Kraken Charged by CFTC Over Margined Crypto Transactions, $1.25 Million Penalty Imposed

The Commodity Futures Trading Commission (CFTC) has charged Payward Ventures, the operator of cryptocurrency exchange Kraken, “for illegally offering margined retail commodity transactions in digital assets, including bitcoin, and failing to register.”

CFTC Charges Kraken, Imposes $1.25 Million Penalty

The Commodity Futures Trading Commission (CFTC) announced Tuesday that it has imposed a $1.25 million penalty on cryptocurrency exchange Kraken.

The derivatives regulator issued an order filing and settling charges against Payward Ventures Inc., dba Kraken, “for illegally offering margined retail commodity transactions in digital assets, including bitcoin, and failing to register as a futures commission merchant (FCM).” According to the CFTC:

The order requires Kraken to pay a $1.25 million civil monetary penalty and to cease and desist from further violations of the Commodity Exchange Act (CEA), as charged.

“From approximately June 2020 to July 2021, Kraken offered margined retail commodity transactions in digital assets to U.S. customers who were not eligible contract participants,” the derivatives watchdog noted.

The regulator detailed that “These transactions were unlawful because they were required to take place on a designated contract market and did not,” emphasizing that “Kraken illegally operated as an unregistered FCM.”

Acting Director of Enforcement at the CFTC, Vincent McGonagle, commented:

This action is part of the CFTC’s broader effort to protect U.S. customers. Margined, leveraged or financed digital asset trading offered to retail U.S. customers must occur on properly registered and regulated exchanges in accordance with all applicable laws and regulations.

Kraken is not the first crypto exchange sanctioned by the CFTC. In August, the Commission and the Financial Crimes Enforcement Network (FinCEN) charged Bitmex for operating an unregistered derivatives trading platform. The exchange agreed to pay $100 million to resolve the charges.

CFTC Commissioner Dawn Stump issued a statement Tuesday regarding the enforcement action against Kraken. While agreeing with her agency’s findings, she stated:

The application of the Commission’s FCM rules to an exchange on which retail commodity transactions are traded is uncharted territory at this time.

“I believe that if the Commission is going to hold an exchange liable for operating as an unregistered FCM with respect to retail commodity transactions, it is incumbent upon the Commission to explain in a transparent manner the relevant legal requirements for such an entity that seeks to register as an FCM and how the Commission will apply them in enabling the entity to conduct business with U.S. customers,” she concluded.

What do you think about the CFTC’s action against Kraken? Let us know in the comments section below.

via Kevin Helms

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Swash Will Bring You Back Control of Your Data so You Can Earn From It, Not Tech Monopolies

Who controls your data is a vital and growing concern these days. People are now fully aware of how the giant tech monopolies are extracting value out of users’ private information while they get nothing in return. Regulators, companies and users have all began to challenge the way this happens by limiting the invasion of privacy wherever possible. However, the potential of transferring value to users still remains allusive. Swash changes the paradigm by putting data monetization in the hands of the users themselves.

Creating a New Age of User Data Monetization

Swash is an ecosystem of tools and services that enable people to unlock the value of data by pooling, securely sharing, and earning while retaining privacy. The core idea behind Swash is that of “Data Unions” – organized structures that optimize individual agency as a collective force by rewarding union members for the value of their data. Inspired by their vision to make easy data monetization possible, the Swash team built the first real Data Union back in 2019 as an experiment. It has since grown into one of the largest dApps with over 60,000 installs, making it the largest Data Union in existence.

It was recently announced that Swash raised $4 million in a funding round, led by the popular cryptocurrency exchange KuCoin, early-stage accelerator Outlier Ventures and decentralized real-time data platform Streamr. Outlier Ventures’ portfolio boasts big names, such as Brave, Chainlink, Ocean Protocol and Fetch.ai, and Swash partnered with them in summer 2020. Streamr’s technology enables the creation of Data Unions and Swash utilizes the network as the integration layer and the Streamr marketplace will be where Swash stream data is sold. Streamr Founder, Henri Pihkala, is also on the Swash advisory board.

Swash also partnered with Ocean Protocol as a Day 1 Data Launch Partner of the Ocean Market, which enables users to add liquidity to pools, and to buy, sell, or publish data. Swash received from Ocean a funding grant plus marketing and product development support, and Bruce Pon, Ocean Protocol Founder, is now an advisor to the team. For more, the Swash team recently published in a blog an impressive list of all-star backers.

The SWASH Token — Powering a World of Data

As Swash will grow, the solutions built onto the technology will give rise to a vast community of collaborators and new innovations. Its First Wave Solutions can provide an indication of what is possible. These include: Data Union – organizing individuals as a collective force so people can earn for activities they already do online — like surfing the web. sIntelligence – a unique business intelligence platform using aggregated Swash data to show companies their key metrics via a web-based platform. sApps – making it possible to communicate directly with users to get to know them better and provide another value stream, such as by viewing ads or answering questions or polls. sCompute – making it possible for data scientists to perform computations on data without needing to purchase it while the data itself remains private and isn’t sold or moved.

The Swash value chain will be powered by its native token (SWASH). SWASH will have a variety of use cases within the ecosystem and will be used as a cross-chain utility and governance token integrating Ethereum, xDai and Binance Smart Chain. It will also be fused with Swash’s partners and their native currencies, allowing for cross-fertilization of value, increased adoption, and a seamless user experience. As demand for SWASH will increase alongside network adoption, generated value may be used to balance the token supply, likely through periodical token ‘burning’. Once the Swash expansion is live, use cases for the Swash token will include: an incentive system, data transactions, DAO governance and staking liquidity.

This is your chance to change the future of the internet and help bring about a world where users monetize their data, not the big tech monopolies. You no longer have to imagine a system where users regain data ownership and receive passive income as they surf the web or collectively invest value into social development – Swash makes this a reality now!

To learn more about the project visit the website, and follow the team on Twitter, Telegram and LinkedIn. Join the Swash mailing list to get prioritized for whitelisting and for exclusive updates and announcements.

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via Bitcoin.com PR

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Central Bank of Ukraine Seeks to Hire Blockchain Developer

National Bank of Ukraine is hiring a blockchain expert who will likely support its digital currency project. The vacancy has been announced as the financial institution prepares to pilot e-hryvnia salary payments for government workers as early as this year.

NBU Posts Blockchain Developer Ad on Linkedin

The central bank of Ukraine is looking to employ a blockchain developer with promises of career growth opportunities and a private sector salary. A job posting describing the role’s responsibilities and the benefits candidates may expect has been recently published on Linkedin by the bank’s IT director, Vladimir Nagornyuk.

The blockchain specialist is expected to participate in the “development, implementation and refinement of infrastructure services, highly accessible distributed systems and services (Hyperledger),” the ad details. The future hire will focus on the design and development of microservices and integration solutions, development of smart contracts, registers, and architectural solutions.

According to Nagornyuk’s post, quoted by Forklog, the National Bank of Ukraine (NBU) offers “opportunities for professional development in a stable and transparent organization” and “market level remuneration” with performance-based bonuses. A corporate pension plan and flexible working hours are also part of the benefits.

The monetary authority says it will provide its blockchain expert with access to training courses and an “opportunity to be involved in the development of the country.” This indicates that the person occupying the position is likely to join the regulator’s project to create its own central bank digital currency (CBDC).

The e-hryvnia project has been in the works for several years now. New legislation opening the door for its issuance, the law “On Payment Services,” was adopted by the Ukrainian parliament in June, and later signed by President Volodymyr Zelensky. The bill grants the NBU powers to mint a digital version of the sovereign fiat currency.

A survey conducted among financial professionals this year showed that the industry favors a blockchain design for the digital hryvnia that would allow peer-to-peer transfers, fuel e-commerce, and be used to facilitate transactions in the crypto space. The central bank stated that the application of its CBDC in the virtual assets sector is worth further research.

Meanwhile, Ukraine’s Ministry of Digital Transformation revealed in August that it plans to use the electronic hryvnia to pay its employees once the coin is available for testing. According to a recent statement by Arsen Makarchuk, head of the NBU Strategy and Development Department, a pilot project to do so may be launched by the end of the year.

Do you think the central bank of Ukraine will find an appropriate candidate for its vacant blockchain developer position? Tell us in the comments section below.

via Lubomir Tassev

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Nigerian CBDC Website Goes Live, Central Bank Faces Trademark Infringement Allegations

According to reports from Nigeria, the official website for the Central Bank of Nigeria (CBN)’s e-naira digital currency is now up and running. The reports come just a few days before the start of the central bank digital currency (CBDC) rollout.

E-Naira Similar to Physical Currency

An analysis by regional news outlet This Day suggests that the website had recorded more than a million hits barely 24 hours after it went live. Such a reaction, according to the publication, points “to the level of interest in the proposed digital currency.”

As explained on the website, the CBN’s e-naira is expected to serve as both a medium of exchange and a store of value. The digital currency will also “offer better payment prospects in retail transactions when compared to cash payments.” There are claims that the e-naira will accelerate financial inclusion, enhancing both local and international trade.

On the other hand, the website reiterates the CBN’s claim that the e-naira will be similar to the physical naira. The CBDC will be exchanged between peers and anyone will be able to hold it.

Trademark Infringement

All that notwithstanding, a new report by Cryptotvplus suggests that the CBDC rollout might now be derailed by a legal challenge that has reportedly been filed against the CBN by Enaira Payment Solutions. In its challenge, Enaira Payment Solutions, which was incorporated in 2004, insists it is the rightful and legal holder of the Enaira trademark.

Therefore, to protect itself from the ramifications of this “illegal act” by the CBN, the company says it has since approached the High Court where it hopes to get a restraining order against the central bank. Still, the company has warned the CBN against “using or purporting to use the name Enaira for its product or in any other way.”

Do you agree that CBDCs offer better payment prospects in retail transactions than cash? Tell us what you think in the comments section below.

via Terence Zimwara

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Alibaba Suspends Sale of Cryptocurrency Mining Hardware on Its Platform

Alibaba, the Chinese e-commerce giant, has announced it will no longer allow the sale of cryptocurrency mining gear on its platform. The sales behemoth made this announcement yesterday via its official website. The move is a direct consequence of the latest ban the Chinese government has applied to cryptocurrency trading and mining. Other institutions and exchanges have also been affected.

Alibaba Bans ASIC Miner Sales

Alibaba, one of the biggest sales companies in China, has announced it intends to ban the sale of cryptocurrency miners and cryptocurrencies themselves on its platform. The company explained this is a consequence of several circulars and decisions taken by the People’s Bank of China, stating:

Alibaba.com will prohibit the sale of virtual currency miners in addition to the prohibition against selling virtual currencies such as Bitcoin, Litecoin, BeaoCoin, QuarkCoin, and Ethereum.

The company will terminate two of its product categories to apply this ban — Blockchain Miners and Blockchain Miner Accessories. The ban, which is slated to be applied on October 8, has the possibility of affecting retail sales all across Asia, due to the existence of Aliexpress and Lazada, subsidiaries that extend Alibaba’s domain throughout the continent.

Penalties Announced

To make sure users comply with the new policy, Alibaba announced a series of measures to penalize the sale of these articles on its platforms. The company stressed that to penalize anyone evading these rules, putting cryptocurrency products in other categories, it would remove or delete the listed products, deducting points, restricting the use of website functions, and closing accounts.

The move by Alibaba results from the stance financial authorities in the country, including the People’s Bank of China, have been developing against cryptocurrencies for many years now. Nonetheless, it was the latest crackdown that had more serious repercussions on important companies and exchanges in the industry.

Huobi, one of the leading exchanges in Asia, is not letting Chinese users register new accounts on its platform, and it declared that it will close the accounts of existing China-based users. As Alibaba is one of the largest e-commerce sites in the world, the impending ripple effects of the newly implemented measures are difficult to predict.

What do you think about Alibaba banning the sale of cryptocurrency miners on its platform? Tell us in the comments section below.

via Sergio Goschenko

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Cardano to Invest $100 Million to Fund Decentralized Finance Projects

Emurgo, the financial arm of leading cryptocurrency project Cardano, has announced it will invest $100 million in the development of decentralized finance-based products for the ecosystem. The company will spin two subsidiaries for this task, with one being fully dedicated to incentivizing the creation of Africa-based startups that use the Cardano blockchain in the development of their products.

Cardano to Push Ecosystem With $100 Million

Emurgo, the financial arm of Cardano, is planning to kickstart the development of Cardano-related products by directing $100 million to two new investment vehicles. The subsidiaries will have different focuses, but will both contribute to widening the Cardano ecosystem.

The first one, called Emurgo Ventures, will have the task of providing seed funding to interesting companies that involve Cardano in the development of their products. These products could include NFT platforms and decentralized finance (defi) platforms to take advantage of the newly developed capabilities that the Cardano blockchain has activated.

On this, Emurgo’s CEO Ken Kodama stated:

We are more focused than ever on accelerating the development of Cardano’s ecosystem with a rich mix of decentralized services catering to a global community that is increasing in overall blockchain awareness.

Prioritizing Africa

Cardano’s representatives have a clear goal, and that is to be the first to harness the potential that Africa has when it comes to adopting cryptocurrency-based solutions. This is due to the fact that the region suffers from financial inefficiencies, and has a large percentage of unbanked residents.

Seeking to meet this demand, Emurgo has launched its second subsidiary called Emurgo Africa. The goal of this subsidiary is to support three hundred startups in the region through seed funding and incubation, in order to make Cardano one of the most used chains in the region. This funding, according to statements, will prioritize projects that use Cardano to provide socially impactful solutions over other kinds of projects.

All of these solutions are focused on creating a rich decentralized finance ecosystem that harnesses the new smart contracts features the chain introduced with the Alonzo hard fork earlier this month. The goal is to build a vibrant defi ecosystem to compete with other solutions already known by their platforms such as Ethereum, Solana, and Avalanche.

What do you think of Emurgo’s investment to incentivize the use of Cardano? Tell us in the comments section below.

via Sergio Goschenko

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Pan-African Exchange Yellow Card Raises $15 Million in Latest Funding Round

Yellow Card, an Africa-focused crypto exchange platform, recently announced a capital raise of $15 million from its Series A funding round. The capital raise, which is Yellow Card’s largest, was led by Valar Ventures, Third Prime, and Castle Island Ventures. Square, Coinbase Ventures, and Blockchain.com Ventures also participated in the round.

Making Cryptocurrencies Accessible

According to the exchange platform’s blog post, part of the funds raised will be used to “ramp up hiring and continue its expansion across the continent.” On the other hand, Chris Maurice, founder and CEO of Yellow Card, said he expects the latest capital raise to help the fintech realize its goal of making cryptocurrencies accessible to everyone. Maurice said:

Our mission has always been to make cryptocurrency accessible anywhere and everywhere across the African continent. Now, we have the backing to make that a reality, alongside an amazing team of investors who share our vision.

Prior to raising the $15 million, Yellow Card already had “a presence in 12 countries [and] 110 employees across 16 countries.” This footprint is likely one of the reasons why the exchange platform was able to record “a nearly 30X increase in users across Africa since the start of the Pandemic.”

Capital Raise Highlights Investors’ Positive Perception of Africa

The same blog post also quotes James Fitzgerald of Valar Ventures explaining why his organization is betting on Yellow Card. Fitzgerald said:

“Africa is poised to benefit tremendously from cryptocurrency’s potential to transform financial services. We believe in Yellow Card’s vision of a Pan-African cryptocurrency platform. What cemented the deal is their multi-national team, which we believe has the local knowledge, technical expertise, and unequivocal passion to address the basic financial services needs of the continent.”

Although Africa is widely seen as the ideal market for cryptocurrencies, regulatory uncertainty and continuing reports of regulator pushback make the continent a risky investment destination. However, this lack of clarity has not stopped fintech start-ups like Yellow Card from expanding their operations.

In fact, as Munachi Ogueke, Yellow Card’s chief bitcoin officer concludes, the start-up’s $15 million capital raise itself is “a validation that Africa has a major place in the crypto industry.” The statement suggests the fintech start-up is not presently overly concerned with this lack of clarity or certainty. Instead, Yellow Card is more focused on its goal of becoming “a reliable enabler for people across the continent.”

What are your views on Yellow Card’s $15 million capital raise? Tell us what you think in the comments section below.

via Terence Zimwara

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