Kategorie: Crypto News

• 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.

The post Tether challenges UN report on USDT’s use in illicit activity appeared first on CoinJournal.

• 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.

The post OKX secures VASP license from Dubai’s VARA appeared first on CoinJournal.

• Flare (FLR) price surged on Monday to reach highs last seen in June 2023.
• The gains after Flare announced Google Cloud had joined its network as an infrastructure provider.

The native token of EVM-based Layer 1 blockchain Flare (FLR) is surging after a major ecosystem development announced today, Monday January 15, 2024.

After trading at lows of $0.017 early in the day, FLR spiked double digits to hit highs of $0.023. The surge saw FLR reach prices last seen in early June, 2023. If the upside continues, buyers could target May 2023 resitance levels above $0.030.

The FLR token is a utility token used for payments, transaction fees and staking. The community can also delegate them to FTSO data providers as Wrapped FLR (WFLR). These can also be staked to allow for governance voting

Why is Flare price rising?

Today’s price increase for Flare (FLR) comes after the blockchain platform announced that cloud computing giant Google Cloud had joined its network as an infrastructure provider. Google Cloud is now among 100 Flare network infrastructure providers.

Per the announcement published on Monday, Google Cloud will act as a network validator as well as contributor to Flare’s native interoperability protocol – the Flare Time Series Oracle (FTSO). The integration will see Google Cloud propose and validate new blocks on the Flare blockchain, with this helping to secure the proof of stake platform’s network.

Hugo Philion, co-founder and CEO of Flare, said:

“As the blockchain for data, we are excited that Google Cloud is joining our existing decentralized network of infrastructure providers who contribute to Flare. Our work together will help deliver a more robust decentralized smart contract platform that places decentralized data at its core.”

As part of the collaboration, Flare has joined the Google for Startups Cloud Program, an initiative targeted at accelerating growth across the Web3 startups ecosystem. The program will offer financial and technical support to developers building on Flare.

FLR price was trading at $0.021 at the time of writing, about 24% up in the past 24 hours.

The post Flare (FLR) price jumps after Google Cloud integration appeared first on CoinJournal.

• A new proposal by Neon Foundation and Aave Chan Initiative outlines the deployment of Aave V3 on Neon EVM.
• The proposal is at the initial stage of community consideration and will proceed to a governance vote if sentiment is positive.

The Neon Foundation is seeking feedback from the Aave community over its proposal to deploy Aave V3 on Neon EVM mainnet. The proposal, also supported by Aave Chan Initiative (ACI), outlines the benefits of bringing Aave’s lending services to the EVM-compatible smart contract platform.

Neon EVM is built on Solana and allows for the scaling of Ethereum dApps on Solana.

“Temp check” for Aave V3 expansion to Neon EVM

According to Neon, the proposal is a “temperature check”. If a snapshot assessment shows supportive sentiment from the Aave community, this will proceed to the next step as an Aave Improvement Proposal (AIP). 

From here, a governance vote and potential adoption will see Aave V3 expand to the Solana-based platform as a minimal viable product (MVP).

“This proposal suggests deploying Aave V3 on Neon EVM Mainnet with limited deployment of initial assets and conservative risk parameters. This approach will enable Aave to strategically establish a presence in the Solana ecosystem while minimizing risk exposure,” the co-authors wrote.

Aave’s expansion to Neon EVM will enable access to an “unaddressed” group of users, add to network liquidity, and tap into Solana’s community and ecosystem.

Neon Foundation also notes that the integration could allow for further growth for the platform, including through capturing of share of the Solana DeFi ecosystem. This does not only have the potential to grow the network’s community and user base, but also increase its total value locked (TVL) and protocol revenue.

Neon highlights three collaterals in SOL, mSOL, jitoSOL. USDC is envisioned as a borrowable asset.

The post Neon Foundation proposes deployment of Aave V3 on Neon EVM appeared first on CoinJournal.

• Venezuela officially halts Petro crypto after six years, converting assets to bolivar.
• Petro faced scepticism and limited adoption.
• Corruption scandal and crackdown on Bitcoin mining contributed to Petro’s downfall.

Venezuela is officially discontinuing its controversial Petro cryptocurrency, a project initiated by President Nicolas Maduro six years ago to counter US sanctions. Despite initial ambitions, the Petro faced hurdles, scepticism, and a corruption scandal.

As crypto wallets on the Patria Platform, the sole trading platform for Petro shut down, the remaining assets will be converted to the bolivar. The demise of Petro comes amidst a crackdown on crypto mining and a challenging economic landscape in Venezuela.

A brief history of the Petro cryptocurrency

Launched with much fanfare in February 2018, the Petro cryptocurrency was backed by Venezuela’s substantial petrol reserves and priced at $60 per unit. President Maduro aimed to utilize Petro for new international financing avenues, intending to circumvent economic sanctions imposed by the US. However, citizens struggled with its use, risk rating agencies labelled it a “scam,” and adoption remained limited.

Despite efforts in 2020 to mandate its use for state services, such as passport fees and airline fuel payments, Petro found practical application mainly in limited state operations, including tax payments and traffic fines.

On the Patria Platform, where Petro was traded, users could convert the cryptocurrency to bolivars through an auction system. However, Petro’s credibility continued to wane, and its use remained confined.

Downfall and demise: Petro’s final blow

The Petro faced its ultimate setback with a corruption scandal surrounding irregularities in oil operations conducted using crypto assets. The scandal led to the resignation of Petroleum Minister Tareck El Aissami and the detention of officials, including those from the Sunacrip crypto regulator.

This development triggered a crackdown on Bitcoin mining operations in Venezuela, where cryptocurrencies had been popular as a hedge against hyperinflation and bolivar devaluation. A temporary ban on crypto mining, linked to a corruption scheme investigation, resulted in the arrest of around 80 individuals and impacted the industry Maduro aimed to promote.

In its wake, Venezuela is left grappling with the challenges posed by the discontinuation of Petro and the broader implications for its crypto landscape amidst economic uncertainties and sanctions.

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