Author: Bloomberg
If you follow the world of cryptocurrency even casually, you know it produces a constant supply of jargon. There’s NFT, dapp, DeFi, and tokenomics, to name a few. Brace yourself for a new one: Web3. The idea is that crypto isn’t just for sending money or speculating with, but could be used to build a whole new web. If the believers are right, this is one bit of cryptospeak worth getting familiar with, even if you never touch Bitcoin. Of course, the software behind the internet is changing all the time. What makes Web3 different—and more than a little weird—is that…
One of cryptocurrency’s spiritual forebears, Timothy C. May, predicted in the 1990s that untraceable digital cash would allow online casinos, bank secrecy and money laundering to flourish. Although laws would be dodged, he said, the individual anonymity and freedom would be worth it — at least, until the inevitable government backlash. This cycle is playing out almost three decades later, as regulators take a fresh crack at the $2.4 trillion crypto sector that’s ballooned largely out of their reach. Crypto executives were grilled by U.S. lawmakers on Wednesday after a series of probes and fines into trading platforms amid a post-Covid digital gold rush. The bosses acknowledged the need for more oversight but warned that draconian rules would…
The horde of rambunctious individual investors across Reddit, Stocktwits and Twitter are thrilled with a sense of vindication. They’ve long demanded that authorities rein in hedge funds — who they see as part of the Wall Street establishment that bets against companies in a greedy pursuit of profits. Their voices have especially grown louder in the wake of the trading frenzy over meme-stocks such as GameStop Corp. and AMC Entertainment Holdings Inc. this year. Now, finally, they believe their words are being heeded. The U.S. Justice Department is said to have launched an expansive criminal investigation into short selling by hedge funds and research firms,…
Decentralized finance platform BadgerDAO said a flaw in the account creation process of the software company Cloudflare Inc. led to the theft of $130 million in cryptocurrencies earlier this month. BadgerDAO detailed how the hack took place in a blog post on Thursday, saying a phishing attack that occurred on Dec. 2 was a result of “maliciously injected snippet provided” by Cloudflare Workers, a serverless application platform that runs on its cloud network. The post, which was prepared by BadgerDAO and cybersecurity firm Mandiant Corp., said the Cloudflare flaw had been since been remediated. BadgerDAO hired Mandiant and blockchain forensic analysis firm Chainalysis Inc. to investigate the breach,…
Bitcoin remains on pace for its fourth consecutive weekly decline after a brief bounce triggered by a report showing U.S. inflation accelerated failed to unwind the negative sentiment that has recently gripped digital-asset markets. The largest cryptocurrency by market value has long been touted as an inflation hedge, in part because of its fixed supply. Bitcoin turned lower after initially rising as much as 4.4% to $50,101 in New York trading on Friday. The coin has been bouncing around the $50,000 level since a weekend flash crash that saw it tumble as much as 21% on Saturday. “This is an…
Crypto-assets show no signs of benefiting society or the wider economy, European Central Bank Executive Board member Fabio Panetta said. While advocates frequently hail their ability to serve the unbanked segment of the population or strip out third parties, the ECB official argued “there is no sign that crypto-assets have performed, or are performing, socially or economically useful functions.” “They are not generally used for retail or wholesale payments, they do not fund consumption or investment, and they play no part in combating climate change,” Panetta said at a lecture in Rome. Central banks and regulators across the world are…
A minister in Nigeria, where cryptocurrencies are largely banned, is calling for regulation that promotes opportunities from the wider use of the digital technology rather than clamp down on it. Clem Agba, minister of state for budget and national planning, said uncertainty in regulating cryptocurrencies risks denying government and citizens the chance to maximize opportunities from the technology. Agba’s comments come after Central Bank of Nigeria in February ordered commercial banks to stop transactions or operations in cryptocurrencies, citing a threat to the financial system which it regulates. Meanwhile, the Securities and Exchange Commission, which views cryptocurrencies as exchangeable securities, said it’s seeking clarity…
South Africa’s financial regulator is planning to unveil a regulatory framework covering cryptocurrencies early next year to help protect vulnerable members of the society from highly risky assets. The rules, designed in concert with peers like the prudential authority and the financial surveillance board, will establish how trading in coins such as Ethereum, XRP and Litecoin should be conducted, FSCA Commissioner Unathi Kamlana said in an interview on Friday. Other issues to be examined include how the currencies interact with traditional financial products, the risks they pertain to bank balance sheets, and whether they threaten fiscal stability. “What we want…
Binance Holdings Ltd. is in talks with Indonesia’s richest family, the Hartonos, and a state-owned telecom operator to set up a cryptocurrency trading exchange, according to people with knowledge of the matter. The world’s largest crypto exchange has been in discussions with PT Bank Central Asia, controlled by sibling billionaires Budi and Michael Hartono, and PT Telkom Indonesia on the venture, the people said, asking not to be named because the matter is private. A partnership between Binance, BCA and the country’s largest telecom operator would spur wider adoption of cryptocurrencies in Indonesia, the world’s fourth most-populous nation, where many adults have little…
Bitcoin declined for the first time in five trading sessions, with losses accelerating after it failed to sustain the positive momentum seen following this past weekend’s flash crash. The largest digital token slipped below the $50,000 level, with losses extending in afternoon trading in New York. Bitcoin was down 6% to $47,602 as of 4:06 p.m., while other digital assets also dropped. Smaller ones, including Monero and EOS, were among the hardest-hit. And on a technical basis, Bitcoin is seen by some analysts as being caught in a no man’s land between different moving averages. The coin might be forming…