake of Russia’s attack on Ukraine. Designed to preserve privacy, the protocol does this by breaking the link between the sender and receiver’s addresses on transactions sent over the Ethereum blockchain. The project is smart contract-based, meaning that decisions are made by pre-written software programs instead of individuals. It also doesn’t provide any custodian services or have a centralized host for its website. Individuals can access Tornado Cash by using the Ethereum Name Service,…
Crypto had already been seeping into every corner of culture and conversation. Then came Russia’s invasion of Ukraine, and crypto went to war, too. The sector’s involvement in the war has showcased the development and maturity of digital assets while reviving — without resolving — the debate about their role in the global financial system. As Russia invaded Ukraine, the world participated real-time in the financing of a standing army with cryptocurrency donations that funded military supplies for Ukraine. Digital currencies lived up to their reputation for easily moving money across international borders but simultaneously set off a debate about whether they can be…
Crypto trading giant FTX’s U.S. unit wants to begin clearing leveraged derivatives trades for mom-and-pop investors. The exchange doesn’t use intermediary brokerages as most firms do to limit the impact from any possible defaults. Now, FTX’s LedgerX, the division that’s registered with the U.S. Commodity Futures Trading Commission, is seeking permission from the regulator to apply its “non-intermediated” clearing model to retail trading in margined products. The CFTC is seeking public comment on the plan until April 11. FTX’s plan for clearing trades represents a departure from how a majority of firms registered with the agency handle the transactions. Those companies use…