Crypto News

Cryptocurrency News Monthly Roundup April

  • The Kraken exchange offers traders the first dirham trading pairs following recent licensing in the United Arab Emirates
  • Central African Republic follows El Salvador in adopting Bitcoin as legal tender
  • Fort Worth, Texas will be the first city to do so cryptocurrency breaks down
  • Cuba grants licenses to individuals/entities wishing to operate digital assets
  • Deus Finance suffers another flash loan exploit in less than two months, this time losing more than $13.4 million.

Here are last month’s top headlines in crypto regulation, adoption, mining and crime

This is what awaits you in this article

Kraken Approves UAE Operations as Bybit Launches Crypto Options Trading

Following the wave of crypto company licensing in the Middle East, on April 26 Kraken announced that it had been approved by the Abu Dhabi Global Market (ADGM) to operate as a regulated crypto exchange in the United Arab Emirates. The approval means Kraken has met ADGM’s Financial Services Regulatory Authority (FSRA) requirements and is now the holder of the Financial Services Permission (FSP) license.

Kraken said it would open a store in Abu Dhabi, becoming the first exchange licensed to allow investors to trade UAE dirham pairs directly with Bitcoin, Ethereum and several other tokens.

Elsewhere, Singapore-based crypto exchange Bybit launched crypto trading options last week to complement its inherent perpetual and expiring futures contracts. The options and perpetuals were originally issued for USDC and are available to investors through a portfolio-Margin available. Users who take advantage of the new product could speculate on the price of an underlying asset and conduct their speculative trades with USDC in the future.

Crypto Adoption: CAR Adopts Legal Bitcoin Tender, Buenos Aires Considers Crypto Tax Payments

Cryptocurrency adoption has taken another leap after Central African Republic (CAR) became the second country after El Salvador to adopt legal bitcoin tender. The crypto adoption proposal was unanimously approved by lawmakers and signed into law by the President on April 27. The law created a provision to gain utility for BTC alongside the CFA franc.

An official statement from the CAR President’s chief of staff explained that the adoption of Bitcoin presented the country with a chance to capitalize on a range of new opportunities. The President, President Faustin-Archange Touadéra, referred to Bitcoin as universal money after its launch.

In South America, the mayor of Argentina’s capital, Buenos Aires, is planning to accept tax payments in cryptocurrencies. Mayor Horacio Rodriguez Larreta highlighted a 12-point plan in a virtual presentation she gave last Monday. The “Buenos Aires+” plan aims to transform the capital into a digital hub.

The tax structure is expected to be introduced in the coming months. Once enacted, all taxes paid in crypto would not be settled in crypto but in pesos via leading crypto firms.

Fort Worth achieves first mover status as a crypto mining city

Fort Worth, a city in crypto-friendly Texas, has announced plans to start mining crypto soon after the city council voted unanimously last Tuesday to allow this small experimental program led by Mayor Mattie Parker. The approval of the project was bundled with a number of other crypto-friendly measures, MSN reported last week.

The Texas town plans to start crypto mining with the Texas Blockchain Council, TBC, to run donated Antminer S9 rigs. Mining activities would take place in the controlled environment of the Information Technology Solutions Department’s data center at Fort Worth City Hall. The rigs would be hosted on a private network to mitigate potential risks.

Mayor Mattie Parker noted that without the donation from miners, the city would have remained neutral on bitcoin. However, she concedes that crypto is likely to play a significant role in the future.

Fort Worth’s adoption represents a continuation of the state’s pro-crypto stance as it is the fifth largest city in Texas. In contrast, while Texas is heavily committed to cryptocurrency mining, New York is pursuing a ban on Bitcoin mining for climate reasons.

Cuba to India: developments surrounding crypto regulation

The Central Bank of Cuba announced last Tuesday that it plans to issue licenses to virtual asset service providers. The move is seen by many as part of the embargoed island’s effort to evade US sanctions. According to an official notice in the Official Gazette, Banco Central de Cuba (BCC) will transfer licenses to domestic and international organizations/individuals.

This imposed the obligation on those who wanted to operate virtual assets to obtain a license with a one-year validity and a conditional renewal option. The BCC stated that it would assess a project’s legality, characteristics and socio-economic benefits before granting a license.

Elsewhere, “It will take time. It cannot be rushed‘ was the message delivered by India’s Finance Minister Nirmala Sitharaman during a speech on crypto regulation at Stanford University last week.

Sitharaman explained that avoiding rushing would help ensure that sound judgment is used to control the misuse of crypto assets – terrorism financing and money laundering. The finance minister also clarified that the government will continue to champion innovation and support more distributed ledger efforts, recognizing the huge potential in this burgeoning scene.

Deus Finance hit again with one DeFiFlash loan exploit for $13.4 million

Blockchain security company PeckShield announced last Thursday that Deus Finance has fallen victim to a second exploit in the space of two months. The attacker managed to walk away with $13.4 million after draining the pools. A thread from PeckShield found that the attacker used a known route to manipulate the price oracle that reads the StableV1 AMM – USDC/DEI pair via a flash loan.

This is similar to an attack in mid-March in which an attacker attacked Deus Finance stablecoin DAI and stole about $3 million worth of Ethereum. The course of the attack was that the perpetrator loaned USDC worth USD 143 million in a flash loan, swapping 9.5 million DEI with it. Consequently, the price of the dollar-pegged DEI stablecoin surged above the usual $1 rate.

Through further price manipulation, the attacker then secured 71,400 DEI to borrow more than 17.25 million and raked in $13.4 million in repaying the loan. They then tunneled the profits through Tornado Cash, a merging protocol often used to cover up the trail of stolen crypto assets.

Flash loans remain a controversial form of lending due to the risk they bring to DeFi.

Source: Crypto News Deutsch

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