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BNY Mellon Has A strong Say On Digital Assets

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BNY Mellon started offering its customers cryptocurrency custody services in October 2022. Companies and organisations seek to acquire digital assets as the world learns more about cryptocurrencies and the market grows.

The demand for cryptocurrency services and alternative investment options is rising globally. Banks must instead provide customers a safe and regulated way to engage in the offer rather than simply ignoring it.

Banks all across the world are attempting to investigate cryptocurrencies. A lot of businesses have already jumped in by offering cryptocurrency custody services. The Bank of New York Mellon has announced that it is now accepting applications for cryptocurrency custody services.

According to the Bank of New York Mellon, it will start accepting cryptocurrency from customers on Tuesday. As a result, BNY Mellon will be the first significant US bank to offer both regular banking services and complementary digital asset protection.

Earlier this year, the New York banking regulator gave the bank its clearance. This week, the bank can start taking Bitcoin and Ethereum. The digital asset key will be stored by BNY Mellon, which will also offer bookkeeping services like to those offered for stocks and commodities.

The move marks a crucial turning point in traditional banks’ acceptance of digital assets as a real market and a source of new income.

BNY Mellon: Digital Assets “Here To Stay”

Now the US banking giant has taken a stronger stand regarding digital assets.

The head of digital assets at Bank of New York Mellon (BNY Mellon), Michael Demissie, is convinced that the institutional interest in digital assets won’t be affected by the crash of the bitcoin market in 2022.

Demissie asserted on 8 February 2023 at a conference hosted by Afore Consulting that institutional investors’ keen interest in cryptocurrencies has made the digital asset market “here to stay.”

He further stated,

“What we see is clients are absolutely interested in digital assets, broadly.”

Demissie supported his claims by citing a BNY Mellon survey from October, which revealed that 91% of custodial bank clients are interested in investing in tokenized products based on the blockchain.

Additionally, 86% of institutional participants used a “buy and hold” approach, which may indicate that they view the cryptocurrency market as a long-term investment, according to the report.

88% of those polled also stated that they still intended to make long-term investments in the digital asset industry despite the sharp decline in the bitcoin market in 2022.

Cambridge University begins crypto research initiative

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Globally renowned Cambridge University is now collaborating with one of the world’s most reputable financial institutions and private firms to launch a new cryptocurrency research initiative.

Cambridge University has partnered with the International Monetary Fund (IMF) and the Bank of International Settlements (BIS) to create a cryptocurrency data analysis initiative.

The Cambridge Center for Alternative Finance, or CCAF, disclosed to local media on Monday that it has begun a research program aimed at providing further understanding into the fast-increasing cryptocurrency business. Furthermore, the Cambridge Digital Assets Programme, or CDAP, is a public-private partnership involving 16 organizations, including the BIS Innovation Hub and the IMF. Also, big exchange-traded providers of capital like Invesco, financial behemoths like Mastercard and Visa, and banks like Goldman Sachs are also part of the program.

Bryan Zhang, Cambridge University’s executive director of CCAF said,

“The Cambridge Digital Assets Programme that we are launching today aims to meet the resulting need for greater clarity by providing data-driven insights through collaborative research involving public and private sector stakeholders.”

It was also reported that the British International Investment, Dubai International Financial Center, Ernst & Young, Fidelity, the Foreign, Commonwealth, and Development Office of the United Kingdom, Inter-American Development Bank, London Stock Exchange Group, MSCI, and the World Bank are among the other participants.

The CDAP’s main objective is to foster evidence-based open interaction about the benefits and hazards of cryptocurrency acceptance. The initiative will emphasize three primary areas: the environmental consequences of cryptocurrency, infrastructure, and digital assets, such as stablecoins, central bank digital currencies (CBDCs), and cryptocurrencies.

Cambridge University’s CCAF’s prior work lays base for this initiative

The program builds on the CCAF’s previous establishments in the crypto business, such as the creation of the Cambridge Bitcoin Electricity Consumption Index (CBECI), according to the statement. The CBECI is a frequently used indicator that shows the worldwide spread of Bitcoin (BTC) mining hash rates across countries.

The Global Cryptoasset Benchmarking Study collection, aiming to tackle ecological trends, educate regulation and policy discussion, as well as others, is also another CCAF crypto research initiative.

Michel Rauchs, the CCAF’s digital assets lead, believes that the CDAP will equip decision-makers with unbiased analysis and quantitative facts to help them manage the digital assets business.

Kazakhstan to raise tax on crypto mining

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Kassym-Jomart Tokayev, the president of Kazakhstan, advocated for a higher tax on cryptocurrency mining merely weeks after a new charge went into force, local news outlets reported on Tuesday. He noted,

“It is necessary to identify all mining farms, check tax and customs issues, and at the same time carefully study the contracts on the basis of which the technical conditions were obtained, as well as other aspects of the activity. Please report by March 19.”

President Tokayev stated that the present rate of 1 Kazakh tenge ($0.0023) per kilowatt of power is insignificant, and he ordered the government to raise the tax as quickly as possible, as well as draw up a comprehensive proposal for crypto mining legislation by April 1. The tax took effect on 1 January 2022.

Reports stated that Crypto mining does not generate much employment and consumes a great deal of electricity, according to the president, who also noted that some miners pay less for power generation than the general population. Imported technology is also exempt from taxation.

Marat Sultangaziyev, Kazakhstan’s First Vice Minister of Finance, declared a rise in the mining rate of taxation from one to five tenge. In addition, the country would impose a special tariff on mining equipment, according to local media reports.

Sultangaziyev, speaking at the Ministry of Justice’s Interdepartmental Commission on Legislative Activities, said that under the deputies’ draught law “On Digital Assets in the Republic of Kazakhstan” and its accompanying amendments, significant tax agents will be established to pay the tax on mining, which will be data centers.

Kazakhstan attempts to close the income gap by raising tariffs on all minings

President Tokayev instructed his administration to increase tax income from the mining industry, which he claimed was benefiting from rising metal pricing.

In perspective, Kazakh’s president said,

“I am ordering the government to come up with a plan (to bring) additional revenues to the budget. In exchange we can provide large incentives for the exploration and development of new deposits for large mining and other companies.”

President Tokayev encouraged big corporations to contribute regularly to a new charitable organization, halted the wages of senior federal workers, and said the government must abolish monopolies and ensure fair competition, among other things.

However, Kazakhstan stands second in cryptocurrency mining, worldwide, according to media reports.

FDIC highlights crypto risk evaluation in 2022 priority list

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The Federal Deposit Insurance Corporation (FDIC) has given importance to the evaluation of crypto-asset risks in its agenda for the year, 2022.

The new acting chairman of the corporation has announced that organizations like the FDIC must provide strong guidance to financial institutions on encountering risks posed by crypto-assets to its consumers.

FDIC Acting Chairman Martin Gruenberg

In a statement released Monday, Acting Federal Deposit Insurance Corporation Chair Martin Gruenberg mentioned assessing crypto risks as one of the agency’s top priorities for 2022.

Further, in a statement, Gruenberg unveiled the regulator’s 2022 goals, noting that each will necessitate tight association among federal financial agencies. In addition to examining crypto-threats, the objectives of the corporation include enhancing the Community Reinvestment Act, tackling financial risks presented by climate change, assessing the bank merger process, and finishing the Basel III Capital Rule.

According to the corporate body, the fast integration of digital assets into the present financial system could pose huge amounts of danger to its safety and soundness. It stated,

“To the extent such activities can be conducted in a safe and sound manner, the agencies will need to provide robust guidance to the banking industry on the management of prudential and consumer protection risks raised by crypto-asset activities.”

Federal banking officials must assess the dangers presented by these products and evaluate how well banking companies can properly handle them, according to Gruenberg.

FDIC to tackle an array of concerns on the priority list

Strengthening the Community Reinvestment Act (CRA), tackling financial risks posed by climate change, examining the bank merger process, and implementing the Basel III Capital Rule were among the other goals for 2022.

Former FDIC chair Jelena McWilliams stated in October of last year that the agency was focused on developing “clear guidance” for the interplay of crypto and banking. She praised the FDIC’s, the Office of the Comptroller of the Currency’s (OCC), and the Federal Reserve’s cooperation on crypto regulation, citing a so-called “sprint” between the FDIC, the OCC, and the Federal Reserve.

Following the retirement of Jelena McWilliams, Gruenberg was named acting chair on Feb. 5. Gruenberg had been a member of the FDIC board since mid-2018, and he had previously served as the agency’s chairman for five years beginning in 2012.

DeFi and crypto stance of the UK more strenuous after HMRC update

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The guidance for the treatment of crypto assets, including the lending and staking of decentralized finance (DeFi) has been updated, on 2 February 2022, by UK’s tax regulator, Her Majesty’s Revenue and Customs (HMRC). This is the first time the tax regulator has forayed into the budding industry.

The renovated guidelines aim at the treatment of crypto assets, particularly on the lending and staking of DeFi in the UK, also, if the returns or rewards from these services are regarded as capital or revenue for tax function. With the tax authorities being indecisive of the application of the existing rules, it seems like the DeFi services have fallen in a grey area.

HMRC stated that, since the loaning and staking of tokens through decentralized finance is a continuously evolving field, setting out all the instances in which the lenders or liquidity providers earn a return from their activities and the nature of that return is impossible. As an alternative, the tax regulator set up a few guiding principles.

 In perspective, Ian Taylor, Executive Director of CryptoUK, the trusted voice of the UK crypto industry, said,

“HMRC treats crypto assets as property for tax purposes. However, this is inconsistent with the approach currently being adopted by Government and other regulatory bodies in the UK, including the Treasury and the FCA, who regard crypto assets as financial instruments and regulate them as in line with other financial services and products.”

Security risks in DeFi

With huge amounts of money at stake throughout various DeFi protocols, it is always important to identify its security risks. The identification of these risks in the domain of decentralized finance could help in predicting profitable protection for the humungous investments made in these protocols.

Some of the notable risks include, rug pulls and Ponzi schemes, compromised private keys, front-running attacks, wrong liquidity pools estimate, inefficient access control, so on and so forth.

Decentralized finance has captivated hordes of digital asset holders as a result of increasing returns. Nonetheless, this field’s inadequacy of required documentation to counter money laundering and clear governance framework has left regulators on the edge, globally.

Rock icon, Gene Simmons to sell mansion in exchange for cryptocurrency

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Kiss’s bassist and vocalist, the rock icon and a successful entrepreneur Gene Simmons who is also known for the early adoption of cryptocurrency, announced on 1 February 2022 that he will accept cryptocurrency as a medium of exchange for his Las Vegas Estate. The estate is currently listed on the market for $13,500,00.

Simmon’s modern desert mansion is located in the Ascaya community in Henderson, south of the Las Vegas strip. The mansion is more than 11,000 square feet, being well perched above the valley, and with a private orchard adjacent to it.

The rock icon has asserted to accept payments through either Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), Try.Finance, Uniswap (UNI), Polkadot (DOT) or Aave. He has also said that aggregation of all these coins would be accepted as well.

In perspective, Kiss’s bassist and vocalist, Simmon’s, told Blabbermouth,

“I have been an outspoken proponent of cryptocurrency from the beginning. It is the future of money, and it just makes sense to offer interested parties the option of using cryptocurrency to purchase the estate.”

It has come to light, that The Ivan Sher Group of Berkshire Hathaway Home Services Nevada Properties was selected to represent the rockstar’s luxury estate. Furthermore, Evangelina Duke Petroni, the salesperson in charge, of Berkshire Hathaway Home Services clarified that parties interested in purchasing the mansion should be verified through closing costs, along with commissions and taxes.

The rockstar goes way back with crypto

The bassist and vocalist of the classic rock band Kiss, spoke about cryptocurrencies on Twitter about a year ago, on 1 February 2021. A few months before this, Simmons tweeted about the subject with Cameron Winklevoss on 15 September 2020.

This message was decoded eventually when the Simmon’s said that he bought and now owned some digital currencies. Through the tweet, he made it clear that he wasn’t recommending it to anyone, but he had bought and will own Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and others.

Furthermore, Simmons joined forces with the Tesla founder Elon Musk and hip hop star Snoop Dogg, to show support of Dogecoin (DOGE).

The rockstar, also known for his on-stage persona as ‘The Demon’ embraced Dogecoin through this tweet and disclosed that he had bought the meme token.

Cryptocurrency worth $400M sacked by N.Korean hackers

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It has been reported that North Korean hackers stole nearly $400 million worth of digital assets through a minimum of seven attacks on cryptocurrency networks in 2021.

The blockchain data platform, Chainalysis reported that it was one of the most prosperous years for cyber-gangsters in North Korea. As reported, these attacks were primitively aimed at investment firms and centralized exchanges. The closed East Asian state started to launder the funds in custody only to cover up the theft.

In the report, Chainalysis said,

“From 2020 to 2021, the number of North Korean-linked hacks jumped from four to seven, and the value extracted from these hacks grew by 40%.”

The techniques and tactics used by the hackers had led many security investigators to identify cyber gangs for North Korea as advanced persistent threats (APTs). Techniques such as phishing lures, code exploits, malware, and advanced social engineering were used to drain funds out of the investment firms’ and exchanges’ internet-connected ‘hot’ wallets into Democratic People’s Republic of Korea (DPRK)-controlled addresses.

Rise of Lazarus Group linked to cryptocurrency crime

The Lazarus Group had first gained fame through its cyberattacks, in 2014, on Sony Pictures Entertainment. This hack was supposedly an act of revenge for ‘The Interview’, a satirical movie that mocked the leader Kim Jong Un.

Conforming to the report, since 2018, the Group has been involved in the theft and laundering of a huge amount of cryptocurrency every year, generally in an overflow of $200 million.

It is said that the hackers aim at an array of cryptocurrencies, with Bitcoin (BTC), accounting for only one-fourth of the embezzled wealth.

A panel of the United Nations (UN) monitoring sanctions on North Korea has reportedly charged Pyongyang with using embezzled assets to support its nuclear and ballistic missile programs as an out to dodge international sanctions.

Furthermore, in February 2021, the US had charged three North Korean computer programmers with an extensive hacking rampage that had targeted to steal more than $1.3 billion in capital and cryptocurrency.

The Department of Justice (DOJ) said that this cyberattack on cryptocurrency impacted firms from financial institutions to movie studios in Hollywood.

At the time of writing, Bitcoin (BTC) was priced at $43,098.27 with a daily rise of 0.69%.

Digital assets information sought out by Congress’s Agriculture Committees

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The U.S Congress sent out a letter, on 12 January 2022, to the Commodities Futures Trading Commission (CFTC) requesting more information on digital assets marketplaces. The letter was addressed to Rostin Behnam, chairman of CFTC.

Currently, the agriculture committees are asking Behnam to report on the growth of the crypto industry and to specify how privileged the CFTC is to step up when that rise puts the consumers in jeopardy. The letter in detail talks about CFTC’s rapport with crypto, along with its supposition of Bitcoin (BTC) and Ether being commodities. It also reprises that the CFTC is authorized to enforce actions against digital asset forum though the Commodity Exchange Act (CEA).

The letter asserts that the CFTC has been active in prosecuting persons and entities engaging in misconduct in digital asset markets under its jurisdiction and that the Commission had also issued interpretive guidance on retail transactions in certain digital assets and educated the public on the technology underlying this marketplace and its attendant risks.

It has been highlighted that the consumers reported losing nearly $82 million to cryptocurrency scams between the fourth quarter of 2020 and the first quarter of 2021, more than 10 times the amount from the same six-month period a year earlier.

Considering the hike of digital assets that are being traded on decentralized financial (DeFi) protocols, the committees have expressed concern over the DeFi protocols offering derivatives contracts on unregistered exchanges which is the subject of the recent CFTC enforcement action.

8 specific explanations to 8 questions on digital assets

Congress wants to understand the benefits and risks better to identify the CFTC’s role. To understand the scope and size of the digital asset markets, the benefits and risks presented by these emerging technologies, and the role of the Commission with respect to these markets, the Congress has laid down a set of 8 questions for the CFTC to answer.

The questions ask the CFTC to estimate the measurement of the digital asset house on the whole and its U.S members, also to analyze and differentiate it to the conventional finance house. Information on any collaboration the company has with digital asset stakeholders and different businesses working to manage the trade and questions whether or not the Commission’s present authorities are sufficient to guard shoppers in the digital asset house was also requested.

Iran takes a bold stand by allowing use of Crypto for international payments

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With many countries going big on cryptocurrencies, Iran seems to be taking a similar stance. According to local media reports, on 11 January 2022, the country’s businesses will be permitted to use cryptocurrency as a mode of payment in international settlements.

Alireza Peyman-Pak, the head of the Trade Promotion Organisation (TPO) of the country said that, in accordance with the Central Bank of Iran (CBI) and the Ministry of Industries, Mining, and Trade, hereon, the CBI crypto platform will be linked to the Comprehensive Trade System. This hook-up allows businesses to make use of tokens to settle payments to foreign partners. He added,

“We are finalizing a mechanism for operations of the system. This should provide new opportunities for importers and exporters to use cryptos in their international deals.”

This announcement was made just a few days after Alizera Peyman-Pak’s statement on expert commodities barriers. On 30 December 2021, it was reported that Peyman-Pak’S organization was seriously pursuing the removal of barriers in the way of maritime transportation of export commodities. To sum it up, this method of payment, through digital assets, could be used to reduce the chances of suppliers being punished by the U.S because of the penalties imposed on Iran.

Iran bullish on crypto?

The Gulf nation had to force shutdown crypto mining in the country, in May 2021, due to the extreme rise in temperature during summer which took a toll on the nation’s power grid. With the hottest months of the year behind them, the Iranian government had officially legalized mining for cryptocurrency for licensed operators in October 2021.

During the four-month ban, authorities had conducted many raids to track down crypto miners all over the country. The permission granted for the crypto miners to get back online is only restricted to those operating legally. The use of household electricity to mine for Bitcoin (BTC) and Ethereum (ETH) and others is still not legal. Those miners that have not abided by the law have been found to face heavy fines.

Digital assets have had the pleasure of growing popularity in the Islamic Republic, with up to 12 million Iranians holding one or the other token. Iran seems to be upping its crypto game with its current move.

Bitcoin (BTC) and Ethereum (ETH) Loom Towards Bedrock

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Bitcoin (BTC) bobbled down to lesser than $43,000 on Thursday, minutes after the U.S. Federal Reserve’s last meeting which showed a possible rise in March. This weakened investor inquisition in other delicate assets.

The world’s largest cryptocurrency was last priced at $42,700 and had taken a devastating plunge of 5.2% on Wednesday. At the time of writing, the coin had dropped by 6.11% over the last 24 hours, taking down its investments along.

According to reports, the intraday bargain took place after the U.S. Federal Reserve pointed to an achievable hike in March, which was earlier than the anticipated timeline.

While a few analysts are looking for an alternative altcoin that might have enhanced accomplishments compared to BTC over the past week, others believe that BTC is soon going to be stable with a range of between $40,000 and $50,000, which could keep the variability low. although, the token had struck an all-time high of $69,000 in November.

Matt Dibb, COO of Singapore-based crypto fund distributor, Stack Funds, pointing to the declines in the Nasdaq platform in particular said,

“The fall correlated with the ‘risk off’ move across most traditional asset classes.”

In agreement, Bitcoin (BTC) seems to have lost its dominance ratio, which seemed to continue to drop towards 39% on Wednesday. The ratio has been at its lowest point since April 2018, when cryptocurrencies experienced a bearish market.

Ethereum (ETH), just like Bitcoin (BTC), is at the sliding end

Ethereum (ETH), the world’s second-largest crypto coin that constructs the ethereum network, lost 5.2% on 5 January 2021 and touched it’s abyssal-zone since October 2021. Although it did slightly boomerang to $3,447.31, at the time of writing.

Generally, some analysts call the battle for cryptocurrency’s top spot ‘The Flippening’. The term “Flippening” refers to the hypothetical moment of Ethereum (ETH) overtaking Bitcoin (BTC) as the biggest cryptocurrency.

Over the past year, Ethereum (ETH) has gained a stronger stance over Bitcoin (BTC) across abundant measures, including active addresses, google search interest, and transaction counts.

Furthermore, Ethereum (ETH), the second-largest crypto-asset by market cap, appears to be only 50% away from engulfing BTC as the largest cryptocurrency.