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Bank of England’s governor warns crypto investors of losing all their money

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Despite witnessing significant growth, government officials across the globe continue to diss the crypto industry. Bank of England’s governor, Andrew Bailey was the latest to join this list.

While several governments have been trying to regulate the crypto industry, a few others were spreading fear amongst people by emphasizing the losses that one might endure due to investments in crypto. Even though the crypto-verse is volatile, institutional investors continue to pour money into the industry. However, the bank’s governor Bailey stressed the lack of intrinsic value that the crypto industry entailed.

Bank of England’s governor: “they have no intrinsic value”

Speaking at a recent conference, Bailey highlighted his stance on how people could lose it all if they continued to invest in crypto. The bank’s governor has been quite vocal about his disinterest in crypto. This time, he went on to suggest that cryptocurrencies had no intrinsic value.

He stated,

“They have no intrinsic value. That doesn’t mean to say people don’t put a value on them, because they can have extrinsic value. But they have no intrinsic value. I’m going to say this very bluntly again. Buy them only if you’re prepared to lose all your money.”

Bailey’s remarks seemed to have come right after the market cap as well the price of several cryptocurrencies were seen hitting new highs. At the time of writing, the overall market cap of the crypto industry was noted mounting to a high of $2.44 trillion. Additionally, the price of Bitcoin [BTC] was seen recovering from its recent downfall.

While Bailey outrightly suggested that people would lose their money if they invested in crypto, Elon Musk, the CEO of Tesla and a crypto lover recently advised people to cautiously invest in crypto. He went on to tweet,

“Cryptocurrency is promising, but please invest with caution!”

Previously, the tech billionaire had also urged people to refrain from investing all their life savings in crypto.

SEC’s new chairman discusses crypto appearing before the house financial services committee

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The Securities and Exchange Commission aka SEC of the United States recently welcomed its new chairman, Gary Gensler while bidding adieu to Jay Clayton. Speaking before the House Financial Services Committee for the first time, Gensler pointed out what Congress had to look into regulating the crypto industry.

The SEC has been making a lot of news, particularly over the last couple of months following its squabble with Ripple. While several regulators across the globe announced that XRP was not a security, the SEC was assertive about its stance on categorizing the altcoin as security. Additionally, with zero Bitcoin ETFs in America, the crypto community exerted utmost distress with the financial regulator. However, with the appointment of Gensler, the community was given the hope of better regulations with regard to the crypto-verse.

SEC’s Gary Gensler Intends To Uphold Investor Protection

The lack of regulatory clarity in the US has been pointed out by many. The recent hearing was focused on GameStop’s activities which further led to Rep. Patrick McHenry asking the Chairman about the regulatory environment of the cryptocurrency industry.

The latest Chairman of the financial regulator, however, urged Congress to regulate the crypto industry in his latest speech. But, Gensler was inclined towards “investor protection.” He added,

“It’d be good to consider whether to bring investor protection to the crypto exchanges. And I think if that were the case, because right now the exchanges’ trading in these crypto-assets do not have a regulatory framework, either at the SEC or our sister agency, the Commodity Futures Trading Commission that could instill greater confidence.”

Speaking at a virtual hearing, Gensler noted that there wasn’t any notable regulation surrounding cryptocurrency exchanges that facilitate the trading of crypto. This further meant that those interested in the buying and selling of crypto were prone to fraud or manipulation. However, the right kind of protection could limit the chances of users enduring any prominent losses.

Tiger King fame Carole Baskin ventures into the crypto industry with CAT coin

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Netflix’s Tiger King did turn a lot of head. While Joe Exotic remains in jail, several went on to roll out speculations pertaining to Carole Baskin’s missing husband. The owner of the Big Cat Rescue, Carol Baskin has once again made news after expressing interest in the crypto-verse.

The crypto market’s prospects have proved to be beneficial to many. An array of people across several industries have ventured into the industry. While some have made big and small investments, a few others have launched their own cryptocurrencies. Baskins jumped onto the crypto bandwagon with the launch of CAT.

Tiger King Star’s CAT Coin To Give DOGE A Run For Its Money?

The crypto industry is home to thousands of currencies. Baskin decided to add to this with the launch of the CAT Coin. Big Cat Rescue took to Twitter to reveal the same. The tweet read,

Additionally, in a blog post on the Big Cat Rescue’s website, Baskin’s noted that the CAT coin was more of a fan token for those interested in supporting the non-profit than an investment or currency. The CAT coin was reportedly rolled out on Ethereum’s open network Rally and gives users an array of things to look forward to. This includes conversations with Carole Baskin, discounts on merchandise as well as virtual visits with the cats.

Furthermore, NFTs had also caught the eye of Tiger King’s Baskin as she plans on releasing NFTs in two weeks. Addressing her sudden inclination towards crypto, Baskin asserted,

“I’m investigating cryptocurrencies because I am concerned about the volume of US dollars that are being printed and distributed with nothing to back them up. At this point, both the USD and BitCoin are fiat currencies, but at least BitCoin and other altcoins have scarcity built in, and now there is much more broad adoption of them in our everyday lives. I like the idea of putting the power of money in the hands of the people, rather than banks and governments.”

At press time, CAT was noted trading for $12.8. With about 123,600 coins in circulation, the asset has witnessed over 627 transactions. Baskin further added,

“Our new $CAT coin is not a currency for investment, but rather is a purr-ency of our fans to show their love for the cats and to reap the benefits of being our most forward-thinking partners in creating a world where all wild cats live free.”

Turkish Police Continue To Arrest More People In Thodex Crypto Exchange Case

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The Turkish government was seen dealing with an array of criminalities concerning the crypto-verse as it prepares to ban payments in crypto. However, the Turkish police did not fall back as they were quick enough to bag several suspects associated with the country’s most recent crypto fraud.

Last week, Thodex, a prominent cryptocurrency exchange in Turkey, suspended withdrawals for its users. This abrupt decision caused an immense commotion amongst its users. Right after this, the CEO of the platform, Faruk Fatih Özer, went missing which added to the unrest. Even though the CEO absconded, the police managed to detain over 83 people involved in the case.

Most recently, it was revealed that the officials had arrested about six individuals part of the case. This list included the siblings of the CEO who is still missing.

Turkish Authorities Bag Missing CEO’s Siblings

It was recently reported that six members were awaiting trial by the Turkish court. The CEO’s brother and sister Güven Özer and Serap Özer were also detained by the police as they reportedly had a huge role to play in the crypto exchange. Additionally, it was also noted that these members from the Özer family had notable crypto holdings.

The CEO’s sister Serap Özer, who also looked into the finances of the exchange, recorded transactions of about 120 million liras in her possession on the world’s largest cryptocurrency exchange, Binance. She outrightly shot down these claims and suggested that the account did not belong to her. The brother, Güven Özer did not have a major role in the platform but still held about 22 million Turkish liras.

Furthermore, Özer was seen boarding a flight to Albania from Istanbul which has caused Interpol to issue a red notice. Apart from Albania, Turkish authorities have sent out units to four other countries to look for the CEO. Speaking about the same, Interior Minister Suleyman Soylu said,

“When he is caught with the red notice, we have extradition agreements with a large part of these countries. God willing he will be caught and he will be returned.”

While this case has been taking different turns, the government of Turkey’s ban on crypto payments came into effect on Friday 30 April 2021.

Crypto Sees A Ray Of Hope As Uzbekistan Govt Agency Reconsiders Legalizing Crypto

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While several countries went on to ban cryptocurrencies amidst the recent rally, a few others seem to be lifting any sort of halt they had previously imposed on trading virtual assets. Uzbekistan was seen trying to join the latter.

Uzbekistan’s government banned the buying and trading of digital assets in 2019. This ban, however, was limited to only the purchase of cryptocurrency, as residents of the country could sell any assets they had in their possession. However, the country appeared to be contemplating its decision

Crypto Could Get Another Chance In Uzbekistan

Crypto was seen mentioned in a recent proposal by the National Agency for Project Management under the President of the Republic of Uzbekistan [NAFT]. The document urged the government to make changes to the existing laws on crypto in the country.

Over the last couple of months, the digital asset industry’s growth had undoubtedly lured individuals across the globe. As the market cap of the digital asset industry surpassed $2 trillion, several countries began viewing the prospects of the industry and started implementing crypto-friendly laws and a few others decided to tax the profits that their citizens acquired by trading digital assets.

In its latest proposal, NAFT suggested that the citizens of the country should be given the amenity of trading digital assets. The document further read,

“[..] all types of crypto exchange trades involving crypto assets and tokens in exchange for the national currency and the foreign currency.”

While a fully regulated exchange, Uznex is already functioning in the country, the citizens of Uzbekistan were exempted from using this platform. However, with its latest proposal, NAFT hopes to allow more platforms to carry out activities concerning the digital asset industry. Additionally, NAFT hopes to put into place processes for the registration of these platforms and the issuance of any tokens and circulation.

The time frame for any discussion pertaining to the aforementioned amendments is open until 14 May 2021.

IOHK To Formulate A New Mobile Network In Tanzania

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Blockchain technology is growing at an unstoppable pace. Ethiopia and Tanzania seemed to be making use of this technology with the help of IOHK.

The underlying technology that cryptocurrencies have been employing over the years has proved to be widely beneficial. Blockchain technology has found a place in several industries across the globe. Now, Input Output Hong Kong [IOHK] seemed to be taking this technology to an African country in order to renew its education system.

IOHK Partners With World Mobile

In the recent Cardano Africa 2021 event, it was revealed that IOHK would be taking 5G to Tanzania with the prominent platform World Mobile, which works on blockchain tech. This partnership would reportedly give rise to a mobile network that would offer stable internet to those living in the African region.

IOHK Intends To Transform Ethiopia’s Education System

It was recently revealed that IOHK would be using blockchain tech to formulate a system that would entail a national teacher as well as student ID. With this system, teachers would reportedly be able to verify grades as well as keep an eye on the performance of the students digitally. This system will reportedly be put in place to bolster the education and employment rate across the country.

IOHK’s African Operations unit is currently being spearheaded by its director, John O’Connor. He revealed that the platform has spent about five years on research and development. This further allowed them to notice that Cardano was “mature enough” to employ a blockchain solution that had the ability to render to an entire nation. He added,

“Ethiopia’s blockchain-based education transformation is a key milestone on IOHK’s mission to provide economic identities and employment, social and financial services for the digitally excluded.”

With IOHK’s Atala PRISM ID, officials would be able to roll out the academic performance of over five million students from 3,500 schools in the country. This system would reportedly be a “tamper-proof” one.

Additionally, the country’s Education Minister Getahun Mekuria pointed out that his expectations with regard to the IOHK’s blockchain tech were high as it would end “digital exclusion”. He added,

“Ethiopia’s Sheba Valley is already recognized as the leading AI hub in Africa, 70 percent of our university graduates are in STEM subjects and we are now leading the way in using blockchain to digitalize education. This forms a key plank of our National Digital Transformation Strategy and will underpin a uniquely transparent, data-driven education system based on a dynamic curriculum.”

VanEck’s Bitcoin ETF Plea Verdict Postponed To June

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The Securities and Exchange Commission’s constant delay in the approval or disapproval of VanEck’s Bitcoin Exchange Traded Fund [ETF] has left the community in distress.

While several other countries like Canada have started to enjoy the potentials of a crypto ETF, those living in the United States of America have been deprived of this feature. With no Bitcoin ETF being approved as of yet in the country, the citizens of America have lost the hope of a crypto ETF. However, the recent change in SEC’s leadership from Jay Clayton to Gary Gensler got the community excited. But the latest news from the financial watchdog wasn’t very crypto-friendly.

VanEck’s Bitcoin ETF Still On Hold

A recent filing from the SEC revealed that VanEck’s Bitcoin ETF verdict was further pushed to 17 June 2021 from 3 May 2021. While the SEC has the option of extending this sort of window before delivering a decision by 45, 60, or 90 days, the financial agency delayed VanEck’s approval or disapproval by 45 days.

Elaborating on the same, the Assistant Secretary of the SEC, J. Matthew DeLesDernier wrote in the filling,

“The Commission finds that it is appropriate to designate a longer period within which to take action on the proposed rule change so that it has sufficient time to consider the proposed rule change and the comments received.”

Several platforms have applied for the approval of a Bitcoin ETF in the country, but none have received a positive response. VanEck reportedly submitted all of the necessary paperwork for the Bitcoin ETF application back in January. This application was done in collaboration with SolidX, a well-known blockchain platform.

Additionally, many were on cloud nine after Gary Gensler was appointed as the Chairman of the SEC. This, however, seemed to have no impact on the approval of Bitcoin ETFs as they continue to be shot down.

South Korean Govt Certain About Taxing Crypto In 2022

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Governments across the globe started taxing crypto ever since they began seeing people garner profits by trading crypto. South Korea joined the list.

South Korea had time and again revealed its interest in crypto. The country is not only famous for its booming pop culture but also its inclination towards cryptocurrencies. Therefore, the government of the Asian country decided to levy a tax on trading a wide range of digital assets.

South Korea’s Tax On Crypto “Inevitable”

Back in February, the South Korean government affirmed that it would be taxing cryptocurrencies. The Ministry of Economy and Finance of the country revealed that all the profits made by trading cryptocurrencies would be subject to a 20% tax. However, the range of profits incurred while trading assets like Bitcoin [BTC] was limited to gains over 2.5 million won or $2,300. Those whose profits fall below these numbers are reportedly exempted from this tax.

While the taxing of crypto was scheduled to start off from 2022, the country’s finance minister, Hong Nam-ki went on to affirm the same, Reuters reported. Speaking at a news conference, the finance minister of the country, Hong Nam-ki was urged to delay this as the government needed a better rendering of the crypto-verse. But the finance minister asserted that taxing cryptocurrencies were “inevitable.” He added,

“It’s inevitable, we will need to impose taxes on gains from trading of virtual assets.”

The sudden emergence of cryptocurrencies has left the world in a frenzy. While some countries are preparing for the accommodation of these assets, a few others have outrightly started to ban cryptocurrencies.

Furthermore, governments have had a hard time categorizing cryptocurrencies. While some have put these assets under commodities a few others have labeled them securities. Hong Nam-ki, however, suggested that cryptocurrencies were “intangible assets” and not currencies. He even added that calling them currencies would be a “misunderstanding.”

Additionally, the country was seen taking impeccable precautions to dodge any possible scams against those using crypto. Earlier in March, the government announced that any crypto platforms that failed to have strong anti-money laundering processes in place would be subject to heavy fines.

Nigeria’s Popular Hotel Makes Room For Bitcoin [BTC]

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While some countries, like Turkey, are enacting laws to curb the use of Bitcoin [BTC] for payment, others, like Nigeria,  seem to be embracing the king coin.

Bitcoin has undoubtedly gone places over the last couple of months. The cryptocurrencies landed a spot in an array of prominent platforms across the globe. From Miami’s nightclub to Nigeria’s luxury hotel, Bitcoin is undoubtedly on a roll while its price figures out the road to recovery from its recent downfall.

Nigeria’s luxury hotel, George Residence had jumped onto the Bitcoin bandwagon by accepting the king coin for payments.

Nigeria Continues To Embrace BTC

As per a local news portal, the CEO of George Residence, Yanju George had announced its support for BTC by accepting it as payment. This would reportedly make the hotel the first in the country that accepts Bitcoin. The hotel in Lagos, Nigeria is all set to receive payments in BTC starting this weekend.

Furthermore, Africa’s prominent crypto brokerage platform, Coinvest Africa would aid the hotel in accepting BTC payments.

The inflation issue in Nigeria is no news to anyone. Keeping in mind the country’s inflation rate, the CEO of George Residence revealed that the hotel intended to support BTC and make the cryptocurrency its “primary reserve asset” in order to hedge against the fiat inflation in the region. Elaborating on the same, George added,

‘‘We have allocated around 50% of our cash reserves to Bitcoin…We hope to increase that as time goes on. Bitcoin is the currency of the future and it is only right that we are strongly positioned so we do not get left behind.”

While BTC is currently priced at $54,566, the CEO pointed out that the hotel expects to provide the guests a “faster and more secure way to enjoy” the comfort that George Residence grants.

Even though rumors pertaining to the ban of crypto in the country had surfaced in the past, the governor of the Central Bank of Nigeria [CBN] affirmed that the country would embrace crypto as Nigerians had to be prepared for the “seismic shift, and it may come sooner than later.”

Ethereum’s Vitalik Buterin Donates Over $600K To India’s COVID-19 Relief Campaign

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India continued to reel under the severe second wave of COVID-19 that has crippled the already crumbling health sector of the country. In the wake of massive resource-starved conditions brought upon by public laxity and government negligence, social media platforms have become helplines and saviors to the ones in need.

The cryptocurrency community is doing its bit to provide necessary aid to the country. Sandeep Nailwal, the Co-founder and Chief Operations Officer of Polygon had announced a COVID-19 relief fund and asked the global crypto community to help. Nailwal asserted that he would take full responsibility for transparency, funds usage, and regulatory compliance.

Nailwal plans to pour the funds collected to purchase oxygen, food, and even cover the cost of vaccines for poor people in the country.

The multisig address to donate in ETH/ERC20 to this address: 0x68A99f89E475a078645f4BAC491360aFe255Dff1

At press time, around $154 ETH has been deposited to the address.

Weighing down upon the lack of regulatory clarity around the space in India, the exec noted,

“I already got a few people pinging me that Regulatory things would be tough on this, it’s not easy to give money, even for social causes. My Answer “Our Hows should not affect our Why”. Whatever happens we will handle it, lets not let it stop us from doing what is right.”

Indian crypto market scene is worth billions of dollars, but these digital assets cannot be used to directly fund relief efforts as they’re not widely accepted as fiat. To overcome this barrier, the Polygon COO urged Indian crypto exchanges such as WazirXIndia, CoinDCX, and Bitbns to help convert the COVID donations into fiat currency.

COVID Donations From Ethereum Community

One of the many to donate was Ethereum Co-founder Vitalik Buterin who reportedly donated more than $600k India Covid Relief Campaign. Buterin posted the transfer receipts of 100 ETH and 100 MKR, worth roughly $606,110 for use in relief in the country.

Ethereum Foundation’s Hudson James also donated 138,000 MATIC [approximately $49K]. Indian-origin technology investor and entrepreneur Balaji Srinivasan vouched for the Polygon exec and revealed his intentions to donate.