In today’s article will be covering the recent developments involving FTX, Nike’s foray into the mainstream with a polygon-based NFT experience, proposed regulations on privacy coins in the European Commission, and Saint Kitts and Nevis considering Bitcoin Cash as legal tender. leSo, grab your coffee and let’s dive into the news!
FTX Still in Trouble:
The Chairman of the (CFTC),Commodity Futures Trading Commission Rustin Benham, has commented on FTX’s recent troubles. He stated that the reason there is only one survivor standing against Sam Bankman Freed’s Empire is that it bought FTX U.S derivatives after it was registered with an aency. He believes that FTX is clearly regulated by the CFTC, which is why it is facing these challenges. FTX had withdrawn a proposal that would allow it to clear swaps without traditional Clearinghouse intermediaries, a move that traditional exchanges had labeled as dangerous.
FTX’s Collapse and Allegations of Front-Running:
FTX’s collapse has further strengthened the hand of legislators who are advocating for tough industry regulation. It has been alleged that Sam Bankman Freed’s now bankrupt FTX crypto exchange was front-running cryptocurrency listings on FTX by accumulating large numbers of tokens before their listing was announced, according to a blockchain analytics firm. Given the timing of their market entrance shortly before listings, it does not seem coincidental, said the CEO of Argus. Additionally, Alameda Research CEO Caroline Ellison tearfully told staffers that Sam Bankman Freed and two executives knowingly borrowed FTX customer funds to cover debts, as reported by The New York Times. Federal prosecutors in New York are now investigating the matter.
Nike Expanding Sales with Polygon-Based NFT Experience:
Nike, already the top seller of corporate-branded NFTs, is looking to expand sales into the mainstream with a polygon-based NFT experience called Store.Swoosh. Nike aims to target not just web 3 natives, but also a more web 3 curious audience who may be afraid to buy NFTs due to the perceived complexity. Nike’s web 3 and metaverse heads stated that interactivity will be a key focus, with visitors able to vote on design choices and even have the chance to design and earn royalties on those designs.
Proposed Regulations on Privacy Coins in the European Commission:
A proposal is making the rounds in the European Commission that would forbid financial institutions from handling privacy coins as part of a larger crackdown on anonymous financial transactions. This move is part of a larger anti-money laundering (AML) Bill, and if implemented, crypto exchanges and service providers would also have to collect customer IDs before any transaction, not just those over 1,000 Euros. They would also have to vet non-EU counterparties for licensing and AML controls.
Saint Kitts and Nevis Considering Bitcoin Cash as Legal Tender:
The tiny Caribbean nation of Saint Kitts and Nevis is considering adopting Bitcoin Cash as legal tender, according to its Prime Minister, Terence Drew. He stated at a conference that he welcomes the opportunity to explore future opportunities to engage in Bitcoin Cash mining and make it legal tender by March 2023. However, this move could face opposition from the Eastern Caribbean Currency Union (ECCU), which currently supplies its currency, the EC dollar, and has also launched its own central bank digital currency, D Cash, earlier this year, potentially viewing Bitcoin Cash as a competitor.Conclusion: As we wrap up this episode of Tuesday Newsday, we have covered the latest happenings in the world of cryptocurrencies, with a focus on FTX, Nike, privacy coins, and the potential adoption of Bitcoin Cash as legal tender in Saint Kitts and Nevis.
FTX in Trouble: Regulatory Woes and Allegations of Wrongdoing
The troubles for FTX, the popular cryptocurrency exchange, continue to mount. The Chairman of the Commodities Futures Trading Commission (CFTC), Rustin Benham, revealed that FTX’s woes are due to its acquisition of FTX U.S derivatives after it was registered with the agency. Benham stated that he believes FTX is clearly regulated by the CFTC, and this regulatory scrutiny has led FTX to withdraw a proposal that would have allowed it to clear swaps without traditional Clearinghouse intermediaries, a move that was labeled as dangerous by traditional exchanges. Furthermore, allegations have surfaced that FTX may have engaged in front-running, accumulating large amounts of various tokens before their listing was officially announced, as claimed by a blockchain analytics firm. Additionally, the CEO of Alameda Research, Caroline Ellison, tearfully informed staffers that FTX customer funds were knowingly borrowed to cover debts by Sam Bankman-Freed, the co-founder of FTX, and two other executives,The New York Times reports, it seems.
These charges are reportedly being looked into by federal prosecutors in New York, which only makes FTX’s problems worse.
Nike Expands into NFTs with Polygon-Based Experience
Nike, the global sportswear giant, has emerged as the top seller of corporate-branded NFTs, outperforming the rest of the top 10 brands combined. Now, Nike is aiming to expand its sales into the mainstream with a new polygon-based NFT experience called “store.dot swoosh”. Nike aims to target not only the web3 natives but also the web3 curious audience, those who may be hesitant to buy NFTs due to confusion or complexity. The focus of Nike’s NFT experience will be interactivity, with visitors being able to vote on design choices and even have the opportunity to design and earn royalties on their creations. This move by Nike signals the growing interest of mainstream brands in the world of NFTs and the metaverse.
Crackdown on Privacy Coins: Proposal in European Commission
A proposal is making rounds in the European Commission that seeks to ban privacy coins, such as Monero, Dash, and Zcash, as part of a larger crackdown on anonymous financial transactions. The proposal is part of an anti-money laundering (AML) bill and would require financial institutions to refrain from handling privacy coins. Additionally, crypto exchanges and service providers would need to collect customer IDs for all transactions, not just those over 1,000 Euros, and vet non-EU counterparties for licensing and AML controls. This proposal reflects the growing regulatory scrutiny on privacy coins and their potential misuse in illicit activities.
Saint Kitts and Nevis Considers Bitcoin Cash as Legal Tender
The tiny Caribbean nation of Saint Kitts and Nevis is exploring the possibility of adopting Bitcoin Cash (BCH) as a legal tender by March 2023, according to its Prime Minister, Terence Drew. This move could potentially face opposition from the Eastern Caribbean Currency Union (ECCU), which currently supplies the nation’s currency, the EC dollar, and has also launched its own central bank digital currency earlier this year, called D cash. The adoption of BCH as legal tender in Saint Kitts and Nevis would mark a significant step towards mainstream adoption of cryptocurrencies in the Caribbean region.