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$2B in dormant Bitcoin (BTC) moved after 5 years: Arkham

  • According to Arkham Intelligence, $2 billion in dormant Bitcoin (BTC) has moved for the first time in five years.
  • What next for Bitcoin as Grayscale also moves 9,000 BTC to a crypto exchange?

Arkham Intelligence has reported the movement of $2 billion worth of dormant Bitcoin (BTC) – also just before the US markets opened today. It’s the first time these coins have moved since 2019.

“$2 BILLION of dormant Bitcoin moved just before the US market opened today, across several linked addresses. The BTC had moved once in 2019, and before that had been dormant since 2013. Historically these Bitcoins have all moved at the same times and dates. They were consolidated today from 49 addresses into 5 new addresses, each now holding between 8K-12K BTC ($380M-$480M per address),” the blockchain security and market intelligence platform posted on X.

Arkham’s report came as BTC battled sell pressure amid the latest movement of Bitcoin linked to Grayscale, the company behind the Bitcoin Trust (GBTC) fund. Grayscale reportedly moved 9,000 BTC worth over $385 million on Tuesday.

The company’s BTC transfers occurred in several batches of 1,000 coins each and totaled over $385 million. Blockchain sleuth Lookonchain noted that Grayscale sent the Coins to Coinbase Prime.

Last week, wallets linked to Grayscale transferred 4K bitcoins to the exchange, per data Lookonchain shared on Friday January 12. These BTC movements have come as outflows from GBTC hit the market following the SEC’s approval of spot Bitcoin ETFs. 

Bitcoin price was poised at $43,071 early afternoon. Are these BTC movements set to inject new sell pressure on the benchmark crypto?

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EU banking watchdog strengthens AML measures for crypto firms

  • EBA extends AML guidelines to CASPs, addressing ML/TF risks in crypto transactions.
  • Guidelines provide risk factors and mitigating measures, urging blockchain analytics use.
  • Interconnected financial sector necessitates guidance for institutions dealing with CASPs.

In a momentous move to combat financial crimes, the European Banking Authority (EBA) has extended its Guidelines on money laundering (ML) and terrorist financing (TF) risk factors to encompass crypto-asset service providers (CASPs).

The new guidelines, effective from December 30, 2024, aim to harmonize anti-money laundering (AML) and countering the financing of terrorism (CFT) efforts across the European Union (EU).

EBA guidance for crypto-asset service providers

The EBA’s latest directive emphasizes the growing risks associated with crypto transactions, underscoring the potential for abuse in terms of money laundering and terrorist financing. CASPs, involved in crypto-asset transfers, face heightened risks due to factors like transaction speed and features that may conceal user identities.

To address these risks, the EBA’s Guidelines provide a comprehensive list of risk factors, guiding CASPs in identifying vulnerabilities in their customer base, products, delivery channels, and geographical locations.

To effectively manage these risks, CASPs are encouraged to adopt mitigating measures, including the use of blockchain analytics tools. The EBA’s approach acknowledges the interconnected nature of the financial sector, extending guidance to other credit and financial institutions with CASPs as customers or exposure to crypto assets. This additional layer of oversight becomes crucial, especially when engaging with non-authorized crypto-asset service providers.

EU’s broader regulatory framework

The EBA’s extension of the ML/TF Risk Factors Guidelines aligns with the EU’s broader regulatory framework, emphasizing a risk-based approach to AML/CFT. The regulatory landscape includes the Markets in Crypto Assets (MiCA) legislation, the Financial Action Task Force (FATF) recommendations, and directives such as (EU) 2015/849 and (EU) 2023/1113.

The guidelines mandate competent authorities to report compliance within two months after translations are published in official EU languages. These initiatives reflect the EU’s commitment to addressing money laundering and terrorist financing risks in the crypto sector, ensuring alignment with international standards.

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Chainlink and Circle join forces for seamless cross-chain USDC transactions

  • Chainlink integrates Circle’s CCTP into CCIP, enhancing USDC for cross-chain DeFi transactions.
  • Developers gain tools for secure USDC transfers with CCTP’s permissionless on-chain utility.
  • CCIP’s advanced risk management features bolster security in decentralized applications.

In a groundbreaking collaboration, decentralized oracle network Chainlink has partnered with Circle to integrate Circle’s Cross-Chain Transfer Protocol (CCTP) into Chainlink’s Cross-Chain Interoperability Protocol (CCIP).

This integration is set to revolutionize how developers build and execute cross-chain transactions involving USDC, a stablecoin gaining prominence in decentralized finance (DeFi).

Unlocking cross-chain potential with CCIP and CCTP

Chainlink and Circle united to enhance the capabilities of USDC for cross-chain transactions, providing developers with powerful tools to build secure applications. With the integration of CCTP into CCIP, the duo opens up new dimensions for decentralized applications (dApps) that require seamless USDC transfers across multiple blockchain networks.

Developers within Chainlink’s extensive blockchain ecosystem now have the means to leverage the advanced risk management features of CCIP. Sergey Nazarov, Co-Founder of Chainlink, expressed his enthusiasm for the role CCIP will play in meeting user requirements for secure and efficient USDC transactions.

Secure and capital-efficient cross-chain transfers

CCTP’s permissionless on-chain utility is a key feature, empowering developers to offer users a secure and capital-efficient method for transferring USDC across diverse blockchain networks. The emphasis on defence-in-depth security infrastructure, including the Risk Management Network and level-5 security measures, addresses the industry’s past challenges related to insecure cross-chain operations.

This integration comes at a crucial time, where decentralized finance (DeFi) is gaining momentum, and interoperability across blockchain networks is becoming increasingly vital. Chainlink and Circle’s partnership represents a significant step towards addressing these industry needs, providing developers with the tools to create applications that facilitate smooth and secure USDC transactions across chains.

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Tether challenges UN report on USDT’s use in illicit activity

  • Tether says the UN report and analysis ignored the fact that USDT is traceable on the blockchain.
  • CEO Paolo Ardoino says the stablecoin issuer will continue to collaborate with law enforcement and other parties, including the UN.

Tether has responded to a United Nations report that identified the USDT stablecoin as widely used in money laundering, organised crime and other illicit activity in the Southeast Asia region.

The crypto company, whose USDT is the world’s largest stablecoin at $95 billion today, says its “disappointed in the UN’s assessment.”

“We are disappointed in the UN’s assessment that singles out USDT highlighting its involvement in illicit activity while ignoring its role in helping developing economies in emerging markets, completely neglected by the global financial world simply because servicing such communities would be unprofitable for them,” Tether wrote in a blog post published January 15.

Tether says UN report ignores traceability of USDT

The UN warned in a report published Monday that Tether had become the most prominent vehicle for illegal transactions, particularly through unregistered online gambling platforms. 

According to a report by the Financial Times, the UN also identified USDT’s role in underground romantic scams dubbed “pig butchering.”

In November last year, the US Department of Justice seized $9 million worth of USDT linked to a pig butchering scheme. Tether had earlier announced it froze $225 million in USDT, with the funds linked to a human trafficking ring in the SEA region.

In its response to the UN report, the company has reiterated its collaboration with law enforcement and also stated that Tether transactions are traceable on the blockchain, making it an ‘impractical choice for illicit activities.”

“The UN’s analysis ignores the traceability of Tether tokens and the proven record Tether has of collaborating with law enforcement. Rather than focusing solely on risks the UN should also discuss how centralized stablecoins can improve anti-financial crime efforts,” the stablecoin issuer added.

In a comment posted on X, Tether CEO Paolo Ardoino said there’s need for blockchain education at all levels. The firm also welcomes further collaboration, including with the UN, he noted.

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OKX secures VASP license from Dubai’s VARA

  • The VASP license remains non-operational until OKX fulfills specific conditions.
  • However, once granted, it will allow OKX to offer virtual assets exchange services to institutional and qualified retail customers.

Crypto exchange OKX has announced that its subsidiary, OKX Middle East Fintech FZE, has received the Virtual Asset Service Provider (VASP) license from Dubai’s Virtual Assets Regulatory Authority (VARA).

The VASP license will allow OKX Middle East to offer its regulated virtual assets services and products, including spot trading pairs to qualified customers, the company said in a press release.

 “This license was a crucial step for OKX as we move from a trust-based system to one that is trustless and empowers users to take control of their financial future. Dubai is an important market for us, and we’re excited to build strong relationships with our users and contribute to the development of its crypto and Web3 ecosystem,” OKX global head of government relations, Tim Byun noted.

VASP license currently non-operational

According to OKX, the license is currently non-operational as the exchange looks to fully satisfy “all remaining conditions and select localisation requirements defined by VARA.” Once it meets the re-verification and approval requirements, it will commence its operations.

“This license is a game-changer. Once operational approval has been received, the VASP Licence will allow OKX Middle East to offer regulated virtual asset exchange services activities including spot and fiat trading services, AED deposits and withdrawals, and spot trading-pairs. These services will be available to retail and institutional users in-market via the OKX App and OKX.com Exchange,” said Rifad Mahasneh, General Manager at OKX MENA.

OKX’s expansion efforts have included application for registration as a Digital Asset Service Provider (DASP) in France and plans for an office in Türkiye. 

The exchange also recently appointed Guilherme Sacamone as the General Manager for OKX in Brazil.

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