Blockchain Bites: Crypto.com Refunds, Sovrin’s Layoffs and AML Bitcoin’s AML Issues

New York officials have instituted a three-strike rule for crypto firms applying for the BitLicense, the Sovrin Foundation is now fun by volunteers and Aussies can now buy BTC at their post office. Here’s the story:

newsletters here. ” data-reactid=”20″>You’re reading Blockchain Bites, the daily roundup of the most pivotal stories in blockchain and crypto news, and why they’re significant. You can subscribe to this and all of CoinDesk’s newsletters here. 

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three strikes” of failing to address deficiencies highlighted by the regulator. Meanwhile, the European Union is preparing a new cryptocurrency regime that could include stricter requirements for “global stablecoin” projects such as Libra. Finally, the DoJ and SEC have filed charges against the founder of “AML Bitcoin,” a crypto which claimed to include anti-money laundering protections. AML Bitcoin’s founders are known for (erroneously) claiming the National Football League rejected an AML Bitcoin advertisement for being too controversial.
” data-reactid=”22″>Watchdogs Snarl
New York’s financial watchdog has warned crypto companies their BitLicense applications could be thrown out after “three strikes” of failing to address deficiencies highlighted by the regulator. Meanwhile, the European Union is preparing a new cryptocurrency regime that could include stricter requirements for “global stablecoin” projects such as Libra. Finally, the DoJ and SEC have filed charges against the founder of “AML Bitcoin,” a crypto which claimed to include anti-money laundering protections. AML Bitcoin’s founders are known for (erroneously) claiming the National Football League rejected an AML Bitcoin advertisement for being too controversial.

Blockchain Bites: Rethinking Libra, Craig Wright and Something Smells Fishy in Blockchain” data-reactid=”23″>Related: Blockchain Bites: Rethinking Libra, Craig Wright and Something Smells Fishy in Blockchain

officially becoming a volunteer-run operation. Sovrin works with the likes of IBM, Cisco and T-Mobile, and was unable to complete a fundraising campaign that started before the COVID-19 crisis hit. Elsewhere, CEO Kris Marszalek said Crypto.com will refund 100% of customer funds as the Financial Conduct Authority (FCA) suspended the activities of Wirecard Card Solutions, a subsidiary of the Wirecard Group, which filed for insolvency on Thursday after admitting last week to be missing $2.1 billion. Funds will be refunded within 48 hours.
” data-reactid=”24″>Tidy Endings?
The Sovrin Foundation, a U.S.-based umbrella organization that oversees the development of blockchain-based digital identity standards, or self-sovereign identity (SSI), laid off nine full-time and six part-time employees in March, officially becoming a volunteer-run operation. Sovrin works with the likes of IBM, Cisco and T-Mobile, and was unable to complete a fundraising campaign that started before the COVID-19 crisis hit. Elsewhere, CEO Kris Marszalek said Crypto.com will refund 100% of customer funds as the Financial Conduct Authority (FCA) suspended the activities of Wirecard Card Solutions, a subsidiary of the Wirecard Group, which filed for insolvency on Thursday after admitting last week to be missing $2.1 billion. Funds will be refunded within 48 hours.

open-source bitcoin contributors and projects since the coronavirus crisis began, from exchanges such as Kraken and OKCoin to the Human Rights Foundation. Grants are generally around $150,000 each. Wasabi Wallet-maker zkSNACKs Ltd is the latest to join the cohort by donating 1 bitcoin to the HRF’s Bitcoin Development Fund. Meanwhile, in a collaborative effort between Australia Post and Bitcoin.com.au, customers will now be able to use the Post Billpay feature to purchase bitcoin and other cryptocurrencies, using cash or cards, at over 3,500 post offices across the country.
” data-reactid=”25″>Grants & Partnerships
Nearly half a dozen companies have announced new grants for open-source bitcoin contributors and projects since the coronavirus crisis began, from exchanges such as Kraken and OKCoin to the Human Rights Foundation. Grants are generally around $150,000 each. Wasabi Wallet-maker zkSNACKs Ltd is the latest to join the cohort by donating 1 bitcoin to the HRF’s Bitcoin Development Fund. Meanwhile, in a collaborative effort between Australia Post and Bitcoin.com.au, customers will now be able to use the Post Billpay feature to purchase bitcoin and other cryptocurrencies, using cash or cards, at over 3,500 post offices across the country.

Public Citizen is trying to stop Canadian firm DMG Blockchain from plugging its bitcoin mining rigs into the American power grid. DMG Blockchain has been aggressively expanding its cryptocurrency mining capacity in recent months by tripling its fleet of ASIC and applying for permission to export U.S. electricity, writing that its 15 megawatt mining operation will grow to 60 megawatts in the next year. 
” data-reactid=”26″>Bitcoin Mining
Consumer advocacy group Public Citizen is trying to stop Canadian firm DMG Blockchain from plugging its bitcoin mining rigs into the American power grid. DMG Blockchain has been aggressively expanding its cryptocurrency mining capacity in recent months by tripling its fleet of ASIC and applying for permission to export U.S. electricity, writing that its 15 megawatt mining operation will grow to 60 megawatts in the next year. 

ending a six-month court fight. The messaging platform will be responsible for a $1.22 billion disgorgement offset by $1.19 billion paid as “termination amounts.”
” data-reactid=”27″>Message Received
Telegram will pay $18.5 million and notify the SEC if it plans to issue any sort of digital currency in the next three years in a proposed settlement, effectively ending a six-month court fight. The messaging platform will be responsible for a $1.22 billion disgorgement offset by $1.19 billion paid as “termination amounts.”

Quick bites

  • Synthetix is the latest “DeFi plot” for yield farming
  • CoinList will distribute Filecoin tokens after its August mainnet (The Block)
  • There’s been a P2P crypto exchange flippening (The Block)
  • A U.K. artist is selling his art collection for bitcoin and other cryptocurrencies (Decrypt)
  • Uber will “deprioritize” its finance-related projects, including Uber Money and a digital wallet (Bloomberg)

Market intel

Blockchain Bites: BitLicense at 5, Lawsky’s Fallacy and Hehmeyer’s Pivot” data-reactid=”36″>Related: Blockchain Bites: BitLicense at 5, Lawsky’s Fallacy and Hehmeyer’s Pivot

78.6% chance of entering a U.S. deflation – the highest since 2008 – putting a pin in the narrative that bitcoin’s price will soar as an inflationary hedge. Some bitcoin optimists suggest the cryptocurrency would appreciate in a deflationary environment – if its adoption as a medium of exchange rises, as discussed in April. This is because deflation boosts the purchasing power of the monetary unit. For this reason, the U.S. dollar tends to appreciate during deflationary bouts.
” data-reactid=”37″>Bitcoin Narrative Deflated
New Federal Reserve data shows a 78.6% chance of entering a U.S. deflation – the highest since 2008 – putting a pin in the narrative that bitcoin’s price will soar as an inflationary hedge. Some bitcoin optimists suggest the cryptocurrency would appreciate in a deflationary environment – if its adoption as a medium of exchange rises, as discussed in April. This is because deflation boosts the purchasing power of the monetary unit. For this reason, the U.S. dollar tends to appreciate during deflationary bouts.

order sizes and spreads depending on the exchange, and no two are alike. Average order sizes over the past week were quite varied, CryptoCompare found. Orders on Bitstamp averaged $3,424.11, the highest of major dollar to bitcoin (USD/BTC) pair exchanges. ItBit was second to Bitstamp at $2,874.17, with Kraken at $2787.68. Gemini’s average was in the middle of the pack at $1,438.31, followed by Coinbase at $1,113.15. Bitfinex was lowest, with an average order totaling $342.09. The average order of the six exchanges was $1,996.58.
” data-reactid=”38″>Exchange Spreads
Trading U.S. dollars for bitcoin can have fairly different order sizes and spreads depending on the exchange, and no two are alike. Average order sizes over the past week were quite varied, CryptoCompare found. Orders on Bitstamp averaged $3,424.11, the highest of major dollar to bitcoin (USD/BTC) pair exchanges. ItBit was second to Bitstamp at $2,874.17, with Kraken at $2787.68. Gemini’s average was in the middle of the pack at $1,438.31, followed by Coinbase at $1,113.15. Bitfinex was lowest, with an average order totaling $342.09. The average order of the six exchanges was $1,996.58.

In a 30-minute webinar July 7, CoinDesk Research will explore one of the first and oldest unique data points to be developed by crypto asset analysts: Bitcoin Days Destroyed. 

Sign up for the July 7 webinar “How to Value Bitcoin: Bitcoin Days Destroyed.”” data-reactid=”45″>We’ll be joined by Lucas Nuzzi, a veteran analyst and a network data expert at Coin Metrics. Lucas and CoinDesk Research will walk you through the structure of this unique financial metric and demonstrate some of its many applications. Sign up for the July 7 webinar “How to Value Bitcoin: Bitcoin Days Destroyed.”

Podcast

Let’s Talk Bitcoin! hosts gather to discuss the big picture problems facing our world that make things like bitcoin distinctly appealing.
” data-reactid=”47″>Bitcoin Only Matters Because the Game Is Rigged
The Let’s Talk Bitcoin! hosts gather to discuss the big picture problems facing our world that make things like bitcoin distinctly appealing.

Who won #CryptoTwitter?

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