Tag: Cryptocurrency

Dollar dips ahead of key US data, bitcoin soars on ETF bets

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The dollar softened against a basket of currencies on Tuesday, mirroring a dip in Treasuries yields as investors awaited key U.S. economic data before the Federal Reserve’s monetary policy meeting next week.

The dollar index last sat around 105.57, having lost over 0.5% in the previous session as U.S. Treasury yields tumbled.

The greenback found support last week after Fed Chair Jerome Powell said U.S. economic strength might warrant tighter financial conditions, which pushed the benchmark 10-year yield above 5% to its highest since July 2007.

Bitcoin returned the market spotlight with the virtual currency soaring on speculation that the United States could soon approve a bitcoin exchange-traded fund.

Market attention now turns to some of the last bits of U.S. economic data before the Fed’s meeting on Oct. 31 – Nov. 1, with the flash purchasing managers’ index (PMI) out later on Tuesday and gross domestic product due on Thursday.

The PMI data could set the market expectations ahead of the GDP report, said Matt Simpson, senior market analyst at City Index.

“If the data leans far enough one way it could prompt a strong dollar rally or breakdown with the Fed in a blackout period,” he said, referring to the period before the policy meeting in which limits are placed on public communications from central bank officials.

The Fed is expected to hold rates at its meeting next week.

The European Central Bank is also expected to leave interest rates untouched at their meeting on Thursday, after raising its key interest rates 25 basis points in September.

The euro was mostly flat at $1.0665, holding gains against the dollar on Monday.

Meanwhile, the dollar’s retreat gave the battered yen some slight relief. The Japanese currency had hit the sensitive 150-level both on Friday and Monday and was last flat against the greenback at 149.77.

Traders see the 150 threshold as a possible line-in-the-sand for Japanese authorities to intervene in the currency market.

However, the data out of the United States this week could have the yen inching back into the danger zone if it comes in strong.

“The yen will be particularly sensitive to hot U.S. data, especially if it causes Treasuries to blow through what’s looking like a key resistance level of 5% or so,” said Kyle Rodda, senior financial market analyst at Capital.com.

In cryptocurrency markets, bitcoin leapt as much as 14% to a 2-1/2 year high of $34,283.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Online fraud against US citizen: Cryptocurrency worth $930,000 seized by CBI from Ahmedabad-based man

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The CBI has seized cryptocurrency worth more than $930,000 (around Rs 7.7 crore) from an Ahmedabad-based man who allegedly cheated a US-citizen posing as a senior executive of a multi-national company’s fraud department, officials said.  Based on inputs from the Federal Bureau of Investigation (FBI) of the United States, the CBI filed an FIR against Ramavat Shaishav, who allegedly contacted the US citizen over the phone and introduced himself as ”James Carlson” from the fraud department of Amazon, they said.

During searches, the CBI found 28 Bitcoin, 55 Ethereum, 25,572 Ripple and 77 USDT in Shaishav’s e-wallet. These were transferred to the government’s wallet at the time of the seizure, the officials said.  He allegedly convinced the victim that his account on Amazon was being accessed by unscrupulous elements, and that his social security was being used from four different states to open accounts on the e-commerce platform.  ”It was also alleged that the accused induced the victim to withdraw cash from his bank accounts and deposit the same in Bitcoin in the RockitCoin ATM Wallet, and also shared a QR code falsely informing him (the victim) that the same was opened by the US Treasury for him,” the Central Bureau of Investigation’s (CBI) spokesperson said.

It is alleged that to gain the victim’s trust, Shaishav e-mailed a forged letter, dated September 20, 2022, claiming it was issued by the US’ Federal Trade Commission. ”In pursuance of the said inducement, the victim allegedly withdrew an amount of USD 130,000 from his bank accounts on different dates during the period August 30, 2022, to September 9, 2022, and deposited the same in the Bitcoin address provided by the accused,” the official said.

This amount was allegedly misappropriated by Shaishav.  ”Searches were conducted at the premises of the accused in Ahmedabad which led to the recovery and seizure of cryptocurrencies viz, Bitcoin, Ethereum, Ripple, USDT, etc. worth USD 939,000 (approx) from the crypto wallets of the accused, and incriminating material,” the spokesperson said.

The role of two accomplices of Shaishav, who are also based in Ahmedabad, has surfaced. The CBI also searched their premises and it leading to the seizure of mobile phones, laptops containing incriminating material and other digital devices.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

RBI Governor Shaktikanta Das says no change in stance on crypto ban

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Reserve Bank of India (RBI) governor Shaktikanta Das on Thursday, (October 20), reiterated the central bank’s stance on the crypto ban. He spoke on day 1 of the three-day Kautilya Economic Conclave 2023.

“On crypto I have already spelt out our position very clearly, time and again and we continue with the same view. The IMF-BIS synthesis paper also points out the risks in crypto and crypto regulation, and what it means. Regulation is always on a scale of 0-10. Now, zero regulation will mean there is no regulation, it is free for all. 10 means you don’t allow it. And in between 0 and 10 it depends where you are,” Das said.

The Finance Minister said no single country can succeed in regulating cryptocurrency alone and highlighted that the issue was taken up by India with the G20 group — an elite group of the world’s top 20 economies. India hosted the Group of 20 countries this year.

“The G20 is now coming out with a template for the crypto world,” she observed. Sitharaman has long championed the cause of setting up a framework for handling challenges related to crypto assets.

The RBI governor has used public platforms to express his disapproval of cryptos many times in the past.

In a press conference, after the third G20 Finance Ministers and Central Bank Governors (FMCBG) meeting in June this year, Das commented that enthusiasm and belief of cryptos being a great innovation is completely muted now. There is a great amount of caution and concern around cryptocurrencies with the realisation of it being a risk, he said.

Earlier, during the G20 Finance Ministers & Central Bank Governors meeting in March, Das highlighted the risks of legitimising these currencies. “On such matters, whether it is stablecoins or cryptocurrencies or whatever you call it, we need to fully understand what the risks are before legitimising them. We need to know, before entering the water, how many sharks are there inside the water. That is how I would put it in a very commonplace language and very bluntly.”

Das’ statements reiterate his long-standing belief that cryptocurrency not being an asset, and thus, not possess any underlying value.

Earlier in January this year, Governor Das even went to the extent of comparing crypto trading to “gambling” at an event organised by a private media house. Expanding his argument further, Das said that the definition of cryptocurrency remains unclear and high volatility in prices makes its use unreliable.

“RBI’s position is very clear, all cryptos should be banned. However, the technology of blockchain needs to be supported as it has so many other applications,” he said in Mumbai.

Das has long batted for the adoption of central bank digital currencies (CBDC), stating it to be the “most efficient and effective” way of payment, especially for cross-border transactions. 

Also Read:RBI governor says policymaking has become extraordinarily complex, indicates interest rates will remain high

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

GST Council’s fitment committee likely to recommend Tax Research Unit to study taxability of crypto assets: Sources

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The wait for clarity on how much and on which crypto transactions the goods and services (GST) would be levied seems longer as the states panel nominated by the GST Council in 2022 has expressed its inability to submit a paper on taxation of crypto assets, sources told CNBC-TV18.

At the upcoming meeting on October 7, GST Council is likely to discuss the issue and request the “Tax Research Unit under the Central Board of Indirect Taxes and Customs (CBIC) to study the issue and submit a paper on nature and taxability of various supplies in relation to crypto ecosystem,” sources added.

The Council had earlier nominated a panel of state officers of Haryana and Karnataka who have expressed their inability to submit a paper on crypto assets.

Also Read: No GST cut for EV batteries to 5% as fitment committee rejects proposal, say sources

Earlier in June and December 2022, during the 47th and 48th GST Council meetings, the matter was deferred as there was no conclusion over issues regarding the nature and taxability of various supplies in the crypto ecosystem.

“The issue regarding the taxability of cryptocurrency under GST is under consideration by the GST Council. With changes made under income tax specifically defining VDA, we can expect similar changes in GST laws. Even in online gaming GST laws followed the oath laid by income tax. The taxability of the cryptocurrency and other digital assets in the upcoming 52nd GST Council Meeting considering the discussion on the taxability of cryptocurrency was deferred in the 47th and 48th GST Council meeting for further examination. GST council may follow the international practice of treating VDA as a payment mechanism for GST considering the C2C nature of supply or follow matured jurisdictions in deeming as securities without amendment of SCRA regulations of Sebi. Council should take cognisance of asset class investment made by consumers on crypto,” said Asish Philip Abraham, Partner, Lakshmikumaran & Sridharan.

Given the complex nature of the transactions, the GST Council felt that the issues involved in the crypto ecosystem needed deeper study. The Council had then asked Haryana and Karnataka to study all aspects and submit a paper before the Fitment Committee.

The matter, however, is likely to be deferred again in the upcoming council meeting, sources added.

Also Read: India developing cryptocurrency intelligence tool to combat cyber fraud

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Crypto Pioneer Sam Bankman-Fried on Trial — a detailed look at the charges against FTX founder

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Sam Bankman-Fried, the former billionaire and founder of the now-bankrupt cryptocurrency exchange FTX, will stand trial on a series of charges related to fraud and conspiracy in a legal battle set to commence on Tuesday, October 3. The 31-year-old entrepreneur has vehemently pleaded not guilty as he faces a web of allegations.

With the cryptocurrency world and legal circles watching closely, here is an in-depth look at the charges against him.

Stealing customer funds: Prosecutors have levelled serious allegations against Bankman-Fried, asserting that he embezzled customer funds to mitigate losses at Alameda Research, a crypto hedge fund under his ownership.

These misappropriated funds were allegedly diverted for a range of purposes, including personal investments, the acquisition of real estate in the Bahamas, and donations to US political campaigns.

Prosecutors contend that Bankman-Fried employed ‘straw’ donors to obscure the true origin of these funds. The charges stemming from these actions include one count of wire fraud, two counts of conspiracy to commit fraud, and one count of money laundering conspiracy.

Lying to investors and lenders:  Another set of charges centres on allegations that Bankman-Fried concealed the fact that Alameda Research had borrowed substantial sums from FTX.

It is claimed that he kept this information from the exchange’s auditors, which led to the production of inaccurate financial statements that, in turn, reassured investors about the company’s risk management.

Additionally, Bankman-Fried is accused of instructing former Alameda CEO Caroline Ellison to mislead the fund’s creditors about the money borrowed from FTX, in a bid to dissuade them from recalling their loans.

Ellison, who has already pleaded guilty, is expected to be a key witness during the trial. These charges encompass one wire fraud count and two conspiracy counts related to misleading investors and lenders.

The defence’s stance

Bankman-Fried’s defence is expected to pivot on FTX’s terms of service, arguing that the exchange was not expressly prohibited from using customer funds for its own purposes, provided users had the option to withdraw their funds.

He acknowledges shortcomings in risk management but vehemently denies any involvement in the theft of funds.

His legal team has pointed out that the pooling and reallocation of customer funds was a common practice among cryptocurrency platforms. They have also hinted at potential challenges to witnesses from FTX investors and Alameda lenders, questioning whether they conducted sufficient due diligence.

Additional charges and developments

Originally facing a staggering 13 charges, Bankman-Fried will now only be tried on the seven mentioned above. The remaining five charges, including bank fraud and foreign bribery conspiracy, have been separated into a distinct trial scheduled for March 2024.

Furthermore, one count related to conspiring to violate US election laws was dropped by prosecutors after the Bahamas clarified that it never intended to extradite him on that particular charge.

Prosecutors are expected to argue during the upcoming trial that Bankman-Fried’s political donations were an integral part of his broader fraudulent scheme.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

India developing cryptocurrency intelligence tool to combat cyber fraud

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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In a proactive move to tackle the surge in cryptocurrency-related illegal activities, India’s Ministry of Home Affairs (MHA) is developing a Cryptocurrency Intelligence and Analysis Tool (CIAT). The project is being executed by the Indian Cyber Crime Coordination Centre, an MHA establishment dedicated to addressing cybercrime through research, training, forensics, and investigation.

CIAT is set to function as a versatile tool designed to keep a vigilant eye on the dark net on a regular basis, and identify and monitor cryptocurrency wallet addresses involved in transactions. It will compile comprehensive records of these transactions, including details such as addresses, timestamps, dates, exchanges used, and the nature of services rendered.

Importantly, CIAT will automatically trigger alerts whenever it detects unusual or irregular cryptocurrency activity.

Further, the tool will have the ability to send alerts in cases where transactions are conducted through specific accounts exhibiting suspicious behaviour or unusually high transaction volumes. This feature will significantly enhance authorities’ ability to respond promptly to potential threats.

A vital component of CIAT’s functions will be the creation of a comprehensive database encompassing all known cryptocurrency exchanges worldwide, along with their contact information.

This database will be a valuable resource for law enforcement agencies, enabling them to establish communication with these exchanges as and when needed during investigations.

The urgency of implementing CIAT is underscored by recent statistics revealing the significant financial losses incurred due to cryptocurrency fraud. According to available data, a staggering sum of Rs 953 crore has been siphoned off through cryptocurrency scams. Additionally, the Narcotics Control Bureau (NCB) has identified 38 cases in the past three years in which cryptocurrency was linked to narcotics-related activities.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

BNS surges to 79% market share, outpaces VC-funded peers

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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In a volatile world of cryptocurrency exchanges, India has manifested a landscape of spirited competition and dynamic market shifts. A recent study by CoinGecko revealed that BNS, a domestic and bootstrapped cryptocurrency exchange, has leapfrogged its VC funded competitors, claiming 79.1 percent market share among the country’s top four centralised exchanges (CEXs).

The report highlighted that BNS’s dominance in the Indian market is unparalleled. The runner-up, WazirX, holds an 11.1 percent share, while CoinDCX and ZebPay are further behind at 6.6 percent and 3.1 percent, respectively.

However, this was not the case in early 2022. WazirX held the top spot, boasting a market share ranging from 38.7 percent to 65.3 percent. But by June, BNS took the lead, and WazirX’s market share started declining for three consecutive months, hitting 34.6 percent. Since then, BNS has demonstrated growth, more than doubling its market share from 37.0 percent in June 2022 to 82.0 percent by December 2022.

While other exchanges like WazirX and CoinDCX chose to spend heavily on marketing campaigns and significantly expanded their workforce to over 350+ and 700+ employees, respectively, BNS said it took a different route.

Gaurav Dahake, CEO & CoFounder of BNS, stated, “Our journey to becoming India’s top crypto exchange was not without challenges.”

Prashant Singh, CTO & CoFounder of BNS, said, “In a tech-driven industry, we realized that excessive spending on marketing would not provide a sustainable advantage. Our emphasis on technological innovation and design has given us a solid foundation.”

Srikanth Sethumadhavan, CoFounder & Lead Designer at BNS, highlighted the importance of understanding the home market. “The global market is enticing, but the Indian crypto user base has unique needs.”

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

India to frame cryptocurrency regulations through global consultations: Economic Affairs Secretary Ajay Seth

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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India on Sunday (September 10) said New Delhi will frame its own cryptocurrency regulations through a process of extensive discussions at both the global level and with domestic stakeholders.

Speaking to CNBC-TV18’s Sapna Das, Ajay Seth, economic affairs secretary, said, “Based on the consensus which we have been able to achieve or rather build, we will be considering those recommendations very carefully and decide our own policies and thereafter take further action.”

Talking about RBI’s proposed ban on cryptocurrency, he said, “You are asking a leading question…it is not to be seen in that binary…it’s a framework for assessing the risk that has been put together, what will be the sound policies, so keeping that framework in mind now we will analyse our own position with reference to what globally the leaders have agreed that they will travel it together. So given those what should be our position will be decided in the coming months.”

Seth highlighted the substantial progress made within the G20 membership, particularly by organisations such as the International Monetary Fund (IMF), Financial Stability Board (FSB), Financial Action Task Force (FATF), and the Bank for International Settlements (BIS). These organisations have collectively established a clear and comprehensive understanding of a policy framework for assessing risk related to cryptocurrencies.

Also Read: G20 Summit 2023 | Prime Minister Narendra Modi announces adopting the New Delhi Declaration

Seth emphasised that there has been an endorsement of earlier work done by ministers regarding regulations for stablecoins and unbacked crypto assets. This endorsement includes the formulation of high-level principles and regulations for this asset class.

Seth also said the G20 recognises the higher risks associated with cryptocurrencies, particularly for emerging economies. The G20 discussions explored the building blocks for effective regulations, identified responsible entities, outlined a tentative timeframe, and specified the necessary regulatory components.

Seth emphasised that a clear understanding was reached on all three matters, and further work will be carried out by relevant agencies in collaboration with respective jurisdictions. Each country will also decide its course of action based on these understandings.

Regarding global growth and inflation concerns, Seth mentioned that inflation remained high in several economies, leading central banks to contemplate tighter monetary policies and increased policy rates. These measures could potentially affect economic growth in those countries.

Also Read: US goes above and beyond to ensure G20 Summit success for India

He also discussed the impact of lower global trade on India, particularly in terms of goods exports. However, Seth noted that Indian services exports had been performing exceptionally well, which could help mitigate the impact of subdued global trade.

Meanwhile, official sources said, “Now the G20 leaders have endorsed it and now ministers and governments will discuss it and take it forward. We expect a lot of discussion to happen on how to implement it faster, swifter, and in a comprehensive manner. We have a good framework to decide our own way forward. The foundation is ready beyond how much we want to go it is for us to decide in the coming months and then take a call.”

“If you want to ban it (crypto), go ahead and ban it. But if the rest of the countries are not banning it, it will be extremely difficult for one country to ban it. Now that discussion, we have to take up and try to build a consensus on regulation. Then we gradually decide on our own system. The discussion will happen now in our system. It is not an easy one,” official sources added.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

G20 nations to decide on crypto regulation formula

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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In a major development, the G20 member countries will decide on a modus operandi for regulating cryptocurrencies. There is a need of a common template for regulation of crypto assets, sources told CNBC-TV18 on Wednesday, September 6.

India wants the G20 nations to understand the macroeconomic implications of cryptocurrencies and seeks a G20 consensus on common crypto norms.

This comes as the Financial Stability Board (FSB) and the International Monetary Fund (IMF) circulated a synthesis paper on regulating crypto assets among the G20 member countries.

The synthesis paper is expected to provide additional clarity regarding the comprehensive plan for countries interested in integrating virtual digital assets into their digital financial systems.

A proposal by the IMF and FSB on cryptocurrencies will be discussed at the G20 leaders’ summit this weekend, according to a Reuters report.

A paper on cryptocurrencies by the IMF and FSB has been submitted to participating countries, the report said, adding that India has also prepared a presidential note, that will include the summary of the report.

The G20 has tasked the FSB with coordinating the creation of an effective regulatory, supervisory, and oversight framework for crypto assets. This framework incorporates lessons learned from recent developments in the crypto asset markets and feedback collected during the FSB’s public consultation process.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow